Calvin Klein Launches Full-Scale Branded E-Commerce Site

NEW YORK—(BUSINESS WIRE)—Aug. 25, 2008—Calvin Klein, Inc., a wholly owned subsidiary of Phillips-Van Heusen Corporation [NYSE: PVH], today announced the launch of the much-anticipated e-commerce component to the company’s existing branded website at calvinklein.com.

Beginning today, the Calvin Klein website now allows U.S. shoppers to access products from the Calvin Klein ‘better’ brand through an additional channel and shop hundreds of Calvin Klein items, with more being added regularly. Guests from outside the U.S. will be automatically taken to the company’s global branding site, which supports all Calvin Klein brand offerings.

The new e-commerce site will bring together merchandise from virtually all categories presently available today under the Calvin Klein ‘better’ line of men’s and women’s apparel and accessories, as well as items for the home. Planned assortments will include men’s and women’s sportswear, suit separates, jeanswear, underwear, intimates, sleepwear, outerwear, footwear, eyewear, and watches; men’s tailored clothing, shirts, belts and ties; and women’s dresses and accessories. Additionally, merchandise from the Calvin Klein Home line will also be offered including bedding, bath, table linens, dinnerware, flatware, glassware, home décor, and gifts. Items from the Calvin Klein Collection and the ck Calvin Klein lines will not be offered on this site at this time.

The products offered have been developed to deliver a branded lifestyle experience in an on-line environment that complements the Calvin Klein ‘better’ brand positioning. The apparel and accessories have been developed especially for the on-line store as well as the recently launched Calvin Klein specialty retail stores, and are designed by our in-house team, led by Jacquie Wolfson, Creative Director – Calvin Klein Retail, working in conjunction with our talented licensing partners.

The new online store is complements and is supported by the freestanding Calvin Klein-branded ‘better’ specialty retail stores, which began to open exclusively in the United States in November 2007. These stores serve to further extend the brand while offering the Calvin Klein consumer an opportunity to experience the unique lifestyle environment first-hand and showcase the full range of the Calvin Klein ‘better’ men’s and women’s apparel and accessories offering. The on-line store is an extension of this new experiential format. Today, the ten stores now open are: Lenox Square in Atlanta, Georgia; The Beverly Center in Los Angeles, California; The South Coast Plaza in Costa Mesa, California; The Aventura Mall in Aventura, Florida; The Mall at Partridge Creek in Bloomfield Hills, Michigan; Natick Collection in Natick, Massachusetts; The Cherry Creek Mall in Denver, Colorado; The Forum Shops at Caesar’s in Las Vegas, Nevada; and The Americana at Brand in Glendale, California; and The San Francisco Center in San Francisco, California.

The on-line store will be supported with integrated on-line and off-line advertising programs that are customer-centric, and innovative, and will include the web address on all future print advertising. Additional marketing and promotional efforts will be implemented seasonally to drive traffic to the site and engage consumers. For the month of September, the company will be promoting a sweepstakes offering a $1000 on-line fall shopping spree to consumers who register on-line.

The site is multi-functional allowing clients the ability to zoom in/out, view products in alternate views and colors, search by size, create and send wish lists, and search store locations. Other services offered include gift wrapping, free gift messages, and free shipping on purchases over $200.

Said Tom Murry, President & COO, Calvin Klein, Inc., “We have been observing and studying branded e-commerce sites for the past several years. I feel that our team has had the benefit to learn from the challenges and successes of others and that they have created an exceptional site that will be a great branding platform as well as an important revenue producer for many years to come.”

“For Calvin Klein, direct to consumer initiatives are an important component for the future growth of the brand, especially in the U.S.,” said John Walsh, President & Chief Operating Officer, Calvin Klein Retail. “After successfully executing phase one of our direct to consumer initiative in the fourth quarter of 2007 with the launch of five specialty retail stores in major malls in the U.S. We recently completed phase two of this initiative with an additional five stores opened as of August 8th. With 10 specialty stores now open and operating, we are excited to begin phase three of this initiative with the launch of our e-commerce site, calvinklein.com. The continued expansion of this important revenue and communication medium is central to our future growth plans and has provided the necessary platform for the development of our on-line business.”

The overall concept of the brand website was designed by createthegroup and that design has been carried through to the on-line store. The e-commerce technology, fulfillment services, and customer care call center will be handled by GSI Commerce Inc. (Nasdaq: GSIC), a leading provider of e-commerce and multi-channel solutions.

“We are very excited for the opportunity to partner with Calvin Klein as they embrace the potential and promise of e-commerce,” said Damon Mintzer, GSI’s executive vice president of business development. “We worked closely with them during what was a thorough evaluation of the e-commerce solution marketplace. We are confident that GSI’s integrated, scalable solution will help to enhance the value and sophistication of this world-renowned luxury brand.”

Calvin Klein, Inc. is one of the leading fashion design and marketing studios in the world. It designs and markets women’s and men’s designer collection apparel and a range of other products that are manufactured and marketed through an extensive network of licensing agreements and other arrangements worldwide. Brands/lifestyles include Calvin Klein Collection, ck Calvin Klein, Calvin Klein, and Calvin Klein Jeans. Product lines under the various Calvin Klein brands include apparel, accessories, dresses, suits, dress shirts, outerwear, underwear, sleepwear, swimwear, performance wear, footwear, hosiery, socks, eyewear, watches, jewelry, fragrances, and cosmetics, as well as products for the home.

Phillips-Van Heusen Corporation is one of the world’s largest apparel companies. It owns and markets the Calvin Klein brand worldwide. It is the world’s largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, ARROW, Bass and G.H. Bass & Co., and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, unlisted, A Kenneth Cole Production, BCBG Max Azria, BCBG Attitude, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, Tommy Hilfiger, DKNY and Timberland.

GSI Commerce® is a leading provider of services that enable e-commerce, multi-channel retailing and interactive marketing for large, business-to-consumer (b2c) enterprises in the U.S. and internationally. It delivers customized e-commerce solutions through an e-commerce platform, which is comprised of technology, fulfillment and customer care. It offers each of the platform’s components on a modular basis, or as part of an integrated, end-to-end solution. It also offers a full suite of interactive marketing services through two divisions, gsi interactivesm and e-Dialog Inc.
 


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Forward-looking statements made in this release, including, without limitation, statements relating to Phillips-Van Heusen Corporation’s (the “Company”) future revenues and earnings, plans, strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the levels of sales of the Company’s apparel, footwear and related products, both to its wholesale customers and in its retail stores, the levels of sales of the Company’s licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and its licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, repositionings of brands by the Company’s licensors and other factors; (iii) the Company’s plans and results of operations will be affected by the Company’s ability to manage its growth and inventory, including the Company’s ability to continue to realize revenue growth from developing and growing Calvin Klein; (iv) the Company’s operations and results could be affected by quota restrictions and the imposition of safeguard controls (which, among other things, could limit the Company’s ability to produce products in cost-effective countries that have the labor and technical expertise needed), the availability and cost of raw materials (particularly petroleum-based synthetic fabrics, which are currently in high demand), the Company’s ability to adjust timely to changes in trade regulations and the migration and development of manufacturers (which can affect where the Company’s products can best be produced), and civil conflict, war or terrorist acts, the threat of any of the foregoing or political and labor instability in the United States or any of the countries where the Company’s products are or are planned to be produced; (v) disease epidemics and health related concerns, which could result in closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in infected areas; (vi) acquisitions and issues arising with acquisitions and proposed transactions, including without limitation, the ability to integrate an acquired entity into the Company with no substantial adverse affect on the acquired entity’s, or the Company’s existing, operations, employee relationships, vendor relationships, customer relationships or financial performance; (vii) the failure of the Company’s licensees to market successfully licensed products or to preserve the value of the Company’s brands, or their misuse of the Company’s brands and (viii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to update publicly any such forward-looking statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events or otherwise.

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