SEGMENT DATA

12 Months Ended

Feb. 04, 2024

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA

The Company manages its operations through its operating divisions, which are presented as its 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) through the second quarter of 2021, Heritage Brands Retail which has ceased operations.

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 and off-price 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 investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear affiliate relating to each 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 investments in its unconsolidated affiliate in India, relating to the affiliate’s Tommy Hilfiger business, and its unconsolidated affiliate in Brazil.

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 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 investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear affiliate relating to each 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 primarily in North America of (i) women’s intimate apparel under the Warner’s, Olga and True&Co. brands until November 27, 2023, when the Company completed the Heritage Brands intimates transaction; (ii) men’s underwear under the Nike brand, which is licensed; (iii) men’s dress shirts under the Van Heusen brand, which is licensed, as well as under various other licensed brand names; and (iv) men’s

sportswear, bottoms and outerwear principally under the Van Heusen, IZOD and ARROW trademarks until August 2, 2021, when the Company completed the Heritage Brands menswear transaction. Please see Note 3, “Acquisitions and Divestitures,” for further discussion of the Heritage Brands intimates transaction and the Heritage Brands menswear transaction. This segment also derived revenue from Company operated digital commerce sites in the United States for Van Heusen and IZOD, which ceased operations during 2021 in connection with the Heritage Brands menswear transaction. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear affiliate relating to each affiliate’s business under various owned and licensed brand names.

Heritage Brands Retail Segment - This segment consisted 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 through which the Company marketed a selection of Van Heusen, IZOD and Warner’s apparel, accessories and related products directly to consumers. The Company completed the exit from its Heritage Brands Retail business during 2021 and as a result, the Company’s Heritage Brands Retail segment has ceased operations. Please see Note 17, “Exit Activity Costs,” for further discussion.

The Company’s revenue by segment was as follows:

(In millions)	2023		(1)	2022		(1)	2021		(1)
Revenue – Tommy Hilfiger North America
Net sales	$	1,262.7		$	1,185.0		$	1,086.0
Royalty revenue	88.5			86.0			79.0
Advertising and other revenue	20.5			21.7			19.8
Total	1,371.7			1,292.7			1,184.8
Revenue – Tommy Hilfiger International
Net sales	3,376.3			3,282.1			3,446.6
Royalty revenue	58.6			61.9			56.8
Advertising and other revenue	18.0			20.7			15.5
Total	3,452.9			3,364.7			3,518.9
Revenue – Calvin Klein North America
Net sales	1,112.4			1,205.6			1,129.5
Royalty revenue	165.2			170.1			145.6
Advertising and other revenue	47.0			54.7			46.6
Total	1,324.6			1,430.4			1,321.7
Revenue – Calvin Klein International
Net sales	2,523.0			2,290.3			2,283.1
Royalty revenue	55.0			53.1			48.3
Advertising and other revenue	11.9			9.6			7.2
Total	2,589.9			2,353.0			2,338.6
Revenue – Heritage Brands Wholesale
Net sales	477.4			581.9			702.9
Royalty revenue	0.9			0.9			10.4
Advertising and other revenue	0.3			0.6			1.8
Total	478.6			583.4			715.1
Revenue – Heritage Brands Retail
Net sales	—			—			75.6
Total	—			—			75.6
Total Revenue
Net sales	8,751.8			8,544.9			8,723.7
Royalty revenue	368.2			372.0			340.1
Advertising and other revenue	97.7			107.3			90.9
Total(2)	$	9,217.7		$	9,024.2		$	9,154.7

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

(2)    No single customer accounted for more than 5% of the Company’s revenue in 2023, 2022 or 2021.

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

(In millions)	2023		(1)	2022		(1)	2021		(1)
Wholesale net sales	$	4,554.7		$	4,704.0		$	4,860.9
Owned and operated retail stores	3,399.8			3,118.2			3,087.1
Owned and operated digital commerce sites	797.3			722.7			775.7
Retail net sales	4,197.1			3,840.9			3,862.8
Net sales	8,751.8			8,544.9			8,723.7
Royalty revenue	368.2			372.0			340.1
Advertising and other revenue	97.7			107.3			90.9
Total	$	9,217.7		$	9,024.2		$	9,154.7

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

The Company has not disclosed net sales by product category as it is impracticable to do so.

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

(In millions)	2023		(1)	2022		(1)	2021		(1)
Income (loss) before interest and taxes – Tommy Hilfiger North America	$	93.5	(2)	$	(175.4)	(5)(6)	$	21.2	(9)
Income before interest and taxes – Tommy Hilfiger International	454.6		(2)	514.8		(6)(7)	654.2		(9)
Income (loss) before interest and taxes – Calvin Klein North America	107.6		(2)	(81.9)		(5)(6)	78.0		(9)
Income before interest and taxes – Calvin Klein International	386.0		(2)	252.6		(5)(6)(7)	377.6		(9)
Income before interest and taxes – Heritage Brands Wholesale	39.3		(2)(3)	47.4		(6)	160.9		(10)
Loss before interest and taxes – Heritage Brands Retail	—			—			(33.9)		(11)
Loss before interest and taxes – Corporate(4)	(152.2)		(2)	(86.8)		(6)(8)	(181.1)		(9)
Income before interest and taxes	$	928.8		$	470.7		$	1,076.9

(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)Income (loss) before interest and taxes for 2023 included costs of $61.3 million incurred related to the 2022 cost savings initiative described in Note 17, “Exit Activity Costs,” consisting principally of severance. Such costs were included in the Company’s segments as follows: $12.7 million in Tommy Hilfiger North America, $17.3 million in Tommy Hilfiger International, $9.1 million in Calvin Klein North America, $10.8 million in Calvin Klein International, $7.8 million in Heritage Brands Wholesale and $3.6 million in corporate expenses not allocated to any reportable segments. Please see Note 17, “Exit Activity Costs,” for further discussion.

(3)Income before interest and taxes for 2023 included an aggregate net gain of $13.5 million in connection with the Heritage Brands intimates transaction, consisting of (i) a $15.3 million gain, including a gain on the sale, less costs to sell, partially offset by (ii) $1.8 million of severance and other termination benefits. Please see Note 3, “Acquisitions and Divestitures,” for further discussion.

(4)Includes corporate expenses not allocated to any reportable segments, the results of PVH Ethiopia (through the closure of the Ethiopia factory in 2021) and the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld prior to the closing of the Karl Lagerfeld transaction in 2022. Please see Note 5, “Investments in Unconsolidated Affiliates,” for further discussion of the Company’s investment in Karl Lagerfeld and Note 6, “Redeemable Non-Controlling Interest,” for further discussion of PVH Ethiopia. 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, certain global strategic initiatives and actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans. Actuarial gains on the Company’s Pension Plans, SERP Plans and Postretirement Plans totaled $45.5 million, $78.4 million and $48.7 million in 2023, 2022 and 2021, respectively.

(5)(Loss) income before interest and taxes for 2022 included a noncash goodwill impairment charge of $417.1 million. The goodwill impairment charge was included in the Company’s segments as follows: $177.2 million in Tommy Hilfiger North America, $162.6 million in Calvin Klein North America and $77.3 million in Calvin Klein International. Please see Note 7, “Goodwill and Other Intangible Assets,” for further discussion.

(6)(Loss) income before interest and taxes for 2022 included costs of $20.2 million incurred related to the 2022 cost savings initiative described in Note 17, “Exit Activity Costs,” consisting principally of severance. Such costs were included in the Company’s segments as follows: $4.7 million in Tommy Hilfiger North America, $2.5 million in Tommy Hilfiger International, $4.6 million in Calvin Klein North America, $3.5 million in Calvin Klein International, $2.6 million in Heritage Brands Wholesale and $2.3 in corporate expenses not allocated to any reportable segments. Please see Note 17, “Exit Activity Costs,” for further discussion.

(7)Income before interest and taxes for 2022 included net costs of $43.0 million incurred in connection with the Company’s decision to exit from its Russia business, principally consisting of noncash asset impairments. Such costs were included in the Company’s segments as follows: $31.6 million in Tommy Hilfiger International and $11.4 million in Calvin Klein International. Please see Note 17, “Exit Activity Costs,” for further discussion.

(8)Loss before interest and taxes for 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 5, “Investments in Unconsolidated Affiliates,” for further discussion.

(9)Income (loss) before interest and taxes for 2021 included costs of $47.6 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 asset 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, $8.9 million in Tommy Hilfiger International, $2.1 million in Calvin Klein North America, $6.4 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.

(10)Income before interest and taxes for 2021 included an aggregate net gain of $113.4 million in connection with the Heritage Brands menswear transaction, consisting of (i) a $118.9 million gain, including a gain on the sale, less costs to sell, and a net gain on the Company’s retirement plans associated with the transaction, partially offset by (ii) $5.5 million of severance costs. Please see Note 3, “Acquisitions and Divestitures,” for further discussion.

(11)Loss before interest and taxes for 2021 included costs and operating losses, associated with the wind down of the Heritage Brands Retail business that was completed in 2021. Please see Note 17, “Exit Activity Costs,” for further discussion.

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

The Company’s identifiable assets, depreciation and amortization, and identifiable capital expenditures by segment were as follows:

(In millions)	2023		2022		2021
Identifiable Assets(1)(2)
Tommy Hilfiger North America	$	1,185.3	$	1,296.3	$	1,409.8
Tommy Hilfiger International	4,667.6		4,875.4		4,913.2
Calvin Klein North America	1,354.7		1,527.2		1,609.8
Calvin Klein International	3,005.2		3,099.7		3,164.0
Heritage Brands Wholesale(3)	136.9		410.4		420.0
Corporate(4)	823.2		559.3		880.0
Total	$	11,172.9	$	11,768.3	$	12,396.8
Depreciation and Amortization
Tommy Hilfiger North America	$	29.5	$	30.5	$	32.5
Tommy Hilfiger International	131.1		125.0		130.2
Calvin Klein North America	24.8		29.6		31.6
Calvin Klein International	95.8		94.3		94.9
Heritage Brands Wholesale	5.8		10.7		11.2
Heritage Brands Retail	—		—		0.3
Corporate	11.6		11.4		12.6
Total	$	298.6	$	301.5	$	313.3
Identifiable Capital Expenditures(5)
Tommy Hilfiger North America	$	14.2	$	14.5	$	19.2
Tommy Hilfiger International	118.7		140.9		138.4
Calvin Klein North America	6.3		14.4		22.6
Calvin Klein International	88.8		103.7		85.7
Heritage Brands Wholesale	2.7		6.6		10.9
Corporate	2.3		3.5		4.9
Total	$	233.0	$	283.6	$	281.7

(1)Identifiable assets included the impact of changes in foreign currency exchange rates.

(2)Identifiable assets in 2022 included a reduction of $417.1 million related to the noncash goodwill impairment. Please see Note 7, “Goodwill and Other Intangible Assets,” for further discussion.

(3)Identifiable assets in 2023 included a reduction of $140.3 million related to the Heritage Brands intimates transaction. Please see Note 3, “Acquisitions and Divestitures,” for further discussion.

(4)The changes in Corporate identifiable assets in 2023 and 2022 were primarily due to changes in cash and cash equivalents.

(5)Capital expenditures in 2023 included $27.7 million of accruals that will not be paid until 2024. Capital expenditures in 2022 included $39.4 million of accruals that were not paid until 2023. Capital expenditures in 2021 included $45.9 million of accruals that were not paid until 2022.

Property, plant and equipment, net based on the location where such assets are held, was as follows:

(In millions)	2023 (1)		2022 (1)		2021 (1)
Domestic	$	333.6	$	384.3	$	429.0
Canada	8.0		10.4		13.8
Europe	415.0		406.4		378.7
Asia-Pacific	103.7		101.1		82.8
Other foreign	2.3		1.8		1.8
Total	$	862.6	$	904.0	$	906.1

(1)Property, plant and equipment, net included the impact of changes in foreign currency exchange rates.

Revenue, based on location of origin, was as follows:

(In millions)	2023 (1)		2022 (1)		2021 (1)
Domestic	$	2,715.1	$	2,854.9	$	2,894.7
Canada	349.1		347.6		313.3
Europe	4,378.6		4,204.0		4,392.3
Asia-Pacific	1,643.5		1,492.3		1,454.4
Other foreign	131.4		125.4		100.0
Total	$	9,217.7	$	9,024.2	$	9,154.7

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