US fashion heavyweights PVH Corp and VF Corp announce Covid-19 mitigation measures

American fashion companies PVH Corp and VF Corp have both announced their latest measures to mitigate the impact of the Covid-19 pandemic on their businesses.

PVH Corp, whose portfolio includes brands Calvin Klein and Tommy Hilfiger, said that in North America, where it has the highest concentration of its workforce, approximately 75 percent of employees working across its stores, offices and warehouses have been furloughed or have had their hours decreased. All remaining full-time staff will have a temporary salary reduction of between 5 and 20 percent.

In Asia, where most of its stores have reopened, all office associates have temporary salary reductions.

In Europe, PVH said governmental relief should mitigate payroll expenses there.

In Australia, “almost all” associates have been furloughed.

In Brazil, the company is “investigating its options in regard to governmental pay subsidies, working hour reductions and salary reductions.”

“We are doing everything in our power to best position PVH for long-term stability while considering the impacts to all of our key stakeholders,” said PVH CEO Manny Chirico in a statement. “We have been forced to take proactive steps to reduce our expenditures and preserve our cash position. While this is requiring difficult short-term decisions, we are confident that our actions will lead us to a stronger future.”

VF Corp

VF Corporation, the owner of brands Eastpak, Timberland and North Face, has announced all of its North America retail and office workers will receive full pay and benefits until at least 3 May.

In the EMEA region, retail employees will continue to receive full pay until the same date while office-based, wholesale and distribution center associates will have their hours reduced.

In the APAC region, where its offices remain closed but stores have begun to reopen, all employees continue to receive full pay and benefits.

VF is also drawing down the remaining 1 billion dollars available under its current senior unsecured revolving credit facility.

“Since the beginning of the Covid-19 outbreak, we’ve managed our response strategies with a people-first approach that prioritizes the health and well-being of our employees around the world,” said VF CEO Steve Rendle. “These new actions position us to continue supporting our people while also taking prudent measures to protect the financial integrity of our company as we manage through the prolonged disruption caused by this global health crisis.”

Photo credit: Tommy Hilfiger