China launches probe into Calvin Klein parent over Xinjiang supply chain ‘disruptions’

Published On Sep 24, 2024, 5:38 AM

PVH Group, the parent company of Calvin Klein, is under investigation by China's Ministry of Commerce for alleged business disruptions in its supply chain connected to Xinjiang. The ministry claims that PVH targeted Xinjiang suppliers and caused disruptions in normal transactions with Chinese businesses. This investigation is part of a broader initiative that follows the U.S.'s actions towards various companies and is representative of growing tensions between U.S. and Chinese trade policies. The impact on PVH's international sales, particularly in Asia-Pacific, has already been felt, with revenues declining in recent quarters.

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Negative

The investigation could negatively impact PVH's operations in China and its overall revenue, particularly since international sales were already struggling. This could lead to further revenue declines and investor sentiment may turn cautious about the stock.

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