PVH

PVH (Phillips-Van Heusen) is the owner of the Calvin Klein, Tommy Hilfiger, Van Heusen and IZOD brands. Created in 1876.

History

2023

Transfer of Russian business to a top manager of a local subsidiary

The new owner of the Russian business Tommy Hilfiger and Calvin Klein was the top manager of the Phillips-Van Heusen Corporation (PVH) subsidiary in the Russian Federation. This became known in mid-September 2023.

The fact that PVH withdrew from the capital of Piviach Stors Rus LLC writes Kommersant with reference to the data of the Unified State Register of Legal Entities (USRUL). It follows from it that Denis Shchukin became the new owner and general director of the company, and the name of the structure changed to Riteil Exelens LLC. Denis Shchukin's profile LinkedIn says that since 2018 he has been the director of the PVH retail chain in. Russia

The new owner of the Russian business Tommy Hilfiger and Calvin Klein was the top manager of PVH's subsidiary in the Russian Federation

Pavel Lyulin, vice president of the Union of Shopping Centers, told RIA Novosti on September 13, 2023 that information on negotiations on the sale of the PVH chain of stores on the market had been discussed for a long time.

At this time, direct stores in their own brand management did not work. Apparently, the costs associated with maintaining such "conservation" of the network forced the owner to switch to a plan to transfer the business to local management. This will allow you to open stores in the next month, two, - said Lyulin.

Another advantage of the deal will be that with such a scheme, the company will have the opportunity to return to the country, he added.

Managing partner of Vanchugov & Partners Alexei Vanchugov, in a conversation with Kommersant, noted that transferring the division to a local top manager may be the mildest option for preserving the business. In his opinion, the deal with PVH was most likely cashless, it could include the rights to rent stores, obligations to employees and counterparties. One Story partner Olga Sumishevskaya also notes that such a deal will allow you not to completely lose your established connections and contacts in the Russian Federation.^[1]

Reduction of 10% of the state

On July 11, 2023, PVH Corp., which owns well-known clothing brands such as Calvin Klein and Tommy Hilfiger, announced plans to restructure the business. As part of this initiative, approximately 10% of employees will be laid off.

It is said that the need for reorganization is dictated by the current macroeconomic situation and the high level of inflation. The company is forced to revise its organizational structure to reduce costs. It is assumed that this measure will save over $100 million per year. The company will use these funds to develop digital technologies, improve the operation of product supply channels and increase consumer activity.

Calvin Klein and Tommy Hilfiger owner fires 10% of employees

PVH is talking about costs of $50 million due to layoffs. The bulk of the funds will be for severance pay for reduced employees and various compensations. These losses will be reflected in the statements for the second quarter of fiscal 2023.

Exactly how many employees of the corporation will be dismissed is not specified. The layoffs are said to affect PVH Corp.'s representative offices globally. The company expects virtually all action under this restructuring program to be completed by the end of the third quarter of 2023.

The reorganization, as noted, will help PVH to implement digital transformation. In the current macroeconomic environment, the company is forced to look for ways to reduce costs. Since the beginning of 2023, PVH's capitalization has grown by 23% to $5.25 billion. At the same time, the Standard & Poor's 500 stock index added 15%. The company supplies a wide range of products to the market under more than ten own and licensed brands. PVH products are in high demand worldwide.^[2]

Notes