Philips-Van Heusen will continue to invest in its Timberland apparel business next year even as it halts expansion of its mall-based Calvin Klein stores to cut capital spending. The company affirmed its commitment to the Timberland brand even as it lowered its fourth quarter and full-year earnings guidance.
“Next year I think the plan is to open somewhere in the neighborhood of about 100 new shops for Timberland between Macy's, Dillards and some of our partners,” said Emanuel Chirico, chairman and CEO for PVH. “I think that's appropriate for the brand and given our strong cash position, we are not going to back off of that.”
PVH expects Timberland and its IZOD womens business to account for approximately half, or $15 million worth, of growth in its wholesale business in 2009. By contrast, its Calvin Klein stores continue to run at about 50% of the companys pro forma plan. PVH launched its Timberland mens apparel collection this fall and will launch its womens collection in the spring. Original plans called for Timberland apparel to be sold through 600 department stores, specialty shops and Timberlands own full-price and outlet retail stores. In 2007, PVH said it expected to build the business to $150 million by 2013 from $70 million in 2006.
“At key item price points, that product performs very, very well for us,” Chirico said. “So we are going to continue to be aggressive on our positioning of that brand, putting it in line with where the footwear is priced and really create a value equation for that customer.” On Wednesday, a Timberland Macro Fleece Vest was on sale at macys.com for $39.99, marked down from $69.50. Timberland cargo pants were priced at $59.50.
