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SEGMENT DATA
 6 Months Ended
Aug. 01, 2021
Notes to Financial Statements [Abstract]  
SEGMENT DATA SEGMENT DATA
The Company manages its operations through its operating divisions, which are presented as six reportable segments: (i) Tommy Hilfiger North America; (ii) Tommy Hilfiger International; (iii) Calvin Klein North America; (iv) Calvin Klein International; (v) Heritage Brands Wholesale; and (vi) Heritage Brands Retail. The Company announced in July 2020 a plan to exit its Heritage Brands Retail business, which was substantially completed in the second quarter of 2021. The Company’s Heritage Brands Retail segment has ceased operations following the substantial completion of the Company’s exit from the Heritage Brands Retail business in the second quarter of 2021.

Tommy Hilfiger North America Segment - This segment consists of the Company’s Tommy Hilfiger North America division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale in the United States and Canada, primarily to department stores, warehouse clubs, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and a digital commerce site in the United States, which sells TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad range of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated affiliate in Mexico relating to the affiliate’s Tommy Hilfiger business and the Company’s proportionate share of the net income or loss of its investment in its unconsolidated PVH Legwear LLC (“PVH Legwear”) affiliate relating to the affiliate’s Tommy Hilfiger business.

Tommy Hilfiger International Segment - This segment consists of the Company’s Tommy Hilfiger International division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale principally in Europe, Asia and Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia and Australia, which sell TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad range of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated Tommy Hilfiger affiliate in Brazil and the Company’s proportionate share of the net income or loss of its investment in its unconsolidated affiliate in India relating to the affiliate’s Tommy Hilfiger business.

Calvin Klein North America Segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale in the United States and Canada, primarily to warehouse clubs, department and specialty stores, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and a digital commerce site in the United States, which sells Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Calvin Klein brand names for a broad range of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated affiliate in Mexico relating to the affiliate’s Calvin Klein business and the Company’s proportionate share of the net income or loss of its investment in its unconsolidated PVH Legwear affiliate relating to the affiliate’s Calvin Klein business.

Calvin Klein International Segment - This segment consists of the Company’s Calvin Klein International division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale principally in Europe, Asia, Brazil and Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia, Brazil and Australia, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Calvin Klein brand names for a broad range of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated affiliate in India relating to the affiliate’s Calvin Klein business.

Heritage Brands Wholesale Segment - This segment consists of the Company’s Heritage Brands Wholesale division. This segment derives revenue primarily from the marketing to department, chain and specialty stores, warehouse clubs, mass market, and off-price retailers (in stores and online), as well as pure play digital commerce retailers in North America of (i) men’s dress shirts and neckwear under various owned and licensed brand names; (ii) men’s sportswear, bottoms and outerwear principally under the Van Heusen, IZOD and ARROW trademarks until August 2, 2021 (the first day of the third quarter of 2021), when the
Company completed the Heritage Brands transaction; (iii) women’s intimate apparel under the Warner’s, Olga and True&Co. brands; and (iv) swimwear and swim-related products and accessories under the Speedo trademark until April 6, 2020, when the Company completed the sale of its Speedo North America business to Pentland. Please see Note 5, “Assets Held For Sale,” for further discussion of the Heritage Brands transaction and Note 4, “Acquisitions and Divestitures,” for further discussion of the Speedo transaction. This segment also derives revenue from Company operated digital commerce sites in the United States for Van Heusen and IZOD, which will cease operations during the third quarter of 2021 in connection with the Heritage Brands transaction. In addition, this segment derives revenue from the Heritage Brands business in Australia. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated affiliate in Mexico relating to the affiliate’s business under certain of the heritage brands trademarks, and the Company’s proportionate share of the net income or loss of its investment in its unconsolidated PVH Legwear affiliate relating to the affiliate’s business under certain of the heritage brands trademarks.

Heritage Brands Retail Segment - This segment consists of the Company’s Heritage Brands Retail division. This segment derived revenue principally from operating retail stores, primarily located in outlet centers throughout the United States and Canada, which primarily sell apparel, accessories and related products. The Company announced in July 2020 a plan to exit its Heritage Brands Retail business, which was substantially completed in the second quarter of 2021. The Company’s Heritage Brands Retail segment has ceased operations following the substantial completion of the Company’s exit from the Heritage Brands Retail business in the second quarter of 2021. Please see Note 17, “Exit Activity Costs,” for further discussion.
The Company’s revenue by segment was as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
(In millions)8/1/21
(1)(2)
8/2/20
(1)(2)
8/1/21
(1)(2)
8/2/20
(1)(2)
Revenue – Tommy Hilfiger North America
Net sales$273.9 $194.1 $478.6 $355.2 
Royalty revenue15.4 7.1 33.0 23.9 
Advertising and other revenue3.6 0.8 8.1 4.2 
Total292.9 202.0 519.7 383.3 
Revenue – Tommy Hilfiger International
Net sales826.3 590.2 1,636.3 1,044.1 
Royalty revenue13.1 8.2 26.0 17.0 
Advertising and other revenue3.2 3.3 7.2 5.8 
Total842.6 601.7 1,669.5 1,066.9 
Revenue – Calvin Klein North America
Net sales311.0 180.7 517.0 344.6 
Royalty revenue28.6 13.7 60.3 38.8 
Advertising and other revenue9.5 5.3 20.0 12.4 
Total349.1 199.7 597.3 395.8 
Revenue – Calvin Klein International
Net sales560.6 381.6 1,085.6 643.9 
Royalty revenue11.0 6.4 21.5 20.6 
Advertising and other revenue1.7 2.8 3.2 6.8 
Total573.3 390.8 1,110.3 671.3 
Revenue – Heritage Brands Wholesale
Net sales217.7 150.5 408.9 345.8 
Royalty revenue4.8 1.4 9.8 4.8 
Advertising and other revenue0.8 0.2 1.4 1.0 
Total223.3 152.1 420.1 351.6 
Revenue – Heritage Brands Retail
Net sales32.0 34.1 75.6 54.8 
Royalty revenue— 0.2 — 0.9 
Advertising and other revenue— 0.1 — 0.1 
Total32.0 34.4 75.6 55.8 
Total Revenue
Net sales2,221.5 1,531.2 4,202.0 2,788.4 
Royalty revenue72.9 37.0 150.6 106.0 
Advertising and other revenue18.8 12.5 39.9 30.3 
Total$2,313.2 $1,580.7 $4,392.5 $2,924.7 

(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 in the thirteen and twenty-six weeks ended August 2, 2020 was significantly negatively impacted by the COVID-19 pandemic, including as a result of temporary stores 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. Revenue in the thirteen and twenty-six weeks ended August 1, 2021 continued to be negatively impacted by the pandemic, although to a much a lesser extent than in the prior year periods.

The Company’s revenue by distribution channel was as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
(In millions)8/1/218/2/208/1/218/2/20
Wholesale net sales$1,211.3 $685.6 $2,447.9 $1,493.8 
Owned and operated retail stores828.1 663.2 1,394.6 1,005.3 
Owned and operated digital commerce sites182.1 182.4 359.5 289.3 
Retail net sales1,010.2 845.6 1,754.1 1,294.6 
Net sales2,221.5 1,531.2 4,202.0 2,788.4 
Royalty revenue72.9 37.0 150.6 106.0 
Advertising and other revenue18.8 12.5 39.9 30.3 
Total$2,313.2 $1,580.7 $4,392.5 $2,924.7 

The Company’s income (loss) before interest and taxes by segment was as follows:
Thirteen Weeks EndedTwenty-Six Weeks Ended
(In millions)8/1/21
(1)
8/2/20
(1)(2)
8/1/21
(1)
8/2/20
(1)(2)
Income (loss) before interest and taxes – Tommy Hilfiger North America$24.7 $(32.2)
(6)
$19.6 
(7)
$(82.2)
(6)(8)
Income before interest and taxes – Tommy Hilfiger International164.8 
(4)
83.0 332.1 
(7)
44.2 
(8)
Income (loss) before interest and taxes – Calvin Klein North America39.7 (21.6)
(6)
38.9 
(7)
(349.4)
(6)(8)(9)
Income (loss) before interest and taxes – Calvin Klein International 98.9 
(4)
45.0 195.3 
(7)
(388.8)
(8)(9)
Income (loss) before interest and taxes – Heritage Brands Wholesale 22.2 (6.7)
(6)
43.4 (294.6)
(6)(9)(10)
Loss before interest and taxes – Heritage Brands Retail(20.6)
(5)
(25.4)
(5)
(33.9)
(5)
(48.4)
(5)(8)
Loss before interest and taxes – Corporate(3)    
(50.7)(43.8)
(6)

(119.0)
(7)
(100.9)
(6)(11)
Income (loss) before interest and taxes$279.0 $(1.7)$476.4 $(1,220.1)

(1) Income (loss) 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 before interest and taxes in the thirteen and twenty-six weeks ended August 2, 2020 was significantly adversely impacted by the COVID-19 pandemic, including as a result of the unprecedented material decline in revenue noted above. As well, loss before interest and taxes in the twenty-six weeks ended August 2, 2020 was significantly adversely impacted by $961.8 million of noncash impairment charges related to goodwill, tradenames, and other intangible assets, store assets and an equity method investment resulting from the significant adverse impacts of the pandemic on the Company’s business. Please see notes (8), (9) and (11) below for further discussion.

(3) Includes corporate expenses not allocated to any reportable segments, the results of PVH Ethiopia and the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld (prior to its impairment in the first quarter of 2020). 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) Income before interest and taxes for the thirteen weeks ended August 1, 2021 included costs of $1.8 million incurred in connection with actions to streamline the Company’s organization through reductions in its workforce, primarily in certain international markets, and to reduce its real estate footprint, including reductions in office space and select store closures, consisting of severance and contract termination and other costs. Such costs were included in the Company’s segments as follows: $1.4 million in Tommy Hilfiger International and $0.4 million in Calvin Klein International. Please see Note 17, “Exit Activity Costs,” for further discussion.

(5) Loss before interest and taxes for the thirteen and twenty-six weeks ended August 1, 2021 and August 2, 2020 included costs and operating losses, as well as noncash asset impairments in the prior year period associated with the wind down of the Heritage Brands Retail business that was substantially completed in the second quarter of 2021. Please see Note 17, “Exit Activity Costs,” for further discussion.

(6) 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: $10.9 million in Tommy Hilfiger North America, $10.5 million in Calvin Klein North America, $11.2 million in Heritage Brands Wholesale, and $5.8 million in corporate expenses not allocated to any reportable segments. Please see Note 17, “Exit Activity Costs,” for further discussion.

(7) Income (loss) before interest and taxes for the twenty-six weeks ended August 1, 2021 included costs of $45.1 million incurred in connection with actions to streamline the Company’s organization through reductions in its workforce, primarily in certain international markets, and to reduce its real estate footprint, including reductions in office space and select store closures, consisting of noncash assets impairments, severance, and contract termination and other costs. Such costs were included in the Company’s segments as follows: $1.7 million in Tommy Hilfiger North America, $7.1 million in Tommy Hilfiger International, $2.1 million in Calvin Klein North America, $5.7 million in Calvin Klein International and $28.5 million in corporate expenses not allocated to any reportable segments. Please see Note 17, “Exit Activity Costs,” for further discussion.

(8) (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 13, “Fair Value Measurements,” for further discussion.

(9) 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 8, “Goodwill and Other Intangible Assets,” for further discussion.

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

(11) 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 7, “Investments in Unconsolidated Affiliates,” for further discussion.

Intersegment transactions, which primarily consist of transfers of inventory, are not material.