PVH Corp shuts majority of Chinese stores in response to coronavirus outbreak
New York-based fashion company PVH Corporation announced on Wednesday that it has temporarily closed “the majority” of its Tommy Hilfiger and Calvin Klein stores in China in response to the coronavirus outbreak in the country, and provided an update on the estimated impact of the epidemic on its finances and operations.
“We are closely monitoring the situation in China. Our priority is the well-being of our associates and business partners, their families and local communities, and our hearts are with those that have been impacted by the coronavirus,” commented PVH Corp chairman and CEO Emanuel Chirico in a release.
As well as revealing widespread closures of its stores in the country, some of which have been conducted in line with government-imposed restrictions, PVH Corp also said that those of its Chinese stores that have remained open are operating for limited hours and seeing significantly reduced traffic and sales.
Greater China is currently expected to account for around 7% of the company’s annual revenue in 2019, while the wider Asia Pacific region is predicted to contribute around 16%.
Furthermore, approximately 20% of the group’s global sourcing comes from China, with 10% of this heading to the United States.
With this in mind, PVH announced that it now expects both its fourth-quarter and full-year 2019 earnings to be below its previously reported guidance but is yet to provide specific figures.
The company previously announced that it expected to achieve a loss per share of around $0.20 in the fourth quarter, and annual earnings per share of approximately $6.32 in 2019.
PVH Corp joins a growing list of companies announcing the closure of their Chinese operations due to the coronavirus outbreak in the country, which to date has resulted in the deaths of more than 1,100 people.
International companies taking similar steps include VF Corp, Nike, Adidas, Skechers and Burberry.
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