Swimwear giant The Warnaco Group is snapping up distributor operations in popular markets for its Calvin Klein operations, it told investors this week.
Having acquired third party distributors in Chile, Peru and Brazil earlier this year, Warnaco has similar plans for Singapore and southern China, it told the Bank of America Merrill Lynch 2010 Consumer Conference.
Warnaco plans to vertically integrate its third party distributor operations in Singapore during the second quarter, with two distributors in southern China expected to follow later in the year.
The company will not vertically integrate distribution of its Calvin Klein businesses in the emerging markets of Russia and India for the time being though.
Frank Tworecke, president of the Warnaco’s sportswear group, describes the Calvin Klein brand as a “growth engine” for the company.
“Calvin Klein has strong brand equity, and around the world it has nearly universal global awareness,” he says. “We believe that the Calvin Klein business can double over time and is well poised for growth in 2010.”
Warnaco announced earlier this month that it had swung to a fourth quarter profit, having been buoyed by international growth of Calvin Klein, led by Asia and Latin America in particular.
The company expects to boost its Calvin Klein retail space by 40% in Europe and Asia, and 20% in Latin America.
Meanwhile, Warnaco is also eyeing double-digit growth for its Chaps brand in 2010.
“Chaps continues to outperform competitors and gain market share in a very competitive, moderately-priced men’s sportswear business,” adds Tworecke.
Warnaco owns the trademark for Calvin Klein underwear, loungewear and sleepwear, and has licensed trademarks for Calvin Klein jeans in North, South and Central America.
It also has trademarks for Calvin Klein, CK Calvin Klein and Choice Calvin Klein swimwear for a term.
Phillips-Van Heusen Corporation owns and markets the Calvin Klein brand worldwide.
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