PVHCorporation’s overall performance improved in the third quarter of fiscal year 2020, with all markets and sales channels improving due to the lifting of COVID-19 lockdown measures and a 36% increase in digital revenue driven by online demand. Both have grown in Season 2.
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PVH’s third quarter total revenue decreased 18.1%, an increase of 2.5% compared to the same period in 2019
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PVH third quarter earnings before interest and tax (EBIT), compared to 2019 A decrease of 4.5% in the same period last year
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Calvin Klein’s revenue in the third quarter decreased by 18.5%, an increase of 0.6% compared to the same period in 2019
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Tommy Hilfige’s revenue decreased by 11.4% in the third quarter, an increase of 9.8% compared to the same period in 2019
However, due to weak passenger traffic and continued travel restrictions, revenue still decreased by US$470 million to US$2.1 billion in the three months ended September 30. The fourth quarter is expected to be even weaker, with a decrease of nearly 20%, and the European business will be affected by the temporary closure of more stores.
Tommy Hilfiger and Calvin Klein account for nearly 90% of the company’s total revenue. PVH announced a smart strategic move in July to cut the entire Heritage Brands retail department. , including VanHeusen, Izod\GeoffreyBeene. The decision is sure to prove profitable, with the group estimating 80% cost savings by narrowing the company’s focus on what works for its “time-tested core iconic brands.”
Tommy Hilfiger and Calvin Klein, both brands known for their casual yet high-quality designs, have benefited a lot from the growing demand for comfortable wardrobe essentials this year.
Tommy Hilfiger manages to maintain a young and fresh image, and is compatible with popular culture, while using the most advanced digital technology. From investing in artificial intelligence for e-commerce analytics to developing the Snapchat shopping app, its successful digital strategy has allowed PVH to grow its direct-to-consumer online revenue by 70% during this epidemic, and it is undoubtedly an indispensable component.
Calvin Klein’s e-commerce product innovation progress is slow, which may explain why the brand’s performance has always remained silent. But by hiring Jessica Lomox, the former head of Nike’s global design, Calvin Klein will have a bright future. This move may strengthen the brand’s position in the field of casual sports, which will cater to consumers’ increasing attention to health and fitness throughout the new crown epidemic. .
Due to China’s strong demand for high-end luxury goods, the high prices of Tommy Hilfiger and Calvin Klein have helped brands recover in this market and achieve positive results compared with the previous year.
All in all, international sales of both brands remained unchanged, while revenue in North America decreased by nearly 40%. Due to the sharp decline in the number of international tourists, this group has traditionally accounted for a large proportion of sales in North America. Even though most of PVH’s North American stores have reopened, this region is regarded as the biggest burden for the brand. It has also witnessed that the pace of economic recovery in North America is much slower, so the price points of these two brands will be difficult to justify.
