Under Armour
Under Armour extended its store closures until further notice and said on April 12th the retailer will temporarily lay off all associates that work in its U.S. full price and outlet stores, and approximately 600 employees that work at its U.S.-based distribution centers. The company will cover full health benefits for benefit-eligible workers for around two months during this temporary layoff period. It will also begin paying premium bonuses to its distribution center employees continuing to work during the crisis.
“In these unprecedented and challenging times, the majority of stores where Under Armour is available remain closed, contributing to a significant decline in revenue,” said Under Armour president and CEO Patrik Frisk. “While we’re thankful for the meaningful balance sheet improvements we’ve driven over the past two years and we are seeing some early signs of recovery in our APAC region, this unanticipated shock to our business has been acute, forcing us to make difficult decisions to ensure that Under Armour is positioned to participate in the eventual recovery of demand.”
In addition, the company’s board will be reducing its compensation by 25% and all of the company’s EVP titles and above will be taking a 25% salary cut through the duration of the crisis.
Guess
Guess is extending its stores closures until further notice and furloughing all of U.S. and Canada store associates.
About half of its U.S. and Canada corporate associates, and most of the associates at its distribution centers in the U.S. and Canada, are also being furloughed.
It’s also implementing temporary tiered salary reductions for all management-level corporate employees in the U.S., ranging from 15% at lower levels to 70% for CEO Carlos Alberini and chief creative officer Paul Marciano.
The company will fund health insurance premiums during the furlough for all eligible employees impacted by these measures.
Victoria’s Secret
L Brands, the parent company to the lingerie retailer as well as Bath & Body Works, is extending store closures until further notice.
Most stores associates are being furloughed, as are those who aren’t working to support its e-commerce business or who cannot work from home.
Associates will continue to receive pay and benefits through April 4, which is one week longer than originally announced, and all furloughed associates will continue to receive existing healthcare benefits.
The company is reducing base compensation by 20% for senior VPs and above, and while salaries for chairman and CEO Leslie H. Wexner and other members of the board of directors have been suspended.
Men’s Warehouse
In better news, parent company Tailored Brands is bringing back previously furloughed employees to make 50,000 masks over the next few weeks.