SEGMENT DATA

12 Months Ended

Jan. 29, 2023

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATAThe 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. The Company’s Heritage Brands Retail segment 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 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 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 Brazil and its unconsolidated affiliate in India relating to each 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 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; (ii) men’s underwear under the Nike brand, which is licensed, (iii) men’s dress shirts and neckwear under the Van Heusen brand, as well as under various licensed brand names; (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 transaction, and (v) 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 3, “Acquisitions and Divestitures,” for further discussion of the Speedo and Heritage Brands transactions. This segment also derived revenue from Company operated digital commerce sites in the United States for Van Heusen and IZOD, which ceased operations during the third quarter of 2021 in connection with the Heritage Brands transaction, and until April 6, 2020 for Speedo. 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 announced in July 2020 a plan to exit its Heritage Brands Retail business, which was substantially completed in the second quarter of 2021. 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)	2022		(1)(2)	2021		(1)(2)	2020		(1)(2)
Revenue – Tommy Hilfiger North America
Net sales	$	1,185.0		$	1,086.0		$	901.2
Royalty revenue	86.0			79.0			53.7
Advertising and other revenue	21.7			19.8			13.9
Total	1,292.7			1,184.8			968.8
Revenue – Tommy Hilfiger International
Net sales	3,282.1			3,446.6			2,615.6
Royalty revenue	61.9			56.8			40.1
Advertising and other revenue	20.7			15.5			11.9
Total	3,364.7			3,518.9			2,667.6
Revenue – Calvin Klein North America
Net sales	1,205.6			1,129.5			826.8
Royalty revenue	170.1			145.6			99.8
Advertising and other revenue	54.7			46.6			29.0
Total	1,430.4			1,321.7			955.6
Revenue – Calvin Klein International
Net sales	2,290.3			2,283.1			1,614.6
Royalty revenue	53.1			48.3			52.2
Advertising and other revenue	9.6			7.2			15.9
Total	2,353.0			2,338.6			1,682.7
Revenue – Heritage Brands Wholesale
Net sales	581.9			702.9			703.1
Royalty revenue	0.9			10.4			12.3
Advertising and other revenue	0.6			1.8			2.5
Total	583.4			715.1			717.9
Revenue – Heritage Brands Retail
Net sales	—			75.6			137.4
Royalty revenue	—			—			2.3
Advertising and other revenue	—			—			0.3
Total	—			75.6			140.0
Total Revenue
Net sales	8,544.9			8,723.7			6,798.7
Royalty revenue	372.0			340.1			260.4
Advertising and other revenue	107.3			90.9			73.5
Total(3)	$	9,024.2		$	9,154.7		$	7,132.6

(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 2020 was significantly negatively impacted by the COVID-19 pandemic, including as a result of reduced traffic and consumer spending trends, and temporary store closures for varying periods of time throughout the year. 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 2021 and 2022 continued to be negatively impacted by the pandemic and related supply chain and logistics disruptions, although to a much lesser extent than in 2020.

(3)    No single customer accounted for more than 10% of the Company’s revenue in 2022, 2021 or 2020.

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

(In millions)	2022		(1)(2)	2021		(1)(2)	2020		(1)(2)
Wholesale net sales	$	4,704.0		$	4,860.9		$	3,534.8
Owned and operated retail stores	3,118.2			3,087.1			2,586.5
Owned and operated digital commerce sites	722.7			775.7			677.4
Retail net sales	3,840.9			3,862.8			3,263.9
Net sales	8,544.9			8,723.7			6,798.7
Royalty revenue	372.0			340.1			260.4
Advertising and other revenue	107.3			90.9			73.5
Total	$	9,024.2		$	9,154.7		$	7,132.6

(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 2020 was significantly negatively impacted by the COVID-19 pandemic, including as a result of reduced traffic and consumer spending trends, and temporary store closures for varying periods of time throughout the year. 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 2021 and 2022 continued to be negatively impacted by the pandemic and related supply chain and logistics disruptions, although to a much lesser extent than in 2020.

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)	2022		(1)	2021		(1)	2020		(1)(2)
(Loss) income before interest and taxes – Tommy Hilfiger North America	$	(175.4)	(4)(5)	$	21.2	(8)	$	(130.5)	(11)(12)
Income before interest and taxes – Tommy Hilfiger International	514.8		(5)(6)	654.2		(8)	259.5		(12)
(Loss) income before interest and taxes – Calvin Klein North America	(81.9)		(4)(5)	78.0		(8)	(384.5)		(11)(12)(13)
Income (loss) before interest and taxes – Calvin Klein International	252.6		(4)(5)(6)	377.6		(8)	(280.0)		(12)(13)
Income (loss) before interest and taxes – Heritage Brands Wholesale	47.4		(5)	160.9		(9)	(312.5)		(11)(13)
Loss before interest and taxes – Heritage Brands Retail	—			(33.9)		(10)	(93.4)		(10)(12)
Loss before interest and taxes – Corporate(3)	(86.8)		(5)(7)	(181.1)		(8)	(130.3)		(11)(14)
Income (loss) before interest and taxes	$	470.7		$	1,076.9		$	(1,071.7)

(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 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 2020 was significantly adversely impacted by $1.0 billion 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 COVID-19 pandemic on the Company’s business. Please see notes (12), (13) and (14) below for further discussion.

(3)Includes corporate expenses not allocated to any reportable segments, the results of PVH Ethiopia (through the closure of the Ethiopia factory in the fourth quarter of 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 the second quarter of 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 $78.4 million, $48.7 million and $64.5 million in 2022, 2021 and 2020, respectively.

(4)(Loss) income before interest and taxes for 2022 included a noncash goodwill impairment charge of $417.1 million. The $417.1 million 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.

(5)(Loss) income before interest and taxes for 2022 included costs of $20.2 million incurred related to the cost savings initiative described in Note 17, “Exit Activity Costs,” consisting 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.

(6)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.

(7)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.

(8)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.

(9)Income before interest and taxes for 2021 included an aggregate net gain of $113.4 million in connection with the Heritage Brands 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.

(10)Loss before interest and taxes for 2021 and 2020 included costs and operating losses, as well as noncash asset impairments in 2020, 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.

(11)Loss before interest and taxes for 2020 included costs of $39.7 million incurred in connection with the North America workforce reduction, primarily consisting of severance. 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, $12.5 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.

(12)(Loss) income before interest and taxes for 2020 included noncash impairment charges of $74.7 million related to the Company’s store assets. The $74.7 million of impairment charges were included in the Company’s segments as follows: $6.0 million in Tommy Hilfiger North America, $30.0 million in Tommy Hilfiger International, $14.2 million in Calvin Klein North America, $20.7 million in Calvin Klein International and $3.8 million in Heritage Brands Retail. Please see Note 11, “Fair Value Measurements,” for further discussion.

(13)Loss before interest and taxes for 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.

(14)Loss before interest and taxes for 2020 included a noncash impairment charge of $12.3 million related to the Company’s equity method investment in Karl Lagerfeld. Please see Note 5, “Investments in Unconsolidated Affiliates,” 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)	2022		2021		2020
Identifiable Assets(1)(2)
Tommy Hilfiger North America	$	1,296.3	$	1,409.8	$	1,447.9
Tommy Hilfiger International	4,875.4		4,913.2		5,295.3
Calvin Klein North America	1,527.2		1,609.8		1,522.6
Calvin Klein International	3,099.7		3,164.0		3,016.8
Heritage Brands Wholesale(3)	410.4		420.0		547.9
Heritage Brands Retail(4)	—		—		74.2
Corporate(5)	559.3		880.0		1,388.8
Total	$	11,768.3	$	12,396.8	$	13,293.5
Depreciation and Amortization
Tommy Hilfiger North America	$	30.5	$	32.5	$	38.1
Tommy Hilfiger International	125.0		130.2		131.8
Calvin Klein North America	29.6		31.6		30.8
Calvin Klein International	94.3		94.9		97.0
Heritage Brands Wholesale	10.7		11.2		11.5
Heritage Brands Retail	—		0.3		3.5
Corporate	11.4		12.6		13.1
Total	$	301.5	$	313.3	$	325.8
Identifiable Capital Expenditures(6)
Tommy Hilfiger North America	$	14.5	$	19.2	$	21.7
Tommy Hilfiger International	140.9		138.4		100.6
Calvin Klein North America	14.4		22.6		18.7
Calvin Klein International	103.7		85.7		54.2
Heritage Brands Wholesale	6.6		10.9		14.9
Heritage Brands Retail	—		—		0.7
Corporate	3.5		4.9		8.4
Total	$	283.6	$	281.7	$	219.2

(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 2021 included a reduction of $99.4 million related to the Heritage Brands transaction. Please see Note 3, “Acquisitions and Divestitures,” for further discussion.

(4)As a result of the exit from the Heritage Brands Retail business in 2021, the Company’s Heritage Brands Retail segment has ceased operations.

(5)The changes in Corporate identifiable assets in 2022 and 2021 were primarily due to changes in cash and cash equivalents.

(6)Capital expenditures in 2022 included $39.4 million of accruals that will not be paid until 2023. Capital expenditures in 2021 included $45.9 million of accruals that were not paid until 2022. Capital expenditures in 2020 included $32.1 million of accruals that were not paid until 2021.

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

(In millions)	2022 (1)		2021 (1)		2020 (1)
Domestic	$	384.3	$	429.0	$	466.3
Canada	10.4		13.8		19.3
Europe	406.4		378.7		374.7
Asia-Pacific	101.1		82.8		73.8
Other foreign	1.8		1.8		8.6
Total	$	904.0	$	906.1	$	942.7

(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)	2022 (1)(2)		2021 (1)(2)		2020 (1)(2)
Domestic(3)	$	2,854.9	$	2,894.7	$	2,460.0
Canada(3)	347.6		313.3		262.2
Europe	4,204.0		4,392.3		3,154.3
Asia-Pacific	1,492.3		1,454.4		1,189.6
Other foreign	125.4		100.0		66.5
Total	$	9,024.2	$	9,154.7	$	7,132.6

(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 2020 was significantly negatively impacted by the COVID-19 pandemic, including as a result of reduced traffic and consumer spending trends, and temporary store closures for varying periods of time throughout the year. 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 2021 and 2022 continued to be negatively impacted by the pandemic and related supply chain and logistics disruptions, although to a much lesser extent than in 2020.

(3)Revenue in 2021 and 2022 was negatively impacted by the Heritage Brands transaction and the exit from the Heritage Brands Retail business.