Calvin Klein: Charting a Comeback under Creative Director Veronica Leoni
Following a five-year hiatus, Calvin Klein is planning its return to the runway. The renowned brand’s now-revived Collection business is under the direction of Veronica Leoni, a 2023 LVMH Prize finalist also known for her work with brands like The Row, Jil Sander, Celine, and Moncler.
As Leoni reintroduces Calvin Klein to the runway next year, the comeback is anticipated to ignite countless reviews and comparisons with previous brand designers like Raf Simons, Francisco Costa, and Klein himself.
However, in the fashion industry, success hinges on both artistic innovation and commercial accomplishment. As Calvin Klein reestablishes itself within a challenging market sector, the brand needs to cater to consumers who have spending power and discerning fashion taste.
Robert Burke, Chairman and CEO of Robert Burke Associates consultancy, commented on the competitive nature of the current high luxury market, comparing Calvin Klein to giants like The Row, Phoebe Philo, Bottega and Loro Piana.
Last year, Calvin Klein reported $3.9 billion in revenues, indicating a 3% increase from the previous year. This included a 10% gain in the international unit and an 8% decline in North America, mostly due to caution in wholesale business operations.
The brand’s return suggests a strategic move to align Calvin Klein’s position for a more digital, fast-paced future. This strategic shift is evident, from Collection to the brand’s underwear line, and is reinforced by a series of marketing initiatives featuring high-profile celebrities like Jennie Kim from Blackpink and actor Jeremy Allen White.
White’s campaign, which launched on Jan. 4, generated $12.7 million in Media Impact Value within 48 hours, according to Launchmetrics.
The shift back into high-end fashion is a calculated move for Calvin Klein, which exited the sector in 2019, after investing $70 million to rebrand under Raf Simons without sufficient return. The brand has since lacked a fashion “halo” – the range of refined and expensive items that boost other category sales.
Notably, the brand also plans to breathe new life into its brick-and-mortar stores, with a 6,500 square-foot flagship opening on the Avenue des Champs-Élysées in Paris on Friday. A new New York flagship is also in the pipeline following the closure of Madison Avenue.
With a refreshed inventory, quicker response to market changes, reclaiming licenses for the U.S. wholesale business from G-III Apparel Group, Evans argues, “this is more about being relevant and going for those viral moments, being in the public discourse, having people excited about your brand more so than it’s about driving sales.”
As PVH continues to merge fast-fashion operating ideals with luxury dazzle, it charts a new positioning in the market. Next year on the catwalk, the brand’s direction under Leoni’s leadership should become more evident.