(Filed Under Financial and General Interest News). PVH announced an extensive list of steps it is taking, including furloughs and salary reductions, to “navigate the COVID-19 pandemic and its effects on its associates and the company’s business and financial position.”
“In North America, which has PVH’s highest concentration of its workforce, PVH has commenced actions that will result in approximately 75% of store, office and warehouse associates being furloughed or having their working hours decreased,” it announced.
Manny Chirico, chairman and CEO, as well as the board of directions, will “forego cash compensation for the duration of the crisis,” and “approximately 250 senior leaders and executives globally will experience salary reductions of up to 50%.”
“With most stores in Asia reopened and operating with limited hours and reduced traffic,” PVH continued, “we are implementing temporary salary reductions for all office associates in the region.” The company announced similar steps in Europe, Australia and Brazil.
The firm noted it is “continuing to review and eliminate or reduce all discretionary operating expenses, including a reduced marketing spend and a decrease in capital expenditures to approximately $190 million from $345 million in 2019” and instituting a “tight management of inventories, with a focus on reducing its working capital through reduced and canceled commitments, redeployment of inventory and consolidation of future seasonal collections.”
PVH said it is “working closely with its vendors to extend payables with responsible purchasing practices underlying our approach, including offering inventory vendors the benefit of our vendor finance program that enables them to receive payments earlier at favorable market rates to assist their ability to navigate the financial effect on them of the extensions.”
Said Chirico of the situation, “Resilience has always been a strength of our company – and now more than ever, we need to be agile as we face a rapidly changing landscape. I am confident that our core strengths — our talent, our brands, and our strong fundamentals and balance sheet — will continue to support us through this uncertain time and ultimately lead us back to a healthy path of long-term growth once the pandemic subsides.”
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