Underwear has long been The Warnaco Group's foundation. One of the top marketers of bras, the company designs and distributes intimates, swimwear, and sportswear under its own and licensed brands, including Calvin Klein, Speedo, Olga, and Warner's. Warnaco also makes menswear under the Chaps by Ralph Lauren brand. The manufacturer sells apparel to department stores, mass merchandisers, warehouse clubs, and specialty retailers in North America, as well as Asia, Europe, and South America. As part of its business, Warnaco also operates about 1,760 Calvin Klein retail stores worldwide and markets Calvin Klein and Speedo brand merchandise online. Warnaco was acquired by apparel maker PVH in February 2013.
Change in Company Type
Formerly a publicly traded company, Warnaco emerged as a wholly owned subsidiary of PVH in 2013 as a result of its $2.9 billion acquisition by and subsequent merger with and into a PVH subsidiary. The cash-and-stock deal brought various Calvin Klein brands under one roof -- Warnaco held the Calvin Klein jeans and underwear licenses, while PVH controlled design and product development for the Calvin Klein brands. The acquisition arrived two years after PVH acquired the Tommy Hilfiger brand for $3 billion. PVH is now one of the largest global branded lifestyle apparel companies in the world, bringing together Warnaco's established operations in Asia and Latin America and PVH's strong presence in North America and Europe.
Warnaco serves its parent company by owning the global Calvin Klein license for underwear, sleepwear, and loungewear.
Sales and Marketing
Leveraging distribution facilities and distribution contractors worldwide, Warnaco provides its products to wholesale customers and retail stores. It enlists the help of its distribution partners located in the US, Canada, and Mexico, as well as in China, Hong Kong, Australia, Singapore, Taiwan, the Netherlands, South Africa, Argentina, Brazil, Chile, and Peru. As part of its business, Warnaco also owns one distribution facility, leases about 10 others, and uses third-party services for more than 20 of its distribution warehouses.
Warnaco contributed about 25% of PVH's total revenue for fiscal 2014.
Parent company PVH plans to continue spreading its brands, including those held by Warnaco, across the globe. Specifically, it has been increasing its retail square footage in Brazil and China, increasing its presence in emerging markets in Asia and Latin America, and enhancing its fulfillment infrastructure worldwide.