Last year, Calvin Klein said it would give up its high-end ready-to-wear series and disbanded the teams in its New York and Milan offices, laying off a total of 100 people. The Milan office also closed. Michelle Kessler-Sanders, president of Calvin Klein 205W39NYC, will leave, but the brand Chief Executive Officer Steve Shiffman remains in office.
At that time, some people believed that Calvin Klein would withdraw from the high-end market; others believed that it would close its high-end ready-to-wear series. It won’t have much impact on the brand. In the first fiscal quarter ending on May 3 this year, PVH Group’s sales fell 43%, and its net loss reached US$1.1 billion. Among them, sales of Calvin Klein and Tommy Hilfiger plummeted by 46% and 39% respectively.
As time goes back to the present, not long ago, PVH Group, the parent company of Calvin Klein and Tommy Hilfiger, announced the day before yesterday that in order to control costs as much as possible In response to the new coronavirus epidemic, it is preparing to lay off 450 employees in North America and close a total of 162 stores under its brands.
Extended reading: Burberry’s latest quarterly report: comparable sales fell 45% year-on-year, and the Chinese market grew 15%
British luxury goods group Burberry announced key financial data for the first quarter of fiscal year 2021 (as of June 27). Comparable retail sales fell 45% year-on-year to 2.57 billion pounds. Among them, the Chinese market performed best, with a year-on-year growth of 15%.
The group stated that it is promoting organizational changes, including updating product strategies, streamlining office functions, and improving retail efficiency in overseas markets.
The drop in demand for luxury goods caused by the new crown epidemic severely affected Burberry’s sales last quarter. The group expects that it will take some time to return to pre-epidemic levels.
But Burberry said it has seen some signs of recovery. The group’s same-store comparable sales fell 20% in June, which was better than the overall decline in the quarter (45%). As consumers returned to the domestic market, sales growth in mainland China and South Korea in June exceeded pre-epidemic levels.
Burberry is undergoing organizational changes. To improve its product strategy, the company has established three new business units including ready-to-wear, accessories and footwear. The group is also proposing to further streamline office functions and improve retail efficiencies in certain areas outside the UK.
Burberry expects that a series of organizational changes, including the rationalization of office space, and one-time costs related to restructuring will be 45 million pounds, which will save the group approximately 35 million pounds in the 2021 financial year. sterling, which will save approximately 55 million pounds per year in the future. Previously, Burberry also announced a 140 million pound cost saving plan, and the savings from this organizational change will be further accumulated into the plan.
The group stated that it will reinvest the saved funds in consumer-oriented terminal retail, including pop-up stores, visual marketing, digital marketing, large-scale events and marketing .
Burberry expects that the second quarter of fiscal year 2021 will continue to be severely affected by the epidemic. In terms of retail business, customer traffic is still very low, some stores are still temporarily closed, and the opening hours of open stores have also been shortened. The company expects retail sales to decline 15% to 20% in the second quarter of fiscal 2021.
In its wholesale business, Burberry is working with partners to protect the brand from damage. Therefore, it is expected that sales in the first half of fiscal year 2021 will decrease by approximately 40% to 50% year-on-year, gross profit margin will decrease by 2 to 3 percentage points year-on-year, and operating expenses will decrease by approximately 15% year-on-year.
Due to the uncertainty caused by the epidemic, Burberry did not give full-year performance expectations. </p