Izod is getting out of the retail business, closing 120 stores by the end of the year to focus on wholesale. PVH, which owns Izod, will convert 20 of the Izod stores to Calvin Klein or Tommy Hilfiger stores.
“We have made the difficult decision to exit the Izod retail business, as it has become clear that its business model can no longer achieve acceptable return metrics as a result of the increasingly competitive environment driven by more premium brands in the outlet retail channel,” said PVH CEO Emanuel Chirico. “The closing of our Izod retail division has no bearing on our Izod wholesale business strategy, which has shown great growth with our most recent launch at Kohl’s for the Fall 2014 season.”
PVH said it expects the move to cost about $40 million in charges, before taxes—mostly asset impairments, severance, inventory markdowns and lease exit costs.