The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Swatch Group Won't Renew Calvin Klein Licence Agreement

The group attributes the decision to uncertainties in Calvin Klein's management.

Reuters

22 October 2019

ZURICH, Switzerland — Swiss watchmaker Swatch Group will no longer make watches and jewellery under the Calvin Klein brand, reducing its exposure to a price segment that is under pressure from smartwatches and other fashion watches.

The group, which also makes high-end Omega and cheaper plastic Swatch watches, said in a statement on Tuesday it would not renew the collaboration with Calvin Klein when it expires "in the near future", attributing the decision to uncertainties in Calvin Klein Inc.'s management.

Vontobel analyst Rene Weber said this would reduce group sales by about 2 percent, but that the earnings contribution was likely zero due to the heavy competition.

By Silke Koltrowitz.

In This Article

Topics

Retail

People

Calvin Klein

Organisations

Location

Zurich, Switzerland

US Sues to Block $8.5 Billion Union of Coach, Michael Kors

Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.

Op-Ed | How Long Can Adidas Surf the ‘Terrace’ Trend?

As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.

For Struggling Public Companies, Going Private Is No Panacea

Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.