PVH (ticker: PVH) announced that it would be cutting jobs and outlook amidst challenging environment. The owner of powerful apparel brands Calvin Klein and Tommy Hilfiger, lowered its full-year outlook and announced that it would cut jobs in an “increasingly challenging economic environment.”
The company said it would lower “people costs” in its global offices by roughly 10% by the end of 2023. The stock declined by 4.4% in premarket trading on Wednesday. It has declined nearly 41% this year.
PVH also announced that its full-year revenue forecast would fall by 3% to 4%, in contrast to the previous growth expectation of 1% to 2%. The company expects full-year adjusted earnings of $8 a share, lower than its previous projection of $9. The forecast includes roughly $1.25 a share caused by currency translation.
Analysts surveyed by FactSet were expecting full-year earnings of about $8.59 a share.
PVH earned $2.08 a share on an adjusted basis for the fiscal second quarter amidst declining sales of 8%, amounting to $2.21 billion.
“In light of continued macroeconomic headwinds, we are intensifying our focus on driving growth through the disciplined execution of our brand-focused, direct-to-consumer and digitally-led” plan, announced company chief executive Stefan Larsson.
The company said it was cutting jobs “to drive efficiencies and enable continued strategic investments to fuel growth, including in digital, supply chain and consumer engagement.” According to the company, cuts will result in over $100 million in annual cost savings.
This might also interest you: