This article explores the world-renowned brand celebrated for its iconic jeans and alluring underwear. Discover more about the founding, operations, and breakthrough of Calvin Klein in the fashion world, right here on manhattanka.
Brand Beginnings
Calvin Klein is a globally recognized American designer clothing and accessories brand. The company is particularly famous for its designer underwear. Calvin Klein’s headquarters are located in the heart of Manhattan.
The brand’s story began back in 1968 when designer Calvin Richard Klein and his childhood friend Barry K. Schwartz, with $10,000, established a clothing store, “Calvin Klein Limited,” located in the York Hotel. Schwartz primarily handled the business side, while Calvin focused on the creative aspects. The brand’s first collection featured understated coats and dresses for young women. In 1969, Calvin Klein graced the cover of “Vogue” magazine for the first time. The brand’s popularity and recognition significantly increased in the 1970s. By 1973, Calvin Klein received his first Coty American Fashion Critics’ Award for his womenswear collection, followed by second and third awards in 1974 and 1975, respectively. The company’s revenue grew each year. By 1977, annual revenue had soared to $30 million. It’s worth noting that Calvin Klein later expanded by signing licensing agreements for cosmetics, jeans, menswear, and sportswear. Klein’s annual retail volume was later estimated at $100 million. In the first week of sales alone, the company sold over 200,000 pairs of its signature jeans.
Continued Growth and Breakthrough in the Fashion World
Calvin Klein Jeans was launched under license with Puritan. In the 1980s, an ad campaign featuring a 15-year-old Brooke Shields posing in signature Calvin Klein jeans catapulted the brand to fame as a true denim leader. In 1981, Calvin Klein Cosmetics Co. released its first fragrance, named “Calvin Klein.” In 1980, Minnetonka Corp. purchased the rights to produce Calvin Klein cosmetics for $1 million.
In 1982, designer Calvin Richard Klein expanded his brand, pioneering another phenomenon: intimate apparel. In 1983, Klein added women’s underwear. The company earned over $70 million in one year from its women’s lingerie and women’s boxer shorts collections. Subsequently, the brand began producing men’s underwear, mostly in white and featuring the signature logo waistband. Importantly, Calvin Klein actively marketed these items, positioning them as fashion statements rather than mere necessities.
By 1984, global retail sales were estimated at over $600 million. The brand’s clothing was sold in 12,000 stores across the U.S. and was available in six other countries. Later, its annual income surpassed $12 million. In 1992, the company faced near bankruptcy, but Calvin managed to restore and boost his empire’s profitability throughout the late 1990s, primarily thanks to the success of its highly popular underwear and fragrance lines, as well as its sportswear line. Later, under the guidance of designer John Varvatos, while he was with Calvin Klein, the men’s boxer brief – a hybrid of boxer shorts and briefs – was created. This underwear became incredibly popular; moreover, boxer briefs became a kind of revolution in the apparel world. The popularization of the clothing was driven by various advertising campaigns, which often sparked controversy but were nonetheless very successful. In 1993, Klein was named “America’s Best Designer.”
In mid-2002, Calvin Klein Inc. was sold to Phillips Van Heusen Corp (PVH). The sale also included an ongoing financial incentive for Klein based on future sales of the Calvin Klein brand. Initially, Calvin served as the creative head of the collections, but he later continued as an advisor to the new company starting in 2003. Since then, he has partially stepped back from the business.
