-
Fourth quarter revenue was in line with the Company’s guidance despite more extensive lockdowns throughout
Europe than previously anticipated:-
Revenue decreased 20% to
$2.090 billion (fourth quarter) and decreased 28% to$7.133 billion (full year) compared to the prior year periods - Revenue through digital channels grew 57% (fourth quarter) and 43% (full year), with sales through its directly operated digital commerce businesses up 68% (fourth quarter) and 69% (full year) compared to the prior year periods
- Digital penetration as a percentage of total revenue doubled in 2020 compared to 2019
-
EPS on a GAAP basis was
$(0.81) (fourth quarter) and$(15.96) (full year) -
EPS on a non-GAAP basis was
$(0.38) (fourth quarter) and$(1.97) (full year) -
EPS on a GAAP and non-GAAP basis include an unplanned
$0.13 negative impact due to an unfavorable settlement of a multi-year tax audit from an international jurisdiction
-
Revenue decreased 20% to
-
Liquidity was over
$3.0 billion as of year-end, including$1.7 billion of cash on hand, of which$400 million was used inMarch 2021 to make a voluntary term loan payment - Inventory was down 12% at year-end 2020 compared to the prior year
Non-GAAP Amounts:
Amounts stated to be on a non-GAAP basis exclude the items that are defined or described in greater detail near the end of this release under the heading “Non-GAAP Exclusions.” Reconciliations of amounts on a GAAP basis to amounts on a non-GAAP basis are presented after the “Non-GAAP Exclusions” and identify and quantify all excluded items.
CEO Comments:
Commenting on these results,
Fourth Quarter Review:
The Company’s business continued to be impacted negatively by the COVID-19 pandemic in the fourth quarter 2020, with the level of impact varying by region and channel.
-
Direct to Consumer: Total direct to consumer revenue for the fourth quarter declined 20% compared to the prior year period, which included a 68% increase in digital commerce. All regions and brand businesses continued to experience strong digital growth and the Company continued to experience positive overall trends in
China . Approximately 70% of Company-operated stores inEurope and approximately 75% of Company-operated stores inCanada were closed temporarily during the quarter as a result of the virus resurgences there.
- Wholesale: The Company’s wholesale revenue for the fourth quarter declined 19% compared to the prior year period, which included a double digit increase in the Company’s sales to the digital businesses of its traditional and pure play wholesale customers.
-
Inventory: The Company continued to tightly manage its inventory, which decreased 12% as of the end of 2020 compared to the prior year. The Company is carrying approximately
$75 million of basic inventory into Spring 2021, a decrease from the Company’s prior projection of approximately$100 million .
Fourth Quarter Consolidated Results:
Fourth quarter revenue decreased 20% to
-
A 16% decrease (20% decrease on a constant currency basis) in the
Tommy Hilfiger business compared to the prior year period, including a 28% decrease inTommy Hilfiger North America revenue and a 10% decrease (17% decrease on a constant currency basis) inTommy Hilfiger International revenue, which includes the impact of temporary store closures for much of the quarter as a result of the extensive lockdowns throughoutEurope . -
A 17% decrease (20% decrease on a constant currency basis) in the
Calvin Klein business compared to the prior year period, including a 25% decrease inCalvin Klein North America revenue and a 10% decrease (16% decrease on a constant currency basis) inCalvin Klein International revenue, which includes the impact of temporary store closures for much of the quarter as a result of the extensive lockdowns throughoutEurope . -
A 41% decrease in the Heritage Brands business compared to the prior year period, which included a 17% decline resulting from the sale of the Company’s
Speedo North America business.
Loss per share on a GAAP basis was
Loss per share on a non-GAAP basis was
Earnings before interest and taxes on a GAAP basis for the quarter was
Earnings before interest and taxes on a non-GAAP basis for the quarter decreased to
Net interest expense on a GAAP basis increased to
The effective tax rate on a GAAP basis for the fourth quarter of 2020 was (608.5)% as compared to 45.5% in the prior year period. The effective tax rate in 2020 included a
Full Year 2020 Consolidated Results:
The Company’s business during 2020 was impacted significantly by the COVID-19 pandemic, resulting in an unprecedented decline in revenue and earnings, including as a result of
Revenue for 2020 decreased 28% to
-
A 23% decrease in the
Tommy Hilfiger business compared to 2019, including a 41% decrease inTommy Hilfiger North America revenue and a 13% decrease inTommy Hilfiger International revenue. -
A 28% decrease in the
Calvin Klein business compared to 2019, including a 43% decrease inCalvin Klein North America revenue and a 16% decrease inCalvin Klein International revenue. -
A 44% decrease in the Heritage Brands business compared to 2019, which included a 12% decline resulting from the sale of the Company’s
Speedo North America business.
Revenue for 2020 included a 69% increase in sales through the Company’s directly operated digital commerce businesses, driven by strong growth in all regions and brand businesses, which partially offset the decline in revenue through its other distribution channels.
Loss per share on a GAAP basis was
Loss per share on a non-GAAP basis was
Loss before interest and taxes on a GAAP basis for 2020 was
Loss before interest and taxes on a non-GAAP basis for 2020 was
Net interest expense on a GAAP basis for 2020 increased to
The effective tax rate on a GAAP basis for 2020 was 4.7% as compared to 6.5% in 2019. The effective tax rate on a non-GAAP basis for 2020 was 7.9% as compared to 14.0% in 2019.
2021 Outlook:
The Company is providing its 2021 outlook despite the significant uncertainty due to the COVID-19 pandemic globally and, as such, it could be subject to material change. The Company’s 2021 outlook does not contemplate any new store closures, new lockdowns, or extensions of current lockdowns beyond what is already known. In addition, the Company’s 2021 outlook does not contemplate further supply chain disruptions, including any greater impact beyond the minimal impact currently expected from the shipping disruption occurring as a result of the temporary blockage of the
The Company expects its 2021 revenue and earnings will continue to be impacted negatively by the pandemic, particularly in the first quarter due to ongoing store closures, predominantly in
The Company continues to tightly manage its inventory and expects gross margin to improve in 2021 compared to 2020, due in large part to a reduction in promotional selling as inventory levels are significantly lower at the end of 2020.
The Company also took actions beginning in 2020 that will continue into 2021 to manage its cost structure proactively, including reducing operating expenses and reallocating resources to support strategic growth areas of the business. As part of these actions, in 2021, the Company will reduce its workforce in certain international markets and reduce its real estate footprint, including reductions in office space and select store closures. These actions are in addition to the previously announced actions taken by the Company to streamline its North American operations to better align its business with the evolving retail landscape, including a reduction in its
Full Year Guidance
Revenue in 2021 is projected to increase 22% to 24% (increase 19% to 21% on a constant currency basis) as compared to 2020.
The Company currently projects that 2021 earnings per share on a GAAP basis will be approximately
The Company estimates that the 2021 effective tax rate will be in a range of 17.5% to 19.5%.
The Company’s estimate of 2021 earnings per share on a non-GAAP basis excludes (i) approximately
First Quarter Guidance
Revenue in the first quarter of 2021 is projected to increase 42% to 44% (increase 34% to 36% on a constant currency basis) compared to the prior year period.
The Company currently projects that first quarter 2021 earnings per share on a GAAP basis will be in a range of
The Company estimates that the first quarter 2021 effective tax rate will be approximately 50% on a GAAP basis and approximately 40% on a non-GAAP basis.
The Company’s estimate of first quarter 2021 earnings per share on a non-GAAP basis excludes (i) approximately
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 costs of approximately
$70 million expected to be incurred in 2021 in connection with actions to streamline the Company’s organization through reductions in its workforce in certain international markets and to reduce its real estate footprint, including reductions in office space and select store closures, of which approximately$45 million is expected to be incurred in the first quarter. -
Pre-tax costs of approximately
$21 million expected to be incurred in 2021 in connection with the planned exit from the Heritage Brands Retail business announced inJuly 2020 and expected to be completed by mid-2021, of which approximately$10 million is expected to be incurred in the first quarter. -
Pre-tax noncash impairment charges of
$1.021 billion recorded in 2020, primarily resulting from the impact of the COVID-19 pandemic on the Company’s business, including$933 million related to goodwill and other intangible assets,$75 million related to store assets, and$12 million related to an equity method investment, of which$962 million was recorded in the first quarter and$59 million was recorded in the fourth quarter. -
Pre-tax costs of
$7 million incurred in the first quarter of 2020 in connection with a consolidation within the Company’s warehouse and distribution network inNorth America . -
Pre-tax noncash net loss of
$3 million recorded in the first quarter of 2020 related to theApril 2020 sale of the Company’sSpeedo North America business toPentland Group PLC , the parent company of the Speedo brand (the “Speedo transaction”) and the resulting deconsolidation of the net assets of the Company’sSpeedo North America business. -
Pre-tax expense of
$5 million recorded in 2020 resulting from the remeasurement of a mandatorily redeemable non-controlling interest that was recognized in connection with the Company’s acquisition of the approximately 78% interest inGazal Corporation Limited (“Gazal”) that it did not already own (the “Australia acquisition”), of which$4 million of income was recorded in the first quarter,$5 million of expense was recorded in the second quarter,$1 million of expense was recorded in the third quarter and$3 million of expense was recorded in the fourth quarter. -
Pre-tax costs of
$40 million incurred in 2020 related to the reduction in the Company’sNorth America office workforce announced inJuly 2020 (the “North America workforce reduction”), primarily consisting of severance, of which$38 million was recorded in the second quarter and$1 million was recorded in the third quarter. -
Pre-tax costs of
$29 million incurred in 2020 in connection with the planned exit from the Heritage Brands Retail business announced inJuly 2020 and expected to be completed by mid-2021, consisting of$15 million of severance,$7 million of noncash asset impairments and$7 million of accelerated amortization of lease assets and other costs, of which$12 million was incurred in the second quarter,$9 million was incurred in the third quarter and$8 million was incurred in the fourth quarter. -
Pre-tax gain of
$65 million recorded in the fourth quarter of 2020 related to the recognized actuarial gain on retirement plans. -
Discrete tax expense of
$33 million recorded in the fourth quarter of 2020 related to the remeasurement of certain of the Company’s net deferred tax liabilities in connection with the enactment of legislation inthe Netherlands known as the “2021 Dutch Tax Plan,” which became effective onJanuary 1, 2021 . -
Pre-tax costs of
$103 million incurred in 2019 related to the restructuring associated with the strategic changes for theCalvin Klein business announced inJanuary 2019 (the “Calvin Klein restructuring”), consisting of a noncash lease asset impairment resulting from the closure of the Company’s flagship store onMadison Avenue inNew York, New York , other noncash asset impairments, severance, contract termination and other costs, and inventory markdowns, of which$70 million was incurred in the first quarter,$29 million was incurred in the second quarter and$3 million was incurred in the third quarter. -
Pre-tax costs of
$55 million incurred in the first quarter of 2019 in connection with the closure of the Company’sTOMMY HILFIGER flagship and anchor stores in theU.S. , primarily consisting of noncash lease asset impairments. -
Pre-tax costs of
$6 million incurred in the first quarter of 2019 in connection with the refinancing of the Company’s senior credit facilities. -
Pre-tax costs of
$60 million incurred in the second quarter of 2019 in connection with the agreements to terminate early the licenses for the globalCalvin Klein andTommy Hilfiger North America socks and hosiery businesses in order to consolidate the socks and hosiery businesses for all Company brands inNorth America in a newly formed joint venture and to bring in house the internationalCalvin Klein socks and hosiery wholesale businesses. -
Pre-tax noncash gain of
$113 million recorded in the second quarter of 2019 to write up the Company’s equity investments inGazal andPVH Brands Australia Pty. Limited , a jointly owned and managed joint venture of the Company andGazal , (“PVH Australia”) to fair value in connection with theAustralia acquisition. -
Pre-tax costs of
$21 million incurred in 2019 in connection with theAustralia acquisition and the Company’s acquisition of theTommy Hilfiger retail business in Central andSoutheast Asia from the licensee of the business, primarily consisting of noncash valuation adjustments, of which$7 million was incurred in the second quarter,$9 million was incurred in the third quarter and$6 million was incurred in the fourth quarter. -
Pre-tax expense of
$9 million recorded in 2019 resulting from the remeasurement of the Company’s mandatorily redeemable non-controlling interest that was recognized in connection with theAustralia acquisition, of which$3 million was recorded in the third quarter and$6 million was recorded in the fourth quarter. -
Pre-tax noncash loss of
$142 million recorded in the fourth quarter of 2019 related to the Speedo transaction and the resulting deconsolidation of the net assets of the Company’sSpeedo North America business. -
Pre-tax loss of
$98 million recorded in the fourth quarter of 2019 related to the recognized actuarial loss on retirement plans. -
Discrete tax benefit of
$28 million recorded in the fourth quarter of 2019 related to the write-off of deferred tax liabilities in connection with the Speedo transaction. - 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 is taxable or tax deductible, and if so, in what jurisdiction the tax expense or tax deduction would occur. All items above were identified as either primarily taxable or tax deductible, with the tax effect taken at the applicable income tax rate in the local jurisdiction, or as non-taxable or non-deductible, in which case the Company assumed no tax effect.
As a supplement to the Company’s GAAP results, the Company presents constant currency revenue information, which is a non-GAAP financial measure. The Company presents results in this manner because it is a global company that transacts business in multiple currencies but reports financial information in
The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into
Constant currency performance should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The constant currency revenue information presented may not be comparable to similarly described measures reported by other companies.
Please see Tables 1 through 11 and the sections entitled “Reconciliations of 2020 Constant Currency Revenue” and “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” later in this release for reconciliations of GAAP to non-GAAP amounts.
The Company webcasts its conference calls to review its earnings releases. The Company’s conference call to review its fourth quarter earnings release is scheduled for
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release and made during the conference call/webcast, including, without limitation, statements relating to the Company’s future revenue, earnings, plans, strategies, objectives, expectations and intentions are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company’s ability to realize anticipated benefits and savings from restructuring and similar plans, such as the
This press release includes, and the conference call/webcast will include, certain non-GAAP financial measures, as defined under
The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimate regarding revenue or earnings, whether as a result of the receipt of new information, future events or otherwise.
Consolidated GAAP Statements of Operations (In millions, except per share data) |
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Quarter Ended |
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Year Ended |
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Net sales |
|
$ |
1,996.0 |
|
|
|
$ |
2,480.2 |
|
|
|
|
|
$ |
6,798.7 |
|
|
|
$ |
9,400.0 |
|
|
|
|
Royalty revenue |
|
74.7 |
|
|
|
91.6 |
|
|
|
|
|
260.4 |
|
|
|
379.9 |
|
|
|
|
||||
Advertising and other revenue |
|
19.1 |
|
|
|
29.0 |
|
|
|
|
|
73.5 |
|
|
|
129.1 |
|
|
|
|
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Total revenue |
|
$ |
2,089.8 |
|
|
|
$ |
2,600.8 |
|
|
|
|
|
$ |
7,132.6 |
|
|
|
$ |
9,909.0 |
|
|
|
|
|
|
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Gross profit on net sales |
|
$ |
1,032.5 |
|
|
|
$ |
1,277.3 |
|
|
|
|
|
$ |
3,442.9 |
|
|
|
$ |
4,879.4 |
|
|
|
|
Gross profit on royalty, advertising and other revenue |
|
93.8 |
|
|
|
120.6 |
|
|
|
|
|
333.9 |
|
|
|
509.0 |
|
|
|
|
||||
Total gross profit |
|
1,126.3 |
|
|
|
1,397.9 |
|
|
|
|
|
3,776.8 |
|
|
|
5,388.4 |
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|
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Selling, general and administrative expenses |
|
1,173.7 |
|
|
|
1,257.6 |
|
|
|
|
|
3,983.2 |
|
|
|
4,715.2 |
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|
||||
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|
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|
933.5 |
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Non-service related pension and postretirement (income) cost |
|
(68.0 |
) |
|
|
96.1 |
|
|
|
|
|
(75.9 |
) |
|
|
90.0 |
|
|
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|
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Debt modification and extinguishment costs |
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5.2 |
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Other noncash loss, net |
|
|
|
142.0 |
|
|
|
|
|
3.1 |
|
|
|
28.9 |
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|
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Equity in net income (loss) of unconsolidated affiliates |
|
5.7 |
|
|
|
2.1 |
|
|
|
|
|
(4.6 |
) |
|
|
9.6 |
|
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Earnings (loss) before interest and taxes |
|
26.3 |
|
|
|
(95.7 |
) |
|
|
|
|
(1,071.7 |
) |
|
|
558.7 |
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Interest expense, net |
|
34.5 |
|
|
|
30.0 |
|
|
|
|
|
121.3 |
|
|
|
114.7 |
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Pre-tax (loss) income |
|
(8.2 |
) |
|
|
(125.7 |
) |
|
|
|
|
(1,193.0 |
) |
|
|
444.0 |
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Income tax expense (benefit) |
|
49.9 |
|
|
|
(57.2 |
) |
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(55.5 |
) |
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|
28.9 |
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Net (loss) income |
|
(58.1 |
) |
|
|
(68.5 |
) |
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|
|
(1,137.5 |
) |
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|
415.1 |
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Less: Net loss attributable to redeemable non-controlling interest (1) |
|
(0.4 |
) |
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|
(1.1 |
) |
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(1.4 |
) |
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(2.2 |
) |
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Net (loss) income attributable to |
|
$ |
(57.7 |
) |
|
|
$ |
(67.4 |
) |
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$ |
(1,136.1 |
) |
|
|
$ |
417.3 |
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Diluted net (loss) income per common share attributable to |
|
$ |
(0.81 |
) |
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$ |
(0.93 |
) |
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$ |
(15.96 |
) |
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$ |
5.60 |
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Quarter Ended |
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Year Ended |
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Depreciation and amortization expense |
|
$ |
85.6 |
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|
$ |
87.3 |
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|
|
$ |
325.8 |
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|
|
$ |
323.8 |
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Please see following pages for information related to non-GAAP measures discussed in this release.
(1) |
|
The Company and Arvind Limited have a joint venture in |
(2) |
|
Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net (loss) income per common share to diluted net (loss) income per common share on a non-GAAP basis. |
Non-GAAP Measures
The Company believes it is useful to investors to present its results for the periods ended
Non-GAAP Measures (continued) (In millions, except per share data) |
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The following table presents the non-GAAP measures that are discussed in this release. Please see Tables 1 through 11 for the reconciliations of the GAAP amounts to amounts on a non-GAAP basis. |
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Quarter Ended |
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Year Ended |
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Non-GAAP Measures |
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Total gross profit (1) |
|
|
|
$ |
1,403.8 |
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|
|
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|
|
$ |
5,417.8 |
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|
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Selling, general and administrative expenses (2) |
|
$ |
1,107.0 |
|
|
|
|
|
|
|
$ |
3,836.0 |
|
|
|
4,506.7 |
|
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|
— |
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Non-service related pension and postretirement income (4) |
|
(3.5 |
) |
|
|
(1.7 |
) |
|
|
|
|
(14.4 |
) |
|
|
(7.8 |
) |
|
|
|
||||
Debt modification and extinguishment costs (5) |
|
|
|
|
|
|
|
|
|
— |
|
|
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Other noncash loss, net (6) |
|
|
|
— |
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|
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|
|
— |
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|
|
— |
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|
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|
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Equity in net income of unconsolidated affiliates (7) |
|
|
|
|
|
|
|
7.7 |
|
|
|
11.7 |
|
|
|
|
||||||||
Earnings (loss) before interest and taxes (8) |
|
28.5 |
|
|
|
150.0 |
|
|
|
|
|
(37.1 |
) |
|
|
930.6 |
|
|
|
|
||||
Interest expense, net (9) |
|
31.9 |
|
|
|
24.0 |
|
|
|
|
|
116.4 |
|
|
|
106.1 |
|
|
|
|
||||
Income tax expense (benefit) (10) |
|
24.4 |
|
|
|
(10.7 |
) |
|
|
|
|
(12.2 |
) |
|
|
115.4 |
|
|
|
|
||||
Net (loss) income attributable to |
|
(27.4 |
) |
|
|
137.8 |
|
|
|
|
|
(139.9 |
) |
|
|
711.3 |
|
|
|
|
||||
Diluted net (loss) income per common share attributable to |
|
$ |
(0.38 |
) |
|
|
$ |
1.88 |
|
|
|
|
|
$ |
(1.97 |
) |
|
|
$ |
9.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Please see Table 3 for the reconciliations of GAAP gross profit to gross profit on a non-GAAP basis. |
|
(2) |
Please see Table 4 for the reconciliations of GAAP selling, general and administrative (“SG&A”) expenses to SG&A expenses on a non-GAAP basis. |
|
(3) |
Please see Table 5 for the reconciliation of GAAP goodwill and other intangible asset impairments to goodwill and other intangible asset impairments on a non-GAAP basis. |
|
(4) |
Please see Table 6 for the reconciliations of GAAP non-service related pension and postretirement (income) cost to non-service related pension and postretirement income on a non-GAAP basis. |
|
(5) |
Please see Table 7 for the reconciliation of GAAP debt modification and extinguishment costs to debt modification and extinguishment costs on a non-GAAP basis. |
|
(6) |
Please see Table 8 for the reconciliations of GAAP other noncash loss, net to other noncash loss, net on a non-GAAP basis. |
|
(7) |
Please see Table 9 for the reconciliations of GAAP equity in net income (loss) of unconsolidated affiliates to equity in net income of unconsolidated affiliates on a non-GAAP basis. |
|
(8) |
Please see Table 2 for the reconciliations of GAAP earnings (loss) before interest and taxes to earnings (loss) before interest and taxes on a non-GAAP basis. |
|
(9) |
Please see Table 10 for the reconciliations of GAAP interest expense, net to interest expense, net on a non-GAAP basis. |
|
(10) |
Please see Table 11 for the reconciliations of GAAP income tax expense (benefit) to income tax expense (benefit) on a non-GAAP basis and an explanation of the calculation of the tax effects associated with the pre-tax items identified as non-GAAP exclusions. |
|
(11) |
Please see Table 1 for the reconciliations of GAAP net (loss) income to net (loss) income on a non-GAAP basis. |
|
(12) |
Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net (loss) income per common share to diluted net (loss) income per common share on a non-GAAP basis. |
Reconciliations of GAAP to Non-GAAP Amounts (In millions, except per share data) |
||||||||||||||||||||||||
Table 1 - Reconciliations of GAAP net (loss) income to net (loss) income on a non-GAAP basis |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to |
|
$ |
(57.7 |
) |
|
|
$ |
(67.4 |
) |
|
|
|
|
$ |
(1,136.1 |
) |
|
|
$ |
417.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted net (loss) income per common share attributable to |
|
$ |
(0.81 |
) |
|
|
$ |
(0.93 |
) |
|
|
|
|
$ |
(15.96 |
) |
|
|
$ |
5.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pre-tax items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit charges associated with the |
|
|
|
|
|
|
|
|
|
12.9 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit charges associated with the |
|
|
|
5.9 |
|
|
|
|
|
|
|
16.5 |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the |
|
|
|
|
|
|
|
|
|
90.0 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the Socks and Hosiery transaction |
|
|
|
|
|
|
|
|
|
59.8 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the TH |
|
|
|
|
|
|
|
|
|
54.9 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the |
|
|
|
|
|
|
|
|
|
2.8 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the refinancing of the Company’s senior credit facilities |
|
|
|
|
|
|
|
|
|
1.0 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with store asset impairments |
|
58.7 |
|
|
|
|
|
|
|
74.7 |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the consolidation within the Company’s warehouse and distribution network in |
|
|
|
|
|
|
|
6.8 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the |
|
|
|
|
|
|
|
36.7 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the planned exit from the Heritage Brands Retail business |
|
8.0 |
|
|
|
|
|
|
|
29.0 |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
933.5 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Special termination benefits expense associated with the |
|
|
|
|
|
|
|
3.0 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial (gain) loss on retirement plans (recorded in non-service related pension and postretirement (income) cost) |
|
(64.5 |
) |
|
|
97.8 |
|
|
|
|
|
(64.5 |
) |
|
|
97.8 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt modification and extinguishment costs |
|
|
|
|
|
|
|
|
|
5.2 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncash gain to write up the Company’s equity investments in |
|
|
|
|
|
|
|
|
|
(113.1 |
) |
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncash loss related to the Speedo transaction (recorded in other noncash loss, net) |
|
|
|
142.0 |
|
|
|
|
|
3.1 |
|
|
|
142.0 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-time expenses recorded on the Company’s equity investments in |
|
|
|
|
|
|
|
|
|
2.1 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impairment of an equity method investment (recorded in equity in net income (loss) of unconsolidated affiliates) |
|
|
|
|
|
|
|
12.3 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expense resulting from the remeasurement of a mandatorily redeemable non-controlling interest in connection with the |
|
2.6 |
|
|
|
6.0 |
|
|
|
|
|
4.9 |
|
|
|
8.6 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Discrete tax benefit related to the write-off of deferred tax liabilities in connection with the Speedo transaction |
|
|
|
(27.8 |
) |
|
|
|
|
|
|
(27.8 |
) |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Discrete tax expense related to the remeasurement of certain net deferred tax liabilities in connection with the 2021 Dutch Tax Plan |
|
33.1 |
|
|
|
|
|
|
|
33.1 |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax effects of the other pre-tax items above(2) |
|
(7.6 |
) |
|
|
(18.7 |
) |
|
|
|
|
(76.4 |
) |
|
|
(58.7 |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income on a non-GAAP basis attributable to |
|
$ |
(27.4 |
) |
|
|
$ |
137.8 |
|
|
|
|
|
$ |
(139.9 |
) |
|
|
$ |
711.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted net (loss) income per common share on a non-GAAP basis attributable to |
|
$ |
(0.38 |
) |
|
|
$ |
1.88 |
|
|
|
|
|
$ |
(1.97 |
) |
|
|
$ |
9.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Please see Note A in Notes to the Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net (loss) income per common share to diluted net (loss) income per common share on a non-GAAP basis. |
(2) |
|
Please see Table 11 for an explanation of the calculation of the tax effects of the above items. |
Reconciliations of GAAP to Non-GAAP Amounts (continued) (In millions) |
||||||||||||||||||||||||
Table 2 - Reconciliations of GAAP earnings (loss) before interest and taxes to earnings (loss) before interest and taxes on a non-GAAP basis |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) before interest and taxes |
|
$ |
26.3 |
|
|
|
$ |
(95.7 |
) |
|
|
|
|
$ |
(1,071.7 |
) |
|
|
$ |
558.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit charges associated with the |
|
|
|
|
|
|
|
|
|
12.9 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit charges associated with the |
|
|
|
5.9 |
|
|
|
|
|
|
|
16.5 |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the |
|
|
|
|
|
|
|
|
|
90.0 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the Socks and Hosiery transaction |
|
|
|
|
|
|
|
|
|
59.8 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the TH |
|
|
|
|
|
|
|
|
|
54.9 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the |
|
|
|
|
|
|
|
|
|
2.8 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the refinancing of the Company’s senior credit facilities |
|
|
|
|
|
|
|
|
|
1.0 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with store asset impairments |
|
58.7 |
|
|
|
|
|
|
|
74.7 |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the consolidation within the Company’s warehouse and distribution network in |
|
|
|
|
|
|
|
6.8 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the |
|
|
|
|
|
|
|
36.7 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the planned exit from the Heritage Brands Retail business |
|
8.0 |
|
|
|
|
|
|
|
29.0 |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
933.5 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Special termination benefits expense associated with the |
|
|
|
|
|
|
|
3.0 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial (gain) loss on retirement plans (recorded in non-service related pension and postretirement (income) cost) |
|
(64.5 |
) |
|
|
97.8 |
|
|
|
|
|
(64.5 |
) |
|
|
97.8 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt modification and extinguishment costs |
|
|
|
|
|
|
|
|
|
5.2 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncash gain to write up the Company’s equity investments in |
|
|
|
|
|
|
|
|
|
(113.1 |
) |
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncash loss related to the Speedo transaction (recorded in other noncash loss, net) |
|
|
|
142.0 |
|
|
|
|
|
3.1 |
|
|
|
142.0 |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
One-time expenses recorded on the Company’s equity investments in |
|
|
|
|
|
|
|
|
|
2.1 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impairment of an equity method investment (recorded in equity in net income (loss) of unconsolidated affiliates) |
|
|
|
|
|
|
|
12.3 |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (loss) before interest and taxes on a non-GAAP basis |
|
$ |
28.5 |
|
|
|
$ |
150.0 |
|
|
|
|
|
$ |
(37.1 |
) |
|
|
$ |
930.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP to Non-GAAP Amounts (continued) (In millions) |
||||||||||||
Table 3 - Reconciliations of GAAP gross profit to gross profit on a non-GAAP basis |
||||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
$ |
1,397.9 |
|
|
|
|
$ |
5,388.4 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Items excluded: |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Gross profit charges associated with the |
|
|
|
|
|
12.9 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Gross profit charges associated with the |
|
5.9 |
|
|
|
|
16.5 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Gross profit on a non-GAAP basis |
|
$ |
1,403.8 |
|
|
|
|
$ |
5,417.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 - Reconciliations of GAAP SG&A expenses to SG&A expenses on a non-GAAP basis |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SG&A expenses |
|
$ |
1,173.7 |
|
|
|
|
|
|
$ |
3,983.2 |
|
|
|
$ |
4,715.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the |
|
|
|
|
|
|
|
|
(90.0 |
) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the Socks and Hosiery transaction |
|
|
|
|
|
|
|
|
(59.8 |
) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the TH |
|
|
|
|
|
|
|
|
(54.9 |
) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the |
|
|
|
|
|
|
|
|
(2.8 |
) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the refinancing of the Company’s senior credit facilities |
|
|
|
|
|
|
|
|
(1.0 |
) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with store asset impairments |
|
(58.7 |
) |
|
|
|
|
|
(74.7 |
) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the consolidation within the Company’s warehouse and distribution network in |
|
|
|
|
|
|
(6.8 |
) |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the |
|
|
|
|
|
|
(36.7 |
) |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Expenses associated with the planned exit from the Heritage Brands Retail business |
|
(8.0 |
) |
|
|
|
|
|
(29.0 |
) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SG&A expenses on a non-GAAP basis |
|
$ |
1,107.0 |
|
|
|
|
|
|
$ |
3,836.0 |
|
|
|
$ |
4,506.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP to Non-GAAP Amounts (continued) (In millions) |
|||||||
Table 5 - Reconciliation of GAAP goodwill and other intangible asset impairments to goodwill and other intangible asset impairments on a non-GAAP basis |
|||||||
|
|
|
|
|
|||
|
|
Year Ended |
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
$ |
933.5 |
|
|
|
|
|
|
|
|
|
|||
Item excluded: |
|
|
|
|
|||
|
|
|
|
|
|||
|
|
(933.5 |
) |
|
|
|
|
|
|
|
|
|
|||
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Table 6 - Reconciliations of GAAP non-service related pension and postretirement (income) cost to non-service related pension and postretirement income on a non-GAAP basis |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Quarter Ended |
|
Year Ended |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-service related pension and postretirement (income) cost |
|
$ |
(68.0 |
) |
|
|
$ |
96.1 |
|
|
|
$ |
(75.9 |
) |
|
|
$ |
90.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Special termination benefits expense associated with the |
|
|
|
|
|
(3.0 |
) |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial gain (loss) on retirement plans |
|
64.5 |
|
|
|
(97.8 |
) |
|
|
64.5 |
|
|
|
(97.8 |
) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-service related pension and postretirement income on a non-GAAP basis |
|
$ |
(3.5 |
) |
|
|
$ |
(1.7 |
) |
|
|
$ |
(14.4 |
) |
|
|
$ |
(7.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Table 7 - Reconciliation of GAAP debt modification and extinguishment costs to debt modification and extinguishment costs on a non-GAAP basis |
|||||||
|
|
|
|
|
|||
|
|
Year Ended |
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
Debt modification and extinguishment costs |
|
$ |
5.2 |
|
|
|
|
|
|
|
|
|
|||
Item excluded: |
|
|
|
|
|||
|
|
|
|
|
|||
Costs incurred associated with the refinancing of the Company’s senior credit facilities |
|
(5.2 |
) |
|
|
|
|
|
|
|
|
|
|||
Debt modification and extinguishment costs on a non-GAAP basis |
|
$ |
— |
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP to Non-GAAP Amounts (continued) (In millions) |
||||||||||||||||||
Table 8 - Reconciliations of GAAP other noncash loss, net to other noncash loss, net on a non-GAAP basis |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Quarter Ended |
|
|
Year Ended |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Other noncash loss, net |
|
$ |
142.0 |
|
|
|
|
$ |
3.1 |
|
|
|
$ |
28.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Noncash gain to write up the Company’s equity investments in |
|
|
|
|
|
|
113.1 |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Noncash loss related to the Speedo transaction |
|
(142.0 |
) |
|
|
|
(3.1 |
) |
|
|
(142.0 |
) |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||||
Other noncash loss, net on a non-GAAP basis |
|
$ |
— |
|
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 9 - Reconciliations of GAAP equity in net income (loss) of unconsolidated affiliates to equity in net income of unconsolidated affiliates on a non-GAAP basis |
|||||||||||
|
|
|
|
|
|
|
|||||
|
|
Year Ended |
|
|
|||||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Equity in net (loss) income of unconsolidated affiliates |
|
$ |
(4.6 |
) |
|
|
$ |
9.6 |
|
|
|
|
|
|
|
|
|
|
|||||
Items excluded: |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
One-time expenses recorded on the Company’s equity investments in |
|
|
|
2.1 |
|
|
|
||||
|
|
|
|
|
|
|
|||||
Impairment of an equity method investment |
|
12.3 |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||||
Equity in net income of unconsolidated affiliates on a non-GAAP basis |
|
$ |
7.7 |
|
|
|
$ |
11.7 |
|
|
|
|
|
|
|
|
|
|
Table 10 - Reconciliations of GAAP interest expense, net to interest expense, net on a non-GAAP basis |
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net |
|
$ |
34.5 |
|
|
|
$ |
30.0 |
|
|
|
|
|
$ |
121.3 |
|
|
|
$ |
114.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Item excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expense resulting from the remeasurement of a mandatorily redeemable non-controlling interest in connection with the |
|
(2.6 |
) |
|
|
(6.0 |
) |
|
|
|
|
(4.9 |
) |
|
|
(8.6 |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, net on a non-GAAP basis |
|
$ |
31.9 |
|
|
|
$ |
24.0 |
|
|
|
|
|
$ |
116.4 |
|
|
|
$ |
106.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of GAAP to Non-GAAP Amounts (continued) (In millions) |
|||||||||||||||||||||||
Table 11 - Reconciliations of GAAP income tax expense (benefit) to income tax expense (benefit) on a non-GAAP basis |
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax expense (benefit) |
|
$ |
49.9 |
|
|
|
$ |
(57.2 |
) |
|
|
|
|
$ |
(55.5 |
) |
|
|
$ |
28.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Discrete tax benefit related to the write-off of deferred tax liabilities in connection with the Speedo transaction |
|
|
|
27.8 |
|
|
|
|
|
|
|
27.8 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Discrete tax expense related to the remeasurement of certain net deferred tax liabilities in connection with the 2021 Dutch Tax Plan |
|
(33.1 |
) |
|
|
|
|
|
|
(33.1 |
) |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tax effects of other pre-tax items identified as non-GAAP exclusions (1) |
|
7.6 |
|
|
|
18.7 |
|
|
|
|
|
76.4 |
|
|
|
58.7 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax expense (benefit) on a non-GAAP basis |
|
$ |
24.4 |
|
|
|
$ |
(10.7 |
) |
|
|
|
|
$ |
(12.2 |
) |
|
|
$ |
115.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The estimated tax effects associated with the Company’s exclusions on a non-GAAP basis are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each pre-tax item that it had identified above as a non-GAAP exclusion to determine if such item is taxable or tax deductible and, if so, in what jurisdiction the tax expense or tax deduction would occur. All of the pre-tax items identified as non-GAAP exclusions were identified as either primarily taxable or tax deductible, with the tax effect taken at the applicable income tax rate in the local jurisdiction, or as non-taxable or non-deductible, in which case the Company assumed no tax effect. |
Notes to Consolidated GAAP Statements of Operations (In millions, except per share data) |
|||||||||||||||||||||||||||
A. The Company computed its diluted net (loss) income per common share as follows: |
|||||||||||||||||||||||||||
|
|
Quarter Ended |
|
|
|
Quarter Ended |
|||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
GAAP |
|
|
|
Non-GAAP |
|
|
|
GAAP |
|
|
|
Non-GAAP |
|
||||||||||||
|
|
Results |
|
Adjustments (1) |
|
Results |
|
|
|
Results |
|
Adjustments (2) |
|
Results |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to |
|
$ |
(57.7) |
|
|
$ |
(30.3) |
|
|
$ |
(27.4) |
|
|
|
|
$ |
(67.4) |
|
|
$ |
(205.2) |
|
|
$ |
137.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares |
|
71.1 |
|
|
|
|
71.1 |
|
|
|
|
72.8 |
|
|
|
|
72.8 |
|
|
||||||||
Weighted average dilutive securities |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
0.4 |
|
|
0.4 |
|
|
|||||||
Total shares |
|
71.1 |
|
|
|
|
71.1 |
|
|
|
|
72.8 |
|
|
|
|
73.2 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted net (loss) income per common share attributable to |
|
$ |
(0.81) |
|
|
|
|
$ |
(0.38) |
|
|
|
|
$ |
(0.93) |
|
|
|
|
$ |
1.88 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Year Ended |
|
|
|
Year Ended |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
GAAP |
|
|
|
Non-GAAP |
|
|
|
GAAP |
|
|
|
Non-GAAP |
|
||||||||||||
|
|
Results |
|
Adjustments (1) |
|
Results |
|
|
|
Results |
|
Adjustments (2) |
|
Results |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to |
|
$ |
(1,136.1) |
|
|
$ |
(996.2) |
|
|
$ |
(139.9) |
|
|
|
|
$ |
417.3 |
|
|
$ |
(294.0) |
|
|
$ |
711.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares |
|
71.2 |
|
|
|
|
71.2 |
|
|
|
|
74.2 |
|
|
|
|
74.2 |
|
|
||||||||
Weighted average dilutive securities |
|
— |
|
|
|
|
— |
|
|
|
|
0.4 |
|
|
|
|
0.4 |
|
|
||||||||
Total shares |
|
71.2 |
|
|
|
|
71.2 |
|
|
|
|
74.6 |
|
|
|
|
74.6 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted net (loss) income per common share attributable to |
|
$ |
(15.96) |
|
|
|
|
$ |
(1.97) |
|
|
|
|
$ |
5.60 |
|
|
|
|
$ |
9.54 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Represents the impact on net loss in the periods ended |
(2) |
|
Represents the impact on net (loss) income in the periods ended |
(3) |
|
Diluted net loss per common share attributable to |
Consolidated Balance Sheets (In millions) |
|||||||||
|
|
|
|
||||||
ASSETS |
|
|
|
||||||
Current Assets: |
|
|
|
||||||
Cash and Cash Equivalents |
$ |
1,651.4 |
|
|
|
$ |
503.4 |
|
|
Receivables |
666.6 |
|
|
|
765.1 |
|
|
||
Inventories |
1,417.1 |
|
|
|
1,615.7 |
|
|
||
Other |
208.6 |
|
|
|
272.8 |
|
|
||
Assets Held For Sale |
— |
|
|
|
237.2 |
|
|
||
Total Current Assets |
3,943.7 |
|
|
|
3,394.2 |
|
|
||
Property, Plant and Equipment |
942.7 |
|
|
|
1,026.8 |
|
|
||
Operating Lease Right-of-Use Assets |
1,564.8 |
|
|
|
1,675.8 |
|
|
||
|
6,472.5 |
|
|
|
7,158.3 |
|
|
||
Other Assets |
369.8 |
|
|
|
375.9 |
|
|
||
|
$ |
13,293.5 |
|
|
|
$ |
13,631.0 |
|
|
|
|
|
|
||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY |
|||||||||
Accounts Payable and Accrued Expenses |
$ |
2,119.9 |
|
|
|
$ |
1,877.1 |
|
|
Current Portion of Operating Lease Liabilities |
421.4 |
|
|
|
363.5 |
|
|
||
Short-Term Borrowings |
— |
|
|
|
49.6 |
|
|
||
Current Portion of Long-Term Debt |
41.1 |
|
|
|
13.8 |
|
|
||
Current Liabilities Related to Assets Held For Sale |
— |
|
|
|
57.1 |
|
|
||
Other Liabilities |
1,039.8 |
|
|
|
1,234.5 |
|
|
||
Long-Term Portion of Operating Lease Liabilities |
1,430.7 |
|
|
|
1,532.0 |
|
|
||
Long-Term Debt |
3,513.7 |
|
|
|
2,693.9 |
|
|
||
Redeemable Non-Controlling Interest |
(3.4 |
) |
|
|
(2.0 |
) |
|
||
Stockholders’ Equity |
4,730.3 |
|
|
|
5,811.5 |
|
|
||
|
$ |
13,293.5 |
|
|
|
$ |
13,631.0 |
|
|
Note: Year over year balances are impacted by changes in foreign currency exchange rates.
|
|
|
|
|
|
|
|
||||
Segment Data |
|
|
|
|
|
|
|
||||
(In millions) |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
REVENUE BY SEGMENT |
|
|
|
|
|
|
|
||||
|
|
Quarter Ended |
|
|
|
Quarter Ended |
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
296.3 |
|
|
|
|
$ |
413.5 |
|
|
Royalty revenue |
|
16.2 |
|
|
|
|
21.5 |
|
|
||
Advertising and other revenue |
|
5.4 |
|
|
|
|
5.3 |
|
|
||
Total |
|
317.9 |
|
|
|
|
440.3 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
764.6 |
|
|
|
|
848.8 |
|
|
||
Royalty revenue |
|
12.6 |
|
|
|
|
11.9 |
|
|
||
Advertising and other revenue |
|
1.3 |
|
|
|
|
4.5 |
|
|
||
Total |
|
778.5 |
|
|
|
|
865.2 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total |
|
|
|
|
|
|
|
||||
Net sales |
|
1,060.9 |
|
|
|
|
1,262.3 |
|
|
||
Royalty revenue |
|
28.8 |
|
|
|
|
33.4 |
|
|
||
Advertising and other revenue |
|
6.7 |
|
|
|
|
9.8 |
|
|
||
Total |
|
1,096.4 |
|
|
|
|
1,305.5 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
250.3 |
|
|
|
|
336.4 |
|
|
||
Royalty revenue |
|
27.0 |
|
|
|
|
34.1 |
|
|
||
Advertising and other revenue |
|
7.1 |
|
|
|
|
11.1 |
|
|
||
Total |
|
284.4 |
|
|
|
|
381.6 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
477.9 |
|
|
|
|
528.4 |
|
|
||
Royalty revenue |
|
14.6 |
|
|
|
|
19.0 |
|
|
||
Advertising and other revenue |
|
4.3 |
|
|
|
|
7.0 |
|
|
||
Total |
|
496.8 |
|
|
|
|
554.4 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total |
|
|
|
|
|
|
|
||||
Net sales |
|
728.2 |
|
|
|
|
864.8 |
|
|
||
Royalty revenue |
|
41.6 |
|
|
|
|
53.1 |
|
|
||
Advertising and other revenue |
|
11.4 |
|
|
|
|
18.1 |
|
|
||
Total |
|
781.2 |
|
|
|
|
936.0 |
|
|
||
|
|
|
|
|
|
|
|
||||
Heritage Brands Wholesale |
|
|
|
|
|
|
|
||||
Net sales |
|
165.3 |
|
|
|
|
288.1 |
|
|
||
Royalty revenue |
|
3.5 |
|
|
|
|
4.2 |
|
|
||
Advertising and other revenue |
|
0.9 |
|
|
|
|
1.1 |
|
|
||
Total |
|
169.7 |
|
|
|
|
293.4 |
|
|
||
|
|
|
|
|
|
|
|
||||
Heritage Brands Retail |
|
|
|
|
|
|
|
||||
Net sales |
|
41.6 |
|
|
|
|
65.0 |
|
|
||
Royalty revenue |
|
0.8 |
|
|
|
|
0.9 |
|
|
||
Advertising and other revenue |
|
0.1 |
|
|
|
|
0.0 |
|
|
||
Total |
|
42.5 |
|
|
|
|
65.9 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total Heritage Brands |
|
|
|
|
|
|
|
||||
Net sales |
|
206.9 |
|
|
|
|
353.1 |
|
|
||
Royalty revenue |
|
4.3 |
|
|
|
|
5.1 |
|
|
||
Advertising and other revenue |
|
1.0 |
|
|
|
|
1.1 |
|
|
||
Total |
|
212.2 |
|
|
|
|
359.3 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total Revenue |
|
|
|
|
|
|
|
||||
Net sales |
|
1,996.0 |
|
|
|
|
2,480.2 |
|
|
||
Royalty revenue |
|
74.7 |
|
|
|
|
91.6 |
|
|
||
Advertising and other revenue |
|
19.1 |
|
|
|
|
29.0 |
|
|
||
Total |
|
$ |
2,089.8 |
|
|
|
|
$ |
2,600.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Segment Data (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
EARNINGS (LOSS) BEFORE INTEREST AND TAXES BY SEGMENT |
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Quarter Ended |
|
|
|
Quarter Ended |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Results |
|
|
|
|
|
|
|
Results |
|
|
|
|
|
||||||||||||||||||
|
|
Under |
|
|
|
Non-GAAP |
|
|
|
Under |
|
|
|
Non-GAAP |
|
||||||||||||||||||
|
|
GAAP |
|
Adjustments(1) |
|
Results |
|
|
|
GAAP |
|
Adjustments(2) |
|
Results |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
$ |
(10.2 |
) |
|
|
$ |
(1.9 |
) |
|
|
$ |
(8.3 |
) |
|
|
|
|
$ |
20.6 |
|
|
|
|
|
$ |
20.6 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
57.4 |
|
|
|
(26.9 |
) |
|
|
84.3 |
|
|
|
|
|
124.0 |
|
|
|
$ |
(3.2 |
) |
|
|
127.2 |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total |
|
47.2 |
|
|
|
(28.8 |
) |
|
|
76.0 |
|
|
|
|
|
144.6 |
|
|
|
(3.2 |
) |
|
|
147.8 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
(21.0 |
) |
|
|
(11.0 |
) |
|
|
(10.0 |
) |
|
|
|
|
22.5 |
|
|
|
|
|
22.5 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
23.0 |
|
|
|
(18.9 |
) |
|
|
41.9 |
|
|
|
|
|
41.1 |
|
|
|
(2.1 |
) |
|
|
43.2 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total |
|
2.0 |
|
|
|
(29.9 |
) |
|
|
31.9 |
|
|
|
|
|
63.6 |
|
|
|
(2.1 |
) |
|
|
65.7 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Heritage Brands Wholesale |
|
(15.6 |
) |
|
|
|
|
(15.6 |
) |
|
|
|
|
(152.4 |
) |
|
|
(142.6 |
) |
|
|
(9.8 |
) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Heritage Brands Retail |
|
(21.2 |
) |
|
|
(8.0 |
) |
|
|
(13.2 |
) |
|
|
|
|
(0.3 |
) |
|
|
|
|
(0.3 |
) |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total Heritage Brands |
|
(36.8 |
) |
|
|
(8.0 |
) |
|
|
(28.8 |
) |
|
|
|
|
(152.7 |
) |
|
|
(142.6 |
) |
|
|
(10.1 |
) |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Corporate |
|
13.9 |
|
|
|
64.5 |
|
|
|
(50.6 |
) |
|
|
|
|
(151.2 |
) |
|
|
(97.8 |
) |
|
|
(53.4 |
) |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total earnings (loss) before interest and taxes |
|
$ |
26.3 |
|
|
|
$ |
(2.2 |
) |
|
|
$ |
28.5 |
|
|
|
|
|
$ |
(95.7 |
) |
|
|
$ |
(245.7 |
) |
|
|
$ |
150.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The adjustments for the quarter ended |
(2) |
|
The adjustments for the quarter ended |
|
|
|
|
|
|
|
|
||||
Segment Data (continued) |
|
|
|
|
|
|
|
||||
(In millions) |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
REVENUE BY SEGMENT |
|
|
|
|
|
|
|
||||
|
|
Year Ended |
|
|
|
Year Ended |
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
901.2 |
|
|
|
|
$ |
1,540.2 |
|
|
Royalty revenue |
|
53.7 |
|
|
|
|
84.1 |
|
|
||
Advertising and other revenue |
|
13.9 |
|
|
|
|
23.6 |
|
|
||
Total |
|
968.8 |
|
|
|
|
1,647.9 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
2,615.6 |
|
|
|
|
2,994.2 |
|
|
||
Royalty revenue |
|
40.1 |
|
|
|
|
49.8 |
|
|
||
Advertising and other revenue |
|
11.9 |
|
|
|
|
19.8 |
|
|
||
Total |
|
2,667.6 |
|
|
|
|
3,063.8 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total |
|
|
|
|
|
|
|
||||
Net sales |
|
3,516.8 |
|
|
|
|
4,534.4 |
|
|
||
Royalty revenue |
|
93.8 |
|
|
|
|
133.9 |
|
|
||
Advertising and other revenue |
|
25.8 |
|
|
|
|
43.4 |
|
|
||
Total |
|
3,636.4 |
|
|
|
|
4,711.7 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
826.8 |
|
|
|
|
1,467.0 |
|
|
||
Royalty revenue |
|
99.8 |
|
|
|
|
148.9 |
|
|
||
Advertising and other revenue |
|
29.0 |
|
|
|
|
53.8 |
|
|
||
Total |
|
955.6 |
|
|
|
|
1,669.7 |
|
|
||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net sales |
|
1,614.6 |
|
|
|
|
1,896.7 |
|
|
||
Royalty revenue |
|
52.2 |
|
|
|
|
74.1 |
|
|
||
Advertising and other revenue |
|
15.9 |
|
|
|
|
27.3 |
|
|
||
Total |
|
1,682.7 |
|
|
|
|
1,998.1 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total |
|
|
|
|
|
|
|
||||
Net sales |
|
2,441.4 |
|
|
|
|
3,363.7 |
|
|
||
Royalty revenue |
|
152.0 |
|
|
|
|
223.0 |
|
|
||
Advertising and other revenue |
|
44.9 |
|
|
|
|
81.1 |
|
|
||
Total |
|
2,638.3 |
|
|
|
|
3,667.8 |
|
|
||
|
|
|
|
|
|
|
|
||||
Heritage Brands Wholesale |
|
|
|
|
|
|
|
||||
Net sales |
|
703.1 |
|
|
|
|
1,248.5 |
|
|
||
Royalty revenue |
|
12.3 |
|
|
|
|
19.2 |
|
|
||
Advertising and other revenue |
|
2.5 |
|
|
|
|
4.2 |
|
|
||
Total |
|
717.9 |
|
|
|
|
1,271.9 |
|
|
||
|
|
|
|
|
|
|
|
||||
Heritage Brands Retail |
|
|
|
|
|
|
|
||||
Net sales |
|
137.4 |
|
|
|
|
253.4 |
|
|
||
Royalty revenue |
|
2.3 |
|
|
|
|
3.8 |
|
|
||
Advertising and other revenue |
|
0.3 |
|
|
|
|
0.4 |
|
|
||
Total |
|
140.0 |
|
|
|
|
257.6 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total Heritage Brands |
|
|
|
|
|
|
|
||||
Net sales |
|
840.5 |
|
|
|
|
1,501.9 |
|
|
||
Royalty revenue |
|
14.6 |
|
|
|
|
23.0 |
|
|
||
Advertising and other revenue |
|
2.8 |
|
|
|
|
4.6 |
|
|
||
Total |
|
857.9 |
|
|
|
|
1,529.5 |
|
|
||
|
|
|
|
|
|
|
|
||||
Total Revenue |
|
|
|
|
|
|
|
||||
Net sales |
|
6,798.7 |
|
|
|
|
9,400.0 |
|
|
||
Royalty revenue |
|
260.4 |
|
|
|
|
379.9 |
|
|
||
Advertising and other revenue |
|
73.5 |
|
|
|
|
129.1 |
|
|
||
Total |
|
$ |
7,132.6 |
|
|
|
|
$ |
9,909.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Segment Data (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(LOSS) EARNINGS BEFORE INTEREST AND TAXES BY SEGMENT |
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Year Ended |
|
|
|
Year Ended |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Results |
|
|
|
|
|
|
|
Results |
|
|
|
|
|
||||||||||||||||||
|
|
Under |
|
|
|
Non-GAAP |
|
|
|
Under |
|
|
|
Non-GAAP |
|
||||||||||||||||||
|
|
GAAP |
|
Adjustments(1) |
|
Results |
|
|
|
GAAP |
|
Adjustments(2) |
|
Results |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
$ |
(130.5 |
) |
|
|
$ |
(16.9 |
) |
|
|
$ |
(113.6 |
) |
|
|
|
|
$ |
93.5 |
|
|
|
$ |
(62.4 |
) |
|
|
$ |
155.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
259.5 |
|
|
|
(30.0 |
) |
|
|
289.5 |
|
|
|
|
|
468.2 |
|
|
|
(11.1 |
) |
|
|
479.3 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total |
|
129.0 |
|
|
|
(46.9 |
) |
|
|
175.9 |
|
|
|
|
|
561.7 |
|
|
|
(73.5 |
) |
|
|
635.2 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
(384.5 |
) |
|
|
(314.6 |
) |
|
|
(69.9 |
) |
|
|
|
|
99.8 |
|
|
|
(91.5 |
) |
|
|
191.3 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
(280.0 |
) |
|
|
(414.7 |
) |
|
|
134.7 |
|
|
|
|
|
153.3 |
|
|
|
(69.7 |
) |
|
|
223.0 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total |
|
(664.5 |
) |
|
|
(729.3 |
) |
|
|
64.8 |
|
|
|
|
|
253.1 |
|
|
|
(161.2 |
) |
|
|
414.3 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Heritage Brands Wholesale |
|
(312.5 |
) |
|
|
(265.2 |
) |
|
|
(47.3 |
) |
|
|
|
|
(84.9 |
) |
|
|
(143.8 |
) |
|
|
58.9 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Heritage Brands Retail |
|
(93.4 |
) |
|
|
(32.8 |
) |
|
|
(60.6 |
) |
|
|
|
|
3.0 |
|
|
|
|
|
3.0 |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total Heritage Brands |
|
(405.9 |
) |
|
|
(298.0 |
) |
|
|
(107.9 |
) |
|
|
|
|
(81.9 |
) |
|
|
(143.8 |
) |
|
|
61.9 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Corporate |
|
(130.3 |
) |
|
|
39.6 |
|
|
|
(169.9 |
) |
|
|
|
|
(174.2 |
) |
|
|
6.6 |
|
|
|
(180.8 |
) |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total (loss) earnings before interest and taxes |
|
$ |
(1,071.7 |
) |
|
|
$ |
(1,034.6 |
) |
|
|
$ |
(37.1 |
) |
|
|
|
|
$ |
558.7 |
|
|
|
$ |
(371.9 |
) |
|
|
$ |
930.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The adjustments for the year ended |
(2) |
|
The adjustments for the year ended |
Reconciliations of 2020 Constant Currency Revenue
(In millions)
As a supplement to the Company’s reported operating results, the Company presents constant currency revenue information, which is a non-GAAP financial measure. The Company presents results in this manner because it is a global company that transacts business in multiple currencies but reports financial information in
The Company calculates constant currency revenue information by translating its foreign revenues for the relevant period into
Constant currency performance should be viewed in addition to, and not in lieu of or as superior to, the Company’s operating performance calculated in accordance with GAAP. The constant currency revenue information presented may not be comparable to similarly described measures reported by other companies.
|
|
GAAP Revenue |
|
% Change |
|||||||||||||
|
|
Quarter Ended |
|
GAAP |
|
Positive Impact of Foreign Exchange |
|
Constant Currency |
|||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
$ |
778.5 |
|
|
$ |
865.2 |
|
|
(10.0) |
% |
|
6.7 |
% |
|
(16.7) |
% |
Total |
|
1,096.4 |
|
|
1,305.5 |
|
|
(16.0) |
% |
|
4.4 |
% |
|
(20.4) |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
496.8 |
|
|
554.4 |
|
|
(10.4) |
% |
|
5.4 |
% |
|
(15.8) |
% |
||
Total |
|
781.2 |
|
|
936.0 |
|
|
(16.5) |
% |
|
3.3 |
% |
|
(19.8) |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Revenue |
|
$ |
2,089.8 |
|
|
$ |
2,600.8 |
|
|
(19.6) |
% |
|
3.5 |
% |
|
(23.1) |
% |
|
|
GAAP Revenue |
|
% Change |
|||||||||||||
|
|
Year Ended |
|
GAAP |
|
Positive Impact of Foreign Exchange |
|
Constant Currency |
|||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Revenue |
|
$ |
7,132.6 |
|
|
$ |
9,909.0 |
|
|
(28.0) |
% |
|
1.4 |
% |
|
(29.4) |
% |
Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts
The Company is presenting its 2021 estimated results on a non-GAAP basis by excluding (i) the costs expected to be incurred in connection with the planned exit from the Heritage Brands Retail business announced in
The 2021 estimated results are presented on both a GAAP and non-GAAP basis. The Company believes presenting these results on a non-GAAP basis provides useful additional information to investors. The Company excludes such amounts that it deems to be non-recurring or non-operational and believes that excluding them (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company, and (ii) assists investors in evaluating the effectiveness of the Company’s operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. The Company uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s Board of Directors and others. The non-GAAP measures should be viewed in addition to, and not in lieu of or superior to, the Company’s operating performance measures calculated in accordance with GAAP. The information presented on a non-GAAP basis may not be comparable to similarly titled measures reported by other companies.
The estimated tax effects associated with the above pre-tax items are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each pre-tax item identified above as a non-GAAP exclusion to determine if such item is taxable or tax deductible, and, if so, in what jurisdiction the tax expense or tax deduction would occur. All of the pre-tax items identified as non-GAAP exclusions were identified as either primarily taxable or tax deductible, with the tax effect taken at the applicable income tax rate in the local jurisdiction, or as non-taxable or non-deductible, in which case the Company assumed no tax effect.
2021 Net Income Per Common Share Reconciliations |
||||
|
|
|
||
|
|
Current Guidance |
||
|
Full Year 2021 (Estimated) |
|
First Quarter 2021 (Estimated) |
|
|
|
|
|
|
GAAP net income per common share attributable to |
|
Approximately |
|
|
Estimated per common share impact of items identified as non-GAAP exclusions |
|
|
|
|
Net income per common share attributable to |
|
Approximately |
|
|
2021 Tax Rate Reconciliations |
|
First Quarter 2021 (Estimated) |
|
|
|
GAAP tax rate |
|
Approximately 50% |
Estimated tax rate impacts from items identified as non-GAAP exclusions |
|
10% |
Tax rate on a non-GAAP basis |
|
Approximately 40% |
The GAAP net income per common share attributable to
|
||||
Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts (continued) |
||||
2021 Constant Currency Revenue Reconciliations |
||||
|
|
Full Year 2021 (Estimated) |
|
First Quarter 2021 (Estimated) |
|
|
|
|
|
GAAP revenue increase |
|
22% to 24% |
|
42% to 44% |
Positive impact of foreign exchange |
|
3% |
|
8% |
Non-GAAP revenue increase on a constant currency basis |
|
19% to 21% |
|
34% to 36% |
Please refer to the section entitled “Reconciliations of 2020 Constant Currency Revenue” for a description of the presentation of constant currency amounts.
Reconciliation of GAAP Diluted Net Loss Per Common Share to Diluted Net Loss Per Common Share on a Non-GAAP Basis |
|||||||||||||||
|
|
First Quarter 2020 |
|||||||||||||
|
|
(Actual) |
|||||||||||||
(In millions, except per share data) |
|
GAAP Results |
|
Adjustments (1) |
|
Non-GAAP Results |
|||||||||
|
|
|
|
|
|
|
|||||||||
Net loss attributable to |
|
$ |
(1,096.8 |
) |
|
|
$ |
(880.5 |
) |
|
|
$ |
(216.3 |
) |
|
Total weighted average shares |
|
71.4 |
|
|
|
|
|
71.4 |
|
|
|||||
|
|
|
|
|
|
|
|||||||||
Diluted net loss per common share attributable to |
|
$ |
(15.37 |
) |
|
|
|
|
$ |
(3.03 |
) |
|
|||
(1) |
|
Represents the impact on net loss in the quarter ended |
(2) |
|
Diluted net loss per common share for the quarter ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005940/en/
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Source: