XML 57 R46.htm IDEA: XBRL DOCUMENT v3.21.2
SEGMENT DATA (Tables)
 6 Months Ended
Aug. 01, 2021
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 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.