PVH Corp, the owner of Calvin Klein and Tommy Hilfiger, said it plans to cut around 1000 jobs from non-customer-facing roles amid declining sales.
The announcement came after PVH told investors that its second quarter of the fiscal year brought $2.1 billion in groupwide revenues, down 3 per cent year on year. Tommy Hilfiger contributed $1.1 billion to this figure, while Calvin Klein contributed $913 million.
These sales figures, and a $439 million impairment from macroeconomic factors, led to a quarter-end loss of $102.9 million; however, the group’s CEO said this was in line with plan.
“In the second quarter, we delivered revenue in line with our guidance and profitability exceeding expectations, reflecting our disciplined execution of the PVH+ Plan across our two iconic brands, Calvin Klein and Tommy Hilfiger,” said CEO Stefan Larsson.
“In both brands, we are seeing early momentum for the new fall season in product and marketing, with a very positive consumer response to our recently-launched campaigns featuring Tate McRae for Calvin Klein and Travis Kelce for Tommy Hilfiger.”
PVH then filed a separate document with the SEC to disclose its ongoing plans to boost profitability. It included plans to reduce its global workforce by around 4 per cent – or 1000 people – starting immediately.
The group said this accounts for around 12 per cent of its office-based employees. It expects to achieve “at least” $100 million in savings from the cuts.
Larsson also welcomed newly appointed CFO Alexis Rollier to the company.
“Alexis joins us with deep financial and operational experience, including over 8 years as the global CFO and COO at Sephora, where he had a strong track record of driving disciplined growth with significant profit expansion,” he added.
