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CK Parent Company'S Revenue Declined By 43% In The First Quarter, And Business Growth Was Strong.

2020/6/13 10:06:00 0

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CK The First Quarter E-Commerce Business.

Chinese clothing news, in June 11th, Calvin Klein parent company PVH Corp released the first quarter earnings report, the first quarter revenue realized $1 billion 344 million, a decrease of 43% over the same period last year.

PVH Corp said revenue in the first quarter reflected a 47% increase in direct sales of digital business operations, thanks to strong growth in all regions, partly offset the decline in revenue from other distribution channels.

For the reasons for the decline, PVH Corp further indicated that Tommy Hilfiger business decreased by 39% compared with the same period last year (fixed exchange rate decreased by 37%), of which Tommy Hilfiger North America dropped 51%, Tommy Hilfiger International decreased by 32%;

Compared with the same period last year, Calvin Klein decreased by 46% (fixed exchange rate decreased by 45%), including Calvin Klein because North America business decreased by 54% and Calvin Klein due to 40% reduction in international business.

Compared with the same period last year, the traditional brand business declined by 47%.

PVH Corp's brand Calvin Klein has been on a downward trend, business income in 2019 dropped 2% to 936 million U.S. dollars, and sales in Asia continued to slack.

According to the report, PVHCorp's pre tax deficit in the current quarter was $1 billion 200 million, compared with the pre tax surplus of $135 million in the same period last year, and the pre tax loss in the first quarter of 2020 included the cost of $972 million.

Affected by the epidemic, PVH Corp declined as a result of extensive temporary store closures and shops opening, and retail store revenue decreased by about 50% to 65% compared with the same period last year. Although the retail channel has been hit, PVH Corp has made a brilliant performance in the sales of e-commerce. The direct business of e-commerce has increased by 47% compared with the same period last year, partly offset the decline in other distribution channels.

Emanuel Chirico, chairman and chief executive officer of PVH Corp, said: "although the first quarter's performance has been seriously affected by the pandemic, we have been able to reopen most shops in all regions in the past month. At the same time, even if the store is reopened, our e-commerce business will continue to experience excess growth.

Compared with the same period last year, sales of PVH Corp Europe's stores that have reopened so far in the second quarter have dropped by about 20%, North America has dropped by 25%, Asian total sales have dropped 25%, while China is flat compared with the same period last year.

In addition, PVH group completed the transaction of Speedo North America business to Pentland Group PLC, the parent company of Speedo brand in April, with a net income of $169 million.

The PVH Group expects that 85% of its stores will be reopened in mid June, and sales in the second quarter will drop 25% compared with the same period last year. COVID-19 has had a significant impact on PVH Corp's business, and PVH Corp expects the second quarter revenue to decline more significantly than in the first quarter.