Calvin Klein’s parent company is moving to a leaner network and in-house fulfillment model as it seeks deeper control over distribution and logistics spend.
PVH Corp.—the owner of Calvin Klein and Tommy Hilfiger—is slashing its U.S. warehouse footprint in a bid to drive higher utilization, consolidate logistics costs, and take tighter control of e-commerce fulfillment.
As part of its network overhaul, PVH will close its North Carolina distribution center and shift operations to two facilities in Georgia, a move expected to increase capacity utilization from just over 50% to between 85% and 90%, according to CFO Zac Coughlin on the company’s latest earnings call.
The company will also bring e-commerce distribution back in-house, ending reliance on third-party fulfillment for direct-to-consumer orders. These changes are central to a broader operational reset designed to streamline processes and reduce North American distribution costs, Coughlin said.
Consolidation, Utilization, and Network Control
PVH’s move is both strategic and technical. With the closure of the Jonesville, North Carolina facility, the company will centralize fulfillment in Georgia, where existing infrastructure offers greater automation and efficiency potential. The Jonesville shutdown, which impacts 317 workers, is slated to take place between October and December 2025, according to a WARN notice filed earlier this year.
This consolidation reflects a broader industry trend: as brands rethink logistics models post-COVID, many are prioritizing higher facility utilization and end-to-end visibility. For PVH, the shift allows not only cost savings, but faster consumer response times—crucial in an apparel sector where seasonal agility matters.
The warehouse sale completed in fiscal 2024 and the ongoing tech platform unification signal a coordinated effort to simplify operations and future-proof the logistics function.
In-House Fulfillment as a Strategic Lever, Not Just a Cost Call
PVH’s decision to insource e-commerce distribution is notable at a time when many brands continue to debate the merits of outsourcing. While 3PLs offer flexibility, in-house fulfillment provides more direct control over cost drivers, customer experience, and service levels.
What makes PVH’s move particularly strategic is that it’s not simply chasing cost savings—it’s consolidating into a footprint that supports automation, standardization, and faster order cycles. This signals a shift from a reactive logistics model to a deliberate, performance-oriented one.
The lesson here isn’t to choose one model over the other—it’s to assess where control and consistency matter most, and design your network accordingly. As DTC channels grow more demanding and customer expectations keep rising, in-house operations may increasingly become a competitive advantage rather than an operational burden.
