• 2024 fourth quarter and full year revenue:
  • Fourth quarter revenue decreased 5% to $2.372 billion compared to the prior year period (decreased 2% on a constant currency basis), including a 3% decline from the 53rd week in 2023, and exceeded guidance of a decrease of 6% to 7% (decrease 4% to 5% on a constant currency basis)
  • Full year revenue decreased 6% to $8.653 billion compared to the prior year period (decreased 5% on a constant currency basis); guidance was a decrease of 6% to 7% (decrease 6% to 7% on a constant currency basis)
• 2024 full year operating margin:
  • GAAP basis: 8.9% compared to guidance of 9.2%. Results include a pre-tax actuarial loss on retirement plans of $28 million not known at the time of guidance.
  • Non-GAAP basis: 10.0% compared to guidance of approximately flat to 10.1% in 2023
• 2024 fourth quarter and full year EPS:
  • GAAP basis: $2.83 (fourth quarter) compared to guidance of $2.83 to $2.98 and $10.56 (full year) compared to guidance of $10.55 to $10.70. Results include the pre-tax actuarial loss on retirement plans referenced above.
  • Non-GAAP basis: $3.27 (fourth quarter) exceeded guidance of $3.05 to $3.20 and $11.74 (full year) exceeded guidance of $11.55 to $11.70
• 2025 full year outlook:
  • Revenue: Projected to be flat to increase slightly (flat to increase slightly on a constant currency basis) compared to 2024.
  • Operating margin: Projected to be flat to increase slightly on a non-GAAP basis compared to 10.0% on a non-GAAP basis in 2024. Operating margin on a GAAP basis was 8.9% in 2024.
  • EPS: Projected to be in a range of $12.40 to $12.75 on a non-GAAP basis, including a negative impact of approximately $0.20 per share related to foreign currency translation.
• Completed approximately $500 million stock repurchases during 2024 and planning $500 million stock repurchases in 2025 pursuant to accelerated share repurchase (“ASR”) agreements.

New York, NY  — PVH Corp. reported its 2024 fourth quarter and full year results and provided its 2025 outlook.

Stefan Larsson, Chief Executive Officer, commented, “Driven by the strength of our two iconic global brands, Calvin Klein and TOMMY HILFIGER, and our disciplined execution of our PVH+ Plan, we finished the year strong and are well-positioned for 2025. In 2024, we beat our EPS guidance on a non-GAAP basis and delivered better-than-expected revenue in constant currency, with record gross margins and double-digit non-GAAP EBIT margin. In a challenging macro, we delivered another year of strong profitability in North America, drove sequential improvements in our wholesale order books in Europe while improving our quality of sales, and we achieved our third consecutive year of growth in Asia Pacific, on a constant currency basis.”

Larsson continued, “Looking ahead, we are positioning the Company for long-term, sustainable growth and remain relentlessly focused on fueling our brand-building consumer flywheel to unlock our full potential around the world. In North America, we will continue to drive a double-digit EBIT margin, in Europe our Fall ‘25 order books are back to growth, and in Asia Pacific we will continue to focus on driving strong consumer engagement across our diversified business in the region. I want to thank our teams globally for all their hard work as we take this major step toward delivering on our vision.”

Zac Coughlin, Chief Financial Officer, said, “For the full year 2024, we delivered on the commitments we set out at the beginning of the year, despite a tougher than expected macroeconomic backdrop. We leaned into the next level of PVH+ Plan execution across the Company to create value by increasing quality of sales and driving gross margin improvements and cost efficiencies to deliver significant cash flow from operations. Reflecting our conviction in our long-term growth potential and our strong balance sheet, we repurchased $500 million in stock during 2024, and we will be separately announcing our intent to repurchase $500 million in additional shares through ASR agreements in 2025 to opportunistically capture our attractive valuation and deliver returns for shareholders.”

• Revenue decreased 5% compared to the prior year period (decreased 2% on a constant currency basis), including a 3% decline from the 53rd week in 2023 and a 1% decline resulting from the sale of the Heritage Brands women’s intimates business in November 2023. Overall revenue in the Company’s international businesses decreased 6% compared to the prior year period (decreased 3% on a constant currency basis), including a 3% decline from the 53rd week in 2023. In North America, revenue in the Tommy Hilfiger and Calvin Klein businesses combined increased 1% compared to the prior year period, as the benefit from a shift in timing of wholesale shipments from the third quarter into the fourth quarter was largely offset by a decline from the 53rd week in 2023.
  • Direct-to-consumer revenue decreased 5% compared to the prior year period (decreased 2% on a constant currency basis), including a 4% decline from the impact of the 53rd week in 2023. Revenue in the Company’s owned and operated stores decreased 4% compared to the prior year period (decreased 1% on a constant currency basis). Revenue in the Company’s owned and operated digital commerce business decreased 10% compared to the prior year period (decreased 8% on a constant currency basis), as growth in North America was more than offset by the continuation of the Company’s planned strategic reduction of sales in Europe to drive overall higher quality of sales in the region.
  • Wholesale revenue decreased 5% compared to the prior year period (decreased 2% on a constant currency basis), including a 2% reduction resulting from the sale of the Heritage Brands women’s intimates business. The decline also reflects the continued strategic reduction of sales in Europe to drive overall higher quality of sales in the region partially offset by the impact of the timing of wholesale shipments in North America discussed above.
• Gross margin was 58.2% compared to 60.3% in the prior year period. The decrease reflects the impacts of an increased promotional environment, an unfavorable shift in channel mix, and higher freight costs.
• Inventory increased 6% compared to the prior year period primarily due to a purposeful investment in core inventory to improve overall availability and lean inventory levels in the prior year period.

Fourth Quarter Consolidated Results:

• Revenue of $2.372 billion decreased 5% compared to $2.490 billion in the prior year period (decreased 2% on a constant currency basis), including a 3% decline from the 53rd week in 2023 and a 1% decline resulting from the sale of the Heritage Brands women’s intimates business.
  • Tommy Hilfiger revenue decreased 5% compared to the prior year period (decreased 3% on a constant currency basis).
    • Tommy Hilfiger International revenue decreased 7% (decreased 4% on a constant currency basis).
    • Tommy Hilfiger North America revenue was flat.
  • Calvin Klein revenue decreased 2% compared to the prior year period (increased 1% on a constant currency basis).
    • Calvin Klein International revenue decreased 4% (decreased 1% on a constant currency basis).
    • Calvin Klein North America revenue increased 3% primarily driven by the timing of wholesale shipments discussed above.
  • Heritage Brands revenue decreased 41% compared to the prior year period, which included a 28% decrease resulting from the sale of the Heritage Brands women’s intimates business.
• Earnings before interest and taxes (“EBIT”) on a GAAP basis was $210 million, inclusive of an $8 million negative impact attributable to foreign currency translation, compared to $357 million in the prior year period. Included in the fourth quarter was a recognized actuarial loss on retirement plans of $28 million and included in the prior year period was a recognized actuarial gain on retirement plans of $46 million. EBIT on a GAAP basis for these periods also included the other amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EBIT on a non-GAAP basis for these periods excluded these amounts.

  EBIT on a non-GAAP basis was $244 million, inclusive of the $8 million negative impact attributable to foreign currency translation, compared to $301 million in the prior year period. The decrease was primarily driven by the revenue and gross margin declines discussed above. The Company continues to take a disciplined approach to managing expenses, driving cost efficiencies while making targeted investments to drive its strategic initiatives.

• Earnings per share (“EPS”)
  • GAAP basis: $2.83 compared to $4.55 in the prior year period.
  • Non-GAAP basis: $3.27 compared to $3.72 in the prior year period.

EPS on both a GAAP and a non-GAAP basis for the fourth quarter of 2024 includes the negative impact of $0.12 per share related to foreign currency translation.

EPS on a GAAP basis for these periods also includes the amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for these periods excluded these amounts.

• Interest expense decreased to $14 million from $20 million in the prior year period.
• Effective tax rate was 20.0% on a GAAP basis compared to 19.3% in the prior year period. The effective tax rate was 21.4% on a non-GAAP basis compared to 21.1% in the prior year period.

Full Year 2024 Consolidated Results:

• Revenue decreased 6% to $8.653 billion compared to 2023 (decreased 5% on a constant currency basis), including a 2% decline resulting from the sale of the Heritage Brands women’s intimates business and a 1% decline from the 53rd week in 2023.
  • Tommy Hilfiger revenue decreased 5% compared to 2023 (decreased 4% on a constant currency basis).
    • Tommy Hilfiger International revenue decreased 7% (decreased 6% on a constant currency basis) as the planned strategic reduction of sales in Europe to drive overall higher quality of sales in the region weighed more heavily on the Tommy Hilfiger business.
    • Tommy Hilfiger North America revenue was flat.
  • Calvin Klein revenue decreased 1% compared to 2023 (flat on a constant currency basis).
    • Calvin Klein International revenue decreased 2% (flat on a constant currency basis).
    • Calvin Klein North America revenue decreased 1%.
  • Heritage Brands revenue decreased 57% compared to 2023, including a 45% decrease resulting from the sale of the Heritage Brands women’s intimates business.
• EBIT on a GAAP basis was $772 million, inclusive of a $12 million negative impact due to foreign currency translation, compared to $929 million in 2023. These results included the amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EBIT on a non-GAAP basis for these periods excluded these amounts.

  EBIT on a non-GAAP basis was $865 million, inclusive of the $12 million negative impact due to foreign currency translation, compared to $931 million in 2023. The impact of the revenue decline discussed above was partly offset by a 120 basis point improvement in gross margin primarily driven by a favorable shift in channel mix and lower product costs. The Company continues to take a disciplined approach to managing expenses, driving cost efficiencies while making targeted investments to drive its strategic initiatives.

• EPS
  • GAAP basis: $10.56 compared to $10.76 in 2023.
  • Non-GAAP basis: $11.74 compared to $10.68 in 2023.

EPS on both a GAAP and a non-GAAP basis for 2024 includes the negative impact of $0.18 per share related to foreign currency translation.

EPS on a GAAP basis for 2023 and 2024 also include the amounts for the applicable period described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for these periods excluded these amounts.

• Interest expense decreased to $67 million from $88 million in 2023 primarily due to the repayment in 2023 of the $100 million 7 3/4% debentures and an increase in interest income.
• Effective tax rate was 15.2% on a GAAP basis compared to 21.1% in 2023. The effective tax rate was 16.7% on a non-GAAP basis compared to 21.9% in 2023. The decline in the tax rates on a GAAP and non-GAAP basis compared to 2023 is primarily due to a tax benefit in the second quarter of 2024 related to the favorable settlement of a multi-year audit in an international jurisdiction.

Stock Repurchase Program:

Delivering on its commitment under the PVH+ Plan to return excess cash to stockholders, the Company repurchased 2.4 million shares of its common stock for $247 million during the fourth quarter of 2024, bringing total share repurchases for the full year 2024 to 4.7 million shares for approximately $500 million.

The Company will be separately announcing its intention to enter into ASR agreements with one or more dealers in April 2025 to repurchase $500 million of shares of its common stock in 2025. The ASR agreements will be included under the Company’s current $5 billion stock repurchase authorization approved by the Board of Directors, of which $1.8 billion remained available for share repurchases as of February 2, 2025.

2025 Outlook:

Full Year 2025 Guidance

• Revenue is projected to be flat to increase slightly compared to 2024 (flat to increase slightly on a constant currency basis).
• Operating margin is projected to be flat to increase slightly on a non-GAAP basis compared to 10.0% on a non-GAAP basis in 2024. Operating margin on a GAAP basis was 8.9% in 2024.
• EPS is projected to be in a range of $12.40 to $12.75 on a non-GAAP basis compared to $10.56 on a GAAP basis and $11.74 on a non-GAAP basis in 2024. The 2025 EPS projection includes the estimated negative impact of approximately $0.20 per share related to foreign currency translation. EPS on a GAAP basis for 2024 included the amounts described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis for 2024 excluded these amounts.
• Interest expense is projected to increase to approximately $85 million compared to $67 million in 2024 primarily due to the impact of funding the accelerated share repurchase program discussed above.
• Effective tax rate is projected to be approximately 22%.

First Quarter 2025 Guidance

• Revenue is projected to be flat to decrease 2% compared to the first quarter of 2024 (flat to decrease 1% on a constant currency basis).
• EPS is projected to be in a range of $2.10 to $2.25 on a non-GAAP basis compared to $2.59 on a GAAP basis and $2.45 on a non-GAAP basis in the first quarter of 2024. The first quarter 2025 EPS projection includes the estimated negative impact of approximately $0.05 per share related to foreign currency translation. EPS on a GAAP basis for the first quarter of 2024 included the amount described under the heading “Non-GAAP Exclusions” later in this release. EPS on a non-GAAP basis excluded this amount.
• Interest expense is projected to increase to approximately $20 million compared to $18 million in the first quarter of 2024.
• Effective tax rate is projected to be approximately 18%.

The Company is unable to project full year 2025 operating margin and full year and first quarter 2025 EPS on a GAAP basis without unreasonable efforts as there are significant uncertainties with respect to the amount and timing of the restructuring costs to be incurred during 2025 in connection with the Growth Driver 5 Actions defined later in this release. As such, the Company is unable to provide a full reconciliation of its full year 2025 operating margin and full year and first quarter 2025 EPS guidance on a non-GAAP basis to the corresponding measures on a GAAP basis.

Please see the section entitled “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” at the end of this release for further detail and reconciliations of GAAP to non-GAAP amounts discussed in this section.

Non-GAAP Exclusions:

The discussions in this release that refer to non-GAAP amounts exclude the following:

• Pre-tax loss of $28 million recorded in the fourth quarter of 2024 related to the recognized actuarial loss on retirement plans.
• Pre-tax net restructuring costs totaling $24 million incurred in 2024 consisting principally of severance and the gain on the sale of a warehouse and distribution center in the third quarter in connection with the Company’s multi-year initiative announced in 2024 to simplify its operating model by centralizing processes and improving systems and automation to drive more efficient, cost-effective ways of working across the organization (the “Growth Driver 5 Actions”), of which $15 million was incurred in the second quarter, $3 million was incurred in the third quarter, and $6 million was incurred in the fourth quarter.
• Pre-tax costs of $51 million incurred in the third quarter of 2024 in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of future payments to Mr. Hilfiger.
• Pre-tax gain of $10 million recorded in the first quarter of 2024 in connection with the Company’s sale of the Heritage Brands women’s intimates business.
• Pre-tax gain of $46 million recorded in the fourth quarter of 2023 related to the recognized actuarial gain on retirement plans.
• Pre-tax net gain of $13 million recorded in the fourth quarter of 2023 in connection with the sale of the Company’s Heritage Brands women’s intimates business, which includes a gain on the sale, less costs to sell, and severance and other termination benefits associated with the transaction.
• Pre-tax restructuring costs of $61 million incurred in 2023 consisting principally of severance related to actions taken in the second and third quarters of 2023 under the plans announced in August 2022 to reduce people costs in the Company’s global offices by approximately 10% by the end of 2023, of which $39 million was incurred in the second quarter, $19 million was incurred in the third quarter and $4 million was incurred in the fourth quarter.
• Estimated tax effects associated with the above pre-tax items, which are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each item that it had identified above as a non-GAAP exclusion to determine if such item was (i) taxable or tax deductible, in which case the tax effect was taken at the applicable income tax rate in the local jurisdiction, or (ii) non-taxable or non-deductible, in which case the Company assumed no tax effect.

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Please see following pages for information related to non-GAAP measures discussed in this release.