Tommy Hilfiger owner PVH posts drop in Q2 sales, announces job cuts

Tommy Hilfiger owner PVH Corp has announced job cuts and lowered its full-year outlook after reporting a drop in revenue in the second quarter as supply chain issues impacted the business.

In the three months ended July 31, the US fashion giant reported an 8 percent drop in year-over-year revenue to 2.132 billion dollars.

Breaking it down by brand, revenue at Tommy Hilfiger was down 5 percent, revenue at Calvin Klein dropped 1 percent, and revenue at Heritage Brands plunged 44 percent.

The company also announced Tuesday plans to “reduce people costs in its global offices by approximately 10 percent” in order to “streamline its organization” and “drive efficiencies”.

CEO Stefan Larsson hailed “underlying strength” at Tommy Hilfiger and Calvin Klein “despite the increasingly challenging macroeconomic environment as the quarter progressed”.

Supply chain issues

Larsson said the company continues to “execute very well in Europe and Asia, where countries not currently impacted by Covid are performing significantly above pre-pandemic levels”.

However, Covid restrictions in China continue to impact the company, and ongoing supply chain pressures are impacting PVH’s North America business.

Second-quarter net income narrowed to 115.3 million dollars from 181.8 million dollars a year ago.

Based on its Q2 results, PVH now expects full-year revenue to decrease by between 4 percent and 3 percent, compared to its previous estimate of year-over-year growth.

Meanwhile, earnings per share on a GAAP basis are expected to be approximately 7.64 dollars compared to 13.25 dollars a year earlier.