Sees Increased Losses due to Covid 18
The PVH group Ended the first quarter with $1.8 billion of liquidity, consisting of approximately $800 million of cash on hand and $1 billion of available borrowings under revolving credit facilities
The company’s first quarter results were significantly impacted by the COVID-19 pandemic as company’s stores and its wholesale customers’ stores were closed for six weeks on average during the quarter. As a result of the widespread temporary store closures and reduced traffic while stores were open, revenue in the Company’s retail stores declined approximately 50% to 65% compared to the prior year period, depending on the region.
The revenue decreased 43% to $1.344 billion as compared to the prior year period. By mid-June, over 85% of the Company’s stores globally are expected to be reopened. Sales for reopened stores for the second quarter-to-date are running down approximately 25% globally as compared to the prior year period.
The pandemic will continue to have a significant impact on the second quarter and full year 2020 results; while the company expects that its revenue decline in the second quarter will be more pronounced than in the first quarter, it cannot provide more detailed guidance at this time due to the dynamic nature of the situation.
The Company’s directly operated digital commerce businesses experienced strong growth in all regions, increasing 47% globally compared to the prior year period, partially offsetting the revenue decline in the Company’s other distribution channels.
Sales for reopened stores for the second quarter-to-date are running down approximately 20% in Europe, 25% in North America, and 25% for total Asia, with China approximately flat, compared to the prior year period. While sales remain down across all regions, traffic and sales trends are improving each week.