Tommy Hilfiger parent PVH to cut people costs by 10%, book $50 million in severance charges

PVH Corp.
PVH,
+3.93%,
the parent of brands including Tommy Hilfiger and Calvin Klein, said Tuesday it’s planning to reduce people costs at its global offices by about 10% by the end of 2023 as it works to cut costs and invest in digital, supply chain and consumer engagement. The company said in a regulatory filing it is seeking to generate cost savings more more than $100 million, net of investment. PVH already booked pretax costs of $20 million in 2022 to cover severance related to initial actions, and now expects to book another $50 million in severance charges, the bulk of it in the second quarter. The charges were not included in its previous guidance, said the filing. “In the third quarter of 2023, the company expects to take additional actions under these plans for which severance costs cannot be estimated at this time. The company expects substantially all actions under these plans to be completed by the end of the third quarter of 2023,” said the filing. The stock was up 1% premarket and has gained 23% in the year to date, while the S&P 500
SPX,
+0.24%
has gained 15%.