SEGMENT DATA

12 Months Ended

Feb. 02, 2025

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; and (v) Heritage Brands Wholesale. The Company’s Chief Executive Officer, who is the chief operating decision maker (“CODM”), uses segment income (loss) before interest and taxes as the profit measure to evaluate segment performance and allocate resources to the segments. The CODM considers variances of actual and forecasted performance to prior year when making decisions.

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 conducted under the Warner’s, Olga and True&Co. trademarks until November 27, 2023, when the Company completed the Heritage Brands intimates transaction; (ii) men’s underwear under the Nike brand, which is licensed; and (iii) men’s dress shirts under the Van Heusen brand, which is licensed, as well as under various other licensed brand names. Please see Note 3, “Divestitures,” for further discussion of the Heritage Brands intimates 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.

Changes to Organizational Structure

The disclosures below and elsewhere in the consolidated financial statements reflect the reportable segments discussed above, which existed through the end of 2024. Effective February 3, 2025, the first day of 2025, the Company changed its reportable segments to be region-focused to align with changes in its business and organizational structure. These changes included the restructuring of the executive leadership structure directly reporting to the CODM. The Company’s new reportable segments are: (i) Americas, (ii) Europe, the Middle East and Africa, (iii) Asia-Pacific, and (iv) Licensing. The new reportable segments reflect the way the Company is currently being managed and for which separate financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance. The Company’s historical segment reporting will be recast in future filings to reflect the new organizational structure.

Segment Data

The Company’s revenue, significant expenses, and income (loss) before interest and taxes by segment, which include the impact of changes in foreign currency exchanges rates, were as follows:

	2024
(In millions)	Tommy Hilfiger North America (4)(5)		Tommy Hilfiger International  (4)(5)		Calvin Klein North America (4)		Calvin Klein International (4)		Heritage Brands Wholesale(6)		Total
Net Sales	$	1,252.8	$	3,142.9	$	1,120.0	$	2,481.4	$	206.0	$	8,203.1
Royalty revenue	97.8		58.7		155.1		49.2		0.4		361.2
Advertising and other revenue	20.6		16.9		40.9		10.1		0.1		88.6
Total revenue	1,371.2		3,218.5		1,316.0		2,540.7		206.5		8,652.9
Cost of goods sold (1)	615.0		1,242.8		599.1		927.5		126.0		3,510.4
Marketing expenses (1)	65.9		188.6		86.9		130.4		8.2		480.0
Other segment items (2)	544.1		1,462.0		480.1		1,155.2		35.9		3,677.3
Segment income before interest and taxes	$	146.2	$	325.1	$	149.9	$	327.6	$	36.4	$	985.2
Corporate (3)(4)											(212.9)
Income before interest and taxes											$	772.3

(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)    Other segment items include (i) all other segment selling, general and administrative expenses other than marketing expense, including direct and indirect costs to operate the segment’s retail store, digital commerce, licensing and wholesale businesses, warehousing and distribution costs, depreciation and amortization, restructuring costs, and other costs, (ii) equity in net income of unconsolidated affiliates and (iii) the other gain recorded in 2024 in connection with the Heritage Brands intimates transaction described in note (6) below.

(3)    Includes corporate expenses not allocated to any reportable segments. 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. The actuarial loss on the Company’s Pension Plans, SERP Plans and Postretirement Plans was $28.2 million in 2024.

(4)    Income (loss) before interest and taxes included net costs of $24.0 million incurred related to the Growth Driver 5 Actions described in Note 16, “Exit Activity Costs,” consisting principally of severance and a gain in connection with the sale of a warehouse and distribution center. Such costs were included in the Company’s segments as follows: $2.8 million in Tommy Hilfiger North America, $14.6 million in Tommy Hilfiger International, $3.2 million in Calvin Klein North America, $7.1 million in Calvin Klein International, and a net gain of $3.7 million in corporate expenses not allocated to any reportable segments. Please see Note 16, “Exit Activity Costs,” for further discussion.

(5)    Income before interest and taxes included costs of $50.7 million incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payment

obligations. Such costs were included in the Company’s segments as follows: $17.1 million in Tommy Hilfiger North America and $33.6 million in Tommy Hilfiger International.

(6)    Income before interest and taxes included a gain of $10.0 million in connection with the Heritage Brands intimates transaction due to the accelerated realization of the earnout provided for in the agreement with Basic Resources. Please see Note 3, “Divestitures,” for further discussion.

	2023
(In millions)	Tommy Hilfiger North America (4)		Tommy Hilfiger International  (4)		Calvin Klein North America (4)		Calvin Klein International (4)		Heritage Brands Wholesale (4)(5)		Total
Net Sales	$	1,262.7	$	3,376.3	$	1,112.4	$	2,523.0	$	477.4	$	8,751.8
Royalty revenue	88.5		58.6		165.2		55.0		0.9		368.2
Advertising and other revenue	20.5		18.0		47.0		11.9		0.3		97.7
Total revenue	1,371.7		3,452.9		1,324.6		2,589.9		478.6		9,217.7
Cost of goods sold (1)	636.4		1,351.6		609.2		933.5		323.8		3,854.5
Marketing expenses (1)	81.7		188.9		101.8		143.9		17.6		533.9
Other segment items (2)	560.1		1,457.8		506.0		1,126.5		97.9		3,748.3
Segment income before interest and taxes	$	93.5	$	454.6	$	107.6	$	386.0	$	39.3	$	1,081.0
Corporate (3)(4)											(152.2)
Income before interest and taxes											$	928.8

(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)    Other segment items include (i) all other segment selling, general and administrative expenses other than marketing expense, including direct and indirect costs to operate the segment’s retail store, digital commerce, licensing and wholesale businesses, warehousing and distribution costs, depreciation and amortization, restructuring costs, and other costs, (ii) equity in net income of unconsolidated affiliates and (iii) the other gain recorded in 2023 in connection with the Heritage Brands intimates transaction described in note (5) below.

(3)    Includes corporate expenses not allocated to any reportable segments. 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. The actuarial gain on the Company’s Pension Plans, SERP Plans and Postretirement Plans was $45.5 million in 2023.

(4)    Income (loss) before interest and taxes included costs of $61.3 million incurred related to the 2022 cost savings initiative described in Note 16, “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 16, “Exit Activity Costs,” for further discussion.

(5)    Income before interest and taxes 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, “Divestitures,” for further discussion.

	2022
(In millions)	Tommy Hilfiger North America (4)(5)		Tommy Hilfiger International (5)(6)		Calvin Klein North America (4)(5)		Calvin Klein International (4)(5)(6)		Heritage Brands Wholesale (5)		Total
Net Sales	$	1,185.0	$	3,282.1	$	1,205.6	$	2,290.3	$	581.9	$	8,544.9
Royalty revenue	86.0		61.9		170.1		53.1		0.9		372.0
Advertising and other revenue	21.7		20.7		54.7		9.6		0.6		107.3
Total revenue	1,292.7		3,364.7		1,430.4		2,353.0		583.4		9,024.2
Cost of goods sold (1)	674.9		1,259.4		732.6		842.6		391.8		3,901.3
Marketing expenses (1)	70.3		165.5		106.7		128.9		20.7		492.1
Other segment items (2)	722.9		1,425.0		673.0		1,128.9		123.5		4,073.3
Segment (loss) income before interest and taxes	$	(175.4)	$	514.8	$	(81.9)	$	252.6	$	47.4	$	557.5
Corporate (3)(5)(7)											(86.8)
Income before interest and taxes											$	470.7

(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2)    Other segment items include (i) all other segment selling, general and administrative expenses other than marketing expense, including direct and indirect costs to operate the segment’s retail store, digital commerce, licensing and wholesale businesses, warehousing and distribution costs, depreciation and amortization, restructuring costs, and other costs, (ii) equity in net income of unconsolidated affiliates and (iii) a goodwill impairment charge recorded in 2022 described in note (4) below.

(3)    Includes corporate expenses not allocated to any reportable segments, including 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. 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. The actuarial gain on the Company’s Pension Plans, SERP Plans and Postretirement Plans was $78.4 million in 2022.

(4)    (Loss) income before interest and taxes 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 6, “Goodwill and Other Intangible Assets,” for further discussion.

(5)     (Loss) income before interest and taxes included costs of $20.2 million incurred related to the 2022 cost savings initiative described in Note 16, “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 16, “Exit Activity Costs,” for further discussion.

(6)    Income before interest and taxes 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 16, “Exit Activity Costs,” for further discussion.

(7)    Loss before interest and taxes 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.

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

(In millions)	2024		2023		2022
Identifiable Assets(1)
Tommy Hilfiger North America	$	1,218.6	$	1,185.3	$	1,296.3
Tommy Hilfiger International	4,475.3		4,667.6		4,875.4
Calvin Klein North America	1,382.9		1,354.7		1,527.2
Calvin Klein International	2,997.2		3,005.2		3,099.7
Heritage Brands Wholesale(2)	127.1		136.9		410.4
Corporate(3)	832.1		823.2		559.3
Total	$	11,033.2	$	11,172.9	$	11,768.3
Depreciation and Amortization
Tommy Hilfiger North America	$	26.0	$	29.5	$	30.5
Tommy Hilfiger International	119.7		131.1		125.0
Calvin Klein North America	21.1		24.8		29.6
Calvin Klein International	99.7		95.8		94.3
Heritage Brands Wholesale	4.2		5.8		10.7
Corporate	11.5		11.6		11.4
Total	$	282.2	$	298.6	$	301.5
Identifiable Capital Expenditures(4)
Tommy Hilfiger North America	$	13.0	$	14.2	$	14.5
Tommy Hilfiger International	66.0		118.7		140.9
Calvin Klein North America	9.4		6.3		14.4
Calvin Klein International	56.6		88.8		103.7
Heritage Brands Wholesale	1.9		2.7		6.6
Corporate	1.5		2.3		3.5
Total	$	148.4	$	233.0	$	283.6

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

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

(3)The changes in Corporate identifiable assets in 2024, 2023 and 2022 were primarily due to changes in cash and cash equivalents and the assets attributable to the Company’s Pension Plans.

(4)Capital expenditures in 2024 included $17.4 million of accruals that will not be paid until 2025. Capital expenditures in 2023 included $27.7 million of accruals that were not paid until 2024. Capital expenditures in 2022 included $39.4 million of accruals that were not paid until 2023.

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

Revenue by Distribution Channel

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

(In millions)	2024		(1)	2023		(1)	2022		(1)
Wholesale net sales	$	4,108.8		$	4,554.7		$	4,704.0
Owned and operated retail stores	3,348.9			3,399.8			3,118.2
Owned and operated digital commerce sites	745.4			797.3			722.7
Retail net sales	4,094.3			4,197.1			3,840.9
Net sales	8,203.1			8,751.8			8,544.9
Royalty revenue	361.2			368.2			372.0
Advertising and other revenue	88.6			97.7			107.3
Total (2)	$	8,652.9		$	9,217.7		$	9,024.2

(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 2024, 2023 or 2022.

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

Geographic Region Data    

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

(In millions)	2024 (1)		2023 (1)		2022 (1)
Domestic	$	287.7	$	333.6	$	384.3
Canada	6.6		8.0		10.4
Europe	351.3		415.0		406.4
Asia-Pacific	93.5		103.7		101.1
Other foreign	1.9		2.3		1.8
Total	$	741.0	$	862.6	$	904.0

(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)	2024 (1)		2023 (1)		2022 (1)
Domestic (2)	$	2,473.7	$	2,715.1	$	2,854.9
Canada	315.4		349.1		347.6
Europe	4,124.8		4,378.6		4,204.0
Asia-Pacific	1,617.5		1,643.5		1,492.3
Other foreign	121.5		131.4		125.4
Total	$	8,652.9	$	9,217.7	$	9,024.2

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

(2)Domestic revenue in 2023 and 2024 was negatively impacted by the Heritage Brands intimates transaction. Please see Note 3, “Divestitures,” for further discussion.