Outlet stores

PVH to close 162 outlet stores and cut office workforce by 12%

New York City – In an effort to streamline its operations in North America and adapt to a changing retail landscape that has been accelerated by the COVID-19 pandemic, PVH Corp. (NYSE: PVH) said on Tuesday it would close all of its 162 Heritage Brands outlet stores and cut its office workforce by about 450 jobs, or 12%.

PVH’s heritage brands include Van Heusen, Izod, Arrow, Warner’s, Olga and Geoffrey Beene. Heritage Brands outlets are expected to operate until mid-2021.

The workforce reductions, which are spread across Tommy Hilfiger’s three branded businesses, Calvin Klein and Heritage Brands, are expected to result in annual savings of around $ 80 million.

“The structural changes taking place in the North American retail landscape have required us to take a close look at our North American operations and identify where we can optimize costs across our business model.” , said Manny Chirico, President and CEO of PVH. “We did not take these decisions lightly, as our Heritage Brands retail business is our oldest retail business, but it was no longer responding to the appropriate return actions. “

Stefan Larsson, president of PVH, says the COVID-19 crisis is dramatically reshaping the long-term retail landscape in terms of consumer buying behavior. “We are adapting our business and rebalancing our cost base to improve our competitiveness and financial profile and, where appropriate, reallocate resources to our businesses that generate better returns,” he said.

Based in New York, PVH has approximately 40,000 associates operating in more than 40 countries. In 2019, the company achieved annual revenue of $ 9.9 billion.

– Kristin Hiller

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