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PVH Corp to exit Heritage Brands retail business, cut 450 office jobs

By Huw Hughes


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PVH Corp has announced it will be closing all of its Heritage Brands outlets and cutting around 12 percent of its office workforce as it looks to streamline its operations in the region amid the coronavirus pandemic.

The company, whose portfolio comprises Tommy Hilfiger, Calvin Klein and Heritage Brands, said around 450 positions would be cut across all three brand businesses and corporate functions - a move expected to save it around 80 million dollars annually.

It also said it would be exiting a total of 162 Heritage Brands outlets, which are expected to operate until mid-2021. PVH Corp’s Heritage Brands includes Arrow, Van Heusen, Warner’s, Olga, Izod and Geoffrey Beene.

“The structural changes occurring in the North American retail landscape have required us to take a hard look at our North American operations and identify where we can optimize costs across our business model,” PVH chairman and CEO Manny Chirico said in a statement. “As a result, we are making the incredibly difficult decisions to close our Heritage Brands Retail business and eliminate a significant number of positions throughout our North American organization to align with the lower revenue base.

The company said it expects to incur pre-tax charges of around 80 million dollars over the next 12 months in connection with these actions. The charges primarily consist of severance, lease termination costs, inventory markdowns and noncash asset impairments.

PVH president Stefan Larsson said: “While these decisions are always challenging, they are strategically important for the long-term health of PVH. The Covid-19 crisis is dramatically reshaping the retail landscape in ways that we believe will be long-term in nature and far-reaching in terms of consumer purchasing behavior.

“We are adapting our businesses and rebalancing our cost base to improve our competitiveness and financial profile and, where appropriate, are reallocating resources to our businesses that drive greater returns. We continue to focus on delivering sustainable, profitable long-term growth for all of our stakeholders, and we will continue to advance our business by looking for additional efficiencies.”

Photo credit: Tommy Hilfiger

Heritage Brands
PVH Corp
Tommy Hilfiger