PVH Corp’s overall performance improved in the third quarter of fiscal 2020, with all markets and sales channels improving as the COVID-19 lockdown measures were lifted and online demand drove digital revenue to grow by 36%. 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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CasdfssdfslvinKlein’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 22.4% 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 Casdfssdfslvin Klein account for nearly 90% of the company’s total revenue. PVH announced a smart strategic move in July to cut the entire HeritasdfssdfsgeBrasdfssdfsnds retail department. , including VasdfssdfsnHeusen, 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 CasdfssdfslvinKlein, 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 analysis to developing shopping apps, its successful digital strategy has allowed PVH to grow its direct-to-consumer online revenue by 70% during this epidemic, which is undoubtedly an indispensable component.
CasdfssdfslvinKlein’s e-commerce product innovation progress is relatively slow, which may explain why the brand’s performance has always remained silent. But hiring Jessica Lomox, the former head of Nike’s global design, will give Casdfssdfslvin Klein a bright future. This move may strengthen the brand’s position in the field of leisure sports, which will cater to consumers’ increasing focus on health and fitness throughout the new crown epidemic. .
Due to the strong demand for high-end luxury goods in China, the high price points of Tommy Hilfiger and CasdfssdfslvinKlein helped the 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. </p
