Skip to main content

Adidas, Calvin Klein Owner Suspend Russian Retail

Another batch of global brands including Adidas, PVH Corp. and Estée Lauder are calling it quits in Russia for the time being in the wake of the nation’s invasion of Ukraine.

Already having suspended its partnership with the Russian Football Union after the conflict began, Adidas is joining rivals Nike and Puma in suspending its retail operations in Russia until further notice. The German athleticwear and footwear giant already has donated 1 million euros ($1.1 million) to refugee and children’s charities to provide basic goods and support to evacuated families. Adidas also donated clothes to Global Aid Network for people in need in Ukraine, Poland, Moldova and Hungary.

“As a company, we strongly condemn any form of violence and stand in solidarity with those calling for peace,” an Adidas spokesperson said Tuesday.

PVH Corp. is also stepping up to the plate after initially shuttering e-commerce operations in Russia on Feb. 28. The Tommy Hilfiger and Calvin Klein owner temporarily closed its stores and paused all commercial activities in Russia and Belarus on Monday.

In a regulatory filing, PVH said virtually all of the company’s business partners in Ukraine have closed their stores. PVH itself has no direct operations in Ukraine.

The PVH Foundation is donating to the Red Cross and other relief organizations operating the region. The apparel seller, which also owns brands including Warner’s, Olga and True & Co., says its associates are donating to organizations in Europe through GlobalGiving’s Ukraine Crisis Relief Fund, where their donations are double matched.

Related Stories

“Throughout the last 10 days, PVH’s first concern has been for all people suffering due to the war in Ukraine and escalating humanitarian crisis,” the company said in a statement. “We remain focused on and committed to providing all impacted associates and their loved ones with comprehensive financial, operational and moral support. We also remain in close contact with our business partners in Ukraine who are highly focused on supporting their employees.

And cosmetics company Estée Lauder is closing all stores and e-commerce sites that it owns and operates in Russia and says it will stop shipping products to retailers in the country. The cosmetics giant had last week suspended business investments and initiatives in the country, and its charitable foundation already committed $1 million in support of relief efforts in Ukraine. The brand will be donating products to those displaced and in need.

In the case of Adidas and PVH, all employees will continue to receive their salary and benefits while stores remain closed.

The three companies derive limited revenue from the Russian market.

As of February 2021, the Commonwealth of Independent States (CIS), which includes Russia and 11 other republics that were formerly part of the Soviet Union, including Ukraine and Belarus, only netted 2.9 percent of sales for Adidas. The market saw flat sales growth in the 2020 period.

Approximately 2 percent of PVH’s total revenue comes from Russia, Belarus and Ukraine, the company said in its March 7 filing. Estee Lauder generates roughly 2.7 percent of its revenue from Russia, according to a list compiled by Yale University professor Jeffrey Sonnenfeld and his research team at the Ivy League school’s Chief Executive Leadership Institute.

This latest wave follows in the footsteps of more than 280 major global brands including fashion icons such as Levi’s, LVMH, Asos, Boohoo, H&M, Inditex, Ikea, JD Sports, Chanel, Hermès, Moncler, Prada and Richemont—all of whom have announced they have ceased sales in Russia in protest of the war. Off-price retailer TJX is even selling its minority stake in Russian retailer Familia, which it originally acquired in late 2019. Ferragamo, however, has yet to stop selling in Russia, where it generates about 1 percent, or $10 million, of its revenue, according to the Yale database.

Amazon has yet to pull its full operations from the Vladimir Putin-led republic, but the e-commerce giant has deactivated some Russian sellers, according to the Yale list, to shield them from late penalties and prevent customers from having delayed shipments. The tech titan is contributing $5 million to various humanitarian groups including UNICEF, the World Food Program and the Red Cross.

Similarly, eBay has suspended its Global Shipping Program service into Ukraine and Russia, as well as its international standard delivery service into Ukraine.

Major ocean carriers including AP Moller Maersk, Mediterranean Sea Co. (MSC), Ocean Network Express (ONE), CMA CGM, Hapag Lloyd and Cosco Shipping all suspended new bookings to and from Ukraine and Russia as a precautionary measure in response to sanctions, import controls at the borders and rising fuel and insurance costs. Some of the world’s biggest consumer companies also pulled the plug on Russia on Tuesday, as Coca-Cola, Starbucks and McDonald’s announced a freeze on business in the warring state.