Designer Holdings Ltd.
Ticker: DSH 1385 Broadway, Third Floor
Exchange: New York Stock Exchange New York, New York 10018
Industry: Manufacturing (212) 556-9600

Type of Shares:Common Shares Filing Date:3/12/96
U.S. Shares:8,000,000 Offer Date:5/9/96
Non-U.S. Shares:4,000,000 Filing Range:$14.00 - $16.00
Primary Shares:6,000,000 Offer Price:$18.00
Secondary Shares:6,000,000 Gross Spread:$1.10
Offering Amount: $180,000,000 Selling:$0.68
Expenses:$3,400,000 Reallowance:$0.10
Shares Out After:31,509,334

ManagerTierPhone
Merrill Lynch & Co.Lead Manager (212) 449-4600
Morgan Stanley & Co. IncorporatedCo-manager (212) 703-4797

Auditor: Coopers & Lybrand
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 12/31/95
Revenue:$462.12$114.64$83.40Assets:$250.81
Net Income:$11.06$6.56$3.05Liabilities:$218.33
EPS:$0.46$0.27$0.13Equity:$32.48

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
Designer Holdings Ltd. develops, sources and markets designer sportswear lines for men, juniors and women and petites under the Calvin Klein Jeans, CK/Calvin Klein Jeans and CK/Calvin Klein Jeans Khakis labels. The Company's products target youthful, culturally conscience consumers and capitalize on the cachet and image created by over 20 years of extensive image advertising for Calvin Klein, one of the world's most influential designers. The Company collaborates with the in-house design teams of Calvin Klein, Inc. to create products characterized by high quality and casual, contemporary fashion. Each of the Company's lines combines both basic and fashion items in a broad range of casual fabrications, including jeans, khakis, knit and woven tops and bottoms, T-shirts, shorts, fleece shirts and pants, outerwear such as leather and denim jackets, caps and related accessories. The key initiatives implemented by the company since obtaining the CKJ license have included i) broadening its target market by re-engineering the garments to provide a comfortable fit and flattering appearance for a greater number of potential consumers ii) increasing the value offered to consumers by lowering the price of its designer-quality products iii) targeting juniors, petites and childrens lines with a specific marketing strategy and product offering iv) enlarging the core of basic styles for each line v) establishing an inventory replenishment plan to meet the requirements of retailers.

Use of Proceeds
The proceeds from the proposed offering will be used to repay debt, including the retirement of a subordinated loan and the balance to reduce indebtedness under the Credit Agreement.

Last updated: 10/28/96

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