The cost of rebranding Calvin Klein after Raf Simons is 240 million dollars

The cost of rebranding Calvin Klein after the exit of Raf Simons, or rather re-re-branding, is estimated to be 240 million dollars. The strategy was put in place in Q4 of 2018 after the announcement of Simons and Calvin Klein ending their contract before it was due to expire mid 2019.

Calvin Klein parent company PVH Corp is forecasting a deficit of 240 million dollars as the business prepares to undo the creative work installed by Simons, its former Creative Director, to connect with a customer who values less elevated and high fashion product.

According to Vogue, PHV have “disbanded the 205W39NYC” collection and closed the brand’s flagship boutique on Madison Avenue. The store, designed by British architect John Pawson, was considered a retail masterpiece when it first opened in 1995. After 25 years the operational costs of running its flagship are no longer viable for its tiered brand strategy.

While the fashion industry may have a short memory span, it was only two years ago when PVH invested to refurbish its Madison Avenue store Simons’ style, complete with yellow interior, floor to ceiling scaffolding and Sterling Ruby installations. At the time, Vogue’s Anonymous Shopper reported visitor numbers were up from an average of 36 customers per day to highs of 267.

Calvin Klein must also undo the rebranding of its logo, which the company refreshed and unveiled in February 2017. Created in partnership with British graphic design guru Peter Saville, Calvin Klein in an Instagram post at the time described Simons' new logo as "a return to the spirit of the original" and "an acknowledgement of the founder and foundations of the fashion house".

Currently fifty employees in the New York and Milan offices were let go, with Michelle Kessler-Sanders, president of Calvin Klein's elevated product collection 205W39NYC, due to leave the company in June.

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