SEGMENT DATA (Tables)

6 Months Ended

Aug. 02, 2020

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The Company’s revenue by segment was as follows:


	Thirteen Weeks Ended									Twenty-Six Weeks Ended
(In millions)	8/2/20		⁽¹⁾⁽²⁾	8/4/19		⁽¹⁾	8/2/20		⁽¹⁾⁽²⁾	8/4/19		⁽¹⁾
Revenue – Tommy Hilfiger North America
Net sales	$	194.1		$	390.1		$	355.2		$	737.9
Royalty revenue	7.1			18.1			23.9			36.8
Advertising and other revenue	0.8			4.8			4.2			10.1
Total	202.0			413.0			383.3			784.8

Revenue – Tommy Hilfiger International
Net sales	590.2			679.0			1,044.1			1,341.7
Royalty revenue	8.2			12.4			17.0			25.6
Advertising and other revenue	3.3			5.8			5.8			10.2
Total	601.7			697.2			1,066.9			1,377.5

Revenue – Calvin Klein North America
Net sales	180.7			366.1			344.6			744.5
Royalty revenue	13.7			31.5			38.8			64.9
Advertising and other revenue	5.3			11.2			12.4			23.4
Total	199.7			408.8			395.8			832.8

Revenue – Calvin Klein International
Net sales	381.6			440.4			643.9			881.5
Royalty revenue	6.4			17.9			20.6			35.8
Advertising and other revenue	2.8			6.2			6.8			12.8
Total	390.8			464.5			671.3			930.1

Revenue – Heritage Brands Wholesale
Net sales	150.5			304.4			345.8			654.7
Royalty revenue	1.4			5.0			4.8			10.1
Advertising and other revenue	0.2			1.2			1.0			2.2
Total	152.1			310.6			351.6			667.0

Revenue – Heritage Brands Retail
Net sales	34.1			69.0			54.8			126.0
Royalty revenue	0.2			0.9			0.9			2.0
Advertising and other revenue	0.1			0.2			0.1			0.3
Total	34.4			70.1			55.8			128.3

Total Revenue
Net sales	1,531.2			2,249.0			2,788.4			4,486.3
Royalty revenue	37.0			85.8			106.0			175.2
Advertising and other revenue	12.5			29.4			30.3			59.0
Total	$	1,580.7		$	2,364.2		$	2,924.7		$	4,720.5

⁽¹⁾Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.

⁽²⁾Revenue was significantly negatively impacted by the COVID-19 pandemic, including as a result of temporary store closures and reduced traffic and consumer spending trends. The Company’s wholesale customers and licensing partners also experienced significant business disruptions as a result of the pandemic, resulting in a decrease in the Company’s revenue from these channels.

The Company’s revenue by distribution channel was as follows:


	Thirteen Weeks Ended						Twenty-Six Weeks Ended
(In millions)	8/2/20		8/4/19		8/2/20		8/4/19
Wholesale net sales	$	685.6	$	1,137.8	$	1,493.8	$	2,498.5
Retail net sales	845.6		1,111.2		1,294.6		1,987.8
Net sales	1,531.2		2,249.0		2,788.4		4,486.3

Royalty revenue	37.0		85.8		106.0		175.2
Advertising and other revenue	12.5		29.4		30.3		59.0
Total	$	1,580.7	$	2,364.2	$	2,924.7	$	4,720.5

The Company’s (loss) income before interest and taxes by segment was as follows:


	Thirteen Weeks Ended									Twenty-Six Weeks Ended
(In millions)	8/2/20		⁽¹⁾⁽²⁾	8/4/19		⁽¹⁾	8/2/20		⁽¹⁾⁽²⁾	8/4/19		⁽¹⁾
(Loss) Income before interest and taxes – Tommy Hilfiger North America	$	(32.2)	⁽⁴⁾	$	48.3	⁽¹⁰⁾	$	(82.2)	⁽⁴⁾⁽⁶⁾	$	33.6	^(10)(15)

Income before interest and taxes – Tommy Hilfiger International	83.0			99.8		⁽¹¹⁾	44.2		⁽⁶⁾	206.6		⁽¹¹⁾

(Loss) Income before interest and taxes – Calvin Klein North America	(21.6)		⁽⁴⁾	11.3		^(10)(13)	(349.4)		^(4)(6)(7)	12.7		^(10)(14)

Income (Loss) before interest and taxes – Calvin Klein International	45.0			6.6		^(10)(11)(13)	(388.8)		⁽⁶⁾⁽⁷⁾	53.5		^(10)(11)(14)

(Loss) Income before interest and taxes – Heritage Brands Wholesale	(6.7)		⁽⁴⁾	14.0		⁽¹¹⁾	(294.6)		^(4)(7)(8)	53.0		⁽¹¹⁾

(Loss) Income before interest and taxes – Heritage Brands Retail	(25.4)		⁽⁵⁾	3.1			(48.4)		⁽⁵⁾⁽⁶⁾	4.1

(Loss) Income before interest and taxes – Corporate ⁽³⁾	(43.8)		⁽⁴⁾	66.7		^(11)(12)	(100.9)		⁽⁴⁾⁽⁹⁾	21.4		^(11)(12)

(Loss) Income before interest and taxes	$	(1.7)		$	249.8		$	(1,220.1)		$	384.9

⁽¹⁾(Loss) Income before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.

⁽²⁾ (Loss) Income before interest and taxes was significantly negatively impacted by the COVID-19 pandemic, including as a result of the unprecedented decline in revenue noted above. As well, (loss) income before interest and taxes for the twenty-six weeks ended August 2, 2020 was significantly adversely impacted by $961.8 million of noncash impairment charges related to goodwill, tradenames, other intangible assets, store assets and an equity method investment resulting from the significant adverse impacts of the COVID-19 on the Company’s business.

⁽³⁾Includes corporate expenses not allocated to any reportable segments and the Company’s proportionate share of the net income or loss of its investments in Gazal (prior to the Australia acquisition closing) and Karl Lagerfeld (prior to its impairment in the first quarter of 2020) and the results of PVH Ethiopia. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion of the Company’s investment in Karl Lagerfeld. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, and actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans (which are generally recorded in the fourth quarter).

⁽⁴⁾ Loss before interest and taxes for the thirteen and twenty-six weeks ended August 2, 2020 included costs of $38.4 million incurred in connection with the North America workforce reduction, consisting of severance and special termination benefits. Such costs were included in the Company’s segments as follows: $11.2 million in Heritage Brands Wholesale, $10.9 million in Tommy Hilfiger North America, $10.5 million in Calvin Klein North America, and $5.8 million in corporate expenses not allocated to any reportable segments. Please see Note 16, “Exit Activity Costs,” for further discussion.

⁽⁵⁾ Loss before interest and taxes for the thirteen and twenty-six weeks ended August 2, 2020 included costs of $12.3 million in connection with the planned exit of the Heritage Brands Retail business, consisting of noncash asset impairments, severance and other costs. Please see Note 16, “Exit Activity Costs,” for further discussion.

⁽⁶⁾ (Loss) Income before interest and taxes for the twenty-six weeks ended August 2, 2020 included noncash impairment charges of $16.0 million related to the Company’s store assets. The $16.0 million of impairment charges were included in the Company’s segments as follows: $4.1 million in Tommy Hilfiger North America, $3.1 million in Tommy Hilfiger International, $3.2 million in Calvin Klein North America, $1.8 million in Calvin Klein International and $3.8 million in Heritage Brands Retail. Please see Note 12, “Fair Value Measurements,” for further discussion.

⁽⁷⁾ Loss before interest and taxes for the twenty-six weeks ended August 2, 2020 included noncash impairment charges of $933.5 million, primarily related to goodwill, tradenames and other intangible assets. The $933.5 million of impairment charges were included in the Company’s segments as follows: $289.9 million in Calvin Klein North America, $394.0 million in Calvin Klein International and $249.6 million in Heritage Brands Wholesale. Please see Note 7, “Goodwill and Other Intangible Assets,” for further discussion.

⁽⁸⁾ Loss before interest and taxes for the twenty-six weeks ended August 2, 2020 included a net noncash loss of $3.1 million in connection with the sale of the Speedo North America business in April 2020. Please see Note 4, “Acquisitions and Divestitures,” for further discussion.

⁽⁹⁾ Loss before interest and taxes for the twenty-six weeks ended August 2, 2020 included a noncash impairment charge of $12.3 million related to the Company’s equity method investment in Karl Lagerfeld. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion.

⁽¹⁰⁾ Income before interest and taxes for the thirteen and twenty-six weeks ended August 4, 2019 included costs of $59.8 million in connection with agreements the Company entered into in the second quarter of 2019 to terminate early the licenses for the global Calvin Klein and Tommy Hilfiger North America socks and hosiery businesses in order to consolidate the socks and hosiery business for all Company brands in North America in a newly formed joint venture and to bring in-house the international Calvin Klein socks and hosiery businesses. Such costs were included in the Company’s segments as follows: $7.5 million in Tommy Hilfiger North America, $25.5 million in Calvin Klein North America and $26.8 million in Calvin Klein International.

⁽¹¹⁾ Income before interest and taxes for the thirteen and twenty-six weeks ended August 4, 2019 included costs of $4.8 million in connection with the Australia and TH CSAP acquisitions, primarily consisting of noncash valuation adjustments, and one-time costs of $2.1 million recorded on the Company’s equity investments in Gazal and PVH Australia prior to the Australia acquisition closing. Such costs were included in the Company’s segments as follows: $2.5 million in Tommy Hilfiger International, $1.5 million in Calvin Klein International, $0.4 million in Heritage Brands Wholesale and $2.5 million in corporate expenses not allocated to any reportable segments. Please see Note 4, “Acquisitions and Divestitures,” for further discussion.

⁽¹²⁾ Income before interest and taxes for the thirteen and twenty-six weeks ended August 4, 2019 included a noncash gain of $113.1 million to write up the Company’s equity investments in Gazal and PVH Australia to fair value in connection with the Australia acquisition. Please see Note 4, “Acquisitions and Divestitures,” for further discussion.

⁽¹³⁾ Income before interest and taxes for the thirteen weeks ended August 4, 2019 included costs of $29.1 million incurred in connection with the Calvin Klein restructuring, primarily consisting of inventory markdowns and contract termination and other costs. Such costs were included in the Company’s segments as follows: $14.2 million in Calvin Klein North America and $14.9 million in Calvin Klein International.

⁽¹⁴⁾ Income before interest and taxes for the twenty-six weeks ended August 4, 2019 included costs of $99.4 million incurred in connection with the Calvin Klein restructuring, primarily consisting of lease asset impairments and severance. Such costs

were included in the Company’s segments as follows: $65.1 million in Calvin Klein North America and $34.3 million in Calvin Klein International. Please see Note 12, “Fair Value Measurements,” for further discussion of the lease asset impairments.

⁽¹⁵⁾ Income before interest and taxes for the twenty-six weeks ended August 4, 2019 included costs of $54.9 million incurred in connection with the TH U.S. store closures, primarily consisting of noncash lease asset impairments. Please see Note 12, “Fair Value Measurements,” for further discussion.