American company PVH (formerly known as Phillips-Van Heusen), the owner of such fashion brands as Tommy Hilfiger, Van Heusen, Calvin Klein, Arrow, Geoffrey Beene, and others, reported the results for the second fiscal quarter. Even though there was a drop in sales by 33% compared to the same period last year, this result exceeded expectations and is assessed by the company as generally good.
The company’s profit for the quarter was $1.5 billion, 33% less than in the second quarter of 2019, and it also recorded a loss of 13 cents per share, including adjustments, compared to a profit of $2.10 per share last year. For comparison, profit in the first financial quarter decreased by 43%. Online sales showed a significant recovery, with a 50% growth in sales.
PVH CEO Manny Chirico also shared his opinion on what factors influence the development of retail in today’s environment. Thus, assessing business development in North America compared to markets in Europe and Asia, he stressed that control over the pandemic is much more important for business support than monetary incentives from the government. And while there are encouraging trends in the markets of China and Europe, in the U.S., the position of PVH business is much worse, which is closely related to the fact that the country is now the world leader in terms of the number of diseases.
In regions where companies do not receive financial support from the state in such amounts as in the U.S. but have greater control over the spread of coronavirus, the PVH business is much more stable. Thus, while the pandemic will be the main factor in the development of retail, incentives from the government play a less critical role. However, in the current situation, many companies will support it.
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