
PART I - FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements and management's discussion and analysis of PVH Corp.'s financial condition and results of operations Item 1 - Financial Statements This section presents the unaudited consolidated financial statements of PVH Corp., including the statements of operations, comprehensive income, balance sheets, cash flows, and changes in stockholders' equity, along with detailed notes explaining accounting policies, significant transactions, and financial performance for the reported periods Consolidated Statements of Operations This statement details the company's revenues, expenses, and net income over specific reporting periods, highlighting operational profitability and earnings per share Thirteen Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | Revenue | $2,167.2 | $2,074.3 | $92.9 | 4.5% | | Gross profit | $1,250.8 | $1,245.9 | $4.9 | 0.4% | | Selling, general and administrative expenses | $1,128.9 | $1,083.3 | $45.6 | 4.2% | | Income (loss) before interest and taxes | $133.2 | $173.9 | $(40.7) | -23.4% | | Net income | $224.2 | $158.0 | $66.2 | 41.9% | | Basic net income per common share | $4.66 | $2.83 | $1.83 | 64.7% | | Diluted net income per common share | $4.63 | $2.80 | $1.83 | 65.4% | Twenty-Six Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | :--------- | | Revenue | $4,150.8 | $4,026.2 | $124.6 | 3.1% | | Gross profit | $2,412.5 | $2,444.6 | $(32.1) | -1.3% | | Selling, general and administrative expenses | $2,152.8 | $2,100.6 | $52.2 | 2.5% | | Goodwill and other intangible asset impairments | $479.5 | $— | $479.5 | NM | | Income (loss) before interest and taxes | $(199.0) | $379.0 | $(578.0) | NM | | Net income | $179.4 | $309.4 | $(130.0) | -42.0% | | Basic net income per common share | $3.62 | $5.46 | $(1.84) | -33.7% | | Diluted net income per common share | $3.59 | $5.39 | $(1.80) | -33.4% | Consolidated Statements of Comprehensive Income This statement presents net income alongside other comprehensive income items, such as foreign currency translation adjustments, to arrive at total comprehensive income Thirteen Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Net income | $224.2 | $158.0 | $66.2 | | Foreign currency translation adjustments | $64.5 | $12.7 | $51.8 | | Total other comprehensive income (loss) | $13.7 | $(10.6) | $24.3 | | Comprehensive income | $237.9 | $147.4 | $90.5 | Twenty-Six Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Net income | $179.4 | $309.4 | $(130.0) | | Foreign currency translation adjustments | $298.1 | $(2.1) | $300.2 | | Total other comprehensive income (loss) | $100.1 | $(21.2) | $121.3 | | Comprehensive income | $279.5 | $288.2 | $(8.7) | Consolidated Balance Sheets This statement provides a snapshot of the company's assets, liabilities, and stockholders' equity at specific points in time, reflecting its financial position Balance Sheet Highlights (August 3, 2025 vs February 2, 2025 vs August 4, 2024) | Metric | Aug 3, 2025 (Millions) | Feb 2, 2025 (Millions) | Aug 4, 2024 (Millions) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Cash and cash equivalents | $248.8 | $748.0 | $610.0 | | Total Current Assets | $3,299.3 | $3,487.6 | $3,414.4 | | Total Assets | $11,627.6 | $11,033.2 | $11,237.7 | | Total Current Liabilities | $2,410.3 | $2,741.8 | $2,760.1 | | Long-Term Debt | $2,256.0 | $1,579.9 | $1,668.2 | | Total Stockholders' Equity | $4,866.6 | $5,140.5 | $5,191.8 | Consolidated Statements of Cash Flows This statement categorizes cash inflows and outflows into operating, investing, and financing activities, illustrating changes in the company's cash position Twenty-Six Weeks Ended August 3, 2025 vs August 4, 2024 | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Net cash provided by operating activities | $141.7 | $225.7 | $(84.0) | | Net cash used by investing activities | $(59.0) | $(72.0) | $13.0 | | Net cash used by financing activities | $(593.5) | $(250.8) | $(342.7) | | Decrease in cash and cash equivalents | $(499.2) | $(97.6) | $(401.6) | | Cash and cash equivalents at end of period | $248.8 | $610.0 | $(361.2) | Consolidated Statements of Changes in Stockholders' Equity This statement tracks changes in each component of stockholders' equity, including common stock, retained earnings, and treasury stock, over the reporting period Stockholders' Equity Changes (Twenty-Six Weeks Ended August 3, 2025) | Component | Feb 2, 2025 (Millions) | Aug 3, 2025 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Common Stock ($1 par Value) | $89.1 | $89.6 | $0.5 | | Additional Paid-In Capital | $3,374.1 | $3,251.0 | $(123.1) | | Retained Earnings | $5,997.2 | $6,172.7 | $175.5 | | Accumulated Other Comprehensive Loss | $(856.8) | $(756.7) | $100.1 | | Treasury Stock | $(3,463.1) | $(3,890.0) | $(426.9) | | Total Stockholders' Equity | $5,140.5 | $4,866.6 | $(273.9) | Stockholders' Equity Changes (Twenty-Six Weeks Ended August 4, 2024) | Component | Feb 4, 2024 (Millions) | Aug 4, 2024 (Millions) | Change ($M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | | Common Stock ($1 par Value) | $88.6 | $89.0 | $0.4 | | Additional Paid-In Capital | $3,313.3 | $3,347.1 | $33.8 | | Retained Earnings | $5,407.3 | $5,712.4 | $305.1 | | Accumulated Other Comprehensive Loss | $(753.6) | $(774.8) | $(21.2) | | Treasury Stock | $(2,936.7) | $(3,181.9) | $(245.2) | | Total Stockholders' Equity | $5,118.9 | $5,191.8 | $72.9 | Notes to Consolidated Financial Statements This section provides detailed explanations and additional information supporting the amounts presented in the consolidated financial statements Note 1. GENERAL This note outlines the company's business operations, recent segment changes, and the impact of the macroeconomic environment on its performance - PVH Corp. changed its reportable segments to be region-focused (EMEA, Americas, APAC, and Licensing) effective February 3, 2025, to align with changes in its business and organizational structure25 - The macroeconomic environment, including inflation, tariffs, elevated interest rates, and recession risks, continues to create a complex and challenging retail environment, particularly in North America, negatively impacting consumer demand28 - Recently enacted tariffs on goods imported into the United States are expected to have a negative impact on the company's full-year 2025 results of operations, primarily in the second half of the year29 Note 2. REVENUE This note details the company's revenue recognition policies, sources of revenue, and information regarding deferred revenue and contractual minimum fees - Revenue is primarily generated from sales of finished products through wholesale and retail operations, and royalty and advertising revenue from licensing trademarks to third parties30 - Contractual minimum fees on unsatisfied license agreements totaled $693.2 million as of August 3, 2025, with $123.2 million expected to be recognized as revenue during the remainder of 2025, $203.9 million in 2026, and $366.1 million thereafter31 Deferred Revenue Balance | Metric | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | | :-------------------------------- | :--------------------- | :--------------------- | | Deferred revenue balance at beginning of period | $55.3 | $55.5 | | Net additions to deferred revenue during the period | $41.6 | $52.3 | | Reductions in deferred revenue for revenue recognized during the period | $(46.1) | $(46.8) | | Deferred revenue balance at end of period | $50.8 | $61.0 | Note 3. INVENTORIES This note describes the company's inventory valuation methods and the types of inventory held, primarily finished goods - Inventories, principally finished goods, are stated at the lower of cost or net realizable value, with cost determined using the first-in, first-out (FIFO) method for North America wholesale and certain Asia inventories, and the weighted average cost method for all other inventories34 Note 4. ASSETS HELD FOR SALE This note discusses assets classified as held for sale, including a warehouse and distribution center, and the company's plans for their disposition - The company committed to closing its owned warehouse and distribution center in Jonesville, NC, classifying the building and related assets as held for sale with a carrying value of $16.7 million as of August 3, 202535 - The sale is intended to occur towards the end of 2025 or during the first quarter of 2026, and depreciation ceased in the first quarter of 20253536 Note 5. DIVESTITURES This note provides details on the sale of certain women's intimates businesses, including net proceeds and recognized gains from the transactions - The company completed the sale of its Warner's, Olga, and True&Co. women's intimates businesses on November 27, 2023, for net proceeds of $155.6 million37 - A gain of $15.3 million was recorded in Q4 2023, and an incremental gain of $10.0 million was recorded in Q1 2024 due to the accelerated realization of an earnout from the agreement38 Note 6. GOODWILL AND OTHER INTANGIBLE ASSETS This note explains the noncash impairment charges recorded for goodwill and reacquired license rights, primarily due to increased discount rates - The company recorded $426.0 million of noncash goodwill impairment charges during the first quarter of 2025, fully impairing the goodwill balances in the Americas ($7.6 million) and APAC ($418.4 million) segments42 - An additional $53.5 million of noncash impairment charges were recorded for reacquired perpetual license rights in Australia, writing down the asset from $190.8 million to $137.3 million46 - The impairments were primarily due to a significant increase in discount rates, which incorporated elevated risk premiums due to macroeconomic and geopolitical factors4246 Note 7. RETIREMENT AND BENEFIT PLANS This note describes the company's defined benefit pension plans and supplemental plans, including recent changes and recognized net benefit costs - The company operates two noncontributory qualified defined benefit pension plans and three noncontributory unfunded non-qualified supplemental defined benefit pension plans4950 - The Board of Directors approved changes to freeze the pensionable compensation and credited service amounts for most participants, effective June 30, 202451 Net Benefit Cost Recognized (Twenty-Six Weeks Ended) | Plan | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | | :---------------- | :--------------------- | :--------------------- | | Pension Plans | $2.9 | $4.8 | | SERP Plans | $1.3 | $1.7 | Note 8. DEBT This note details the company's various debt instruments, including senior notes and credit facilities, and changes in long-term debt balances - The company had no revolving borrowings outstanding under its senior unsecured credit facilities or short-term lines of credit as of August 3, 20255556 - A $250.0 million unsecured delayed draw term loan facility (April 4 facility) was entered into, maturing April 3, 2026, with the entire amount remaining available for borrowing as of August 3, 20255860 - Issued $500.0 million principal amount of 5 1/2% senior notes due June 13, 2030, using the net proceeds to repay the $500.0 million principal amount of 4 5/8% senior notes due July 10, 202577 Long-Term Debt Carrying Amounts (Millions) | Debt Type | Aug 3, 2025 | Feb 2, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | :---------- | | Senior unsecured Term Loan A facility due 2027 | $477.9 | $432.7 | $461.2 | | 4 5/8% senior unsecured notes due 2025 | $— | $499.4 | $498.8 | | 3 1/8% senior unsecured euro notes due 2027 | $692.8 | $619.1 | $651.5 | | 4 1/8% senior unsecured euro notes due 2029 | $603.9 | $539.5 | $567.5 | | 5 1/2% senior unsecured notes due 2030 | $494.2 | $— | $— | | Total | $2,268.8 | $2,090.7 | $2,179.0 | | Less: Current portion of long-term debt | $12.8 | $510.8 | $510.8 | | Long-term debt | $2,256.0 | $1,579.9 | $1,668.2 | Note 9. INCOME TAXES This note explains the effective income tax rates and the impact of non-deductible impairment charges on the company's tax provision - The effective income tax rate for the thirteen weeks ended August 3, 2025, was (101.6)%, reflecting a $(113.0) million income tax benefit on $111.2 million of pre-tax income, compared to (2.1)% in the prior year81 - The effective income tax rate for the twenty-six weeks ended August 3, 2025, was 175.3%, reflecting a $(417.8) million income tax benefit on $(238.4) million of pre-tax losses, compared to 9.6% in the prior year82 - The higher effective tax rates in 2025 were primarily due to the impact of $479.5 million pre-tax noncash goodwill and other intangible asset impairment charges recorded in Q1 2025, which were non-deductible for tax purposes83 Note 10. DERIVATIVE FINANCIAL INSTRUMENTS This note describes the company's use of foreign currency forward contracts and cross-currency swaps to manage market risks - The company uses foreign currency forward contracts to hedge against foreign currency exchange rate exposure related to inventory purchases (cash flow hedges) and non-derivative/derivative instruments (foreign currency borrowings, cross-currency swap contracts) as net investment hedges8486 - In July 2025, the company completed a transaction to effectively blend and extend cross-currency swaps maturing in July 2025 with new fixed-to-fixed cross-currency swap contracts maturing in July 2027 ($300 million notional) and July 2028 ($200 million notional)90 Total (Loss) Gain Recognized in Other Comprehensive Income from Hedges | Period | Aug 3, 2025 (Millions) | Aug 4, 2024 (Millions) | | :-------------------------------- | :--------------------- | :--------------------- | | Thirteen Weeks Ended | $(51.4) | $(23.1) | | Twenty-Six Weeks Ended | $(246.7) | $(10.3) | Note 11. FAIR VALUE MEASUREMENTS This note presents the fair value of financial assets and liabilities, including derivative instruments, and non-recurring fair value remeasurements of non-financial assets Fair Value of Financial Assets and Liabilities (August 3, 2025) | Category | Assets (Millions) | Liabilities (Millions) | | :-------------------------------- | :---------------- | :------------------- | | Foreign currency forward contracts | $3.2 | $44.6 | | Cross-currency swap contracts (net investment hedges) | $7.5 | $31.3 | | Rabbi trust assets | $19.1 | N/A | | Total | $29.8 | $75.9 | - Non-financial assets, specifically other intangible assets, were remeasured at fair value on a non-recurring basis during the twenty-six weeks ended August 3, 2025, resulting in total impairments of $53.5 million for the Australia license rights107 Note 12. STOCK-BASED COMPENSATION This note details the expense and tax benefits related to stock-based compensation, along with activity for restricted stock units and performance share units - Net income for the twenty-six weeks ended August 3, 2025, included $26.0 million of pre-tax expense related to stock-based compensation, with related recognized income tax benefits of $3.2 million111 RSU Activity (Twenty-Six Weeks Ended August 3, 2025) | Metric | RSUs (Thousands) | Weighted Average Grant Date Fair Value Per RSU | | :-------------------------------- | :--------------- | :--------------------------------------------- | | Non-vested at February 2, 2025 | 1,069 | $93.45 | | Granted | 826 | $69.05 | | Vested | 403 | $91.13 | | Forfeited | 108 | $87.17 | | Non-vested at August 3, 2025 | 1,384 | $80.06 | PSU Activity (Twenty-Six Weeks Ended August 3, 2025) | Metric | PSUs (Thousands) | Weighted Average Grant Date Fair Value Per PSU | | :-------------------------------- | :--------------- | :--------------------------------------------- | | Non-vested at February 2, 2025 | 266 | $110.64 | | Granted | 192 | $85.12 | | Vested | 42 | $102.88 | | Forfeited | 14 | $117.79 | | Non-vested at August 3, 2025 | 411 | $99.13 | Note 13. ACCUMULATED OTHER COMPREHENSIVE LOSS This note explains changes in the accumulated other comprehensive loss, primarily driven by foreign currency translation adjustments and cash flow hedges - The Accumulated Other Comprehensive Loss (AOCL) balance decreased from $(856.8) million at February 2, 2025, to $(756.7) million at August 3, 2025, representing a $100.1 million increase (reduction in loss)123 - Foreign currency translation adjustments contributed $156.1 million to other comprehensive income (loss) for the twenty-six weeks ended August 3, 2025, principally driven by a weakening of the United States dollar against the euro123 - Net unrealized and realized loss related to effective cash flow hedges was $(56.0) million for the twenty-six weeks ended August 3, 2025123 Note 14. STOCKHOLDERS' EQUITY This note outlines the company's stock repurchase programs, including accelerated share repurchases and open market transactions - The Board of Directors authorized a $5.0 billion stock repurchase program through July 30, 2028, with $1.212 billion of authorization remaining as of August 3, 2025124126 - On April 1, 2025, the company entered into accelerated share repurchase (ASR) agreements to repurchase $500.0 million of common stock, receiving initial deliveries of approximately 4.6 million shares125 - During the twenty-six weeks ended August 3, 2025, the company purchased an additional 0.8 million shares for $60.8 million in open market transactions126 Note 15. EXIT ACTIVITY COSTS This note describes costs associated with the 'Growth Driver 5 Actions' initiative, including severance and accelerated depreciation, aimed at achieving cost savings - The 'Growth Driver 5 Actions' initiative aims to simplify the operating model and achieve annual cost savings of approximately $200 million to $300 million by 2026, with actions largely completed by the end of 2025129 Costs Incurred for Growth Driver 5 Actions (Twenty-Six Weeks Ended August 3, 2025) | Cost Category | Amount (Millions) | | :-------------------------------- | :---------------- | | Severance, termination benefits and other employee costs | $55.9 | | Accelerated depreciation | $2.3 | | Total | $58.2 | - Liabilities related to severance, termination benefits, and other employee costs were $56.7 million as of August 3, 2025132 Note 16. NET INCOME PER COMMON SHARE This note presents basic and diluted net income per common share, along with the weighted average shares outstanding for the reported periods Net Income Per Common Share (Thirteen Weeks Ended) | Metric | Aug 3, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | | Basic net income per common share | $4.66 | $2.83 | | Diluted net income per common share | $4.63 | $2.80 | | Weighted average common shares outstanding (basic) | 48.1 million | 55.9 million | | Total shares for diluted net income per common share | 48.5 million | 56.5 million | Net Income Per Common Share (Twenty-Six Weeks Ended) | Metric | Aug 3, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | | Basic net income per common share | $3.62 | $5.46 | | Diluted net income per common share | $3.59 | $5.39 | | Weighted average common shares outstanding (basic) | 49.6 million | 56.7 million | | Total shares for diluted net income per common share | 50.0 million | 57.4 million | Note 17. SEGMENT DATA This note provides financial information by the company's new region-focused reportable segments, including revenue breakdowns by brand and distribution channel - Effective February 3, 2025, the company changed its reportable segments to be region-focused: EMEA, Americas, APAC, and Licensing, aligning with its new organizational structure and the PVH+ Plan135 Revenue by Segment (Thirteen Weeks Ended) | Segment | Aug 3, 2025 ($M) | Aug 4, 2024 ($M) | Change ($M) | Change (%) | | :---------------- | :--------------- | :--------------- | :---------- | :--------- | | EMEA | $1,048.5 | $1,014.2 | $34.3 | 3.4% | | Americas | $684.0 | $617.5 | $66.5 | 10.8% | | APAC | $335.2 | $339.8 | $(4.6) | -1.4% | | Licensing | $99.5 | $102.8 | $(3.3) | -3.2% | | Total Revenue | $2,167.2 | $2,074.3 | $92.9 | 4.5% | Revenue by Brand (Thirteen Weeks Ended) | Brand | Aug 3, 2025 ($M) | Aug 4, 2024 ($M) | Change ($M) | Change (%) | | :---------------- | :--------------- | :--------------- | :---------- | :--------- | | Tommy Hilfiger | $1,135.9 | $1,093.4 | $42.5 | 3.9% | | Calvin Klein | $980.0 | $930.3 | $49.7 | 5.3% | | Heritage Brands | $51.3 | $50.6 | $0.7 | 1.4% | | Total | $2,167.2 | $2,074.3 | $92.9 | 4.5% | Revenue by Distribution Channel (Thirteen Weeks Ended) | Channel | Aug 3, 2025 ($M) | Aug 4, 2024 ($M) | Change ($M) | Change (%) | | :-------------------------------- | :--------------- | :--------------- | :---------- | :--------- | | Wholesale revenue | $1,013.1 | $954.4 | $58.7 | 6.1% | | Owned and operated retail stores | $868.0 | $836.4 | $31.6 | 3.8% | | Owned and operated digital commerce sites | $186.6 | $180.7 | $5.9 | 3.3% | | Licensing revenue | $99.5 | $102.8 | $(3.3) | -3.2% | | Total | $2,167.2 | $2,074.3 | $92.9 | 4.5% | Note 18. RECENT ACCOUNTING GUIDANCE This note discusses recently issued accounting standards updates from the FASB and their expected impact on the company's financial reporting - The FASB issued ASU 2023-09, 'Income Taxes (Topic 740): Improvements to Income Tax Disclosures,' effective for the company's 2025 annual consolidated financial statements, requiring consistent categories and greater disaggregation of income tax information144 - The FASB issued ASU 2025-05, 'Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets,' effective for the company's first quarter 2026 consolidated financial statements, providing a practical expedient for estimating expected credit losses145 Note 19. OTHER COMMENTS This note covers miscellaneous financial information, including the MOFCOM listing, warehousing expenses, credit loss allowance, and supply chain finance program details - China's Ministry of Commerce (MOFCOM) placed PVH Corp. on the List of Unreliable Entities in February 2025, following an investigation into alleged violations of normal market trading principles, with potential measures including fines, trade restrictions, or investment prohibitions146 - Warehousing and distribution expenses totaled $88.1 million for the thirteen weeks and $171.5 million for the twenty-six weeks ended August 3, 2025149 - The allowance for credit losses on trade receivables was $26.9 million as of August 3, 2025, compared to $43.2 million as of August 4, 2024150 - Suppliers had elected to sell $467.4 million of the company's payment obligations through the voluntary supply chain finance program as of August 3, 2025152 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and results of operations, discussing key performance drivers, macroeconomic impacts, strategic initiatives, and liquidity OVERVIEW This section provides a high-level introduction to PVH Corp., its global brands, and its multi-year strategic PVH+ Plan - PVH Corp. is a global apparel company with over 140 years of history, generating $8.7 billion in revenue in 2024, with over 70% from outside the United States157158 - The global iconic lifestyle brands, TOMMY HILFIGER and Calvin Klein, together generated over 95% of the company's revenue158 - The company introduced the PVH+ Plan in April 2022, a multi-year strategic plan to build Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands and make PVH a top-performing brand group159 RESULTS OF OPERATIONS This section analyzes the company's financial performance, discussing revenue, gross profit, and net income trends over the reported periods Macroeconomic Environment This section discusses the impact of inflation, tariffs, interest rates, and recession risks on the company's retail environment and financial outlook - Inflation, recently enacted tariffs on goods imported into the United States, elevated interest rates, and the risk of recession continue to create a complex and challenging retail environment, particularly in North America160 - The recently enacted tariffs are expected to have an estimated net negative impact of approximately $70 million on full-year 2025 gross profit, primarily in the second half of the year, with mitigation strategies underway162 - The 2025 outlook assumes no material worsening of current conditions, but revenue and earnings may be subject to significant material change due to macroeconomic factors163 Operations Overview This section describes the company's revenue generation channels, significant impairment charges, and the potential impact of the MOFCOM listing - Revenue is generated from wholesale distribution to retailers, pure play digital commerce retailers, franchisees, and distributors, as well as sales through approximately 1,350 company-operated free-standing stores, 1,450 shop-in-shop/concession locations, and digital commerce sites worldwide164 - The company recorded pre-tax noncash goodwill and other intangible impairment charges of $480 million in the first quarter of 2025, primarily due to a significant increase in discount rates167 - China's Ministry of Commerce (MOFCOM) placed PVH Corp. on the List of Unreliable Entities in February 2025, which could result in fines or restrictions on the company's ability to do business in China173 Seasonality This section explains the seasonal patterns of the company's wholesale, direct-to-consumer, and licensing businesses throughout the year - The company's wholesale businesses generally generate higher sales in the first and third quarters, while direct-to-consumer businesses tend to generate higher sales in the fourth quarter174 - Licensing revenue tends to be earned somewhat evenly throughout the year, with the third quarter typically having the highest level due to higher sales by licensees in advance of the holiday selling season174 Thirteen Weeks Ended August 3, 2025 Compared With Thirteen Weeks Ended August 4, 2024 This section provides a comparative analysis of the company's financial performance for the thirteen-week periods, highlighting key revenue and profit changes - Total revenue increased by $93 million, or 4%, to $2.167 billion, including a 3% positive impact of foreign currency translation177 - Gross profit as a percentage of total revenue decreased by 240 basis points to 57.7%, primarily due to the transition of previously licensed product categories, initial negative impact of tariffs, increased promotional selling, and higher freight costs182 - Income before interest and taxes decreased by 23% to $133 million, or 6.1% of total revenue, from $174 million in the prior year period176 - Net income increased by 42% to $224 million, significantly influenced by a $(113) million income tax benefit, compared to $158 million in the prior year176190 Twenty-Six Weeks Ended August 3, 2025 Compared With Twenty-Six Weeks Ended August 4, 2024 This section offers a detailed comparison of the company's financial results for the twenty-six-week periods, focusing on revenue, gross profit, and net income drivers - Total revenue increased by $125 million, or 3%, to $4.151 billion, including a 2% positive impact of foreign currency translation193 - Gross profit as a percentage of total revenue decreased by 260 basis points to 58.1%, driven by the transition of licensed product categories, initial tariff impacts, increased promotional selling, and higher freight costs198 - The company recorded $480 million in noncash goodwill and other intangible asset impairment charges during the first quarter of 2025204 - Loss before interest and taxes was $(199) million, or (4.8)% of total revenue, a significant decrease from income of $379 million, or 9.4% of total revenue, in the prior year period192 - Net income decreased by 42% to $179 million, despite a $(418) million income tax benefit, compared to $309 million in the prior year period192214 LIQUIDITY AND CAPITAL RESOURCES This section assesses the company's ability to generate and manage cash, including cash flow trends, debt, and capital allocation strategies Cash Flow Summary and Trends This section summarizes changes in cash and cash equivalents, identifying primary drivers such as share repurchases and debt redemptions - Cash and cash equivalents decreased by $499 million to $249 million at August 3, 2025, from $748 million at February 2, 2025219 - The decrease was primarily driven by $561 million paid for accelerated share repurchase (ASR) agreements and open market purchases, and the redemption of $500 million senior notes, partially offset by $494 million net proceeds from new senior notes219 - The company ended the second quarter of 2025 with approximately $1.7 billion of borrowing capacity available under its various debt facilities219 Operations This section analyzes cash provided by operating activities, attributing changes to net income fluctuations and inventory adjustments - Cash provided by operating activities decreased to $142 million for the twenty-six weeks ended August 3, 2025, from $226 million in the prior year period222 - The decrease was primarily driven by a decrease in net income (adjusted for noncash charges) and an increase in inventory due to tariffs, investment in core product, and projected sales growth222223 Supply Chain Finance Program This section describes the company's voluntary supply chain finance program and its impact on supplier payment obligations - The company has a voluntary supply chain finance (SCF) program allowing inventory suppliers to sell their receivables to participating financial institutions in advance of the invoice due date224 - The company's payment obligations, including amounts due and payment terms, are not impacted by suppliers' participation in the SCF program224 - Suppliers had elected to sell $467.4 million of the company's payment obligations that were outstanding as of August 3, 2025225 Investments in Unconsolidated Affiliates This section reports on dividends received from investments in unconsolidated affiliates, contributing to operating cash flows - The company received $37 million in dividends from its investments in unconsolidated affiliates during the twenty-six weeks ended August 3, 2025, contributing to operating cash flows225 Heritage Brands Intimates Transaction This section details the net proceeds and additional gains from the divestiture of the company's women's intimates businesses - The company received net proceeds of $156 million from the sale of its Warner's, Olga, and True&Co. women's intimates businesses in Q4 2023, with an additional $10 million received in Q1 2024 due to accelerated earnout realization226 Capital Expenditures This section outlines capital expenditures for the period and projected full-year investments in stores, IT, and distribution networks - Capital expenditures for the twenty-six weeks ended August 3, 2025, were $58 million, compared to $75 million in the prior year period227 - Projected full-year 2025 capital expenditures are approximately $200 million, primarily for new stores/renovations, IT infrastructure, and enhancements to the warehouse and distribution network in Europe and North America227 Dividends This section reports on cash dividends paid on common stock and projected dividend payments for the full fiscal year - Cash dividends paid on common stock totaled $4 million for the twenty-six weeks ended August 3, 2025, consistent with the prior year228 - Projected cash dividends for the full year 2025 are approximately $7 million229 Acquisition of Treasury Shares This section details the company's stock repurchase program, including accelerated share repurchase agreements and open market purchases - The Board of Directors authorized a $5 billion stock repurchase program through July 30, 2028, with $1.212 billion remaining available for future repurchases as of August 3, 2025230234 - On April 1, 2025, the company entered into ASR agreements to repurchase $500 million of common stock, receiving initial deliveries of approximately 4.6 million shares231 - During the twenty-six weeks ended August 3, 2025, the company purchased an additional 0.8 million shares for $61 million in open market transactions234 Financing Arrangements This section provides an overview of the company's capital structure, debt instruments, and compliance with financial covenants Capital Structure (Millions) | Metric | Aug 3, 2025 | Feb 2, 2025 | Aug 4, 2024 | | :-------------------------------- | :---------- | :---------- | :---------- | | Short-term borrowings | $— | $— | $8 | | Current portion of long-term debt | $13 | $511 | $511 | | Finance lease obligations | $4 | $6 | $8 | | Long-term debt | $2,256 | $1,580 | $1,668 | | Stockholders' equity | $4,867 | $5,141 | $5,192 | - The company had no short-term borrowings outstanding under its revolving credit facilities or commercial paper program as of August 3, 2025237239 - The company issued $500 million principal amount of 5 1/2% senior notes due June 13, 2030, using the proceeds to repay the $500 million principal amount of 4 5/8% senior notes due July 10, 2025255 - As of August 3, 2025, the company was in compliance with all applicable financial and non-financial covenants under its financing arrangements257 Additional Cash Requirements This section highlights increased cash requirements due to lease extensions for retail outlet stores in North America - During the second quarter of 2025, the company executed lease extensions for certain retail outlet store landlords in North America, increasing cash requirements by $874 million over the next decade260 CRITICAL ACCOUNTING POLICIES This section confirms no significant changes to the company's critical accounting policies from the prior annual report - There were no significant changes to the company's critical accounting policies during the twenty-six weeks ended August 3, 2025, from those described in its Annual Report on Form 10-K for the year ended February 2, 2025261 Item 3 - Quantitative and Qualitative Disclosures About Market Risk This section details the company's exposure to market risks, primarily interest rate risk and foreign currency exchange rate risk, and outlines the strategies employed to mitigate these exposures, including the use of derivative instruments - Approximately 80% of the company's long-term debt had fixed interest rates as of August 3, 2025; a 10 basis point change in the one-month EURIBOR would result in an approximate $0.5 million annual change in variable interest expense262 - Over 70% of the company's $8.7 billion revenue in 2024 was generated outside the United States, exposing it to significant foreign exchange risk with both translational and transactional impacts263 - The company currently expects its 2025 revenue and net income to increase by approximately $200 million and $20 million, respectively, due to the impact of foreign currency translation265 - Foreign currency forward contracts are used to mitigate cash flow or market value risks associated with inventory and intercompany transactions, while foreign-denominated debt and cross-currency swap contracts are designated as net investment hedges267270 Item 4 - Controls and Procedures This section reports that the company's disclosure controls and procedures were not effective as of August 3, 2025, due to a previously identified material weakness in internal control over financial reporting. However, management believes the financial statements are fairly presented and is actively implementing remediation measures - The company's disclosure controls and procedures were not effective as of August 3, 2025, due to a previously identified material weakness in internal control over financial reporting274 - Notwithstanding the material weakness, management believes that the consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with U.S. GAAP and fairly present the financial condition, results of operations, and cash flows275 - Management is implementing and continues to implement measures designed to remediate the control deficiencies contributing to the material weakness, but it will not be considered remediated until controls operate effectively for a sufficient period and are tested276277 PART II - OTHER INFORMATION This section covers legal proceedings, risk factors, equity security sales, and other miscellaneous information pertinent to the company's operations Item 1 - Legal Proceedings This section details the ongoing investigation by China's Ministry of Commerce (MOFCOM), which resulted in PVH Corp. being placed on the List of Unreliable Entities, and outlines the potential significant adverse impacts on the company's business in China - China's Ministry of Commerce (MOFCOM) initiated an investigation in September 2024 and subsequently placed PVH Corp. on the List of Unreliable Entities in February 2025, based on suspicions of violating normal market trading principles279 - Potential measures from the MOFCOM listing could include monetary fines, restrictions or prohibitions on import/export activities or investments in China, and entry denial or revocation of work permits for relevant personnel279 - The company cannot currently predict the duration or impact of any measures, which could have a material adverse effect on its revenue and results of operations, potentially leading to charges related to excess inventory or impairment charges148 Item 1A - Risk Factors This section refers to the company's Annual Report on Form 10-K for a comprehensive description of significant risks and uncertainties, stating that there have been no material changes to these risk factors as of August 3, 2025 - There have been no material changes to the risk factors as of August 3, 2025, from those described in the company's Annual Report on Form 10-K for the fiscal year ended February 2, 2025281 Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds This section provides a summary of issuer purchases of equity securities during the quarterly period, including shares acquired through open market transactions and those withheld for tax purposes related to stock-based compensation awards Issuer Purchases of Equity Securities (May 5, 2025 - August 3, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | | :-------------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------ | | May 5, 2025 - June 1, 2025 | 46,279 | $70.25 | $1,211,808,469 | | June 2, 2025 - July 6, 2025 | 20,305 | $68.82 | $1,211,808,469 | | July 7, 2025 - August 3, 2025 | 1,521 | $73.18 | $1,211,808,469 | | Total | 68,105 | | $1,211,808,469 | - The table includes shares withheld during the second quarter of 2025 in connection with the settlement of restricted stock units and performance share units to satisfy tax withholding requirements284 Item 5 - Other Information This section confirms that no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the reported quarterly period - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the quarterly period ended August 3, 2025285 Item 6 - Exhibits This section provides a comprehensive list of all exhibits filed with the Form 10-Q, including corporate organizational documents, various debt indentures, and certifications required by the Sarbanes-Oxley Act - Exhibits include the Amended and Restated Certificate of Incorporation, By-Laws, various Indentures for senior notes (e.g., 4 5/8% Senior Note due 2025, 4.125% Senior Notes due 2029, 5.500% Senior Notes due 2030), and certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act286288 - Inline XBRL Instance Document and Taxonomy Extension Documents are also included as exhibits288