PVH is lifting US warehouse utilization from just over 50% to a targeted 85–90%

PVH, owner of Calvin Klein and Tommy Hilfiger, ran its US warehouses at just over half of capacity. In April 2025, CFO Zac Coughlin said on the Q4 2024 earnings call that the company would consolidate its facility footprint into two warehouses and insource its e-commerce distribution operations, lifting capacity utilization to about 85–90% and streamlining logistics.

The plan closes the Jonesville, North Carolina facility and shifts operations to PVH's two warehouse and distribution centers in Georgia, letting it 'take full advantage of the technical capabilities in our Georgia network and continue to respond to our consumers with speed', the company told Supply Chain Dive. A January WARN Act notice listed 317 Jonesville layoffs — material handlers and equipment operators — slated between Oct. 3 and Dec. 31.

The consolidation is one piece of PVH's broader goal to simplify its operating model and raise company-wide efficiencies. Other aspects include consolidating its technology stack into a single platform and selling a warehouse and distribution center, a transaction completed in fiscal 2024. Coughlin said the groundwork was laid: savings already realized in 2024 would be built on with 'significant cost savings' in 2025, showing up more powerfully as the year progressed.

Utilization targeted at 85–90%, up from just over 50%, with significantly decreased North America distribution costs and savings building through 2025.

Running US warehouses at just above 50% utilization meant paying for unused capacity and inflated North America distribution expenses.

Consolidating into two Georgia facilities concentrates volume where PVH's warehouse technical capabilities already sit.

Insourcing e-commerce distribution gives PVH more control over the shipping process, against the upfront-cost flexibility third-party logistics offers.

The move supports a company-wide simplification of the operating model, alongside collapsing the technology stack onto a single platform.

Half-empty warehouses are a hidden tax. Consolidation and insourcing only pay when the utilization target is explicit — here 85–90% — so savings have a number to answer to.

The Jonesville layoffs were scheduled for late 2025 under the WARN notice as operations shifted to Georgia. The company said it expected 'significantly decreased North America distribution expenses' and cost savings building through 2025; no realized savings figures were reported yet.