Apparel maker Calvin Klein has announced that it will close its flagship store on Madison Avenue in New York City this spring.
The brand, a wholly owned subsidiary of PVH Corp., said in a statement that the 654 Madison Avenue store will be closed as a result of Calvin Klein's ongoing assessment of its omnichannel strategy.
The company is evaluating options for future retail locations and will also be unveiling new consumer experiences both online and offline.
According to the statement, the brand's leadership team has adopted a digital-first approach and will begin to reorganize its North American division, combining operations in sportswear and jeans.
"These strategic initiatives will enable us to run a more modern, dynamic and effective business, as well as allow us to reinvest in the brand," said Steve Shiffman, chief executive officer of Calvin Klein, in the statement.
Talking about the reason behind its strategic changes, Shiffman said the apparel industry is witnessing a historic transformation in consumer behavior which presents a significant growth opportunity.
He said the company is looking to grow the brand to $12 billion in global retail sales over the next few years.
"Now more than ever, we must double down on meeting consumer demands by creating culturally relevant products and experiences that engage communities by pushing fashion and culture forward," Shiffman added.
Shares of PVH Corp. rose 5.11 percent to close at 104 dollars apiece on Thursday.
The announcement came after a batch of stores closed their flagship stores on the prestigious Fifth Avenue and Madison Avenue shopping area in New York City.
Last week, Lord & Taylor closed its 104-year-old flagship store on Fifth Avenue, which used to be a landmark with animated holiday windows and a fine selection of jewelry and clothing that attracted city dwellers and tourists alike.