New York City – In an effort to streamline its North American operations and adapt to an evolving 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 reduce its office workforce by about 450 positions, or 12%.
PVH’s historic 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 the three brand businesses of Tommy Hilfiger, Calvin Klein and Heritage Brands, are expected to result in annual cost savings of approximately $80 million.
“The structural changes occurring in the North American retail landscape have forced us to take a hard look at our North American operations and identify where we can optimize costs in our business model,” says Manny Chirico, CEO of PVH. “We did not make these decisions lightly, as our Heritage Brands retail business is our oldest retail business, but no longer met appropriate performance metrics.”
Stefan Larsson, President of PVH, says the COVID-19 crisis is radically reshaping the long-term retail landscape in terms of consumer buying behavior. “We are adapting our activities and rebalancing our cost base to improve our competitiveness and financial profile and, where appropriate, reallocating resources to our activities that generate better returns,” he says.
PVH, based in New York, has approximately 40,000 associates operating in more than 40 countries. In 2019, the company had annual revenue of $9.9 billion.