Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
May 05, 2024 | Jun. 04, 2024 | |
Cover Page [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 05, 2024 | |
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 | |
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 | 55,857,787 | |
Entity Central Index Key | 0000078239 | |
Current Fiscal Year End Date | --02-02 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, $1.00 par value | ||
Cover Page [Line Items] | ||
Title of 12(b) Security | Common Stock, $1.00 par value | |
Trading Symbol | PVH | |
Security Exchange Name | NYSE | |
4.125 Senior Notes due 2029 | ||
Cover Page [Line Items] | ||
Title of 12(b) Security | 4.125% Senior Notes due 2029 | |
Trading Symbol | PVH29 | |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2024 | Apr. 30, 2023 | ||
Total revenue | $ 1,951.9 | $ 2,157.9 | |
Cost of goods sold (exclusive of depreciation and amortization) | 753.2 | 907.6 | |
Gross profit | 1,198.7 | 1,250.3 | |
Selling, general and administrative expenses | 1,017.3 | 1,064 | |
Non-service related pension and postretirement income | 0.5 | 0.6 | |
Other gain | 10 | 0 | |
Equity in net income of unconsolidated affiliates | 13.2 | 11.9 | |
Income before interest and taxes | [1] | 205.1 | 198.8 |
Interest expense | 23.3 | 25.3 | |
Interest income | 5.6 | 3.3 | |
Income before taxes | 187.4 | 176.8 | |
Income tax expense | 36 | 40.8 | |
Net income | $ 151.4 | $ 136 | |
Basic net income per common share | $ 2.63 | $ 2.17 | |
Diluted net income per common share | $ 2.59 | $ 2.14 | |
Net sales | |||
Total revenue | $ 1,850.2 | $ 2,051.1 | |
Royalty revenue | |||
Total revenue | 81.2 | 84.7 | |
Advertising and other revenue | |||
Total revenue | $ 20.5 | $ 22.1 | |
[1] Income before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Net income | $ 151.4 | $ 136 |
Foreign currency translation adjustments | (14.8) | (16.7) |
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax expense (benefit) | 1.4 | (2) |
Net gain (loss) on net investment hedges, net of tax expense (benefit) | 2.8 | (9.8) |
Total other comprehensive loss | (10.6) | (28.5) |
Comprehensive income | $ 140.8 | $ 107.5 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized and realized gain (loss) related to effective cash flow hedges, tax expense (benefit) | $ 0.3 | $ (0.4) |
Net gain (loss) on net investment hedges, tax expense (benefit) | $ 0.9 | $ 3.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 05, 2024 | Feb. 04, 2024 | Apr. 30, 2023 |
Current Assets: | |||
Cash and cash equivalents | $ 376.2 | $ 707.6 | $ 373.8 |
Trade receivables, net of allowances for credit losses of $43.9, $41.1 and $44.7 | 810.4 | 793.3 | 911.4 |
Other receivables | 24.6 | 13.9 | 16.9 |
Inventories, net | 1,346.8 | 1,419.7 | 1,718.1 |
Prepaid expenses | 263.8 | 237.7 | 254.4 |
Other | 90.1 | 87.5 | 78.6 |
Total Current Assets | 2,911.9 | 3,259.7 | 3,353.2 |
Property, Plant and Equipment, net | 824.7 | 862.6 | 885.7 |
Operating Lease Right-of-Use Assets | 1,257.2 | 1,213.8 | 1,282.1 |
Goodwill | 2,315.2 | 2,322.1 | 2,357.7 |
Tradenames | 2,596.9 | 2,599.1 | 2,710.3 |
Other Intangibles, net | 492.7 | 498.3 | 520.7 |
Other Assets, including deferred taxes of $36.3, $33.8 and $30.7 | 390.1 | 417.3 | 381.5 |
Total Assets | 10,788.7 | 11,172.9 | 11,491.2 |
Current Liabilities: | |||
Accounts payable | 863 | 1,073.4 | 1,063 |
Accrued expenses | 643 | 776.2 | 802.1 |
Deferred revenue | 55.3 | 55.5 | 59.6 |
Current portion of operating lease liabilities | 304.2 | 288.9 | 342.2 |
Short-term borrowings | 0 | 0 | 17.3 |
Current portion of long-term debt | 11.9 | 577.5 | 112 |
Total Current Liabilities | 1,877.4 | 2,771.5 | 2,396.2 |
Long-Term Portion of Operating Lease Liabilities | 1,101 | 1,075.8 | 1,123 |
Long-Term Debt | 2,145.9 | 1,591.7 | 2,193 |
Other Liabilities, including deferred taxes of $345.9, $346.1 and $345.5 | 605.2 | 615 | 652.6 |
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; 88,904,351; 88,567,275 and 87,774,420 shares issued | 88.9 | 88.6 | 87.8 |
Additional paid in capital - common stock | 3,330.5 | 3,313.3 | 3,257.5 |
Retained earnings | 5,554.4 | 5,407.3 | 4,886.7 |
Accumulated other comprehensive loss | (764.2) | (753.6) | (741.6) |
Less: 32,877,311; 30,934,587 and 24,986,324 shares of common stock held in treasury, at cost | (3,150.4) | (2,936.7) | (2,364) |
Total Stockholders' Equity | 5,059.2 | 5,118.9 | 5,126.4 |
Total Liabilities and Stockholders' Equity | $ 10,788.7 | $ 11,172.9 | $ 11,491.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | May 05, 2024 | Feb. 04, 2024 | Apr. 30, 2023 |
Current Assets: | |||
Allowance for credit losses | $ 43.9 | $ 41.1 | $ 44.7 |
Other Assets: | |||
Other Assets, deferred taxes | 36.3 | 33.8 | 30.7 |
Liabilities: | |||
Other Liabilities, deferred taxes | $ 345.9 | $ 346.1 | $ 345.5 |
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) | 88,904,351 | 88,567,275 | 87,774,420 |
Treasury Stock, Common, Shares | 32,877,311 | 30,934,587 | 24,986,324 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
OPERATING ACTIVITIES | ||
Net income | $ 151.4 | $ 136 |
Adjustments to reconcile to net cash used by operating activities: | ||
Depreciation and amortization | 72.1 | 72.3 |
Equity in net income of unconsolidated affiliates | (13.2) | (11.9) |
Deferred taxes | (5.5) | (3) |
Stock-based compensation expense | 10.5 | 13.1 |
Other gain | (10) | 0 |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (19.5) | 13.4 |
Other receivables | (0.8) | 4.2 |
Inventories, net | 69.9 | 76.2 |
Accounts payable, accrued expenses and deferred revenue | (328.2) | (315) |
Prepaid expenses | (26.6) | (44.3) |
Other, net | 33.2 | (16.4) |
Net cash used by operating activities | (66.7) | (75.4) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (38.8) | (57.9) |
Purchases of investments held in rabbi trust | (2.5) | (1.9) |
Proceeds from investments held in rabbi trust | 0.1 | 0.2 |
Net cash used by investing activities | (41.2) | (59.6) |
FINANCING ACTIVITIES | ||
Net payments on from short-term borrowings | 0 | (27.8) |
Repayment of 2022 facilities | (3) | (3) |
Net proceeds from settlement of awards under stock plans | 7 | 0.1 |
Proceeds from 4 1/8% senior notes, net of related fees | 553.1 | 0 |
Redemption of 3 5/8% senior notes | (561.7) | 0 |
Cash dividends | (2.2) | (2.4) |
Acquisition of treasury shares | (214) | (4.6) |
Payments of finance lease liabilities | (1.1) | (1.2) |
Net cash used by financing activities | (221.9) | (38.9) |
Effect of exchange rate on cash and cash equivalents | (1.6) | (3) |
Decrease in cash and cash equivalents | (331.4) | (176.9) |
Cash and cash equivalents at beginning of period | 707.6 | 550.7 |
Cash and cash equivalents at end of period | $ 376.2 | $ 373.8 |
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. 29, 2023 | $ 5,012.7 | $ 0 | $ 87.6 | $ 3,244.5 | $ 4,753.1 | $ (713.1) | $ (2,359.4) | |
Balance (in shares) at Jan. 29, 2023 | 87,641,611 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 136 | 136 | $ 136 | |||||
Foreign currency translation adjustments | (16.7) | (16.7) | (16.7) | |||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax expense (benefit) | (2) | (2) | (2) | |||||
Net gain (loss) on net investment hedges, net of tax expense (benefit) | (9.8) | (9.8) | (9.8) | |||||
Comprehensive income | $ 107.5 | 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 declaredshare) | (2.4) | (2.4) | ||||||
Acquisition of treasury shares during period | (4.6) | (4.6) | ||||||
Balance at Apr. 30, 2023 | $ 5,126.4 | 0 | $ 87.8 | 3,257.5 | 4,886.7 | (741.6) | (2,364) | |
Balance (in shares) at Apr. 30, 2023 | 87,774,420 | 87,774,420 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings | $ 4,886.7 | |||||||
Retained earnings | 5,407.3 | |||||||
Balance at Feb. 04, 2024 | $ 5,118.9 | 0 | $ 88.6 | 3,313.3 | 5,407.3 | (753.6) | (2,936.7) | |
Balance (in shares) at Feb. 04, 2024 | 88,567,275 | 88,567,275 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 151.4 | 151.4 | 151.4 | |||||
Foreign currency translation adjustments | (14.8) | (14.8) | (14.8) | |||||
Net unrealized and realized gain (loss) related to effective cash flow hedges, net of tax expense (benefit) | 1.4 | 1.4 | 1.4 | |||||
Net gain (loss) on net investment hedges, net of tax expense (benefit) | 2.8 | 2.8 | 2.8 | |||||
Comprehensive income | $ 140.8 | 140.8 | ||||||
Settlement of awards under stock plans (in shares) | 337,076 | |||||||
Settlement of awards under stock plans | $ 0.3 | 6.7 | 7 | |||||
Stock-based compensation expense | 10.5 | 10.5 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.075 | |||||||
Dividends declaredshare) | (4.3) | (4.3) | ||||||
Acquisition of treasury shares during period | (213.7) | $ (213.7) | ||||||
Balance at May. 05, 2024 | $ 5,059.2 | $ 0 | $ 88.9 | $ 3,330.5 | $ 5,554.4 | $ (764.2) | $ (3,150.4) | |
Balance (in shares) at May. 05, 2024 | 88,904,351 | 88,904,351 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retained earnings | $ 5,554.4 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Net unrealized and realized gain (loss) related to effective cash flow hedges, tax expense (benefit) | $ 0.3 | $ (0.4) |
Net gain (loss) on net investment hedges, tax expense (benefit) | $ 0.9 | $ 3.2 |
Dividends declared | $ 0.075 | $ 0.0375 |
Acquisition of treasury shares, number of shares repurchased | 1,942,724 | 53,950 |
Excise taxes on share repurchases in excess of issuances | $ 1.7 |
GENERAL
GENERAL | 3 Months Ended |
May 05, 2024 | |
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 and Calvin Klein , which are owned, and Van Heusen , Nike and other brands, which the Company licenses for certain product categories. 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 certain territories. The Company completed the sale of its Warner’s , Olga and True&Co. women’s intimates businesses to Basic Resources on November 27, 2023 (the “Heritage Brands intimates transaction”). 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. 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 February 4, 2024. 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 weeks ended May 5, 2024 and April 30, 2023 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 continues to be uncertainty in the current macroeconomic environment due to inflationary pressures globally, the Israel-Hamas war, the attacks on commercial shipping vessels in the Red Sea, the war in Ukraine, and foreign currency volatility. 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. Israel-Hamas War, Red Sea Shipping Disruption and War in Ukraine The Israel-Hamas war, which began in October 2023, did not have a material impact on the Company’s business in 2023 and is not expected to have a material impact on the Company’s business in 2024. Less than 1% of the Company’s revenue in 2024 is expected to be generated in Israel, and less than 2% of the Company’s revenue in 2024 is expected to be generated in the Middle East, including Israel. The recent attacks on commercial shipping vessels in the Red Sea have led to disruption and instability in global supply chains, which have resulted in shipment delays that are impacting, and could continue to impact, the Company’s inventory and sales volume. Shipping delays have also resulted in, and may continue to result in, increased freight costs, for reasons including the need to rely on more expensive shipping routes and shipping methods (such as air freight). Such impacts did not have a material impact on the Company’s business in 2023 or in the first quarter of 2024, and are not expected to have a material impact on the Company’s business for the remainder of 2024. The war in Ukraine, which began in February 2022, did not have a material impact on the Company’s business in 2023 and is not expected to have a material impact on the Company’s business in 2024. Less than 1% of the Company’s revenue in 2024 is expected to be generated in Ukraine and the Company exited from its Russia business in the second quarter of 2022. |
REVENUE (Notes)
REVENUE (Notes) | 3 Months Ended |
May 05, 2024 | |
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 May 5, 2024, the contractual minimum fees on the portion of all license agreements not yet satisfied totaled $759.0 million, of which the Company expects to recognize $219.3 million as revenue during the remainder of 2024, $229.9 million in 2025 and $309.8 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 thirteen weeks ended May 5, 2024 and April 30, 2023 were as follows: Thirteen Weeks Ended (In millions) 5/5/24 4/30/23 Deferred revenue balance at beginning of period $ 55.5 $ 54.3 Net additions to deferred revenue during the period 39.8 44.8 Reductions in deferred revenue for revenue recognized during the period (1) (40.0) (39.5) Deferred revenue balance at end of period $ 55.3 $ 59.6 (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 Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $8.7 million, $9.4 million and $11.4 million as of May 5, 2024, February 4, 2024 and April 30, 2023, respectively. Please see Note 16, “Segment Data,” for information on the disaggregation of revenue by segment and distribution channel. |
INVENTORIES
INVENTORIES | 3 Months Ended |
May 05, 2024 | |
Notes to Financial Statements [Abstract] | |
INVENTORIES | INVENTORIES Inventories 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. |
DIVESTITURES
DIVESTITURES | 3 Months Ended |
May 05, 2024 | |
Business Combinations [Abstract] | |
DIVESTITURES | DIVESTITURES Sale of Warner’s, Olga and True&Co. Women’s Intimates Businesses The Company entered into a definitive agreement on November 10, 2023 to sell its Warner’s, Olga and True&Co. women’s intimates businesses to Basic Resources for $160.0 million in cash and completed the sale on November 27, 2023 for net proceeds of $155.6 million, after transaction costs. The carrying value of the net assets sold on the closing date was $140.3 million, which consisted of $44.5 million of inventory and $95.8 million of tradenames. In connection with the closing of the transaction, the Company recorded a gain of $15.3 million in the fourth quarter of 2023, which represented the excess of the amount of consideration received over the net carrying value of the assets, less costs to sell. An incremental gain of $10.0 million was recorded in the first quarter of 2024 due to the accelerated realization of the earnout provided for in the agreement with Basic Resources, which will be paid in installments to the Company during the remainder of 2024 and the first quarter of 2025. These gains were recorded in other gain in the Company’s Consolidated Statements of Operations for the respective period and included in the Heritage Brands Wholesale segment. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
May 05, 2024 | |
Goodwill [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the thirteen weeks ended May 5, 2024, 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 Total Balance as of February 4, 2024 Goodwill, gross $ 781.8 $ 877.4 $ 203.0 $ 1,558.3 $ 3,420.5 Accumulated impairment losses (449.9) (471.3) (177.2) — (1,098.4) Goodwill, net 331.9 406.1 25.8 1,558.3 2,322.1 Currency translation — (2.2) — (4.7) (6.9) Balance as of May 5, 2024 Goodwill, gross 781.8 875.2 203.0 1,553.6 3,413.6 Accumulated impairment losses (449.9) (471.3) (177.2) — (1,098.4) Goodwill, net $ 331.9 $ 403.9 $ 25.8 $ 1,553.6 $ 2,315.2 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. 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. 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 February 4, 2024 for discussion of the Company’s goodwill and other intangible assets impairment testing process. There have been no significant events or changes in circumstances during the thirteen weeks ended May 5, 2024 that would indicate the remaining carrying amount of the Company’s goodwill and other intangible assets may be impaired as of May 5, 2024. |
RETIREMENT AND BENEFIT PLANS
RETIREMENT AND BENEFIT PLANS | 3 Months Ended |
May 05, 2024 | |
Retirement and Benefit Plans [Abstract] | |
RETIREMENT AND BENEFIT PLANS | RETIREMENT AND BENEFIT PLANS The Company, as of May 5, 2024, has two noncontributory qualified defined benefit pension plans covering 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, subject to the change made in the fourth quarter of 2023 as discussed below, 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, the most significant of which is a supplemental pension 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, and two other plans for select former senior management. The Company refers to these three plans as its “SERP Plans.” In the fourth quarter of 2023, the Company’s Board of Directors approved changes to its Pension Plans and its supplemental pension plan to freeze the pensionable compensation and credited service amounts used to calculate participants’ benefits effective June 30, 2024, except for employees near retirement age that meet a specified service requirement, who will continue to accrue benefits under the Pension Plans and supplemental pension plan, as applicable, for two years after the effective date of the freeze. The components of net benefit cost recognized were as follows: Pension Plans SERP Plans Thirteen Weeks Ended Thirteen Weeks Ended (In millions) 5/5/24 4/30/23 5/5/24 4/30/23 Service cost $ 3.7 $ 5.0 $ 0.2 $ 0.4 Interest cost 7.2 7.2 0.6 0.7 Expected return on plan assets (8.3) (8.5) — — Total $ 2.6 $ 3.7 $ 0.8 $ 1.1 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, 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 weeks ended May 5, 2024 and April 30, 2023. 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 | 3 Months Ended |
May 05, 2024 | |
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 May 5, 2024. 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 $193.5 million based on exchange rates in effect on May 5, 2024 and are utilized primarily to fund working capital needs. The Company had no borrowings outstanding under these facilities as of May 5, 2024. 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 May 5, 2024. Long-Term Debt The carrying amounts of the Company’s long-term debt were as follows: (In millions) 5/5/24 2/4/24 4/30/23 Senior unsecured Term Loan A facility due 2027 (1) $ 457.8 $ 461.6 $ 478.8 7 3/4% debentures due 2023 — — 99.9 3 5/8% senior unsecured euro notes due 2024 (1) — 565.7 574.6 4 5/8% senior unsecured notes due 2025 498.5 498.2 497.3 3 1/8% senior unsecured euro notes due 2027 (1) 642.3 643.7 654.4 4 1/8% senior unsecured euro notes due 2029 (1) 559.2 — — Total 2,157.8 2,169.2 2,305.0 Less: Current portion of long-term debt 11.9 577.5 112.0 Long-term debt $ 2,145.9 $ 1,591.7 $ 2,193.0 (1) The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. Please see Note 10, “Fair Value Measurements,” for the fair value of the Company’s long-term debt as of May 5, 2024, February 4, 2024 and April 30, 2023 . The Company’s mandatory long-term debt repayments for the remainder of 2024 through 2029 were as follows as of May 5, 2024: (In millions) Fiscal Year Amount (1) Remainder of 2024 $ 8.9 2025 511.9 2026 11.9 2027 1,072.4 2028 — 2029 565.0 (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. Total debt repayments for the remainder of 2024 through 2029 exceed the total carrying amount of the Company’s debt as of May 5, 2024 because the carrying amount reflects the unamortized portions of debt issuance costs and the original issue discounts. As of May 5, 2024, 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 senior unsecured credit facilities (the “2022 facilities”). 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 made payments of $3.0 million on its term loan under the 2022 facilities in each of the thirteen weeks ended May 5, 2024 and April 30, 2023. The current applicable margin with respect to the Euro TLA facility as of May 5, 2024 was 1.250%. The current applicable margin with respect to the revolving credit facilities as of May 5, 2024 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 mann er 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 February 4, 2024 for further discussion of the 2022 facilities. 7 3/4% Debentures Due 2023 The Company had outstanding $100.0 million of debentures due November 15, 2023 that accrued interest at the rate of 7 3/4%. The Company repaid these debentures at maturity. 3 5/8% Euro Senior Notes Due 2024 The Company had outstanding €525.0 million principal amount of 3 5/8% senior notes due July 15, 2024. The Company redeemed these notes on April 25, 2024 utilizing the net proceeds from the issuance of the €525.0 million principal amount of 4 1/8% senior notes due July 16, 2029 together with other available funds, as discussed below. The Company recorded an immaterial amount of debt extinguishment costs to write-off previously capitalized debt issuance costs associated with these notes during the first quarter of 2024. 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. 4 1/8% Euro Senior Notes Due 2029 The Company issued on April 15, 2024 €525.0 million principal amount of 4 1/8% senior notes due July 16, 2029. The Company incurred €5.4 million ($5.7 million based on exchange rates in effect on the payment date) of fees in connection with the issuance of the notes, which are being amortized over the term of the notes. The Company intends to allocate an amount equal to the net proceeds of the offering to finance or refinance new or existing environmental Eligible Projects focused mainly on sustainable materials, and packaging and circularity, as defined in the Company’s prospectus. Pending allocation to Eligible Projects, the Company utilized the net proceeds of the offering, together with other available funds, to redeem the €525.0 million principal amount of 3 5/8% senior notes due July 15, 2024, as discussed above. The Company may redeem some or all of these notes at any time prior to April 16, 2029 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 16, 2029, or all of these notes at any time in the event of certain developments affecting taxation, 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 May 5, 2024, 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 Com pany had $72.1 million of these standby letters of credit outstanding as of May 5, 2024. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
May 05, 2024 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXESThe effective income tax rates for the thirteen weeks ended May 5, 2024 and April 30, 2023 were 19.2% and 23.1%, respectively. The effective income tax rate for the thirteen weeks ended May 5, 2024 was lower than the prior year period primarily due to the favorable resolution of uncertain tax positions and changes in the jurisdictional mix of earnings. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
May 05, 2024 | |
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 inventory purchases made by our foreign subsidiaries in a currency other than their functional currency. The Company uses foreign currency forward contracts to hedge against a portion of this exposure. The Company records the foreign currency forward contracts at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. The foreign currency forward 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 uses both non-derivative instruments (the par value of certain of its foreign-denominated debt) and derivative instruments (cross-currency swap contracts), which it designates as net investment hedges. The Company designated (i) the par value of its €600.0 million principal amount of 3 1/8% senior notes due 2027, (ii) until their redemption on April 25, 2024, the par value of its €525.0 million principal amount of 3 5/8% senior notes due 2024, and (iii) as of April 25, 2024, the par value of its €525.0 million principal amount of 4 1/8% senior notes due 2029 (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. During the period in which 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 $1,190.2 million and $1,201.5 million, respectively, as of May 5, 2024, $1,201.6 million and $1,209.4 million, respectively, as of February 4, 2024 and $1,203.8 million and $1,229.0 million, respectively, as of April 30, 2023. The Company evaluates the effectiveness of its non-derivative instrument net investment hedges at inception and each quarter thereafter. No amounts were excluded from effectiveness testing. In 2023, the Company entered into multiple fixed-to-fixed cross-currency swap contracts, which, in aggregate, economically convert the Company’s $500.0 million principal amount of 4 5/8% senior notes due 2025 from a United States dollar-denominated obligation to a euro-denominated obligation of €457.2 million. As part of these swap contracts, the Company will receive fixed-rate United States dollar-denominated interest at a weighted average rate of 1.405% and pay fixed-rate euro-denominated interest at a rate of 0%. The cross-currency swap contracts expire on July 10, 2025. The Company designated these cross-currency swap contracts as net investment hedges of its investments in certain of its foreign subsidiaries that use the euro as their functional currency. The Company records the cross-currency swap contracts at fair value in its Consolidated Balance Sheets and does not net the related assets and liabilities. Changes in the fair value of the cross-currency swap contracts are recorded in equity as a component of AOCL. The Company evaluates the effectiveness of its derivative instrument net investment hedges at inception and each quarter thereafter. The interest components of the cross-currency swaps are excluded from the assessment of hedge effectiveness and are initially recorded in equity as a component of AOCL. Such amounts are recognized ratably over the term of the cross-currency swap contracts as a credit to interest expense in the Company’s Consolidated Statements of Operations. 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 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 5/5/24 2/4/24 4/30/23 5/5/24 2/4/24 4/30/23 (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 and net investment hedges: Foreign currency forward contracts (inventory purchases) $ 15.0 $ 0.7 $ 13.2 $ 0.5 $ 11.4 $ 0.1 $ 2.2 $ 0.1 $ 2.4 $ 0.4 $ 24.0 $ 1.3 Cross-currency swap contracts (net investment hedges) 4.6 1.1 6.4 — — — — — — 1.3 — — Undesignated contracts: Foreign currency forward contracts 0.5 — 1.9 — 0.4 — 0.9 — 1.1 — 5.7 — Total $ 20.1 $ 1.8 $ 21.5 $ 0.5 $ 11.8 $ 0.1 $ 3.1 $ 0.1 $ 3.5 $ 1.7 $ 29.7 $ 1.3 The notional amount outstanding of foreign currency forward contracts was $1,264.6 million at May 5, 2024. Such contracts expire principally between May 2024 and October 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 (Loss) Income (In millions) Thirteen Weeks Ended 5/5/24 4/30/23 Foreign currency forward contracts (inventory purchases) $ 7.4 $ 2.4 Foreign currency borrowings (net investment hedges) 3.1 (13.0) Cross-currency swap contracts (net investment hedges) 2.3 — Total $ 12.8 $ (10.6) 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 5/5/24 4/30/23 5/5/24 4/30/23 Foreign currency forward contracts (inventory purchases) $ 5.7 $ 4.8 Cost of goods sold $ 753.2 $ 907.6 Cross-currency swap contracts (net investment hedges) 1.7 — Interest expense 23.3 25.3 Total $ 7.4 $ 4.8 A net gain in AOCL on foreign currency forward contracts at May 5, 2024 of $20.7 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 the effective portion of the Company’s net investment hedges, including amounts associated with the 3 5/8% senior notes redeemed in April 2024, would be recognized in earnings only upon the sale or substantially complete liquidation of the hedged net investment. The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Statements of Operations: (In millions) Gain (Loss) Recognized in SG&A Expenses Thirteen Weeks Ended 5/5/24 4/30/23 Foreign currency forward contracts (1) $ 1.4 $ (1.0) (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 May 5, 2024. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
May 05, 2024 | |
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: 5/5/24 2/4/24 4/30/23 (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 contracts N/A $ 16.2 N/A $ 16.2 N/A $ 15.6 N/A $ 15.6 N/A $ 11.9 N/A $ 11.9 Cross-currency swap contracts (net investment hedges) N/A 5.7 N/A 5.7 N/A 6.4 N/A 6.4 N/A N/A N/A N/A Rabbi trust assets 12.7 N/A N/A 12.7 9.9 N/A N/A 9.9 9.0 N/A N/A 9.0 Total Assets $ 12.7 $ 21.9 N/A $ 34.6 $ 9.9 $ 22.0 N/A $ 31.9 $ 9.0 $ 11.9 N/A $ 20.9 Liabilities: Foreign currency forward contracts N/A $ 3.2 N/A $ 3.2 N/A $ 3.9 N/A $ 3.9 N/A $ 31.0 N/A $ 31.0 Cross-currency swap contracts (net investment hedges) N/A — N/A — N/A 1.3 N/A 1.3 N/A N/A N/A N/A Total Liabilities N/A $ 3.2 N/A $ 3.2 N/A $ 5.2 N/A $ 5.2 N/A $ 31.0 N/A $ 31.0 The fair value of the foreign currency forward contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the foreign currency forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the cross-currency swap contracts is measured using the discounted cash flows of the contracts, which are determined based on observable inputs, including the foreign currency forward rates and discount rates, as of the period end. 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 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 generally mirror the investment elections made by eligible plan participants and are included as follows in the Company’s Consolidated Balance Sheets: 5/5/24 2/4/24 4/30/23 (In millions) Other Current Assets Other Assets Other Current Assets Other Assets Other Current Assets Other Assets Rabbi trust assets $ 1.0 $ 11.7 $ 0.8 $ 9.1 $ 0.9 $ 8.1 The corresponding deferred compensation liability is included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets. Unrealized gains recognized on the rabbi trust investments were immaterial during the thirteen weeks ended May 5, 2024 and April 30, 2023 . 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. There were no impairments recorded during the thirteen weeks ended May 5, 2024 and April 30, 2023 . 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: 5/5/24 2/4/24 4/30/23 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 376.2 $ 376.2 $ 707.6 $ 707.6 $ 373.8 $ 373.8 Short-term borrowings — — — — 17.3 17.3 Long-term debt (including portion classified as current) 2,157.8 2,141.7 2,169.2 2,159.5 2,305.0 2,278.0 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 | 3 Months Ended |
May 05, 2024 | |
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 February 4, 2024 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. Net income for the thirteen weeks ended May 5, 2024 and April 30, 2023 included $10.5 million and $13.1 million, respectively, of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $1.4 million and $1.6 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 thirteen weeks ended May 5, 2024 and the resulting weighted average grant date fair value per stock option: 5/5/24 Weighted average risk-free interest rate 4.33 % Weighted average expected stock option term (in years) 6.25 Weighted average Company volatility 53.32 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per stock option $ 60.96 Stock option activity for the thirteen weeks ended May 5, 2024 was as follows: (In thousands, except per stock option data) Stock Options Weighted Average Exercise Price Outstanding at February 4, 2024 513 $ 94.05 Granted 58 109.75 Exercised 57 122.25 Forfeited / Expired 4 124.53 Outstanding at May 5, 2024 510 $ 92.44 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 thirteen weeks ended May 5, 2024 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 4, 2024 1,175 $ 80.79 Granted 472 109.75 Vested 314 81.90 Forfeited 41 82.94 Non-vested at May 5, 2024 1,292 $ 91.02 PSUs PSU awards granted to employees have a three Grant Year Goal for 50% of the Award Goal for 50% of the Award 2021 Company total shareholder return (“TSR”) relative to a pre-established group of industry peers during a three-year period from the grant date Company’s earnings before interest and taxes (“EBIT”) during fiscal 2021 2022 Company TSR relative to a pre-established group of industry peers during a three-year period from the grant date Company’s cumulative EBIT during a fiscal three-year performance period 2023 Company TSR relative to a pre-established group of industry peers during a three-year period from the grant date Company’s average return on invested capital (“ROIC”) during a fiscal three-year performance period 2024 Company TSR relative to a pre-established group of industry peers during a three-year period from the grant date Company’s average ROIC during a fiscal three-year performance period The final number of shares to be earned, if any, is contingent upon the Company’s achievement of goals for the applicable performance period. For awards granted in 2021, the holders of the awards earned an aggregate of 55,000 shares. The Company achieved performance on the one-year EBIT measure above the maximum performance level. The Company achieved performance on the three-year TSR measure between the threshold and target levels. The Company records expense ratably over the three-year service period, with expense determined as follows: (i) TSR-based portion of the awards is 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) EBIT- and ROIC-based portion of the awards are 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 is established as follows: (i) TSR-based portion of the awards uses a Monte Carlo simulation model and (ii) EBIT- and ROIC-based portion of the awards are 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 thirteen weeks ended May 5, 2024 and the resulting weighted average grant date fair value: 5/5/24 Weighted average risk-free interest rate 4.71 % Weighted average Company volatility 48.28 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per PSU $ 138.12 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 4.40% for the restriction of liquidity, which was calculated using the Finnerty model. Total PSU activity for the thirteen weeks ended May 5, 2024 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 4, 2024 236 $ 102.29 Granted 127 122.76 Reduction due to market conditions achieved below target 1 157.70 Vested 55 124.12 Forfeited — — Non-vested at May 5, 2024 307 $ 106.68 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
May 05, 2024 | |
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 thirteen weeks ended May 5, 2024 and April 30, 2023: (In millions) Foreign currency translation adjustments Net unrealized and realized gain on effective cash flow hedges Total Balance, February 4, 2024 $ (768.7) $ 15.1 $ (753.6) Other comprehensive (loss) income before reclassifications (10.7) (1) 5.5 (5.2) Less: Amounts reclassified from AOCL 1.3 4.1 5.4 Other comprehensive (loss) income (12.0) 1.4 (10.6) Balance, May 5, 2024 $ (780.7) $ 16.5 $ (764.2) (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 (26.5) (1)(2) 1.4 (25.1) Less: Amounts reclassified from AOCL — 3.4 3.4 Other comprehensive loss (26.5) (2.0) (28.5) Balance, April 30, 2023 $ (736.6) $ (5.0) $ (741.6) (1) Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $4.1 million and $(9.8) million during the thirteen weeks ended May 5, 2024 and April 30, 2023, respectively. (2) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against certain currencies in the Asia-Pacific region (primarily the strengthening of the United States dollar against the Australian dollar), partially offset by a weakening of the United States dollar against the euro. The following table presents reclassifications from AOCL to earnings for the thirteen weeks ended May 5, 2024 and April 30, 2023: Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Statements of Operations Thirteen Weeks Ended (In millions) 5/5/24 4/30/23 Realized gain on effective cash flow hedges: Foreign currency forward contracts (inventory purchases) $ 5.7 $ 4.8 Cost of goods sold Less: Tax effect 1.6 1.4 Income tax expense Total, net of tax $ 4.1 $ 3.4 Foreign currency translation adjustments: Cross-currency swap contracts (net investment hedges) $ 1.7 $ — Interest expense Less: Tax effect 0.4 — Income tax expense Total, net of tax $ 1.3 $ — |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
May 05, 2024 | |
Equity, Attributable to Parent [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY The Company’s Board of Directors has authorized over time beginning in 2015 an aggregate $5.0 billion stock repurchase program, which includes a $2.0 billion increase in the authorization and an extension through July 30, 2028 approved on March 27, 2024. Repurchases under the program may be made from time to time over the period through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as the Company deems appropriate. Purchases are made based on a variety of factors, such as price, corporate requirements and overall market conditions, applicable legal requirements and limitations, trading restrictions under the Company’s insider trading policy and other relevant factors. The program may be modified by the Board of Directors, including to increase or decrease the repurchase limitation or extend, suspend or terminate the program at any time, without prior notice. The Company’s share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. During the thirteen weeks ended May 5, 2024, the Company purchased 1.8 million shares of its common stock under the program in open market transactions for $200.0 million, excluding excise taxes of $1.7 million. The Company did not purchase any of its common stock under the program during the thirteen weeks ended April 30, 2023. As of May 5, 2024, the repurchased shares were held as treasury stock and $2.074 billion 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 to satisfy tax withholding requirements. |
EXIT ACTIVITY COSTS
EXIT ACTIVITY COSTS | 3 Months Ended |
May 05, 2024 | |
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, which was completed. These reductions have resulted in annual cost savings of over $100 million, net of continued strategic people investments. In connection with this initiative, the Company recorded pre-tax costs of $81.5 million during 2022 and 2023. There were no costs incurred during the thirteen weeks ended April 30, 2023. All expected costs related to this initiative were incurred by the end of 2023. The pre-tax costs incurred in connection with the 2022 cost savings initiative were recorded in SG&A expenses of the Company’s segments as follows: (In millions) Cumulative Costs Incurred Tommy Hilfiger North America $ 17.4 Tommy Hilfiger International 19.8 Calvin Klein North America 13.7 Calvin Klein International 14.3 Heritage Brands Wholesale 10.4 Corporate (1) 5.9 Total $ 81.5 (1) Corporate expenses are not allocated to any reportable segment. Please see Note 16, “Segment Data,” for further discussion of the Company’s reportable segments. The liabilities 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 2/4/24 Costs Paid During the Thirteen Weeks Ended 5/5/24 Liability at 5/5/24 Severance, termination benefits and other employee costs $ 20.4 $ 10.3 $ 10.1 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 3 Months Ended |
May 05, 2024 | |
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 (In millions, except per share data) 5/5/24 4/30/23 Net income $ 151.4 $ 136.0 Weighted average common shares outstanding for basic net income per common share 57.5 62.7 Weighted average impact of dilutive securities 0.9 0.8 Total shares for diluted net income per common share 58.4 63.5 Basic net income per common share $ 2.63 $ 2.17 Diluted net income per common share $ 2.59 $ 2.14 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 (In millions) 5/5/24 4/30/23 Weighted average potentially dilutive securities 0.4 1.0 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 May 5, 2024 and April 30, 2023 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 as of both May 5, 2024 and April 30, 2023. These amounts were also excluded from the computation of weighted average potentially dilutive securities in the table above. |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
May 05, 2024 | |
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 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 affiliate relating to each affiliate’s Tommy Hilfiger business. Tommy Hilfiger International Segment - This segment consists of the Company’s Tommy Hilfiger International division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale principally in Europe, Asia and Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia and Australia, which sell TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad range of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in India relating to the affiliate’s Tommy Hilfiger business, and its unconsolidated affiliate in Brazil. Calvin Klein North America Segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale in the United States and Canada, primarily to warehouse clubs, department and specialty stores, and off-price retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and a digital commerce site in the United States, which sells Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Calvin Klein brand names for a broad range of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear LLC 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 until November 27, 2023, when the Company completed the Heritage Brands intimates transaction; (ii) men’s underwear under the Nike brand, which is licensed; and (iii) men’s dress shirts under the Van Heusen brand, which is licensed, as well as under various other licensed brand names. Please see Note 4, “Divestitures,” for further discussion of the Heritage Brands intimates transaction. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear LLC 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 (In millions) 5/5/24 (1) 4/30/23 (1) Revenue – Tommy Hilfiger North America Net sales $ 271.4 $ 266.7 Royalty revenue 20.7 20.3 Advertising and other revenue 4.6 4.5 Total 296.7 291.5 Revenue – Tommy Hilfiger International Net sales 700.0 812.8 Royalty revenue 13.3 15.7 Advertising and other revenue 3.3 4.3 Total 716.6 832.8 Revenue – Calvin Klein North America Net sales 239.7 227.7 Royalty revenue 35.7 35.7 Advertising and other revenue 9.9 10.9 Total 285.3 274.3 Revenue – Calvin Klein International Net sales 587.4 598.3 Royalty revenue 11.4 12.8 Advertising and other revenue 2.7 2.3 Total 601.5 613.4 Revenue – Heritage Brands Wholesale Net sales 51.7 145.6 Royalty revenue 0.1 0.2 Advertising and other revenue — 0.1 Total 51.8 145.9 Total Revenue Net sales 1,850.2 2,051.1 Royalty revenue 81.2 84.7 Advertising and other revenue 20.5 22.1 Total $ 1,951.9 $ 2,157.9 (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 (In millions) 5/5/24 (1) 4/30/23 (1) Wholesale net sales $ 1,004.3 $ 1,214.3 Owned and operated retail stores 697.5 678.1 Owned and operated digital commerce sites 148.4 158.7 Retail net sales 845.9 836.8 Net sales 1,850.2 2,051.1 Royalty revenue 81.2 84.7 Advertising and other revenue 20.5 22.1 Total $ 1,951.9 $ 2,157.9 (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 (In millions) 5/5/24 (1) 4/30/23 (1) Income before interest and taxes – Tommy Hilfiger North America $ 24.4 $ 2.3 Income before interest and taxes – Tommy Hilfiger International 76.4 126.3 Income before interest and taxes – Calvin Klein North America 36.6 2.2 Income before interest and taxes – Calvin Klein International 96.4 100.4 Income before interest and taxes – Heritage Brands Wholesale 16.3 (2) 15.0 Loss before interest and taxes – Corporate (3) (45.0) (47.4) Income before interest and taxes $ 205.1 $ 198.8 (1) Income before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Income before interest and taxes for the thirteen weeks ended May 5, 2024 included a gain of $10.0 million in connection with the Heritage Brands intimates transaction due to the accelerated realization of the earnout provided for in the agreement with Basic Resources. Please see Note 4, “Divestitures,” for further discussion. (3) Includes corporate expenses not allocated to any reportable segments. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, certain global strategic initiatives and actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans (which are generally recorded in the fourth quarter). Intersegment transactions, which primarily consist of transfers of inventory, are not material. |
RECENT ACCOUNTING GUIDANCE
RECENT ACCOUNTING GUIDANCE | 3 Months Ended |
May 05, 2024 | |
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 is effective for the Company in 2024 for annual disclosure 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. Accounting Guidance Issued But Not Adopted as of May 5, 2024 The FASB issued in November 2023 an update to accounting guidance requiring disclosure on an annual and interim basis of incremental segment information, primarily to enhance disclosures about significant segment expenses. The update will be effective for the Company beginning with its 2024 annual consolidated financial statements and interim statements thereafter, with early adoption permitted. Entities are required to adopt the guidance on a retrospective basis. The Company is currently evaluating the update to determine the impact the adoption will have on its footnote disclosure to its consolidated financial statements. The FASB issued in December 2023 an update to accounting guidance which is intended to improve the transparency of income tax disclosures by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The update will be effective for the Company beginning with its 2025 annual consolidated financial statements, with early adoption permitted. Entities are required to apply the guidance on a prospective basis, with retrospective application permitted. The Company is currently evaluating the update to determine the impact the adoption will have on its footnote disclosure to its consolidated financial statements. |
OTHER COMMENTS
OTHER COMMENTS | 3 Months Ended |
May 05, 2024 | |
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 weeks ended May 5, 2024 and April 30, 2023 totaled $76.5 million and $89.9 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 $43.9 million, $41.1 million and $44.7 million as of May 5, 2024, February 4, 2024 and April 30, 2023, 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 $347.7 million, $423.4 million and $395.5 million of the Company’s payment obligations that were outstanding as of May 5, 2024, February 4, 2024 and April 30, 2023, respectively, to financial institutions and $449.1 million and $555.3 million had been settled through the program during the thirteen weeks ended May 5, 2024 and April 30, 2023, respectively. Guarantees The Company has guaranteed the payment of amounts on behalf of certain parties. There have been no significant changes to the amounts guaranteed by the Company from those discussed in Note 21, “Guarantees,” in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended February 4, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 151.4 | $ 136 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
May 05, 2024 | |
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) | 3 Months Ended |
May 05, 2024 | |
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. |
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) | 3 Months Ended |
May 05, 2024 | |
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 thirteen weeks ended May 5, 2024 and April 30, 2023 were as follows: Thirteen Weeks Ended (In millions) 5/5/24 4/30/23 Deferred revenue balance at beginning of period $ 55.5 $ 54.3 Net additions to deferred revenue during the period 39.8 44.8 Reductions in deferred revenue for revenue recognized during the period (1) (40.0) (39.5) Deferred revenue balance at end of period $ 55.3 $ 59.6 (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 Company also had long-term deferred revenue liabilities included in other liabilities in its Consolidated Balance Sheets of $8.7 million, $9.4 million and $11.4 million as of May 5, 2024, February 4, 2024 and April 30, 2023, respectively. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL (Tables) | 3 Months Ended |
May 05, 2024 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill for the thirteen weeks ended May 5, 2024, 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 Total Balance as of February 4, 2024 Goodwill, gross $ 781.8 $ 877.4 $ 203.0 $ 1,558.3 $ 3,420.5 Accumulated impairment losses (449.9) (471.3) (177.2) — (1,098.4) Goodwill, net 331.9 406.1 25.8 1,558.3 2,322.1 Currency translation — (2.2) — (4.7) (6.9) Balance as of May 5, 2024 Goodwill, gross 781.8 875.2 203.0 1,553.6 3,413.6 Accumulated impairment losses (449.9) (471.3) (177.2) — (1,098.4) Goodwill, net $ 331.9 $ 403.9 $ 25.8 $ 1,553.6 $ 2,315.2 |
RETIREMENT AND BENEFIT PLANS (T
RETIREMENT AND BENEFIT PLANS (Tables) | 3 Months Ended |
May 05, 2024 | |
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 SERP Plans Thirteen Weeks Ended Thirteen Weeks Ended (In millions) 5/5/24 4/30/23 5/5/24 4/30/23 Service cost $ 3.7 $ 5.0 $ 0.2 $ 0.4 Interest cost 7.2 7.2 0.6 0.7 Expected return on plan assets (8.3) (8.5) — — Total $ 2.6 $ 3.7 $ 0.8 $ 1.1 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, 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 weeks ended May 5, 2024 and April 30, 2023. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
May 05, 2024 | |
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) 5/5/24 2/4/24 4/30/23 Senior unsecured Term Loan A facility due 2027 (1) $ 457.8 $ 461.6 $ 478.8 7 3/4% debentures due 2023 — — 99.9 3 5/8% senior unsecured euro notes due 2024 (1) — 565.7 574.6 4 5/8% senior unsecured notes due 2025 498.5 498.2 497.3 3 1/8% senior unsecured euro notes due 2027 (1) 642.3 643.7 654.4 4 1/8% senior unsecured euro notes due 2029 (1) 559.2 — — Total 2,157.8 2,169.2 2,305.0 Less: Current portion of long-term debt 11.9 577.5 112.0 Long-term debt $ 2,145.9 $ 1,591.7 $ 2,193.0 (1) The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
Schedule of Mandatory Long-Term Debt Repayments [Table] | The Company’s mandatory long-term debt repayments for the remainder of 2024 through 2029 were as follows as of May 5, 2024: (In millions) Fiscal Year Amount (1) Remainder of 2024 $ 8.9 2025 511.9 2026 11.9 2027 1,072.4 2028 — 2029 565.0 (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. Total debt repayments for the remainder of 2024 through 2029 exceed the total carrying amount of the Company’s debt as of May 5, 2024 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) | 3 Months Ended |
May 05, 2024 | |
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 5/5/24 2/4/24 4/30/23 5/5/24 2/4/24 4/30/23 (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 and net investment hedges: Foreign currency forward contracts (inventory purchases) $ 15.0 $ 0.7 $ 13.2 $ 0.5 $ 11.4 $ 0.1 $ 2.2 $ 0.1 $ 2.4 $ 0.4 $ 24.0 $ 1.3 Cross-currency swap contracts (net investment hedges) 4.6 1.1 6.4 — — — — — — 1.3 — — Undesignated contracts: Foreign currency forward contracts 0.5 — 1.9 — 0.4 — 0.9 — 1.1 — 5.7 — Total $ 20.1 $ 1.8 $ 21.5 $ 0.5 $ 11.8 $ 0.1 $ 3.1 $ 0.1 $ 3.5 $ 1.7 $ 29.7 $ 1.3 |
Schedule of Derivative Instruments, Gain 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 (Loss) Income (In millions) Thirteen Weeks Ended 5/5/24 4/30/23 Foreign currency forward contracts (inventory purchases) $ 7.4 $ 2.4 Foreign currency borrowings (net investment hedges) 3.1 (13.0) Cross-currency swap contracts (net investment hedges) 2.3 — Total $ 12.8 $ (10.6) 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 5/5/24 4/30/23 5/5/24 4/30/23 Foreign currency forward contracts (inventory purchases) $ 5.7 $ 4.8 Cost of goods sold $ 753.2 $ 907.6 Cross-currency swap contracts (net investment hedges) 1.7 — Interest expense 23.3 25.3 Total $ 7.4 $ 4.8 |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | The following table summarizes the effect of the Company’s undesignated contracts recognized in SG&A expenses in its Consolidated Statements of Operations: (In millions) Gain (Loss) Recognized in SG&A Expenses Thirteen Weeks Ended 5/5/24 4/30/23 Foreign currency forward contracts (1) $ 1.4 $ (1.0) (1) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
May 05, 2024 | |
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: 5/5/24 2/4/24 4/30/23 (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 contracts N/A $ 16.2 N/A $ 16.2 N/A $ 15.6 N/A $ 15.6 N/A $ 11.9 N/A $ 11.9 Cross-currency swap contracts (net investment hedges) N/A 5.7 N/A 5.7 N/A 6.4 N/A 6.4 N/A N/A N/A N/A Rabbi trust assets 12.7 N/A N/A 12.7 9.9 N/A N/A 9.9 9.0 N/A N/A 9.0 Total Assets $ 12.7 $ 21.9 N/A $ 34.6 $ 9.9 $ 22.0 N/A $ 31.9 $ 9.0 $ 11.9 N/A $ 20.9 Liabilities: Foreign currency forward contracts N/A $ 3.2 N/A $ 3.2 N/A $ 3.9 N/A $ 3.9 N/A $ 31.0 N/A $ 31.0 Cross-currency swap contracts (net investment hedges) N/A — N/A — N/A 1.3 N/A 1.3 N/A N/A N/A N/A Total Liabilities N/A $ 3.2 N/A $ 3.2 N/A $ 5.2 N/A $ 5.2 N/A $ 31.0 N/A $ 31.0 The fair value of the foreign currency forward contracts is measured as the total amount of currency to be purchased, multiplied by the difference between (i) the foreign currency forward rate as of the period end and (ii) the settlement rate specified in each contract. The fair value of the cross-currency swap contracts is measured using the discounted cash flows of the contracts, which are determined based on observable inputs, including the foreign currency forward rates and discount rates, as of the period end. 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 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 generally mirror the investment elections made by eligible plan participants and are included as follows in the Company’s Consolidated Balance Sheets: 5/5/24 2/4/24 4/30/23 (In millions) Other Current Assets Other Assets Other Current Assets Other Assets Other Current Assets Other Assets Rabbi trust assets $ 1.0 $ 11.7 $ 0.8 $ 9.1 $ 0.9 $ 8.1 The corresponding deferred compensation liability is included in accrued expenses and other liabilities in the Company’s Consolidated Balance Sheets. Unrealized gains recognized on the rabbi trust investments were immaterial during the thirteen weeks ended May 5, 2024 and April 30, 2023 . |
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: 5/5/24 2/4/24 4/30/23 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 376.2 $ 376.2 $ 707.6 $ 707.6 $ 373.8 $ 373.8 Short-term borrowings — — — — 17.3 17.3 Long-term debt (including portion classified as current) 2,157.8 2,141.7 2,169.2 2,159.5 2,305.0 2,278.0 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) | 3 Months Ended |
May 05, 2024 | |
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 thirteen weeks ended May 5, 2024 and the resulting weighted average grant date fair value per stock option: 5/5/24 Weighted average risk-free interest rate 4.33 % Weighted average expected stock option term (in years) 6.25 Weighted average Company volatility 53.32 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per stock option $ 60.96 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Stock option activity for the thirteen weeks ended May 5, 2024 was as follows: (In thousands, except per stock option data) Stock Options Weighted Average Exercise Price Outstanding at February 4, 2024 513 $ 94.05 Granted 58 109.75 Exercised 57 122.25 Forfeited / Expired 4 124.53 Outstanding at May 5, 2024 510 $ 92.44 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | RSU activity for the thirteen weeks ended May 5, 2024 was as follows: (In thousands, except per RSU data) RSUs Weighted Average Grant Date Fair Value Per RSU Non-vested at February 4, 2024 1,175 $ 80.79 Granted 472 109.75 Vested 314 81.90 Forfeited 41 82.94 Non-vested at May 5, 2024 1,292 $ 91.02 |
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 thirteen weeks ended May 5, 2024 and the resulting weighted average grant date fair value: 5/5/24 Weighted average risk-free interest rate 4.71 % Weighted average Company volatility 48.28 % Expected annual dividends per share $ 0.15 Weighted average grant date fair value per PSU $ 138.12 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | Total PSU activity for the thirteen weeks ended May 5, 2024 was as follows: (In thousands, except per PSU data) PSUs Weighted Average Grant Date Fair Value Per PSU Non-vested at February 4, 2024 236 $ 102.29 Granted 127 122.76 Reduction due to market conditions achieved below target 1 157.70 Vested 55 124.12 Forfeited — — Non-vested at May 5, 2024 307 $ 106.68 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
May 05, 2024 | |
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 thirteen weeks ended May 5, 2024 and April 30, 2023: (In millions) Foreign currency translation adjustments Net unrealized and realized gain on effective cash flow hedges Total Balance, February 4, 2024 $ (768.7) $ 15.1 $ (753.6) Other comprehensive (loss) income before reclassifications (10.7) (1) 5.5 (5.2) Less: Amounts reclassified from AOCL 1.3 4.1 5.4 Other comprehensive (loss) income (12.0) 1.4 (10.6) Balance, May 5, 2024 $ (780.7) $ 16.5 $ (764.2) (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 (26.5) (1)(2) 1.4 (25.1) Less: Amounts reclassified from AOCL — 3.4 3.4 Other comprehensive loss (26.5) (2.0) (28.5) Balance, April 30, 2023 $ (736.6) $ (5.0) $ (741.6) (1) Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $4.1 million and $(9.8) million during the thirteen weeks ended May 5, 2024 and April 30, 2023, respectively. (2) Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against certain currencies in the Asia-Pacific region (primarily the strengthening of the United States dollar against the Australian dollar), partially offset by a weakening of the United States dollar against the euro. |
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 weeks ended May 5, 2024 and April 30, 2023: Amount Reclassified from AOCL Affected Line Item in the Company’s Consolidated Statements of Operations Thirteen Weeks Ended (In millions) 5/5/24 4/30/23 Realized gain on effective cash flow hedges: Foreign currency forward contracts (inventory purchases) $ 5.7 $ 4.8 Cost of goods sold Less: Tax effect 1.6 1.4 Income tax expense Total, net of tax $ 4.1 $ 3.4 Foreign currency translation adjustments: Cross-currency swap contracts (net investment hedges) $ 1.7 $ — Interest expense Less: Tax effect 0.4 — Income tax expense Total, net of tax $ 1.3 $ — |
EXIT ACTIVITY COSTS (Tables)
EXIT ACTIVITY COSTS (Tables) - 2022 cost savings initiative | 3 Months Ended |
May 05, 2024 | |
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, which was completed. These reductions have resulted in annual cost savings of over $100 million, net of continued strategic people investments. In connection with this initiative, the Company recorded pre-tax costs of $81.5 million during 2022 and 2023. There were no costs incurred during the thirteen weeks ended April 30, 2023. All expected costs related to this initiative were incurred by the end of 2023. The pre-tax costs incurred in connection with the 2022 cost savings initiative were recorded in SG&A expenses of the Company’s segments as follows: (In millions) Cumulative Costs Incurred Tommy Hilfiger North America $ 17.4 Tommy Hilfiger International 19.8 Calvin Klein North America 13.7 Calvin Klein International 14.3 Heritage Brands Wholesale 10.4 Corporate (1) 5.9 Total $ 81.5 (1) Corporate expenses are 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 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 2/4/24 Costs Paid During the Thirteen Weeks Ended 5/5/24 Liability at 5/5/24 Severance, termination benefits and other employee costs $ 20.4 $ 10.3 $ 10.1 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 3 Months Ended |
May 05, 2024 | |
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 (In millions, except per share data) 5/5/24 4/30/23 Net income $ 151.4 $ 136.0 Weighted average common shares outstanding for basic net income per common share 57.5 62.7 Weighted average impact of dilutive securities 0.9 0.8 Total shares for diluted net income per common share 58.4 63.5 Basic net income per common share $ 2.63 $ 2.17 Diluted net income per common share $ 2.59 $ 2.14 |
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 (In millions) 5/5/24 4/30/23 Weighted average potentially dilutive securities 0.4 1.0 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
May 05, 2024 | |
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 (In millions) 5/5/24 (1) 4/30/23 (1) Revenue – Tommy Hilfiger North America Net sales $ 271.4 $ 266.7 Royalty revenue 20.7 20.3 Advertising and other revenue 4.6 4.5 Total 296.7 291.5 Revenue – Tommy Hilfiger International Net sales 700.0 812.8 Royalty revenue 13.3 15.7 Advertising and other revenue 3.3 4.3 Total 716.6 832.8 Revenue – Calvin Klein North America Net sales 239.7 227.7 Royalty revenue 35.7 35.7 Advertising and other revenue 9.9 10.9 Total 285.3 274.3 Revenue – Calvin Klein International Net sales 587.4 598.3 Royalty revenue 11.4 12.8 Advertising and other revenue 2.7 2.3 Total 601.5 613.4 Revenue – Heritage Brands Wholesale Net sales 51.7 145.6 Royalty revenue 0.1 0.2 Advertising and other revenue — 0.1 Total 51.8 145.9 Total Revenue Net sales 1,850.2 2,051.1 Royalty revenue 81.2 84.7 Advertising and other revenue 20.5 22.1 Total $ 1,951.9 $ 2,157.9 (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 (In millions) 5/5/24 (1) 4/30/23 (1) Wholesale net sales $ 1,004.3 $ 1,214.3 Owned and operated retail stores 697.5 678.1 Owned and operated digital commerce sites 148.4 158.7 Retail net sales 845.9 836.8 Net sales 1,850.2 2,051.1 Royalty revenue 81.2 84.7 Advertising and other revenue 20.5 22.1 Total $ 1,951.9 $ 2,157.9 (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 (In millions) 5/5/24 (1) 4/30/23 (1) Income before interest and taxes – Tommy Hilfiger North America $ 24.4 $ 2.3 Income before interest and taxes – Tommy Hilfiger International 76.4 126.3 Income before interest and taxes – Calvin Klein North America 36.6 2.2 Income before interest and taxes – Calvin Klein International 96.4 100.4 Income before interest and taxes – Heritage Brands Wholesale 16.3 (2) 15.0 Loss before interest and taxes – Corporate (3) (45.0) (47.4) Income before interest and taxes $ 205.1 $ 198.8 (1) Income before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Income before interest and taxes for the thirteen weeks ended May 5, 2024 included a gain of $10.0 million in connection with the Heritage Brands intimates transaction due to the accelerated realization of the earnout provided for in the agreement with Basic Resources. Please see Note 4, “Divestitures,” for further discussion. (3) Includes corporate expenses not allocated to any reportable segments. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, certain global strategic initiatives and actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans (which are generally recorded in the fourth quarter). Intersegment transactions, which primarily consist of transfers of inventory, are not material. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
General Footnote Disclosures [Line Items] | ||
Fiscal Year Minimum Week Period | P1Y | |
Fiscal Year Maximum Weeks Period | P1Y7D | |
Total revenue | $ 1,951.9 | $ 2,157.9 |
ISRAEL | ||
General Footnote Disclosures [Line Items] | ||
Percentage of future revenue | 1% | |
Middle East | ||
General Footnote Disclosures [Line Items] | ||
Percentage of future revenue | 2% | |
UKRAINE | ||
General Footnote Disclosures [Line Items] | ||
Percentage of future revenue | 1% |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 05, 2024 | Apr. 30, 2023 | Feb. 04, 2024 | ||
Deferred Revenue [Line Items] | ||||
Long-term deferred revenue liabilities (included in Other Liabilities) | $ 8.7 | $ 11.4 | $ 9.4 | |
Movement in Deferred Revenue [Roll Forward] | ||||
Deferred revenue, beginning balance | 55.5 | 54.3 | ||
Net additions to deferred revenue during the period | 39.8 | 44.8 | ||
Reductions in deferred revenue for revenue recognized during the period | [1] | (40) | (39.5) | |
Deferred revenue, ending balance | $ 55.3 | $ 59.6 | ||
[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. |
REVENUE Revenue, Remaining Perf
REVENUE Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | May 05, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 759 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-05-06 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 219.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
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 | $ 229.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-02-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 309.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
DIVESTITURES (Details)
DIVESTITURES (Details) - USD ($) $ in Millions | Nov. 27, 2023 | May 05, 2024 |
Business Divestiture [Line Items] | ||
Proceeds from sale of Warner's, Olga and True &Co. women's intimates businesses | $ 160 | |
Net proceeds from sale of Warner's, Olga and True&Co. women's intimates businesses | 155.6 | |
Disposal Group, Including Discontinued Operation, Earnout | $ 10 | |
Heritage Brands Intimates Transaction | ||
Business Divestiture [Line Items] | ||
Net carrying value | 140.3 | |
Heritage Brands Intimates Transaction | Other gain | ||
Business Divestiture [Line Items] | ||
Other gain | 15.3 | |
Heritage Brands Intimates Transaction | Other gain | Heritage Brands Wholesale [Member] | ||
Business Divestiture [Line Items] | ||
Disposal Group, Including Discontinued Operation, Earnout | $ 10 | |
Heritage Brands Intimates Transaction | Inventories | ||
Business Divestiture [Line Items] | ||
Net carrying value | 44.5 | |
Heritage Brands Intimates Transaction | Tradenames | ||
Business Divestiture [Line Items] | ||
Net carrying value | $ 95.8 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2024 | Feb. 04, 2024 | Apr. 30, 2023 | |
Goodwill and Other Intangible Assets [Line Items] | |||
Goodwill, Total | $ 2,315.2 | $ 2,322.1 | $ 2,357.7 |
Tradename, Carrying Amount | 2,596.9 | 2,599.1 | $ 2,710.3 |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 3,420.5 | ||
Accumulated impairment losses, beginning of period | (1,098.4) | ||
Goodwill, net, beginning of period | 2,322.1 | ||
Currency translation | (6.9) | ||
Goodwill, gross, end of period | 3,413.6 | ||
Accumulated impairment losses, end of period | (1,098.4) | ||
Goodwill, net, end of period | 2,315.2 | ||
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 | 403.9 | 406.1 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 877.4 | ||
Accumulated impairment losses, beginning of period | (471.3) | ||
Goodwill, net, beginning of period | 406.1 | ||
Currency translation | (2.2) | ||
Goodwill, gross, end of period | 875.2 | ||
Accumulated impairment losses, end of period | (471.3) | ||
Goodwill, net, end of period | 403.9 | ||
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 | 1,553.6 | $ 1,558.3 | |
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning of period | 1,558.3 | ||
Accumulated impairment losses, beginning of period | 0 | ||
Goodwill, net, beginning of period | 1,558.3 | ||
Currency translation | (4.7) | ||
Goodwill, gross, end of period | 1,553.6 | ||
Accumulated impairment losses, end of period | 0 | ||
Goodwill, net, end of period | $ 1,553.6 |
RETIREMENT AND BENEFIT PLANS (D
RETIREMENT AND BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | |
May 05, 2024 USD ($) | Apr. 30, 2023 USD ($) | |
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 | |
Vesting Period Non-Contributory Defined Benefit Pension Plans | five years | |
Service cost | $ 3.7 | $ 5 |
Interest cost | 7.2 | 7.2 |
Expected return on plan assets | (8.3) | (8.5) |
Total | $ 2.6 | 3.7 |
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 | |
Service cost | $ 0.2 | 0.4 |
Interest cost | 0.6 | 0.7 |
Expected return on plan assets | 0 | 0 |
Total | $ 0.8 | $ 1.1 |
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 |
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 | 3 Months Ended | |||||
May 05, 2024 USD ($) | Apr. 30, 2023 USD ($) | 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 | $ 72.1 | |||||
Repayment of 2022 facilities | $ 3 | $ 3 | ||||
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 | $ 3 | $ 3 | ||||
Lines of Credit, Foreign Facilities [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, amount outstanding | 0 | |||||
Line of credit facility, maximum borrowing capacity | 193.5 | |||||
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 | May 05, 2024 USD ($) | [1] |
Debt Instrument [Line Items] | ||
Remainder of 2024 | $ 8.9 | |
2025 | 511.9 | |
2026 | 11.9 | |
2027 | 1,072.4 | |
2028 | 0 | |
2029 | $ 565 | |
[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 | 3 Months Ended | |||||||||
Apr. 15, 2024 USD ($) | Apr. 15, 2024 EUR (€) | May 05, 2024 USD ($) | Apr. 30, 2023 USD ($) | May 05, 2024 EUR (€) | Apr. 25, 2024 USD ($) | Feb. 04, 2024 USD ($) | Nov. 15, 2023 USD ($) | Dec. 09, 2022 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 | $ 2,157.8 | $ 2,305 | $ 2,169.2 | |||||||
Long-term Debt, Current Maturities | 11.9 | 112 | 577.5 | |||||||
Long-term Debt, Excluding Current Maturities | 2,145.9 | 2,193 | 1,591.7 | |||||||
Letters of credit outstanding, amount | 72.1 | |||||||||
Repayment of 2022 facilities | $ 3 | 3 | ||||||||
Senior debenture due 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | 7.75% | ||||||||
Senior Notes | $ 0 | 99.9 | 0 | |||||||
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] | $ 0 | 574.6 | 565.7 | ||||||
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] | $ 642.3 | 654.4 | 643.7 | ||||||
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 | $ 498.5 | 497.3 | 498.2 | |||||||
Debt instrument, face amount | $ 500 | |||||||||
Senior Notes Due 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | ||||||||
Senior Notes | [1] | $ 559.2 | 0 | 0 | ||||||
Debt instrument, face amount | $ 525 | € 525 | ||||||||
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] | $ 457.8 | 478.8 | $ 461.6 | ||||||
Repayment of 2022 facilities | $ 3 | $ 3 | ||||||||
2022 Facilities Euro Term Loan A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unsecured Debt | € | € 440.6 | |||||||||
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% | |||||||||
Senior Notes Due 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payments of Debt Issuance Costs | $ 5.7 | € 5.4 | ||||||||
[1]The carrying amount of the euro-denominated Term Loan A facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Income Taxes [Line Items] | ||
Effective income tax rate | 19.20% | 23.10% |
Income tax expense | $ 36 | $ 40.8 |
Income (loss) before taxes | $ 187.4 | $ 176.8 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) € in Millions, $ in Millions | 3 Months Ended | ||||||
May 05, 2024 USD ($) | Apr. 30, 2023 USD ($) | May 05, 2024 EUR (€) | Apr. 25, 2024 USD ($) | Apr. 15, 2024 USD ($) | Feb. 04, 2024 USD ($) | ||
Derivative [Line Items] | |||||||
Cost of goods sold | $ 753.2 | $ 907.6 | |||||
Selling, general and administrative expenses | 1,017.3 | 1,064 | |||||
Interest expense | $ 23.3 | 25.3 | |||||
Percentage of long-term debt at fixed interest rates | 80% | 80% | |||||
Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 20.1 | 11.8 | $ 21.5 | ||||
Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 1.8 | 0.1 | 0.5 | ||||
Accrued Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 3.1 | 29.7 | 3.5 | ||||
Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0.1 | 1.3 | 1.7 | ||||
Foreign Currency Forward Exchange Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 1,264.6 | ||||||
Contracts designated as hedging instrument [Member] | Derivative Contract | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive (Loss) Income, Designated Hedges, Gain (Loss) before Reclassification and Tax | 12.8 | (10.6) | |||||
Derivative Instruments, Gain Reclassified from AOCL into Income, Effective Portion, Net | 7.4 | 4.8 | |||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0.5 | 0.4 | 1.9 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Accrued Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0.9 | 5.7 | 1.1 | ||||
Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | ||||
Cost of goods sold [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Net Gain Reclassification from AOCL to income, Estimated Net Amount to be Transferred | $ 20.7 | ||||||
Derivative Instruments, Net Gain Reclassification from AOCL to expense, Estimate of Time to Transfer | 12 months | ||||||
Selling, General and Administrative Expenses [Member] | Undesignated contracts [Member] | Foreign Currency Forward Exchange Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss) Recognized in Expense, Net | [1] | $ 1.4 | (1) | ||||
Cash Flow Hedging [Member] | Contracts designated as hedging instrument [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive (Loss) Income, Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 7.4 | 2.4 | |||||
Derivative Instruments, Gain Reclassified from AOCL into Income, Effective Portion, Net | $ 5.7 | $ 4.8 | |||||
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 | |||||
Cash Flow Hedging [Member] | Contracts designated as hedging instrument [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 15 | $ 11.4 | 13.2 | ||||
Cash Flow Hedging [Member] | Contracts designated as hedging instrument [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0.7 | 0.1 | 0.5 | ||||
Cash Flow Hedging [Member] | Contracts designated as hedging instrument [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Accrued Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 2.2 | 24 | 2.4 | ||||
Cash Flow Hedging [Member] | Contracts designated as hedging instrument [Member] | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0.1 | 1.3 | 0.4 | ||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Euro Denominated Senior Notes | |||||||
Derivative [Line Items] | |||||||
Other Comprehensive (Loss) Income, Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 3.1 | (13) | |||||
Long-term Debt, Fair Value | 1,190.2 | 1,203.8 | 1,201.6 | ||||
Long-term Debt, Carrying Amount | 1,201.5 | 1,229 | 1,209.4 | ||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | € | € 457.2 | ||||||
Other Comprehensive (Loss) Income, Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 2.3 | 0 | |||||
Derivative Instruments, Gain Reclassified from AOCL into Income, Effective Portion, Net | $ 1.7 | $ 0 | |||||
Derivative Instrument, Gain Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | |||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | Receive Fixed Interest Rate Member | |||||||
Derivative [Line Items] | |||||||
Derivative, Average Fixed Interest Rate | 1.405% | 1.405% | |||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | Pay Fixed Interest Rate | |||||||
Derivative [Line Items] | |||||||
Derivative, Fixed Interest Rate | 0% | 0% | |||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | Other Current Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | $ 4.6 | $ 0 | 6.4 | ||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | Other Assets [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 1.1 | 0 | 0 | ||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | Accrued Expenses [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | ||||
Net Investment Hedging [Member] | Contracts designated as hedging instrument [Member] | Currency Swap | Other Liabilities [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 1.3 | ||||
Senior notes due 2027 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | € | € 600 | ||||||
Long-term Debt, Carrying Amount | [2] | $ 642.3 | 654.4 | 643.7 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.125% | 3.125% | |||||
Senior notes due 2024 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | € 525 | $ 525 | |||||
Long-term Debt, Carrying Amount | [2] | $ 0 | 574.6 | 565.7 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.625% | 3.625% | |||||
Senior notes due 2025 | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | $ 500 | ||||||
Long-term Debt, Carrying Amount | $ 498.5 | 497.3 | 498.2 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | |||||
Senior Notes Due 2029 | |||||||
Derivative [Line Items] | |||||||
Debt instrument, face amount | € 525 | $ 525 | |||||
Long-term Debt, Carrying Amount | [2] | $ 559.2 | $ 0 | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | 4.125% | |||||
[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 facility and the senior unsecured euro notes includes the impact of changes in the exchange rate of the United States dollar against the euro. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | May 05, 2024 | Feb. 04, 2024 | Apr. 30, 2023 |
Reported Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 376.2 | $ 707.6 | $ 373.8 |
Short-term borrowings | 0 | 0 | 17.3 |
Long-term debt (including portion classified as current), carrying amount | 2,157.8 | 2,169.2 | 2,305 |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents, fair value | 376.2 | 707.6 | 373.8 |
Short-term borrowings, fair value | 0 | 0 | 17.3 |
Long-term debt (including portion classified as current), fair value | 2,141.7 | 2,159.5 | 2,278 |
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 | 16.2 | 15.6 | 11.9 |
Rabbi trust assets | 12.7 | 9.9 | 9 |
Total Assets, Fair Value | 34.6 | 31.9 | 20.9 |
Foreign currency forward exchange contracts, liabilities | 3.2 | 3.9 | 31 |
Total Liabilities | 3.2 | 5.2 | 31 |
Estimate of Fair Value Measurement [Member] | Fair Value, Recurring [Member] | Currency Swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cross-currency swap contracts (net investment hedges) | 5.7 | 6.4 | |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 0 | 1.3 | |
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 | 0.8 | 0.9 |
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 | 11.7 | 9.1 | 8.1 |
Cash and cash equivalents | 376.2 | 707.6 | 373.8 |
Short-term borrowings | 0 | 0 | 17.3 |
Long-term debt (including portion classified as current), carrying amount | 2,157.8 | 2,169.2 | 2,305 |
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||
Goodwill | 2,315.2 | 2,322.1 | 2,357.7 |
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 | 16.2 | 15.6 | 11.9 |
Total Assets, Fair Value | 21.9 | 22 | 11.9 |
Foreign currency forward exchange contracts, liabilities | 3.2 | 3.9 | 31 |
Total Liabilities | 3.2 | 5.2 | 31 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Currency Swap | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cross-currency swap contracts (net investment hedges) | 5.7 | 6.4 | |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 0 | 1.3 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Rabbi trust assets | 12.7 | 9.9 | 9 |
Total Assets, Fair Value | 12.7 | 9.9 | $ 9 |
Calvin Klein North America [Member] | |||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||
Goodwill | 331.9 | 331.9 | |
Tommy Hilfiger North America [Member] | |||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||
Goodwill | 25.8 | 25.8 | |
Tommy Hilfiger International [Member] | |||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||
Goodwill | 1,553.6 | 1,558.3 | |
Calvin Klein International [Member] | |||
Fair Value Measurements, Nonrecurring Value Measurement [Abstract] | |||
Goodwill | $ 403.9 | $ 406.1 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Incentive Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 10.5 | $ 13.1 |
Recognized income tax benefits associated with stock-based compensation expense | $ 1.4 | $ 1.6 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) $ / shares in Units, shares in Thousands | 3 Months Ended |
May 05, 2024 USD ($) $ / shares shares | |
Equity Option [Member] | |
Service-based stock option activity [Roll Forward] | |
Service-based stock options, outstanding, beginning of period | shares | 513 |
Service-based stock options, granted | shares | 58 |
Service-based stock options, exercised | shares | 57 |
Service-based stock options, forfeited/expired | shares | 4 |
Service-based stock options, outstanding, end of period | shares | 510 |
Service-based stock options, outstanding, weighted average price per option, beginning of period | $ 94.05 |
Service-based stock options, granted, weighted average price per option | 109.75 |
Service-based stock options, exercised, weighted average price per option | 122.25 |
Service-based stock options, forfeited/expired, weighted average price per option | 124.53 |
Service-based stock options, outstanding, weighted average price per option, end of period | $ 92.44 |
Black-Scholes-Merton Model [Member] | |
Assumptions used to estimate fair value of stock based awards [Abstract] | |
Weighted average risk-free interest rate | 4.33% |
Weighted average expected stock option term (in years) | 6 years 3 months |
Weighted average Company volatility | 53.32% |
Expected annual dividends per share | $ | $ 0.15 |
Weighted average grant date fair value per stock option | $ 60.96 |
STOCK-BASED COMPENSATION - RSU
STOCK-BASED COMPENSATION - RSU and Performance Share Activity (Details) $ / shares in Units, shares in Thousands | 3 Months Ended |
May 05, 2024 USD ($) $ / shares shares | |
Restricted Stock Units (RSUs) [Member] | |
Non-vested activity [Roll Forward] | |
Other than options, non-vested number, beginning of period | shares | 1,175 |
Other than options, granted number | shares | 472 |
Other than options, vested number | shares | 314 |
Other than options, forfeited number | shares | 41 |
Other than options, non-vested number, end of period | shares | 1,292 |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 80.79 |
Other than options, granted, weighted average grant date fair value | 109.75 |
Other than options, vested, weighted average grant date fair value | 81.90 |
Other than options, forfeited, weighted average grant date fair value | 82.94 |
Other than options, non-vested, weighted average grant date fair value, end of period | $ 91.02 |
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 | shares | 236 |
Other than options, granted number | shares | 127 |
Other than options, reduction due to market conditions achieved below target | shares | 1 |
Other than options, vested number | shares | 55 |
Other than options, forfeited number | shares | 0 |
Other than options, non-vested number, end of period | shares | 307 |
Other than options, non-vested, weighted average grant date fair value, beginning of period | $ 102.29 |
Other than options, granted, weighted average grant date fair value | 122.76 |
Other than options, reduction due to market conditions achieved below target, weighted average grant date fair value | 157.70 |
Other than options, vested, weighted average grant date fair value | 124.12 |
Other than options, forfeited, weighted average grant date fair value | 0 |
Other than options, non-vested, weighted average grant date fair value, end of period | $ 106.68 |
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% |
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 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 2024 | |
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% |
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 | 4.71% |
Weighted average Company volatility | 48.28% |
Expected annual dividends per share | $ | $ 0.15 |
Restriction of Liquidity Discount | 4.40% |
Non-vested activity [Roll Forward] | |
Other than options, granted, weighted average grant date fair value | $ 138.12 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 05, 2024 | Apr. 30, 2023 | |||
Net gain (loss) on net investment hedges, net of tax | $ 2.8 | $ (9.8) | ||
Change in accumulated other comprehensive loss | ||||
Balance at beginning of year | (753.6) | |||
Other comprehensive (loss) income | (10.6) | (28.5) | ||
Balance at end of period | (764.2) | (741.6) | ||
Foreign currency translation adjustments | ||||
Net gain (loss) on net investment hedges, net of tax | 4.1 | (9.8) | ||
Change in accumulated other comprehensive loss | ||||
Balance at beginning of year | (768.7) | (710.1) | ||
Other comprehensive (loss) income, before reclassifications, net of tax | [1] | (10.7) | (26.5) | [2] |
Less: Amounts reclassified from AOCL, net of tax | 1.3 | 0 | ||
Other comprehensive (loss) income | (12) | (26.5) | ||
Balance at end of period | (780.7) | (736.6) | ||
Net unrealized and realized gain (loss) on effective cash flow hedges | ||||
Change in accumulated other comprehensive loss | ||||
Balance at beginning of year | 15.1 | (3) | ||
Other comprehensive (loss) income, before reclassifications, net of tax | 5.5 | 1.4 | ||
Less: Amounts reclassified from AOCL, net of tax | 4.1 | 3.4 | ||
Other comprehensive (loss) income | 1.4 | (2) | ||
Balance at end of period | 16.5 | (5) | ||
Total | ||||
Net gain (loss) on net investment hedges, net of tax | 2.8 | (9.8) | ||
Change in accumulated other comprehensive loss | ||||
Balance at beginning of year | (753.6) | (713.1) | ||
Other comprehensive (loss) income, before reclassifications, net of tax | (5.2) | (25.1) | ||
Less: Amounts reclassified from AOCL, net of tax | 5.4 | 3.4 | ||
Other comprehensive (loss) income | (10.6) | (28.5) | ||
Balance at end of period | $ (764.2) | $ (741.6) | ||
[1] Foreign currency translation adjustments included a net gain (loss) on net investment hedges of $4.1 million and $(9.8) million during the thirteen weeks ended May 5, 2024 and April 30, 2023, respectively. Unfavorable foreign currency translation adjustments were principally driven by a strengthening of the United States dollar against certain currencies in the Asia-Pacific region (primarily the strengthening of the United States dollar against the Australian dollar), partially offset by a weakening of the United States dollar against the euro. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Realized gain on effective cash flow hedges | ||
Reclassification from AOCL, Current Period, Net of Tax | $ 4.1 | $ 3.4 |
Realized gain on effective cash flow hedges | Income tax expense [Member] | ||
Reclassification from AOCL, Current Period, Tax | 1.6 | 1.4 |
Realized gain on effective cash flow hedges | Foreign Currency Forward Exchange Contracts (Inventory Purchases) [Member] | Cost of goods sold [Member] | ||
Reclassification from AOCL, Current Period, before Tax | 5.7 | 4.8 |
Foreign currency translation adjustments | ||
Reclassification from AOCL, Current Period, Net of Tax | 1.3 | 0 |
Foreign currency translation adjustments | Income tax expense [Member] | ||
Reclassification from AOCL, Current Period, Tax | 0.4 | 0 |
Foreign currency translation adjustments | Currency Swap | Interest expense [Member] | Net Investment Hedging [Member] | ||
Reclassification from AOCL, Current Period, before Tax | $ 1.7 | $ 0 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
May 05, 2024 | Apr. 30, 2023 | Mar. 27, 2024 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Repurchased | 1,942,724 | 53,950 | |
Common Stock, Dividends, Per Share, Declared | $ 0.075 | $ 0.0375 | |
Inflation Reduction Act Excise Tax on Share Repurchases | 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 | $ 5,000 | $ 2,000 | |
Stock Repurchase Program, Number of Shares Repurchased | 1,800,000 | ||
Stock Repurchase Program, Amount Purchased During Period | $ 200 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2,074 |
EXIT ACTIVITY COSTS (Details)
EXIT ACTIVITY COSTS (Details) - 2022 cost savings initiative - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
May 05, 2024 | Feb. 04, 2024 | ||
Restructuring Reserve [Roll Forward] | |||
Restructuring Annual Cost Savings | $ 100 | ||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 10% | ||
Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | $ 81.5 | ||
Restructuring Reserve [Roll Forward] | |||
Total liability, beginning of period | $ 20.4 | ||
Exit activity costs paid | 10.3 | ||
Total liability, end of period | $ 10.1 | 20.4 | |
Tommy Hilfiger North America [Member] | Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 17.4 | ||
Tommy Hilfiger International [Member] | Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 19.8 | ||
Calvin Klein North America [Member] | Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 13.7 | ||
Calvin Klein International [Member] | Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 14.3 | ||
Heritage Brands Wholesale [Member] | Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | 10.4 | ||
Corporate Segment [Member] | Severance, termination benefits and other employee costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Cumulative costs incurred to date | [1] | $ 5.9 | |
[1]Corporate expenses are not allocated to any reportable segment. |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 151.4 | $ 136 |
Weighted average common shares outstanding for basic net income per common share | 57.5 | 62.7 |
Weighted average impact of dilutive securities | 0.9 | 0.8 |
Total shares for diluted net income per common share | 58.4 | 63.5 |
Basic net income per common share | $ 2.63 | $ 2.17 |
Diluted net income per common share | $ 2.59 | $ 2.14 |
Weighted average potentially dilutive securities | 0.4 | 1 |
NET INCOME PER COMMON SHARE - D
NET INCOME PER COMMON SHARE - DILUTED (Details) - shares shares in Millions | May 05, 2024 | Apr. 30, 2023 |
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 | 0.3 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 05, 2024 | Apr. 30, 2023 | |||
Revenue: | ||||
Revenues | $ 1,951.9 | $ 2,157.9 | ||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | [1] | 205.1 | 198.8 | |
Other gain | (10) | 0 | ||
Disposal Group, Including Discontinued Operation, Earnout | 10 | |||
Net sales | ||||
Revenue: | ||||
Revenues | 1,850.2 | 2,051.1 | ||
Royalty revenue | ||||
Revenue: | ||||
Revenues | 81.2 | 84.7 | ||
Advertising and other revenue | ||||
Revenue: | ||||
Revenues | 20.5 | 22.1 | ||
Tommy Hilfiger North America [Member] | ||||
Revenue: | ||||
Revenues | 296.7 | 291.5 | ||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | 24.4 | 2.3 | ||
Tommy Hilfiger North America [Member] | Net sales | ||||
Revenue: | ||||
Revenues | 271.4 | 266.7 | ||
Tommy Hilfiger North America [Member] | Royalty revenue | ||||
Revenue: | ||||
Revenues | 20.7 | 20.3 | ||
Tommy Hilfiger North America [Member] | Advertising and other revenue | ||||
Revenue: | ||||
Revenues | 4.6 | 4.5 | ||
Tommy Hilfiger International [Member] | ||||
Revenue: | ||||
Revenues | 716.6 | 832.8 | ||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | 76.4 | 126.3 | ||
Tommy Hilfiger International [Member] | Net sales | ||||
Revenue: | ||||
Revenues | 700 | 812.8 | ||
Tommy Hilfiger International [Member] | Royalty revenue | ||||
Revenue: | ||||
Revenues | 13.3 | 15.7 | ||
Tommy Hilfiger International [Member] | Advertising and other revenue | ||||
Revenue: | ||||
Revenues | 3.3 | 4.3 | ||
Calvin Klein North America [Member] | ||||
Revenue: | ||||
Revenues | 285.3 | 274.3 | ||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | 36.6 | 2.2 | ||
Calvin Klein North America [Member] | Net sales | ||||
Revenue: | ||||
Revenues | 239.7 | 227.7 | ||
Calvin Klein North America [Member] | Royalty revenue | ||||
Revenue: | ||||
Revenues | 35.7 | 35.7 | ||
Calvin Klein North America [Member] | Advertising and other revenue | ||||
Revenue: | ||||
Revenues | 9.9 | 10.9 | ||
Calvin Klein International [Member] | ||||
Revenue: | ||||
Revenues | 601.5 | 613.4 | ||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | 96.4 | 100.4 | ||
Calvin Klein International [Member] | Net sales | ||||
Revenue: | ||||
Revenues | 587.4 | 598.3 | ||
Calvin Klein International [Member] | Royalty revenue | ||||
Revenue: | ||||
Revenues | 11.4 | 12.8 | ||
Calvin Klein International [Member] | Advertising and other revenue | ||||
Revenue: | ||||
Revenues | 2.7 | 2.3 | ||
Heritage Brands Wholesale [Member] | ||||
Revenue: | ||||
Revenues | 51.8 | 145.9 | ||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | 16.3 | [2] | 15 | |
Heritage Brands Wholesale [Member] | Net sales | ||||
Revenue: | ||||
Revenues | 51.7 | 145.6 | ||
Heritage Brands Wholesale [Member] | Royalty revenue | ||||
Revenue: | ||||
Revenues | 0.1 | 0.2 | ||
Heritage Brands Wholesale [Member] | Advertising and other revenue | ||||
Revenue: | ||||
Revenues | 0 | 0.1 | ||
Corporate Segment [Member] | ||||
Earnings before interest and taxes: | ||||
Income (loss) before interest and taxes | [3] | $ (45) | $ (47.4) | |
[1] Income before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. |
Revenue by Distribution Channel
Revenue by Distribution Channel (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,951.9 | $ 2,157.9 |
Net sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,850.2 | 2,051.1 |
Net sales | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,004.3 | 1,214.3 |
Net sales | Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 845.9 | 836.8 |
Net sales | Sales Channel, Sales to Owned and Operated Retail Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 697.5 | 678.1 |
Net sales | Sales Channel, Sales to Owned and Operated Digital Retail Customers | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 148.4 | 158.7 |
Royalty revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 81.2 | 84.7 |
Advertising and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 20.5 | $ 22.1 |
RECENT ACCOUNTING GUIDANCE Rece
RECENT ACCOUNTING GUIDANCE Recent Accounting Guidance (Details) - USD ($) $ in Millions | May 05, 2024 | Feb. 04, 2024 | Apr. 30, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained Earnings | $ (5,554.4) | $ (5,407.3) | $ (4,886.7) |
OTHER COMMENTS Warehousing and
OTHER COMMENTS Warehousing and Distribution (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 05, 2024 | Apr. 30, 2023 | |
Warehousing and Distribution [Line Items] | ||
Warehousing and distribution expenses | $ 76.5 | $ 89.9 |
OTHER COMMENTS Allowance for Cr
OTHER COMMENTS Allowance for Credit Losses (Details) - USD ($) $ in Millions | May 05, 2024 | Feb. 04, 2024 | Apr. 30, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for credit losses on trade receivables | $ 43.9 | $ 41.1 | $ 44.7 |
OTHER COMMENTS Supplier Finance
OTHER COMMENTS Supplier Finance Program (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 05, 2024 | Apr. 30, 2023 | Feb. 04, 2024 | |
Supplier Finance Program Disclosure [Line Items] | |||
Supplier Finance Program, Obligation, Settlement | $ 449.1 | $ 555.3 | |
Supplier Finance Program, Obligation, Current | $ 347.7 | $ 395.5 | $ 423.4 |
Supplier Finance Program, Payment Timing, Period | 90 days |