PVH Corp. ( PVH Quick Quote PVH - Free Report) has been gaining big time from an impressive performance in the digital platform due to increased shift to online shopping amid the pandemic. Notably, the company’s e-commerce sales improved more than 50% year over year during second-quarter fiscal 2020, driven by strong online sales growth in all regions, even after the reopening of stores. Also, solid traffic and higher conversions contributed to digital growth. Further, Tmall witnessed a solid performance on the back of new live stream events, driven by robust traffic and a rise in customers. This led to strong digital sales growth in Asia to the tune of 75% which outperformed the company’s overall online sales. Apart from these, digital sales at Calvin and Tommy.com grew at triple digits during the fiscal second quarter. Management envisions online sales to represent 20% of total sales over the next few years. In fact, the e-commerce business continues to retain its momentum in the third quarter to date. Other retailers benefiting from the sudden surge in online sales include Hibbett Sports ( HIBB Quick Quote HIBB - Free Report) , Gap ( GPS Quick Quote GPS - Free Report) and American Eagle ( AEO Quick Quote AEO - Free Report) . Notably, Hibbett’s online sales advanced 212.2% year over year in the fiscal second quarter on the back of a rise in new customers. Also, Gap’s e-commerce channel recorded 95% growth during the fiscal second quarter. Moreover, American Eagle witnessed consolidated digital sales growth of 74%in second-quarter fiscal 2020, driven by a rise in new customers, solid traffic and higher conversions. PVH Corp has been gaining from strength in Calvin Klein and Tommy Hilfiger brands. Going forward, management’s optimism in the underlying power of these brands makes it poised for long-term growth. Apart from these, majority of PVH Corp’s stores have reopened, which is likely to reflect in its third-quarter performance. These endeavors are likely to aid the company’s top line in the near term. However, significant disruption stemming from the COVID-19 pandemic is likely to prevail. This is expected to continue causing significant declines in shipments, which in turn hurt wholesale revenues. Third-quarter to-date sales have declined 15% in the wholesale channel. Moreover, reduced store hours and lower occupancy levels have somewhat affected the initial growth in sales volume in the fiscal third quarter. Also, it expects the top and bottom lines in the second half of fiscal 2020 to be hurt by COVID-19 impacts, with a revenue decline of nearly 25% year over year. Biggest Tech Breakthrough in a Generation
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