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From the coat rack outward After graduating from New York's Fashion Institute of Technology in 1962, Calvin Klein apprenticed at a coat and suit house, and spent five years designing at other New York shops. In 1968, Klein opened up his own coat shop on one of the floors of the York Hotel. The venture was bankrolled with a $10,000 loan from childhood friend Barry Schwartz, who managed the business. Within a year, as luck would have it, a buyer from Bonwit Teller (a department store similar to Lord & Taylor) got off the elevator on the wrong floor, and ended up placing a $50,000 order. Since then, Klein has expanded his small coat business into a fashion empire that ranges from haute couture to sportswear, underwear, fragrances, and eyewear. cK controversy Calvin's trademark style is minimalist, with a timeless appeal. His other trademark is his advertising strategy, which is spare and provocative, and chock full of waifish, pubescent models and homoerotic suggestion. In 1980, a 15-year-old Brooke Shields informed the world that nothing came between her and her Calvins; and in 1995, Klein was forced to pull an ad campaign that some said mimicked child pornography. He faced further criticism in 1997, when family values advocates spoke out against the "cK be" campaign because it glamorized the "heroin chic" aesthetic. The designer was attacked again in early 1999 for a Times Square underwear billboard which featured two barely dressed young boys. The public misinterpreted the display, and rumours of Klein's believed homosexuality flooded the press. Klein hastily apologized and had the ad removed. One lucrative label The company is divided into three separate businesses: Calvin Klein collection, the high-end runway designs; cK sportswear, the bridge line; and cK Jeans. Each segment offers clothing, perfume, accessories, and housewares. Calvin Klein, Inc. manufactures its domestic ready-to-wear collection and haute couture, but licenses the use of its name to other manufacturers for Calvin Klein jeans, underwear, fragrances, and its new home line. More than 90 percent of the company's revenues come from licensing the name to outside manufacturers. Dressing up the world In the past few years, the company has focused on international expansion, aiming to have 100 international outlets by 2001. The company distributes in Europe through department and specialty stores (like Harvey Nick's in London) and is opening shops all over the world. In 1997 it opened Calvin Klein collection stores in Seoul and Paris and CK Calvin Klein stores in Hong Kong, Milan, and Kuwait City. In hopes to bring more control to Japanese sales, the company announced the opening of a Tokyo branch office in January 2000. The island country is already one of the largest contributors to the Asia/Pacific's $500 million in retail sales for the company. Though the CK name is now well known internationally, Calvin Klein execs say they plan to continue working on creating an "international culture" within the company. Fortissimo control Gabriella Forte, the Chief Operating Officer, joined the company in 1994. Many credit her with bringing the company to a new level of financial stability. Forte has successfully managed international expansion, and overseen increasing sales. Executives in the industry describe her as a "master of consistency" - a powerful, confident woman. Some are not so complimentary, however. Forte may be a fabulous businesswoman, but she has a less-than-stellar reputation for her office demeanor. Former employees report that she has a bad temper, and has been known to hurl profanity-laden insults at employees. She also works grueling hours, and expects those around her to follow suit. Many say her attitude has led to the high turnover rate among execs at Calvin Klein. Sales flop Wanting to expanding its business, the company hired Investment bank Lazard Freres & Co. in October 1999 for guidance on a possible merger or alliance. Two luxury goods companies, LVMH and Pinault Printemps Redoute, came forth early with interest to join the designer, but nothing resulted. Similar disappointments struck the company when potentials Tommy Hilfiger Corp. and Italy's Holding de Partecipazioni dropped their bids, because of CK's steep price tag. After seven months and no buyer, the company decided to pull itself from the market, leaving it back in the hands of Klein and Schwartz. A different kind of suit Determined to recapture command of the CK underwear and jeans business, Klein is taking owner, Linda Wachner, to court. Announced in June 2000, Klein hopes to push Wachner out of the CK picture, claiming she is responsible for turning his products into "trailer trash." Through this lawsuit, Klein hopes to have Wachner's jeans license repealed, and in terms of ownership -- find a suitable replacement.
Many people get into the company through referrals and internships at Calvin Klein. Send resumes and cover letters to human resources at the New York One insider says "interviews are not particularly stressful," then counters that: "saying the right thing is essential because getting a job at Calvin Klein is really hard. Don't act all flustered or overwhelmed because then you won't seem qualified." Another tip: "Wear black and white."
Working in a color vacuum Calvin Klein is as spare and elegant on the inside as it appears on the pages of Vogue. When Gabriella Forte laid out the company culture in the corporate handbook, she was very clear about the environment she envisioned. One rule: no flowers in the office, except for the white calla lilies that grace the reception area on every floor. Beware the Klones Insiders agree that the company maintains that cool uniformity throughout. "Black pants, white dress top, black blazer is what 95 percent of the company wears" said one insider, "Calvin loves neutral colors." Designers are not required to follow the dress code, so as not to "squelch their creative spirit." Predictably, there are the "prissy wanna-be model types" who "walk around with their noses in the air." Insiders report that those who have the Klein style down pat are referred to as "Calvin Klones." Still, insiders describe their co-workers as "terrific" "friendly" and "team-oriented." Diversity a given Despite the dress code, life with the beautiful people seems to be quite satisfying, and very diverse. At least in design, "we have gay, white, black, everything in the middle." But it is the world of fashion design: "Women outnumber men, and a large majority of the men in design are gay." Chuck your planner "We are all carefree but serious about our work," notes one insider. For designers, "it's a lot of team work." And apparently there's a whole lot of it -- for most, the day lasts from 9:30 to 8:30, "but they send you home by car at night, so it's good." Employees say Calvin Klein is definitely not the place to go if you want a nine-to-five lifestyle. "When deadlines come they trash our weekends too," laments one designer. Unbelievable parties But it's pretty hard to feel too much sympathy for Calvin Klein employees, especially in a town where most professionals work 12-hour days. It's even harder to pity Calvin Klein employees when you hear about their office parties: One contact told us "At Christmas Calvin gave us a Christmas party at the place where the runway shows are held, and I thought I was in a dream -- I never was at such a classy party in my life. There was fake snow falling, the food was incredible, and everyone was dressed like a million bucks, including myself. To top it off, they gave us from December 25 to January 2 off, paid." Fashionable perks The company offers full medical and dental benefits, and two weeks paid vacation after one year of employment. For those fresh out of school, the pay is "not so terrific," but pay increases do come with time. Besides, the Calvin Klein name will stand out on your resume as much as it does on your back. And you can't beat perks like that stellar Christmas party and business trips to cities like Paris and Milan.
Human Resources
Accessories;Apparel;Coats Eyewear;Fragrances;Home furnishing;hosiery;Shoes;Sleepwear;Socks;Swimwear;Underwear;Watches
Chanel;Gucci;Prada More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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