PVH Corp (PVH.N) said on Tuesday it would cut 450 jobs in North America and shutter 162 retail stores of its business that houses brands such as Van Heusen and IZOD, as the coronavirus crisis wreaks havoc on the apparel industry.
The Tommy Hilfiger and Calvin Klein owner said the layoffs, affecting 12% of its office workforce, would impact three brands and save about $80 million annually.
“The COVID-19 crisis is dramatically reshaping the retail landscape in ways that we believe will be long-term in nature and far-reaching in terms of consumer purchasing behavior,” President Stefan Larsson said.
PVH estimated pre-tax charges of about $80 million over the next 12 months from costs associated with the exit of its heritage brand retail business, which sells the three brands and accounted for 2.6% of its overall revenue in 2019.
“Overall, we see this as a positive development for PVH as the company exits a declining business and reduces costs,” Bernstein analyst Jamie Merriman said.
Spain’s Zara, Nordstrom (JWN.N) and Bath & Body Works have also closed stores in response to the COVID-19 pandemic.