Speedo USA is moving its headquarters from downtown Los Angeles to Cypress.
The swimwear manufacturer is leasing a 68,815-square-foot space on Katella Avenue and plans to move in November.
The two-story building is a former satellite campus of Chula Vista-based United States University, a for-profit school that vacated the premises in June.
An estimated 100 Speedo USA employees are expected to relocate to Orange County, according to sources close to the matter.
Its parent company, New York-based PVH Corp., is looking to fill eight positions that will be added to operations here, including a graphic designer for hard goods, a director of sales, and a retail planner.
PVH said in its June filings with the Securities and Exchange Commission that it plans “to continually innovate and extend our product offerings of swimwear and swim products,” given Speedo’s “strong reputation” in the world of competitive swimming.
“We also see potential to broaden the brand’s customer base and relevance beyond the competitive swimmer population to reach more general fitness and recreational consumers,” according to the filing. “We look to leverage opportunities around the 2016 Olympics to further fuel the business.”
Speedo joins a vibrant cluster of swimwear designers and manufacturers in Orange County, a roster that ranges from Manhattan Beachwear Inc., also in Cypress, to Raj Swim in Tustin, and Irvine-based Beach Bunny Swimwear and L*Space by Monica Wise in Newport Beach. Larger apparel brands based here also sell swim lines—big names such Quiksilver, Vans and Volcom, to name a few. The various companies account for hundreds of millions of dollars in annual sales, thanks to their own brands, as well as license deals for big designer labels.
Speedo designs and markets adult and children’s swimwear, as well as a lineup of accessories that ranges from swim goggles and water-based fitness products to electronics. It also has well-developed competitive swimming collections—more Olympic gold medals have been won in Speedos than in any other brand.
PVH got a license to sell Speedo products in North America as part of a deal to acquire Warnaco Group Inc. in 2013 for approximately $3 billion. It pays a minimum royalty fee each year of about $1 million to Speedo International Ltd. in the U.K.
Speedo USA is part of PVH’s “Heritage Brands” portfolio, which also includes the Warner’s and Olga labels. The group’s global retail sales in 2014 were approximately $3.7 billion.
PVH doesn’t break out sales for the group by brand.
Speedo is sold in more than 11,000 stores and through team dealers, swim clubs, off-price stores, catalog retailers and its website, www.SpeedoUSA.com.
The brand sponsors numerous swimmers and divers, including Olympian Missy Franklin, among others. Speedo sponsored Michael Phelps, who has won 22 Olympic medals, from the time he was 16 to his retirement from competitive swimming in 2013. Phelps signed with Italy-based Aqua Sphere for his current comeback.
Speedo is currently leasing a 38,000-square-foot office at Los Angeles Center Studios. Its former licensee, Warnaco Swimwear Group, a division of the Warnaco Group, moved there in 2008 from New York.
PVH, which changed its name from Phillips-Van Heusen in 2011, had more than $8 billion in revenue last year. It manufactures and markets apparel under designer labels, including Calvin Klein, Tommy Hilfiger, Van Heusen, Izod and Arrow. Its licensed brands include Michael Kors, Chaps, Kenneth Cole New York, Ike Behar, Donald J. Trump Signature Collection, and John Varvatos, among others.
