EXIT ACTIVITY COSTS

3 Months Ended

May 03, 2026

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 multiyear initiative beginning in 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”).

In connection with this initiative, the Company recorded pre-tax net costs as shown in the following table. While the actions to support this initiative were largely completed by the end of 2025, there have been certain actions taken and additional actions that the Company plans to take under this initiative, on a limited basis, during 2026. Such actions include the sale of the Company’s owned warehouse and distribution center located in Jonesville, NC, as further discussed in Note 4, “Assets Held for Sale.” The net impact of these remaining actions cannot be quantified at this time.


(In millions)	Costs Incurred During the Thirteen Weeks Ended 5/4/25		Costs Incurred During the Thirteen Weeks Ended 5/3/26		Cumulative Net Costs Incurred
Severance, termination benefits and other employee costs	$	13.2	$	5.7	$	119.3
Accelerated depreciation (1)	—		1.2		7.8
Long-lived asset impairments and disposals (1)	—		—		6.4
Gain on sale of warehouse and distribution center (2)	—		—		(9.5)
Total	$	13.2	$	6.9	$	124.0

(1) The Company recorded accelerated depreciation expense and long-lived asset impairments and disposals, which were primarily related to legacy technology assets that will be or have been decommissioned as the Company moves to a single global technology stack.

(2) The Company sold a warehouse and distribution center during the third quarter of 2024, resulting in a pre-tax gain of $9.5 million that was recorded during the third quarter of 2024. Such amount represents the consideration received, less costs to sell. The warehouse and distribution center assets had no remaining carrying value at the time of the sale.

The severance, termination benefits and other employee costs, accelerated depreciation expense and long-lived asset impairments and disposals were recorded in SG&A expenses and the gain on the sale of warehouse and distribution center was included in other gain in the Company’s Consolidated Statements of Operations for the respective periods. These pre-tax net costs are included in restructuring and other items for segment data reporting purposes.

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 2/1/26		Costs Incurred During the Thirteen Weeks Ended 5/3/26		Costs Paid During the Thirteen Weeks Ended 5/3/26		Liability at 5/3/26
Severance, termination benefits and other employee costs	$	30.4	$	5.7	$	13.8	$	22.3