Change The Name Of The Store To CK, Erase All Traces Of Raf Simons, And Share Prices Immediately Soared.

Less than a month after the PVH Corp. (NYSE:PVH), the US clothing giant, fired Calvin Klein Inc.'s chief creative officer Raf Simons, it announced the increase in its holiday season and annual profit expectations.

PVH Corp. (NYSE:PVH) opened 6.73% higher on Friday and increased further to 8.79% at midday.

The group pointed out in its three quarter earnings report at the end of November.

Calvin Klein brand's high-end series and denim products are too slow to be accepted by consumers because of its "too high level" design, resulting in slower sales growth, and the group's quarterly revenue has not been able to meet market expectations for the first time in the past two years.

Although the management did not name names to make the Raf Simons back in the fashion world highly esteemed but aesthetical to the masses of consumers, PVH Corp. released a press release before Christmas, announcing that Calvin Klein Inc. broke up with the Belgian designer ahead of time, because his design concept was inconsistent with the new brand direction.

On Thursday, Calvin Klein Inc. elaborated on this "new direction" -- Taking the strategy of "digital priority" and reorganizing North American business, including the merger of North American men's sportswear and jeans department to enhance brand positioning, and integrate retail and e-commerce teams to create a new all channel strategy to suit consumer behavior.

In early 2016, after the creative design of Raf Simons, the high-end series renamed from Calvin Klein Collection to Calvin Klein 205W39NYC will start again in the new name and creative direction.

"Our industry is witnessing a historic change in consumer behavior," Steve Shiffman, chief executive of Calvin Klein Inc., pointed out in a press release that it is particularly important for brands to meet their needs with products and experiences that are close to consumer culture. It also presents a significant growth opportunity for brands to achieve global retail sales of $12 billion over the next few years.

To this end, as PVH Corp.'s second largest business after Tommy Hilfiger, Calvin Klein Inc. will spend 120 million dollars in 12 months to restructure, reduce about 100 jobs within the company, and close the 23 year old Calvin Klein New York Manhattan Madison Avenue Madison Avenue flagship store this spring.

Steve Shiffman says management is evaluating new retail outlets. Real estate sources say the company signed a new lease last year. The three floor store area is 18 thousand square feet, while the scale is 852 dollars.

On the other hand, PVH Corp. has adjusted the fourth quarter adjusted EPS from the expected 1.58-1.60 US dollar to at least 1.75 US dollars, better than the market forecast of US $1.61, and adjusted the EPS target for the whole year to US $9.5 or more from the US dollar.

On Thursday, PVH Corp. (NYSE:PVH) plunged 3.6% to 98.94 U.S. dollars on retail stocks sold by Macy s Inc. (NYSE:M) Messi department store group, expanding the decline in the past 12 months to 31.1%.

On Friday afternoon, the stock saw 107.64 dollars.

UBS AG UBS analysts pointed out that the action of PVH Corp. to improve profit prospects has released three positive effects: the three quarter EBIT sharp decline of 14.8% Calvin Klein brand has not slowed down, its cowboy business has not dragged the profit, and China and Europe have not damaged the group performance.

The bank raised the PVH Corp. (NYSE:PVH) rating from "neutral" to "buy", and the target price was raised from $145 to $170.

D.A. Davidson also recommends buying the stock, with a target price of US $134 in the next 12-18 months.