Apparel maker PVH Corp will exit its high-end collection of Calvin Klein apparel and shut the label’s flagship store on New York’s Madison Avenue, as the fashion line failed to strike a chord with customers. The company is in discussions with its North America apparel partner G-III Apparel Group to license out the brand’s women’s jeans unit. G-III also operates Tommy Hilfiger women's business, which helped boost PVH’s strong financial results in the fourth quarter, lifting its shares nearly 18 per cent in morning trading.

Fashion missteps at high-end Calvin Klein’s line of clothing have hit sales in recent quarters as customers balked at the high prices of the ready-to-wear luxury clothing label that offered oversized sweaters, tie-dyed and silk dresses. PVH’s decision to exit the label and license out its women’s jeans unit is expected to lower its fiscal 2019 revenue by 100 million dollars. However, the restructuring of Calvin Klein and the lack of a need for big promotions in its jeans business are likely to improve profit margins in the second half of 2019. Trade tensions have impacted the company’s retail business in China and the United States. Still, PVH forecast full-year adjusted profit between 10.30 dollars and 10.40 dollars per share.