Calvin Klein Inc. will rebrand its 205W39NYC line and shutter its flagship store along Madison Avenue in New York as part of a series of strategic changes to the brand.
The PVH Corp.-owned company on Jan. 10 announced the plan, which includes relaunching its 205W39NYC business under a new name and creative direction. Calvin Klein said the relaunched brand will "focus on connecting directly to all of the other Calvin Klein brands" and will be "designed to evolve the traditional luxury fashion model."
Under the new strategy, Calvin Klein's management team also formed a division called consumer marketing organization to respond to the changing demands of consumers.
In addition, the clothing company said it is streamlining its North America business, which will include the consolidation of operations of the men's Calvin Klein Sportswear and Calvin Klein Jeans. It will also integrate the retail and e-commerce teams to create an omnichannel approach.
The changes follow the departure of Belgian designer Raf Simons from his role as chief creative officer of Calvin Klein. The company at that time said it decided to part ways with Simons after deciding on a new brand direction, which differs from Simons' creative vision.
Following the closure of its Madison Avenue store, Calvin Klein said it will review options for future retail locations and that it expects to launch new consumer experiences both online and offline.
According to fashion-focused publication Women's Wear Daily, around 100 people were let go across the business due to the changes.
In a separate release, PVH said it expects to incur about $120 million over the next 12 months in relation to the Calvin Klein's plan. It also raised its non-GAAP EPS outlook for fiscal 2018 to $9.50 from a previous full-year EPS expectation of between $9.33 and $9.35.