Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jul. 30, 2023 | Aug. 29, 2023 | |
Cover Page [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 30, 2023 | |
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, $1.00 par value | |
Trading Symbol | PVH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,424,938 | |
Entity Central Index Key | 0000078239 | |
Current Fiscal Year End Date | --02-04 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | ||||
Total revenue | [1] | $ 2,207 | $ 2,132 | $ 4,364.9 | $ 4,254.7 | ||
Cost of goods sold (exclusive of depreciation and amortization) | 934.7 | 912.5 | 1,842.3 | 1,796.5 | |||
Gross profit | 1,272.3 | 1,219.5 | 2,522.6 | 2,458.2 | |||
Selling, general and administrative expenses | 1,138.5 | 1,070.4 | 2,202.5 | 2,109.8 | |||
Non-service related pension and postretirement income | 0.3 | 3.2 | 0.9 | 6.8 | |||
Equity in net income of unconsolidated affiliates | 9.2 | 24.7 | 21.1 | 32.1 | |||
Income before interest and taxes | [3] | 143.3 | [2] | 177 | 342.1 | [2] | 387.3 |
Interest expense | 25.9 | 21.8 | 51.2 | 44.8 | |||
Interest income | 2.3 | 1.5 | 5.6 | 2.7 | |||
Income before taxes | 119.7 | 156.7 | 296.5 | 345.2 | |||
Income tax expense | 25.5 | 41.4 | 66.3 | 96.8 | |||
Net income | $ 94.2 | $ 115.3 | $ 230.2 | $ 248.4 | |||
Basic net income per common share | $ 1.52 | $ 1.73 | $ 3.69 | $ 3.69 | |||
Diluted net income per common share | $ 1.50 | $ 1.72 | $ 3.65 | $ 3.66 | |||
Net sales | |||||||
Total revenue | $ 2,105.2 | $ 2,031.1 | $ 4,156.3 | $ 4,037.7 | |||
Royalty revenue | |||||||
Total revenue | 80.1 | 78.3 | 164.8 | 168.3 | |||
Advertising and other revenue | |||||||
Total revenue | $ 21.7 | $ 22.6 | $ 43.8 | $ 48.7 | |||
[1]Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.[2]Income (loss) before interest and taxes for the thirteen and twenty-six weeks ended July 30, 2023 included costs of $39.0 million incurred related to the 2022 cost savings initiative described in Note 14, “Exit Activity Costs,” consisting principally of severance. Such costs were included in the Company’s segments as follows: $6.4 million in Tommy Hilfiger North America, $12.3 million in Tommy Hilfiger International, $5.9 million in Calvin Klein North America, $8.5 million in Calvin Klein International, $4.6 million in Heritage Brands Wholesale and $1.3 in corporate expenses not allocated to any reportable segments. Please see Note 14, “Exit Activity Costs,” for further discussion.[3]Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Net income | $ 94.2 | $ 115.3 | $ 230.2 | $ 248.4 |
Foreign currency translation adjustments | 21.1 | (92) | 4.4 | (223.8) |
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | 0.3 | 5.5 | (1.7) | 31.3 |
Net (loss) gain on net investment hedges, net of tax (benefit) expense | (2.9) | 28.6 | (12.7) | 78.8 |
Total other comprehensive income (loss) | 18.5 | (57.9) | (10) | (113.7) |
Comprehensive income | $ 112.7 | $ 57.4 | $ 220.2 | $ 134.7 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | May 01, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, tax (benefit) expense | $ (0.1) | $ (0.4) | $ 1.8 | $ 9 | $ (0.5) | $ 10.8 |
Net (loss) gain on net investment hedges, tax (benefit) expense | $ (1) | $ (3.2) | $ 9.6 | $ 16.6 | $ (4.2) | $ 26.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 30, 2023 | Jan. 29, 2023 | Jul. 31, 2022 |
Current Assets: | |||
Cash and cash equivalents | $ 372.8 | $ 550.7 | $ 699.3 |
Trade receivables, net of allowances for credit losses of $42.0, $42.6 and $49.1 | 889.2 | 923.7 | 804.6 |
Other receivables | 20.8 | 21.5 | 32.9 |
Inventories, net | 1,795.5 | 1,802.6 | 1,689.9 |
Prepaid expenses | 256 | 209.2 | 207.4 |
Other | 79.8 | 72.7 | 150.3 |
Total Current Assets | 3,414.1 | 3,580.4 | 3,584.4 |
Property, Plant and Equipment, net | 876 | 904 | 842 |
Operating Lease Right-of-Use Assets | 1,291.2 | 1,295.7 | 1,230.3 |
Goodwill | 2,354.7 | 2,359 | 2,694.5 |
Tradenames | 2,713.1 | 2,701.1 | 2,647.7 |
Other Intangibles, net | 518.7 | 548.8 | 555.3 |
Other Assets, including deferred taxes of $24.1, $33.8 and $42.0 | 374.6 | 379.3 | 368.1 |
Total Assets | 11,542.4 | 11,768.3 | 11,922.3 |
Current Liabilities: | |||
Accounts payable | 1,242.9 | 1,327.4 | 1,359 |
Accrued expenses | 773.6 | 874 | 844.9 |
Deferred revenue | 74.4 | 54.3 | 54 |
Current portion of operating lease liabilities | 328.6 | 353.7 | 348.2 |
Short-term borrowings | 15.2 | 46.2 | 12.2 |
Current portion of long-term debt | 688.9 | 111.9 | 38.2 |
Total Current Liabilities | 3,123.6 | 2,767.5 | 2,656.5 |
Long-Term Portion of Operating Lease Liabilities | 1,136.9 | 1,140 | 1,114.2 |
Long-Term Debt | 1,619.6 | 2,177 | 2,155.5 |
Other Liabilities, including deferred taxes of $321.3, $357.5 and $378.2 | 624.7 | 671.1 | 789.7 |
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; 88,161,386; 87,641,611 and 87,509,778 shares issued | 88.2 | 87.6 | 87.5 |
Additional paid in capital - common stock | 3,271.4 | 3,244.5 | 3,220.9 |
Retained earnings | 4,978.5 | 4,753.1 | 4,806 |
Accumulated other comprehensive loss | (723.1) | (713.1) | (726.4) |
Less: 27,481,695; 24,932,374 and 21,906,203 shares of common stock held in treasury, at cost | (2,577.4) | (2,359.4) | (2,181.6) |
Total Stockholders' Equity | 5,037.6 | 5,012.7 | 5,206.4 |
Total Liabilities and Stockholders' Equity | $ 11,542.4 | $ 11,768.3 | $ 11,922.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jul. 30, 2023 | Jan. 29, 2023 | Jul. 31, 2022 |
Current Assets: | |||
Allowance for credit losses | $ 42 | $ 42.6 | $ 49.1 |
Other Assets: | |||
Other Assets, deferred taxes | 24.1 | 33.8 | 42 |
Liabilities: | |||
Other Liabilities, deferred taxes | $ 321.3 | $ 357.5 | $ 378.2 |
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) | 88,161,386 | 87,641,611 | 87,509,778 |
Treasury Stock, Common, Shares | 27,481,695 | 24,932,374 | 21,906,203 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 230.2 | $ 248.4 |
Adjustments to reconcile to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 147.8 | 152.2 |
Equity in net income of unconsolidated affiliates | (21.1) | (32.1) |
Deferred taxes | (22.1) | (13.5) |
Stock-based compensation expense | 27.4 | 22.8 |
Impairment of other long-lived assets | 0 | 43.6 |
Changes in operating assets and liabilities: | ||
Trade receivables, net | 36.2 | (99.2) |
Other receivables | 0.9 | (13.3) |
Inventories, net | 1.2 | (415.9) |
Accounts payable, accrued expenses and deferred revenue | (153) | 8.8 |
Prepaid expenses | (45.9) | (46) |
Other, net | (5.4) | (18.9) |
Net cash provided (used) by operating activities | 196.2 | (163.1) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (115.9) | (108.7) |
Proceeds from sale of Karl Lagerfeld investment | 0 | 19.1 |
Purchases of investments held in rabbi trust | (2.4) | (5.7) |
Proceeds from investments held in rabbi trust | 0.9 | 0.6 |
Net cash used by investing activities | (117.4) | (94.7) |
FINANCING ACTIVITIES | ||
Net (payments on) proceeds from short-term borrowings | (28.8) | 3 |
Repayment of 2022 facilities | (6) | 0 |
Repayment of 2019 facilities | 0 | (13.4) |
Net proceeds from settlement of awards under stock plans | 0.1 | 0.1 |
Cash dividends | (4.8) | (5.2) |
Acquisition of treasury shares | (214.2) | (237.7) |
Payments of finance lease liabilities | (2.5) | (2.2) |
Net cash used by financing activities | (256.2) | (255.4) |
Effect of exchange rate on cash and cash equivalents | (0.5) | (30) |
Decrease in cash and cash equivalents | (177.9) | (543.2) |
Cash and cash equivalents at beginning of period | 550.7 | 1,242.5 |
Cash and cash equivalents at end of period | $ 372.8 | $ 699.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital - Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock, Common | Total Stockholders' Equity |
Balance at Jan. 30, 2022 | $ 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 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 133.1 | 133.1 | ||||||
Foreign currency translation adjustments | (131.8) | (131.8) | ||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | 25.8 | 25.8 | ||||||
Net (loss) gain on net investment hedges, net of tax (benefit) expense | 50.2 | 50.2 | ||||||
Comprehensive income | 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 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | |||||||
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 | $ 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 | |||||||
Balance at Jan. 30, 2022 | 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 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 248.4 | |||||||
Foreign currency translation adjustments | (223.8) | |||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | 31.3 | |||||||
Net (loss) gain on net investment hedges, net of tax (benefit) expense | 78.8 | |||||||
Comprehensive income | 134.7 | |||||||
Balance at Jul. 31, 2022 | $ 5,206.4 | 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 | 87,509,778 | ||||||
Balance at May. 01, 2022 | 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 income | $ 115.3 | 115.3 | 115.3 | |||||
Foreign currency translation adjustments | (92) | (92) | (92) | |||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | 5.5 | 5.5 | 5.5 | |||||
Net (loss) gain on net investment hedges, net of tax (benefit) expense | 28.6 | 28.6 | 28.6 | |||||
Comprehensive income | $ 57.4 | 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 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | |||||||
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 | $ 5,206.4 | 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 | 87,509,778 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings | $ 4,806 | |||||||
Retained earnings | 4,753.1 | |||||||
Balance at Jan. 29, 2023 | $ 5,012.7 | 0 | $ 87.6 | 3,244.5 | 4,753.1 | (713.1) | (2,359.4) | 5,012.7 |
Balance (in shares) at Jan. 29, 2023 | 87,641,611 | 87,641,611 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 136 | 136 | ||||||
Foreign currency translation adjustments | (16.7) | (16.7) | ||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | (2) | (2) | ||||||
Net (loss) gain on net investment hedges, net of tax (benefit) expense | (9.8) | (9.8) | ||||||
Comprehensive income | 107.5 | |||||||
Settlement of awards under stock plans (in shares) | 132,809 | |||||||
Settlement of awards under stock plans | $ 0.2 | (0.1) | 0.1 | |||||
Stock-based compensation expense | 13.1 | 13.1 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | |||||||
Dividends declared ($0.0375 per common share) | (2.4) | (2.4) | ||||||
Acquisition of treasury shares during period | (4.6) | (4.6) | ||||||
Balance at Apr. 30, 2023 | 0 | $ 87.8 | 3,257.5 | 4,886.7 | (741.6) | (2,364) | 5,126.4 | |
Balance (in shares) at Apr. 30, 2023 | 87,774,420 | |||||||
Balance at Jan. 29, 2023 | $ 5,012.7 | 0 | $ 87.6 | 3,244.5 | 4,753.1 | (713.1) | (2,359.4) | 5,012.7 |
Balance (in shares) at Jan. 29, 2023 | 87,641,611 | 87,641,611 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 230.2 | |||||||
Foreign currency translation adjustments | 4.4 | |||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | (1.7) | |||||||
Net (loss) gain on net investment hedges, net of tax (benefit) expense | (12.7) | |||||||
Comprehensive income | 220.2 | |||||||
Balance at Jul. 30, 2023 | $ 5,037.6 | 0 | $ 88.2 | 3,271.4 | 4,978.5 | (723.1) | (2,577.4) | 5,037.6 |
Balance (in shares) at Jul. 30, 2023 | 88,161,386 | 88,161,386 | ||||||
Balance at Apr. 30, 2023 | 0 | $ 87.8 | 3,257.5 | 4,886.7 | (741.6) | (2,364) | 5,126.4 | |
Balance (in shares) at Apr. 30, 2023 | 87,774,420 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 94.2 | 94.2 | 94.2 | |||||
Foreign currency translation adjustments | 21.1 | 21.1 | 21.1 | |||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax (benefit) expense | 0.3 | 0.3 | 0.3 | |||||
Net (loss) gain on net investment hedges, net of tax (benefit) expense | (2.9) | (2.9) | (2.9) | |||||
Comprehensive income | $ 112.7 | 112.7 | ||||||
Settlement of awards under stock plans (in shares) | 386,966 | |||||||
Settlement of awards under stock plans | $ 0.4 | (0.4) | 0 | |||||
Stock-based compensation expense | 14.3 | 14.3 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | |||||||
Dividends declared ($0.0375 per common share) | (2.4) | (2.4) | ||||||
Acquisition of treasury shares during period | (213.4) | (213.4) | ||||||
Balance at Jul. 30, 2023 | $ 5,037.6 | $ 0 | $ 88.2 | $ 3,271.4 | $ 4,978.5 | $ (723.1) | $ (2,577.4) | $ 5,037.6 |
Balance (in shares) at Jul. 30, 2023 | 88,161,386 | 88,161,386 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings | $ 4,978.5 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | May 01, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, tax (benefit) expense | $ (0.1) | $ (0.4) | $ 1.8 | $ 9 | $ (0.5) | $ 10.8 |
Net (loss) gain on net investment hedges, tax (benefit) expense | $ (1) | $ (3.2) | $ 9.6 | $ 16.6 | $ (4.2) | $ 26.2 |
Dividends declared ($0.0375 per common share) | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | ||
Acquisition of treasury shares, number of shares repurchased | 2,495,371 | 53,950 | 2,068,991 | 1,264,730 | ||
Excise taxes on share repurchases in excess of issuances | $ 1.7 |
GENERAL
GENERAL | 6 Months Ended |
Jul. 30, 2023 | |
General [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 and Nike, which the Company licenses for certain product categories, and other owned and licensed brands. The Company designs and markets branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, 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 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 4, “Investments in Unconsolidated Affiliates,” 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 cumulative inflation rate surpassed 100% for the three-year period that ended during the first quarter of 2022. 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 twenty-six weeks ended July 30, 2023 and July 31, 2022. As of July 30, 2023 and July 31, 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 29, 2023. 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 twenty-six weeks ended July 30, 2023 and July 31, 2022 are not necessarily indicative of those for a full fiscal year due, in part, to 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 in the current macroeconomic environment due to inflationary pressures globally, the war in Ukraine 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 been impacted, which has resulted in a reduction in shipments to these customers and canceled orders. The war also led to broader macroeconomic implications in 2022, 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. There is 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 2023. COVID-19 Pandemic The COVID-19 pandemic had a significant impact on the Company’s business, results of operations, financial condition and cash flows from operations during 2022. The pandemic did not have a significant impact on the Company in the first half of 2023. Strict lockdowns in China during 2022 resulted in extensive temporary store closures and significant reductions in consumer traffic and purchasing, as well as 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. COVID-related restrictions in China were lifted at the end of the fourth quarter of 2022. In addition, the Company’s North America stores have been challenged by the significant decrease in international tourists coming to the United States since the onset of the pandemic. Stores located in international tourist destinations had represented a significant portion of the North America retail business prior to the pandemic. In addition, pandemic-related supply chain and logistics disruptions have impacted 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 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. These impacts significantly improved in the second half of 2022. |
REVENUE (Notes)
REVENUE (Notes) | 6 Months Ended |
Jul. 30, 2023 | |
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. Performance Obligations Under License Agreements As of July 30, 2023, the contractual minimum fees on the portion of all license agreements not yet satisfied totaled $904.7 million, of which the Company expects to recognize $142.8 million as revenue during the remainder of 2023, $259.7 million in 2024 and $502.2 million thereafter. 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. Deferred Revenue Changes in deferred revenue, which primarily relate to customer loyalty programs, gift cards and license agreements for the twenty-six weeks ended July 30, 2023 and July 31, 2022 were as follows: Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 Deferred revenue balance at beginning of period $ 54.3 $ 44.9 Net additions to deferred revenue during the period 62.4 45.4 Reductions in deferred revenue for revenue recognized during the period (1) (42.3) (36.3) Deferred revenue balance at end of period $ 74.4 $ 54.0 (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 $2.8 million and $4.0 million of revenue recognized during the thirteen weeks ended July 30, 2023 and July 31, 2022, respectively. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $10.8 million, $12.1 million and $13.3 million as of July 30, 2023, January 29, 2023 and July 31, 2022, respectively. Please see Note 16, “Segment Data,” for information on the disaggregation of revenue by segment and distribution channel. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jul. 30, 2023 | |
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 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. |
INVESTMENTS IN UNCONSOLIDATED A
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | 6 Months Ended |
Jul. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED AFFILIATES | INVESTMENTS IN UNCONSOLIDATED AFFILIATES The Company had investments in unconsolidated affiliates of $195.8 million, $190.2 million and $164.9 million as of July 30, 2023, January 29, 2023 and July 31, 2022, 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 $30.1 million and $16.2 million from these investments during the twenty-six weeks ended July 30, 2023 and July 31, 2022, respectively. The Company completed the sale of its economic interest in Karl Lagerfeld Holding B.V. (“Karl Lagerfeld”) to a subsidiary of G-III Apparel Group, Ltd. (the “Karl Lagerfeld transaction”) 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 Statement 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. Please see Note 5, “Investments in Unconsolidated Affiliates,” 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 29, 2023 for further discussion of the Karl Lagerfeld investment. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jul. 30, 2023 | |
Goodwill [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the twenty-six weeks ended July 30, 2023, by segment (please see Note 16, “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 Total Balance as of January 29, 2023 Goodwill, gross $ 781.8 $ 885.0 $ 203.0 $ 1,587.6 $ 105.0 $ 3,562.4 Accumulated impairment losses (449.9) (471.3) (177.2) — (105.0) (1,203.4) Goodwill, net 331.9 413.7 25.8 1,587.6 — 2,359.0 Currency translation — (3.2) — (1.1) — (4.3) Balance as of July 30, 2023 Goodwill, gross 781.8 881.8 203.0 1,586.5 105.0 3,558.1 Accumulated impairment losses (449.9) (471.3) (177.2) — (105.0) (1,203.4) Goodwill, net $ 331.9 $ 410.5 $ 25.8 $ 1,586.5 $ — $ 2,354.7 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 29, 2023 for discussion of the Company’s goodwill and other intangible assets impairment testing process. |
RETIREMENT AND BENEFIT PLANS
RETIREMENT AND BENEFIT PLANS | 6 Months Ended |
Jul. 30, 2023 | |
Retirement and Benefit Plans [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company, as of July 30, 2023, has two noncontributory qualified defined benefit pension plans. These plans cover substantially all employees resident in the United States hired prior to January 1, 2022 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. – 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. – 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 after employment termination or retirement, according to their distribution election. 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 Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Service cost $ 5.8 $ 7.7 $ 10.8 $ 15.7 Interest cost 7.4 6.4 14.6 12.7 Expected return on plan assets (8.4) (10.4) (16.9) (20.9) Total $ 4.8 $ 3.7 $ 8.5 $ 7.5 SERP Plans SERP Plans Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Service cost $ 0.4 $ 0.7 $ 0.8 $ 1.3 Interest cost 0.7 0.8 1.4 1.4 Total $ 1.1 $ 1.5 $ 2.2 $ 2.7 The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States under two plans. 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 twenty-six weeks ended July 30, 2023 and July 31, 2022. 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 and (ii) the other components are recorded in non-service related pension and postretirement income. |
DEBT
DEBT | 6 Months Ended |
Jul. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-Term Borrowings The Company has the ability to draw revolving borrowings under the senior unsecured credit facilities discussed below in the section entitled “2022 Senior Unsecured Credit Facilities.” The Company had no revolving borrowings outstanding under these facilities as of July 30, 2023. The Company also had no revolving borrowings outstanding under its 2019 facilities (as defined below) as of July 31, 2022. Additionally, the Company has the ability to borrow under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies. These facilities provided for borrowings of up to $220.9 million based on exchange rates in effect on July 30, 2023 and are utilized primarily to fund working capital needs. The Company had $15.2 million outstanding under these facilities as of July 30, 2023. The weighted average interest rate on funds borrowed as of July 30, 2023 was 0.19%. Commercial Paper The Company has the ability to issue 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 no borrowings outstanding under the commercial paper note program as of July 30, 2023. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 7/30/23 1/29/23 7/31/22 Senior unsecured Term Loan A facility due 2027 (1)(2) $ 477.3 $ 476.6 $ — Senior unsecured Term Loan A facility due 2024 (2) — — 457.8 7 3/4% debentures due 2023 100.0 99.9 99.9 3 5/8% senior unsecured euro notes due 2024 (2) 576.8 568.1 532.5 4 5/8% senior unsecured notes due 2025 497.6 497.0 496.4 3 1/8% senior unsecured euro notes due 2027 (2) 656.8 647.3 607.1 Total 2,308.5 2,288.9 2,193.7 Less: Current portion of long-term debt 688.9 111.9 38.2 Long-term debt $ 1,619.6 $ 2,177.0 $ 2,155.5 (1) The outstanding principal balance for the euro-denominated Term Loan A facility was €435.1 million as of July 30, 2023. (2) The carrying amount of the euro-denominated Term Loan A facilities 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 10, “Fair Value Measurements,” for the fair value of the Company’s long-term debt as of July 30, 2023, January 29, 2023 and July 31, 2022 . The Company’s mandatory long-term debt repayments for the remainder of 2023 through 2028 were as follows as of July 30, 2023: (In millions) Fiscal Year Amount (1) Remainder of 2023 $ 106.1 2024 590.5 2025 512.1 2026 12.1 2027 1,097.8 2028 — (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 2023 through 2028 exceed the total carrying amount of the Company’s debt as of July 30, 2023 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of July 30, 2023, approximately 80% of the Company’s long-term debt had fixed interest rates, with the remainder at variable interest rates. 2022 Senior Unsecured Credit Facilities On December 9, 2022, the Company entered into new senior unsecured credit facilities (the “2022 facilities”), the proceeds of which, along with cash on hand, were used to repay all of the outstanding borrowings under the 2019 facilities (as defined below), as well as the related debt issuance costs. The 2022 facilities consist of (a) a €440.6 million euro-denominated Term Loan A facility (the “Euro TLA facility”), (b) a $1,150.0 million United States dollar-denominated multicurrency revolving credit facility (the “multicurrency revolving credit facility”), which is available in (i) United States dollars, (ii) Australian dollars (limited to A$50.0 million), (iii) Canadian dollars (limited to C$70.0 million), or (iv) euros, yen, pounds sterling, Swiss francs or other agreed foreign currencies (limited to €250.0 million ), and (c) a $50.0 million United States dollar-denominated revolving credit facility available in United States dollars or Hong Kong dollars (together with the multicurrency revolving credit facility, the “revolving credit facilities”). The 2022 facilities are due on December 9, 2027. The Company had loans outstanding of $477.3 million, net of debt issuance costs and based on applicable exchange rates, under the Euro TLA facility as of July 30, 2023. The Company made payments of $6.0 million on its term loan under the 2022 facilities during the twenty-six weeks ended July 30, 2023. The Company made payments of $13.4 million on its term loan under the 2019 facilities during the twenty-six weeks ended July 31, 2022. The current applicable margin with respect to the Euro TLA facility as of July 30, 2023 was 1.250%. The current applicable margin with respect to the revolving credit facilities as of July 30, 2023 was 0.125% for loans bearing interest at the base rate, Canadian prime rate or daily simple euro short term rate and 1.125% for loans bearing interest at the euro interbank offered rate (“EURIBOR”) or any other rate specified in the 2022 facilities. The applicable margin for borrowings under the Euro TLA facility and each revolving credit facility 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 2022 facilities require the Company to comply with customary affirmative, negative and financial covenants, including a maximum net leverage ratio, calculated in a manner set forth in the terms of the 2022 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 29, 2023 for further discussion of the 2022 facilities. 2019 Senior Unsecured Credit Facilities On April 29, 2019, the Company entered into senior unsecured credit facilities (as amended, the “2019 facilities”). The Company replaced the 2019 facilities with the 2022 facilities on December 9, 2022 as discussed above in the section entitled “2022 Senior Unsecured Credit Facilities.” The 2019 facilities included a €500.0 million euro-denominated Term Loan A facility, of which €440.6 million was outstanding as of the date it was replaced, and senior unsecured revolving credit 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 o f July 30, 2023, 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 primarily to collateralize the Company’s insurance and lease obligations. The Company had $80.5 million of these standby letters of credit outstanding as of July 30, 2023. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jul. 30, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective income tax rates for the thirteen weeks ended July 30, 2023 and July 31, 2022 were 21.3% and 26.4%, respectively. The effective income tax rates for the twenty-six weeks ended July 30, 2023 and July 31, 2022 were 22.4% and 28.0%, respectively. The effective income tax rates for the thirteen and twenty-six weeks ended July 30, 2023 were lower than the respective prior year periods primarily due to a change in the mix of international and domestic earnings. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jul. 30, 2023 | |
Derivative Financial Instruments [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 records the foreign currency forward exchange contracts 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 are designated as effective hedging instruments (“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. 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 7, “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 $1,199.1 million and $1,233.6 million, respectively, as of July 30, 2023, $1,192.0 million and $1,215.4 million, respectively, as of January 29, 2023 and $1,147.8 million and $1,139.6 million, respectively, as of July 31, 2022. 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 7/30/23 1/29/23 7/31/22 7/30/23 1/29/23 7/31/22 (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) $ 6.7 $ — $ 15.7 $ 0.1 $ 84.5 $ 2.5 $ 21.8 $ 1.4 $ 20.7 $ 2.2 $ 1.1 $ 0.1 Undesignated contracts: Foreign currency forward exchange contracts 0.2 — — — 6.7 — 4.3 — 12.5 — 1.5 — Total $ 6.9 $ — $ 15.7 $ 0.1 $ 91.2 $ 2.5 $ 26.1 $ 1.4 $ 33.2 $ 2.2 $ 2.6 $ 0.1 The notional amount outstanding of foreign currency forward exchange contracts was $1,333.7 million at July 30, 2023. Such contracts expire principally between August 2023 and January 2025. The following tables summarize the effect of the Company’s hedges designated as cash flow and net investment hedging instruments: Gain (Loss) Recognized in Other Comprehensive Income (Loss) (In millions) Thirteen Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 5.6 $ 12.5 Foreign currency borrowings (net investment hedges) (3.9) 38.2 Total $ 1.7 $ 50.7 Twenty-Six Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 8.0 $ 45.8 Foreign currency borrowings (net investment hedges) (16.9) 105.0 Total $ (8.9) $ 150.8 Amount of Gain Reclassified from AOCL into Income, 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 7/30/23 7/31/22 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 5.4 $ 5.2 Cost of goods sold $ 934.7 $ 912.5 Twenty-Six Weeks Ended 7/30/23 7/31/22 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 10.2 $ 3.7 Cost of goods sold $ 1,842.3 $ 1,796.5 A net loss in AOCL on foreign currency forward exchange contracts at July 30, 2023 of $4.8 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) (Loss) Gain Recognized in SG&A Expenses Thirteen Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (1) $ (1.8) $ 12.5 Twenty-Six Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (1) $ (2.8) $ 26.6 (1) 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 had no derivative financial instruments with credit risk-related contingent features underlying the related contracts as of July 30, 2023. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jul. 30, 2023 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In accordance with U.S. GAAP, 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: 7/30/23 1/29/23 7/31/22 (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 $ 6.9 N/A $ 6.9 N/A $ 15.8 N/A $ 15.8 N/A $ 93.7 N/A $ 93.7 Rabbi trust assets 9.4 N/A N/A 9.4 7.2 N/A N/A 7.2 5.1 N/A N/A 5.1 Total Assets $ 9.4 $ 6.9 N/A $ 16.3 $ 7.2 $ 15.8 N/A $ 23.0 $ 5.1 $ 93.7 N/A $ 98.8 Liabilities: Foreign currency forward exchange contracts N/A $ 27.5 N/A $ 27.5 N/A $ 35.4 N/A $ 35.4 N/A $ 2.7 N/A $ 2.7 Total Liabilities N/A $ 27.5 N/A $ 27.5 N/A $ 35.4 N/A $ 35.4 N/A $ 2.7 N/A $ 2.7 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 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 Company established a rabbi trust that, beginning January 1, 2022, holds investments related to the Company’s supplemental savings plan. The rabbi trust is considered a variable interest entity and it is consolidated in the Company’s financial statements because the Company is considered the primary beneficiary of the rabbi trust. The rabbi trust assets, which generally mirror the investment elections made by eligible plan participants, were $9.4 million, $7.2 million and $5.1 million as of July 30, 2023, January 29, 2023 and July 31, 2022, respectively, and recorded in the Company’s Consolidated Balance Sheets as follows: $1.5 million and $7.9 million were included in other current assets and other assets, respectively, as of July 30, 2023, $0.7 million and $6.5 million were included in other current assets and other assets, respectively, as of January 29, 2023, and $0.1 million and $5.0 million were included in other current assets and other assets, respectively, as of July 31, 2022 . The corresponding deferred compensation liability was included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets as of July 30, 2023, January 29, 2023 and July 31, 2022 . Unrealized gains (losses) recognized on the rabbi trust investments were immaterial during the twenty-six weeks ended July 30, 2023 and July 31, 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 twenty-six weeks ended July 31, 2022 , and the total impairments recorded as a result of the remeasurement process (There were no impairments recorded during the twenty-six weeks ended July 30, 2023.): (In millions) Fair Value Measurement Using Fair Value As Of Impairment Date Total Impairments 7/31/22 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 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 twenty-six weeks ended July 31, 2022 in connection with the Company’s decision in the second quarter of 2022 to exit from its Russia business. Please see Note 14, “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. The $43.6 million of impairment charges during the twenty-six weeks ended July 31, 2022 were included in SG&A expenses in the Company’s Consolidated Statement of Operations and recorded to the Company’s segments as follows: $33.7 million in the Tommy Hilfiger International segment and $9.9 million in the Calvin Klein International segment. 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: 7/30/23 1/29/23 7/31/22 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 372.8 $ 372.8 $ 550.7 $ 550.7 $ 699.3 $ 699.3 Short-term borrowings 15.2 15.2 46.2 46.2 12.2 12.2 Long-term debt (including portion classified as current) 2,308.5 2,262.2 2,288.9 2,262.3 2,193.7 2,210.9 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 | 6 Months Ended |
Jul. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants stock-based awards under its Stock Incentive Plan (the “Plan”). Awards that may be granted under the Plan include, but are not limited to (i) service-based non-qualified stock options (“stock options”); (ii) service-based restricted stock units (“RSUs”); and (iii) contingently issuable performance share units (“PSUs”). Please see Note 13, “Stock-Based Compensation,” 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 29, 2023 for a detailed description of the Company’s stock-based compensation awards, including information relating to vesting terms and service, performance and market conditions, and additional information. 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 for awards made before June 22, 2023 and by 1.6 shares for awards made on or after June 22, 2023. Net income for the twenty-six weeks ended July 30, 2023 and July 31, 2022 included $27.4 million and $22.8 million, respectively, of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $3.4 million and $3.0 million, respectively. Stock Options 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 twenty-six weeks ended July 30, 2023 and the resulting weighted average grant date fair value per stock option: 7/30/23 Weighted average risk-free interest rate 3.33 % Weighted average expected stock option term (in years) 6.25 Weighted average Company volatility 50.60 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per stock option $ 43.47 Stock option activity for the twenty-six weeks ended July 30, 2023 was as follows: (In thousands, except per stock option data) Stock Options Weighted Average Exercise Price Outstanding at January 29, 2023 694 $ 98.08 Granted 86 83.80 Exercised — — Forfeited / Expired 62 114.47 Outstanding at July 30, 2023 718 $ 94.95 RSUs The fair value of RSUs is equal to the closing price of the Company’s common stock on the date of grant and is expensed over the RSUs’ requisite service periods. RSU activity for the twenty-six weeks ended July 30, 2023 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 29, 2023 1,325 $ 77.33 Granted 626 83.82 Vested 392 80.29 Forfeited 62 81.54 Non-vested at July 30, 2023 1,497 $ 79.10 PSUs The Company currently has PSU awards outstanding subject to three Grant Year Goal for 50% of the Award Goal for 50% of the Award 2020 Company total shareholder return (“TSR”) relative to companies included in the S&P 500 as of the grant date Company’s absolute stock price growth during a three-year performance period 2021 Company TSR relative to a pre-established group of industry peers Company’s earnings before interest and taxes (“EBIT”) during fiscal 2021 2022 Company TSR relative to a pre-established group of industry peers Company’s cumulative EBIT during a fiscal three-year performance period 2023 Company TSR relative to a pre-established group of industry peers Company’s average return on invested capital (“ROIC”) during a fiscal three-year performance period For awards granted in the first and second quarters of 2020, the applicable three-year performance periods have ended, and the holders of the awards earned an aggregate of 105,000 shares, which were between target and maximum levels. The Company granted contingently issuable PSUs to certain of the Company’s senior executives during the first quarter of 2023. For such awards, the Company records expense ratably over the three-year service period, with expense determined as follows: (i) TSR-based portion of the awards – based on the grant date fair value regardless of whether the market condition is satisfied because the awards are subject to market conditions and (ii) ROIC-based portion of the awards – based on the grant date fair value per share and the Company’s current expectations of the probable number of shares that will ultimately be issued. The grant date fair value of the awards granted was established as follows: (i) TSR-based portion of the awards – using the Monte Carlo simulation model and (ii) ROIC-based portion of the awards – based on the closing price of the Company’s common stock reduced for the present value of any dividends expected to be paid on such common stock during the three-year service period, as these contingently issuable PSUs do not accrue dividends. The following summarizes the assumptions used to estimate the fair value of PSUs subject to market conditions that were granted during the twenty-six weeks ended July 30, 2023 and the resulting weighted average grant date fair value: 7/30/23 Weighted average risk-free interest rate 3.56 % Weighted average Company volatility 58.21 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per PSU $ 120.42 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 7.40% for the restriction of liquidity, which was calculated using the Finnerty model. (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 29, 2023 244 $ 84.40 Granted 122 100.44 Change due to market conditions achieved above target 36 58.39 Vested 105 58.38 Forfeited — — Non-vested at July 30, 2023 297 $ 97.00 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jul. 30, 2023 | |
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 twenty-six weeks ended July 30, 2023 and July 31, 2022: (In millions) Foreign currency translation adjustments Net unrealized and realized (loss) gain on effective cash flow hedges Total Balance, January 29, 2023 $ (710.1) $ (3.0) $ (713.1) Other comprehensive (loss) income before reclassifications (8.3) (1) 5.5 (2.8) Less: Amounts reclassified from AOCL — 7.2 7.2 Other comprehensive loss (8.3) (1.7) (10.0) Balance, July 30, 2023 $ (718.4) $ (4.7) $ (723.1) (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 (148.4) (1)(2) 33.9 (114.5) Less: Amounts reclassified from AOCL (3.4) (3) 2.6 (0.8) Other comprehensive (loss) income (145.0) 31.3 (113.7) Balance, July 31, 2022 $ (810.9) $ 84.5 $ (726.4) (1) Foreign currency translation adjustments included a net (loss) gain on net investment hedges of $(12.7) million and $78.8 million during the twenty-six weeks ended July 30, 2023 and July 31, 2022, 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 4, “Investments in Unconsolidated Affiliates,” for further discussion. The following table presents reclassifications from AOCL to earnings for the thirteen and twenty-six weeks ended July 30, 2023 and July 31, 2022: Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Statements of Operations Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Realized gain on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 5.4 $ 5.2 $ 10.2 $ 3.7 Cost of goods sold Less: Tax effect 1.6 1.4 3.0 1.1 Income tax expense Total, net of tax $ 3.8 $ 3.8 $ 7.2 $ 2.6 Foreign currency translation adjustments: Karl Lagerfeld transaction $ — $ (3.4) (1) $ — $ (3.4) (1) Equity in net income of unconsolidated affiliates Less: Tax effect — — — — Income tax expense Total, net of tax $ — $ (3.4) $ — $ (3.4) (1) 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 4, “Investments in Unconsolidated Affiliates,” for further discussion. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jul. 30, 2023 | |
Equity, Attributable to Parent [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY The Company’s Board of Directors has authorized over time beginning in 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. Beginning January 1, 2023, the Company’s share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. During the twenty-six weeks ended July 31, 2022, the Company purchased 3.2 million shares of its common stock under the program in open market transactions for $224.4 million. During the twenty-six weeks ended July 30, 2023, the Company purchased 2.4 million shares of its common stock under the program in open market transactions for $200.2 million, excluding excise taxes of $1.7 million. As of July 30, 2023, the repurchased shares were held as treasury stock and $623.3 million of the authorization remained available for future share repurchases, excluding excise taxes, as the excise taxes do not reduce the authorized amount remaining. Treasury stock activity also includes shares that were withheld in conjunction with the settlement of RSUs and PSUs to satisfy tax withholding requirements. |
EXIT ACTIVITY COSTS
EXIT ACTIVITY COSTS | 6 Months Ended |
Jul. 30, 2023 | |
EXIT ACTIVITY COSTS [Abstract] | |
EXIT ACTIVITY COSTS | EXIT ACTIVITY COSTS 2022 Cost Savings Initiative The Company announced in August 2022 that it would be taking steps to streamline its organization and simplify its ways of working. Included in this was a planned reduction in 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 $20.2 million of pre-tax costs during 2022 and $39.0 million of pre-tax costs during the thirteen and twenty-six weeks ended July 30, 2023 and expects to incur additional costs of approximately $21 million in the third quarter of 2023. (In millions) Total Costs Expected to be Incurred Costs Incurred During the Thirteen and Twenty-Six Weeks Ended 7/30/23 Cumulative Costs Incurred (1) Severance, termination benefits and other employee costs $ 80.0 $ 39.0 $ 59.2 (1) There were no costs incurred during the thirteen and twenty-six week periods ended July 31, 2022. Of the charges incurred during the thirteen and twenty-six weeks ended July 30, 2023, $6.4 million related to SG&A expenses of the Tommy Hilfiger North America segment, $12.3 million related to SG&A expenses of the Tommy Hilfiger International segment, $5.9 million related to SG&A expenses of the Calvin Klein North America segment, $8.5 million related to SG&A expenses of the Calvin Klein International segment, $4.6 million related to SG&A expenses of the Heritage Brands Wholesale segment and $1.3 million related to corporate SG&A expenses not allocated to any reportable segment. There were $20.2 million of charges incurred during 2022, of which $4.7 million related to SG&A expenses of the Tommy Hilfiger North America segment, $2.5 million related to SG&A expenses of the Tommy Hilfiger International segment, $4.6 million related to SG&A expenses of the Calvin Klein North America segment, $3.5 million related to SG&A expenses of the Calvin Klein International segment, $2.6 million related to SG&A expenses of the Heritage Brands Wholesale segment and $2.3 million related to corporate SG&A expenses not allocated to any reportable segment. Please see Note 16, “Segment Data,” for further discussion of the Company’s reportable segments. The liabilities at July 30, 2023 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 1/29/23 Costs Incurred During the Twenty-Six Weeks Ended 7/30/23 Costs Paid During the Twenty-Six Weeks Ended 7/30/23 Liability at 7/30/23 Severance, termination benefits and other employee costs $ 13.2 $ 39.0 $ 8.7 $ 43.5 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 2022 as shown in the following table. All expected costs related to the exit from the Russia business were incurred during 2022. (In millions) Costs Incurred During the Thirteen and Twenty-Six Weeks Ended 7/31/22 Cumulative Net Costs Incurred Severance, termination benefits and other employee costs $ 2.1 $ 2.1 Long-lived asset impairments 43.6 43.6 Contract termination and other costs, net of gain on lease terminations (1) 4.8 (2.7) Total $ 50.5 $ 43.0 (1) Contract termination and other costs, net of gain on lease terminations includes $4.8 million of contract termination and other costs recorded during the second quarter of 2022 and a $7.5 million gain related to the early termination of certain store lease agreements in Russia recorded during the fourth quarter of 2022. Of the costs incurred during the thirteen and twenty-six weeks ended July 31, 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. Of the cumulative net costs incurred during 2022, $31.6 million relate to SG&A expenses of the Tommy Hilfiger International segment and $11.4 million relate to SG&A expenses of the Calvin Klein International segment. Please see Note 16, “Segment Data,” for further discussion of the Company’s reportable segments. The liabilities at July 30, 2023 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 1/29/23 Costs Incurred During the Twenty-Six Weeks Ended 7/30/23 Costs Paid During the Twenty-Six Weeks Ended 7/30/23 Liability at 7/30/23 Severance, termination benefits and other employee costs $ 0.4 $ — $ 0.1 $ 0.3 Contract termination and other costs 0.5 — 0.4 0.1 Total $ 0.9 $ — $ 0.5 $ 0.4 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 6 Months Ended |
Jul. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE The Company computed its basic and diluted net income per common share as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions, except per share data) 7/30/23 7/31/22 7/30/23 7/31/22 Net income $ 94.2 $ 115.3 $ 230.2 $ 248.4 Weighted average common shares outstanding for basic net income per common share 62.1 66.6 62.4 67.3 Weighted average impact of dilutive securities 0.6 0.4 0.7 0.6 Total shares for diluted net income per common share 62.7 67.0 63.1 67.9 Basic net income per common share $ 1.52 $ 1.73 $ 3.69 $ 3.69 Diluted net income per common share $ 1.50 $ 1.72 $ 3.65 $ 3.66 Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Weighted average potentially dilutive securities 0.8 1.8 0.9 1.4 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 income per common share for that period. The Company had contingently issuable PSU awards outstanding that did not meet the performance conditions as of July 30, 2023 and July 31, 2022 and, therefore, were excluded from the calculation of diluted net 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 0.3 million and 0.4 million as of July 30, 2023 and July 31, 2022, respectively. These amounts were also excluded from the computation of weighted average potentially dilutive securities in the table above. |
SEGMENT DATA
SEGMENT DATA | 6 Months Ended |
Jul. 30, 2023 | |
Segment Data [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company manages its operations through its operating divisions, which are presented as its reportable segments: (i) Tommy Hilfiger North America; (ii) Tommy Hilfiger International; (iii) Calvin Klein North America; (iv) Calvin Klein International; and (v) Heritage Brands Wholesale. 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 primarily in North America of (i) women’s intimate apparel under the Warner’s, Olga and True&Co. brands; (ii) men’s underwear under the Nike brand, which is licensed; and (iii) men’s dress shirts under the Van Heusen brand, which is licensed, as well as under various other licensed brand names. 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. The Company’s revenue by segment was as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 (1) 7/31/22 (1) 7/30/23 (1) 7/31/22 (1) Revenue – Tommy Hilfiger North America Net sales $ 297.6 $ 288.2 $ 564.3 $ 523.7 Royalty revenue 18.5 17.1 38.8 37.9 Advertising and other revenue 4.3 4.2 8.8 9.4 Total 320.4 309.5 611.9 571.0 Revenue – Tommy Hilfiger International Net sales 800.2 749.5 1,613.0 1,539.8 Royalty revenue 13.9 14.9 29.6 29.4 Advertising and other revenue 4.7 4.6 9.0 9.2 Total 818.8 769.0 1,651.6 1,578.4 Revenue – Calvin Klein North America Net sales 269.9 301.0 497.6 557.9 Royalty revenue 34.4 34.2 70.1 76.4 Advertising and other revenue 10.5 11.5 21.4 25.5 Total 314.8 346.7 589.1 659.8 Revenue – Calvin Klein International Net sales 610.3 549.2 1,208.6 1,107.8 Royalty revenue 13.0 11.9 25.8 24.2 Advertising and other revenue 2.1 2.2 4.4 4.4 Total 625.4 563.3 1,238.8 1,136.4 Revenue – Heritage Brands Wholesale Net sales 127.2 143.2 272.8 308.5 Royalty revenue 0.3 0.2 0.5 0.4 Advertising and other revenue 0.1 0.1 0.2 0.2 Total 127.6 143.5 273.5 309.1 Total Revenue Net sales 2,105.2 2,031.1 4,156.3 4,037.7 Royalty revenue 80.1 78.3 164.8 168.3 Advertising and other revenue 21.7 22.6 43.8 48.7 Total $ 2,207.0 $ 2,132.0 $ 4,364.9 $ 4,254.7 (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 Twenty-Six Weeks Ended (In millions) 7/30/23 (1) 7/31/22 (1) 7/30/23 (1) 7/31/22 (1) Wholesale net sales $ 1,039.9 $ 1,073.8 $ 2,254.2 $ 2,309.1 Owned and operated retail stores 872.2 784.5 1,550.3 1,403.2 Owned and operated digital commerce sites 193.1 172.8 351.8 325.4 Retail net sales 1,065.3 957.3 1,902.1 1,728.6 Net sales 2,105.2 2,031.1 4,156.3 4,037.7 Royalty revenue 80.1 78.3 164.8 168.3 Advertising and other revenue 21.7 22.6 43.8 48.7 Total $ 2,207.0 $ 2,132.0 $ 4,364.9 $ 4,254.7 (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 income before interest and taxes by segment was as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 (1)(3) 7/31/22 (1) 7/30/23 (1)(3) 7/31/22 (1) Income (loss) before interest and taxes – Tommy Hilfiger North America $ 13.2 $ (1.9) $ 15.5 $ (14.9) Income before interest and taxes – Tommy Hilfiger International 73.4 88.5 (4) 199.7 227.9 (4) Income before interest and taxes – Calvin Klein North America 20.4 21.9 22.6 33.6 Income before interest and taxes – Calvin Klein International 80.2 78.4 (4) 180.6 175.5 (4) Income before interest and taxes – Heritage Brands Wholesale 2.6 13.4 17.6 30.2 Loss before interest and taxes – Corporate (2) (46.5) (23.3) (5) (93.9) (65.0) (5) Income before interest and taxes $ 143.3 $ 177.0 $ 342.1 $ 387.3 (1) Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Includes corporate expenses not allocated to any reportable segments and the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. 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) Income (loss) before interest and taxes for the thirteen and twenty-six weeks ended July 30, 2023 included costs of $39.0 million incurred related to the 2022 cost savings initiative described in Note 14, “Exit Activity Costs,” consisting principally of severance. Such costs were included in the Company’s segments as follows: $6.4 million in Tommy Hilfiger North America, $12.3 million in Tommy Hilfiger International, $5.9 million in Calvin Klein North America, $8.5 million in Calvin Klein International, $4.6 million in Heritage Brands Wholesale and $1.3 in corporate expenses not allocated to any reportable segments. Please see Note 14, “Exit Activity Costs,” for further discussion. (4) Income before interest and taxes for the thirteen and twenty-six weeks ended July 31, 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 14, “Exit Activity Costs,” for further discussion. (5) Loss before interest and taxes for the thirteen and twenty-six weeks ended July 31, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. Intersegment transactions, which primarily consist of transfers of inventory, are not material. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 6 Months Ended |
Jul. 30, 2023 | |
Recent Accounting Guidance [Abstract] | |
RECENT ACCOUNTING GUIDANCE | RECENT ACCOUNTING GUIDANCE Recently Adopted Accounting Guidance The Financial Accounting Standards Board (“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 Company adopted the update 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. The adoption did not have any impact on the Company’s consolidated financial statements as the guidance only pertains to financial statements footnote disclosures. Please see Note 18, “Other Comments,” for the Company’s disclosures pertaining to this update. 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 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 Company adopted the update in the first quarter of 2023, which did not have an impact on the Company’s consolidated financial statements due to the absence of any applicable transactions. The impact on the Company’s consolidated financial statements will depend on the facts and circumstances of any future transactions. |
OTHER COMMENTS
OTHER COMMENTS | 6 Months Ended |
Jul. 30, 2023 | |
Other Comments [Abstract] | |
OTHER COMMENTS | OTHER COMMENTS Warehouse and Distribution Expenses The 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 twenty-six weeks ended July 30, 2023 totaled $85.6 million and $175.5 million, respectively. Warehousing and distribution expenses incurred in the thirteen and twenty-six weeks ended July 31, 2022 totaled $82.0 million and $166.8 million, respectively. Allowance For Credit Losses 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 $42.0 million, $42.6 million and $49.1 million as of July 30, 2023, January 29, 2023 and July 31, 2022, respectively. Supply Chain Finance Program The Company has a voluntary supply chain finance program (the “SCF program”) administered through a third party platform that provides the Company’s inventory suppliers with the opportunity to sell their receivables due from the Company to participating financial institutions in advance of the invoice due date, at the sole discretion of both the suppliers and the financial institutions. The Company is not a party to the agreements between the suppliers and the financial institutions and has no economic interest in a supplier’s decision to sell a receivable. The Company’s payment obligations, including the amounts due and payment terms, which generally do not exceed 90 days, are not impacted by suppliers’ participation in the SCF program. Accordingly, amounts due to suppliers that elected to participate in the SCF program are included in accounts payable in the Company’s Consolidated Balance Sheets and the corresponding payments are reflected in cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Suppliers had elected to sell $451.0 million, $506.8 million and $582.2 million of the Company’s payment obligations that were outstanding as of July 30, 2023, January 29, 2023 and July 31, 2022, respectively, to financial institutions and $986.7 million and $969.3 million had been settled through the program during the twenty-six weeks ended July 30, 2023 and July 31, 2022, respectively. Guarantees The Company has guaranteed the payment of amounts on behalf of certain parties. There have been no significant changes to the amounts guaranteed by the Company from those discussed in Note 21, “Guarantees,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended January 29, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 94.2 | $ 115.3 | $ 230.2 | $ 248.4 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
GENERAL (Policies)
GENERAL (Policies) | 6 Months Ended |
Jul. 30, 2023 | |
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 4, “Investments in Unconsolidated Affiliates,” 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) | 6 Months Ended |
Jul. 30, 2023 | |
Revenue Recognition and 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 twenty-six weeks ended July 30, 2023 and July 31, 2022 were as follows: Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 Deferred revenue balance at beginning of period $ 54.3 $ 44.9 Net additions to deferred revenue during the period 62.4 45.4 Reductions in deferred revenue for revenue recognized during the period (1) (42.3) (36.3) Deferred revenue balance at end of period $ 74.4 $ 54.0 (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 $2.8 million and $4.0 million of revenue recognized during the thirteen weeks ended July 30, 2023 and July 31, 2022, respectively. The Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $10.8 million, $12.1 million and $13.3 million as of July 30, 2023, January 29, 2023 and July 31, 2022, respectively. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the twenty-six weeks ended July 30, 2023, by segment (please see Note 16, “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 Total Balance as of January 29, 2023 Goodwill, gross $ 781.8 $ 885.0 $ 203.0 $ 1,587.6 $ 105.0 $ 3,562.4 Accumulated impairment losses (449.9) (471.3) (177.2) — (105.0) (1,203.4) Goodwill, net 331.9 413.7 25.8 1,587.6 — 2,359.0 Currency translation — (3.2) — (1.1) — (4.3) Balance as of July 30, 2023 Goodwill, gross 781.8 881.8 203.0 1,586.5 105.0 3,558.1 Accumulated impairment losses (449.9) (471.3) (177.2) — (105.0) (1,203.4) Goodwill, net $ 331.9 $ 410.5 $ 25.8 $ 1,586.5 $ — $ 2,354.7 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
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 Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Service cost $ 5.8 $ 7.7 $ 10.8 $ 15.7 Interest cost 7.4 6.4 14.6 12.7 Expected return on plan assets (8.4) (10.4) (16.9) (20.9) Total $ 4.8 $ 3.7 $ 8.5 $ 7.5 SERP Plans SERP Plans Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Service cost $ 0.4 $ 0.7 $ 0.8 $ 1.3 Interest cost 0.7 0.8 1.4 1.4 Total $ 1.1 $ 1.5 $ 2.2 $ 2.7 The Company also provides certain postretirement health care and life insurance benefits to certain retirees resident in the United States under two plans. 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 twenty-six weeks ended July 30, 2023 and July 31, 2022. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Debt Disclosure [Abstract] | |
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) 7/30/23 1/29/23 7/31/22 Senior unsecured Term Loan A facility due 2027 (1)(2) $ 477.3 $ 476.6 $ — Senior unsecured Term Loan A facility due 2024 (2) — — 457.8 7 3/4% debentures due 2023 100.0 99.9 99.9 3 5/8% senior unsecured euro notes due 2024 (2) 576.8 568.1 532.5 4 5/8% senior unsecured notes due 2025 497.6 497.0 496.4 3 1/8% senior unsecured euro notes due 2027 (2) 656.8 647.3 607.1 Total 2,308.5 2,288.9 2,193.7 Less: Current portion of long-term debt 688.9 111.9 38.2 Long-term debt $ 1,619.6 $ 2,177.0 $ 2,155.5 (1) The outstanding principal balance for the euro-denominated Term Loan A facility was €435.1 million as of July 30, 2023. (2) The carrying amount of the euro-denominated Term Loan A facilities 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 2023 through 2028 were as follows as of July 30, 2023: (In millions) Fiscal Year Amount (1) Remainder of 2023 $ 106.1 2024 590.5 2025 512.1 2026 12.1 2027 1,097.8 2028 — (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 2023 through 2028 exceed the total carrying amount of the Company’s debt as of July 30, 2023 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) | 6 Months Ended |
Jul. 30, 2023 | |
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 7/30/23 1/29/23 7/31/22 7/30/23 1/29/23 7/31/22 (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) $ 6.7 $ — $ 15.7 $ 0.1 $ 84.5 $ 2.5 $ 21.8 $ 1.4 $ 20.7 $ 2.2 $ 1.1 $ 0.1 Undesignated contracts: Foreign currency forward exchange contracts 0.2 — — — 6.7 — 4.3 — 12.5 — 1.5 — Total $ 6.9 $ — $ 15.7 $ 0.1 $ 91.2 $ 2.5 $ 26.1 $ 1.4 $ 33.2 $ 2.2 $ 2.6 $ 0.1 |
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 (Loss) Recognized in Other Comprehensive Income (Loss) (In millions) Thirteen Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 5.6 $ 12.5 Foreign currency borrowings (net investment hedges) (3.9) 38.2 Total $ 1.7 $ 50.7 Twenty-Six Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 8.0 $ 45.8 Foreign currency borrowings (net investment hedges) (16.9) 105.0 Total $ (8.9) $ 150.8 Amount of Gain Reclassified from AOCL into Income, 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 7/30/23 7/31/22 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 5.4 $ 5.2 Cost of goods sold $ 934.7 $ 912.5 Twenty-Six Weeks Ended 7/30/23 7/31/22 7/30/23 7/31/22 Foreign currency forward exchange contracts (inventory purchases) $ 10.2 $ 3.7 Cost of goods sold $ 1,842.3 $ 1,796.5 |
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) (Loss) Gain Recognized in SG&A Expenses Thirteen Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (1) $ (1.8) $ 12.5 Twenty-Six Weeks Ended 7/30/23 7/31/22 Foreign currency forward exchange contracts (1) $ (2.8) $ 26.6 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
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: 7/30/23 1/29/23 7/31/22 (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 $ 6.9 N/A $ 6.9 N/A $ 15.8 N/A $ 15.8 N/A $ 93.7 N/A $ 93.7 Rabbi trust assets 9.4 N/A N/A 9.4 7.2 N/A N/A 7.2 5.1 N/A N/A 5.1 Total Assets $ 9.4 $ 6.9 N/A $ 16.3 $ 7.2 $ 15.8 N/A $ 23.0 $ 5.1 $ 93.7 N/A $ 98.8 Liabilities: Foreign currency forward exchange contracts N/A $ 27.5 N/A $ 27.5 N/A $ 35.4 N/A $ 35.4 N/A $ 2.7 N/A $ 2.7 Total Liabilities N/A $ 27.5 N/A $ 27.5 N/A $ 35.4 N/A $ 35.4 N/A $ 2.7 N/A $ 2.7 |
Fair Value Measurements, Nonrecurring [Table Text Block] | 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 twenty-six weeks ended July 31, 2022 in connection with the Company’s decision in the second quarter of 2022 to exit from its Russia business. Please see Note 14, “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. The $43.6 million of impairment charges during the twenty-six weeks ended July 31, 2022 were included in SG&A expenses in the Company’s Consolidated Statement of Operations and recorded to the Company’s segments as follows: $33.7 million in the Tommy Hilfiger International segment and $9.9 million in the Calvin Klein International segment. |
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: 7/30/23 1/29/23 7/31/22 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 372.8 $ 372.8 $ 550.7 $ 550.7 $ 699.3 $ 699.3 Short-term borrowings 15.2 15.2 46.2 46.2 12.2 12.2 Long-term debt (including portion classified as current) 2,308.5 2,262.2 2,288.9 2,262.3 2,193.7 2,210.9 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) | 6 Months Ended |
Jul. 30, 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 twenty-six weeks ended July 30, 2023 and the resulting weighted average grant date fair value per stock option: 7/30/23 Weighted average risk-free interest rate 3.33 % Weighted average expected stock option term (in years) 6.25 Weighted average Company volatility 50.60 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per stock option $ 43.47 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Stock option activity for the twenty-six weeks ended July 30, 2023 was as follows: (In thousands, except per stock option data) Stock Options Weighted Average Exercise Price Outstanding at January 29, 2023 694 $ 98.08 Granted 86 83.80 Exercised — — Forfeited / Expired 62 114.47 Outstanding at July 30, 2023 718 $ 94.95 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | RSU activity for the twenty-six weeks ended July 30, 2023 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at January 29, 2023 1,325 $ 77.33 Granted 626 83.82 Vested 392 80.29 Forfeited 62 81.54 Non-vested at July 30, 2023 1,497 $ 79.10 |
Table of Weighted Average Monte Carlo Fair Value Assumptions Performance Awards [Table Text Block] | The following summarizes the assumptions used to estimate the fair value of PSUs subject to market conditions that were granted during the twenty-six weeks ended July 30, 2023 and the resulting weighted average grant date fair value: 7/30/23 Weighted average risk-free interest rate 3.56 % Weighted average Company volatility 58.21 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per PSU $ 120.42 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Total PSU activity for the twenty-six weeks ended July 30, 2023 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at January 29, 2023 244 $ 84.40 Granted 122 100.44 Change due to market conditions achieved above target 36 58.39 Vested 105 58.38 Forfeited — — Non-vested at July 30, 2023 297 $ 97.00 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
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 twenty-six weeks ended July 30, 2023 and July 31, 2022: (In millions) Foreign currency translation adjustments Net unrealized and realized (loss) gain on effective cash flow hedges Total Balance, January 29, 2023 $ (710.1) $ (3.0) $ (713.1) Other comprehensive (loss) income before reclassifications (8.3) (1) 5.5 (2.8) Less: Amounts reclassified from AOCL — 7.2 7.2 Other comprehensive loss (8.3) (1.7) (10.0) Balance, July 30, 2023 $ (718.4) $ (4.7) $ (723.1) (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 (148.4) (1)(2) 33.9 (114.5) Less: Amounts reclassified from AOCL (3.4) (3) 2.6 (0.8) Other comprehensive (loss) income (145.0) 31.3 (113.7) Balance, July 31, 2022 $ (810.9) $ 84.5 $ (726.4) (1) Foreign currency translation adjustments included a net (loss) gain on net investment hedges of $(12.7) million and $78.8 million during the twenty-six weeks ended July 30, 2023 and July 31, 2022, 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 4, “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 twenty-six weeks ended July 30, 2023 and July 31, 2022: Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Statements of Operations Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Realized gain on effective cash flow hedges: Foreign currency forward exchange contracts (inventory purchases) $ 5.4 $ 5.2 $ 10.2 $ 3.7 Cost of goods sold Less: Tax effect 1.6 1.4 3.0 1.1 Income tax expense Total, net of tax $ 3.8 $ 3.8 $ 7.2 $ 2.6 Foreign currency translation adjustments: Karl Lagerfeld transaction $ — $ (3.4) (1) $ — $ (3.4) (1) Equity in net income of unconsolidated affiliates Less: Tax effect — — — — Income tax expense Total, net of tax $ — $ (3.4) $ — $ (3.4) (1) 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 4, “Investments in Unconsolidated Affiliates,” for further discussion. |
EXIT ACTIVITY COSTS (Tables)
EXIT ACTIVITY COSTS (Tables) | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
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 2022 as shown in the following table. All expected costs related to the exit from the Russia business were incurred during 2022. (In millions) Costs Incurred During the Thirteen and Twenty-Six Weeks Ended 7/31/22 Cumulative Net Costs Incurred Severance, termination benefits and other employee costs $ 2.1 $ 2.1 Long-lived asset impairments 43.6 43.6 Contract termination and other costs, net of gain on lease terminations (1) 4.8 (2.7) Total $ 50.5 $ 43.0 (1) Contract termination and other costs, net of gain on lease terminations includes $4.8 million of contract termination and other costs recorded during the second quarter of 2022 and a $7.5 million gain related to the early termination of certain store lease agreements in Russia recorded during the fourth quarter of 2022. | |
Schedule of Restructuring Reserve by Type of Cost | The liabilities at July 30, 2023 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 1/29/23 Costs Incurred During the Twenty-Six Weeks Ended 7/30/23 Costs Paid During the Twenty-Six Weeks Ended 7/30/23 Liability at 7/30/23 Severance, termination benefits and other employee costs $ 0.4 $ — $ 0.1 $ 0.3 Contract termination and other costs 0.5 — 0.4 0.1 Total $ 0.9 $ — $ 0.5 $ 0.4 | |
2022 cost savings initiative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Costs | 2022 Cost Savings Initiative The Company announced in August 2022 that it would be taking steps to streamline its organization and simplify its ways of working. Included in this was a planned reduction in 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 $20.2 million of pre-tax costs during 2022 and $39.0 million of pre-tax costs during the thirteen and twenty-six weeks ended July 30, 2023 and expects to incur additional costs of approximately $21 million in the third quarter of 2023. (In millions) Total Costs Expected to be Incurred Costs Incurred During the Thirteen and Twenty-Six Weeks Ended 7/30/23 Cumulative Costs Incurred (1) Severance, termination benefits and other employee costs $ 80.0 $ 39.0 $ 59.2 (1) There were no costs incurred during the thirteen and twenty-six week periods ended July 31, 2022. Of the charges incurred during the thirteen and twenty-six weeks ended July 30, 2023, $6.4 million related to SG&A expenses of the Tommy Hilfiger North America segment, $12.3 million related to SG&A expenses of the Tommy Hilfiger International segment, $5.9 million related to SG&A expenses of the Calvin Klein North America segment, $8.5 million related to SG&A expenses of the Calvin Klein International segment, $4.6 million related to SG&A expenses of the Heritage Brands Wholesale segment and $1.3 million related to corporate SG&A expenses not allocated to any reportable segment. There were $20.2 million of charges incurred during 2022, of which $4.7 million related to SG&A expenses of the Tommy Hilfiger North America segment, $2.5 million related to SG&A expenses of the Tommy Hilfiger International segment, $4.6 million related to SG&A expenses of the Calvin Klein North America segment, $3.5 million related to SG&A expenses of the Calvin Klein International segment, $2.6 million related to SG&A expenses of the Heritage Brands Wholesale segment and $2.3 million related to corporate SG&A expenses not allocated to any reportable segment. Please see Note 16, “Segment Data,” for further discussion of the Company’s reportable segments. | |
Schedule of Restructuring Reserve by Type of Cost | The liabilities at July 30, 2023 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 1/29/23 Costs Incurred During the Twenty-Six Weeks Ended 7/30/23 Costs Paid During the Twenty-Six Weeks Ended 7/30/23 Liability at 7/30/23 Severance, termination benefits and other employee costs $ 13.2 $ 39.0 $ 8.7 $ 43.5 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The Company computed its basic and diluted net income per common share as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions, except per share data) 7/30/23 7/31/22 7/30/23 7/31/22 Net income $ 94.2 $ 115.3 $ 230.2 $ 248.4 Weighted average common shares outstanding for basic net income per common share 62.1 66.6 62.4 67.3 Weighted average impact of dilutive securities 0.6 0.4 0.7 0.6 Total shares for diluted net income per common share 62.7 67.0 63.1 67.9 Basic net income per common share $ 1.52 $ 1.73 $ 3.69 $ 3.69 Diluted net income per common share $ 1.50 $ 1.72 $ 3.65 $ 3.66 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 7/31/22 7/30/23 7/31/22 Weighted average potentially dilutive securities 0.8 1.8 0.9 1.4 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 6 Months Ended |
Jul. 30, 2023 | |
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 Twenty-Six Weeks Ended (In millions) 7/30/23 (1) 7/31/22 (1) 7/30/23 (1) 7/31/22 (1) Revenue – Tommy Hilfiger North America Net sales $ 297.6 $ 288.2 $ 564.3 $ 523.7 Royalty revenue 18.5 17.1 38.8 37.9 Advertising and other revenue 4.3 4.2 8.8 9.4 Total 320.4 309.5 611.9 571.0 Revenue – Tommy Hilfiger International Net sales 800.2 749.5 1,613.0 1,539.8 Royalty revenue 13.9 14.9 29.6 29.4 Advertising and other revenue 4.7 4.6 9.0 9.2 Total 818.8 769.0 1,651.6 1,578.4 Revenue – Calvin Klein North America Net sales 269.9 301.0 497.6 557.9 Royalty revenue 34.4 34.2 70.1 76.4 Advertising and other revenue 10.5 11.5 21.4 25.5 Total 314.8 346.7 589.1 659.8 Revenue – Calvin Klein International Net sales 610.3 549.2 1,208.6 1,107.8 Royalty revenue 13.0 11.9 25.8 24.2 Advertising and other revenue 2.1 2.2 4.4 4.4 Total 625.4 563.3 1,238.8 1,136.4 Revenue – Heritage Brands Wholesale Net sales 127.2 143.2 272.8 308.5 Royalty revenue 0.3 0.2 0.5 0.4 Advertising and other revenue 0.1 0.1 0.2 0.2 Total 127.6 143.5 273.5 309.1 Total Revenue Net sales 2,105.2 2,031.1 4,156.3 4,037.7 Royalty revenue 80.1 78.3 164.8 168.3 Advertising and other revenue 21.7 22.6 43.8 48.7 Total $ 2,207.0 $ 2,132.0 $ 4,364.9 $ 4,254.7 (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 Twenty-Six Weeks Ended (In millions) 7/30/23 (1) 7/31/22 (1) 7/30/23 (1) 7/31/22 (1) Wholesale net sales $ 1,039.9 $ 1,073.8 $ 2,254.2 $ 2,309.1 Owned and operated retail stores 872.2 784.5 1,550.3 1,403.2 Owned and operated digital commerce sites 193.1 172.8 351.8 325.4 Retail net sales 1,065.3 957.3 1,902.1 1,728.6 Net sales 2,105.2 2,031.1 4,156.3 4,037.7 Royalty revenue 80.1 78.3 164.8 168.3 Advertising and other revenue 21.7 22.6 43.8 48.7 Total $ 2,207.0 $ 2,132.0 $ 4,364.9 $ 4,254.7 (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 income before interest and taxes by segment was as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended (In millions) 7/30/23 (1)(3) 7/31/22 (1) 7/30/23 (1)(3) 7/31/22 (1) Income (loss) before interest and taxes – Tommy Hilfiger North America $ 13.2 $ (1.9) $ 15.5 $ (14.9) Income before interest and taxes – Tommy Hilfiger International 73.4 88.5 (4) 199.7 227.9 (4) Income before interest and taxes – Calvin Klein North America 20.4 21.9 22.6 33.6 Income before interest and taxes – Calvin Klein International 80.2 78.4 (4) 180.6 175.5 (4) Income before interest and taxes – Heritage Brands Wholesale 2.6 13.4 17.6 30.2 Loss before interest and taxes – Corporate (2) (46.5) (23.3) (5) (93.9) (65.0) (5) Income before interest and taxes $ 143.3 $ 177.0 $ 342.1 $ 387.3 (1) Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Includes corporate expenses not allocated to any reportable segments and the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. 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) Income (loss) before interest and taxes for the thirteen and twenty-six weeks ended July 30, 2023 included costs of $39.0 million incurred related to the 2022 cost savings initiative described in Note 14, “Exit Activity Costs,” consisting principally of severance. Such costs were included in the Company’s segments as follows: $6.4 million in Tommy Hilfiger North America, $12.3 million in Tommy Hilfiger International, $5.9 million in Calvin Klein North America, $8.5 million in Calvin Klein International, $4.6 million in Heritage Brands Wholesale and $1.3 in corporate expenses not allocated to any reportable segments. Please see Note 14, “Exit Activity Costs,” for further discussion. (4) Income before interest and taxes for the thirteen and twenty-six weeks ended July 31, 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 14, “Exit Activity Costs,” for further discussion. (5) Loss before interest and taxes for the thirteen and twenty-six weeks ended July 31, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
General Footnote Disclosures [Line Items] | ||
Fiscal Year Minimum Week Period | P1Y | |
Fiscal Year Maximum Weeks Period | P1Y7D | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 43.6 |
Property, Plant and Equipment [Member] | Fair Value, Nonrecurring [Member] | ||
General Footnote Disclosures [Line Items] | ||
Impairment of Long-Lived Assets Held-for-use | 17.2 | |
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 | |
TURKEY | ||
General Footnote Disclosures [Line Items] | ||
Percentage of total assets | 1% | 1% |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |||
Deferred Revenue [Line Items] | |||||||
Long-term deferred revenue liabilities (included in Other Liabilities) | $ 10.8 | $ 13.3 | $ 10.8 | $ 13.3 | $ 12.1 | ||
Movement in Deferred Revenue [Roll Forward] | |||||||
Deferred revenue, beginning balance | 54.3 | 44.9 | |||||
Net additions to deferred revenue during the period | 62.4 | 45.4 | |||||
Reductions in deferred revenue for revenue recognized during the period | (2.8) | (4) | (42.3) | [1] | (36.3) | [1] | |
Deferred revenue, ending balance | $ 74.4 | $ 54 | $ 74.4 | $ 54 | |||
[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 $2.8 million and $4.0 million of revenue recognized during the thirteen weeks ended July 30, 2023 and July 31, 2022, respectively. |
REVENUE Revenue, Remaining Perf
REVENUE Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Jul. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 904.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 142.8 |
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 | $ 259.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-02-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 502.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED AFFILIATES (Details) - USD ($) $ in Millions | 6 Months Ended | |||
May 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Dividends received from unconsolidated affiliates | $ 30.1 | $ 16.2 | ||
Investments in Unconsolidated Affiliates | 195.8 | 164.9 | $ 190.2 | |
Cash proceeds received from sale of equity method investment | $ 0 | (19.1) | ||
Karl Lagerfeld [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in Unconsolidated Affiliates | $ 1 | |||
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 | |||
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 | |||
Reclassification from AOCL, Foreign Currency Translation Adjustments, Current Period, Tax | $ 3.4 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | $ 2,354.7 | $ 2,694.5 | $ 2,359 |
Tradename, Carrying Amount | 2,713.1 | 2,647.7 | 2,701.1 |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 3,562.4 | ||
Accumulated impairment losses, beginning of period | (1,203.4) | ||
Goodwill, net, beginning of period | 2,359 | ||
Currency translation | (4.3) | ||
Goodwill, gross, end of period | 3,558.1 | ||
Accumulated impairment losses, end of period | (1,203.4) | ||
Goodwill, net, end of period | $ 2,354.7 | $ 2,694.5 | |
SERP Plans [Member] | |||
Goodwill [Roll Forward] | |||
Plan Benefit Payment Period | ten years | ||
Calvin Klein North America [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | $ 331.9 | 331.9 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 781.8 | ||
Accumulated impairment losses, beginning of period | (449.9) | ||
Goodwill, net, beginning of period | 331.9 | ||
Currency translation | 0 | ||
Goodwill, gross, end of period | 781.8 | ||
Accumulated impairment losses, end of period | (449.9) | ||
Goodwill, net, end of period | 331.9 | ||
Calvin Klein International [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | 410.5 | 413.7 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 885 | ||
Accumulated impairment losses, beginning of period | (471.3) | ||
Goodwill, net, beginning of period | 413.7 | ||
Currency translation | (3.2) | ||
Goodwill, gross, end of period | 881.8 | ||
Accumulated impairment losses, end of period | (471.3) | ||
Goodwill, net, end of period | 410.5 | ||
Tommy Hilfiger North America [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | 25.8 | 25.8 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 203 | ||
Accumulated impairment losses, beginning of period | (177.2) | ||
Goodwill, net, beginning of period | 25.8 | ||
Currency translation | 0 | ||
Goodwill, gross, end of period | 203 | ||
Accumulated impairment losses, end of period | (177.2) | ||
Goodwill, net, end of period | 25.8 | ||
Tommy Hilfiger International [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | 1,586.5 | 1,587.6 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 1,587.6 | ||
Accumulated impairment losses, beginning of period | 0 | ||
Goodwill, net, beginning of period | 1,587.6 | ||
Currency translation | (1.1) | ||
Goodwill, gross, end of period | 1,586.5 | ||
Accumulated impairment losses, end of period | 0 | ||
Goodwill, net, end of period | 1,586.5 | ||
Heritage Brands Wholesale [Member] | |||
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | 0 | $ 0 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 105 | ||
Accumulated impairment losses, beginning of period | (105) | ||
Goodwill, net, beginning of period | 0 | ||
Currency translation | 0 | ||
Goodwill, gross, end of period | 105 | ||
Accumulated impairment losses, end of period | (105) | ||
Goodwill, net, end of period | $ 0 |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | |
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 | $ 5.8 | $ 7.7 | $ 10.8 | $ 15.7 |
Interest cost | 7.4 | 6.4 | 14.6 | 12.7 |
Expected return on plan assets | (8.4) | (10.4) | (16.9) | (20.9) |
Total | $ 4.8 | 3.7 | $ 8.5 | 7.5 |
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 | ||
Plan Benefit Payment Period | ten years | |||
Service cost | $ 0.4 | 0.7 | $ 0.8 | 1.3 |
Interest cost | 0.7 | 0.8 | 1.4 | 1.4 |
Total | $ 1.1 | $ 1.5 | $ 2.2 | $ 2.7 |
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, $ in Millions, $ in Millions | 6 Months Ended | |||||
Jul. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Dec. 09, 2022 USD ($) | Dec. 09, 2022 AUD ($) | Dec. 09, 2022 CAD ($) | Dec. 09, 2022 EUR (€) | |
Line of Credit Facility [Line Items] | ||||||
Letters of credit outstanding, amount | $ 80.5 | |||||
Repayment of senior unsecured credit facilities | 0 | $ 13.4 | ||||
Repayment of 2022 facilities | $ 6 | 0 | ||||
2019 Facilities Term Loan A [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of senior unsecured credit facilities | 13.4 | |||||
2022 Facilities Euro Term Loan A | One Month Adjusted Eurocurrency Rate Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||
2022 Facilities Term Loan A | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of 2022 facilities | $ 6 | |||||
2019 Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 0 | |||||
Lines of Credit, Foreign Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 15.2 | |||||
Short-term debt, weighted average interest rate | 0.19% | |||||
Line of credit facility, maximum borrowing capacity | $ 220.9 | |||||
Commercial Paper [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 0 | |||||
Multicurrency revolving facility | 2022 Facilities | Base rate, Canadian prime rate or daily simple ESTR rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | |||||
Multicurrency revolving facility | 2022 Facilities | EURIBOR or other specified rates | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |||||
Multicurrency revolving facility | United States of America, Dollars | 2022 Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 1,150 | |||||
Multicurrency revolving facility | Canada, Dollars | 2022 Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 70 | |||||
Multicurrency revolving facility | Australia, Dollars | 2022 Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50 | |||||
Multicurrency revolving facility | Euro, British Pound, Japanese Yen and Swiss Francs [Member] | 2022 Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | € | € 250 | |||||
Multicurrency revolving facility | United States Dollars and Hong Kong Dollars [Member] | 2022 Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 50 | |||||
2022 Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 0 |
DEBT Schedule of Mandatory Long
DEBT Schedule of Mandatory Long-Term Debt Repayments (Details) $ in Millions | Jul. 30, 2023 USD ($) | [1] |
Debt Instrument [Line Items] | ||
Remainder of 2023 | $ 106.1 | |
2024 | 590.5 | |
2025 | 512.1 | |
2026 | 12.1 | |
2027 | 1,097.8 | |
2028 | $ 0 | |
[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 | 6 Months Ended | ||||||
Jul. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 30, 2023 EUR (€) | Jan. 29, 2023 USD ($) | Dec. 09, 2022 EUR (€) | Apr. 29, 2019 EUR (€) | ||
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 | $ 2,308.5 | $ 2,193.7 | $ 2,288.9 | ||||
Long-term Debt, Current Maturities | 688.9 | 38.2 | 111.9 | ||||
Long-term Debt, Excluding Current Maturities | 1,619.6 | 2,155.5 | 2,177 | ||||
Letters of credit outstanding, amount | 80.5 | ||||||
Repayment of senior unsecured credit facilities | $ 0 | 13.4 | |||||
Senior debenture due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | |||||
Senior Notes | $ 100 | 99.9 | 99.9 | ||||
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] | $ 576.8 | 532.5 | 568.1 | |||
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] | $ 656.8 | 607.1 | 647.3 | |||
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 | $ 497.6 | 496.4 | 497 | ||||
Debt instrument, face amount | 500 | ||||||
2019 Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount outstanding | 0 | ||||||
2019 Facilities Euro Term Loan A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured Debt | € | € 440.6 | € 500 | |||||
2019 Facilities Term Loan A [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured Debt | [1] | $ 0 | 457.8 | 0 | |||
Repayment of senior unsecured credit facilities | 13.4 | ||||||
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% | ||||||
2022 Facilities Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured Debt | [1],[2] | $ 477.3 | $ 0 | $ 476.6 | |||
2022 Facilities Euro Term Loan A | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured Debt | € | € 440.6 | ||||||
Long-term Debt, Gross | € | € 435.1 | ||||||
2022 Facilities Euro Term Loan A | One Month Adjusted Eurocurrency Rate Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||
[1]The carrying amount of the euro-denominated Term Loan A facilities 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 euro-denominated Term Loan A facility was €435.1 million as of July 30, 2023. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Income Taxes [Line Items] | ||||
Effective income tax rate | 21.30% | 26.40% | 22.40% | 28% |
Income tax expense | $ 25.5 | $ 41.4 | $ 66.3 | $ 96.8 |
Income (loss) before taxes | $ 119.7 | $ 156.7 | $ 296.5 | $ 345.2 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jul. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Jul. 30, 2023 EUR (€) | Jan. 29, 2023 USD ($) | ||
Derivative [Line Items] | |||||||
Cost of goods sold | $ 934.7 | $ 912.5 | $ 1,842.3 | $ 1,796.5 | |||
Selling, general and administrative expenses | 1,138.5 | 1,070.4 | 2,202.5 | 2,109.8 | |||
Interest expense | $ 25.9 | 21.8 | $ 51.2 | 44.8 | |||
Percentage of long-term debt at fixed interest rates | 80% | 80% | 80% | ||||
Repayment of senior unsecured credit facilities | $ 0 | 13.4 | |||||
2019 Facilities Term Loan A [Member] | |||||||
Derivative [Line Items] | |||||||
Repayment of senior unsecured credit facilities | 13.4 | ||||||
Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 6.9 | 91.2 | 6.9 | 91.2 | $ 15.7 | ||
Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 2.5 | 0 | 2.5 | 0.1 | ||
Accrued Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 26.1 | 2.6 | 26.1 | 2.6 | 33.2 | ||
Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 1.4 | 0.1 | 1.4 | 0.1 | 2.2 | ||
Foreign Currency Forward Exchange Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 1,333.7 | 1,333.7 | |||||
Net Investment Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Long-term Debt, Fair Value | 1,199.1 | 1,147.8 | 1,199.1 | 1,147.8 | 1,192 | ||
Long-term Debt, Carrying Amount | 1,233.6 | 1,139.6 | 1,233.6 | 1,139.6 | 1,215.4 | ||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0.2 | 6.7 | 0.2 | 6.7 | 0 | ||
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 | 4.3 | 1.5 | 4.3 | 1.5 | 12.5 | ||
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 | ||
Cost of Sales [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Net Loss Reclassification from AOCL to expense, Estimated Net Amount to be Transferred | $ 4.8 | ||||||
Derivative Instruments, Net Loss 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, (Loss) Gain Recognized in Expense, Net | [1] | $ (1.8) | 12.5 | (2.8) | 26.6 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain, before Reclassification and Tax | 5.6 | 12.5 | 8 | 45.8 | |||
Derivative Instruments, Gain Reclassified from AOCL into Income, Effective Portion, Net | $ 5.4 | $ 5.2 | $ 10.2 | $ 3.7 | |||
Derivative Instrument, Gain Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | 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 Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 6.7 | $ 84.5 | $ 6.7 | $ 84.5 | 15.7 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 2.5 | 0 | 2.5 | 0.1 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Accrued Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 21.8 | 1.1 | 21.8 | 1.1 | 20.7 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 1.4 | 0.1 | 1.4 | 0.1 | 2.2 | ||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Net Investment Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (3.9) | 38.2 | (16.9) | 105 | |||
Cash Flow Hedging [Member] | Contracts designated as cash flow hedges [Member] | Derivative Contract | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive Income (Loss), Designated Hedges, Gain (Loss) before Reclassification and Tax | 1.7 | 50.7 | (8.9) | 150.8 | |||
Senior notes due 2027 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | € | € 600 | ||||||
Long-term Debt, Carrying Amount | [2] | $ 656.8 | 607.1 | $ 656.8 | 607.1 | 647.3 | |
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] | $ 576.8 | $ 532.5 | $ 576.8 | $ 532.5 | $ 568.1 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | 3.625% | ||||
[1]Any gains and losses that are immediately recognized in earnings on such contracts are largely offset by the remeasurement of the underlying balances.[2]The carrying amount of the euro-denominated Term Loan A facilities 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 | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 372.8 | $ 699.3 | $ 550.7 |
Short-term borrowings | 15.2 | 12.2 | 46.2 |
Long-term debt (including portion classified as current), carrying amount | 2,308.5 | 2,193.7 | 2,288.9 |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents, fair value | 372.8 | 699.3 | 550.7 |
Short-term borrowings, fair value | 15.2 | 12.2 | 46.2 |
Long-term debt (including portion classified as current), fair value | 2,262.2 | 2,210.9 | 2,262.3 |
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 | 6.9 | 93.7 | 15.8 |
Rabbi trust assets | 9.4 | 5.1 | 7.2 |
Total Assets, Fair Value | 16.3 | 98.8 | 23 |
Foreign currency forward exchange contracts, liabilities | 27.5 | 2.7 | 35.4 |
Total Liabilities | 27.5 | 2.7 | 35.4 |
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 | 1.5 | 0.1 | 0.7 |
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 | 7.9 | 5 | 6.5 |
Cash and cash equivalents | 372.8 | 699.3 | 550.7 |
Short-term borrowings | 15.2 | 12.2 | 46.2 |
Long-term debt (including portion classified as current), carrying amount | 2,308.5 | 2,193.7 | 2,288.9 |
Impairment of Long-Lived Assets Held-for-use | 0 | 43.6 | |
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 | 26.4 | ||
Impairment of Long-Lived Assets Held-for-use | 26.4 | ||
Property, Plant and Equipment [Member] | Fair Value, Nonrecurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total Assets, Fair Value | 17.2 | ||
Impairment of Long-Lived Assets Held-for-use | 17.2 | ||
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 | ||
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 | 6.9 | 93.7 | 15.8 |
Total Assets, Fair Value | 6.9 | 93.7 | 15.8 |
Foreign currency forward exchange contracts, liabilities | 27.5 | 2.7 | 35.4 |
Total Liabilities | 27.5 | 2.7 | 35.4 |
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 | ||
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 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Rabbi trust assets | 9.4 | 5.1 | 7.2 |
Total Assets, Fair Value | $ 9.4 | 5.1 | $ 7.2 |
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] | Long-lived Assets, Other [Member] | Fair Value, Nonrecurring [Member] | |||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||
Noncash impairment charges | $ 9.9 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Incentive Plan (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 30, 2023 | Jul. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 27.4 | $ 22.8 |
Recognized income tax benefits associated with stock-based compensation expense | $ 3.4 | $ 3 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) | 6 Months Ended |
Jul. 30, 2023 USD ($) $ / shares shares | |
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 | shares | 1 |
Service-based stock option activity [Roll Forward] | |
Service-based stock options, outstanding, beginning of period | shares | 694,000 |
Service-based stock options, granted | shares | 86,000 |
Service-based stock options, exercised | shares | 0 |
Service-based stock options, forfeited/expired | shares | 62,000 |
Service-based stock options, outstanding, end of period | shares | 718,000 |
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ / shares | $ 98.08 |
Service-based stock options, granted, weighted average price per option | $ / shares | 83.80 |
Service-based stock options, exercised, weighted average price per option | $ / shares | 0 |
Service-based stock options, forfeited/expired, weighted average price per option | $ / shares | 114.47 |
Service-based stock options, outstanding, weighted average price per option, end of period | $ / shares | $ 94.95 |
Black-Scholes-Merton Model [Member] | |
Assumptions used to estimate fair value of stock based awards [Abstract] | |
Weighted average risk-free interest rate | 3.33% |
Weighted average expected stock option term (in years) | 6 years 3 months |
Weighted average Company volatility | 50.60% |
Expected annual dividends per share | $ | $ 0.15 |
Weighted average grant date fair value per stock option | $ / shares | $ 43.47 |
STOCK-BASED COMPENSATION - RSU,
STOCK-BASED COMPENSATION - RSU, Restricted Stock and Performance Share Activity (Details) | 6 Months Ended |
Jul. 30, 2023 USD ($) $ / shares shares | |
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, for awards made on or after June 22, 2023 | 1.6 |
Reduction in number of shares available for grant by each RSU or PSU award, for awards made before June 22, 2023 | 2 |
Restricted Stock Units (RSUs) [Member] | |
Non-vested activity [Roll Forward] | |
Other than options, non-vested number, beginning of period | 1,325,000 |
Other than options, granted number | 626,000 |
Other than options, vested number | 392,000 |
Other than options, forfeited number | 62,000 |
Other than options, non-vested number, end of period | 1,497,000 |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ / shares | $ 77.33 |
Other than options, granted, weighted average grant date fair value | $ / shares | 83.82 |
Other than options, vested, weighted average grant date fair value | $ / shares | 80.29 |
Other than options, forfeited, weighted average grant date fair value | $ / shares | 81.54 |
Other than options, non-vested, weighted average grant date fair value, end of period | $ / shares | $ 79.10 |
Performance Shares (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period (in years) | 3 years |
Non-vested activity [Roll Forward] | |
Other than options, non-vested number, beginning of period | 244,000 |
Other than options, granted number | 122,000 |
Other than options, change due to market conditions achieved above target | 36,000 |
Other than options, vested number | 105,000 |
Other than options, forfeited number | 0 |
Other than options, non-vested number, end of period | 297,000 |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ / shares | $ 84.40 |
Other than options, granted, weighted average grant date fair value | $ / shares | 100.44 |
Other than options, change due to market conditions achieved above target | $ / shares | 58.39 |
Other than options, vested, weighted average grant date fair value | $ / shares | 58.38 |
Other than options, forfeited, weighted average grant date fair value | $ / shares | 0 |
Other than options, non-vested, weighted average grant date fair value, end of period | $ / shares | $ 97 |
Performance Shares (PSUs) [Member] | Performance Share Units (PSUs) granted in 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Final Number of Shares Based Upon the Company's Total Shareholder Return | 50% |
Percent of Final Number of Shares Based Upon the Company's ROIC | 50% |
Performance Shares (PSUs) [Member] | Performance Share Units (PSUs) granted in 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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 in 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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] | Performance Share Units (PSUs) granted in 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
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% |
Monte Carlo Model [Member] | Performance Shares (PSUs) [Member] | |
Assumptions used to estimate fair value of stock based awards [Abstract] | |
Weighted average risk-free interest rate | 3.56% |
Weighted average Company volatility | 58.21% |
Expected annual dividends per share | $ | $ 0.15 |
Restriction of Liquidity Discount | 7.40% |
Non-vested activity [Roll Forward] | |
Other than options, granted, weighted average grant date fair value | $ / shares | $ 120.42 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 30, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | May 01, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |||
Net (loss) gain on net investment hedges, net of tax | $ (2.9) | $ 28.6 | $ (12.7) | $ 78.8 | ||||
Change in accumulated other comprehensive loss | ||||||||
Balance at beginning of year | $ (713.1) | (713.1) | ||||||
Other comprehensive (loss) income | 18.5 | (57.9) | (10) | (113.7) | ||||
Balance at end of period | (723.1) | (726.4) | (723.1) | (726.4) | ||||
Foreign currency translation adjustments | ||||||||
Net (loss) gain on net investment hedges, net of tax | (12.7) | 78.8 | ||||||
Change in accumulated other comprehensive loss | ||||||||
Balance at beginning of year | (710.1) | $ (665.9) | (710.1) | (665.9) | ||||
Other comprehensive (loss) income, before reclassifications, net of tax | [1] | (8.3) | (148.4) | [2] | ||||
Less: Amounts reclassified from AOCL, net of tax | 0 | (3.4) | 0 | (3.4) | [3] | |||
Other comprehensive (loss) income | (8.3) | (145) | ||||||
Balance at end of period | (718.4) | (810.9) | (718.4) | (810.9) | ||||
Realized gain on effective cash flow hedges | ||||||||
Change in accumulated other comprehensive loss | ||||||||
Balance at beginning of year | (3) | 53.2 | (3) | 53.2 | ||||
Other comprehensive (loss) income, before reclassifications, net of tax | 5.5 | 33.9 | ||||||
Less: Amounts reclassified from AOCL, net of tax | 3.8 | 3.8 | 7.2 | 2.6 | ||||
Other comprehensive (loss) income | (1.7) | 31.3 | ||||||
Balance at end of period | (4.7) | 84.5 | (4.7) | 84.5 | ||||
Total | ||||||||
Net (loss) gain on net investment hedges, net of tax | (2.9) | (9.8) | 28.6 | 50.2 | ||||
Change in accumulated other comprehensive loss | ||||||||
Balance at beginning of year | $ (713.1) | $ (612.7) | (713.1) | (612.7) | ||||
Other comprehensive (loss) income, before reclassifications, net of tax | (2.8) | (114.5) | ||||||
Less: Amounts reclassified from AOCL, net of tax | 7.2 | (0.8) | ||||||
Other comprehensive (loss) income | (10) | (113.7) | ||||||
Balance at end of period | $ (723.1) | $ (726.4) | $ (723.1) | $ (726.4) | ||||
[1]Foreign currency translation adjustments included a net (loss) gain on net investment hedges of $(12.7) million and $78.8 million during the twenty-six weeks ended July 30, 2023 and July 31, 2022, respectively.[2]Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against the euro.[3]Foreign currency translation adjustment losses were reclassified from AOCL during the second quarter of 2022 in connection with the Karl Lagerfeld transaction. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |||
Realized gain on effective cash flow hedges | ||||||
Reclassification from AOCL, Current Period, Net of Tax | $ 3.8 | $ 3.8 | $ 7.2 | $ 2.6 | ||
Realized gain on effective cash flow hedges | Income tax expense [Member] | ||||||
Reclassification from AOCL, Current Period, Tax | 1.6 | 1.4 | 3 | 1.1 | ||
Realized gain on effective cash flow hedges | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Cost of Sales [Member] | ||||||
Reclassification from AOCL, Current Period, before Tax | 5.4 | 5.2 | 10.2 | 3.7 | ||
Foreign currency translation adjustments | ||||||
Reclassification from AOCL, Current Period, Net of Tax | 0 | (3.4) | 0 | (3.4) | [1] | |
Foreign currency translation adjustments | Income tax expense [Member] | ||||||
Reclassification from AOCL, Current Period, Tax | 0 | 0 | 0 | 0 | ||
Foreign currency translation adjustments | Equity in net income of unconsolidated affiliates | Karl Lagerfeld Transaction | ||||||
Reclassification from AOCL, Current Period, before Tax | $ 0 | $ (3.4) | [2] | $ 0 | $ (3.4) | [2] |
[1]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 4, “Investments in Unconsolidated Affiliates,” 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 4, “Investments in Unconsolidated Affiliates,” for further discussion. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2023 | Apr. 30, 2023 | Jul. 31, 2022 | May 01, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Repurchased | 2,495,371 | 53,950 | 2,068,991 | 1,264,730 | ||
Common Stock, Dividends, Per Share, Declared | $ 0.0375 | $ 0.0375 | $ 0.0375 | $ 0.0375 | ||
Inflation Reduction Act Excise Tax on Share Repurchases | 1% | 1% | ||||
Excise taxes on share repurchases in excess of issuances | $ 1.7 | |||||
Stock Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | 3,000 | $ 3,000 | ||||
Stock Repurchase Program, Number of Shares Repurchased | 2,400,000 | 3,200,000 | ||||
Stock Repurchase Program, Amount Purchased During Period | $ 200.2 | $ 224.4 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 623.3 | $ 623.3 |
EXIT ACTIVITY COSTS (Details)
EXIT ACTIVITY COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 29, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |||
Russia Business Exit | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | [1] | $ 43 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Total liability, beginning of period | 0.9 | ||||||
Exit activity costs incurred | $ 50.5 | ||||||
Restructuring and Related Costs, Incurred Costs Excluding Long-Lived Asset Impairments and Inventory Markdowns | 0 | ||||||
Exit activity costs paid | 0.5 | ||||||
Total liability, end of period | $ 0.9 | 0.4 | $ 0.9 | ||||
Russia Business Exit | Long-lived asset impairments | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | [1] | 43.6 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 43.6 | ||||||
Russia Business Exit | Contract termination and other costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | [1] | 2.7 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Total liability, beginning of period | 0.5 | ||||||
Exit activity costs incurred | 7.5 | $ 4.8 | 0 | 4.8 | [1] | ||
Exit activity costs paid | 0.4 | ||||||
Total liability, end of period | 0.5 | 0.1 | 0.5 | ||||
Russia Business Exit | Employee Severance [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | [1] | 2.1 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Total liability, beginning of period | 0.4 | ||||||
Exit activity costs incurred | 0 | 2.1 | |||||
Exit activity costs paid | 0.1 | ||||||
Total liability, end of period | 0.4 | 0.3 | 0.4 | ||||
Russia Business Exit | Tommy Hilfiger International [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | 31.6 | 31.6 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 36.7 | ||||||
Russia Business Exit | Calvin Klein International [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | 11.4 | 11.4 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 13.8 | ||||||
2022 cost savings initiative | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 20.2 | ||||||
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 Cost and Reserve [Line Items] | |||||||
Cumulative costs incurred to date | [2] | $ 59.2 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Total liability, beginning of period | 13.2 | ||||||
Exit activity costs incurred | 39 | $ 0 | |||||
Exit activity costs paid | 8.7 | ||||||
Total liability, end of period | $ 13.2 | 43.5 | 13.2 | ||||
Total costs expected to be incurred | 80 | ||||||
Restructuring and Related Cost, Expected Cost Remaining | 21 | ||||||
2022 cost savings initiative | Calvin Klein North America [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 5.9 | 4.6 | |||||
2022 cost savings initiative | Calvin Klein North America [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 5.9 | ||||||
2022 cost savings initiative | Tommy Hilfiger International [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 12.3 | 2.5 | |||||
2022 cost savings initiative | Tommy Hilfiger International [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 12.3 | ||||||
2022 cost savings initiative | Corporate Segment [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 1.3 | 2.3 | |||||
2022 cost savings initiative | Corporate Segment [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 1.3 | ||||||
2022 cost savings initiative | Tommy Hilfiger North America [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 6.4 | 4.7 | |||||
2022 cost savings initiative | Tommy Hilfiger North America [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 6.4 | ||||||
2022 cost savings initiative | Heritage Brands Wholesale [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 4.6 | 2.6 | |||||
2022 cost savings initiative | Heritage Brands Wholesale [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 4.6 | ||||||
2022 cost savings initiative | Calvin Klein International [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | 8.5 | $ 3.5 | |||||
2022 cost savings initiative | Calvin Klein International [Member] | Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Exit activity costs incurred | $ 8.5 | ||||||
[1]ontract termination and other costs, net of gain on lease terminations includes $4.8 million of contract termination and other costs recorded during the second quarter of 2022 and a $7.5 million gain related to the early termination of certain store lease agreements in Russia recorded during the fourth quarter of 2022.[2]There were no costs incurred during the thirteen and twenty-six week periods ended July 31, 2022. |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 94.2 | $ 115.3 | $ 230.2 | $ 248.4 |
Weighted average common shares outstanding for basic net income per common share | 62.1 | 66.6 | 62.4 | 67.3 |
Weighted average impact of dilutive securities | 0.6 | 0.4 | 0.7 | 0.6 |
Total shares for diluted net income per common share | 62.7 | 67 | 63.1 | 67.9 |
Basic net income per common share | $ 1.52 | $ 1.73 | $ 3.69 | $ 3.69 |
Diluted net income per common share | $ 1.50 | $ 1.72 | $ 3.65 | $ 3.66 |
Weighted average potentially dilutive securities | 0.8 | 1.8 | 0.9 | 1.4 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | Jul. 30, 2023 | Jul. 31, 2022 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Maximum number of potentially dilutive shares that could be issued upon vesting of contingently issuable PSU awards | 0.3 | 0.4 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | ||||||
Revenue: | ||||||||||
Revenues | [1] | $ 2,207 | $ 2,132 | $ 4,364.9 | $ 4,254.7 | |||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | [3] | 143.3 | [2] | 177 | 342.1 | [2] | 387.3 | |||
Karl Lagerfeld [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Equity Method Investment, Realized Gain on Sale | 16.1 | |||||||||
Russia Business Exit | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 50.5 | |||||||||
Russia Business Exit | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 0 | 2.1 | ||||||||
2022 cost savings initiative | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | $ 20.2 | |||||||||
2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 39 | 0 | ||||||||
Net sales | ||||||||||
Revenue: | ||||||||||
Revenues | 2,105.2 | 2,031.1 | 4,156.3 | 4,037.7 | ||||||
Royalty revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 80.1 | 78.3 | 164.8 | 168.3 | ||||||
Advertising and other revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 21.7 | 22.6 | 43.8 | 48.7 | ||||||
Tommy Hilfiger North America [Member] | ||||||||||
Revenue: | ||||||||||
Revenues | [1] | 320.4 | 309.5 | 611.9 | 571 | |||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | 13.2 | (1.9) | 15.5 | (14.9) | ||||||
Tommy Hilfiger North America [Member] | 2022 cost savings initiative | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 6.4 | 4.7 | ||||||||
Tommy Hilfiger North America [Member] | 2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 6.4 | |||||||||
Tommy Hilfiger North America [Member] | Net sales | ||||||||||
Revenue: | ||||||||||
Revenues | 297.6 | 288.2 | 564.3 | 523.7 | ||||||
Tommy Hilfiger North America [Member] | Royalty revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 18.5 | 17.1 | 38.8 | 37.9 | ||||||
Tommy Hilfiger North America [Member] | Advertising and other revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 4.3 | 4.2 | 8.8 | 9.4 | ||||||
Tommy Hilfiger International [Member] | ||||||||||
Revenue: | ||||||||||
Revenues | [1] | 818.8 | 769 | 1,651.6 | 1,578.4 | |||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | 73.4 | 88.5 | [4] | 199.7 | 227.9 | [4] | ||||
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 | 12.3 | 2.5 | ||||||||
Tommy Hilfiger International [Member] | 2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 12.3 | |||||||||
Tommy Hilfiger International [Member] | Net sales | ||||||||||
Revenue: | ||||||||||
Revenues | 800.2 | 749.5 | 1,613 | 1,539.8 | ||||||
Tommy Hilfiger International [Member] | Royalty revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 13.9 | 14.9 | 29.6 | 29.4 | ||||||
Tommy Hilfiger International [Member] | Advertising and other revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 4.7 | 4.6 | 9 | 9.2 | ||||||
Calvin Klein North America [Member] | ||||||||||
Revenue: | ||||||||||
Revenues | [1] | 314.8 | 346.7 | 589.1 | 659.8 | |||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | 20.4 | 21.9 | 22.6 | 33.6 | ||||||
Calvin Klein North America [Member] | 2022 cost savings initiative | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 5.9 | 4.6 | ||||||||
Calvin Klein North America [Member] | 2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 5.9 | |||||||||
Calvin Klein North America [Member] | Net sales | ||||||||||
Revenue: | ||||||||||
Revenues | 269.9 | 301 | 497.6 | 557.9 | ||||||
Calvin Klein North America [Member] | Royalty revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 34.4 | 34.2 | 70.1 | 76.4 | ||||||
Calvin Klein North America [Member] | Advertising and other revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 10.5 | 11.5 | 21.4 | 25.5 | ||||||
Calvin Klein International [Member] | ||||||||||
Revenue: | ||||||||||
Revenues | [1] | 625.4 | 563.3 | 1,238.8 | 1,136.4 | |||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | 80.2 | 78.4 | [4] | 180.6 | 175.5 | [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 | 8.5 | 3.5 | ||||||||
Calvin Klein International [Member] | 2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 8.5 | |||||||||
Calvin Klein International [Member] | Net sales | ||||||||||
Revenue: | ||||||||||
Revenues | 610.3 | 549.2 | 1,208.6 | 1,107.8 | ||||||
Calvin Klein International [Member] | Royalty revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 13 | 11.9 | 25.8 | 24.2 | ||||||
Calvin Klein International [Member] | Advertising and other revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 2.1 | 2.2 | 4.4 | 4.4 | ||||||
Heritage Brands Wholesale [Member] | ||||||||||
Revenue: | ||||||||||
Revenues | [1] | 127.6 | 143.5 | 273.5 | 309.1 | |||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | 2.6 | 13.4 | 17.6 | 30.2 | ||||||
Heritage Brands Wholesale [Member] | 2022 cost savings initiative | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 4.6 | 2.6 | ||||||||
Heritage Brands Wholesale [Member] | 2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 4.6 | |||||||||
Heritage Brands Wholesale [Member] | Net sales | ||||||||||
Revenue: | ||||||||||
Revenues | 127.2 | 143.2 | 272.8 | 308.5 | ||||||
Heritage Brands Wholesale [Member] | Royalty revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 0.3 | 0.2 | 0.5 | 0.4 | ||||||
Heritage Brands Wholesale [Member] | Advertising and other revenue | ||||||||||
Revenue: | ||||||||||
Revenues | 0.1 | 0.1 | 0.2 | 0.2 | ||||||
Corporate Segment [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Income (loss) before interest and taxes | [5] | $ (46.5) | $ (23.3) | [6] | (93.9) | $ (65) | [6] | |||
Corporate Segment [Member] | 2022 cost savings initiative | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | 1.3 | $ 2.3 | ||||||||
Corporate Segment [Member] | 2022 cost savings initiative | Employee Severance [Member] | ||||||||||
Earnings before interest and taxes: | ||||||||||
Exit activity costs incurred | $ 1.3 | |||||||||
[1]Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.[2]Income (loss) before interest and taxes for the thirteen and twenty-six weeks ended July 30, 2023 included costs of $39.0 million incurred related to the 2022 cost savings initiative described in Note 14, “Exit Activity Costs,” consisting principally of severance. Such costs were included in the Company’s segments as follows: $6.4 million in Tommy Hilfiger North America, $12.3 million in Tommy Hilfiger International, $5.9 million in Calvin Klein North America, $8.5 million in Calvin Klein International, $4.6 million in Heritage Brands Wholesale and $1.3 in corporate expenses not allocated to any reportable segments. Please see Note 14, “Exit Activity Costs,” for further discussion.[3]Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business.[4]Income before interest and taxes for the thirteen and twenty-six weeks ended July 31, 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 14, “Exit Activity Costs,” for further discussion.[5]Includes corporate expenses not allocated to any reportable segments and the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. 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).[6]Loss before interest and taxes for the thirteen and twenty-six weeks ended July 31, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 4, “Investments in Unconsolidated Affiliates,” for further discussion. |
Revenue by Distribution Channel
Revenue by Distribution Channel (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | $ 2,207 | $ 2,132 | $ 4,364.9 | $ 4,254.7 |
Net sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 2,105.2 | 2,031.1 | 4,156.3 | 4,037.7 | |
Net sales | Wholesale | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,039.9 | 1,073.8 | 2,254.2 | 2,309.1 | |
Net sales | Retail | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,065.3 | 957.3 | 1,902.1 | 1,728.6 | |
Net sales | Sales Channel, Sales to Owned and Operated Retail Customers | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 872.2 | 784.5 | 1,550.3 | 1,403.2 | |
Net sales | Sales Channel, Sales to Owned and Operated Digital Retail Customers | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 193.1 | 172.8 | 351.8 | 325.4 | |
Royalty revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 80.1 | 78.3 | 164.8 | 168.3 | |
Advertising and other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 21.7 | $ 22.6 | $ 43.8 | $ 48.7 | |
[1]Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Details) - USD ($) $ in Millions | Jul. 30, 2023 | Jan. 29, 2023 | Jul. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings | $ (4,978.5) | $ (4,753.1) | $ (4,806) |
OTHER COMMENTS Warehousing and
OTHER COMMENTS Warehousing and Distribution (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jul. 30, 2023 | Jul. 31, 2022 | |
Warehousing and Distribution [Line Items] | ||||
Warehousing and distribution expenses | $ 85.6 | $ 82 | $ 175.5 | $ 166.8 |
OTHER COMMENTS Allowance for Cr
OTHER COMMENTS Allowance for Credit Losses (Details) - USD ($) $ in Millions | Jul. 30, 2023 | Jan. 29, 2023 | Jul. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit losses on trade receivables | $ 42 | $ 42.6 | $ 49.1 |
OTHER COMMENTS Supplier Finance
OTHER COMMENTS Supplier Finance Program (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 30, 2023 | Jul. 31, 2022 | Jan. 29, 2023 | |
Supplier Finance Program Disclosure [Line Items] | |||
Supplier Finance Program, Obligation, Settlement | $ 986.7 | $ 969.3 | |
Supplier Finance Program, Obligation, Current | $ 451 | $ 582.2 | $ 506.8 |
Supplier Finance Program, Payment Timing, Period | 90 days |