PVH Corp. and Grupo Axo Announce Mexican Joint Venture

NEW YORK & MEXICO CITY–(BUSINESS WIRE)–#GrupoAxo–PVH Corp. [NYSE: PVH] and Grupo Axo announced today that they have
entered into an agreement to form a joint venture that will license from
wholly owned subsidiaries of PVH the rights to operate and manage the
distribution of Calvin Klein, Tommy Hilfiger, Warner’s, Olga and
brand products in Mexico. The joint venture will be formed by
merging PVH México, S.A. de C.V., a wholly owned subsidiary of PVH and
the operator of its Calvin Klein and Heritage Brands businesses in
Mexico, with Baseco, S.A. de C.V., a wholly owned subsidiary of Axo and
a distributor in Mexico of PVH’s Tommy Hilfiger brand products.
The closing, which is subject to customary closing conditions, including
regulatory approval, is expected to occur early in the third quarter of
2016. Terms of the joint venture were not disclosed. PVH expects this
transaction to be neutral to PVH’s 2016 earnings on a non-GAAP basis.

“This strategic move allows us to maintain a direct ownership interest
in our Calvin Klein and Heritage Brands businesses in Mexico, while
gaining more control over our Tommy Hilfiger business in the region,”
said Emanuel Chirico, Chairman and CEO of PVH. “Grupo Axo, which will
oversee the joint venture’s day-to-day operations, is an experienced
multi-channel distributor, including successfully managing our Tommy
Hilfiger business in Mexico for the last 22 years. We believe that
leveraging Grupo Axo’s in region expertise across our brand portfolio
should ensure the long-term potential in Mexico of our brands.”

“We have a long and successful relationship with Tommy Hilfiger and PVH.
We are excited about the opportunity to expand our relationship to
include the global megabrand, Calvin Klein, as well as the Warner’s,
and Speedo heritage brands. We believe all these brands
have huge potential for growth in Mexico and we look forward to
partnering with PVH to make that potential a reality,” said Andres
Gomez, Co-Chief Executive Officer of Grupo Axo.

About PVH Corp.

With a heritage going back over 130 years, PVH Corp. has excelled at
growing brands and businesses with rich American heritages, becoming one
of the largest apparel companies in the world. We have over 30,000
associates operating in over 40 countries with over $8 billion in 2015
revenues. We own the iconic Calvin Klein, Tommy Hilfiger, Van Heusen,
*, Warner’s and Olga brands and
market a variety of goods under these and other nationally and
internationally known owned and licensed brands.

*The Speedo brand is licensed for North America and the Caribbean in
perpetuity from Speedo International, Ltd.

About Grupo Axo

Grupo Axo is a leading multi-brand company in Mexico for apparel,
accessories and home brands. Today, Group Axo is an indispensable
reference and the most reliable resource for the firms and partners that
want to build a successful platform in the Latin-American Market. With a
solid retail and wholesale experience for over 22 years, its expertise
comes from representing, elevating equity, distributing and operating
brands through a multi-channel approach. As of 2016, Grupo Axo operates
more than 2,200 points of sale within major department stores and over
400 free-standing stores in both Mexico and Chile. Within its portfolio,
Grupo Axo proudly represents Abercrombie & Fitch, Bath & Body Works,
Brooks Brothers, Brunello Cucinelli, Coach, Crate & Barrel, Emporio
Armani, Guess, Kate Spade, Theory, Express, Hollister, Chaps, Loft,
Rapsodia, Thomas Pink, Tommy Hilfiger, Victoria´s Secret and Promoda,
the leading off-price retailer in Mexico. www.grupoaxo.com

REFORM ACT OF 1995: Forward-looking statements made in this press
release, including, without limitation, statements relating to PVH
Corp.’s future 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 licensees at wholesale and retail, and the extent of discounts
and promotional pricing in which the Company’s 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, and other factors; (iii) civil
conflict, war or terrorist acts, the threat of any of the foregoing, or
political and labor instability in any of the countries where the
Company’s licensees’ or other business partners’ products are sold,
produced or are planned to be sold or produced; (iv) 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, as well as reduced consumer traffic
and purchasing, as consumers limit or cease shopping in order to avoid
exposure or become ill; (v) 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 (vi) 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
forward-looking statement, whether as a result of the receipt of new
information, future events or otherwise.


Media / Investors
Dana Perlman
Senior Vice President – Business
Development and Investor Relations
+1 (212) 381-3502

Alexandra Wagner
VP, Corporate Communications
(212) 292-9794

Abdel El Hamri
SVP, Global Communications
(212) 548-1728

Investors Relations
Raúl del Villar
Finance Officer
Media and Communications
Country Manager