California Apparel News

This year, fashion company PVH Corp. plopped down $2.9 billion to acquire Warnaco Group, a New York company with a stable of well-known clothing labels.

One of those labels is Los Angeles–based Speedo USA, which for years has been a predominant presence on the competitive-swim scene. Think Michael Phelps, the U.S. swimmer who won eight gold medals in the 2008 Summer Olympic Games in Beijing and 10 gold medals during the 2012 Summer Olympic Games in London.He has a closet or two filled with Speedo swimsuits and accessories.

PVH said that, for now, it intends to keep the Speedo USA label, which is licensed from Speedo International Ltd. in England.

The swimwear division has been holding its own. In fiscal 2011, Speedo USA saw its wholesale revenues hit $229.3 million, up
5.4 percent from the previous year, when they were $217.5 million. Warnaco’s revenues for fiscal 2011 were $2.5 billion, an increase from $2.3 billion the previous year.

Speedo, however, is losing a bit of its competitive edge. In early December, Speedo USA and USA Swimming signed a new sponsorship agreement that no longer gives Speedo its 25-year-long exclusivity run for technical equipment. But Speedo has an official sponsorship agreement until 2020.

The Warnaco acquisition brings all the Calvin Klein labels under one roof. Warnaco has the license to make Calvin Klein jeans, swimwear and underwear. Since 2003, PVH has owned the Calvin Klein brand.

Warnaco’s other owned and licensed brands are Olga, Warner’s and Chaps.

Many analysts weren’t surprised about the news. The deal appeared to be in the making for at least three or four years because it made sense to incorporate the Calvin Klein products under one umbrella.

PVH will take advantage of Warnaco’s strength in Asia and South America to expand its other brands, which include Van Heusen, Tommy Hilfiger, Izod, Arrow, Bass and G.H. Bass & Co. Its licensed brands include Geoffrey Beene, Kenneth Cole New York, Sean Jean and Donald J. Trump Signature Collection.

PVH’s acquisition of Warnaco was just one of several high-profile acquisitions in 2012. In November Japanese retail giant Fast Retailing, owner of Uniqlo stores, bought an 80.1 percent stake in Los Angeles premium-denim brand J Brand Holdings LLC from private-equity firm Star Avenue Capital, which has owned a 60 percent stake in J Brand since 2010.

And this month, Los Angeles–based Sequential Brands Group, owner of the William Rast and People’s Liberation labels, announced plans to acquire Heelys Inc., the athletic-shoe brand that features a detachable wheel in the heel, for approximately $63.2 million. Earlier this year, Sequential bought DVS Shoe Co. for $8.55 million. Last month Sequential Brands hired Yehuda Shmidman as chief executive officer. Shmidman previously had been the chief operating officer for Iconix Brand Group in New York.—D.B.