Swiss watchmaker Swatch Group says it will not renew collaboration with Calvin Klein when it expires “in the near future”, attributing the decision to uncertainties in Calvin Klein Inc.’s management.
The luxury watchmaker said this in a statement on Tuesday, October 22, 2019 and also stated that it will no longer make watches and jewellery under the Calvin Klein brand, reducing its exposure to a price segment that is under pressure from smartwatches and other fashion watches.
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Vontobel analyst Rene Weber said this would reduce group sales by about 2%, but that the earnings contribution was likely zero due to the heavy competition, Reuters reports.
Swatch Group shares were flat at 0957 GMT in line with the Swiss market.
Yetunde Adegoke
