Containing the coronavirus outbreak in the U.S. is more important to business than providing more business stimulus, according to the head of the Calvin Klein holding company.
"Where there hasn't been that much fiscal support, say Europe and Asia, the fact that the pandemic is much better under control there [means] our business is so much stronger there and we have been able to capture it this more and more in our sales, "said PVH CEO Manny Chirico in a" Closing Bell "appearance.
The comments came after PVH, which also includes apparel brands like Tommy Hilfiger, Van Heusen and Arrow, performed better-than-feared results for the quarter ended August 2nd. Revenue was $ 1.5 billion, a 33% year-over-year decline. A year ago, the company posted an adjusted loss of 13 cents per share, compared to $ 2.10 per share a year ago.
PVH was down 43% for the previous quarter that ended May 3.
The retail and apparel industries have felt the brunt of the coronavirus lockdown and ongoing impact, but PVH reported better than expected results in each of its markets and channels, including a 50% increase in sales across its digital channels.
Chirico reported encouraging trends in the markets in China and Europe, but ongoing headwinds continue to plague the North American market as the coronavirus continues to spread in the US. The country leads the world in coronavirus cases, with at least 6.1 million contracting the virus, which nearly brought world trade to a standstill. Daily cases in the US continue to hover around 40,000, compared to a high of 75,000 in July, but are still in an elevated range.
Russia and India are the only European and Asian nations with more than 1 million cases, according to data from Johns Hopkins University. The world's cases are approaching 27 million.
Washington, DC officials remain concerned about a new stimulus package being drawn up to relieve businesses and individuals through a health crisis and uncertain future. House spokeswoman Nancy Pelosi gave a disheartening description of the ongoing discussions late Tuesday, saying that Democrats and the Trump administration "have profound differences in understanding the severity of the gravity of America's working families".
However, Chirico is less concerned about the status of stimulus discussions than it is about managing the virus outbreak in the US.
"I think it is really pandemic control that is going to be the bigger problem for us in the US, rather than just providing more stimulus," he said. "But considering where we are, I have no doubts the importance of maintaining this incentive, and hopefully that can get through in the next few weeks."
PVH shares rose 3% in the aftermarket after the company released its fiscal second quarter 2020 results. The stock is down 43% since the year-to-date price of $ 59.51 on Wednesday.