EXIT ACTIVITY COSTS (Tables)

3 Months Ended

May 04, 2025

Growth Driver 5 Actions

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs

Growth Driver 5 Actions

In line with the fifth growth driver of the PVH+ Plan – drive efficiencies and invest in growth – the Company embarked on a multi-year initiative beginning in the second quarter of 2024 to simplify its operating model by centralizing certain processes and improving systems and automation to drive more efficient and cost-effective ways of working across the organization, through four main pillars: (i) delivering a single global technology stack, (ii) redesigning the Company’s global distribution network, (iii) reengineering the operating model in Europe, and (iv) streamlining and optimizing the Company’s support functions globally (referred to as “Growth Driver 5 Actions”).

The Company expects to generate annual cost savings of approximately $200 million to $300 million, net of continued strategic investments by 2026, with the actions to support this initiative largely completed by the end of 2025. In connection with this initiative, the Company recorded pre-tax severance, termination benefits and other employee costs of $33.5 million during 2024 and $13.2 million during the thirteen weeks ended May 4, 2025. These costs were recorded in SG&A expenses in the Company’s Consolidated Statements of Operations for the respective periods. In addition, the Company sold a warehouse and distribution center during the third quarter of 2024 in connection with this initiative, resulting in a pre-tax gain of $9.5 million that was recorded during the third quarter of 2024 and included in other gain in the Company’s Consolidated Statements of Operations. Such amount represents the consideration received, less costs to sell. The warehouse and distribution center assets had no remaining value at the time of the sale. These net pre-tax costs are included in restructuring and other costs for segment data reporting purposes. The Company expects to incur additional pre-tax costs in connection with this initiative, however the additional costs cannot be quantified at this time.

The liabilities related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows:

(In millions)	Liability at 2/2/25		Costs Incurred During the Thirteen Weeks Ended 5/4/25		Costs Paid During the Thirteen Weeks Ended 5/4/25		Liability at 5/4/25
Severance, termination benefits and other employee costs	$	22.6	$	13.2	$	7.2	$	28.6