American Clothing Industry Runs Into A River And Disputes Brand CK Mother Enterprise Is Slaughtered.

Despite the slight improvement in the North American business of its two core brands, Calvin Klein and Tommy Hilfiger, the performance of the Chinese market has been dragging down the international market. The US apparel giant PVH Corp. (NYSE:PVH) has slumped 11.44% after its earnings announcement on Wednesday.

PVH Corp. CEO Emanuel Chirico said in an interview with the media that compared with the discussion of more trade frictions, the slowdown in the growth of China and the US retail industry is the more noteworthy issue in the future. The weak consumption of tourists and the strong US dollar are jeopardizing the overall growth rate of the industry.

Emanuel Chirico's comments, combined with the US stock market crash on Wednesday, caused the global economic slowdown to crackdown on retail sales.

He said that the slowdown in growth came from industry performance rather than by the sweater exhibition.

Canada Goose Inc. (NYSE:GOOS) released on Wednesday, the Canadian geese slowed down due to a slowdown in its share price. The share price plunged 30.86% a day, Abercrombie & Fitch Co. (NYSE:ANF) slowed down by 26.47% due to the biggest brand Hollister sales growth, Capri Holdings Holdings (c) dropped 9.85% due to the investment in Versace and the downturn in the brand of the brand, and the 7.06% quarter of the underwear company, which had delivered the expected quarterly results, fell 7.06%.

PVH Corp. (NYSE:PVH) also failed to avoid a big drop on Wednesday. Over the past year, the stock price of the group, which has been questioned, dropped by 6.28% to close at $99.25, narrowing its growth so far this year to 6.78% below the standard 500 index and increasing the decline in the past 12 months to 36.17%, while the S & P 500 index has a 2.17% increase.

Commenting on the first quarter results, Emanuel Chirico said that although the global retail environment was full of challenges, it was satisfied with the company's performance. In the first quarter, EPS was located in the expected high-end, diversified business models, as well as the strength of brand, team and global platform, and continued to push the company's business forward.

Looking forward to the future, the chairman of the group, which is about to reduce the burden, said that the turbulent and challenging macroeconomic situation will continue to the two quarter. The retail industry in China and the United States is particularly weak. Besides, further exchange rate fluctuations are expected to bring an additional 0.10 yuan negative impact on group EPS. Therefore, we are cautious about the EPS expectations in the current financial year.

Last week, PVH Corp. unexpectedly announced the appointment of Stefan Larsson as the group president, in charge of the three major brands and all market operations of the group, to lighten the burden on Emanuel Chirico. In the group, Stefan Larsson is second only to Emanuel Chirico, and all brands and market presidents need to report to them.

Emanuel Chirico once again welcomed Stefan Larsson in its performance report on Wednesday, hoping that he can strengthen the management team and help the company push global growth.

Although Stefan Larsson has a very successful resume in the Hennes & Mauritz AB (HM-b.ST) Haines Morris and Gap Inc. (NYSE:GPS) GAPP, it has recently been abandoned by the Ralph Lauren group (Ralph), the Ralph Lauren group. After serving Ralph Lauren group for only 16 months, he was fired in the early hours because of disagreement with her.

As of the first quarter of May 5th, PVH Corp. income was 2 billion 356 million 300 thousand US dollars, an increase of 1.8% over the first quarter of fiscal year 2018, a 5.9% increase in fixed exchange rate, lower than the 2 billion 370 million US dollars expected in the market, net profit of 82 million US dollars or earnings per share of 1.08 US dollars, compared with the 179 million 400 thousand US dollar or earnings per share of 2.29 dollars in the 2018 fiscal year, adjusted by US dollar or earnings per share to US dollars, slightly better than the market expected US dollar, adjusted US $2 billion 314 million 600 thousand or earnings per share in the same period last year.

The group's largest brand, Tommy Hilfiger, earned $1 billion 52 million 100 thousand in the first quarter, an increase of 3.6% over the previous year, a 9.2% increase in fixed exchange rate and an improvement in the annulus growth rate.

During the period, North American and international fixed exchange rates recorded a growth of 3.4% and 12.3% respectively, of which North American same store sales recorded a 4% decline, while international same store sales benefited from Europe's strong growth by 9%.

Affected by the closure of Tommy Hilfiger New York Fifth Avenue flagship store, the first quarter of the brand EBIT dropped to 132 million US dollars to US $92 million 100 thousand, while adj EBIT increased from US $138 million 900 thousand to US $147 million, which resulted in a cost of about 55 million US dollars in the first quarter.

The Calvin Klein business ended in the first quarter, with revenues of $889 million 600 thousand barely maintained at the level of US $890 million in the same period last year, while the fixed exchange rate increased by 4%.

Although the North American market recorded a fixed exchange rate growth of 2.8%, the growth rate of 5% of international business was dragging down the overall performance. The US dollar calculation of international business also recorded a 2.1% decline. Although European business was strong, it was completely offset by China's weak performance and exchange rate effect.

During the same period, both North American and international sales fell by 5% and 4% respectively.

The previously announced restructuring plan had a negative impact on Calvin Klein in the first quarter of $70 million, including the non cash impairment of $30 million in leased assets, the severance payment of $19 million, the termination of 15 million dollars and other costs, the impairment of other non cash assets of $5 million, and the inventory reduction of $2 million in EBIT.

The restructuring affected the brand's EBIT in the first quarter from $108 million 600 thousand to $48 million 300 thousand, while adj EBIT increased from $108 million 600 thousand to $118 million 600 thousand.

PVH Corp. group's other Heritage Brands business revenue increased from $408 million 800 thousand to $414 million 600 thousand in the first quarter, while EBIT loss increased from $37 million 900 thousand to $45 million 300 thousand, while the loss of adj EBIT $39 million 100 thousand also increased.

In the first quarter, the total EBIT of PVH Corp. was recorded at $135 million 100 thousand, compared with $244 million 300 thousand in the 2018 fiscal year, adjusted 266 million 500 thousand US dollars, an increase of 6.1% over the same period in 2018.

After the release of the performance, industry analysts believe that the performance and attitude of PVH Corp. is a source of tension for the retail industry. The previous sweater show has made American retailers a frightened bird. The Nike Inc. (NYSE:NKE) Nike group, Under Armour Inc. (NYSE:UA) Andemar and so on have formed the Footwear Distributors & amp; NYSE:UA (USA) footwear wholesale and retail association, which has written to the White House at the end of the month, hoping to prevent the Donald Trump government's trade protectionism policy.

In early May, the US government increased tariffs on China's US $200 billion imports from 10% to 25%, and plans to impose 25% additional tariffs on US $300 billion, which includes the most core clothing and footwear products of American consumers.

At the beginning of this month, Ralph Lauren Corp. (NYSE:RL) Ralph Lauren group, Macy 's Inc. (NYSE:M) Messi department store and other representative enterprises of American clothing and department stores all indicated that if tariffs were imposed on the above products, only customs duties could be passed on to consumers. Some sub sales had said they would refuse to raise orders for American clothing brands to stop ordering, because they were worried that consumers would not be able to buy, resulting in inventory congestion.

In the performance outlook, PVH Corp. lowered its non-GAAP EPS from US $10.40 to US $10.30 in the current fiscal year, including the adverse exchange rate effect of US $1.40.

Wall Street investment bank also lowered its PVH Corp. rating or target price in the stock market crash and panic on Wednesday.

Piper Jaffray analyst Erinn Murphy said the target price of the company was reduced from 146 US dollars to more than 121 US dollars due to a large number of pressure from unfavorable exchange rates, retail weakness and tariffs.

Deutsche Bank, Deutsche Bank analyst Tiffany Kanaga, said that slightly expected 1Q performance and downgrading the whole year's EPS are quite different from those of the fourth quarter, which will further suppress the PVH Corp. share price in the case of a sharp sell-off in retail stocks.