The world’s largest shirt and neckwear company, PVH Corporation (PVH - Free Report) renewed its ties with top designer shirts brand, Geoffrey Beene, by agreeing to sell Geoffrey shirts for another nine years through 2021. PVH Corp. has been engaged in designing, marketing and distributing Geoffrey Beene shirts since 1982.
Additionally, the new agreement has an inbuilt renewal term, which allows further extension of the contract between the two companies through 2028, upon the fulfillment of certain conditions.
Geoffrey Beene happens to be one of the first licenses gained by PVH to sell third party brands at its stores. The brand offers international wrinkle-free trendy assortments made of sateen fabrics in attractive color combinations. The shirts are designed to suit a variety of customer groups including the fastest growing business segment. They consist of a variety of fits that range from big & tall, regular fit, fitted, and slim fit. Geoffrey Beene shirts are available at all major department and specialty stores across the United States and Canada. The renewed relationship will definitely augment growth prospects of PVH.
PVH Corp. has been also counting upon its iconic brands, Calvin Klein and Tommy Hilfiger, and has been taking initiatives to revamp its Heritage Brands wholesale business. These endeavors are well reflected through its improved guidance for fiscal 2012.
For fiscal 2012, the company now anticipates earnings in the range of $6.32–$6.37 per share instead of $6.25–$6.32 projected earlier. Guidance range for the third-quarter was raised to $2.28–$2.30 per share from the previous guidance range of $2.20–$2.25.
PVH Corp., which competes with Ralph Lauren Corporation (RL - Free Report) , currently has a Zacks #2 Rank, which translates to a short-term Buy rating. However, we remain slightly cautious on the stock and uphold our long-term ‘Neutral’ recommendation, waiting to observe further catalysts before taking a positive stance on the stock.
PVH Corp., formerly known as Phillips-Van Heusen Corporation, is headquartered in New York. PVH Corp. designs and markets branded dress shirts, neckwear, sportswear, footwear and other related products. The company markets its products at a wholesale level through department store chains and directly to consumers through retail stores. The company's portfolio of brands includes its owned brands and licensed brands.