Macy’s rallies after Calvin Klein owner CEO says it will survive
The chief executive officer of the company that owns the Tommy Hilfiger and Calvin Klein brands expressed confidence that Macy’s Inc. will survive the retail fallout from the coronavirus outbreak.
“I think Macy’s, Jeff Gennette and his team is doing what’s necessary to weather the storm,” PVH Corp. CEO Manny Chirico, said in a CNBC interview on Thursday. “I’m not going to speak for them, but clearly they are going to be a survivor when this is all over.”
Shares for the retailer rose as much as 17% to $5.19 on Thursday. The stock lost 63% in March as the outbreak forced widespread retail closures across the U.S.
Macy’s is important to PVH, with the department store chain providing 7% of its revenue, according to data compiled by Bloomberg. With all of Macy’s brick-and-mortar stores temporarily closed, this also halts in-store sales for Tommy Hilfiger and Calvin Klein. That partnership is probably top of mind for Chirico and his executive team right now, said Simeon Siegel, retail analyst at BMO Capital Markets.
“Very few companies in retail operate in a vacuum,” Siegel said. “A big brand that depends on department stores can acknowledge, and needs to acknowledge, that there is going to be an accelerated shift away from the mall and away from brick and mortar, but the reality is that they also drive a significant portion of their business through those channels that they can’t just throw under the bus.”