PVH Corp Closes Chattanooga Warehouse, 85 Given Pink Slips

Abandoned Factory Locked Gate
iStock.com/jrwasserman

PVH Corp (NYSE:PVH), a clothing giant better known as Phillips-Van Heusen, has said it is closing a warehouse at 3915 Volunteer Drive in Chattanooga, Tennessee. The company filed an official WARN Notice with the Tennessee Department of Labor and Workforce Development, noting that the permanent closure will take place on July 14, leaving 85 employees out of work.

No one at the facility in Chattanooga, nor the corporate headquarters on Madison Avenue, would comment on the planned closing. The company, which makes and sells Calvin Klein, Tommy Hilfiger, Van Heusen, and IZOD, owns the Chattanooga facility that was built in 1964. According to the assessor’s office, PVH Corp. owns 13.5 acres on Volunteer Drive, with a 269,000-square-foot warehouse. The building and land are valued at $4.8 million.

PVH is one of the largest global apparel companies, having reported revenue of $8.2 billion in 2016. The company has 35,000 employees and operates in 40 countries.

While many in the retail sector are struggling, PVH isn’t. In May, PVH reported first-quarter revenue and earnings per share (EPS) above guidance and raised its full-year outlook.

Advertisement

First-quarter revenue was up four percent year-over-year at $2.0 billion (five percent on a constant currency basis). On an earnings basis, first-quarter EPS was $0.89, versus guidance of $0.73 to $0.75. On an adjusted basis, EPS was $1.56, compared with $1.50 in the first quarter of 2016.

Emanuel Chirico, the company’s chairman and chief executive officer, said that the company continues to benefit from strong business in its Calvin Klein and Tommy Hilfiger segments. In fact, PVH was able to surpass both sales and earnings guidance for the first quarter, “despite the volatile macroeconomic environment and the highly promotional retail market in the U.S.”

“As the global retail environment shifts, we continue to focus on adapting to change, while investing in our brands and operating platforms to capitalize on the opportunities for each of our businesses,” Chirico said.

For 2017, the company projects non-GAAP EPS basis will be in a range of $7.40 to $7.50, compared to $6.80 in 2016. 

Sources:

PVH Corp. WARN 2017,” State of Tennessee Department of Labor and Workforce Development, last accessed June 22, 2017.

PVH Corp. Reports 2017 First Quarter Revenue and EPS above Guidance and Raises Full Year Guidance,” PVH Corp, May 24, 2017.

Advertisement

Advertisement