PVH Corp announces tactical changes for the Calvin Klein brand
Expecting revenue to be at least $9.57 billion for the full year 2018
PVH Corp’s Calvin Klein business has announced tactical changes for the CALVIN KLEIN brand. The Company expects to incur pre-tax costs of approximately $120 million over the next 12 months in connection with the Calvin Klein restructuring, primarily consisting of severance, inventory markdowns and allowances, asset impairments, and lease and other contract termination expenses, including as a result of the closure of its flagship store on Madison Avenue in New York, New York. Cash outflows related to these pre-tax costs are expected to be approximately $60 million over the next 12 months.
PVH which manages a diversified portfolio of brands, including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, Arrow, Speedo(1), Warner’s, Olga, Geoffrey Beene and True&Co., as well as various other owned and licensed brands, expects its revenue in the fourth quarter and full year 2018 to be at least $2.40 billion and $9.57 billion, respectively, which is above its plan. Emanuel Chirico, Chairman and Chief Executive Officer, commented, “Our improved 2018 outlook reflects the power of our diversified global business model. Specifically, we are experiencing out performance across all of our businesses relative to our previous guidance, despite the increasingly volatile macroeconomic and geopolitical environment.”News US