The owner of the Calvin Klein and Tommy Hilfiger brands announced job cuts and scaled back its full-year outlook while saying that high inflation is hurting spending on discretionary products.

PVH Corp. plans “to reduce people costs in its global offices by approximately 10 percent” by the end of next year to improve efficiency, the company said Tuesday in a statement. The apparel company now expects revenue to decline this year, compared with a previous projection for a gain.

The shares declined 4.5 percent at 4:55 p.m. in New York after the close of regular trading.

Consumer companies are lowering their expectations as decades-high inflation eats into consumer demand, especially for discretionary items such as apparel. Retailers from Kohl’s Corp. to Nordstrom Inc. have revised guidance downward in recent weeks.

In addition to lower demand, PVH said it’s revising its 2022 outlook based on “a more promotional environment, particularly in the North America wholesale business.” Apparel companies are struggling with a glut of inventory that was built up during the pandemic as consumer priorities shift, which is forcing them to sell off merchandise at lower prices.

By Jonathan Roeder

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