Dive Brief:
- As part of a broader strategic initiative, PVH Corp. plans to reduce its global workforce by about 4% with a focus on non-consumer-facing positions, according to a Thursday U.S. Securities and Exchange Commission filing. It represents cuts to about 12% of its office-based associates.
- The actions began immediately and are expected to wrap up within the first quarter of 2027.
- The company — which operates Calvin Klein and Tommy Hilfiger — expects to achieve $100 million of pre-tax cost savings in fiscal year 2027 via “people and non-people savings,” the company said.
Dive Insight:
PVH is aiming to improve productivity, strengthen long-term growth and further the execution of its broader strategic priorities. Part of that plan includes shifting the workforce structure.
The company wants to simplify ways of working by minimizing duplicative work and reducing organizational layers so employees can make decisions faster. PVH also wants to invest in product innovation, its supply chain, e-commerce and more.
E-commerce momentum for PVH has been a clear area for successful progress, according to Jefferies analysts.
“E-com is the strongest evidence that brand investments are working,” the analysts said in an emailed note in October after meeting with company management. “We expect target consumer, [marketing], and product assortment could also help e-com on a relative basis.”
PVH’s second quarter revenue dropped 3% year over year to about $2 billion, per a September release. Tommy Hilfiger revenue was about flat and Calvin Klein dropped 7%. Revenue decreased in the Europe, the Middle East, Africa and Americas regions, whereas APAC saw some gains. The company reiterated its full-year guidance of flat revenue compared to the year prior.
“We remain encouraged by recent greenshoots in the business,” Jefferies analysts said in their note. “However, Europe has seen outsized pressure, and the outlook for next [year] remains uncertain.”
PVH earlier this year announced a variety of leadership changes, including a new CFO and new appointments to head the Americas and Asia Pacific regions.
