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The Tommy Hilfiger and Calvin Klein owner said the lay offs, affecting 12% of its office workforce, would impact all three brands and save about $80 million annually.
“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,” President Stefan Larsson said.
PVH estimated pre-tax charges of about $80 million over the next 12 months from costs associated with exit of its heritage brand retail business, which sells the three brands and accounted for 2.6% of its overall revenue in 2019.
“Overall, we see this as a positive development for PVH as the company exits a declining business and reduces costs,” Bernstein analyst Jamie Merriman said.
Spain’s Zara, Nordstrom (N:JWN) and Bath & Body Works have also closed stores in response to the COVID-19 pandemic.
