They enjoyed a positive 2019. They have no delusions about 2020. PVH (Tommy Hilfiger, Calvin Klein and Heritage Brands) and SMCP (Sandro, Maje, Claudie Pierlot and De Fursac) groups have been going through a rewarding trend until the pandemic outbreak. The US group, whose profits were decreasing at the end of the last quarter, in the financial year ended on February 2nd, do not venture any business forecast. Conversely, the French group expect sales to drop by 20% from January to March.
PVH donated one million dollars to support the struggle against Covid-19. At the end of the last quarter of the financial year, their revenues were increasing by 5% (they went up by 6% at fixed rates of exchange). Yet, profits before tax turned out to be in the red, as they lost 95.7 million euros because of the pandemic. Throughout 2019, revenues amounted to 9.91 billion dollars, that is, +3% at current rates of exchange and +5% at fixed rates of exchange. Net profits reached 415.1 million dollars, therefore dropping by 44.2%. Let us look at sales, carried out by each brand at fixed rates of exchange: Tommy Hilfiger +11%, Calvin Klein +1%, Heritage Brands -3%.
Emanuel Chirico, Chief Executive Officer of PVH, announced a plan against Covid-19: “I do believe we may well rely on a sound financial position to face the epidemic alongside these unprecedented volatility days. Traditionally, our financial statements have been one of our main strengths: we have over one billion dollars cash and loans available”. In 2020, the pandemic is remarkably affecting the company activity, deal results, financial assets and cash flow. For the time being, our company cannot predict the impact of the virus outbreak across the whole of 2020”.
SMCP revenues were increasing, at the end of 2019, thanks to accessories. The company, controlled by Chinese Shandong Ruyi, opened again almost all of their selling stores in China, Korea and Australia, though attendance of buyers visiting department stores is still “extremely limited”. Besides that, online sales drove positive results during 2020 first quarter. Nevertheless, during the same period SMCP expect sales to drop: downturn will be slightly more than 20%.
A positive 2019
In 2019, SMCP revenues reached 13 billion euros, that is, +11.3% at current rates of exchange and +8.7% at fixed rates of exchange. Net profits increased by 14.1%, therefore reaching 59.4 million euros. The company did not make public the financial statements of each brand. Yet, as they announced, “their accessories enjoyed a boost: sales went up by 18.4%”.
Picture taken from calvinklein.it