Coronavirus outbreak in China continues to affect global brands and retailers!
The US-based PVH Corp., which owns brands such as Van Heusen, Tommy Hilfiger, Calvin Klein, IZOD, Arrow, Warner’s, announced today that it is working with local authorities to ensure the health, wellness and safety of its associates and business partners.
The company reaffirms EPS (earnings per share) of at least US $ 1.79 vs. US $ 1.81 consensus during Q4, and full-year EPS of at least US $ 9.45 vs. US $ 9.47 consensus.
Around 20 per cent of company’s global sourcing is derived from China, including approximately 10 per cent of sourcing inbound to the US.
As far as company’s 2019 revenue is concerned, Greater China is expected to account for approximately 7 per cent, while the Asia Pacific region is expected to account for approximately 16 per cent.
“We are closely monitoring the situation in China. While the Coronavirus will impact our businesses in the near-term, our long-term growth opportunities across the Asia Pacific region are significant. Given our diversified, global business model and the strength of our iconic brands, we are well-positioned to manage this period of uncertainty,” said Emanuel Chirico, Chairman and CEO of the company.
It is pertinent to mention that the majority of the total Calvin Klein and Tommy Hilfiger stores (company-operated and franchise) in China are temporarily closed due to Coronavirus concerns, including related government-imposed restrictions. Further, the stores that are open are operating for limited hours and are experiencing significantly lower than planned traffic and sales trends.