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Translated by
Nicola Mira
Published
Mar 24, 2017
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PVH and Li & Fung strengthen sourcing partnership

Translated by
Nicola Mira
Published
Mar 24, 2017

After disclosing the results for the 2016 fiscal year, US fashion group PVH, owner of the Tommy Hilfiger and Calvin Klein labels, has announced the signature of a new agreement with Hong Kong sourcing giant Li & Fung, upgrading their current connection to a close partnership between the two enterprises. 


Visiting one of Li & Fung's logistics hubs in Hong Kong - Li&Fung


Until now, PVH collaborated closely with Li & Fung's sourcing department, being one of its main clients. Their relationship in the current form will change from 1st July, replaced by a new agreement by whose terms the Hong Kong group pledges to deploy a broader array of services and tech solutions in favour of PVH.
 
"Our objective is to set up a more efficient supply chain, which will allow us to respond to change and hold our place at the top of a fast-evolving industry, said the CEO of Tommy Hilfiger and PVH Europe, Daniel Grieder. The transformation of our sourcing strategy is a crucial step in increasing our products' time-to-market speed, and in allowing us to incorporate customer requirements more quickly in our new collections."

In its latest fiscal year, closed at the end of January, the PVH group recorded a 2% increase in revenue, reaching €7.6 billion. Growth was driven by sales rises throughout they year for both Calvin Klein (+7%) and Tommy Hilfiger (+4%).
 
Li & Fung operates 250 offices in some forty countries, and in the first six months of its current fiscal year, closed at the end of December, the group reached a revenue of €7 billion, down 6.2%. The labels owned by PVH (Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow, Speedo, etc.) represent a significant part of the group's business, and of that of its sister company Global Brands Group.

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