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SEGMENT DATA | 6 Months Ended
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Jul. 31, 2022
Notes to Financial Statements [Abstract] |
SEGMENT DATA | SEGMENT DATA The Company manages its operations through its operating divisions, which are presented as its reportable segments: (i) Tommy Hilfiger North America; (ii) Tommy Hilfiger International; (iii) Calvin Klein North America; (iv) Calvin Klein International; (v) Heritage Brands Wholesale; and, (vi) through the second quarter of 2021, Heritage Brands Retail. The Company’s Heritage Brands Retail segment has ceased operations. Tommy Hilfiger North America Segment - This segment consists of the Company’s Tommy Hilfiger North America division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale in the United States and Canada, primarily to department stores and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and a digital commerce site in the United States, which sells TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad range of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear LLC (“PVH Legwear”) affiliate relating to each affiliate’s Tommy Hilfiger business. Tommy Hilfiger International Segment - This segment consists of the Company’s Tommy Hilfiger International division. This segment derives revenue principally from (i) marketing TOMMY HILFIGER branded apparel and related products at wholesale principally in Europe, Asia and Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia and Australia, which sell TOMMY HILFIGER branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the TOMMY HILFIGER brand names for a broad range of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Brazil and its unconsolidated affiliate in India relating to each affiliate’s Tommy Hilfiger business. Calvin Klein North America Segment - This segment consists of the Company’s Calvin Klein North America division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale in the United States and Canada, primarily to warehouse clubs, department and specialty stores, and off-price and independent retailers, as well as digital commerce sites operated by department store customers and pure play digital commerce retailers; (ii) operating retail stores, which are primarily located in premium outlet centers in the United States and Canada, and a digital commerce site in the United States, which sells Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Calvin Klein brand names for a broad range of product categories in North America. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear affiliate relating to each affiliate’s Calvin Klein business. Calvin Klein International Segment - This segment consists of the Company’s Calvin Klein International division. This segment derives revenue principally from (i) marketing Calvin Klein branded apparel and related products at wholesale principally in Europe, Asia, Brazil and Australia, primarily to department and specialty stores, and digital commerce sites operated by department store customers and pure play digital commerce retailers, as well as through distributors and franchisees; (ii) operating retail stores, concession locations and digital commerce sites in Europe, Asia, Brazil and Australia, which sell Calvin Klein branded apparel, accessories and related products; and (iii) licensing and similar arrangements relating to the use by third parties of the Calvin Klein brand names for a broad range of product categories outside of North America. This segment also includes the Company’s proportionate share of the net income or loss of its investment in its unconsolidated affiliate in India relating to the affiliate’s Calvin Klein business. Heritage Brands Wholesale Segment - This segment consists of the Company’s Heritage Brands Wholesale division. This segment derives revenue primarily from the marketing to department, chain and specialty stores, warehouse clubs, mass market, and off-price retailers (in stores and online), as well as pure play digital commerce retailers in North America of (i) women’s intimate apparel under the Warner’s, Olga and True&Co. brands; (ii) men’s dress shirts and neckwear under various licensed brand names; and (iii) men’s sportswear, bottoms and outerwear principally under the Van Heusen, IZOD and ARROW trademarks until August 2, 2021, when the Company completed the Heritage Brands transaction. This segment also derived revenue from Company operated digital commerce sites in the United States for Van Heusen and IZOD, which ceased operations during the third quarter of 2021 in connection with the Heritage Brands transaction. In addition, this segment derives revenue from the Heritage Brands business in Australia. This segment also includes the Company’s proportionate share of the net income or loss of its investments in its unconsolidated affiliate in Mexico and its unconsolidated PVH Legwear affiliate relating to each affiliate’s business under various owned and licensed brand names. Heritage Brands Retail Segment - This segment consisted of the Company’s Heritage Brands Retail division. This segment derived revenue principally from operating retail stores, primarily located in outlet centers throughout the United States and Canada through which the Company marketed a selection of Van Heusen, IZOD and Warner’s apparel, accessories and related products directly to consumers. The Company announced in July 2020 a plan to exit its Heritage Brands Retail business, which was substantially completed in the second quarter of 2021. As a result, the Company’s Heritage Brands Retail segment has ceased operations. Please see Note 16, “Exit Activity Costs,” for further discussion. The Company’s revenue by segment was as follows:
| Thirteen Weeks Ended |  |  | Twenty-Six Weeks Ended |
(In millions) | 7/31/22 | (1) | 8/1/21 | (1) |  | 7/31/22 | (1) | 8/1/21 | (1)
Revenue – Tommy Hilfiger North America |  |  |  |  |  |  |  |  |
Net sales | $ | 288.2 |  |  | $ | 273.9 |  |  |  | $ | 523.7 |  |  | $ | 478.6 |  |
Royalty revenue | 17.1 |  |  | 15.4 |  |  |  | 37.9 |  |  | 33.0 |  |
Advertising and other revenue | 4.2 |  |  | 3.6 |  |  |  | 9.4 |  |  | 8.1 |  |
Total | 309.5 |  |  | 292.9 |  |  |  | 571.0 |  |  | 519.7 |  |
Revenue – Tommy Hilfiger International |  |  |  |  |  |  |  |  |
Net sales | 749.5 |  |  | 826.3 |  |  |  | 1,539.8 |  |  | 1,636.3 |  |
Royalty revenue | 14.9 |  |  | 13.1 |  |  |  | 29.4 |  |  | 26.0 |  |
Advertising and other revenue | 4.6 |  |  | 3.2 |  |  |  | 9.2 |  |  | 7.2 |  |
Total | 769.0 |  |  | 842.6 |  |  |  | 1,578.4 |  |  | 1,669.5 |  |
Revenue – Calvin Klein North America |  |  |  |  |  |  |  |  |
Net sales | 301.0 |  |  | 311.0 |  |  |  | 557.9 |  |  | 517.0 |  |
Royalty revenue | 34.2 |  |  | 28.6 |  |  |  | 76.4 |  |  | 60.3 |  |
Advertising and other revenue | 11.5 |  |  | 9.5 |  |  |  | 25.5 |  |  | 20.0 |  |
Total | 346.7 |  |  | 349.1 |  |  |  | 659.8 |  |  | 597.3 |  |
Revenue – Calvin Klein International |  |  |  |  |  |  |  |  |
Net sales | 549.2 |  |  | 560.6 |  |  |  | 1,107.8 |  |  | 1,085.6 |  |
Royalty revenue | 11.9 |  |  | 11.0 |  |  |  | 24.2 |  |  | 21.5 |  |
Advertising and other revenue | 2.2 |  |  | 1.7 |  |  |  | 4.4 |  |  | 3.2 |  |
Total | 563.3 |  |  | 573.3 |  |  |  | 1,136.4 |  |  | 1,110.3 |  |
Revenue – Heritage Brands Wholesale |  |  |  |  |  |  |  |  |
Net sales | 143.2 |  |  | 217.7 |  |  |  | 308.5 |  |  | 408.9 |  |
Royalty revenue | 0.2 |  |  | 4.8 |  |  |  | 0.4 |  |  | 9.8 |  |
Advertising and other revenue | 0.1 |  |  | 0.8 |  |  |  | 0.2 |  |  | 1.4 |  |
Total | 143.5 |  |  | 223.3 |  |  |  | 309.1 |  |  | 420.1 |  |
Revenue – Heritage Brands Retail |  |  |  |  |  |  |  |  |
Net sales | — |  |  | 32.0 |  |  |  | — |  |  | 75.6 |  |
Royalty revenue | — |  |  | — |  |  |  | — |  |  | — |  |
Advertising and other revenue | — |  |  | — |  |  |  | — |  |  | — |  |
Total | — |  |  | 32.0 |  |  |  | — |  |  | 75.6 |  |
Total Revenue |  |  |  |  |  |  |  |  |
Net sales | 2,031.1 |  |  | 2,221.5 |  |  |  | 4,037.7 |  |  | 4,202.0 |  |
Royalty revenue | 78.3 |  |  | 72.9 |  |  |  | 168.3 |  |  | 150.6 |  |
Advertising and other revenue | 22.6 |  |  | 18.8 |  |  |  | 48.7 |  |  | 39.9 |  |
Total | $ | 2,132.0 |  |  | $ | 2,313.2 |  |  |  | $ | 4,254.7 |  |  | $ | 4,392.5 |  |
(1) Revenue was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. The Company’s revenue by distribution channel was as follows:
| Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
(In millions) | 7/31/22 |  | 8/1/21 |  | 7/31/22 |  | 8/1/21
Wholesale net sales | $ | 1,073.8 |  |  | $ | 1,211.3 |  |  | $ | 2,309.1 |  |  | $ | 2,447.9 |
Owned and operated retail stores | 784.5 |  |  | 828.1 |  |  | 1,403.2 |  |  | 1,394.6 |
Owned and operated digital commerce sites | 172.8 |  |  | 182.1 |  |  | 325.4 |  |  | 359.5 |
Retail net sales | 957.3 |  |  | 1,010.2 |  |  | 1,728.6 |  |  | 1,754.1 |
Net sales | 2,031.1 |  |  | 2,221.5 |  |  | 4,037.7 |  |  | 4,202.0 |
Royalty revenue | 78.3 |  |  | 72.9 |  |  | 168.3 |  |  | 150.6 |
Advertising and other revenue | 22.6 |  |  | 18.8 |  |  | 48.7 |  |  | 39.9 |
Total | $ | 2,132.0 |  |  | $ | 2,313.2 |  |  | $ | 4,254.7 |  |  | $ | 4,392.5 |
The Company’s income before interest and taxes by segment was as follows:
| Thirteen Weeks Ended |  |  | Twenty-Six Weeks Ended |
(In millions) | 7/31/22 | (1) |  | 8/1/21 | (1) |  | 7/31/22 | (1) |  | 8/1/21 | (1)
(Loss) income before interest and taxes – Tommy Hilfiger North America | $ | (1.9) |  |  |  | $ | 24.7 |  |  |  | $ | (14.9) |  |  |  | $ | 19.6 |  | (6)
Income before interest and taxes – Tommy Hilfiger International | 88.5 |  | (4) |  | 164.8 |  |  |  | 227.9 |  | (4) |  | 332.1 |  | (6)
Income before interest and taxes – Calvin Klein North America | 21.9 |  |  |  | 39.7 |  |  |  | 33.6 |  |  |  | 38.9 |  | (6)
Income before interest and taxes – Calvin Klein International | 78.4 |  | (4) |  | 98.9 |  |  |  | 175.5 |  | (4) |  | 195.3 |  | (6)
Income before interest and taxes – Heritage Brands Wholesale | 13.4 |  |  |  | 22.2 |  |  |  | 30.2 |  |  |  | 43.4 |  |
Loss before interest and taxes – Heritage Brands Retail | — |  |  |  | (20.6) |  | (5) |  | — |  |  |  | (33.9) |  | (5)
Loss before interest and taxes – Corporate(2) | (23.3) |  | (3) |  | (50.7) |  |  |  | (65.0) |  | (3) |  | (119.0) |  | (6)
Income before interest and taxes | $ | 177.0 |  |  |  | $ | 279.0 |  |  |  | $ | 387.3 |  |  |  | $ | 476.4 |  |
(1) Income (loss) before interest and taxes was impacted by fluctuations of the United States dollar against foreign currencies in which the Company transacts significant levels of business. (2) Includes corporate expenses not allocated to any reportable segments, the results of PVH Ethiopia (through the closure of the Ethiopia factory in the fourth quarter of 2021) and the Company’s proportionate share of the net income or loss of its investment in Karl Lagerfeld after the Company resumed the equity method of accounting for its investment in the fourth quarter of 2021 and until the closing of the Karl Lagerfeld transaction on May 31, 2022. Please see Note 5, “Redeemable Non-Controlling Interest,” for further discussion of PVH Ethiopia and Note 6, “Investments in Unconsolidated Affiliates,” for further discussion of the Company’s investment in Karl Lagerfeld. Corporate expenses represent overhead operating expenses and include expenses for senior corporate management, corporate finance, information technology related to corporate infrastructure, certain digital investments, certain corporate responsibility initiatives, certain global strategic initiatives and actuarial gains and losses on the Company’s Pension Plans, SERP Plans and Postretirement Plans (which are generally recorded in the fourth quarter). (3) Loss before interest and taxes for the thirteen and twenty-six weeks ended July 31, 2022 included a gain of $16.1 million in connection with the Karl Lagerfeld transaction. Please see Note 6, “Investments in Unconsolidated Affiliates,” for further discussion. (4) Income before interest and taxes for the thirteen and twenty-six weeks ended July 31, 2022 included costs of $50.5 million incurred in connection with the Company’s decision to exit from its Russia business, principally consisting of noncash asset impairments. Such costs were included in the Company’s segments as follows: $36.7 million in Tommy Hilfiger International and $13.8 million in Calvin Klein International. Please see Note 16, “Exit Activity Costs,” for further discussion. (5) Loss before interest and taxes for the thirteen and twenty-six weeks ended August 1, 2021 included costs and operating losses associated with the wind down of the Heritage Brands Retail business that was substantially completed in the second quarter of 2021. Please see Note 16, “Exit Activity Costs,” for further discussion. (6) Income (loss) before interest and taxes for the twenty-six weeks ended August 1, 2021 included costs of $45.1 million incurred in connection with actions to streamline the Company’s organization through reductions in its workforce, primarily in certain international markets, and to reduce its real estate footprint, including reductions in office space and select store closures, consisting of noncash asset impairments, severance, and contract termination and other costs. Such costs were included in the Company’s segments as follows: $1.7 million in Tommy Hilfiger North America, $7.1 million in Tommy Hilfiger International, $2.1 million in Calvin Klein North America, $5.7 million in Calvin Klein International and $28.5 million in corporate expenses not allocated to any reportable segments. Please see Note 16, “Exit Activity Costs,” for further discussion. Intersegment transactions, which primarily consist of transfers of inventory, are not material.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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