Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Oct. 30, 2022 | Nov. 30, 2022 | |
Cover Page [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-07572 | |
Entity Registrant Name | PVH CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-1166910 | |
Entity Address, Address Line One | 285 Madison Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 381-3500 | |
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | PVH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,371,388 | |
Entity Central Index Key | 0000078239 | |
Current Fiscal Year End Date | --01-29 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | ||
Total revenue | [1] | $ 2,280.8 | $ 2,332.5 | $ 6,535.5 | $ 6,725 |
Cost of goods sold (exclusive of depreciation and amortization) | 1,006.6 | 987.4 | 2,803.1 | 2,817.2 | |
Gross profit | 1,274.2 | 1,345.1 | 3,732.4 | 3,907.8 | |
Selling, general and administrative expenses | 1,085 | 1,097.3 | 3,194.8 | 3,198.7 | |
Goodwill, Impairment Loss | 417.1 | 0 | 417.1 | 0 | |
Non-service related pension and postretirement income | (3.4) | (4.2) | (10.2) | (11.5) | |
Other gain | 0 | (118.9) | 0 | (118.9) | |
Equity in net income of unconsolidated affiliates | 10.5 | 6.3 | 42.6 | 14.1 | |
(Loss) income before interest and taxes | [2] | (214) | 377.2 | 173.3 | 853.6 |
Interest expense | 21.1 | 25.9 | 65.9 | 83.7 | |
Interest income | 2.3 | 1.3 | 5 | 3.4 | |
(Loss) income before taxes | (232.8) | 352.6 | 112.4 | 773.3 | |
Income tax (benefit) expense | (46.1) | 72.9 | 50.7 | 212.1 | |
Net (loss) income | (186.7) | 279.7 | 61.7 | 561.2 | |
Less: Net loss attributable to redeemable non-controlling interest | 0 | 0 | 0 | (0.3) | |
Net (loss) income attributable to PVH Corp. | $ (186.7) | $ 279.7 | $ 61.7 | $ 561.5 | |
Basic net (loss) income per common share attributable to PVH Corp. | $ (2.88) | $ 3.94 | $ 0.93 | $ 7.89 | |
Diluted net (loss) income per common share attributable to PVH Corp. | $ (2.88) | $ 3.89 | $ 0.92 | $ 7.77 | |
Net sales | |||||
Total revenue | $ 2,144.7 | $ 2,208 | $ 6,182.4 | $ 6,410 | |
Royalty revenue | |||||
Total revenue | 105.4 | 97.4 | 273.7 | 248 | |
Advertising and other revenue | |||||
Total revenue | $ 30.7 | $ 27.1 | $ 79.4 | $ 67 | |
[1]Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.[2](Loss) income 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. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
Net (loss) income | $ (186.7) | $ 279.7 | $ 61.7 | $ 561.2 |
Foreign currency translation adjustments | (134.1) | (55.6) | (357.9) | (121) |
Net unrealized and realized gain related to cash flow hedges, net of tax | 10.4 | 22.8 | 41.7 | 74.4 |
Net gain on net investment hedges, net of tax | 20.8 | 20.7 | 99.6 | 41.3 |
Total other comprehensive loss | (102.9) | (12.1) | (216.6) | (5.3) |
Comprehensive (loss) income | (289.6) | 267.6 | (154.9) | 555.9 |
Less: Comprehensive loss attributable to redeemable non-controlling interest | 0 | 0 | 0 | (0.3) |
Comprehensive (loss) income attributable to PVH Corp. | $ (289.6) | $ 267.6 | $ (154.9) | $ 556.2 |
Statement of Comprehensive (Los
Statement of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 30, 2022 | Jul. 31, 2022 | May 01, 2022 | Oct. 31, 2021 | Aug. 01, 2021 | May 02, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 4.1 | $ 1.8 | $ 9 | $ 3.1 | $ 6.2 | $ 1.2 | $ 14.9 | $ 10.5 |
Net gain on net investment hedges, tax expense | $ 6.8 | $ 9.6 | $ 16.6 | $ 6.7 | $ 5.2 | $ 1.5 | $ 33 | $ 13.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 30, 2022 | Jan. 30, 2022 | Oct. 31, 2021 |
Current Assets: | |||
Cash and cash equivalents | $ 457 | $ 1,242.5 | $ 1,298.7 |
Trade receivables, net of allowances for credit losses of $50.9, $61.9 and $64.3 | 979.5 | 745.2 | 906.8 |
Other receivables | 22.8 | 20.1 | 29.8 |
Inventories, net | 1,821.2 | 1,348.5 | 1,379.6 |
Prepaid expenses | 210.4 | 169 | 149.8 |
Other | 163.8 | 128.4 | 94.2 |
Total Current Assets | 3,654.7 | 3,653.7 | 3,858.9 |
Property, Plant and Equipment, net | 844.6 | 906.1 | 897.1 |
Operating Lease Right-of-Use Assets | 1,177.1 | 1,349 | 1,432.1 |
Goodwill | 2,214 | 2,828.9 | 2,894.2 |
Tradenames | 2,627.9 | 2,722.9 | 2,763.5 |
Other Intangibles, net | 516.5 | 584.1 | 612.6 |
Other Assets, including deferred taxes of $38.4, $46.1 and $54.0 | 371.1 | 352.1 | 357.6 |
Total Assets | 11,405.9 | 12,396.8 | 12,816 |
Current Liabilities: | |||
Accounts payable | 1,314.3 | 1,220.8 | 1,051.3 |
Accrued expenses | 891.7 | 1,100.8 | 1,116.5 |
Deferred revenue | 34.8 | 44.9 | 35.9 |
Current portion of operating lease liabilities | 329.4 | 375.4 | 395 |
Short-term borrowings | 98 | 10.8 | 27.8 |
Current portion of long-term debt | 37.3 | 34.8 | 32.8 |
Total Current Liabilities | 2,705.5 | 2,787.5 | 2,659.3 |
Long-Term Portion of Operating Lease Liabilities | 1,066.1 | 1,214.4 | 1,285.7 |
Long-Term Debt | 2,109.1 | 2,317.6 | 2,605.2 |
Other Liabilities, including deferred taxes of $306.1, $373.9 and $517.0 | 702.4 | 788.5 | 1,094.1 |
Stockholders' Equity: | |||
Preferred stock, par value $100 per share; 150,000 total shares authorized | 0 | 0 | 0 |
Common stock, par value $1 per share; 240,000,000 shares authorized; 87,619,250; 87,107,155 and 86,988,242 shares issued | 87.6 | 87.1 | 87 |
Additional paid in capital - common stock | 3,233.2 | 3,198.4 | 3,181.8 |
Retained earnings | 4,616.8 | 4,562.8 | 4,172 |
Accumulated other comprehensive loss | (829.3) | (612.7) | (524.4) |
Less: 23,807,754; 18,572,482 and 16,647,920 shares of common stock held in treasury, at cost | (2,285.5) | (1,946.8) | (1,744.7) |
Total Stockholders' Equity | 4,822.8 | 5,288.8 | 5,171.7 |
Total Liabilities and Stockholders' Equity | $ 11,405.9 | $ 12,396.8 | $ 12,816 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 30, 2022 | Jan. 30, 2022 | Oct. 31, 2021 |
Current Assets: | |||
Allowance for credit losses | $ 50.9 | $ 61.9 | $ 64.3 |
Other Assets: | |||
Other Assets, deferred taxes | 38.4 | 46.1 | 54 |
Liabilities: | |||
Other Liabilities, deferred taxes | $ 306.1 | $ 373.9 | $ 517 |
Stockholders' Equity: | |||
Preferred stock, par value (in dollars per share) | $ 100 | ||
Preferred stock, shares authorized (in shares) | 150,000 | ||
Common stock, par value (in dollars per share) | $ 1 | ||
Common stock, shares authorized (in shares) | 240,000,000 | ||
Common stock, shares issued (in shares) | 87,619,250 | 87,107,155 | 86,988,242 |
Shares of common stock held in treasury, at cost (in shares) | 23,807,754 | 18,572,482 | 16,647,920 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2022 | Oct. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net income | $ 61.7 | $ 561.2 |
Adjustments to reconcile to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 225.3 | 233.2 |
Equity in net income of unconsolidated affiliates | (42.6) | (14.1) |
Deferred taxes | (82.3) | 87 |
Stock-based compensation expense | 35.3 | 35.8 |
Impairment of goodwill | 417.1 | 0 |
Impairment of other long-lived assets | 43.6 | 35.1 |
Other gain | 0 | (118.9) |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (297.5) | (276) |
Other receivables | (4.2) | (5.2) |
Inventories, net | (591) | (12) |
Accounts payable, accrued expenses and deferred revenue | 56 | 52.4 |
Prepaid expenses | (52.1) | 2.9 |
Other, net | (45) | 1.8 |
Net cash (used) provided by operating activities | (275.7) | 583.2 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (194.8) | (170.7) |
Proceeds from sale of certain Heritage Brands trademarks and other assets | 0 | 222.9 |
Proceeds from sale of Karl Lagerfeld investment | 19.1 | 0 |
Purchases of investments held in rabbi trust | (6.8) | 0 |
Proceeds from investments held in rabbi trust | 0.6 | 0 |
Net cash (used) provided by investing activities | (181.9) | 52.2 |
FINANCING ACTIVITIES | ||
Net proceeds from short-term borrowings | 90.7 | 28.1 |
Repayment of 2019 facilities | (22.5) | (844.2) |
Net proceeds from settlement of awards under stock plans | 0 | 21 |
Cash dividends | (7.7) | 0 |
Acquisition of treasury shares | (342.5) | (160.8) |
Payments of finance lease liabilities | (3) | (3.9) |
Payment of mandatorily redeemable non-controlling interest liability attributable to initial fair value | 0 | (15.2) |
Net cash used by financing activities | (285) | (975) |
Effect of exchange rate on cash and cash equivalents | (42.9) | (13.1) |
Decrease in cash and cash equivalents | (785.5) | (352.7) |
Cash and cash equivalents at beginning of period | 1,242.5 | 1,651.4 |
Cash and cash equivalents at end of period | $ 457 | $ 1,298.7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) $ in Millions | Total | Redeemable Non-Controlling Interest [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital - Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total Stockholders' Equity |
Balance at Jan. 31, 2021 | $ (3.4) | $ 0 | $ 86.3 | $ 3,129.4 | $ 3,613.2 | $ (519.1) | $ (1,579.5) | $ 4,730.3 | |
Balance (in shares) at Jan. 31, 2021 | 86,293,158 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income attributable to PVH Corp. | 99.9 | 99.9 | |||||||
Foreign currency translation adjustments | (6.5) | (6.5) | |||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 8.3 | 8.3 | |||||||
Net gain on net investment hedges, net of tax | 4.5 | 4.5 | |||||||
Comprehensive (loss) income attributable to PVH Corp. | 106.2 | ||||||||
Settlement of awards under stock plans (in shares) | 253,084 | ||||||||
Settlement of awards under stock plans | $ 0.2 | 1.2 | 1.4 | ||||||
Stock-based compensation expense | 10.7 | 10.7 | |||||||
Acquisition of treasury shares during period | (9.2) | (9.2) | |||||||
Net loss attributable to redeemable non-controlling interest | (0.2) | ||||||||
Balance at May. 02, 2021 | (3.6) | 0 | $ 86.5 | 3,141.3 | 3,713.1 | (512.8) | (1,588.7) | 4,839.4 | |
Balance (in shares) at May. 02, 2021 | 86,546,242 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 1.2 | ||||||||
Balance at Jan. 31, 2021 | (3.4) | 0 | $ 86.3 | 3,129.4 | 3,613.2 | (519.1) | (1,579.5) | 4,730.3 | |
Balance (in shares) at Jan. 31, 2021 | 86,293,158 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income attributable to PVH Corp. | 561.5 | ||||||||
Foreign currency translation adjustments | (121) | ||||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 74.4 | ||||||||
Net gain on net investment hedges, net of tax | 41.3 | ||||||||
Comprehensive (loss) income attributable to PVH Corp. | 556.2 | ||||||||
Dividends declared ($0.0375 per common share) | (2.7) | ||||||||
Balance at Oct. 31, 2021 | $ 5,171.7 | 0 | $ 87 | 3,181.8 | 4,172 | (524.4) | (1,744.7) | 5,171.7 | |
Balance (in shares) at Oct. 31, 2021 | 86,988,242 | 86,988,242 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 10.5 | ||||||||
Balance at May. 02, 2021 | (3.6) | 0 | $ 86.5 | 3,141.3 | 3,713.1 | (512.8) | (1,588.7) | 4,839.4 | |
Balance (in shares) at May. 02, 2021 | 86,546,242 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income attributable to PVH Corp. | 181.9 | 181.9 | |||||||
Foreign currency translation adjustments | (58.9) | (58.9) | |||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 43.3 | 43.3 | |||||||
Net gain on net investment hedges, net of tax | 16.1 | 16.1 | |||||||
Comprehensive (loss) income attributable to PVH Corp. | 182.4 | ||||||||
Settlement of awards under stock plans (in shares) | 142,962 | ||||||||
Settlement of awards under stock plans | $ 0.2 | 3.7 | 3.9 | ||||||
Stock-based compensation expense | 13.8 | 13.8 | |||||||
Acquisition of treasury shares during period | (3) | (3) | |||||||
Net loss attributable to redeemable non-controlling interest | (0.1) | ||||||||
Change in the economic interests of redeemable non-controlling interest | 3.7 | (3.7) | (3.7) | ||||||
Balance at Aug. 01, 2021 | 0 | 0 | $ 86.7 | 3,155.1 | 3,895 | (512.3) | (1,591.7) | 5,032.8 | |
Balance (in shares) at Aug. 01, 2021 | 86,689,204 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | 6.2 | ||||||||
Net (loss) income attributable to PVH Corp. | 279.7 | 279.7 | 279.7 | ||||||
Foreign currency translation adjustments | (55.6) | (55.6) | (55.6) | ||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 22.8 | 22.8 | 22.8 | ||||||
Net gain on net investment hedges, net of tax | 20.7 | 20.7 | 20.7 | ||||||
Comprehensive (loss) income attributable to PVH Corp. | 267.6 | 267.6 | |||||||
Settlement of awards under stock plans (in shares) | 299,038 | ||||||||
Settlement of awards under stock plans | $ 0.3 | 15.4 | 15.7 | ||||||
Stock-based compensation expense | 11.3 | 11.3 | |||||||
Dividends declared ($0.0375 per common share) | (2.7) | (2.7) | |||||||
Acquisition of treasury shares during period | (153) | (153) | |||||||
Balance at Oct. 31, 2021 | $ 5,171.7 | 0 | $ 87 | 3,181.8 | 4,172 | (524.4) | (1,744.7) | 5,171.7 | |
Balance (in shares) at Oct. 31, 2021 | 86,988,242 | 86,988,242 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | ||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 3.1 | ||||||||
Redeemable Non-Controlling Interest | 0 | ||||||||
Retained earnings | 4,172 | ||||||||
Retained earnings | 4,562.8 | ||||||||
Balance at Jan. 30, 2022 | $ 5,288.8 | 0 | 0 | $ 87.1 | 3,198.4 | 4,562.8 | (612.7) | (1,946.8) | 5,288.8 |
Balance (in shares) at Jan. 30, 2022 | 87,107,155 | 87,107,155 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income attributable to PVH Corp. | 133.1 | 133.1 | |||||||
Foreign currency translation adjustments | (131.8) | (131.8) | |||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 25.8 | 25.8 | |||||||
Net gain on net investment hedges, net of tax | 50.2 | 50.2 | |||||||
Comprehensive (loss) income attributable to PVH Corp. | 77.3 | ||||||||
Settlement of awards under stock plans (in shares) | 157,495 | ||||||||
Settlement of awards under stock plans | $ 0.2 | (0.1) | 0.1 | ||||||
Stock-based compensation expense | 10.1 | 10.1 | |||||||
Dividends declared ($0.0375 per common share) | (2.6) | (2.6) | |||||||
Acquisition of treasury shares during period | (105.2) | (105.2) | |||||||
Balance at May. 01, 2022 | 0 | 0 | $ 87.3 | 3,208.4 | 4,693.3 | (668.5) | (2,052) | 5,268.5 | |
Balance (in shares) at May. 01, 2022 | 87,264,650 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | ||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 9 | ||||||||
Balance at Jan. 30, 2022 | $ 5,288.8 | 0 | 0 | $ 87.1 | 3,198.4 | 4,562.8 | (612.7) | (1,946.8) | 5,288.8 |
Balance (in shares) at Jan. 30, 2022 | 87,107,155 | 87,107,155 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income attributable to PVH Corp. | $ 61.7 | ||||||||
Foreign currency translation adjustments | (357.9) | ||||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 41.7 | ||||||||
Net gain on net investment hedges, net of tax | 99.6 | ||||||||
Comprehensive (loss) income attributable to PVH Corp. | (154.9) | ||||||||
Dividends declared ($0.0375 per common share) | (7.7) | ||||||||
Balance at Oct. 30, 2022 | $ 4,822.8 | 0 | $ 87.6 | 3,233.2 | 4,616.8 | (829.3) | (2,285.5) | 4,822.8 | |
Balance (in shares) at Oct. 30, 2022 | 87,619,250 | 87,619,250 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 14.9 | ||||||||
Balance at May. 01, 2022 | 0 | 0 | $ 87.3 | 3,208.4 | 4,693.3 | (668.5) | (2,052) | 5,268.5 | |
Balance (in shares) at May. 01, 2022 | 87,264,650 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss) income attributable to PVH Corp. | 115.3 | 115.3 | |||||||
Foreign currency translation adjustments | (92) | (92) | |||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 5.5 | 5.5 | |||||||
Net gain on net investment hedges, net of tax | 28.6 | 28.6 | |||||||
Comprehensive (loss) income attributable to PVH Corp. | 57.4 | ||||||||
Settlement of awards under stock plans (in shares) | 245,128 | ||||||||
Settlement of awards under stock plans | $ 0.2 | (0.2) | 0 | ||||||
Stock-based compensation expense | 12.7 | 12.7 | |||||||
Dividends declared ($0.0375 per common share) | (2.6) | (2.6) | |||||||
Acquisition of treasury shares during period | (129.6) | (129.6) | |||||||
Balance at Jul. 31, 2022 | 0 | $ 87.5 | 3,220.9 | 4,806 | (726.4) | (2,181.6) | 5,206.4 | ||
Balance (in shares) at Jul. 31, 2022 | 87,509,778 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | ||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 1.8 | ||||||||
Redeemable Non-Controlling Interest | 0 | ||||||||
Net (loss) income attributable to PVH Corp. | (186.7) | (186.7) | (186.7) | ||||||
Foreign currency translation adjustments | (134.1) | (134.1) | (134.1) | ||||||
Net unrealized and realized gain related to cash flow hedges, net of tax | 10.4 | 10.4 | 10.4 | ||||||
Net gain on net investment hedges, net of tax | 20.8 | 20.8 | 20.8 | ||||||
Comprehensive (loss) income attributable to PVH Corp. | (289.6) | (289.6) | |||||||
Settlement of awards under stock plans (in shares) | 109,472 | ||||||||
Settlement of awards under stock plans | $ 0.1 | (0.2) | (0.1) | ||||||
Stock-based compensation expense | 12.5 | 12.5 | |||||||
Dividends declared ($0.0375 per common share) | (2.5) | (2.5) | |||||||
Acquisition of treasury shares during period | (103.9) | (103.9) | |||||||
Balance at Oct. 30, 2022 | $ 4,822.8 | $ 0 | $ 87.6 | $ 3,233.2 | $ 4,616.8 | $ (829.3) | $ (2,285.5) | $ 4,822.8 | |
Balance (in shares) at Oct. 30, 2022 | 87,619,250 | 87,619,250 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | ||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 4.1 | ||||||||
Redeemable Non-Controlling Interest | $ 0 | ||||||||
Retained earnings | $ 4,616.8 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 07, 2022 | Jun. 08, 2022 | Mar. 11, 2022 | Nov. 24, 2021 | Oct. 30, 2022 | Jul. 31, 2022 | May 01, 2022 | Oct. 31, 2021 | Aug. 01, 2021 | May 02, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Net unrealized and realized gain related to effective cash flow hedges, tax expense | $ 4.1 | $ 1.8 | $ 9 | $ 3.1 | $ 6.2 | $ 1.2 | $ 14.9 | $ 10.5 | ||||
Net gain on net investment hedges, tax expense | $ 6.8 | $ 9.6 | $ 16.6 | $ 6.7 | $ 5.2 | $ 1.5 | $ 33 | $ 13.4 | ||||
Dividends declared ($0.0375 per common share) | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | ||||
Acquisition of treasury shares, number of shares repurchased | 1,901,551 | 2,068,991 | 1,264,730 | 1,398,924 | 27,503 | 87,830 |
GENERAL
GENERAL | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
GENERAL | GENERAL PVH Corp. and its consolidated subsidiaries (collectively, the “Company”) constitute a global apparel company with a brand portfolio that includes TOMMY HILFIGER , Calvin Klein , Warner’s , Olga and True&Co. , which are owned, Van Heusen , IZOD , ARROW and Geoffrey Beene , which the Company owned through the second quarter of 2021 and now licenses back for certain product categories, and other licensed brands. The Company designs and markets branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, neckwear, handbags, accessories, footwear and other related products and licenses its owned brands globally over a broad array of product categories and for use in numerous discrete jurisdictions. The Company entered into a definitive agreement during the second quarter of 2021 to sell certain of its heritage brands trademarks, including Van Heusen , IZOD , ARROW and Geoffrey Beene , as well as certain related inventories of its Heritage Brands business, to Authentic Brands Group (“ABG”) and other parties (the “Heritage Brands transaction”). The Company completed the sale on the first day of the third quarter of 2021. References to the aforementioned and other brand names are to registered and common law trademarks owned by the Company or licensed to the Company by third parties and are identified by italicizing the brand name. The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Statements of Operations include its proportionate share of the net income or loss of these entities. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. The Company formed a joint venture in Ethiopia (“PVH Ethiopia”), in which the Company held an initial economic interest of 75%, with its partner’s 25% interest accounted for as a redeemable non-controlling interest (“RNCI”). The Company consolidated PVH Ethiopia in its consolidated financial statements. The Company closed in the fourth quarter of 2021 the manufacturing facility that was PVH Ethiopia’s sole operation. The closure did not have a material impact on the Company’s consolidated financial statements. Please see Note 5, “Redeemable Non-Controlling Interest,” for further discussion. Since the first day of the second quarter of 2022, the Company has been accounting for its operations in Turkey as highly inflationary, as the prior three-year cumulative inflation rate has surpassed 100%. Accordingly, the Company has changed the functional currency of its subsidiary in Turkey from the Turkish lira to the euro, which is the functional currency of its parent. The required remeasurement of monetary assets and liabilities denominated in Turkish lira into euro did not have a material impact on the Company’s results of operations during the thirteen and thirty-nine weeks ended October 30, 2022. As of October 30, 2022, net monetary assets denominated in Turkish lira represented less than 1% of the Company’s total net assets. The Company’s fiscal years are based on the 52-53 week periods ending on the Sunday closest to February 1 and are designated by the calendar year in which the fiscal year commences. References to a year are to the Company’s fiscal year, unless the context requires otherwise. The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not contain all disclosures required by U.S. GAAP for complete financial statements. Reference is made to the Company’s audited consolidated financial statements, including the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended January 30, 2022. The preparation of the interim financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates. The results of operations for the thirteen and thirty-nine weeks ended October 30, 2022 and October 31, 2021 are not necessarily indicative of those for a full fiscal year due, in part, to the COVID-19 pandemic and seasonal factors. Furthermore, the data contained in these consolidated financial statements are unaudited and are subject to year-end adjustments. However, in the opinion of management, all known adjustments have been made to present fairly the consolidated operating results for the unaudited periods. There is significant uncertainty due to inflationary pressures globally, the war in Ukraine, the COVID-19 pandemic and foreign currency volatility and their impacts on the Company’s business. If economic conditions were to worsen, the Company’s results of operations, financial condition and cash flows from operations may be materially and adversely impacted. War in Ukraine As a result of the war in Ukraine, the Company announced in March 2022 that it was temporarily closing stores and pausing commercial activities in Russia and Belarus. In the second quarter of 2022, the Company made the decision to exit from its Russia business, including the closure of its retail stores in Russia and the cessation of its wholesale operations in Russia and Belarus. Additionally, while the Company has no direct operations in Ukraine, virtually all of its wholesale customers and franchisees in Ukraine have closed their stores, which has resulted in a reduction in shipments to these customers and canceled orders. Approximately 2% of the Company’s revenue in 2021 was generated in Russia, Belarus and Ukraine. The war also has led to, and may lead to further, broader macroeconomic implications, including the weakening of the euro against the United States dollar, increases in fuel prices and volatility in the financial markets, as well as a decline in consumer spending. The Company assessed the impacts of the war in Ukraine on the estimates and assumptions used in preparing these consolidated financial statements, including, but not limited to, the allowance for credit losses, inventory reserves, and carrying values of long-lived assets. Based on these assessments, the Company recorded pre-tax noncash impairment charges related to long-lived assets of $43.6 million during the thirty-nine weeks ended October 30, 2022. Please see Note 12, “Fair Value Measurements,” for further discussion of the impairments. There is significant uncertainty regarding the extent to which the war and its broader macroeconomic implications, including the potential impacts on the broader European market, will further impact the Company’s business, financial condition and results of operations for the remainder of 2022 and beyond. COVID-19 Pandemic The COVID-19 pandemic has had, and may continue to have, a significant impact on the Company’s business, results of operations, financial condition and cash flows from operations. During the first quarter of 2021, pandemic-related pressures on the Company’s stores included temporary closures for a significant percentage of its stores in Europe, Canada and Japan. Pressures on its stores continued throughout 2021, with certain stores in Europe, Japan and Australia temporarily closed for varying periods of time in the second quarter, the majority of its stores in Australia closed temporarily in the third quarter, and the temporary closure of certain stores in Europe and China for varying periods of time in the fourth quarter. Further, a significant percentage of the Company’s stores globally were operating on reduced hours during the fourth quarter of 2021 as a result of increased levels of associate absenteeism due to the pandemic. COVID-related pressures have continued into 2022, although to a much lesser extent than in the prior year period in all regions except China, as strict lockdowns in China resulted, and continue to result, in extensive temporary store closures and significant reductions in consumer traffic and purchasing, as well as have impacted certain warehouses, which resulted in the temporary pause of deliveries to the Company’s wholesale customers and from its digital commerce business in the first half of 2022. In addition, the Company’s North America stores have been, and are expected to continue to be, challenged by the significant decrease in international tourists coming to the United States, although to a lesser extent than in 2021. Stores located in international tourist destinations have historically represented a significant portion of this business. The Company’s brick and mortar wholesale customers and its licensing partners also have experienced significant business disruptions as a result of the pandemic. The Company’s wholesale customers and franchisees globally generally have experienced temporary store closures and operating restrictions and obstacles in the same countries and at the same times as the Company. The pandemic also has impacted, and continues to impact, the Company’s supply chain partners, including third party manufacturers, logistics providers and other vendors, as well as the supply chains of its licensees. These supply chains have experienced, and may continue to experience in the future, disruptions as a result of closed factories or factories operating with a reduced workforce, or other logistics constraints, including vessel, container and other transportation shortages, labor shortages and port congestion due to the impact of the pandemic. |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Oct. 30, 2022 | |
Revenue [Abstract] | |
REVENUE | REVENUE The Company generates revenue primarily from sales of finished products under its owned trademarks through its wholesale and retail operations. The Company also generates royalty and advertising revenue from licensing rights to its trademarks to third parties. Revenue is recognized upon the transfer of control of products or services to the Company’s customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those products or services. Product Sales The Company generates revenue from the wholesale distribution of its products to traditional retailers (including for sale through their digital commerce sites), pure play digital commerce retailers, franchisees, licensees and distributors. Revenue is recognized upon transfer of control of goods to the customer, which generally occurs when title to goods is passed and risk of loss transfers to the customer. Depending on the contract terms, transfer of control is upon shipment of goods to or upon receipt of goods by the customer. Payment is typically due within 30 to 90 days. The amount of revenue recognized is net of returns, sales allowances and other discounts that the Company offers to its wholesale customers. The Company estimates returns based on an analysis of historical experience and individual customer arrangements and estimates sales allowances and other discounts based on seasonal negotiations, historical experience and an evaluation of current sales trends and market conditions. The Company also generates revenue from the retail distribution of its products through its freestanding stores, shop-in-shop/concession locations and digital commerce sites. Revenue is recognized at the point of sale in the stores and shop-in-shop/concession locations and upon estimated time of delivery for sales through the Company’s digital commerce sites, at which point control of the products passes to the customer. The amount of revenue recognized is net of returns, which are estimated based on an analysis of historical experience. Costs associated with coupons are recorded as a reduction of revenue at the time of coupon redemption. The Company excludes from revenue taxes collected from customers and remitted to government authorities related to sales of the Company’s products. Shipping and handling costs that are billed to customers are included in net sales. Customer Loyalty Programs The Company uses loyalty programs that offer customers of its retail businesses specified amounts off of future purchases for a specified period of time after certain levels of spending are achieved. Customers that are enrolled in the programs earn loyalty points for each purchase made. Loyalty points earned under the customer loyalty programs provide the customer a material right to acquire additional products and give rise to the Company having a separate performance obligation. For each transaction where a customer earns loyalty points, the Company allocates revenue between the products purchased and the loyalty points earned based on the relative standalone selling prices. Revenue allocated to loyalty points is recorded as deferred revenue until the loyalty points are redeemed or expire. Gift Cards The Company sells gift cards to customers in its retail stores and on certain of its digital commerce sites. The Company does not charge administrative fees on gift cards nor do they expire. Gift card purchases by a customer are prepayments for products to be provided by the Company in the future and are therefore considered to be performance obligations of the Company. Upon the purchase of a gift card by a customer, the Company records deferred revenue for the cash value of the gift card. Deferred revenue is relieved and revenue is recognized when the gift card is redeemed by the customer. The portion of gift cards that the Company does not expect to be redeemed (referred to as “breakage”) is recognized proportionately over the estimated customer redemption period, subject to the constraint that it must be probable that a significant reversal of revenue will not occur, if the Company determines that it does not have a legal obligation to remit the value of such unredeemed gift cards to any jurisdiction. License Agreements The Company generates royalty and advertising revenue from licensing the rights to access its trademarks to third parties, including the Company’s joint ventures. The license agreements generally are exclusive to a territory or product category, have terms in excess of one year and, in most cases, include renewal options. In exchange for providing these rights, the license agreements require the licensees to pay the Company a royalty and, in certain agreements, an advertising fee. In both cases, the Company generally receives the greater of (i) a sales-based percentage fee and (ii) a contractual minimum fee for each annual performance period under the license agreement. In addition to the rights to access its trademarks, the Company provides ongoing support to its licensees over the term of the agreements. As such, the Company’s license agreements are licenses of symbolic intellectual property and, therefore, revenue is recognized over time. For license agreements where the sales-based percentage fee exceeds the contractual minimum fee, the Company recognizes revenues as the licensed products are sold as reported to the Company by its licensees. For license agreements where the sales-based percentage fee does not exceed the contractual minimum fee, the Company recognizes the contractual minimum fee as revenue ratably over the contractual period. Under the terms of the license agreements, payments generally are due quarterly from the licensees. The Company records deferred revenue when amounts are received or receivable from the licensee in advance of the recognition of revenue. As of October 30, 2022, the contractual minimum fees on the portion of all license agreements not yet satisfied totaled $849.8 million, of which the Company expects to recognize $40.2 million as revenue during the remainder of 2022, $257.6 million in 2023 and $552.0 million thereafter. Deferred Revenue Changes in deferred revenue, which primarily relate to customer loyalty programs, gift cards and license agreements for the thirty-nine weeks ended October 30, 2022 and October 31, 2021 were as follows: Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 Deferred revenue balance at beginning of period $ 44.9 $ 55.8 Net additions to deferred revenue during the period 28.9 30.0 Reductions in deferred revenue for revenue recognized during the period (1) (39.0) (48.3) Reduction in deferred revenue related to the Heritage Brands transaction — (1.6) (2) Deferred revenue balance at end of period $ 34.8 $ 35.9 (1) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period and does not contemplate revenue recognized from amounts deferred during the period. The amounts include $2.7 million and $1.8 million of revenue recognized during the thirteen weeks ended October 30, 2022 and October 31, 2021, respectively. (2) The Company recorded a $1.6 million reduction in deferred revenue in connection with the Heritage Brands transaction. Please see Note 4, “Acquisitions and Divestitures,” for further discussion. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $12.5 million, $15.0 million and $12.0 million as of October 30, 2022, January 30, 2022 and October 31, 2021, respectively. Optional Exemptions The Company elected not to disclose the remaining performance obligations for contracts that have an original expected term of one year or less and expected sales-based percentage fees for the portion of all license agreements not yet satisfied. Please see Note 19, “Segment Data,” for information on the disaggregation of revenue by segment and distribution channel. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
INVENTORIES | INVENTORIESInventories are comprised principally of finished goods and are stated at the lower of cost or net realizable value, except for certain retail inventories in North America that are stated at the lower of cost or market using the retail inventory method. Cost for substantially all wholesale inventories in North America and certain wholesale and retail inventories in Asia is determined using the first-in, first-out method. Cost for all other inventories is determined using the weighted average cost method. The Company reviews current business trends and forecasts, inventory aging and discontinued merchandise categories to determine adjustments that it estimates will be needed to liquidate existing clearance inventories and record inventories at either the lower of cost or net realizable value or the lower of cost or market using the retail inventory method, as applicable. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Oct. 30, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Australia Acquisition The Company acquired in 2019 the approximately 78% ownership interest in Gazal Corporation Limited (“Gazal”) that it did not already own (the “Australia acquisition”). Mandatorily Redeemable Non-Controlling Interest Pursuant to the terms of the acquisition agreement, key executives of Gazal and PVH Brands Australia Pty. Limited (“PVH Australia”) exchanged a portion of their interests in Gazal for approximately 6% of the outstanding shares of the Company’s previously wholly owned subsidiary that acquired 100% of the ownership interests in the Australia business. The Company was obligated to purchase this 6% interest within two years of the Australia acquisition closing in two tranches: tranche 1 – 50% of the shares one year after the closing; and tranche 2 – all remaining shares two years after the closing. The Company recognized a liability of $26.2 million for the fair value of the 6% interest on the date of the Australia acquisition, based on exchange rates in effect on that date, which was being accounted for as a mandatorily redeemable non-controlling interest. In subsequent periods, the liability for the mandatorily redeemable non-controlling interest was adjusted each reporting period to its redemption value based on conditions that existed as of each subsequent balance sheet date, provided that the liability could not be adjusted below the amount initially recorded at the acquisition date. The Company recorded any such adjustments to the liability in interest expense in the Company’s Consolidated Statements of Operations. For the tranche 1 and tranche 2 shares, the measurement periods ended in 2019 and 2020, respectively. The Company paid the management shareholders an aggregate purchase price of $17.3 million for the tranche 1 shares in June 2020 and an aggregate purchase price of $24.4 million for the tranche 2 shares in June 2021 based on exchange rates in effect on the applicable payment dates. The Company presented these payments within the Consolidated Statements of Cash Flows as follows: (i) $12.7 million and $15.2 million as financing cash flows for the thirty-nine weeks ended November 1, 2020 and October 31, 2021, respectively, which represented the initial fair values of the liabilities for the tranche 1 and tranche 2 shares, respectively, recognized on the acquisition date, and (ii) $4.6 million and $9.2 million as operating cash flows for the thirty-nine weeks ended November 1, 2020 and October 31, 2021, respectively, for the tranche 1 and tranche 2 shares, respectively, attributable to interest. The Company had no remaining liability for the mandatorily redeemable non-controlling interest as of October 31, 2021. Sale of Certain Heritage Brands Trademarks and Other Assets The Company entered into a definitive agreement on June 23, 2021 to sell certain of its heritage brands trademarks, including Van Heusen , IZOD , ARROW and Geoffrey Beene , as well as certain related inventories of its Heritage Brands business, with a net carrying value of $97.8 million, to ABG and other parties for $222.9 million in cash. The Company completed the sale on August 2, 2021 for net proceeds of $216.3 million, after transaction costs. In connection with the closing of the transaction, the Company recorded a pre-tax gain of $118.5 million in the third quarter of 2021, which represented the excess of the amount of consideration received over the net carrying value of the assets, less costs to sell. The gain was recorded in other gain in the Company’s Consolidated Statement of Operations and included in the Heritage Brands Wholesale segment. |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTEREST | 9 Months Ended |
Oct. 30, 2022 | |
Redeemable Non-Controlling Interest [Abstract] | |
REDEEMABLE NON-CONTROLLING INTEREST | REDEEMABLE NON-CONTROLLING INTEREST The Company formed PVH Ethiopia during 2016 to operate a manufacturing facility that produced finished products for the Company for distribution primarily in the United States. The Company and its partner held initial economic interests of 75% and 25%, respectively, in PVH Ethiopia, with its partner’s 25% interest accounted for as an RNCI. The Company consolidated PVH Ethiopia in its consolidated financial statements. The capital structure of PVH Ethiopia was amended effective May 31, 2021 and, as a result, the Company solely managed and effectively owned all economic interests in the joint venture. The Company closed in the fourth quarter of 2021 the manufacturing facility that was PVH Ethiopia’s sole operation. The closure did not have a material impact on the Company’s consolidated financial statements. The fair value of the RNCI as of the date of formation of PVH Ethiopia was $0.1 million. The carrying amount of the RNCI prior to May 31, 2021 was adjusted to equal the redemption amount at the end of each reporting period, provided that this amount at the end of each reporting period could not be lower than the initial fair value adjusted for the minority shareholder’s share of net income or loss. Any adjustment to the redemption amount of the RNCI, determined after attribution of net income or loss of the RNCI, would have been recognized immediately in retained earnings of the Company, since it was probable that the RNCI would become redeemable in the future based on the passage of time. There was no adjustment to the redemption amount of the RNCI as of May 31, 2021. In connection with the amendment of the capital structure of PVH Ethiopia, the Company reclassified the carrying amount of the RNCI as of May 31, 2021 of $(3.7) million to additional paid-in capital. Following this reclassification, the Company stopped attributing any net income or loss in PVH Ethiopia to the redeemable non-controlling interest. |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 9 Months Ended |
Oct. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENTS IN UNCONSOLIDATED AFFILIATES The Company had investments in unconsolidated affiliates of $175.4 million, $165.3 million and $157.3 million as of October 30, 2022, January 30, 2022 and October 31, 2021, respectively. These investments are accounted for under the equity method of accounting and included in other assets in the Company’s Consolidated Balance Sheets. The Company received dividends of $16.2 million and $18.8 million from these investments during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, respectively. The Company entered into a definitive agreement on April 29, 2022 to sell its approximately 8% economic interest in Karl Lagerfeld Holding B.V. (“Karl Lagerfeld”) to a subsidiary of G-III Apparel Group, Ltd. (the “Karl Lagerfeld transaction”). The Company completed the sale on May 31, 2022 for approximately $20.5 million in cash, subject to customary adjustments, of which $19.1 million was received during the second quarter of 2022 and $1.4 million is being held in escrow and subject to exchange rate fluctuation. The carrying value of the Company’s investment in Karl Lagerfeld was $1.0 million immediately prior to the completion of the sale. In connection with the closing of the Karl Lagerfeld transaction, the Company recorded a pre-tax gain of $16.1 million during the second quarter of 2022, which reflected (i) the excess of the proceeds over the carrying value of the Karl Lagerfeld investment, less (ii) $3.4 million of foreign currency translation adjustment losses previously recorded in accumulated other comprehensive loss. The gain was included in equity in net income of unconsolidated affiliates in the Company’s Consolidated Statements of Operations, and recorded in corporate expenses not allocated to any reportable segments, consistent with how the Company has historically recorded its proportionate share of the net income or loss of its investment in Karl Lagerfeld. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the thirty-nine weeks ended October 30, 2022, by segment (please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments), were as follows: (In millions) Calvin Klein North America Calvin Klein International Tommy Hilfiger North America Tommy Hilfiger International Heritage Brands Wholesale Heritage Brands Retail Total Balance as of January 30, 2022 Goodwill, gross $ 781.8 $ 891.5 $ 203.0 $ 1,633.9 $ 105.0 $ — $ 3,615.2 Accumulated impairment losses (287.3) (394.0) — — (105.0) — (786.3) Goodwill, net 494.5 497.5 203.0 1,633.9 — — 2,828.9 Impairment (162.6) (77.3) (177.2) — — — (417.1) Currency translation (0.2) (25.1) — (172.5) — — (197.8) Balance as of October 30, 2022 Goodwill, gross 781.6 866.4 203.0 1,461.4 105.0 — 3,417.4 Accumulated impairment losses (449.9) (471.3) (177.2) — (105.0) — (1,203.4) Goodwill, net $ 331.7 $ 395.1 $ 25.8 $ 1,461.4 $ — $ — $ 2,214.0 The Company assesses the recoverability of goodwill and other indefinite-lived intangible assets annually, at the beginning of the third quarter of each fiscal year, and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. Impairment testing for other indefinite-lived intangible assets is done at the individual asset level. Intangible assets with finite lives are amortized over their estimated useful life and are tested for impairment, along with other long-lived assets, when events and circumstances indicate that the assets might be impaired. Indefinite-lived intangible assets and intangible assets with finite lives are tested for impairment prior to assessing the recoverability of goodwill. Please see Note 1, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 30, 2022 for discussion of the Company’s goodwill and other intangible assets impairment testing process. Goodwill For the 2022 annual goodwill impairment test performed as of the beginning of the third quarter of 2022, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test using a discounted cash flow method to estimate the fair value of its reporting units. In making this election, the Company considered the changes resulting from the current macroeconomic environment, in particular the recent increase in interest rates and the strengthening of the U.S. dollar against most major currencies in which the Company transacts business. As a result of the Company’s 2022 annual impairment test, the Company recorded $417.1 million of noncash impairment charges during the third quarter of 2022, which were included in goodwill impairment in the Company’s Consolidated Statement of Operations. The impairments were driven primarily by a significant increase in discount rates. The impairment charges, which related to the Calvin Klein Wholesale North America, Calvin Klein Licensing and Advertising International and Tommy Hilfiger Retail North America reporting units, were recorded to the Company’s segments as follows: $162.6 million in the Calvin Klein North America segment, $77.3 million in the Calvin Klein International segment and $177.2 million in the Tommy Hilfiger North America segment. Of these reporting units, Calvin Klein Licensing and Advertising International was determined to be partially impaired. The remaining carrying amount of goodwill allocated to this reporting unit as of the date of the test was $41.0 million. Holding all other assumptions constant, a 100 basis point change in the annual revenue growth rate assumption for this business would result in a change to the estimated fair value of the reporting unit of approximately $8 million. Likewise, a 100 basis point change in the weighted average cost of capital would result in a change to the estimated fair value of the reporting unit of approximately $6 million. While the Calvin Klein Licensing and Advertising International reporting unit was not determined to be fully impaired, it may be at risk of further impairment in the future if the related business does not perform as projected, or if market factors utilized in the impairment analysis deteriorate, including an unfavorable change in long-term growth rates or the weighted average cost of capital. With respect to the Company’s other reporting units that were not determined to be impaired, the Calvin Klein Licensing and Advertising North America reporting unit had an estimated fair value that exceeded its carrying amount of $464.4 million by 9%. The carrying amount of goodwill allocated to this reporting unit as of the date of the test was $330.4 million. Holding all other assumptions constant, a 100 basis point change in the annual revenue growth rate assumption for this business would result in a change to the estimated fair value of the reporting unit of approximately $43 million. Likewise, a 100 basis point change in the weighted average cost of capital would result in a change to the estimated fair value of the reporting unit of approximately $34 million. While the Calvin Klein Licensing and Advertising North America reporting unit was not determined to be impaired, it may be at risk of future impairment if the related business does not perform as projected, or if market factors utilized in the impairment analysis deteriorate, including an unfavorable change in the long-term growth rate or the weighted average cost of capital. The fair value of the reporting units for goodwill impairment testing was determined using an income approach and validated using a market approach. The income approach was based on discounted projected future (debt-free) cash flows for each reporting unit. The discount rates applied to these cash flows were based on the weighted average cost of capital for each reporting unit, which takes market participant assumptions into consideration, inclusive of a Company-specific 4% risk premium to account for the additional risk of uncertainty perceived by market participants related to the Company’s overall cash flows due to the macroeconomic environment. Estimated future operating cash flows were discounted at rates of 16.0% or 16.5%, depending on the reporting unit, to account for the relative risks of the estimated future cash flows. For the market approach, used to validate the results of the income approach method, the Company used the guideline company method, which analyzes market multiples of adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) for a group of comparable public companies. The market multiples used in the valuation are based on the relative strengths and weaknesses of the reporting unit compared to the selected guideline companies. The Company classified the fair values of its reporting units as Level 3 fair value measurements due to the use of significant unobservable inputs. Indefinite-Lived Intangible Assets For the 2022 annual impairment test of the TOMMY HILFIGER and Calvin Klein tradenames and the reacquired perpetual license rights for TOMMY HILFIGER in India performed as of the beginning of the third quarter of 2022, the Company elected to first assess qualitative factors to determine whether it was more likely than not that the fair value of any asset was less than its carrying amount. For these assets, no impairment was identified as a result of the Company’s most recent quantitative impairment test for these assets and the fair values of these indefinite-lived intangible assets substantially exceeded their carrying amounts. The asset with the least excess fair value had an estimated fair value that exceeded its carrying amount by approximately 183% as of the date of the Company’s most recent quantitative impairment test. The Company assessed relevant events and circumstances, including industry, market and macroeconomic conditions, as well as Company and asset-specific factors, including changes in the weighted average cost of capital for each of its indefinite-lived intangible assets since the date of the most recent quantitative test and the Company’s recent financial performance and updated financial forecasts as compared to those used in the most recent quantitative tests. After assessing these events and circumstances, the Company determined qualitatively that it was not more likely than not that the fair values of these indefinite-lived intangible assets were less than their carrying amounts and concluded that the quantitative impairment test was not required. For the 2022 annual impairment test of the Warner’s tradename and the reacquired perpetual license rights recorded in connection with the Australia acquisition performed as of the beginning of the third quarter of 2022, the Company elected to bypass the qualitative assessment and proceeded directly to the quantitative impairment test. With regard to the reacquired perpetual license rights, the Company determined that its fair value substantially exceeded its carrying amount and, therefore, the asset was not impaired. The fair value of the Warner’s tradename exceeded its carrying amount of $95.8 million by 4% at the testing date. Holding all other assumptions constant, a 100 basis point change in the annual revenue growth rate of the related business would result in a change to the estimated fair value of the asset of approximately $7 million. Likewise, a 100 basis point change in the weighted average cost of capital would result in a change to the estimated fair value of the asset of approximately $7 million. While the Warner’s tradename was not determined to be impaired, it may be at risk of future impairment if the related business does not perform as projected, or if market factors utilized in the impairment analysis deteriorate, including an unfavorable change in the long-term growth rate or the weighted average cost of capital. The fair value of the Warner’s tradename was determined using an income-based relief-from-royalty method. Under this method, the value of an asset is estimated based on the hypothetical cost savings that accrue as a result of not having to license the tradename from another party. These cash flows are discounted to present value using a discount rate that factors in the relative risk of the intangible asset. The Company discounted the cash flows used to value the Warner’s tradename at a rate of 16.0%. The fair value of the Company’s reacquired perpetual license rights recorded in connection with the Australia |
RETIREMENT AND BENEFIT PLANS
RETIREMENT AND BENEFIT PLANS | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company, as of October 30, 2022, has two noncontributory qualified defined benefit pension plans covering substantially all employees resident in the United States who were hired prior to January 1, 2022, and who meet certain age and service requirements. The plans provide monthly benefits upon retirement generally based on career average compensation and years of credited service. The plans also provide participants with the option to receive their benefits in the form of lump sum payments. Vesting in plan benefits generally occurs after five years of service. The Company refers to these two plans as its “Pension Plans.” The Company also has three noncontributory unfunded non-qualified supplemental defined benefit pension plans, including: – A plan for certain former members of Tommy Hilfiger’s domestic senior management. The plan is frozen and, as a result, participants do not accrue additional benefits. – A capital accumulation program for certain former senior executives. Under the individual participants’ agreements, the participants in the program will receive a predetermined amount during the ten years following the attainment of age 65, provided that prior to the termination of employment with the Company, the participant has been in the plan for at least ten years and has attained age 55. – A plan for certain employees resident in the United States hired prior to January 1, 2022, who meet certain age and service requirements that provides benefits for compensation in excess of Internal Revenue Service earnings limits and requires payments to vested employees upon, or shortly after, employment termination or retirement. The Company refers to these three plans as its “SERP Plans.” The components of net benefit cost recognized were as follows: Pension Plans Pension Plans Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Service cost $ 7.8 $ 9.9 $ 23.5 $ 30.4 Interest cost 6.3 6.2 19.0 18.6 Expected return on plan assets (10.4) (11.2) (31.3) (33.4) Special termination benefits — 0.2 — 0.5 Heritage Brands transaction gain — (1.5) — (1.5) Total $ 3.7 $ 3.6 $ 11.2 $ 14.6 SERP Plans SERP Plans Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Service cost $ 0.6 $ 1.1 $ 1.9 $ 3.5 Interest cost 0.7 0.8 2.1 2.4 Special termination benefits — 1.2 — 1.8 Heritage Brands transaction gain — (0.3) — (0.3) Total $ 1.3 $ 2.8 $ 4.0 $ 7.4 The Company completed the Heritage Brands transaction on the first day of the third quarter of 2021. In connection with the sale, the employment of certain employees based in the United States engaged in the Heritage Brands business was terminated during the third quarter of 2021. However, the Company retained the liability for any deferred vested benefits earned by these employees under its retirement plans. No further benefits were accrued under the plans for these employees and as a result, the Company recognized a gain of $1.8 million in the third quarter of 2021, with a corresponding decrease to its pension benefit obligation. For certain eligible employees affected by the transaction, the Company provided an enhanced retirement benefit and as a result recognized $1.4 million of special termination benefit costs during the third quarter of 2021 with a corresponding increase to its pension benefit obligation. These amounts were included in other gain in the Company’s Consolidated Statement of Operations. Please see Note 4, “Acquisitions and Divestitures,” for further discussion of the sale of certain heritage brands trademarks and other assets. The Company provided enhanced retirement benefits to terminated employees during the second quarter of 2021 and as a result recognized $0.9 million of special termination benefit costs with a corresponding increase to its pension benefit obligation. The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States. As a result of the Company’s acquisition of The Warnaco Group, Inc. (“Warnaco”), the Company also provides certain postretirement health care and life insurance benefits to certain Warnaco retirees resident in the United States. Retirees contribute to the cost of the applicable plan, both of which are unfunded and frozen. The Company refers to these two plans as its “Postretirement Plans.” Net benefit cost related to the Postretirement Plans was immaterial for the thirteen and thirty-nine weeks ended October 30, 2022 and October 31, 2021. The components of net benefit cost are recorded in the Company’s Consolidated Statements of Operations as follows: (i) the service cost component is recorded in selling, general and administrative (“SG&A”) expenses, (ii) the Heritage Brands transaction gain and the related special termination benefit costs are recorded in other gain, and (iii) the other components are recorded in non-service related pension and postretirement income. |
DEBT
DEBT | 9 Months Ended |
Oct. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Borrowings The Company had $18.0 million of borrowings outstanding under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies as of October 30, 2022. The weighted average interest rate on funds borrowed as of October 30, 2022 was 0.17%. These facilities provided for borrowings of up to $182.6 million based on exchange rates in effect on October 30, 2022 and are utilized primarily to fund working capital needs. The maximum amount of borrowings outstanding under these facilities during the thirty-nine weeks ended October 30, 2022 was $21.9 million. Commercial Paper The Company has the ability to issue, from time to time, unsecured commercial paper notes with maturities that vary but do not exceed 397 days from the date of issuance primarily to fund working capital needs. The Company had $80.0 million of borrowings outstanding under the commercial paper note program as of October 30, 2022. The weighted average interest rate on funds borrowed under the program as of October 30, 2022 was 4.05%. The maximum amount of borrowings temporarily outstanding under the program during the thirty-nine weeks ended October 30, 2022 was $130.0 million. 2021 Unsecured Revolving Credit Facility On April 28, 2021, the Company replaced its 364-day $275.0 million United States dollar-denominated unsecured revolving credit facility, which matured on April 7, 2021, with a 364-day $275.0 million United States dollar-denominated unsecured revolving credit facility (the “2021 facility”). The 2021 facility matured on April 27, 2022, and was not replaced. The Company paid $0.8 million of debt issuance costs in connection with the 2021 facility, which were amortized over the term of the debt agreement. The Company had no borrowings outstanding under the 2021 facility during 2022 prior to its maturity on April 27, 2022. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 10/30/22 1/30/22 10/31/21 Senior unsecured Term Loan A facilities due 2024 (1)(2) $ 437.2 $ 513.5 $ 743.4 7 3/4% debentures due 2023 99.9 99.8 99.8 3 5/8% senior unsecured euro notes due 2024 (2) 520.0 580.8 606.8 4 5/8% senior unsecured notes due 2025 496.7 495.7 495.4 3 1/8% senior unsecured euro notes due 2027 (2) 592.6 662.6 692.6 Total 2,146.4 2,352.4 2,638.0 Less: Current portion of long-term debt 37.3 34.8 32.8 Long-term debt $ 2,109.1 $ 2,317.6 $ 2,605.2 (1) The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was zero and €440.6 million, respectively, as of October 30, 2022. (2) The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. Please see Note 12, “Fair Value Measurements,” for the fair value of the Company’s long-term debt as of October 30, 2022, January 30, 2022 and October 31, 2021. The Company’s mandatory long-term debt repayments for the remainder of 2022 through 2027 were as follows as of October 30, 2022: (In millions) Fiscal Year Amount (1) Remainder of 2022 $ 9.3 2023 137.3 2024 914.2 2025 500.0 2026 — 2027 597.1 (1) A portion of the Company’s mandatory long-term debt repayments is denominated in euros and subject to changes in the exchange rate of the United States dollar against the euro. Total debt repayments for the remainder of 2022 through 2027 exceed the total carrying amount of the Company’s debt as of October 30, 2022 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of October 30, 2022, approximately 80% of the Company’s long-term debt had fixed interest rates, with the remainder at variable interest rates. 2019 Senior Unsecured Credit Facilities The Company has senior unsecured credit facilities due April 29, 2024 (as amended, the “2019 facilities”) that consist of a €500.0 million euro-denominated Term Loan A facility (the “Euro TLA facility”) and senior unsecured revolving credit facilities consisting of (i) a $675.0 million United States dollar-denominated revolving credit facility, (ii) a CAD $70.0 million Canadian dollar-denominated revolving credit facility available in United States dollars or Canadian dollars, (iii) a €200.0 million euro-denominated revolving credit facility available in euro, Australian dollars and other agreed foreign currencies and (iv) a $50.0 million United States dollar-denominated revolving credit facility available in United States dollars or Hong Kong dollars. The 2019 facilities also consisted of a $1,093.2 million United States dollar-denominated Term Loan A facility (the “USD TLA facility”). The Company repaid the outstanding principal balance under its USD TLA facility in 2021. Borrowings under the 2019 facilities bear interest at variable rates calculated in the manner set forth in the terms of the 2019 facilities. The Company had loans outstanding of $437.2 million, net of debt issuance costs and based on applicable exchange rates, under the Euro TLA facility, no borrowings outstanding under the senior unsecured revolving credit facilities, and $10.8 million of outstanding letters of credit under the senior unsecured revolving credit facilities as of October 30, 2022. The Company made payments totaling $22.5 million and $844.2 million on its term loans under the 2019 facilities during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, respectively. The current applicable margin with respect to the Euro TLA facility and each revolving credit facility as of October 30, 2022 was 1.250% for adjusted Eurocurrency rate loans and 0.250% for base rate or Canadian prime rate loans. The applicable margin for borrowings under the Euro TLA facility and the revolving credit facilities is subject to adjustment (i) after the date of delivery of the compliance certificate and financial statements, with respect to each of the Company’s fiscal quarters, based upon the Company’s net leverage ratio or (ii) after the date of delivery of notice of a change in the Company’s public debt rating by Standard & Poor’s or Moody’s. The Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for any outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during the thirty-nine weeks ended October 31, 2021 (no interest rate swap agreements were entered into or in effect during the thirty-nine weeks ended October 30, 2022): (In millions) Designation Date Commencement Date Initial Notional Amount Notional Amount Outstanding as of October 30, 2022 Fixed Rate Expiration Date March 2020 February 2021 $ 50.0 $ — (1) 0.562% February 2023 February 2020 February 2021 50.0 — (1) 1.1625% February 2023 February 2020 February 2020 50.0 — (1) 1.2575% February 2023 August 2019 February 2020 50.0 — (1) 1.1975% February 2022 June 2019 February 2020 50.0 — (1) 1.409% February 2022 June 2019 June 2019 50.0 — 1.719% July 2021 January 2019 February 2020 50.0 — 2.4187% February 2021 November 2018 February 2019 139.2 — 2.8645% February 2021 October 2018 February 2019 115.7 — 2.9975% February 2021 June 2018 August 2018 50.0 — 2.6825% February 2021 (1) The Company terminated in 2021 the interest rate swap agreements due to expire in February 2022 and February 2023 in connection with the early repayment of the outstanding principal balance under its USD TLA facility. The 2019 facilities require the Company to comply with customary affirmative, negative and financial covenants, including a minimum interest coverage ratio and a maximum net leverage ratio, calculated in the manner set forth in the terms of the 2019 facilities. Please see Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 30, 2022 for further discussion of the 2019 facilities. 7 3/4% Debentures Due 2023 The Company has outstanding $100.0 million of debentures due November 15, 2023 that accrue interest at the rate of 7 3/4%. The debentures are not redeemable at the Company’s option prior to maturity. 3 5/8% Euro Senior Notes Due 2024 The Company has outstanding €525.0 million principal amount of 3 5/8% senior notes due July 15, 2024. The Company may redeem some or all of these notes at any time prior to April 15, 2024 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after April 15, 2024 at their principal amount plus any accrued and unpaid interest. 4 5/8% Senior Notes Due 2025 The Company has outstanding $500.0 million principal amount of 4 5/8% senior notes due July 10, 2025. The Company may redeem some or all of these notes at any time prior to June 10, 2025 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after June 10, 2025 at their principal amount plus any accrued and unpaid interest. 3 1/8% Euro Senior Notes Due 2027 The Company has outstanding €600.0 million principal amount of 3 1/8% senior notes due December 15, 2027. The Company may redeem some or all of these notes at any time prior to September 15, 2027 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, the Company may redeem some or all of these notes on or after September 15, 2027 at their principal amount plus any accrued and unpaid interest. The Company’s financing arrangements contain financial and non-financial covenants and customary events of default. As of October 30, 2022, the Company was in compliance with all applicable financial and non-financial covenants under its financing arrangements. The Company also has standby letters of credit outside of its 2019 facilities primarily to collateralize the Company’s insurance and lease obligations. The Company had $57.0 million of these standby letters of credit outstanding as of October 30, 2022. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rates for the thirteen weeks ended October 30, 2022 and October 31, 2021 were 19.8% and 20.7%, respectively. The effective income tax rate for the thirteen weeks ended October 30, 2022 reflected a $(46.1) million income tax benefit recorded on $(232.8) million of pre-tax losses. The effective income tax rate for the thirteen weeks ended October 31, 2021 reflected a $72.9 million income tax expense recorded on $352.6 million of pre-tax income. The effective income tax rates for the thirteen weeks ended October 30, 2022 and October 31, 2021 were relatively flat as compared to the United States statutory income tax rate. The effective income tax rates for the thirty-nine weeks ended October 30, 2022 and October 31, 2021 were 45.1% and 27.4%, respectively. The effective income tax rate for the thirty-nine weeks ended October 30, 2022 reflected a $50.7 million income tax expense recorded on $112.4 million of pre-tax income. The effective income tax rate for the thirty-nine weeks ended October 31, 2021 reflected a $212.1 million income tax expense recorded on $773.3 million of pre-tax income. The effective income tax rate for the thirty-nine weeks ended October 30, 2022 was higher than the United States statutory income tax rate primarily due to (i) the impact of the $417.1 million noncash goodwill impairment charge recorded during the third quarter of 2022, which resulted in a pre-tax loss with no tax benefit and is factored into the annualized effective tax rate, and (ii) the mix of foreign and domestic pre-tax results, partially offset by (iii) the favorable impact on certain liabilities for uncertain tax positions resulting from the expiration of applicable statutes of limitation and the settlement of a multi-year audit from an international jurisdiction. The effective income tax rate for the thirty-nine weeks ended October 31, 2021 was higher than the United States statutory income tax rate primarily due to the tax on foreign earnings in excess of a deemed return on tangible assets of foreign corporations (known as “GILTI”) and the mix of foreign and domestic pre-tax results. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act, with tax provisions primarily focused on implementing a 15% corporate minimum tax based on global adjusted financial statement income and a 1% excise tax on share repurchases. The corporate minimum tax will be effective in fiscal 2023 and the excise tax is effective January 1, 2023. Based on the Company’s current analysis, it does not expect the new law to have a material impact on its consolidated financial statements. The Company files income tax returns in more than 40 international jurisdictions each year. A substantial amount of the Company’s earnings are in international jurisdictions, particularly the Netherlands and Hong Kong SAR, where the income tax rates, when coupled with special rates levied on income from certain of the Company’s jurisdictional activities, have historically been lower than the United States statutory income tax rate. In 2022, the Company no longer benefits from these special rates. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Cash Flow Hedges The Company has exposure to changes in foreign currency exchange rates related to anticipated cash flows associated with certain international inventory purchases. The Company uses foreign currency forward exchange contracts to hedge against a portion of this exposure. The Company also has exposure to interest rate volatility related to its 2019 facilities borrowings, which bear interest at a rate equal to an applicable margin plus a variable rate. The Company from time to time enters into interest rate swap agreements to hedge against a portion of the exposure related to its term loans under the 2019 facilities. No interest rate swap agreements were outstanding as of October 30, 2022 and January 30, 2022. As of October 30, 2022, approximately 80% of the Company’s long-term debt was at a fixed interest rate, with the remaining (euro-denominated) balance at a variable rate. Please see Note 9, “Debt,” for further discussion of the 2019 facilities and these agreements. The Company records the foreign currency forward exchange contracts and interest rate swap agreements at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The foreign currency forward exchange contracts associated with certain international inventory purchases and any interest rate swap agreements are designated as effective hedging instruments (collectively, “cash flow hedges”). As such, the changes in the fair value of the cash flow hedges are recorded in equity as a component of accumulated other comprehensive loss (“AOCL”). No amounts were excluded from effectiveness testing. During the thirteen weeks ended October 31, 2021, the Company dedesignated certain cash flow hedges in connection with the voluntary payments that were made or expected to be made at the time under its USD TLA facility, as the underlying interest payments were no longer probable to occur, which resulted in the release of a $1.3 million loss from AOCL into the Company’s Consolidated Statement of Operations. Net Investment Hedges The Company has exposure to changes in foreign currency exchange rates related to the value of its investments in foreign subsidiaries denominated in a currency other than the United States dollar. To hedge against a portion of this exposure, the Company designated the carrying amounts of its (i) €600.0 million principal amount of 3 1/8% senior notes due 2027 and (ii) €525.0 million principal amount of 3 5/8% senior notes due 2024 (collectively, “foreign currency borrowings”), that were issued by PVH Corp., a U.S.-based entity, as net investment hedges of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. Please see Note 9, “Debt,” for further discussion of the Company’s foreign currency borrowings. The Company records the foreign currency borrowings at carrying value in its Consolidated Balance Sheets. The carrying value of the foreign currency borrowings is remeasured at the end of each reporting period to reflect changes in the foreign currency exchange spot rate. Since the foreign currency borrowings are designated as net investment hedges, such remeasurement is recorded in equity as a component of AOCL. The fair value and the carrying value of the foreign currency borrowings designated as net investment hedges were $1,013.9 million and $1,112.6 million, respectively, as of October 30, 2022, $1,361.7 million and $1,243.4 million, respectively, as of January 30, 2022 and $1,447.5 million and $1,299.4 million, respectively, as of October 31, 2021. The Company evaluates the effectiveness of its net investment hedges at inception and at the beginning of each quarter thereafter. No amounts were excluded from effectiveness testing. Undesignated Contracts The Company records immediately in earnings changes in the fair value of hedges that are not designated as effective hedging instruments (“undesignated contracts”), which primarily include foreign currency forward exchange contracts related to third party and intercompany transactions, and intercompany loans that are not of a long-term investment nature. Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying balances. The Company does not use derivative or non-derivative financial instruments for trading or speculative purposes. The cash flows from the Company’s hedges are presented in the same category in the Company’s Consolidated Statements of Cash Flows as the items being hedged. The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: Assets Liabilities 10/30/22 1/30/22 10/31/21 10/30/22 1/30/22 10/31/21 (In millions) Other Current Assets Other Assets Other Current Assets Other Assets Other Current Assets Other Assets Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 95.3 $ 1.8 $ 48.0 $ 2.7 $ 25.1 $ 1.3 $ 2.9 $ — $ 0.6 $ — $ 1.4 $ 0.1 Interest rate swap agreements — — — — — — — — — — 0.3 — Total contracts designated as cash flow hedges 95.3 1.8 48.0 2.7 25.1 1.3 2.9 — 0.6 — 1.7 0.1 Undesignated contracts: Foreign currency forward exchange contracts 0.5 — 5.6 — 3.4 — 3.1 — 1.1 — 2.1 — Interest rate swap agreements — — — — — — — — — — 0.5 0.1 Total undesignated contracts 0.5 — 5.6 — 3.4 — 3.1 — 1.1 — 2.6 0.1 Total $ 95.8 $ 1.8 $ 53.6 $ 2.7 $ 28.5 $ 1.3 $ 6.0 $ — $ 1.7 $ — $ 4.3 $ 0.2 The notional amount outstanding of foreign currency forward exchange contracts was $1,307.0 million at October 30, 2022. Such contracts expire principally between November 2022 and March 2024. The following tables summarize the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: Gain Recognized in Other Comprehensive Loss (In millions) Thirteen Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 24.4 $ 17.2 Interest rate swap agreements — 0.1 Foreign currency borrowings (net investment hedges) 27.6 27.4 Total $ 52.0 $ 44.7 Thirty-Nine Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 70.2 $ 82.0 Interest rate swap agreements — 0.2 Foreign currency borrowings (net investment hedges) 132.6 54.7 Total $ 202.8 $ 136.9 Amount of Gain (Loss) Reclassified from AOCL into Income (Expense), Consolidated Statements of Operations Location, and Total Amount of Consolidated Statements of Operations Line Item (In millions) Amount Reclassified Location Total Statements of Operations Amount Thirteen Weeks Ended 10/30/22 10/31/21 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 9.9 $ (6.6) Cost of goods sold $ 1,006.6 $ 987.4 Interest rate swap agreements — (1.3) SG&A (1) 1,085.0 1,097.3 Interest rate swap agreements — (0.7) Interest expense 21.1 25.9 Total $ 9.9 $ (8.6) Thirty-Nine Weeks Ended 10/30/22 10/31/21 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 13.6 $ 1.2 Cost of goods sold $ 2,803.1 $ 2,817.2 Interest rate swap agreements — (1.3) SG&A (1) 3,194.8 3,198.7 Interest rate swap agreements — (2.6) Interest expense 65.9 83.7 Total $ 13.6 $ (2.7) (1) The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021 as discussed in the section entitled “Cash Flow Hedges” above. A net gain in AOCL on foreign currency forward exchange contracts at October 30, 2022 of $113.8 million is estimated to be reclassified in the next 12 months in the Company’s Consolidated Statement of Operations to cost of goods sold as the underlying inventory hedged by such forward exchange contracts is sold. Amounts recognized in AOCL for foreign currency borrowings would be recognized in earnings only upon the sale or substantially complete liquidation of the hedged net investment. The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Statements of Operations: (In millions) Gain (Loss) Recognized in Income (Expense) Thirteen Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts $ 8.7 $ (4.7) Thirty-Nine Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts $ 35.3 $ (6.9) The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021 as discussed in the section entitled “Cash Flow Hedges” above. Following the dedesignation, the effect of these interest rate swap agreements recognized in SG&A expenses in the Company’s Consolidated Statements of Operations was immaterial for the thirteen weeks ended October 31, 2021. The Company had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of October 30, 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy prioritizes the inputs used to measure fair value as follows: Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 – Observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs derived principally from or corroborated by observable market data. Level 3 – Unobservable inputs reflecting the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability based on the best information available. In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis: 10/30/22 1/30/22 10/31/21 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 97.6 N/A $ 97.6 N/A $ 56.3 N/A $ 56.3 N/A $ 29.8 N/A $ 29.8 Rabbi trust assets 0.7 5.1 N/A 5.8 — 0.3 N/A 0.3 N/A N/A N/A N/A Total Assets $ 0.7 $ 102.7 N/A $ 103.4 $ — $ 56.6 N/A $ 56.6 N/A $ 29.8 N/A $ 29.8 Liabilities: Foreign currency forward exchange contracts N/A $ 6.0 N/A $ 6.0 N/A $ 1.7 N/A $ 1.7 N/A $ 3.6 N/A $ 3.6 Interest rate swap agreements N/A — N/A — N/A — N/A — N/A 0.9 N/A 0.9 Total Liabilities N/A $ 6.0 N/A $ 6.0 N/A $ 1.7 N/A $ 1.7 N/A $ 4.5 N/A $ 4.5 The fair value of the foreign currency forward exchange contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the Level 1 rabbi trust assets, which consist of investments in mutual funds, is valued at the net asset value of the funds, as determined by the closing price in the active market in which the individual fund is traded. The fair value of the Level 2 rabbi trust assets, which consist of investments in common collective trust funds, is valued at the net asset value of the funds, as determined by the fund family. Funds are redeemable on a daily basis without restriction. The fair value of the interest rate swap agreements is based on observable interest rate yield curves and represents the expected discounted cash flows underlying the financial instruments. The Company established a rabbi trust that, beginning January 1, 2022, holds investments related to the Company’s supplemental savings plan. The rabbi trust assets, which generally mirror the investment elections made by eligible plan participants, were $5.8 million and $0.3 million as of October 30, 2022 and January 30, 2022, respectively, and recorded in the Company’s Consolidated Balance Sheets as follows: $0.4 million and $5.4 million were included in other current assets and other assets, respectively, as of October 30, 2022, and $0.3 million was included in other assets as of January 30, 2022. The corresponding deferred compensation liability was included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets as of October 30, 2022 and January 30, 2022. Unrealized losses recognized on the rabbi trust investments were immaterial during the thirty-nine weeks ended October 30, 2022. There were no transfers between any levels of the fair value hierarchy for any of the Company’s fair value measurements. The Company’s non-financial assets, which primarily consist of goodwill, other intangible assets, property, plant and equipment, and operating lease right-of-use assets, are not required to be measured at fair value on a recurring basis, and instead are reported at their carrying amount. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying amount may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial assets are assessed for impairment. If the fair value is determined to be lower than the carrying amount, an impairment charge is recorded to write down the asset to its fair value. The following table shows the fair values of the Company’s non-financial assets that were required to be remeasured at fair value on a non-recurring basis during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value As Of Impairment Date Total Impairments 10/30/22 Level 1 Level 2 Level 3 Operating lease right-of-use assets N/A N/A $ — $ — $ 26.4 Property, plant and equipment, net N/A N/A — — 17.2 Goodwill N/A N/A 41.0 41.0 417.1 10/31/21 Operating lease right-of-use assets N/A N/A — — 17.8 Property, plant and equipment, net N/A N/A — — 17.3 Operating lease right-of-use assets with a carrying amount of $26.4 million and property, plant and equipment with a carrying amount of $17.2 million were written down to a fair value of zero during the thirty-nine weeks ended October 30, 2022 in connection with the Company’s decision in the second quarter of 2022 to exit from its Russia business. Please see Note 16, “Exit Activity Costs,” for further discussion of the Russia business exit costs. Fair value of the Company’s operating lease right-of-use assets and property, plant and equipment were determined to be zero in line with the Company’s estimated future cash flows for the Russia business asset group. Goodwill with a carrying amount of $458.1 million was written down to a fair value of $41.0 million during the thirty-nine weeks ended October 30, 2022. Please see Note 7, “Goodwill and Other Intangible Assets,” for further discussion. The $460.7 million of impairment charges during the thirty-nine weeks ended October 30, 2022 were recorded in the Company’s Consolidated Statement of Operations, of which $417.1 was included in goodwill impairment and $43.6 million was included in SG&A expenses. The $460.7 million of impairment charges were recorded to the Company’s segments as follows: $177.2 million in the Tommy Hilfiger North America segment, $162.6 million in the Calvin Klein North America segment, $87.2 million in the Calvin Klein International segment and $33.7 million in the Tommy Hilfiger International segment. Operating lease right-of-use assets with a carrying amount of $17.8 million and property, plant and equipment with a carrying amount of $17.3 million were written down to a fair value of zero during the thirty-nine weeks ended October 31, 2021 primarily as a result of actions taken by the Company to reduce its real estate footprint, including reductions in office space. Please see Note 16, “Exit Activity Costs,” for further discussion of these restructuring activities. Fair value of the Company’s operating lease right-of-use assets was determined based on the discounted cash flows of estimated sublease income using market participant assumptions, which considered the short length of the remaining lease term for certain of these assets, and current real estate trends and market conditions. Fair value of the Company’s property, plant and equipment was determined based on the estimated discounted future cash flows associated with the assets using market participant assumptions. The $35.1 million of impairment charges during the thirty-nine weeks ended October 31, 2021 were included in SG&A expenses in the Company’s Consolidated Statement of Operations and recorded to the Company’s segments as follows: $1.4 million in the Heritage Brands Wholesale segment and $33.7 million in corporate expenses not allocated to any reportable segments. The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt were as follows: 10/30/22 1/30/22 10/31/21 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 457.0 $ 457.0 $ 1,242.5 $ 1,242.5 $ 1,298.7 $ 1,298.7 Short-term borrowings 98.0 98.0 10.8 10.8 27.8 27.8 Long-term debt (including portion classified as current) 2,146.4 2,031.7 2,352.4 2,522.4 2,638.0 2,853.3 The fair values of cash and cash equivalents and short-term borrowings approximate their carrying amounts due to the short-term nature of these instruments. The Company estimates the fair value of its long-term debt using quoted market prices as of the last business day of the applicable quarter. The Company classifies the measurement of its long-term debt as a Level 1 measurement. The carrying amounts of long-term debt reflect the unamortized portions of debt issuance costs and the original issue discounts. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Oct. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants stock-based awards under its Stock Incentive Plan (the “Plan”). Shares issued as a result of stock-based compensation transactions generally have been funded with the issuance of new shares of the Company’s common stock. The Company may grant the following types of incentive awards under the Plan: (i) non-qualified stock options; (ii) incentive stock options; (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock units (“RSUs”); (vi) performance shares; (vii) performance share units (“PSUs”); and (viii) other stock-based awards. Each award granted under the Plan is subject to an award agreement that incorporates, as applicable, the exercise price, the term of the award, the periods of restriction, the number of shares to which the award pertains, performance periods and performance measures, and such other terms and conditions as the plan committee determines. Awards granted under the Plan are classified as equity awards, which are recorded in stockholders’ equity in the Company’s Consolidated Balance Sheets. When estimating the grant date fair value of stock-based awards, the Company considers whether an adjustment is required to the closing price or the expected volatility of its common stock on the date of grant when the Company is in possession of material non-public information. No such adjustments were made to the grant date fair value of awards granted during the thirty-nine weeks ended October 30, 2022. Through October 30, 2022, the Company has granted under the Plan (i) service-based non-qualified stock options, referred to as “stock options” below, RSUs and restricted stock; and (ii) contingently issuable PSUs and RSUs. There were no shares of restricted stock or contingently issuable RSUs outstanding as of October 30, 2022. According to the terms of the Plan, for purposes of determining the number of shares available for grant, each share underlying a stock option award reduces the number available by one share and each share underlying an RSU or PSU award reduces the number available by two shares. Net income for the thirty-nine weeks ended October 30, 2022 and October 31, 2021 included $35.3 million and $35.8 million, respectively, of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $4.5 million and $5.0 million, respectively. The Company receives a tax deduction for certain transactions associated with its stock-based awards. The actual income tax benefits realized from these transactions during the thirty-nine weeks ended October 30, 2022 and October 31, 2021 were $3.6 million and $7.1 million, respectively. The tax benefits realized included discrete net excess tax deficiencies of $1.9 million recognized in the Company’s provision for income taxes during the thirty-nine weeks ended October 30, 2022. Discrete net excess tax deficiencies recognized in the Company’s provision for income taxes were immaterial for the thirty-nine weeks ended October 31, 2021. Stock Options Stock options granted to employees are generally exercisable in four The Company estimates the fair value of stock options at the date of grant using the Black-Scholes-Merton model. The estimated fair value of the stock options granted is expensed over the stock options’ requisite service periods. The following summarizes the assumptions used to estimate the fair value of stock options granted during the thirty-nine weeks ended October 30, 2022 and October 31, 2021 and the resulting weighted average grant date fair value per stock option: 10/30/22 10/31/21 Weighted average risk-free interest rate 2.50 % 1.24 % Weighted average expected stock option term (in years) 6.25 6.25 Weighted average Company volatility 47.34 % 47.58 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per stock option $ 34.27 $ 48.28 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. Expected dividends are based on the anticipated common stock cash dividend rate for the Company at the time of grant; the dividend assumption for the stock options granted during the thirty-nine weeks ended October 31, 2021 was not affected by the Company’s suspension of its cash dividend beginning with the second quarter of 2020 in response to the impacts of the COVID-19 pandemic on its business and as a condition of the June 2020 Amendment that was in effect through June 10, 2021, as such suspension was viewed as temporary. Please see Note 15, “Stockholders' Equity,” for further discussion of dividends on the Company’s common stock. The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method. Stock option activity for the thirty-nine weeks ended October 30, 2022 was as follows: (In thousands, except per stock option data) Stock Options Weighted Average Exercise Price Outstanding at January 30, 2022 688 $ 103.40 Granted 134 71.51 Exercised — — Forfeited / Expired 98 103.42 Outstanding at October 30, 2022 724 $ 97.48 Exercisable at October 30, 2022 481 $ 108.43 RSUs RSUs granted to employees generally vest in four RSU activity for the thirty-nine weeks ended October 30, 2022 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 30, 2022 1,176 $ 88.09 Granted 696 71.08 Vested 405 92.16 Forfeited 126 85.93 Non-vested at October 30, 2022 1,341 $ 78.24 PSUs Contingently issuable PSUs granted to employees generally vest three The Company also granted contingently issuable PSUs to certain of the Company’s senior executives during 2019 and 2020, subject to a three The following summarizes the assumptions used to estimate the fair value of PSUs subject to market conditions that were granted during the thirty-nine weeks ended October 30, 2022 and October 31, 2021 and the resulting weighted average grant date fair value: 10/30/22 10/31/21 Weighted average risk-free interest rate 2.91 % 0.33 % Weighted average Company volatility 64.02 % 60.69 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 103.36 $ 159.29 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for the term corresponding to the three-year performance period. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the three-year performance period. Expected dividends are based on the anticipated common stock cash dividend rate for the Company at the time of grant; the dividend assumption for the PSUs granted during the thirty-nine weeks ended October 31, 2021 was not affected by the Company’s suspension of its cash dividend beginning with the second quarter of 2020 in response to the impacts of the COVID-19 pandemic on its business and as a condition of the June 2020 Amendment that was in effect through June 10, 2021, as such suspension was viewed as temporary. Please see Note 15, “Stockholders' Equity,” for further discussion of dividends on the Company’s common stock. For certain of the awards granted, the after-tax portion of the award is subject to a holding period of one year after the vesting date. For these awards, the grant date fair value was discounted 6.90% in 2022 and 8.40% in 2021 for the restriction of liquidity, which was calculated using the Finnerty model. Total PSU activity for the thirty-nine weeks ended October 30, 2022 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 30, 2022 248 $ 93.15 Granted 72 87.16 Reduction due to market conditions not satisfied 67 118.28 Vested — — Forfeited 2 77.54 Non-vested at October 30, 2022 251 $ 84.98 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Oct. 30, 2022 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present the changes in AOCL, net of related taxes, by component for the thirty-nine weeks ended October 30, 2022 and October 31, 2021: (In millions) Foreign currency translation adjustments Net unrealized and realized gain on effective cash flow hedges Total Balance, January 30, 2022 $ (665.9) $ 53.2 $ (612.7) Other comprehensive (loss) income before reclassifications (261.7) (1)(2) 51.5 (210.2) Less: Amounts reclassified from AOCL (3.4) (3) 9.8 6.4 Other comprehensive (loss) income (258.3) 41.7 (216.6) Balance, October 30, 2022 $ (924.2) $ 94.9 $ (829.3) (In millions) Foreign currency translation adjustments Net unrealized and realized (loss) gain on effective cash flow hedges Total Balance, January 31, 2021 $ (481.6) $ (37.5) $ (519.1) Other comprehensive (loss) income before reclassifications (79.7) (1)(2) 74.6 (5.1) Less: Amounts reclassified from AOCL — 0.2 0.2 Other comprehensive (loss) income (79.7) 74.4 (5.3) Balance, October 31, 2021 $ (561.3) $ 36.9 $ (524.4) (1) Foreign currency translation adjustments included a net gain on net investment hedges of $99.6 million and $41.3 million during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, respectively. (2) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. (3) Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. The following table presents reclassifications from AOCL to earnings for the thirteen and thirty-nine weeks ended October 30, 2022 and October 31, 2021: Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Statements of Operations Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Realized gain (loss) on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 9.9 $ (6.6) $ 13.6 $ 1.2 Cost of goods sold Interest rate swap agreements — (1.3) — (1.3) SG&A (1) Interest rate swap agreements — (0.7) — (2.6) Interest expense Less: Tax effect 2.7 (1.9) 3.8 (2.9) Income tax (benefit) expense Total, net of tax $ 7.2 $ (6.7) $ 9.8 $ 0.2 Foreign currency translation adjustments: Karl Lagerfeld transaction $ — $ — $ (3.4) (2) $ — Equity in net income of unconsolidated affiliates Less: Tax effect — — — — Income tax (benefit) expense Total, net of tax $ — $ — $ (3.4) $ — (1) The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021. Please see Note 11, “Derivative Financial Instruments,” for further discussion. (2) Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Oct. 30, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Acquisition of Treasury Shares The Company’s Board of Directors has authorized over time since 2015 an aggregate $3.0 billion stock repurchase program through June 3, 2026. Repurchases under the program may be made from time to time over the period through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as the Company deems appropriate. Purchases are made based on a variety of factors, such as price, corporate requirements and overall market conditions, applicable legal requirements and limitations, trading restrictions under the Company’s insider trading policy and other relevant factors. The program may be modified by the Board of Directors, including to increase or decrease the repurchase limitation or extend, suspend or terminate the program at any time, without prior notice. The Company suspended share repurchases under the stock repurchase program beginning in March 2020 in response to the impacts of the COVID-19 pandemic on its business. In addition, under the terms of a waiver the Company obtained in June 2020 of certain covenants under its senior unsecured credit facilities (referred to as the “June 2020 Amendment”), the Company was not permitted to make share repurchases during the relief period. However, effective June 10, 2021, the relief period under the June 2020 Amendment was terminated and the Company was permitted to resume share repurchases at management’s discretion, which it did starting in the third quarter of 2021. Please see Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 30, 2022 for further discussion of the terms of the June 2020 Amendment and the relief period. During the thirty-nine weeks ended October 31, 2021, following termination of the relief period in June 2021, the Company purchased 1.4 million shares of its common stock under the program in open market transactions for $148.7 million. During the thirty-nine weeks ended October 30, 2022, the Company purchased 5.1 million shares of its common stock under the program in open market transactions for $326.3 million. As of October 30, 2022, the repurchased shares were held as treasury stock and $896.6 million of the authorization remained available for future share repurchases. Treasury stock activity also includes shares that were withheld in conjunction with the settlement of RSUs to satisfy tax withholding requirements. Common Stock Dividends The Company suspended its dividends in March 2020 in response to the impacts of the COVID-19 pandemic on its business. In addition, under the terms of the June 2020 Amendment, the Company was not permitted to declare or pay dividends during the relief period. However, effective June 10, 2021, the relief period was terminated and the Company was permitted to declare and pay dividends on its common stock at the discretion of the Board of Directors. Please see Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 30, 2022 for further discussion of the terms of the June 2020 Amendment and the relief period. Following termination of the relief period in June 2021, the Company declared on October 29, 2021 a $0.0375 per share dividend on its common stock, in respect of which the Company subsequently made dividend payments totaling $2.7 million on December 17, 2021 to its common stockholders of record on November 24, 2021. The Company declared and paid $7.7 million of dividends on its common stock during the thirty-nine weeks ended October 30, 2022, including a $0.0375 per share dividend paid on each of March 30, 2022, June 29, 2022 and September 28, 2022 to its common stockholders of record on March 11, 2022, June 8, 2022 and September 7, 2022, respectively. |
EXIT ACTIVITY COSTS
EXIT ACTIVITY COSTS | 9 Months Ended |
Oct. 30, 2022 | |
EXIT ACTIVITY COSTS [Abstract] | |
EXIT ACTIVITY COSTS | EXIT ACTIVITY COSTS 2022 Cost Savings Initiative The Company announced in August 2022 it would be taking steps to streamline its organization and simplify its ways of working. The Company plans to reduce people costs in its global offices by approximately 10% by the end of 2023 to drive efficiencies and enable continued strategic investments to fuel growth, including in digital, supply chain and consumer engagement. The Company expects these reductions will generate annual cost savings of over $100 million, net of continued strategic people investments. In connection with this initiative, the Company recorded pre-tax costs during the thirteen and thirty-nine weeks ended October 30, 2022 related to initial actions taken under the plan, as shown in the following table. The Company expects to incur additional costs in connection with this initiative, however the additional costs are not known at this time. (In millions) Costs Incurred During the Thirteen and Thirty-Nine Weeks Ended 10/30/22 Severance, termination benefits and other employee costs $ 16.7 Of the charges incurred during the thirteen and thirty-nine weeks ended October 30, 2022, $4.2 million relate to SG&A expenses of the Tommy Hilfiger North America segment, $2.1 million relate to SG&A expenses of the Tommy Hilfiger International segment, $4.0 million relate to SG&A expenses of the Calvin Klein North America segment, $2.7 million relate to SG&A expenses of the Calvin Klein International segment, $2.2 million relate to SG&A expenses of the Heritage Brands Wholesale segment and $1.5 million relate to corporate SG&A expenses not allocated to any reportable segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ — $ 16.7 $ 1.9 $ 14.8 Russia Business Exit Costs As a result of the war in Ukraine, the Company made the decision in the second quarter of 2022 to exit from its Russia business, including the closure of its retail stores in Russia and the cessation of its wholesale operations in Russia and Belarus. In connection with this exit, the Company recorded pre-tax costs during the thirty-nine weeks ended October 30, 2022 as shown in the following table. All expected costs related to the exit from the Russia business were incurred during the thirty-nine weeks ended October 30, 2022. (In millions) Costs Incurred During the Thirty-Nine Weeks Ended 10/30/22 Severance, termination benefits and other employee costs $ 2.1 Long-lived asset impairments 43.6 Contract termination and other costs 4.8 Total $ 50.5 Of the charges incurred during the thirty-nine weeks ended October 30, 2022, $36.7 million relate to SG&A expenses of the Tommy Hilfiger International segment and $13.8 million relate to SG&A expenses of the Calvin Klein International segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. Please see Note 12, “Fair Value Measurements,” for further discussion of the long-lived asset impairments recorded during the thirty-nine weeks ended October 30, 2022. The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ — $ 2.1 $ 1.0 $ 1.1 Contract termination and other costs — 4.8 0.4 4.4 Total $ — $ 6.9 $ 1.4 $ 5.5 2021 Reductions in Workforce and Real Estate Footprint The Company announced in March 2021 plans to streamline its 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, which resulted in annual cost savings of approximately $60 million. In connection with these activities, the Company recorded pre-tax costs during 2021 as shown in the following table. All expected costs related to the 2021 reductions in workforce and real estate footprint were incurred during the thirty-nine weeks ended October 31, 2021. (In millions) Costs Incurred During the Thirteen Weeks Ended 10/31/21 Costs Incurred During the Thirty-Nine Weeks Ended 10/31/21 Severance, termination benefits and other employee costs $ 2.5 $ 15.7 Long-lived asset impairments — 28.1 Contract termination and other costs — 3.8 Total $ 2.5 $ 47.6 Of the charges incurred during the thirty-nine weeks ended October 31, 2021, $1.7 million relate to SG&A expenses of the Tommy Hilfiger North America segment, $8.9 million relate to SG&A expenses of the Tommy Hilfiger International segment, $2.1 million relate to SG&A expenses of the Calvin Klein North America segment, $6.4 million relate to SG&A expenses of the Calvin Klein International segment and $28.5 million relate to corporate SG&A expenses not allocated to any reportable segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. Please see Note 12, “Fair Value Measurements,” for further discussion of the long-lived asset impairments recorded during the thirty-nine weeks ended October 31, 2021. The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ 6.2 $ — $ 2.6 $ 3.6 Heritage Brands Retail Exit Costs The Company announced in July 2020 plans to streamline its North American operations to better align its business with the evolving retail landscape, including the exit from its Heritage Brands Retail business, which consisted of 162 directly operated stores in North America and was substantially completed in the second quarter of 2021. In connection with the exit from the Heritage Brands Retail business, the Company recorded pre-tax costs during the thirty-nine weeks ended October 31, 2021 and recorded total cumulative costs during 2020 and 2021 as shown in the table below. All expected costs related to the exit from the Heritage Brands Retail business were incurred by the end of 2021. (In millions) Costs Incurred During the Thirty-Nine Weeks Ended 10/31/21 Cumulative Costs Incurred Severance, termination benefits and other employee costs $ 10.8 $ 25.4 Long-lived asset impairments — 7.2 Accelerated amortization of lease assets 5.9 13.1 Contract termination and other costs 4.4 4.4 Total $ 21.1 $ 50.1 The costs incurred during 2020 and 2021 relate to SG&A expenses of the Heritage Brands Retail segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ 3.5 $ — $ 3.5 $ — Contract termination and other costs 2.4 — 2.4 — Total $ 5.9 $ — $ 5.9 $ — |
NET (LOSS) INCOME PER COMMON SH
NET (LOSS) INCOME PER COMMON SHARE | 9 Months Ended |
Oct. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER COMMON SHARE | NET (LOSS) INCOME PER COMMON SHARE The Company computed its basic and diluted net (loss) income per common share as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions, except per share data) 10/30/22 10/31/21 10/30/22 10/31/21 Net (loss) income attributable to PVH Corp. $ (186.7) $ 279.7 $ 61.7 $ 561.5 Weighted average common shares outstanding for basic net (loss) income per common share 64.8 70.9 66.5 71.2 Weighted average impact of dilutive securities — 1.1 0.5 1.1 Total shares for diluted net (loss) income per common share 64.8 72.0 67.0 72.3 Basic net (loss) income per common share attributable to PVH Corp. $ (2.88) $ 3.94 $ 0.93 $ 7.89 Diluted net (loss) income per common share attributable to PVH Corp. $ (2.88) $ 3.89 $ 0.92 $ 7.77 Potentially dilutive securities excluded from the calculation of diluted net (loss) income per common share as the effect would be anti-dilutive were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Weighted average potentially dilutive securities 2.2 0.6 1.5 0.7 Diluted net loss per common share attributable to PVH Corp. for the thirteen weeks ended October 30, 2022 excluded all potentially dilutive securities because there was a net loss attributable to PVH Corp. for the period and, as such, the inclusion of these securities would have been anti-dilutive. Shares underlying contingently issuable awards that have not met the necessary conditions as of the end of a reporting period are not included in the calculation of diluted net (loss) income per common share for that period. The Company had contingently issuable PSU awards outstanding that did not meet the performance conditions as of October 30, 2022 and October 31, 2021 and, therefore, were excluded from the calculation of diluted net (loss) income per common share for each applicable period. The maximum number of potentially dilutive shares that could be issued upon vesting for such awards was 0.4 million and 0.1 million as of October 30, 2022 and October 31, 2021, respectively. These amounts were also excluded from the computation of weighted average potentially dilutive securities in the table above. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
Cash Flow, Supplemental Disclosures | SUPPLEMENTAL CASH FLOW INFORMATION Noncash Investing and Financing Transactions Omitted from the Company’s Consolidated Statements of Cash Flows for the thirty-nine weeks ended October 30, 2022 and October 31, 2021 were capital expenditures related to property, plant and equipment of $30.6 million and $40.4 million, respectively, that were accrued and not yet paid as of the end of the respective periods. Omitted from acquisition of treasury shares in the Company’s Consolidated Statements of Cash Flows for the thirty-nine weeks ended October 30, 2022 and October 31, 2021 were $2.2 million and $4.4 million respectively, of shares repurchased under the stock repurchase program for which the trades occurred but remained unsettled as of the end of the respective periods. The Company completed the Australia acquisition in the second quarter of 2019. Total acquisition consideration included the issuance to key executives of Gazal and PVH Australia of approximately 6% of the outstanding shares in the subsidiary of the Company that acquired 100% of the ownership interests in the Australia business, for which the Company recognized a $26.2 million liability on the date of the acquisition. In subsequent periods, the liability was adjusted each reporting period to its redemption value based on conditions that existed as of each subsequent balance sheet date. The Company settled in June 2020 a portion of the liability for the 6% interest issued to key executives of Gazal and PVH Australia, and settled in June 2021 the remaining liability, under the conditions specified in the terms of the acquisition agreement. Please see Note 4, “Acquisitions and Divestitures,” for further discussion of this liability. Lease Transactions Supplemental cash flow information related to leases was as follows: Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 341.4 $ 369.0 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 3.0 3.9 Noncash transactions: Right-of-use assets obtained in exchange for new operating lease liabilities 208.2 210.5 Right-of-use assets obtained in exchange for new finance lease liabilities 6.2 2.1 The Company has sought concessions from landlords for certain of its stores affected by temporary closures as a result of the COVID-19 pandemic in the form of rent deferrals or rent abatements. Consistent with updated guidance issued by the Financial Accounting Standards Board (“FASB”) in April 2020, the Company elected to treat COVID-19 related rent concessions as though enforceable rights and obligations for those concessions existed in the original contract. As such, rent abatements negotiated with landlords are recorded as a reduction to variable lease expense included in SG&A expenses in the Company’s Consolidated Statements of Operations. The Company recorded $1.6 million and $4.0 million of rent abatements during the thirteen and thirty-nine weeks ended October 30, 2022, respectively. The Company recorded $4.2 million and $24.8 million of rent abatements during the thirteen and thirty-nine weeks ended October 31, 2021, respectively. Rent deferrals have no impact to lease expense and amounts deferred and payable in future periods are included in the current portion of operating lease liabilities in the Company’s Consolidated Balance Sheets. |
SEGMENT DATA
SEGMENT DATA | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [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. 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 LLC (“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 in North America of (i) women’s intimate apparel under the Warner’s, Olga and True&Co. brands; (ii) men’s dress shirts and neckwear under various licensed brand names; and (iii) 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. 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. In addition, this segment derives revenue from the Heritage Brands business in Australia. 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 16, “Exit Activity Costs,” for further discussion. The Company’s revenue by segment was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 (1) 10/31/21 (1) 10/30/22 (1) 10/31/21 (1) Revenue – Tommy Hilfiger North America Net sales $ 307.2 $ 269.2 $ 830.9 $ 747.8 Royalty revenue 24.3 25.2 62.2 58.2 Advertising and other revenue 6.7 6.8 16.1 14.9 Total 338.2 301.2 909.2 820.9 Revenue – Tommy Hilfiger International Net sales 805.9 895.8 2,345.7 2,532.1 Royalty revenue 16.9 16.5 46.3 42.5 Advertising and other revenue 5.9 4.2 15.1 11.4 Total 828.7 916.5 2,407.1 2,586.0 Revenue – Calvin Klein North America Net sales 314.7 292.1 872.6 809.1 Royalty revenue 49.8 42.7 126.2 103.0 Advertising and other revenue 15.8 14.6 41.3 34.6 Total 380.3 349.4 1,040.1 946.7 Revenue – Calvin Klein International Net sales 570.0 597.9 1,677.8 1,683.5 Royalty revenue 14.1 12.5 38.3 34.0 Advertising and other revenue 2.1 1.3 6.5 4.5 Total 586.2 611.7 1,722.6 1,722.0 Revenue – Heritage Brands Wholesale Net sales 146.9 153.0 455.4 561.9 Royalty revenue 0.3 0.5 0.7 10.3 Advertising and other revenue 0.2 0.2 0.4 1.6 Total 147.4 153.7 456.5 573.8 Revenue – Heritage Brands Retail Net sales — — — 75.6 Royalty revenue — — — — Advertising and other revenue — — — — Total — — — 75.6 Total Revenue Net sales 2,144.7 2,208.0 6,182.4 6,410.0 Royalty revenue 105.4 97.4 273.7 248.0 Advertising and other revenue 30.7 27.1 79.4 67.0 Total $ 2,280.8 $ 2,332.5 $ 6,535.5 $ 6,725.0 (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’s revenue by distribution channel was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Wholesale net sales $ 1,287.1 $ 1,308.4 $ 3,596.2 $ 3,756.3 Owned and operated retail stores 710.7 737.1 2,113.9 2,131.7 Owned and operated digital commerce sites 146.9 162.5 472.3 522.0 Retail net sales 857.6 899.6 2,586.2 2,653.7 Net sales 2,144.7 2,208.0 6,182.4 6,410.0 Royalty revenue 105.4 97.4 273.7 248.0 Advertising and other revenue 30.7 27.1 79.4 67.0 Total $ 2,280.8 $ 2,332.5 $ 6,535.5 $ 6,725.0 The Company’s (loss) income before interest and taxes by segment was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 (1) 10/31/21 (1) 10/30/22 (1) 10/31/21 (1) (Loss) income before interest and taxes – Tommy Hilfiger North America $ (169.9) (3)(4) $ (1.2) $ (184.8) (3)(4) $ 18.4 (8) Income before interest and taxes – Tommy Hilfiger International 121.7 (4) 178.6 349.6 (4)(6) 510.7 (8) (Loss) income before interest and taxes – Calvin Klein North America (140.0) (3)(4) 20.5 (106.4) (3)(4) 59.4 (8) Income before interest and taxes – Calvin Klein International 12.1 (3)(4) 110.9 187.6 (3)(4)(6) 306.2 (8) Income before interest and taxes – Heritage Brands Wholesale 7.3 (4) 116.7 (5) 37.5 (4) 160.1 (5) Loss before interest and taxes – Heritage Brands Retail — — — (33.9) (9) Loss before interest and taxes – Corporate (2) (45.2) (4) (48.3) (110.2) (4)(7) (167.3) (8) (Loss) income before interest and taxes $ (214.0) $ 377.2 $ 173.3 $ 853.6 (1) (Loss) income 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) 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 after the Company resumed the equity method of accounting for its investment in the fourth quarter of 2021 and until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 5, “Redeemable Non-Controlling Interest,” for further discussion of PVH Ethiopia and Note 6, “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 (which are generally recorded in the fourth quarter). (3) (Loss) income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 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. (4) (Loss) income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 2022 included costs of $16.7 million incurred related to the cost savings initiative described in Note 16, “Exit Activity Costs,” consisting of severance. Such costs were included in the Company’s segments as follows: $4.2 million in Tommy Hilfiger North America, $2.1 million in Tommy Hilfiger International, $4.0 million in Calvin Klein North America, $2.7 million in Calvin Klein International, $2.2 million in Heritage Brands Wholesale and $1.5 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 for the thirteen and thirty-nine weeks ended October 31, 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 4, “Acquisitions and Divestitures,” for further discussion of the transaction. (6) Income before interest and taxes for the thirty-nine weeks ended October 30, 2022 included costs of $50.5 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: $36.7 million in Tommy Hilfiger International and $13.8 million in Calvin Klein International. Please see Note 16, “Exit Activity Costs,” for further discussion. (7) Loss before interest and taxes for the thirty-nine weeks ended October 30, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. (8) Income (loss) before interest and taxes for the thirty-nine weeks ended October 31, 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 16, “Exit Activity Costs,” for further discussion. (9) Loss before interest and taxes for the thirty-nine weeks ended October 31, 2021 included costs and operating losses associated with the wind down of the Heritage Brands Retail business that was substantially completed in the second quarter of 2021. Please see Note 16, “Exit Activity Costs,” for further discussion. Intersegment transactions, which primarily consist of transfers of inventory, are not material. |
GUARANTEES
GUARANTEES | 9 Months Ended |
Oct. 30, 2022 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company has guaranteed a portion of the debt of its joint venture in India. The maximum amount guaranteed as of October 30, 2022 was approximately $9.0 million based on exchange rates in effect on that date. The guarantee is in effect for the entire term of the debt. The liability for this guarantee obligation was immaterial as of October 30, 2022, January 30, 2022 and October 31, 2021 . The Company has guaranteed to a financial institution the repayment of store security deposits in Japan paid to landlords on behalf of the Company. The amount guaranteed as of October 30, 2022 was approximately $4.2 million based on exchange rates in effect on that date. The Company has the right to seek recourse from the landlords for the full amount. The guarantees expire between 2025 and 2028. The liability for these guarantee obligations was immaterial as of October 30, 2022, January 30, 2022 and October 31, 2021 . The Company has guaranteed the payment of amounts on behalf of certain other parties, none of which are material individually or in the aggregate. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 9 Months Ended |
Oct. 30, 2022 | |
Notes to Financial Statements [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance The FASB issued in November 2021 an update to accounting guidance requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (i) the types of transactions, (ii) the accounting for those transactions, and (iii) the effect of those transactions on an entity’s financial statements. The Company adopted the update in the first quarter of 2022 using the prospective approach. The adoption of the update did not have any impact on the Company’s consolidated financial statements footnote disclosures as the amount of government assistance recorded in the Company’s consolidated financial statements as of and for the thirty-nine weeks ended October 30, 2022 was immaterial. Accounting Guidance Issued But Not Adopted as of October 30, 2022 The FASB issued in September 2022 an update to accounting guidance requiring disclosures that increase the transparency surrounding the use of supplier finance programs, including the key terms of the programs, and information about the obligations under these programs, including a rollforward of those obligations. The update does not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The update will be effective for the Company in the first quarter of 2023 on a retrospective basis, except for the requirement to disclose rollforward information, which will be effective for the Company in the first quarter of 2024 on a prospective basis. Early adoption is permitted. The Company is currently evaluating the update to determine the impact the adoption will have on the Company’s consolidated financial statements footnote disclosures related to its supply chain finance program. The FASB issued in October 2021 an update to accounting guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to their recognition and measurement. The update requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with the revenue recognition guidance. This generally will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree immediately before the acquisition date. Historically, such amounts were recognized by the acquirer at fair value. The update will be effective for the Company in the first quarter of 2023, with early adoption permitted. The Company will apply the update to applicable transactions occurring on or after the adoption date. The impact on the Company’s consolidated financial statements will depend on the facts and circumstances of any future transactions. The FASB issued in March 2020 an update to provide temporary optional guidance intended to ease the potential burden of accounting for reference rate reform. The amendments in the update provide optional expedients and exceptions for applying U.S. GAAP to contract modifications, hedging relationships and other transactions affected by the expected market transition from LIBOR and other interbank offered rates to alternative reference rates if certain criteria are met. The amendments were effective upon issuance and can be applied on a prospective basis through December 31, 2022. The adoption of the update is not expected to have a material impact on the Company’s consolidated financial statements. |
OTHER COMMENTS
OTHER COMMENTS | 9 Months Ended |
Oct. 30, 2022 | |
Other Comments [Abstract] | |
OTHER COMMENTS | OTHER COMMENTSThe Company records warehousing and distribution expenses, which are subject to exchange rate fluctuations, as a component of SG&A expenses in its Consolidated Statements of Operations. Warehousing and distribution expenses incurred in the thirteen and thirty-nine weeks ended October 30, 2022 totaled $93.1 million and $259.9 million, respectively. Warehousing and distribution expenses incurred in the thirteen and thirty-nine weeks ended October 31, 2021 totaled $80.7 million and $244.7 million, respectively.The Company is exposed to credit losses primarily through trade receivables from its customers and licensees. The Company records an allowance for credit losses as a reduction to its trade receivables for amounts that the Company does not expect to recover. An allowance for credit losses is determined through an analysis of the aging of accounts receivable and assessments of collectibility based on historical trends, the financial condition of the Company’s customers and licensees, including any known or anticipated bankruptcies, and an evaluation of current economic conditions as well as the Company’s expectations of conditions in the future. The Company writes off uncollectible trade receivables once collection efforts have been exhausted and third parties confirm the balance is not recoverable. The allowance for credit losses on trade receivables was $50.9 million, $61.9 million and $64.3 million as of October 30, 2022, January 30, 2022 and October 31, 2021, respectively. |
GENERAL (Policies)
GENERAL (Policies) | 9 Months Ended |
Oct. 30, 2022 | |
General [Abstract] | |
Consolidation, Policy | The consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated in consolidation. Investments in entities that the Company does not control but has the ability to exercise significant influence over are accounted for using the equity method of accounting. The Company’s Consolidated Statements of Operations include its proportionate share of the net income or loss of these entities. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. The Company formed a joint venture in Ethiopia (“PVH Ethiopia”), in which the Company held an initial economic interest of 75%, with its partner’s 25% interest accounted for as a redeemable non-controlling interest (“RNCI”). The Company consolidated PVH Ethiopia in its consolidated financial statements. The Company closed in the fourth quarter of 2021 the manufacturing facility that was PVH Ethiopia’s sole operation. The closure did not have a material impact on the Company’s consolidated financial statements. Please see Note 5, “Redeemable Non-Controlling Interest,” for further discussion. |
Fiscal Period | The Company’s fiscal years are based on the 52-53 week periods ending on the Sunday closest to February 1 and are designated by the calendar year in which the fiscal year commences. |
REVENUE Deferred Revenue (Table
REVENUE Deferred Revenue (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Deferred Revenue [Abstract] | |
Deferred Revenue Disclosure [Text Block] | Changes in deferred revenue, which primarily relate to customer loyalty programs, gift cards and license agreements for the thirty-nine weeks ended October 30, 2022 and October 31, 2021 were as follows: Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 Deferred revenue balance at beginning of period $ 44.9 $ 55.8 Net additions to deferred revenue during the period 28.9 30.0 Reductions in deferred revenue for revenue recognized during the period (1) (39.0) (48.3) Reduction in deferred revenue related to the Heritage Brands transaction — (1.6) (2) Deferred revenue balance at end of period $ 34.8 $ 35.9 (1) Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period and does not contemplate revenue recognized from amounts deferred during the period. The amounts include $2.7 million and $1.8 million of revenue recognized during the thirteen weeks ended October 30, 2022 and October 31, 2021, respectively. (2) The Company recorded a $1.6 million reduction in deferred revenue in connection with the Heritage Brands transaction. Please see Note 4, “Acquisitions and Divestitures,” for further discussion. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $12.5 million, $15.0 million and $12.0 million as of October 30, 2022, January 30, 2022 and October 31, 2021, respectively. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the thirty-nine weeks ended October 30, 2022, by segment (please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments), were as follows: (In millions) Calvin Klein North America Calvin Klein International Tommy Hilfiger North America Tommy Hilfiger International Heritage Brands Wholesale Heritage Brands Retail Total Balance as of January 30, 2022 Goodwill, gross $ 781.8 $ 891.5 $ 203.0 $ 1,633.9 $ 105.0 $ — $ 3,615.2 Accumulated impairment losses (287.3) (394.0) — — (105.0) — (786.3) Goodwill, net 494.5 497.5 203.0 1,633.9 — — 2,828.9 Impairment (162.6) (77.3) (177.2) — — — (417.1) Currency translation (0.2) (25.1) — (172.5) — — (197.8) Balance as of October 30, 2022 Goodwill, gross 781.6 866.4 203.0 1,461.4 105.0 — 3,417.4 Accumulated impairment losses (449.9) (471.3) (177.2) — (105.0) — (1,203.4) Goodwill, net $ 331.7 $ 395.1 $ 25.8 $ 1,461.4 $ — $ — $ 2,214.0 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net benefit cost recognized were as follows: Pension Plans Pension Plans Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Service cost $ 7.8 $ 9.9 $ 23.5 $ 30.4 Interest cost 6.3 6.2 19.0 18.6 Expected return on plan assets (10.4) (11.2) (31.3) (33.4) Special termination benefits — 0.2 — 0.5 Heritage Brands transaction gain — (1.5) — (1.5) Total $ 3.7 $ 3.6 $ 11.2 $ 14.6 SERP Plans SERP Plans Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Service cost $ 0.6 $ 1.1 $ 1.9 $ 3.5 Interest cost 0.7 0.8 2.1 2.4 Special termination benefits — 1.2 — 1.8 Heritage Brands transaction gain — (0.3) — (0.3) Total $ 1.3 $ 2.8 $ 4.0 $ 7.4 The Company completed the Heritage Brands transaction on the first day of the third quarter of 2021. In connection with the sale, the employment of certain employees based in the United States engaged in the Heritage Brands business was terminated during the third quarter of 2021. However, the Company retained the liability for any deferred vested benefits earned by these employees under its retirement plans. No further benefits were accrued under the plans for these employees and as a result, the Company recognized a gain of $1.8 million in the third quarter of 2021, with a corresponding decrease to its pension benefit obligation. For certain eligible employees affected by the transaction, the Company provided an enhanced retirement benefit and as a result recognized $1.4 million of special termination benefit costs during the third quarter of 2021 with a corresponding increase to its pension benefit obligation. These amounts were included in other gain in the Company’s Consolidated Statement of Operations. Please see Note 4, “Acquisitions and Divestitures,” for further discussion of the sale of certain heritage brands trademarks and other assets. The Company provided enhanced retirement benefits to terminated employees during the second quarter of 2021 and as a result recognized $0.9 million of special termination benefit costs with a corresponding increase to its pension benefit obligation. The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States. As a result of the Company’s acquisition of The Warnaco Group, Inc. (“Warnaco”), the Company also provides certain postretirement health care and life insurance benefits to certain Warnaco retirees resident in the United States. Retirees contribute to the cost of the applicable plan, both of which are unfunded and frozen. The Company refers to these two plans as its “Postretirement Plans.” Net benefit cost related to the Postretirement Plans was immaterial for the thirteen and thirty-nine weeks ended October 30, 2022 and October 31, 2021. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Schedule of Interest Rate Swap Agreements [Line Items] | |
Schedule of Interest Rate Swap Agreements [Table Text Block] | The Company entered into interest rate swap agreements designed with the intended effect of converting notional amounts of its variable rate debt obligation to fixed rate debt. Under the terms of the agreements, for any outstanding notional amount, the Company’s exposure to fluctuations in the one-month London interbank offered rate (“LIBOR”) is eliminated and the Company pays a fixed rate plus the current applicable margin. The following interest rate swap agreements were entered into or in effect during the thirty-nine weeks ended October 31, 2021 (no interest rate swap agreements were entered into or in effect during the thirty-nine weeks ended October 30, 2022): (In millions) Designation Date Commencement Date Initial Notional Amount Notional Amount Outstanding as of October 30, 2022 Fixed Rate Expiration Date March 2020 February 2021 $ 50.0 $ — (1) 0.562% February 2023 February 2020 February 2021 50.0 — (1) 1.1625% February 2023 February 2020 February 2020 50.0 — (1) 1.2575% February 2023 August 2019 February 2020 50.0 — (1) 1.1975% February 2022 June 2019 February 2020 50.0 — (1) 1.409% February 2022 June 2019 June 2019 50.0 — 1.719% July 2021 January 2019 February 2020 50.0 — 2.4187% February 2021 November 2018 February 2019 139.2 — 2.8645% February 2021 October 2018 February 2019 115.7 — 2.9975% February 2021 June 2018 August 2018 50.0 — 2.6825% February 2021 (1) The Company terminated in 2021 the interest rate swap agreements due to expire in February 2022 and February 2023 in connection with the early repayment of the outstanding principal balance under its USD TLA |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 10/30/22 1/30/22 10/31/21 Senior unsecured Term Loan A facilities due 2024 (1)(2) $ 437.2 $ 513.5 $ 743.4 7 3/4% debentures due 2023 99.9 99.8 99.8 3 5/8% senior unsecured euro notes due 2024 (2) 520.0 580.8 606.8 4 5/8% senior unsecured notes due 2025 496.7 495.7 495.4 3 1/8% senior unsecured euro notes due 2027 (2) 592.6 662.6 692.6 Total 2,146.4 2,352.4 2,638.0 Less: Current portion of long-term debt 37.3 34.8 32.8 Long-term debt $ 2,109.1 $ 2,317.6 $ 2,605.2 (1) The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was zero and €440.6 million, respectively, as of October 30, 2022. (2) The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
Schedule of Mandatory Long-Term Debt Repayments [Table] | The Company’s mandatory long-term debt repayments for the remainder of 2022 through 2027 were as follows as of October 30, 2022: (In millions) Fiscal Year Amount (1) Remainder of 2022 $ 9.3 2023 137.3 2024 914.2 2025 500.0 2026 — 2027 597.1 (1) A portion of the Company’s mandatory long-term debt repayments is denominated in euros and subject to changes in the exchange rate of the United States dollar against the euro. Total debt repayments for the remainder of 2022 through 2027 exceed the total carrying amount of the Company’s debt as of October 30, 2022 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Derivative Financial Instruments [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value and presentation of the Company’s derivative financial instruments in its Consolidated Balance Sheets: Assets Liabilities 10/30/22 1/30/22 10/31/21 10/30/22 1/30/22 10/31/21 (In millions) Other Current Assets Other Assets Other Current Assets Other Assets Other Current Assets Other Assets Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Accrued Expenses Other Liabilities Contracts designated as cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 95.3 $ 1.8 $ 48.0 $ 2.7 $ 25.1 $ 1.3 $ 2.9 $ — $ 0.6 $ — $ 1.4 $ 0.1 Interest rate swap agreements — — — — — — — — — — 0.3 — Total contracts designated as cash flow hedges 95.3 1.8 48.0 2.7 25.1 1.3 2.9 — 0.6 — 1.7 0.1 Undesignated contracts: Foreign currency forward exchange contracts 0.5 — 5.6 — 3.4 — 3.1 — 1.1 — 2.1 — Interest rate swap agreements — — — — — — — — — — 0.5 0.1 Total undesignated contracts 0.5 — 5.6 — 3.4 — 3.1 — 1.1 — 2.6 0.1 Total $ 95.8 $ 1.8 $ 53.6 $ 2.7 $ 28.5 $ 1.3 $ 6.0 $ — $ 1.7 $ — $ 4.3 $ 0.2 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables summarize the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: Gain Recognized in Other Comprehensive Loss (In millions) Thirteen Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 24.4 $ 17.2 Interest rate swap agreements — 0.1 Foreign currency borrowings (net investment hedges) 27.6 27.4 Total $ 52.0 $ 44.7 Thirty-Nine Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 70.2 $ 82.0 Interest rate swap agreements — 0.2 Foreign currency borrowings (net investment hedges) 132.6 54.7 Total $ 202.8 $ 136.9 Amount of Gain (Loss) Reclassified from AOCL into Income (Expense), Consolidated Statements of Operations Location, and Total Amount of Consolidated Statements of Operations Line Item (In millions) Amount Reclassified Location Total Statements of Operations Amount Thirteen Weeks Ended 10/30/22 10/31/21 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 9.9 $ (6.6) Cost of goods sold $ 1,006.6 $ 987.4 Interest rate swap agreements — (1.3) SG&A (1) 1,085.0 1,097.3 Interest rate swap agreements — (0.7) Interest expense 21.1 25.9 Total $ 9.9 $ (8.6) Thirty-Nine Weeks Ended 10/30/22 10/31/21 10/30/22 10/31/21 Foreign currency forward exchange contracts (inventory purchases) $ 13.6 $ 1.2 Cost of goods sold $ 2,803.1 $ 2,817.2 Interest rate swap agreements — (1.3) SG&A (1) 3,194.8 3,198.7 Interest rate swap agreements — (2.6) Interest expense 65.9 83.7 Total $ 13.6 $ (2.7) |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Statements of Operations: (In millions) Gain (Loss) Recognized in Income (Expense) Thirteen Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts $ 8.7 $ (4.7) Thirty-Nine Weeks Ended 10/30/22 10/31/21 Foreign currency forward exchange contracts $ 35.3 $ (6.9) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be remeasured at fair value on a recurring basis: 10/30/22 1/30/22 10/31/21 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Foreign currency forward exchange contracts N/A $ 97.6 N/A $ 97.6 N/A $ 56.3 N/A $ 56.3 N/A $ 29.8 N/A $ 29.8 Rabbi trust assets 0.7 5.1 N/A 5.8 — 0.3 N/A 0.3 N/A N/A N/A N/A Total Assets $ 0.7 $ 102.7 N/A $ 103.4 $ — $ 56.6 N/A $ 56.6 N/A $ 29.8 N/A $ 29.8 Liabilities: Foreign currency forward exchange contracts N/A $ 6.0 N/A $ 6.0 N/A $ 1.7 N/A $ 1.7 N/A $ 3.6 N/A $ 3.6 Interest rate swap agreements N/A — N/A — N/A — N/A — N/A 0.9 N/A 0.9 Total Liabilities N/A $ 6.0 N/A $ 6.0 N/A $ 1.7 N/A $ 1.7 N/A $ 4.5 N/A $ 4.5 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table shows the fair values of the Company’s non-financial assets that were required to be remeasured at fair value on a non-recurring basis during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, and the total impairments recorded as a result of the remeasurement process: (In millions) Fair Value Measurement Using Fair Value As Of Impairment Date Total Impairments 10/30/22 Level 1 Level 2 Level 3 Operating lease right-of-use assets N/A N/A $ — $ — $ 26.4 Property, plant and equipment, net N/A N/A — — 17.2 Goodwill N/A N/A 41.0 41.0 417.1 10/31/21 Operating lease right-of-use assets N/A N/A — — 17.8 Property, plant and equipment, net N/A N/A — — 17.3 Operating lease right-of-use assets with a carrying amount of $26.4 million and property, plant and equipment with a carrying amount of $17.2 million were written down to a fair value of zero during the thirty-nine weeks ended October 30, 2022 in connection with the Company’s decision in the second quarter of 2022 to exit from its Russia business. Please see Note 16, “Exit Activity Costs,” for further discussion of the Russia business exit costs. Fair value of the Company’s operating lease right-of-use assets and property, plant and equipment were determined to be zero in line with the Company’s estimated future cash flows for the Russia business asset group. Goodwill with a carrying amount of $458.1 million was written down to a fair value of $41.0 million during the thirty-nine weeks ended October 30, 2022. Please see Note 7, “Goodwill and Other Intangible Assets,” for further discussion. The $460.7 million of impairment charges during the thirty-nine weeks ended October 30, 2022 were recorded in the Company’s Consolidated Statement of Operations, of which $417.1 was included in goodwill impairment and $43.6 million was included in SG&A expenses. The $460.7 million of impairment charges were recorded to the Company’s segments as follows: $177.2 million in the Tommy Hilfiger North America segment, $162.6 million in the Calvin Klein North America segment, $87.2 million in the Calvin Klein International segment and $33.7 million in the Tommy Hilfiger International segment. Operating lease right-of-use assets with a carrying amount of $17.8 million and property, plant and equipment with a carrying amount of $17.3 million were written down to a fair value of zero during the thirty-nine weeks ended October 31, 2021 primarily as a result of actions taken by the Company to reduce its real estate footprint, including reductions in office space. Please see Note 16, “Exit Activity Costs,” for further discussion of these restructuring activities. Fair value of the Company’s operating lease right-of-use assets was determined based on the discounted cash flows of estimated sublease income using market participant assumptions, which considered the short length of the remaining lease term for certain of these assets, and current real estate trends and market conditions. Fair value of the Company’s property, plant and equipment was determined based on the estimated discounted future cash flows associated with the assets using market participant assumptions. The $35.1 million of impairment charges during the thirty-nine weeks ended October 31, 2021 were included in SG&A expenses in the Company’s Consolidated Statement of Operations and recorded to the Company’s segments as follows: $1.4 million in the Heritage Brands Wholesale segment and $33.7 million in corporate expenses not allocated to any reportable segments. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amounts and the fair values of the Company’s cash and cash equivalents, short-term borrowings and long-term debt were as follows: 10/30/22 1/30/22 10/31/21 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 457.0 $ 457.0 $ 1,242.5 $ 1,242.5 $ 1,298.7 $ 1,298.7 Short-term borrowings 98.0 98.0 10.8 10.8 27.8 27.8 Long-term debt (including portion classified as current) 2,146.4 2,031.7 2,352.4 2,522.4 2,638.0 2,853.3 The fair values of cash and cash equivalents and short-term borrowings approximate their carrying amounts due to the short-term nature of these instruments. The Company estimates the fair value of its long-term debt using quoted market prices as of the last business day of the applicable quarter. The Company classifies the measurement of its long-term debt as a Level 1 measurement. The carrying amounts of long-term debt reflect the unamortized portions of debt issuance costs and the original issue discounts. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | 12 Months Ended |
Oct. 30, 2022 | Jan. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Table Of Weighted Average Black Scholes Fair Value Assumptions [Table Text Block] | The following summarizes the assumptions used to estimate the fair value of stock options granted during the thirty-nine weeks ended October 30, 2022 and October 31, 2021 and the resulting weighted average grant date fair value per stock option: 10/30/22 10/31/21 Weighted average risk-free interest rate 2.50 % 1.24 % Weighted average expected stock option term (in years) 6.25 6.25 Weighted average Company volatility 47.34 % 47.58 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per stock option $ 34.27 $ 48.28 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. The expected stock option term represents the weighted average period of time that stock options granted are expected to be outstanding, based on vesting schedules and the contractual term of the stock options. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. Expected dividends are based on the anticipated common stock cash dividend rate for the Company at the time of grant; the dividend assumption for the stock options granted during the thirty-nine weeks ended October 31, 2021 was not affected by the Company’s suspension of its cash dividend beginning with the second quarter of 2020 in response to the impacts of the COVID-19 pandemic on its business and as a condition of the June 2020 Amendment that was in effect through June 10, 2021, as such suspension was viewed as temporary. Please see Note 15, “Stockholders' Equity,” for further discussion of dividends on the Company’s common stock. The Company has continued to utilize the simplified method to estimate the expected term for its “plain vanilla” stock options granted due to a lack of relevant historical data resulting, in part, from changes in the pool of employees receiving stock option grants. The Company will continue to evaluate the appropriateness of utilizing such method. | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Stock option activity for the thirty-nine weeks ended October 30, 2022 was as follows: (In thousands, except per stock option data) Stock Options Weighted Average Exercise Price Outstanding at January 30, 2022 688 $ 103.40 Granted 134 71.51 Exercised — — Forfeited / Expired 98 103.42 Outstanding at October 30, 2022 724 $ 97.48 Exercisable at October 30, 2022 481 $ 108.43 | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | RSU activity for the thirty-nine weeks ended October 30, 2022 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 30, 2022 1,176 $ 88.09 Granted 696 71.08 Vested 405 92.16 Forfeited 126 85.93 Non-vested at October 30, 2022 1,341 $ 78.24 | |
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block] | 10/30/22 10/31/21 Weighted average risk-free interest rate 2.91 % 0.33 % Weighted average Company volatility 64.02 % 60.69 % Expected annual dividends per share $ 0.15 $ 0.15 Weighted average grant date fair value per PSU $ 103.36 $ 159.29 The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for the term corresponding to the three-year performance period. Company volatility is based on the historical volatility of the Company’s common stock over a period of time corresponding to the three-year performance period. Expected dividends are based on the anticipated common stock cash dividend rate for the Company at the time of grant; the dividend assumption for the PSUs granted during the thirty-nine weeks ended October 31, 2021 was not affected by the Company’s suspension of its cash dividend beginning with the second quarter of 2020 in response to the impacts of the COVID-19 pandemic on its business and as a condition of the June 2020 Amendment that was in effect through June 10, 2021, as such suspension was viewed as temporary. Please see Note 15, “Stockholders' Equity,” for further discussion of dividends on the Company’s common stock. | |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Total PSU activity for the thirty-nine weeks ended October 30, 2022 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 30, 2022 248 $ 93.15 Granted 72 87.16 Reduction due to market conditions not satisfied 67 118.28 Vested — — Forfeited 2 77.54 Non-vested at October 30, 2022 251 $ 84.98 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss [Table Text Block] | The following tables present the changes in AOCL, net of related taxes, by component for the thirty-nine weeks ended October 30, 2022 and October 31, 2021: (In millions) Foreign currency translation adjustments Net unrealized and realized gain on effective cash flow hedges Total Balance, January 30, 2022 $ (665.9) $ 53.2 $ (612.7) Other comprehensive (loss) income before reclassifications (261.7) (1)(2) 51.5 (210.2) Less: Amounts reclassified from AOCL (3.4) (3) 9.8 6.4 Other comprehensive (loss) income (258.3) 41.7 (216.6) Balance, October 30, 2022 $ (924.2) $ 94.9 $ (829.3) (In millions) Foreign currency translation adjustments Net unrealized and realized (loss) gain on effective cash flow hedges Total Balance, January 31, 2021 $ (481.6) $ (37.5) $ (519.1) Other comprehensive (loss) income before reclassifications (79.7) (1)(2) 74.6 (5.1) Less: Amounts reclassified from AOCL — 0.2 0.2 Other comprehensive (loss) income (79.7) 74.4 (5.3) Balance, October 31, 2021 $ (561.3) $ 36.9 $ (524.4) (1) Foreign currency translation adjustments included a net gain on net investment hedges of $99.6 million and $41.3 million during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, respectively. (2) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro. (3) Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss [Table Text Block] | The following table presents reclassifications from AOCL to earnings for the thirteen and thirty-nine weeks ended October 30, 2022 and October 31, 2021: Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Statements of Operations Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Realized gain (loss) on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 9.9 $ (6.6) $ 13.6 $ 1.2 Cost of goods sold Interest rate swap agreements — (1.3) — (1.3) SG&A (1) Interest rate swap agreements — (0.7) — (2.6) Interest expense Less: Tax effect 2.7 (1.9) 3.8 (2.9) Income tax (benefit) expense Total, net of tax $ 7.2 $ (6.7) $ 9.8 $ 0.2 Foreign currency translation adjustments: Karl Lagerfeld transaction $ — $ — $ (3.4) (2) $ — Equity in net income of unconsolidated affiliates Less: Tax effect — — — — Income tax (benefit) expense Total, net of tax $ — $ — $ (3.4) $ — (1) The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021. Please see Note 11, “Derivative Financial Instruments,” for further discussion. (2) Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. |
EXIT ACTIVITY COSTS (Tables)
EXIT ACTIVITY COSTS (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Heritage Retail Exit [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | Heritage Brands Retail Exit Costs The Company announced in July 2020 plans to streamline its North American operations to better align its business with the evolving retail landscape, including the exit from its Heritage Brands Retail business, which consisted of 162 directly operated stores in North America and was substantially completed in the second quarter of 2021. In connection with the exit from the Heritage Brands Retail business, the Company recorded pre-tax costs during the thirty-nine weeks ended October 31, 2021 and recorded total cumulative costs during 2020 and 2021 as shown in the table below. All expected costs related to the exit from the Heritage Brands Retail business were incurred by the end of 2021. (In millions) Costs Incurred During the Thirty-Nine Weeks Ended 10/31/21 Cumulative Costs Incurred Severance, termination benefits and other employee costs $ 10.8 $ 25.4 Long-lived asset impairments — 7.2 Accelerated amortization of lease assets 5.9 13.1 Contract termination and other costs 4.4 4.4 Total $ 21.1 $ 50.1 The costs incurred during 2020 and 2021 relate to SG&A expenses of the Heritage Brands Retail segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. |
Schedule of Restructuring Reserve by Type of Cost | The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ 3.5 $ — $ 3.5 $ — Contract termination and other costs 2.4 — 2.4 — Total $ 5.9 $ — $ 5.9 $ — |
Reduction in Workforce and Real Estate Footprint | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | 2021 Reductions in Workforce and Real Estate Footprint The Company announced in March 2021 plans to streamline its 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, which resulted in annual cost savings of approximately $60 million. In connection with these activities, the Company recorded pre-tax costs during 2021 as shown in the following table. All expected costs related to the 2021 reductions in workforce and real estate footprint were incurred during the thirty-nine weeks ended October 31, 2021. (In millions) Costs Incurred During the Thirteen Weeks Ended 10/31/21 Costs Incurred During the Thirty-Nine Weeks Ended 10/31/21 Severance, termination benefits and other employee costs $ 2.5 $ 15.7 Long-lived asset impairments — 28.1 Contract termination and other costs — 3.8 Total $ 2.5 $ 47.6 |
Schedule of Restructuring Reserve by Type of Cost | Of the charges incurred during the thirty-nine weeks ended October 31, 2021, $1.7 million relate to SG&A expenses of the Tommy Hilfiger North America segment, $8.9 million relate to SG&A expenses of the Tommy Hilfiger International segment, $2.1 million relate to SG&A expenses of the Calvin Klein North America segment, $6.4 million relate to SG&A expenses of the Calvin Klein International segment and $28.5 million relate to corporate SG&A expenses not allocated to any reportable segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. Please see Note 12, “Fair Value Measurements,” for further discussion of the long-lived asset impairments recorded during the thirty-nine weeks ended October 31, 2021. The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ 6.2 $ — $ 2.6 $ 3.6 |
Russia Business Exit | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | Russia Business Exit Costs As a result of the war in Ukraine, the Company made the decision in the second quarter of 2022 to exit from its Russia business, including the closure of its retail stores in Russia and the cessation of its wholesale operations in Russia and Belarus. In connection with this exit, the Company recorded pre-tax costs during the thirty-nine weeks ended October 30, 2022 as shown in the following table. All expected costs related to the exit from the Russia business were incurred during the thirty-nine weeks ended October 30, 2022. (In millions) Costs Incurred During the Thirty-Nine Weeks Ended 10/30/22 Severance, termination benefits and other employee costs $ 2.1 Long-lived asset impairments 43.6 Contract termination and other costs 4.8 Total $ 50.5 Of the charges incurred during the thirty-nine weeks ended October 30, 2022, $36.7 million relate to SG&A expenses of the Tommy Hilfiger International segment and $13.8 million relate to SG&A expenses of the Calvin Klein International segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. |
Schedule of Restructuring Reserve by Type of Cost | The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ — $ 2.1 $ 1.0 $ 1.1 Contract termination and other costs — 4.8 0.4 4.4 Total $ — $ 6.9 $ 1.4 $ 5.5 |
2022 cost savings initiative | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | 2022 Cost Savings Initiative The Company announced in August 2022 it would be taking steps to streamline its organization and simplify its ways of working. The Company plans to reduce people costs in its global offices by approximately 10% by the end of 2023 to drive efficiencies and enable continued strategic investments to fuel growth, including in digital, supply chain and consumer engagement. The Company expects these reductions will generate annual cost savings of over $100 million, net of continued strategic people investments. In connection with this initiative, the Company recorded pre-tax costs during the thirteen and thirty-nine weeks ended October 30, 2022 related to initial actions taken under the plan, as shown in the following table. The Company expects to incur additional costs in connection with this initiative, however the additional costs are not known at this time. (In millions) Costs Incurred During the Thirteen and Thirty-Nine Weeks Ended 10/30/22 Severance, termination benefits and other employee costs $ 16.7 Of the charges incurred during the thirteen and thirty-nine weeks ended October 30, 2022, $4.2 million relate to SG&A expenses of the Tommy Hilfiger North America segment, $2.1 million relate to SG&A expenses of the Tommy Hilfiger International segment, $4.0 million relate to SG&A expenses of the Calvin Klein North America segment, $2.7 million relate to SG&A expenses of the Calvin Klein International segment, $2.2 million relate to SG&A expenses of the Heritage Brands Wholesale segment and $1.5 million relate to corporate SG&A expenses not allocated to any reportable segment. Please see Note 19, “Segment Data,” for further discussion of the Company’s reportable segments. |
Schedule of Restructuring Reserve by Type of Cost | The liabilities at October 30, 2022 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows: (In millions) Liability at 1/30/22 Costs Incurred During theThirty-Nine Weeks Ended 10/30/22 Costs Paid During theThirty-Nine Weeks Ended 10/30/22 Liability at 10/30/22 Severance, termination benefits and other employee costs $ — $ 16.7 $ 1.9 $ 14.8 |
NET (LOSS) INCOME PER COMMON _2
NET (LOSS) INCOME PER COMMON SHARE (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of (Loss) Earnings Per Share, Basic and Diluted [Table Text Block] | The Company computed its basic and diluted net (loss) income per common share as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions, except per share data) 10/30/22 10/31/21 10/30/22 10/31/21 Net (loss) income attributable to PVH Corp. $ (186.7) $ 279.7 $ 61.7 $ 561.5 Weighted average common shares outstanding for basic net (loss) income per common share 64.8 70.9 66.5 71.2 Weighted average impact of dilutive securities — 1.1 0.5 1.1 Total shares for diluted net (loss) income per common share 64.8 72.0 67.0 72.3 Basic net (loss) income per common share attributable to PVH Corp. $ (2.88) $ 3.94 $ 0.93 $ 7.89 Diluted net (loss) income per common share attributable to PVH Corp. $ (2.88) $ 3.89 $ 0.92 $ 7.77 |
Schedule of Antidilutive Securities Excluded from Computation of (Loss) Earnings Per Share [Table Text Block] | Potentially dilutive securities excluded from the calculation of diluted net (loss) income per common share as the effect would be anti-dilutive were as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Weighted average potentially dilutive securities 2.2 0.6 1.5 0.7 |
Nonmonetary Transactions (Table
Nonmonetary Transactions (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Nonmonetary Transactions [Abstract] | |
Schedule of Supplemental Cash Flow Information Related to Leases [Table Text Block] | Lease Transactions Supplemental cash flow information related to leases was as follows: Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 341.4 $ 369.0 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 3.0 3.9 Noncash transactions: Right-of-use assets obtained in exchange for new operating lease liabilities 208.2 210.5 Right-of-use assets obtained in exchange for new finance lease liabilities 6.2 2.1 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 9 Months Ended |
Oct. 30, 2022 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s revenue by segment was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 (1) 10/31/21 (1) 10/30/22 (1) 10/31/21 (1) Revenue – Tommy Hilfiger North America Net sales $ 307.2 $ 269.2 $ 830.9 $ 747.8 Royalty revenue 24.3 25.2 62.2 58.2 Advertising and other revenue 6.7 6.8 16.1 14.9 Total 338.2 301.2 909.2 820.9 Revenue – Tommy Hilfiger International Net sales 805.9 895.8 2,345.7 2,532.1 Royalty revenue 16.9 16.5 46.3 42.5 Advertising and other revenue 5.9 4.2 15.1 11.4 Total 828.7 916.5 2,407.1 2,586.0 Revenue – Calvin Klein North America Net sales 314.7 292.1 872.6 809.1 Royalty revenue 49.8 42.7 126.2 103.0 Advertising and other revenue 15.8 14.6 41.3 34.6 Total 380.3 349.4 1,040.1 946.7 Revenue – Calvin Klein International Net sales 570.0 597.9 1,677.8 1,683.5 Royalty revenue 14.1 12.5 38.3 34.0 Advertising and other revenue 2.1 1.3 6.5 4.5 Total 586.2 611.7 1,722.6 1,722.0 Revenue – Heritage Brands Wholesale Net sales 146.9 153.0 455.4 561.9 Royalty revenue 0.3 0.5 0.7 10.3 Advertising and other revenue 0.2 0.2 0.4 1.6 Total 147.4 153.7 456.5 573.8 Revenue – Heritage Brands Retail Net sales — — — 75.6 Royalty revenue — — — — Advertising and other revenue — — — — Total — — — 75.6 Total Revenue Net sales 2,144.7 2,208.0 6,182.4 6,410.0 Royalty revenue 105.4 97.4 273.7 248.0 Advertising and other revenue 30.7 27.1 79.4 67.0 Total $ 2,280.8 $ 2,332.5 $ 6,535.5 $ 6,725.0 (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’s revenue by distribution channel was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 10/31/21 10/30/22 10/31/21 Wholesale net sales $ 1,287.1 $ 1,308.4 $ 3,596.2 $ 3,756.3 Owned and operated retail stores 710.7 737.1 2,113.9 2,131.7 Owned and operated digital commerce sites 146.9 162.5 472.3 522.0 Retail net sales 857.6 899.6 2,586.2 2,653.7 Net sales 2,144.7 2,208.0 6,182.4 6,410.0 Royalty revenue 105.4 97.4 273.7 248.0 Advertising and other revenue 30.7 27.1 79.4 67.0 Total $ 2,280.8 $ 2,332.5 $ 6,535.5 $ 6,725.0 The Company’s (loss) income before interest and taxes by segment was as follows: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In millions) 10/30/22 (1) 10/31/21 (1) 10/30/22 (1) 10/31/21 (1) (Loss) income before interest and taxes – Tommy Hilfiger North America $ (169.9) (3)(4) $ (1.2) $ (184.8) (3)(4) $ 18.4 (8) Income before interest and taxes – Tommy Hilfiger International 121.7 (4) 178.6 349.6 (4)(6) 510.7 (8) (Loss) income before interest and taxes – Calvin Klein North America (140.0) (3)(4) 20.5 (106.4) (3)(4) 59.4 (8) Income before interest and taxes – Calvin Klein International 12.1 (3)(4) 110.9 187.6 (3)(4)(6) 306.2 (8) Income before interest and taxes – Heritage Brands Wholesale 7.3 (4) 116.7 (5) 37.5 (4) 160.1 (5) Loss before interest and taxes – Heritage Brands Retail — — — (33.9) (9) Loss before interest and taxes – Corporate (2) (45.2) (4) (48.3) (110.2) (4)(7) (167.3) (8) (Loss) income before interest and taxes $ (214.0) $ 377.2 $ 173.3 $ 853.6 (1) (Loss) income 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) 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 after the Company resumed the equity method of accounting for its investment in the fourth quarter of 2021 and until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 5, “Redeemable Non-Controlling Interest,” for further discussion of PVH Ethiopia and Note 6, “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 (which are generally recorded in the fourth quarter). (3) (Loss) income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 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. (4) (Loss) income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 2022 included costs of $16.7 million incurred related to the cost savings initiative described in Note 16, “Exit Activity Costs,” consisting of severance. Such costs were included in the Company’s segments as follows: $4.2 million in Tommy Hilfiger North America, $2.1 million in Tommy Hilfiger International, $4.0 million in Calvin Klein North America, $2.7 million in Calvin Klein International, $2.2 million in Heritage Brands Wholesale and $1.5 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 for the thirteen and thirty-nine weeks ended October 31, 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 4, “Acquisitions and Divestitures,” for further discussion of the transaction. (6) Income before interest and taxes for the thirty-nine weeks ended October 30, 2022 included costs of $50.5 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: $36.7 million in Tommy Hilfiger International and $13.8 million in Calvin Klein International. Please see Note 16, “Exit Activity Costs,” for further discussion. (7) Loss before interest and taxes for the thirty-nine weeks ended October 30, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. (8) Income (loss) before interest and taxes for the thirty-nine weeks ended October 31, 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 16, “Exit Activity Costs,” for further discussion. (9) Loss before interest and taxes for the thirty-nine weeks ended October 31, 2021 included costs and operating losses associated with the wind down of the Heritage Brands Retail business that was substantially completed in the second quarter of 2021. Please see Note 16, “Exit Activity Costs,” for further discussion. |
GENERAL (Details)
GENERAL (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Jan. 30, 2022 | Oct. 30, 2022 EUR (€) | May 31, 2021 | Apr. 28, 2021 USD ($) | Apr. 08, 2020 USD ($) | |
General Footnote Disclosures [Line Items] | |||||||||
Fiscal Year Minimum Week Period | P1Y | ||||||||
Fiscal Year Maximum Weeks Period | P1Y7D | ||||||||
Goodwill, Impairment Loss | $ 417.1 | $ 0 | $ 417.1 | $ 0 | |||||
Impairment of Long-Lived Assets Held-for-use | 43.6 | 35.1 | |||||||
Ethiopia Joint Venture [Member] | 75% [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Non-controlling Interest, Ownership Percentage by Parent | 75% | ||||||||
Ethiopia Joint Venture [Member] | 25% [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25% | ||||||||
Senior notes due 2024 [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Debt instrument, face amount | $ 525 | $ 525 | € 525 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | 3.625% | ||||||
Senior Notes Due 2025 | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Debt instrument, face amount | $ 500 | $ 500 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | 4.625% | ||||||
Property, Plant and Equipment [Member] | Fair Value, Nonrecurring [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Impairment of Long-Lived Assets Held-for-use | $ 17.2 | 17.3 | |||||||
Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Noncash impairment charges | 460.7 | ||||||||
Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | Selling, General and Administrative Expenses [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Noncash impairment charges | 43.6 | 35.1 | |||||||
Goodwill [Member] | Fair Value, Nonrecurring [Member] | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Goodwill, Impairment Loss | $ 417.1 | ||||||||
2020 Facility [Member] | United States of America, Dollars | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 275 | ||||||||
2021 Facility | United States of America, Dollars | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 275 | ||||||||
Russia, Belarus and Ukraine | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Approximate percentage of total revenue | 2% | ||||||||
TURKEY | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Percentage of total assets | 1% | 1% | 1% | ||||||
Reduction in Workforce and Real Estate Footprint | |||||||||
General Footnote Disclosures [Line Items] | |||||||||
Restructuring Projected Annual Cost Savings | $ 60 | $ 60 |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | Jan. 30, 2022 | |||
Deferred Revenue [Line Items] | |||||||
Payment terms, due from customer | Payment is typically due within 30 to 90 days. | ||||||
Long-term deferred revenue liabilities (included in Other Liabilities) | $ 12.5 | $ 12 | $ 12.5 | $ 12 | $ 15 | ||
Movement in Deferred Revenue [Roll Forward] | |||||||
Deferred revenue, beginning balance | 44.9 | 55.8 | |||||
Net additions to deferred revenue during the period | 28.9 | 30 | |||||
Reductions in deferred revenue for revenue recognized during the period | (2.7) | (1.8) | (39) | [1] | (48.3) | [1] | |
Reduction in deferred revenue related to the Heritage Brands transaction | 0 | (1.6) | [2] | ||||
Deferred revenue, ending balance | $ 34.8 | $ 35.9 | $ 34.8 | $ 35.9 | |||
[1]Represents the amount of revenue recognized during the period that was included in the deferred revenue balance at the beginning of the period and does not contemplate revenue recognized from amounts deferred during the period. The amounts include $2.7 million and $1.8 million of revenue recognized during the thirteen weeks ended October 30, 2022 and October 31, 2021, respectively.[2]The Company recorded a $1.6 million reduction in deferred revenue in connection with the Heritage Brands transaction. Please see Note 4, “Acquisitions and Divestitures,” for further discussion. |
REVENUE Revenue, Remaining Perf
REVENUE Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Oct. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 849.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 40.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 257.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 552 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | 9 Months Ended | |||
May 31, 2019 | Oct. 30, 2022 | Oct. 31, 2021 | Nov. 01, 2020 | |
Business Acquisition [Line Items] | ||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 0 | $ 15.2 | ||
Australia Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Ownership Percentage | 100% | |||
Mandatorily Redeemable Non-Controlling Interest to be Purchased in Tranche 1 | 50% | |||
Tranche 1 Effective Period | one year after the closing | |||
Tranche 2 Effective Period | two years after the closing | |||
Payments for Repurchase of Redeemable Noncontrolling Interest | 24.4 | $ 17.3 | ||
Australia Acquisition [Member] | Financing Cash Flow [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments for Repurchase of Redeemable Noncontrolling Interest | 15.2 | 12.7 | ||
Australia Acquisition [Member] | Operating Cash Flow [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 9.2 | $ 4.6 | ||
Australia Acquisition [Member] | 6% [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6% | |||
Australia Acquisition [Member] | Gazal Corporation Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 78% | |||
Australia Acquisition [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Business Acquisition [Line Items] | ||||
Redeemable Noncontrolling Interest, Equity, Common, Redemption value | $ 26.2 |
ACQUISITIONS Fair Value of Acqu
ACQUISITIONS Fair Value of Acquisition Consideration (Details) $ in Millions | May 31, 2019 USD ($) |
Fair Value, Inputs, Level 3 [Member] | Australia Acquisition [Member] | |
Business Acquisition [Line Items] | |
Redeemable Noncontrolling Interest, Equity, Common, Redemption value | $ 26.2 |
DIVESTITURES (Details)
DIVESTITURES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
Business Acquisition [Line Items] | |||
Proceeds from sale of certain Heritage Brands trademarks and other assets | $ 0 | $ 222.9 | |
Heritage Brands Transaction [Member] | |||
Business Acquisition [Line Items] | |||
Net proceeds from sale of certain Heritage Brands trademarks and other assets | 216.3 | ||
Heritage Brands transaction gain | $ 1.8 | ||
Heritage Brands Transaction [Member] | Non-service related pension and postretirement income [Member] | |||
Business Acquisition [Line Items] | |||
Special Termination Benefits | 1.4 | ||
Heritage Brands Transaction [Member] | Other gain | |||
Business Acquisition [Line Items] | |||
Other gain | 118.5 | ||
Heritage Brands Transaction [Member] | Trademarks | |||
Business Acquisition [Line Items] | |||
Net carrying value | $ 97.8 | $ 97.8 |
REDEEMABLE NON-CONTROLLING IN_2
REDEEMABLE NON-CONTROLLING INTEREST (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | May 31, 2021 | Jun. 29, 2016 | |
Non-controlling Interest [Line Items] | ||||||
Net loss attributable to redeemable non-controlling interest | $ 0 | $ 0 | $ 0 | $ (0.3) | ||
Ethiopia Joint Venture [Member] | ||||||
Non-controlling Interest [Line Items] | ||||||
Redeemable Non-Controlling Interest | $ (3.7) | |||||
Redeemable Non-controlling Interest, Equity, Fair Value | $ 0.1 | |||||
75% [Member] | Ethiopia Joint Venture [Member] | ||||||
Non-controlling Interest [Line Items] | ||||||
Non-controlling Interest, Ownership Percentage by Parent | 75% | |||||
25% [Member] | Ethiopia Joint Venture [Member] | ||||||
Non-controlling Interest [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 25% |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 9 Months Ended | |||
May 31, 2022 | Oct. 30, 2022 | Oct. 31, 2021 | Jan. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Dividends received from unconsolidated affiliates | $ 16.2 | $ 18.8 | ||
Investments in Unconsolidated Affiliates | 175.4 | 157.3 | $ 165.3 | |
Cash proceeds received from sale of equity method investment | (19.1) | $ 0 | ||
Karl Lagerfeld [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in Unconsolidated Affiliates | $ 1 | |||
Equity Method Investment, Ownership Percentage | 8% | |||
Equity Method Investment, Realized Gain on Sale | $ 16.1 | |||
Karl Lagerfeld Transaction | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from Sale of Equity Method Investment | $ 20.5 | |||
Reclassification from AOCL, Foreign Currency Translation Adjustments, Current Period, Net of Tax | 3.4 | |||
Cash proceeds received from sale of equity method investment | 19.1 | |||
Proceeds held in escrow from sale of equity method investment | 1.4 | |||
Equity Method Investment, Realized Gain on Sale | $ 16.1 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | Aug. 01, 2022 | Jan. 30, 2022 | |
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | $ 2,214 | $ 2,894.2 | $ 2,214 | $ 2,894.2 | $ 2,828.9 | |
Tradename, Carrying Amount | 2,627.9 | 2,763.5 | 2,627.9 | 2,763.5 | 2,722.9 | |
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 3,615.2 | |||||
Accumulated impairment losses, beginning of period | (786.3) | |||||
Goodwill, net, beginning of period | 2,828.9 | |||||
Goodwill, Impairment Loss | (417.1) | 0 | (417.1) | 0 | ||
Currency translation | (197.8) | |||||
Goodwill, gross, end of period | 3,417.4 | 3,417.4 | ||||
Accumulated impairment losses, end of period | (1,203.4) | (1,203.4) | ||||
Goodwill, net, end of period | 2,214 | $ 2,894.2 | $ 2,214 | $ 2,894.2 | ||
SERP Plans [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Plan Benefit Payment Period | ten years | |||||
Minimum Number of Years of Employment | ten years | |||||
Calvin Klein Licensing and Advertising International [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | $ 41 | |||||
Calvin Klein Licensing and Advertising International [Member] | 100 bps change in annual revenue growth rate [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Change in Estimated Fair Value | $ 8 | |||||
Calvin Klein Licensing and Advertising North America | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 9% | |||||
Goodwill | $ 330.4 | |||||
Goodwill [Roll Forward] | ||||||
Reporting unit carrying value | 464.4 | |||||
Calvin Klein Licensing and Advertising North America | 100 bps change in annual revenue growth rate [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Change in Estimated Fair Value | 43 | |||||
Calvin Klein Licensing and Advertising North America | 100 bps change in weighted average cost of capital [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Change in Estimated Fair Value | $ 34 | |||||
Goodwill [Member] | Fair Value, Nonrecurring [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Impairment Loss | $ (417.1) | |||||
Tradename, Carrying Amount | 458.1 | 458.1 | ||||
Goodwill [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Total Assets, Fair Value | 41 | 41 | ||||
Goodwill [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Risk Premium | 4% | |||||
Goodwill [Member] | Input 1 | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Discount Rate for Estimated Future Operating Cash Flows | 16% | |||||
Goodwill [Member] | Input 2 | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Discount Rate for Estimated Future Operating Cash Flows | 16.50% | |||||
Other Intangible Assets | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 183% | |||||
Warner's | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Percentage of fair value in excess of carrying amount | 4% | |||||
Discount Rate for Estimated Future Operating Cash Flows | 16% | |||||
Tradename, Carrying Amount | $ 95.8 | |||||
Warner's | 100 bps change in annual revenue growth rate [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Change in Estimated Fair Value | 7 | |||||
Warner's | 100 bps change in weighted average cost of capital [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Change in Estimated Fair Value | 7 | |||||
Calvin Klein North America [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 331.7 | 331.7 | 494.5 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 781.8 | |||||
Accumulated impairment losses, beginning of period | (287.3) | |||||
Goodwill, net, beginning of period | 494.5 | |||||
Goodwill, Impairment Loss | (162.6) | |||||
Currency translation | (0.2) | |||||
Goodwill, gross, end of period | 781.6 | 781.6 | ||||
Accumulated impairment losses, end of period | (449.9) | (449.9) | ||||
Goodwill, net, end of period | 331.7 | 331.7 | ||||
Calvin Klein North America [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Impairment Loss | (162.6) | |||||
Calvin Klein International [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 395.1 | 395.1 | 497.5 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 891.5 | |||||
Accumulated impairment losses, beginning of period | (394) | |||||
Goodwill, net, beginning of period | 497.5 | |||||
Goodwill, Impairment Loss | (77.3) | |||||
Currency translation | (25.1) | |||||
Goodwill, gross, end of period | 866.4 | 866.4 | ||||
Accumulated impairment losses, end of period | (471.3) | (471.3) | ||||
Goodwill, net, end of period | 395.1 | 395.1 | ||||
Calvin Klein International [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Impairment Loss | (77.3) | |||||
Tommy Hilfiger North America [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 25.8 | 25.8 | 203 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 203 | |||||
Accumulated impairment losses, beginning of period | 0 | |||||
Goodwill, net, beginning of period | 203 | |||||
Goodwill, Impairment Loss | (177.2) | |||||
Currency translation | 0 | |||||
Goodwill, gross, end of period | 203 | 203 | ||||
Accumulated impairment losses, end of period | 177.2 | 177.2 | ||||
Goodwill, net, end of period | 25.8 | 25.8 | ||||
Tommy Hilfiger North America [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Impairment Loss | (177.2) | |||||
Tommy Hilfiger International [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 1,461.4 | 1,461.4 | 1,633.9 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 1,633.9 | |||||
Accumulated impairment losses, beginning of period | 0 | |||||
Goodwill, net, beginning of period | 1,633.9 | |||||
Goodwill, Impairment Loss | 0 | |||||
Currency translation | (172.5) | |||||
Goodwill, gross, end of period | 1,461.4 | 1,461.4 | ||||
Accumulated impairment losses, end of period | 0 | 0 | ||||
Goodwill, net, end of period | 1,461.4 | 1,461.4 | ||||
Heritage Brands Wholesale [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 0 | 0 | 0 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 105 | |||||
Accumulated impairment losses, beginning of period | (105) | |||||
Goodwill, net, beginning of period | 0 | |||||
Goodwill, Impairment Loss | 0 | |||||
Currency translation | 0 | |||||
Goodwill, gross, end of period | 105 | 105 | ||||
Accumulated impairment losses, end of period | (105) | (105) | ||||
Goodwill, net, end of period | 0 | 0 | ||||
Heritage Brands Retail [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Goodwill | 0 | 0 | $ 0 | |||
Goodwill [Roll Forward] | ||||||
Goodwill, gross, beginning of period | 0 | |||||
Accumulated impairment losses, beginning of period | 0 | |||||
Goodwill, net, beginning of period | 0 | |||||
Goodwill, Impairment Loss | 0 | |||||
Currency translation | 0 | |||||
Goodwill, gross, end of period | 0 | 0 | ||||
Accumulated impairment losses, end of period | 0 | 0 | ||||
Goodwill, net, end of period | $ 0 | $ 0 | ||||
Calvin Klein Licensing and Advertising International [Member] | 100 bps change in weighted average cost of capital [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Change in Estimated Fair Value | $ 6 | |||||
Australia Acquisition [Member] | Reacquired Perpetual License Rights [Member] | ||||||
Goodwill and Other Intangible Assets [Line Items] | ||||||
Discount Rate for Estimated Future Operating Cash Flows | 19% |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Heritage Brands Transaction [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Heritage Brands transaction gain | $ 1.8 | |||
Heritage Brands Transaction [Member] | Non-service related pension and postretirement income [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special Termination Benefits | 1.4 | |||
Speedo Transaction | Non-service related pension and postretirement income [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special Termination Benefits | $ 0.9 | |||
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of Noncontributory Qualified Defined Benefit Pension Plans | 2 | 2 | ||
Vesting Period Non-Contributory Defined Benefit Pension Plans | five years | |||
Service cost | $ 7.8 | 9.9 | $ 23.5 | 30.4 |
Interest cost | 6.3 | 6.2 | 19 | 18.6 |
Expected return on plan assets | (10.4) | (11.2) | (31.3) | (33.4) |
Total | 3.7 | 3.6 | 11.2 | 14.6 |
Pension Plans, Defined Benefit [Member] | Special Termination Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special Termination Benefits | 0 | 0.2 | 0 | 0.5 |
Pension Plans, Defined Benefit [Member] | Heritage Brands Transaction [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Heritage Brands transaction gain | $ 0 | (1.5) | $ 0 | (1.5) |
SERP Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of Noncontributory Non-Qualified Defined Benefit Pension Plans | 3 | 3 | ||
Plan Benefit Payment Activation Age | 65 | 65 | ||
Minimum Age Prior to Employment Termination | 55 | 55 | ||
Plan Benefit Payment Period | ten years | |||
Minimum Number of Years of Employment | ten years | |||
Service cost | $ 0.6 | 1.1 | $ 1.9 | 3.5 |
Interest cost | 0.7 | 0.8 | 2.1 | 2.4 |
Total | 1.3 | 2.8 | 4 | 7.4 |
SERP Plans [Member] | Special Termination Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Special Termination Benefits | 0 | 1.2 | 0 | 1.8 |
SERP Plans [Member] | Heritage Brands Transaction [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Heritage Brands transaction gain | $ 0 | $ (0.3) | $ 0 | $ (0.3) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Number of Noncontributory Qualified Defined Benefit Pension Plans | 2 | 2 |
DEBT Short-Term Lines of Credit
DEBT Short-Term Lines of Credit, Overdraft Facilities, Senior Secured Credit Facilities and Short-Term Revolving Credit Facilities (Details) € in Millions, $ in Millions | 9 Months Ended | |||||
Apr. 28, 2021 USD ($) | Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Apr. 08, 2020 USD ($) | Apr. 29, 2019 USD ($) | Apr. 29, 2019 EUR (€) | |
Line of Credit Facility [Line Items] | ||||||
Repayment of senior unsecured credit facilities | $ 22.5 | $ 844.2 | ||||
2019 Facilities Term Loan A [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of senior unsecured credit facilities | 22.5 | $ 844.2 | ||||
Euro, Australian dollars and other foreign currencies [Member] | 2019 Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | € 200 | |||||
2019 Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | 0 | |||||
Letters of credit outstanding, amount | 10.8 | |||||
Lines of Credit, Foreign Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 18 | |||||
Short-term debt, weighted average interest rate | 0.17% | |||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 21.9 | |||||
Line of credit facility, maximum borrowing capacity | 182.6 | |||||
Commercial Paper [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 80 | |||||
Short-term debt, weighted average interest rate | 4.05% | |||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 130 | |||||
Commercial Paper [Member] | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 675 | |||||
Commercial Paper and 2019 Facilities [Member] | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 675 | |||||
2020 Facility [Member] | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 275 | |||||
Outside of 2019 Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding, amount | 57 | |||||
2021 Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 0 | |||||
Payments of Debt Issuance Costs | $ 0.8 | |||||
2021 Facility | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 275 |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) $ in Millions | Oct. 30, 2022 USD ($) | [1] |
Debt Instrument [Line Items] | ||
Remainder of 2022 | $ 9.3 | |
2023 | 137.3 | |
2024 | 914.2 | |
2025 | 500 | |
2026 | 0 | |
2027 | $ 597.1 | |
[1]A portion of the Company’s mandatory long-term debt repayments is denominated in euros and subject to changes in the exchange rate of the United States dollar against the euro. |
DEBT Schedule of Long Term Debt
DEBT Schedule of Long Term Debt Instruments (Details) € in Millions, $ in Millions, $ in Millions | 9 Months Ended | ||||||||
Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 30, 2022 EUR (€) | Jan. 30, 2022 USD ($) | Apr. 08, 2020 USD ($) | Apr. 29, 2019 USD ($) | Apr. 29, 2019 EUR (€) | Apr. 29, 2019 CAD ($) | ||
Debt Instrument [Line Items] | |||||||||
Percentage of long-term debt at fixed interest rates | 80% | 80% | |||||||
Long-term debt (including portion classified as current), carrying amount | $ 2,146.4 | $ 2,638 | $ 2,352.4 | ||||||
Long-term Debt, Current Maturities | 37.3 | 32.8 | 34.8 | ||||||
Long-term Debt, Excluding Current Maturities | 2,109.1 | 2,605.2 | 2,317.6 | ||||||
Repayment of senior unsecured credit facilities | $ 22.5 | 844.2 | |||||||
Senior debenture due 2023 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||||
Senior Notes | $ 99.9 | 99.8 | 99.8 | ||||||
Long-term Debt, Gross | $ 100 | ||||||||
Senior notes due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | |||||||
Senior Notes | [1] | $ 520 | 606.8 | 580.8 | |||||
Debt instrument, face amount | $ 525 | € 525 | |||||||
Senior notes due 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | |||||||
Senior Notes | [1] | $ 592.6 | 692.6 | 662.6 | |||||
Debt instrument, face amount | € | € 600 | ||||||||
Senior Notes Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | |||||||
Senior Notes | $ 496.7 | 495.4 | 495.7 | ||||||
Debt instrument, face amount | 500 | ||||||||
2019 Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, amount outstanding | 0 | ||||||||
Letters of credit outstanding, amount | 10.8 | ||||||||
2020 Facility [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 275 | ||||||||
2019 Facilities USD Term Loan A [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured Debt | $ 1,093.2 | ||||||||
Long-term Debt, Gross | 0 | ||||||||
2019 Facilities Euro Term Loan A [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured Debt | € | € 500 | ||||||||
Long-term Debt, Gross | € | € 440.6 | ||||||||
2019 Facilities [Member] | United States Dollars or Canadian Dollars [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 70 | ||||||||
2019 Facilities [Member] | United States Dollars and Hong Kong Dollars [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 50 | ||||||||
2019 Facilities [Member] | Euro, Australian dollars and other foreign currencies [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | € | € 200 | ||||||||
2019 Facilities Term Loan A [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unsecured Debt | [1],[2] | 437.2 | 743.4 | $ 513.5 | |||||
Repayment of senior unsecured credit facilities | $ 22.5 | $ 844.2 | |||||||
2019 Facilities Term Loan A [Member] | One Month Adjusted Eurocurrency Rate Loan [Member] | United States Dollars or Euros [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||||
2019 Facilities Term Loan A [Member] | Base Rate [Member] | United States Dollars or Euros [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||||||
2019 and 2020 Facilties | United States of America, Dollars | United States Federal Fund Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||
2019 and 2020 Facilties | United States of America, Dollars | One Month Adjusted Eurocurrency Rate Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||||||
[1]The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro.[2]The outstanding principal balance for the United States dollar-denominated Term Loan A facility and the euro-denominated Term Loan A facility was zero and €440.6 million, respectively, as of October 30, 2022. |
DEBT Interest Rate Swap Agreeme
DEBT Interest Rate Swap Agreements (Details) - USD ($) $ in Millions | Oct. 30, 2022 | Feb. 26, 2021 | Feb. 28, 2020 | Feb. 18, 2020 | Jun. 28, 2019 | Feb. 19, 2019 | Aug. 06, 2018 | |
2020 Interest Rate Swap - August 2019 Designation - February 2022 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 1.1975% | |||||||
Derivative, Notional Amount | $ 0 | [1] | $ 50 | |||||
2020 Interest Rate Swap - June 2019 Designation - February 2022 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 1.409% | |||||||
Derivative, Notional Amount | $ 0 | [1] | 50 | |||||
2019 Interest Rate Swap - June 2019 Designation - July 2021 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 1.719% | |||||||
Derivative, Notional Amount | $ 0 | $ 50 | ||||||
2020 Interest Rate Swap - January 2019 Designation - February 2021 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 2.4187% | |||||||
Derivative, Notional Amount | $ 0 | $ 50 | ||||||
2019 Interest Rate Swap - November 2018 Designation - February 2021 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 2.8645% | |||||||
Derivative, Notional Amount | $ 0 | $ 139.2 | ||||||
2019 Interest Rate Swap - October 2018 Designation - February 2021 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 2.9975% | |||||||
Derivative, Notional Amount | $ 0 | $ 115.7 | ||||||
2018 Interest Rate Swap - June 2018 Designation - February 2021 Expiration | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 2.6825% | |||||||
Derivative, Notional Amount | $ 0 | $ 50 | ||||||
2020 Interest Rate Swap - 3 Year Term - February 2020 Designation | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 1.2575% | |||||||
Derivative, Notional Amount | $ 0 | [1] | $ 50 | |||||
2020 Interest Rate Swap - 2 Year Term - February 2020 Desigination | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 1.1625% | |||||||
Derivative, Notional Amount | $ 0 | [1] | $ 50 | |||||
2020 Interest Rate Swap - 2 Year Term - March 2020 Designation | ||||||||
Schedule of Interest Rate Swap Agreements [Line Items] | ||||||||
Derivative, Fixed Interest Rate | 0.562% | |||||||
Derivative, Notional Amount | $ 0 | [1] | $ 50 | |||||
[1]The Company terminated in 2021 the interest rate swap agreements due to expire in February 2022 and February 2023 in connection with the early repayment of the outstanding principal balance under its USD TLA facility. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
Income Taxes [Line Items] | ||||
Effective income tax rate | 19.80% | 20.70% | 45.10% | 27.40% |
International Tax Jurisdictions | 40 | |||
Income tax (benefit) expense | $ (46.1) | $ 72.9 | $ 50.7 | $ 212.1 |
Income (loss) before taxes | (232.8) | 352.6 | 112.4 | 773.3 |
Goodwill, Impairment Loss | 417.1 | 0 | 417.1 | 0 |
Rent abatement [Abstract] | $ 1.6 | $ 4.2 | $ 4 | $ 24.8 |
Inflation Reduction Act Percent Of Minimum Tax | 15% | |||
Inflation Reduction Act Percent Of Excise Tax On Net Stock Repurchases | 1% | |||
Goodwill [Member] | Fair Value, Nonrecurring [Member] | ||||
Income Taxes [Line Items] | ||||
Goodwill, Impairment Loss | $ 417.1 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | Oct. 30, 2022 EUR (€) | Jan. 30, 2022 USD ($) | ||||
Derivative [Line Items] | |||||||||
Cost of goods sold | $ 1,006.6 | $ 987.4 | $ 2,803.1 | $ 2,817.2 | |||||
Selling, general and administrative expenses | 1,085 | 1,097.3 | 3,194.8 | 3,198.7 | |||||
Interest expense | $ 21.1 | 25.9 | $ 65.9 | 83.7 | |||||
Percentage of long-term debt at fixed interest rates | 80% | 80% | 80% | ||||||
Repayment of senior unsecured credit facilities | $ 22.5 | 844.2 | |||||||
2019 Facilities Term Loan A [Member] | |||||||||
Derivative [Line Items] | |||||||||
Repayment of senior unsecured credit facilities | 22.5 | 844.2 | |||||||
Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | $ 95.8 | 28.5 | 95.8 | 28.5 | $ 53.6 | ||||
Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 1.8 | 1.3 | 1.8 | 1.3 | 2.7 | ||||
Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 6 | 4.3 | 6 | 4.3 | 1.7 | ||||
Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.2 | 0 | 0.2 | 0 | ||||
Foreign Currency Forward Exchange Contracts [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative, Notional Amount | 1,307 | 1,307 | |||||||
Net Investment Hedging [Member] | |||||||||
Derivative [Line Items] | |||||||||
Long-term Debt, Fair Value | 1,013.9 | 1,447.5 | 1,013.9 | 1,447.5 | 1,361.7 | ||||
Long-term Debt, Carrying Amount | 1,112.6 | 1,299.4 | 1,112.6 | 1,299.4 | 1,243.4 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0.5 | 3.4 | 0.5 | 3.4 | 5.6 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | 0 | 0 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 3.1 | 2.1 | 3.1 | 2.1 | 1.1 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | 0 | 0 | ||||
Undesignated contracts [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | 0 | 0 | ||||
Undesignated contracts [Member] | Interest Rate Swap [Member] | Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | 0 | 0 | ||||
Undesignated contracts [Member] | Interest Rate Swap [Member] | Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.5 | 0 | 0.5 | 0 | ||||
Undesignated contracts [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.1 | 0 | 0.1 | 0 | ||||
Undesignated contracts [Member] | Derivative Contract | Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0.5 | 3.4 | 0.5 | 3.4 | 5.6 | ||||
Undesignated contracts [Member] | Derivative Contract | Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | 0 | 0 | ||||
Undesignated contracts [Member] | Derivative Contract | Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 3.1 | 2.6 | 3.1 | 2.6 | 1.1 | ||||
Undesignated contracts [Member] | Derivative Contract | Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.1 | 0 | 0.1 | 0 | ||||
Cost of Sales [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Instruments, Net Gain Reclassification from AOCL to expense, Estimated Net Amount to be Transferred | $ 113.8 | ||||||||
Derivative Instruments, Net Gain Reclassification from AOCL to expense, Estimate of Time to Transfer | 12 months | ||||||||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss) Recognized in Income (Expense), Net | $ 8.7 | (4.7) | 35.3 | (6.9) | |||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Effective Portion, Net | 9.9 | (8.6) | 13.6 | (2.7) | |||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 95.3 | 25.1 | 95.3 | 25.1 | 48 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 1.8 | 1.3 | 1.8 | 1.3 | 2.7 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 2.9 | 1.7 | 2.9 | 1.7 | 0.6 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.1 | 0 | 0.1 | 0 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | |||||||||
Derivative [Line Items] | |||||||||
Other Comprehensive (Loss) Income, Cash Flow Hedge, Gain, before Reclassification and Tax | 24.4 | 17.2 | 70.2 | 82 | |||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Effective Portion, Net | $ 9.9 | $ (6.6) | $ 13.6 | $ 1.2 | |||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Statement of Operations Line Item | Cost of goods sold | Cost of goods sold | Cost of goods sold | Cost of goods sold | |||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | $ 95.3 | $ 25.1 | $ 95.3 | $ 25.1 | 48 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 1.8 | 1.3 | 1.8 | 1.3 | 2.7 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 2.9 | 1.4 | 2.9 | 1.4 | 0.6 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Exchange Forward Inventory Purchases [Member] | Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.1 | 0 | 0.1 | 0 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Other Comprehensive (Loss) Income, Cash Flow Hedge, Gain, before Reclassification and Tax | 0 | 0.1 | 0 | 0.2 | |||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Effective Portion, Net | $ 0 | $ (0.7) | $ 0 | $ (2.6) | |||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Statement of Operations Line Item | Interest expense | Interest expense | Interest expense | Interest expense | |||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 | $ 0 | $ 0 | 0 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Assets [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | 0 | 0 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Accrued Expenses [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0.3 | 0 | 0.3 | 0 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | 0 | 0 | ||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Net Investment Hedging [Member] | |||||||||
Derivative [Line Items] | |||||||||
Other Comprehensive Income, Net Investment Hedge, Gain, before Reclassification and Tax | 27.6 | 27.4 | 132.6 | 54.7 | |||||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Derivative Contract | |||||||||
Derivative [Line Items] | |||||||||
Other comprehensive income designated hedges before reclassifications and tax | 52 | 44.7 | 202.8 | 136.9 | |||||
Cash Flow Hedging [Member] | Undesignated contracts [Member] | Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Effective Portion, Net | $ 0 | $ (1.3) | [1] | $ 0 | $ (1.3) | [1] | |||
Derivative Instruments, (Loss) Gain Reclassified from AOCL into (Expense) Income, Statement of Operations Line Item | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses | Selling, general and administrative expenses | |||||
Senior notes due 2027 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Debt instrument, face amount | € | € 600 | ||||||||
Long-term Debt, Carrying Amount | [2] | $ 592.6 | $ 692.6 | $ 592.6 | $ 692.6 | 662.6 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | 3.125% | ||||||
Senior notes due 2024 [Member] | |||||||||
Derivative [Line Items] | |||||||||
Debt instrument, face amount | $ 525 | $ 525 | € 525 | ||||||
Long-term Debt, Carrying Amount | [2] | $ 520 | $ 606.8 | $ 520 | $ 606.8 | $ 580.8 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | 3.625% | ||||||
[1]The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021 as discussed in the section entitled “Cash Flow Hedges” above.[2]The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | Jan. 30, 2022 | |
Reported Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents | $ 457 | $ 1,298.7 | $ 457 | $ 1,298.7 | $ 1,242.5 |
Short-term borrowings | 98 | 27.8 | 98 | 27.8 | 10.8 |
Long-term debt (including portion classified as current), carrying amount | 2,146.4 | 2,638 | 2,146.4 | 2,638 | 2,352.4 |
Estimate of Fair Value Measurement [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents, fair value | 457 | 1,298.7 | 457 | 1,298.7 | 1,242.5 |
Short-term borrowings, fair value | 98 | 27.8 | 98 | 27.8 | 10.8 |
Long-term debt (including portion classified as current), fair value | 2,031.7 | 2,853.3 | 2,031.7 | 2,853.3 | 2,522.4 |
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign currency forward exchange contracts, assets | 97.6 | 29.8 | 97.6 | 29.8 | 56.3 |
Rabbi trust assets | 5.8 | 5.8 | 0.3 | ||
Total Assets, Fair Value | 103.4 | 29.8 | 103.4 | 29.8 | 56.6 |
Foreign currency forward exchange contracts, liabilities | 6 | 3.6 | 6 | 3.6 | 1.7 |
Interest rate swap agreements, liabilities | 0 | 0.9 | 0 | 0.9 | 0 |
Total Liabilities | 6 | 4.5 | 6 | 4.5 | 1.7 |
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Other Current Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Rabbi trust assets | 0.4 | 0.4 | |||
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Other Assets [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Rabbi trust assets | 5.4 | 5.4 | 0.3 | ||
Cash and cash equivalents | 457 | 1,298.7 | 457 | 1,298.7 | 1,242.5 |
Short-term borrowings | 98 | 27.8 | 98 | 27.8 | 10.8 |
Long-term debt (including portion classified as current), carrying amount | 2,146.4 | 2,638 | 2,146.4 | 2,638 | 2,352.4 |
Goodwill impairment | 417.1 | 0 | |||
Goodwill, Impairment Loss | 417.1 | 0 | 417.1 | 0 | |
Impairment of Long-Lived Assets Held-for-use | 43.6 | 35.1 | |||
Operating lease right-of-use assets [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-lived Assets, Carrying Amount | 26.4 | 17.8 | 26.4 | 17.8 | |
Impairment of Long-Lived Assets Held-for-use | 26.4 | 17.8 | |||
Property, Plant and Equipment [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-lived Assets, Carrying Amount | 17.2 | 17.3 | 17.2 | 17.3 | |
Impairment of Long-Lived Assets Held-for-use | 17.2 | 17.3 | |||
Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 460.7 | ||||
Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | Selling, General and Administrative Expenses [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 43.6 | 35.1 | |||
Goodwill [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-lived Assets, Carrying Amount | 458.1 | 458.1 | |||
Goodwill, Impairment Loss | 417.1 | ||||
Goodwill [Member] | Fair Value, Nonrecurring [Member] | Goodwill impairment | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | 417.1 | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign currency forward exchange contracts, assets | 97.6 | 29.8 | 97.6 | 29.8 | 56.3 |
Rabbi trust assets | 5.1 | 5.1 | 0.3 | ||
Total Assets, Fair Value | 102.7 | 29.8 | 102.7 | 29.8 | 56.6 |
Foreign currency forward exchange contracts, liabilities | 6 | 3.6 | 6 | 3.6 | 1.7 |
Interest rate swap agreements, liabilities | 0 | 0.9 | 0 | 0.9 | 0 |
Total Liabilities | 6 | 4.5 | 6 | 4.5 | 1.7 |
Fair Value, Inputs, Level 3 [Member] | Operating lease right-of-use assets [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total Assets, Fair Value | 0 | 0 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Property, Plant and Equipment [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total Assets, Fair Value | 0 | $ 0 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Total Assets, Fair Value | 41 | 41 | |||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Rabbi trust assets | 0.7 | 0.7 | 0 | ||
Total Assets, Fair Value | $ 0.7 | 0.7 | $ 0 | ||
Calvin Klein North America [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill impairment | 162.6 | ||||
Goodwill, Impairment Loss | 162.6 | ||||
Calvin Klein North America [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 162.6 | ||||
Calvin Klein North America [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | 162.6 | ||||
Tommy Hilfiger North America [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill impairment | 177.2 | ||||
Goodwill, Impairment Loss | 177.2 | ||||
Tommy Hilfiger North America [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 177.2 | ||||
Tommy Hilfiger North America [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | 177.2 | ||||
Tommy Hilfiger International [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | 0 | ||||
Tommy Hilfiger International [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 33.7 | ||||
Calvin Klein International [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill impairment | 77.3 | ||||
Goodwill, Impairment Loss | 77.3 | ||||
Calvin Klein International [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 87.2 | ||||
Calvin Klein International [Member] | Goodwill [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | 77.3 | ||||
Heritage Brands Retail [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | 0 | ||||
Heritage Brands Wholesale [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Goodwill, Impairment Loss | $ 0 | ||||
Heritage Brands Wholesale [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | 1.4 | ||||
Corporate Segment [Member] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||||
Noncash impairment charges | $ 33.7 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Incentive Plan (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 30, 2022 | Oct. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 35.3 | $ 35.8 |
Recognized income tax benefits associated with stock-based compensation expense | 4.5 | 5 |
Tax benefits realized from certain transactions associated with stock plan | 3.6 | $ 7.1 |
Discrete Net Excess Tax Deficiencies from Share-Based Compensation recognized in Provision for Income Taxes | $ 1.9 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 9 Months Ended | |
Oct. 30, 2022 | Oct. 31, 2021 | |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reduction in Number of Shares Available for Grant by Each Option Award | 1 | |
Vesting period (in years) | 4 years | |
Beginning vesting term | one year after the date of grant | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Service-based stock option activity [Roll Forward] | ||
Service-based stock options, outstanding, beginning of period | 688,000 | |
Service-based stock options, granted | 134,000 | |
Service-based stock options, exercised | 0 | |
Service-based stock options, forfeited/expired | 98,000 | |
Service-based stock options, outstanding, end of period | 724,000 | |
Service-based stock options, exercisable | 481,000 | |
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 103.40 | |
Service-based stock options, granted, weighted average price per option | 71.51 | |
Service-based stock options, exercised, weighted average price per option | 0 | |
Service-based stock options, forfeited/expired, weighted average price per option | 103.42 | |
Service-based stock options, outstanding, weighted average price per option, end of period | 97.48 | |
Service-based stock options, exercisable, weighted average price per option | $ 108.43 | |
Black-Scholes-Merton Model [Member] | ||
Assumptions used to estimate fair value of stock based awards [Abstract] | ||
Weighted average risk-free interest rate | 2.50% | 1.24% |
Weighted average expected stock option term (in years) | 6 years 3 months | 6 years 3 months |
Weighted average Company volatility | 47.34% | 47.58% |
Expected annual dividends per share | $ 0.15 | $ 0.15 |
Weighted average grant date fair value per stock option | $ 34.27 | $ 48.28 |
STOCK-BASED COMPENSATION - RSU,
STOCK-BASED COMPENSATION - RSU, Restricted Stock and Performance Share Activity (Details) - USD ($) | 9 Months Ended | |
Oct. 30, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Reduction in number of shares available for grant by each RSU or PSU award | 2 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years | |
Beginning vesting term | one year after the date of grant | |
First RSU Vesting Installments, Nonemployee Directors, Number of Yrs Following Grant Date | the earlier of one year after the date of grant or the date of the Annual Meeting of Stockholders following the year of grant | |
Non-vested activity [Roll Forward] | ||
Other than options, non-vested number, beginning of period | 1,176,000 | |
Other than options, granted number | 696,000 | |
Other than options, vested number | 405,000 | |
Other than options, forfeited number | 126,000 | |
Other than options, non-vested number, end of period | 1,341,000 | |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 88.09 | |
Other than options, granted, weighted average grant date fair value | 71.08 | |
Other than options, vested, weighted average grant date fair value | 92.16 | |
Other than options, forfeited, weighted average grant date fair value | 85.93 | |
Other than options, non-vested, weighted average grant date fair value, end of period | $ 78.24 | |
Performance Shares (PSUs) [Member] | ||
Non-vested activity [Roll Forward] | ||
Other than options, non-vested number, beginning of period | 248,000 | |
Other than options, granted number | 72,000 | |
Other than options, reduction due to market conditions not satisfied | 67,000 | |
Other than options, vested number | 0 | |
Other than options, forfeited number | 2,000 | |
Other than options, non-vested number, end of period | 251,000 | |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 93.15 | |
Other than options, granted, weighted average grant date fair value | 87.16 | |
Other than options, reduction due to market conditions not satisfied, weighted average grant fair value | 118.28 | |
Other than options, vested, weighted average grant date fair value | 0 | |
Other than options, forfeited, weighted average grant date fair value | 77.54 | |
Other than options, non-vested, weighted average grant date fair value, end of period | $ 84.98 | |
Performance Shares (PSUs) [Member] | Performance Share Units (PSUs) granted in 2021 and 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Percentage of Final Number of Shares Based Upon the Company's Consolidated Earnings Before Interest and Taxes | 50% | |
Percentage of Final Number of Shares Based Upon the Company's Total Shareholder Return | 50% | |
Performance Shares (PSUs) [Member] | Performance Share Units (PSUs) granted 2019 and 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Percentage of Final Number of Shares Based Upon the Company's Absolute Stock Price Growth | 50% | |
Percentage of Final Number of Shares Based Upon the Company's Total Shareholder Return | 50% | |
Performance Shares (PSUs) [Member] | Monte Carlo Model [Member] | ||
Assumptions used to estimate fair value of stock based awards [Abstract] | ||
Weighted average risk-free interest rate | 2.91% | 0.33% |
Weighted average Company volatility | 64.02% | 60.69% |
Expected annual dividends per share | $ 0.15 | $ 0.15 |
Restriction of Liquidity Discount | 6.90% | 8.40% |
Non-vested activity [Roll Forward] | ||
Other than options, granted, weighted average grant date fair value | $ 103.36 | $ 159.29 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 30, 2022 | Jul. 31, 2022 | May 01, 2022 | Oct. 31, 2021 | Aug. 01, 2021 | May 02, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |||
Net gain on net investment hedges, net of tax | $ 20.8 | $ 20.7 | $ 99.6 | $ 41.3 | ||||||
Change in accumulated other comprehensive loss | ||||||||||
Balance at beginning of year | $ (612.7) | (612.7) | ||||||||
Other comprehensive (loss) income | (102.9) | (12.1) | (216.6) | (5.3) | ||||||
Balance at end of period | (829.3) | (524.4) | (829.3) | (524.4) | ||||||
Foreign currency translation adjustments | ||||||||||
Net gain on net investment hedges, net of tax | 99.6 | 41.3 | ||||||||
Change in accumulated other comprehensive loss | ||||||||||
Balance at beginning of year | (665.9) | $ (481.6) | (665.9) | (481.6) | ||||||
Other comprehensive (loss) income, before reclassifications, net of tax | [1],[2] | (261.7) | (79.7) | |||||||
Less: Amounts reclassified from AOCL, net of tax | 0 | 0 | (3.4) | [3] | 0 | |||||
Other comprehensive (loss) income | (258.3) | (79.7) | ||||||||
Balance at end of period | (924.2) | (561.3) | (924.2) | (561.3) | ||||||
Net unrealized and realized gain (loss) on effective cash flow hedges | ||||||||||
Change in accumulated other comprehensive loss | ||||||||||
Balance at beginning of year | 53.2 | (37.5) | 53.2 | (37.5) | ||||||
Other comprehensive (loss) income, before reclassifications, net of tax | 51.5 | 74.6 | ||||||||
Less: Amounts reclassified from AOCL, net of tax | 7.2 | (6.7) | 9.8 | 0.2 | ||||||
Other comprehensive (loss) income | 41.7 | 74.4 | ||||||||
Balance at end of period | 94.9 | 36.9 | 94.9 | 36.9 | ||||||
Total | ||||||||||
Net gain on net investment hedges, net of tax | 20.8 | $ 28.6 | 50.2 | 20.7 | $ 16.1 | 4.5 | ||||
Change in accumulated other comprehensive loss | ||||||||||
Balance at beginning of year | $ (612.7) | $ (519.1) | (612.7) | (519.1) | ||||||
Other comprehensive (loss) income, before reclassifications, net of tax | (210.2) | (5.1) | ||||||||
Less: Amounts reclassified from AOCL, net of tax | 6.4 | 0.2 | ||||||||
Other comprehensive (loss) income | (216.6) | (5.3) | ||||||||
Balance at end of period | $ (829.3) | $ (524.4) | $ (829.3) | $ (524.4) | ||||||
[1]Foreign currency translation adjustments included a net gain on net investment hedges of $99.6 million and $41.3 million during the thirty-nine weeks ended October 30, 2022 and October 31, 2021, respectively.[2]Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro.[3]Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | ||||
Interest Rate Swap [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Reclassification from AOCL, Current Period, before Tax | $ 0 | $ (1.3) | [1] | $ 0 | $ (1.3) | [1] | |
Net unrealized and realized gain (loss) on effective cash flow hedges | |||||||
Reclassification from AOCL, Current Period, Net of Tax | 7.2 | (6.7) | 9.8 | 0.2 | |||
Net unrealized and realized gain (loss) on effective cash flow hedges | Income tax expense [Member] | |||||||
Reclassification from AOCL, Current Period, Tax | 2.7 | (1.9) | 3.8 | (2.9) | |||
Net unrealized and realized gain (loss) on effective cash flow hedges | Foreign Exchange Forward Inventory Purchases [Member] | Cost of Sales [Member] | |||||||
Reclassification from AOCL, Current Period, before Tax | 9.9 | (6.6) | 13.6 | 1.2 | |||
Net unrealized and realized gain (loss) on effective cash flow hedges | Interest Rate Swap [Member] | Interest Expense [Member] | |||||||
Reclassification from AOCL, Current Period, before Tax | 0 | (0.7) | 0 | (2.6) | |||
Foreign currency translation adjustments | |||||||
Reclassification from AOCL, Current Period, Net of Tax | 0 | 0 | (3.4) | [2] | 0 | ||
Foreign currency translation adjustments | Karl Lagerfeld Transaction | |||||||
Reclassification from AOCL, Current Period, before Tax | 0 | 0 | (3.4) | [3] | 0 | ||
Foreign currency translation adjustments | Income tax expense [Member] | |||||||
Reclassification from AOCL, Current Period, Tax | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1]The Company dedesignated certain cash flow hedges related to its interest rate swap agreements during the thirteen weeks ended October 31, 2021. Please see Note 11, “Derivative Financial Instruments,” for further discussion.[2]Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion.[3]Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 07, 2022 | Jun. 08, 2022 | Mar. 11, 2022 | Nov. 24, 2021 | Oct. 30, 2022 | Jul. 31, 2022 | May 01, 2022 | Oct. 31, 2021 | Aug. 01, 2021 | May 02, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | Apr. 11, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock Repurchase Program, Number of Shares Repurchased | 1,901,551 | 2,068,991 | 1,264,730 | 1,398,924 | 27,503 | 87,830 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | |||||
Dividends | $ 7.7 | $ 2.7 | |||||||||||
Stock Repurchase Program [Member] | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Stock Repurchase Program, Authorized Amount | $ 3,000 | $ 3,000 | $ 1,000 | ||||||||||
Stock Repurchase Program, Number of Shares Repurchased | 5,100,000 | 1,400,000 | |||||||||||
Stock Repurchase Program, Amount Purchased During Period | $ 326.3 | $ 148.7 | |||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 896.6 | $ 896.6 |
EXIT ACTIVITY COSTS (Details)
EXIT ACTIVITY COSTS (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2021 USD ($) | Oct. 30, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Heritage Retail Exit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | $ 50.1 | ||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 5.9 | ||
Exit activity costs incurred | $ 21.1 | ||
Restructuring and Related Costs, Incurred Costs Excluding Long-Lived Asset Impairments and Inventory Markdowns | 0 | ||
Exit activity costs paid | 5.9 | ||
Total liability, end of period | 0 | ||
Heritage Retail Exit [Member] | Long-lived asset impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 7.2 | ||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 0 | ||
Heritage Retail Exit [Member] | Contract termination and other costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 4.4 | ||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 2.4 | ||
Exit activity costs incurred | 0 | 4.4 | |
Exit activity costs paid | 2.4 | ||
Total liability, end of period | 0 | ||
Heritage Retail Exit [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 25.4 | ||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 3.5 | ||
Exit activity costs incurred | 0 | 10.8 | |
Exit activity costs paid | 3.5 | ||
Total liability, end of period | 0 | ||
Heritage Retail Exit [Member] | Accelerated amortization of lease assets | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 13.1 | ||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 5.9 | ||
Reduction in Workforce and Real Estate Footprint | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | $ 2.5 | 47.6 | |
Restructuring Projected Annual Cost Savings | 60 | 60 | |
Reduction in Workforce and Real Estate Footprint | Long-lived asset impairments | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 0 | 28.1 | |
Reduction in Workforce and Real Estate Footprint | Contract termination and other costs | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 0 | 3.8 | |
Reduction in Workforce and Real Estate Footprint | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 6.2 | ||
Exit activity costs incurred | $ 2.5 | 0 | 15.7 |
Exit activity costs paid | 2.6 | ||
Total liability, end of period | 3.6 | ||
Reduction in Workforce and Real Estate Footprint | Calvin Klein North America [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 2.1 | ||
Reduction in Workforce and Real Estate Footprint | Calvin Klein International [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 6.4 | ||
Reduction in Workforce and Real Estate Footprint | Tommy Hilfiger International [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 8.9 | ||
Reduction in Workforce and Real Estate Footprint | Corporate Segment [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 28.5 | ||
Reduction in Workforce and Real Estate Footprint | Tommy Hilfiger North America [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | $ 1.7 | ||
Russia Business Exit | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 0 | ||
Exit activity costs incurred | 50.5 | ||
Restructuring and Related Costs, Incurred Costs Excluding Long-Lived Asset Impairments and Inventory Markdowns | 6.9 | ||
Exit activity costs paid | 1.4 | ||
Total liability, end of period | 5.5 | ||
Russia Business Exit | Long-lived asset impairments | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 43.6 | ||
Russia Business Exit | Contract termination and other costs | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 0 | ||
Exit activity costs incurred | 4.8 | ||
Exit activity costs paid | 0.4 | ||
Total liability, end of period | 4.4 | ||
Russia Business Exit | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | 0 | ||
Exit activity costs incurred | 2.1 | ||
Exit activity costs paid | 1 | ||
Total liability, end of period | 1.1 | ||
Russia Business Exit | Calvin Klein International [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 13.8 | ||
Russia Business Exit | Tommy Hilfiger International [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 36.7 | ||
2022 cost savings initiative | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 16.7 | ||
Restructuring Projected Annual Cost Savings | $ 100 | ||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 10% | ||
2022 cost savings initiative | Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | $ 0 | ||
Exit activity costs incurred | 16.7 | ||
Exit activity costs paid | 1.9 | ||
Total liability, end of period | 14.8 | ||
2022 cost savings initiative | Calvin Klein North America [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 4 | ||
2022 cost savings initiative | Calvin Klein International [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 2.7 | ||
2022 cost savings initiative | Tommy Hilfiger International [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 2.1 | ||
2022 cost savings initiative | Corporate Segment [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 1.5 | ||
2022 cost savings initiative | Tommy Hilfiger North America [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | 4.2 | ||
2022 cost savings initiative | Heritage Brands Wholesale [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Exit activity costs incurred | $ 2.2 |
NET (LOSS) INCOME PER COMMON _3
NET (LOSS) INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
(Loss) Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net (loss) income attributable to PVH Corp. | $ (186.7) | $ 279.7 | $ 61.7 | $ 561.5 |
Weighted average common shares outstanding for basic net (loss) income per common share | 64.8 | 70.9 | 66.5 | 71.2 |
Weighted average impact of dilutive securities | 0 | 1.1 | 0.5 | 1.1 |
Total shares for diluted net (loss) income per common share | 64.8 | 72 | 67 | 72.3 |
Basic net (loss) income per common share attributable to PVH Corp. | $ (2.88) | $ 3.94 | $ 0.93 | $ 7.89 |
Diluted net (loss) income per common share attributable to PVH Corp. | $ (2.88) | $ 3.89 | $ 0.92 | $ 7.77 |
Weighted average potentially dilutive securities | 2.2 | 0.6 | 1.5 | 0.7 |
NET (LOSS) INCOME PER COMMON _4
NET (LOSS) INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | Oct. 30, 2022 | Oct. 31, 2021 |
(Loss) Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Number of Dilutive Shares That Could Be Issued Upon Vesting | 0.4 | 0.1 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | May 31, 2019 | |
Nonmonetary Transaction [Line Items] | |||||
Operating cash flows from operating leases | $ 341.4 | $ 369 | |||
Operating cash flows from finance leases | 0.1 | 0.2 | |||
Financing cash flows from finance leases | 3 | 3.9 | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 208.2 | 210.5 | |||
Right-of-use assets obtained in exchange for new finance lease liabilities | 6.2 | 2.1 | |||
Rent abatement [Abstract] | $ 1.6 | $ 4.2 | 4 | 24.8 | |
Capital Expenditures Incurred but Not yet Paid | 30.6 | 40.4 | |||
Treasury Stock, Shares Purchased Not Yet Settled | $ 2.2 | $ 4.4 | |||
Australia Acquisition [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Business Ownership Percentage | 100% | ||||
Australia Acquisition [Member] | 6% [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6% | ||||
Fair Value, Inputs, Level 3 [Member] | Australia Acquisition [Member] | |||||
Nonmonetary Transaction [Line Items] | |||||
Redeemable Noncontrolling Interest, Equity, Common, Redemption value | $ 26.2 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | ||||||
Revenue: | |||||||||
Revenues | [1] | $ 2,280.8 | $ 2,332.5 | $ 6,535.5 | $ 6,725 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | [2] | (214) | 377.2 | 173.3 | 853.6 | ||||
Other gain | 0 | (118.9) | 0 | (118.9) | |||||
Goodwill impairment | 417.1 | 0 | |||||||
Heritage Brands Transaction [Member] | |||||||||
Earnings before interest and taxes: | |||||||||
Other gain | 118.9 | ||||||||
Karl Lagerfeld [Member] | |||||||||
Earnings before interest and taxes: | |||||||||
Equity Method Investment, Realized Gain on Sale | 16.1 | ||||||||
Reduction in Workforce and Real Estate Footprint | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 2.5 | 47.6 | |||||||
Russia Business Exit | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 50.5 | ||||||||
2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 16.7 | ||||||||
Net sales | |||||||||
Revenue: | |||||||||
Revenues | 2,144.7 | 2,208 | 6,182.4 | 6,410 | |||||
Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 105.4 | 97.4 | 273.7 | 248 | |||||
Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 30.7 | 27.1 | 79.4 | 67 | |||||
Tommy Hilfiger North America [Member] | |||||||||
Revenue: | |||||||||
Revenues | [1] | 338.2 | 301.2 | 909.2 | 820.9 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | (169.9) | [3],[4] | (1.2) | (184.8) | [3],[4] | 18.4 | [5] | ||
Goodwill impairment | 177.2 | ||||||||
Tommy Hilfiger North America [Member] | Reduction in Workforce and Real Estate Footprint | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 1.7 | ||||||||
Tommy Hilfiger North America [Member] | 2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 4.2 | ||||||||
Tommy Hilfiger North America [Member] | Net sales | |||||||||
Revenue: | |||||||||
Revenues | 307.2 | 269.2 | 830.9 | 747.8 | |||||
Tommy Hilfiger North America [Member] | Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 24.3 | 25.2 | 62.2 | 58.2 | |||||
Tommy Hilfiger North America [Member] | Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 6.7 | 6.8 | 16.1 | 14.9 | |||||
Tommy Hilfiger International [Member] | |||||||||
Revenue: | |||||||||
Revenues | [1] | 828.7 | 916.5 | 2,407.1 | 2,586 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | 121.7 | [4] | 178.6 | 349.6 | [4],[6] | 510.7 | [5] | ||
Tommy Hilfiger International [Member] | Reduction in Workforce and Real Estate Footprint | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 8.9 | ||||||||
Tommy Hilfiger International [Member] | Russia Business Exit | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 36.7 | ||||||||
Tommy Hilfiger International [Member] | 2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 2.1 | ||||||||
Tommy Hilfiger International [Member] | Net sales | |||||||||
Revenue: | |||||||||
Revenues | 805.9 | 895.8 | 2,345.7 | 2,532.1 | |||||
Tommy Hilfiger International [Member] | Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 16.9 | 16.5 | 46.3 | 42.5 | |||||
Tommy Hilfiger International [Member] | Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 5.9 | 4.2 | 15.1 | 11.4 | |||||
Calvin Klein North America [Member] | |||||||||
Revenue: | |||||||||
Revenues | [1] | 380.3 | 349.4 | 1,040.1 | 946.7 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | (140) | [3],[4] | 20.5 | (106.4) | [3],[4] | 59.4 | [5] | ||
Goodwill impairment | 162.6 | ||||||||
Calvin Klein North America [Member] | Reduction in Workforce and Real Estate Footprint | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 2.1 | ||||||||
Calvin Klein North America [Member] | 2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 4 | ||||||||
Calvin Klein North America [Member] | Net sales | |||||||||
Revenue: | |||||||||
Revenues | 314.7 | 292.1 | 872.6 | 809.1 | |||||
Calvin Klein North America [Member] | Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 49.8 | 42.7 | 126.2 | 103 | |||||
Calvin Klein North America [Member] | Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 15.8 | 14.6 | 41.3 | 34.6 | |||||
Calvin Klein International [Member] | |||||||||
Revenue: | |||||||||
Revenues | [1] | 586.2 | 611.7 | 1,722.6 | 1,722 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | 12.1 | [3],[4] | 110.9 | 187.6 | [3],[4],[6] | 306.2 | [5] | ||
Goodwill impairment | 77.3 | ||||||||
Calvin Klein International [Member] | Reduction in Workforce and Real Estate Footprint | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 6.4 | ||||||||
Calvin Klein International [Member] | Russia Business Exit | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 13.8 | ||||||||
Calvin Klein International [Member] | 2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 2.7 | ||||||||
Calvin Klein International [Member] | Net sales | |||||||||
Revenue: | |||||||||
Revenues | 570 | 597.9 | 1,677.8 | 1,683.5 | |||||
Calvin Klein International [Member] | Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 14.1 | 12.5 | 38.3 | 34 | |||||
Calvin Klein International [Member] | Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 2.1 | 1.3 | 6.5 | 4.5 | |||||
Heritage Brands Wholesale [Member] | |||||||||
Revenue: | |||||||||
Revenues | [1] | 147.4 | 153.7 | 456.5 | 573.8 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | 7.3 | [4] | 116.7 | [7] | 37.5 | [4] | 160.1 | [7] | |
Heritage Brands Wholesale [Member] | Heritage Brands Transaction [Member] | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 5.5 | ||||||||
Aggregate net gain in connection with the Heritage Brands transaction | 113.4 | ||||||||
Heritage Brands Wholesale [Member] | 2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | 2.2 | ||||||||
Heritage Brands Wholesale [Member] | Net sales | |||||||||
Revenue: | |||||||||
Revenues | 146.9 | 153 | 455.4 | 561.9 | |||||
Heritage Brands Wholesale [Member] | Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 0.3 | 0.5 | 0.7 | 10.3 | |||||
Heritage Brands Wholesale [Member] | Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 0.2 | 0.2 | 0.4 | 1.6 | |||||
Heritage Brands Retail [Member] | |||||||||
Revenue: | |||||||||
Revenues | [1] | 0 | 0 | 0 | 75.6 | ||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | 0 | 0 | 0 | (33.9) | [8] | ||||
Heritage Brands Retail [Member] | Net sales | |||||||||
Revenue: | |||||||||
Revenues | 0 | 0 | 0 | 75.6 | |||||
Heritage Brands Retail [Member] | Royalty revenue | |||||||||
Revenue: | |||||||||
Revenues | 0 | 0 | 0 | 0 | |||||
Heritage Brands Retail [Member] | Advertising and other revenue | |||||||||
Revenue: | |||||||||
Revenues | 0 | 0 | 0 | 0 | |||||
Corporate Segment [Member] | |||||||||
Earnings before interest and taxes: | |||||||||
(Loss) income before interest and taxes | [9] | $ (45.2) | [4] | $ (48.3) | (110.2) | [4],[10] | (167.3) | [5] | |
Corporate Segment [Member] | Reduction in Workforce and Real Estate Footprint | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | $ 28.5 | ||||||||
Corporate Segment [Member] | 2022 cost savings initiative | |||||||||
Earnings before interest and taxes: | |||||||||
Exit activity costs incurred | $ 1.5 | ||||||||
[1]Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.[2](Loss) income 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.[3](Loss) income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 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.[4](Loss) income before interest and taxes for the thirteen and thirty-nine weeks ended October 30, 2022 included costs of $16.7 million incurred related to the cost savings initiative described in Note 16, “Exit Activity Costs,” consisting of severance. Such costs were included in the Company’s segments as follows: $4.2 million in Tommy Hilfiger North America, $2.1 million in Tommy Hilfiger International, $4.0 million in Calvin Klein North America, $2.7 million in Calvin Klein International, $2.2 million in Heritage Brands Wholesale and $1.5 million in corporate expenses not allocated to any reportable segments. Please see Note 16, “Exit Activity Costs,” for further discussion.[5]Income (loss) before interest and taxes for the thirty-nine weeks ended October 31, 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 16, “Exit Activity Costs,” for further discussion.[6]Income before interest and taxes for the thirty-nine weeks ended October 30, 2022 included costs of $50.5 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: $36.7 million in Tommy Hilfiger International and $13.8 million in Calvin Klein International. Please see Note 16, “Exit Activity Costs,” for further discussion.[7]Income before interest and taxes for the thirteen and thirty-nine weeks ended October 31, 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 4, “Acquisitions and Divestitures,” for further discussion of the transaction.[8]Loss before interest and taxes for the thirty-nine weeks ended October 31, 2021 included costs and operating losses associated with the wind down of the Heritage Brands Retail business that was substantially completed in the second quarter of 2021. Please see Note 16, “Exit Activity Costs,” for further discussion.[9]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 after the Company resumed the equity method of accounting for its investment in the fourth quarter of 2021 and until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 5, “Redeemable Non-Controlling Interest,” for further discussion of PVH Ethiopia and Note 6, “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 (which are generally recorded in the fourth quarter).[10]Loss before interest and taxes for the thirty-nine weeks ended October 30, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. |
Revenue by Distribution Channel
Revenue by Distribution Channel (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | $ 2,280.8 | $ 2,332.5 | $ 6,535.5 | $ 6,725 |
Net sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 2,144.7 | 2,208 | 6,182.4 | 6,410 | |
Net sales | Wholesale | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,287.1 | 1,308.4 | 3,596.2 | 3,756.3 | |
Net sales | Retail | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 857.6 | 899.6 | 2,586.2 | 2,653.7 | |
Net sales | Sales Channel, Sales to Owned and Operated Retail Customers | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 710.7 | 737.1 | 2,113.9 | 2,131.7 | |
Net sales | Sales Channel, Sales to Owned and Operated Digital Retail Customers | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 146.9 | 162.5 | 472.3 | 522 | |
Royalty revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 105.4 | 97.4 | 273.7 | 248 | |
Advertising and other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 30.7 | $ 27.1 | $ 79.4 | $ 67 | |
[1]Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. |
GUARANTEES (Details)
GUARANTEES (Details) $ in Millions | Oct. 30, 2022 USD ($) |
PVH India Joint Venture [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 9 |
PVH Japan [Member] | |
Guarantor Obligations [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 4.2 |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Details) - USD ($) $ in Millions | Oct. 30, 2022 | Jan. 30, 2022 | Oct. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings | $ (4,616.8) | $ (4,562.8) | $ (4,172) |
OTHER COMMENTS Warehousing and
OTHER COMMENTS Warehousing and Distribution (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 30, 2022 | Oct. 31, 2021 | Oct. 30, 2022 | Oct. 31, 2021 | |
Warehousing and Distribution [Line Items] | ||||
Warehousing and distribution expenses | $ 93.1 | $ 80.7 | $ 259.9 | $ 244.7 |
OTHER COMMENTS Allowance for Cr
OTHER COMMENTS Allowance for Credit Losses (Details) - USD ($) $ in Millions | Oct. 30, 2022 | Jan. 30, 2022 | Oct. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit losses on trade receivables | $ 50.9 | $ 61.9 | $ 64.3 |
Subsequent Events (Details)
Subsequent Events (Details) | May 31, 2022 |
Karl Lagerfeld [Member] | |
Subsequent Event [Line Items] | |
Equity Method Investment, Ownership Percentage | 8% |