PVH Corp. and Li & Fung Limited Form New Strategic Supply Chain Partnership
March 23 2017 - 10:42PM
Business Wire
PVH Corp. [NYSE:PVH] and Li & Fung Limited (HKEx Stock Code:
00494) announced today that they have entered into agreements for a
new supply chain relationship. The agreements transform the current
non-exclusive buying agency agreement between them into a new
strategic partnership in connection with which Li & Fung will
provide additional value-added services to PVH. The agreements also
provide for the cessation of the existing non-exclusive buying
agency agreement between them. The transaction is expected to close
on July 1, 2017. The new supply chain relationship is expected to
be mutually beneficial to both companies and will focus on applying
the latest technology and knowhow into the PVH supply chain.
Daniel Grieder, CEO Tommy Hilfiger Global and PVH Europe
commented: “Our focus is to create a more effective and efficient
supply chain that will enable us to adapt and evolve so we can stay
ahead in our rapidly changing industry. This transformation in our
sourcing strategy is an important step in our initiative to improve
speed to market and for the faster integration of consumer insights
into our new collections.”
Spencer Fung, Group Chief Executive Officer of Li & Fung
said: “We’ve had a long-standing relationship with PVH and we’re
excited to continue building on that under this new strategic
partnership where we’ll have an opportunity to create what we see
as the Supply Chain of the Future.”
About PVH Corp.
With a history going back over 135 years, PVH has excelled at
growing brands and businesses with rich American heritages,
becoming one of the largest apparel companies in the world. We
have over 30,000 associates operating in over 40 countries and
over $8 billion in annual revenues. We own the
iconic CALVIN KLEIN, Tommy Hilfiger, Van Heusen, IZOD, ARROW,
Speedo*, Warner’s and Olga brands, and market a
variety of goods under these and other nationally and
internationally known owned and licensed brands.
*The Speedo brand is licensed for North
America and the Caribbean in perpetuity
from Speedo International, Ltd.
About Li & Fung
Limited
Li & Fung (SEHK: 494), the Hong Kong-headquartered
multinational group, is the world’s leader in consumer goods
design, development, sourcing and logistics. It specializes in
responsibly managing supply chains of high-volume, time-sensitive
goods for leading retailers and brands worldwide, in more than 300
offices across 40 economies.
For more information, please visit www.lifung.com.
PVH CORP. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995: Forward-looking statements made in
this press release, including, without limitation, statements
relating to PVH Corp’s (the “Company”) future plans, strategies,
objectives, expectations and intentions, are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Investors are cautioned that such forward-looking
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy, and some of which might
not be anticipated, including, without limitation, (i) the
Company’s plans, strategies, objectives, expectations and
intentions are subject to change at any time at the discretion of
the Company; (ii) the Company may be considered to be highly
leveraged, and uses a significant portion of its cash flows to
service its indebtedness, as a result of which the Company might
not have sufficient funds to operate its businesses in the manner
it intends or has operated in the past; (iii) the levels of
sales of the Company’s apparel, footwear and related products, both
to its wholesale customers and in its retail stores, the levels of
sales of the Company’s licensees at wholesale and retail, and the
extent of discounts and promotional pricing in which the Company
and its licensees and other business partners are required to
engage, all of which can be affected by weather conditions, changes
in the economy, fuel prices, reductions in travel, fashion trends,
consolidations, repositionings and bankruptcies in the retail
industries, repositionings of brands by the Company’s licensors and
other factors; (iv) the Company’s plans and results of
operations will be affected by the Company’s ability to manage its
growth and inventory; (v) the Company’s operations and results
could be affected by quota restrictions and the imposition of
safeguard controls (which, among other things, could limit the
Company’s ability to produce products in cost-effective countries
that have the labor and technical expertise needed), the
availability and cost of raw materials, the Company’s ability to
adjust timely to changes in trade regulations and the migration and
development of manufacturers (which can affect where the Company’s
products can best be produced), changes in available factory and
shipping capacity, wage and shipping cost escalation, and civil
conflict, war or terrorist acts, the threat of any of the
foregoing, or political and labor instability in any of the
countries where the Company’s or its licensees’ or other business
partners’ products are sold, produced or are planned to be sold or
produced; (vi) disease epidemics and health related concerns,
which could result in closed factories, reduced workforces,
scarcity of raw materials and scrutiny or embargoing of goods
produced in infected areas, as well as reduced consumer traffic and
purchasing, as consumers become ill or limit or cease shopping in
order to avoid exposure; (vii) the failure of the Company’s
licensees to market successfully licensed products or to preserve
the value of the Company’s brands, or their misuse of the Company’s
brands and (viii) other risks and uncertainties indicated from
time to time in the Company’s filings with the Securities and
Exchange Commission.
Risks and uncertainties related to the transaction include,
among others: the risk that the conditions to the closing are not
satisfied and the transaction is not completed; uncertainties as to
the timing of the transaction; competitive responses to the
transaction; the inability to obtain, or delays in obtaining,
synergies from the transaction; unexpected costs, charges or
expenses resulting from the transaction; the inability to recognize
the expected benefits of the transaction; the inability to operate
under the new supply chain structure without disruption to the
businesses that use the goods produced or other Company operations;
and any changes in general economic and/or industry specific
conditions.
The Company does not undertake any obligation to update publicly
any forward-looking statement, whether as a result of the receipt
of new information, future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170323006352/en/
PVH Corp.Dana Perlman,
212-381-3502Treasurer and Senior Vice President, Business
Development & Investor
Relationscommunications@pvh.comorLi &
Fung LimitedFTI ConsultingCora Wan, +852 3768
4542lifungpr@fticonsulting.com
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