Why Tommy Hilfiger And Calvin Klein Are Thriving While Other US Brands Are Tanking
A US clothing retailer that’s actually doing well feels like an anomaly these days. Labels such as the Limited, American Apparel, and Abercrombie & Fitch are shuttering locations across the country, as are department stores such as Macy’s. “The retail apocalypse has officially descended on America,” Business Insider declared, pointing out that more than 3,500 retail stores, many of which sell clothes, are expected to close within the next few months. But Tommy Hilfiger and Calvin Klein are successfully weathering the storm, and even thriving. In 2016, Calvin Klein’s sales grew 7%, while Tommy Hilfiger’s rose 4%. The main reason is that, despite being quintessential American labels, many of their sales don’t come from any one US outlet, or the US at all.
Several years ago, the brands’ owner, PVH Corp., began diversifying their sales bases beyond the US department stores that many other brands continued to rely on. It has also invested heavily in e-commerce to connect directly with shoppers. Those moves have paid off. Now, even though both Tommy’s and Calvin’s US businesses are suffering like many others’, with sales growth falling, overseas sales growth thrived in the most recent quarter. Read more at Quartz.
