The brand, a wholly owned subsidiary of PVH Corp., said in a statement that the 654 Madison Avenue store will be closed as a result of Calvin Klein’s ongoing assessment of its omni-channel strategy.
The company is evaluating options for future retail locations, and will also be unveiling new consumer experiences both online and offline. According to the statement, the brand’s leadership team has adopted a digital-first approach and would begin to reorganize its North American division, combining operations in sportswear and jeans.
“These strategic initiatives will enable us to run a more modern, dynamic and effective business, as well as allow us to reinvest in the brand,” stated Steve Shiffman, chief executive officer of Calvin Klein, in the statement.
Shiffman credited the reason behind the strategic changes as a historic transformation in consumer behavior which presents a significant growth opportunity.He stated that the company looks to grow the brand to $12bn in global retail sales over the next few years.
“Now more than ever, we must double down on meeting consumer demands by creating culturally relevant products and experiences that engage communities by pushing fashion and culture forward,” Shiffman added.
Shares of PVH Corp. rose 5.11% to close at $104 dollars apiece.
The announcement came after a batch of stores closed their flagship stores on the prestigious Fifth Avenue and Madison Avenue shopping area in New York city.
Last week, Lord & Taylor closed its 104-year-old flagship store on Fifth Avenue, which used to be a landmark with animated holiday windows and a fine selection of jewelry and clothing that attracted city dwellers and tourists alike.