COMPANY ANNOUNCES
-
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)
-
Fourth quarter revenue decreased 5% to
-
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
-
GAAP basis: 8.9% compared to guidance of 9.2%. Results include a pre-tax actuarial loss on retirement plans of
-
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
-
GAAP basis:
-
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.
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
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.” Amounts stated on a constant currency basis also are deemed to be on a non-GAAP basis. Reconciliations of amounts on a GAAP basis to amounts on a non-GAAP basis are presented after the Non-GAAP Exclusions section and identify and quantify all excluded items.
Fourth Quarter Review:
-
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. InNorth America , revenue in theTommy Hilfiger andCalvin 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 inEurope 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 inNorth America discussed above.
-
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
-
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.
-
GAAP basis:
EPS on both a GAAP and a non-GAAP basis for the fourth quarter of 2024 includes the negative impact of
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 inEurope to drive overall higher quality of sales in the region weighed more heavily on theTommy 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.
-
GAAP basis:
EPS on both a GAAP and a non-GAAP basis for 2024 includes the negative impact of
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
The Company will be separately announcing its intention to enter into ASR agreements with one or more dealers in
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 toMr. 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 inAugust 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.
The Company presents constant currency revenue information, which is a non-GAAP financial measure, because it is a global company that transacts business in multiple currencies and reports financial information in
The Company presents non-GAAP financial measures, including constant currency revenue information, as a supplement to its GAAP results. The Company believes presenting non-GAAP financial measures provides useful information to investors, as it provides information to assess how its businesses performed excluding the effects of non-recurring and non-operational amounts and the effects of changes in foreign currency exchange rates, as applicable, and (i) facilitates comparing the results being reported against past and future results by eliminating amounts that it believes are not comparable between periods 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 believes that investors often look at ongoing operations of an enterprise as a measure of assessing 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 Company’s results excluding non-recurring and non-operational amounts are also the basis for certain incentive compensation calculations. Non-GAAP financial measures 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 non-GAAP financial measures presented may not be comparable to similarly described measures reported by other companies.
Please see tables 1 through 6 and the sections entitled “Reconciliations of 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. Reconciliations of the Company’s full year and fourth quarter 2024 previous guidance are included in the third quarter earnings release filed on Form 8-K dated
Conference Call Information:
The Company will host a conference call to discuss its fourth quarter earnings release on
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 divestitures, restructurings and similar plans, such as the headcount cost reduction initiative announced in
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.
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Consolidated GAAP Statements of Operations |
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(In millions, except per share data) |
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Quarter Ended |
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Year Ended |
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Net sales |
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$ |
2,256.8 |
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$ |
2,369.7 |
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|
$ |
8,203.1 |
|
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$ |
8,751.8 |
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Royalty revenue |
|
|
94.4 |
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|
|
95.4 |
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|
|
|
361.2 |
|
|
|
368.2 |
|
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Advertising and other revenue |
|
|
20.4 |
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|
|
24.8 |
|
|
|
|
88.6 |
|
|
|
97.7 |
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Total revenue |
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$ |
2,371.6 |
|
|
$ |
2,489.9 |
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|
|
$ |
8,652.9 |
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$ |
9,217.7 |
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Gross profit |
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$ |
1,381.3 |
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$ |
1,501.2 |
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$ |
5,142.5 |
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$ |
5,363.2 |
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Selling, general and administrative expenses |
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1,156.7 |
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1,216.3 |
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4,411.3 |
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4,542.6 |
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Non-service related pension and postretirement (cost) income |
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(27.9 |
) |
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45.8 |
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|
|
(26.6 |
) |
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|
47.2 |
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Other gain |
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— |
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15.3 |
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19.5 |
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15.3 |
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Equity in net income of unconsolidated affiliates |
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13.5 |
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10.9 |
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48.2 |
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45.7 |
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Earnings before interest and taxes |
|
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210.2 |
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356.9 |
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772.3 |
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928.8 |
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Interest expense, net |
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13.7 |
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20.0 |
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66.6 |
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87.8 |
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Pre-tax income |
|
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196.5 |
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336.9 |
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705.7 |
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841.0 |
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Income tax expense |
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|
39.3 |
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|
65.1 |
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107.2 |
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|
177.4 |
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Net income |
|
$ |
157.2 |
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|
$ |
271.8 |
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$ |
598.5 |
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$ |
663.6 |
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Diluted net income per common share (1) |
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$ |
2.83 |
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$ |
4.55 |
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$ |
10.56 |
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$ |
10.76 |
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Quarter Ended |
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Year Ended |
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Depreciation and amortization expense |
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$ |
70.6 |
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$ |
75.6 |
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$ |
282.2 |
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$ |
298.6 |
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Please see following pages for information related to non-GAAP measures discussed in this release.
(1) |
Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net income per common share to diluted net 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
The following table presents the non-GAAP measures that are discussed in this release. Please see Tables 1 through 6 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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Selling, general and administrative expenses (1) |
|
$ |
1,150.7 |
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$ |
1,211.0 |
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$ |
4,327.1 |
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$ |
4,479.5 |
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Non-service related pension and postretirement income (2) |
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0.3 |
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0.3 |
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1.6 |
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1.7 |
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Other gain (3) |
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— |
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— |
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— |
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Earnings before interest and taxes (4) |
|
|
244.4 |
|
|
301.4 |
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|
|
865.2 |
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|
931.1 |
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Income tax expense (5) |
|
|
49.3 |
|
|
59.3 |
|
|
|
|
133.6 |
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|
184.4 |
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Net income (6) |
|
|
181.4 |
|
|
222.1 |
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|
|
665.0 |
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|
658.9 |
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Diluted net income per common share (7) |
|
$ |
3.27 |
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$ |
3.72 |
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$ |
11.74 |
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$ |
10.68 |
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(1) |
Please see Table 3 for the reconciliations of GAAP selling, general and administrative (“SG&A”) expenses to SG&A expenses on a non-GAAP basis. |
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(2) |
Please see Table 4 for the reconciliations of GAAP non-service related pension and postretirement (cost) income to non-service related pension and postretirement income on a non-GAAP basis. |
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(3) |
Please see Table 5 for the reconciliations of GAAP other gain to other gain on a non-GAAP basis. |
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(4) |
Please see Table 2 for the reconciliations of GAAP earnings before interest and taxes to earnings before interest and taxes on a non-GAAP basis. GAAP operating margin is defined as GAAP earnings before interest and taxes divided by revenue. Operating margin on a non-GAAP basis is defined as earnings before interest and taxes on a non-GAAP basis divided by revenue. |
|
(5) |
Please see Table 6 for the reconciliations of GAAP income tax expense to income tax expense on a non-GAAP basis and an explanation of the calculation of the tax effects associated with the pre-tax items identified as a non-GAAP exclusions. |
|
(6) |
Please see Table 1 for the reconciliations of GAAP net income to net income on a non-GAAP basis. |
|
(7) |
Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net income per common share to diluted net 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 income to net income on a non-GAAP basis |
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
$ |
157.2 |
|
|
$ |
271.8 |
|
|
|
|
$ |
598.5 |
|
|
$ |
663.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share (1) |
|
$ |
2.83 |
|
|
$ |
4.55 |
|
|
|
|
$ |
10.56 |
|
|
$ |
10.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pre-tax items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A expenses associated with the 2022 cost savings initiative |
|
|
|
|
3.5 |
|
|
|
|
|
|
|
61.3 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A expenses associated with the Heritage Brands intimates transaction |
|
|
|
|
1.8 |
|
|
|
|
|
|
|
1.8 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A expenses associated with the Growth Driver 5 Actions |
|
|
6.0 |
|
|
|
|
|
|
|
33.5 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A expenses associated with the Mr. Hilfiger amendment |
|
|
|
|
|
|
|
|
50.7 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Actuarial loss (gain) on retirement plans (recorded in non-service related pension and postretirement (cost) income) |
|
|
28.2 |
|
|
|
(45.5 |
) |
|
|
|
|
28.2 |
|
|
|
(45.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gain in connection with the Growth Driver 5 Actions (recorded in other gain) |
|
|
|
|
|
|
|
|
(9.5 |
) |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gain in connection with the Heritage Brands intimates transaction (recorded in other gain) |
|
|
|
|
(15.3 |
) |
|
|
|
|
(10.0 |
) |
|
|
(15.3 |
) |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Tax effect of the pre-tax items above (2) |
|
|
(10.0 |
) |
|
|
5.8 |
|
|
|
|
|
(26.4 |
) |
|
|
(7.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income on a non-GAAP basis |
|
$ |
181.4 |
|
|
$ |
222.1 |
|
|
|
|
$ |
665.0 |
|
|
$ |
658.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per common share on a non-GAAP basis (1) |
|
$ |
3.27 |
|
|
$ |
3.72 |
|
|
|
|
$ |
11.74 |
|
|
$ |
10.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Please see Note A in Notes to the Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net income per common share to diluted net income per common share on a non-GAAP basis. |
|
(2) |
Please see Table 6 for an explanation of the calculation of the tax effects of the above items. |
Table 2 - Reconciliations of GAAP earnings before interest and taxes to earnings before interest and taxes on a non-GAAP basis | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings before interest and taxes |
|
$ |
210.2 |
|
$ |
356.9 |
|
|
|
|
$ |
772.3 |
|
|
$ |
928.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
SG&A expenses associated with the 2022 cost savings initiative |
|
|
|
|
3.5 |
|
|
|
|
|
|
|
61.3 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
SG&A expenses associated with the Heritage Brands intimates transaction |
|
|
|
|
1.8 |
|
|
|
|
|
|
|
1.8 |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
SG&A expenses associated with the Growth Driver 5 Actions |
|
|
6.0 |
|
|
|
|
|
|
33.5 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
SG&A expenses associated with the Mr. Hilfiger amendment |
|
|
|
|
|
|
|
|
50.7 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Actuarial loss (gain) on retirement plans (recorded in non-service related pension and postretirement (cost) income) |
|
|
28.2 |
|
|
(45.5 |
) |
|
|
|
|
28.2 |
|
|
|
(45.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gain in connection with the Growth Driver 5 Actions (recorded in other gain) |
|
|
|
|
|
|
|
|
(9.5 |
) |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Gain in connection with the Heritage Brands intimates transaction (recorded in other gain) |
|
|
|
|
(15.3 |
) |
|
|
|
|
(10.0 |
) |
|
|
(15.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Earnings before interest and taxes on a non-GAAP basis |
|
$ |
244.4 |
|
$ |
301.4 |
|
|
|
|
$ |
865.2 |
|
|
$ |
931.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reconciliations of GAAP to Non-GAAP Amounts (continued) |
||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||
Table 3 - Reconciliations of GAAP SG&A expenses to SG&A expenses on a non-GAAP basis |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A expenses |
|
$ |
1,156.7 |
|
|
$ |
1,216.3 |
|
|
|
|
$ |
4,411.3 |
|
|
$ |
4,542.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses associated with the 2022 cost savings initiative |
|
|
|
|
(3.5 |
) |
|
|
|
|
|
|
(61.3 |
) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses associated with the Heritage Brands intimates transaction |
|
|
|
|
(1.8 |
) |
|
|
|
|
|
|
(1.8 |
) |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses associated with the Growth Driver 5 Actions |
|
|
(6.0 |
) |
|
|
|
|
|
|
(33.5 |
) |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses associated with the Mr. Hilfiger amendment |
|
|
|
|
|
|
|
|
(50.7 |
) |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
SG&A expenses on a non-GAAP basis |
|
$ |
1,150.7 |
|
|
$ |
1,211.0 |
|
|
|
|
$ |
4,327.1 |
|
|
$ |
4,479.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 - Reconciliations of GAAP non-service related pension and postretirement (cost) income to non-service related pension and postretirement income on a non-GAAP basis |
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-service related pension and postretirement (cost) income |
|
$ |
(27.9 |
) |
|
$ |
45.8 |
|
|
|
|
$ |
(26.6 |
) |
|
$ |
47.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Item excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Actuarial loss (gain) on retirement plans |
|
|
28.2 |
|
|
|
(45.5 |
) |
|
|
|
|
28.2 |
|
|
|
(45.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-service related pension and postretirement income on a non-GAAP basis |
|
$ |
0.3 |
|
|
$ |
0.3 |
|
|
|
|
$ |
1.6 |
|
|
$ |
1.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5 - Reconciliations of GAAP other gain to other gain on a non-GAAP basis |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Other gain |
|
$ |
15.3 |
|
|
|
|
$ |
19.5 |
|
|
$ |
15.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Items excluded: |
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain in connection with the Heritage Brands intimates transaction |
|
|
(15.3 |
) |
|
|
|
|
(10.0 |
) |
|
|
(15.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain in connection with the Growth Driver 5 Actions |
|
|
|
|
|
|
(9.5 |
) |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Other gain on a non-GAAP basis |
|
$ |
— |
|
|
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reconciliations of GAAP to Non-GAAP Amounts (continued) |
|||||||||||||||||
(In millions, except per share data) |
|||||||||||||||||
Table 6 - Reconciliations of GAAP income tax expense to income tax expense on a non-GAAP basis |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax expense |
|
$ |
39.3 |
|
$ |
65.1 |
|
|
|
|
$ |
107.2 |
|
$ |
177.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Item excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tax effect of pre-tax items identified as non-GAAP exclusions (1) |
|
|
10.0 |
|
|
(5.8 |
) |
|
|
|
|
26.4 |
|
|
7.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax expense on a non-GAAP basis |
|
$ |
49.3 |
|
$ |
59.3 |
|
|
|
|
$ |
133.6 |
|
$ |
184.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 evaluates each pre-tax item that it has identified as a non-GAAP exclusion to determine if such item is (i) taxable or tax deductible, in which case the tax effect is taken at the applicable income tax rate in the local jurisdiction, or (ii) non-taxable or non-deductible, in which case the Company assumes no tax effect. |
|
||||||||||||||||||||||
Notes to Consolidated GAAP Statements of Operations |
||||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||||
A. The Company computed its diluted net 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 income |
|
$ |
157.2 |
|
$ |
(24.2 |
) |
|
$ |
181.4 |
|
|
|
$ |
271.8 |
|
$ |
49.7 |
|
$ |
222.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares |
|
|
54.8 |
|
|
|
|
54.8 |
|
|
|
|
58.9 |
|
|
|
|
58.9 |
|
|||
Weighted average dilutive securities |
|
|
0.7 |
|
|
|
|
0.7 |
|
|
|
|
0.8 |
|
|
|
|
0.8 |
|
|||
Total shares |
|
|
55.5 |
|
|
|
|
55.5 |
|
|
|
|
59.7 |
|
|
|
|
59.7 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted net income per common share |
|
$ |
2.83 |
|
|
|
$ |
3.27 |
|
|
|
$ |
4.55 |
|
|
|
$ |
3.72 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
Year Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
|
GAAP |
|
|
|
Non-GAAP |
|
|
|
GAAP |
|
|
|
Non-GAAP |
|
|||||||
|
|
Results |
|
Adjustments (1) |
|
Results |
|
|
|
Results |
|
Adjustments (2) |
|
Results |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income |
|
$ |
598.5 |
|
$ |
(66.5 |
) |
|
$ |
665.0 |
|
|
|
$ |
663.6 |
|
$ |
4.7 |
|
$ |
658.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares |
|
|
56.0 |
|
|
|
|
56.0 |
|
|
|
|
61.0 |
|
|
|
|
61.0 |
|
|||
Weighted average dilutive securities |
|
|
0.7 |
|
|
|
|
0.7 |
|
|
|
|
0.7 |
|
|
|
|
0.7 |
|
|||
Total shares |
|
|
56.7 |
|
|
|
|
56.7 |
|
|
|
|
61.7 |
|
|
|
|
61.7 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Diluted net income per common share |
|
$ |
10.56 |
|
|
|
$ |
11.74 |
|
|
|
$ |
10.76 |
|
|
|
$ |
10.68 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents the impact on net income in the applicable periods ended |
|
(2) |
Represents the impact on net income in the periods ended |
|
|||||
Consolidated Balance Sheets |
|||||
(In millions) |
|||||
|
|
|
|
||
ASSETS |
|
|
|
||
Current Assets: |
|
|
|
||
Cash and Cash Equivalents |
$ |
748.0 |
|
$ |
707.6 |
Receivables |
|
876.3 |
|
|
807.2 |
Inventories |
|
1,508.7 |
|
|
1,419.7 |
Other Assets |
|
354.6 |
|
|
325.2 |
Total Current Assets |
|
3,487.6 |
|
|
3,259.7 |
Property, Plant and Equipment |
|
741.0 |
|
|
862.6 |
Operating Lease Right-of-Use Assets |
|
1,157.5 |
|
|
1,213.8 |
|
|
5,281.0 |
|
|
5,419.5 |
Other Assets |
|
366.1 |
|
|
417.3 |
TOTAL ASSETS |
$ |
11,033.2 |
|
$ |
11,172.9 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||
Accounts Payable and Accrued Expenses |
$ |
1,941.9 |
|
$ |
1,905.1 |
Current Portion of Operating Lease Liabilities |
|
289.1 |
|
|
288.9 |
Short-Term Borrowings |
|
— |
|
|
— |
Current Portion of Long-Term Debt |
|
510.8 |
|
|
577.5 |
Other Liabilities |
|
559.7 |
|
|
615.0 |
Long-Term Portion of Operating Lease Liabilities |
|
1,011.3 |
|
|
1,075.8 |
Long-Term Debt |
|
1,579.9 |
|
|
1,591.7 |
Stockholders’ Equity |
|
5,140.5 |
|
|
5,118.9 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
11,033.2 |
|
$ |
11,172.9 |
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 |
|
$ |
367.1 |
|
|
|
$ |
371.5 |
|
Royalty revenue |
|
|
28.8 |
|
|
|
|
24.1 |
|
Advertising and other revenue |
|
|
5.4 |
|
|
|
|
5.0 |
|
Total |
|
|
401.3 |
|
|
|
|
400.6 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Net sales |
|
|
861.6 |
|
|
|
|
932.2 |
|
Royalty revenue |
|
|
14.9 |
|
|
|
|
13.4 |
|
Advertising and other revenue |
|
|
4.3 |
|
|
|
|
5.0 |
|
Total |
|
|
880.8 |
|
|
|
|
950.6 |
|
|
|
|
|
|
|
|
|
||
Total |
|
|
|
|
|
|
|
||
Net sales |
|
|
1,228.7 |
|
|
|
|
1,303.7 |
|
Royalty revenue |
|
|
43.7 |
|
|
|
|
37.5 |
|
Advertising and other revenue |
|
|
9.7 |
|
|
|
|
10.0 |
|
Total |
|
|
1,282.1 |
|
|
|
|
1,351.2 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Net sales |
|
|
322.9 |
|
|
|
|
304.8 |
|
Royalty revenue |
|
|
38.8 |
|
|
|
|
44.1 |
|
Advertising and other revenue |
|
|
8.8 |
|
|
|
|
11.1 |
|
Total |
|
|
370.5 |
|
|
|
|
360.0 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Net sales |
|
|
661.6 |
|
|
|
|
687.0 |
|
Royalty revenue |
|
|
11.7 |
|
|
|
|
13.7 |
|
Advertising and other revenue |
|
|
1.9 |
|
|
|
|
3.7 |
|
Total |
|
|
675.2 |
|
|
|
|
704.4 |
|
|
|
|
|
|
|
|
|
||
Total |
|
|
|
|
|
|
|
||
Net sales |
|
|
984.5 |
|
|
|
|
991.8 |
|
Royalty revenue |
|
|
50.5 |
|
|
|
|
57.8 |
|
Advertising and other revenue |
|
|
10.7 |
|
|
|
|
14.8 |
|
Total |
|
|
1,045.7 |
|
|
|
|
1,064.4 |
|
|
|
|
|
|
|
|
|
||
Heritage Brands Wholesale |
|
|
|
|
|
|
|
||
Net sales |
|
|
43.6 |
|
|
|
|
74.2 |
|
Royalty revenue |
|
|
0.2 |
|
|
|
|
0.1 |
|
Advertising and other revenue |
|
|
— |
|
|
|
|
— |
|
Total |
|
|
43.8 |
|
|
|
|
74.3 |
|
|
|
|
|
|
|
|
|
||
Total Revenue |
|
|
|
|
|
|
|
||
Net sales |
|
|
2,256.8 |
|
|
|
|
2,369.7 |
|
Royalty revenue |
|
|
94.4 |
|
|
|
|
95.4 |
|
Advertising and other revenue |
|
|
20.4 |
|
|
|
|
24.8 |
|
Total |
|
$ |
2,371.6 |
|
|
|
$ |
2,489.9 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Segment Data (continued) |
|||||||||||||||||||||||||||
(In millions) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EARNINGS 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 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
$ |
54.9 |
|
|
$ |
(1.4 |
) |
|
$ |
56.3 |
|
|
|
|
$ |
38.5 |
|
|
$ |
(0.9 |
) |
|
$ |
39.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
123.0 |
|
|
|
(1.8 |
) |
|
|
124.8 |
|
|
|
|
|
164.1 |
|
|
|
(1.4 |
) |
|
|
165.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
177.9 |
|
|
|
(3.2 |
) |
|
|
181.1 |
|
|
|
|
|
202.6 |
|
|
|
(2.3 |
) |
|
|
204.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
35.4 |
|
|
|
(1.8 |
) |
|
|
37.2 |
|
|
|
|
|
36.2 |
|
|
|
(0.6 |
) |
|
|
36.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
71.9 |
|
|
|
— |
|
|
|
71.9 |
|
|
|
|
|
110.5 |
|
|
|
(0.6 |
) |
|
|
111.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
107.3 |
|
|
|
(1.8 |
) |
|
|
109.1 |
|
|
|
|
|
146.7 |
|
|
|
(1.2 |
) |
|
|
147.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Heritage Brands Wholesale |
|
|
3.2 |
|
|
|
— |
|
|
|
3.2 |
|
|
|
|
|
17.8 |
|
|
|
13.5 |
|
|
|
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate |
|
|
(78.2 |
) |
|
|
(29.2 |
) |
|
|
(49.0 |
) |
|
|
|
|
(10.2 |
) |
|
|
45.5 |
|
|
|
(55.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total earnings before interest and taxes |
|
$ |
210.2 |
|
|
$ |
(34.2 |
) |
|
$ |
244.4 |
|
|
|
|
$ |
356.9 |
|
|
$ |
55.5 |
|
|
$ |
301.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
$ |
1,252.8 |
|
|
|
$ |
1,262.7 |
|
Royalty revenue |
|
|
97.8 |
|
|
|
|
88.5 |
|
Advertising and other revenue |
|
|
20.6 |
|
|
|
|
20.5 |
|
Total |
|
|
1,371.2 |
|
|
|
|
1,371.7 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Net sales |
|
|
3,142.9 |
|
|
|
|
3,376.3 |
|
Royalty revenue |
|
|
58.7 |
|
|
|
|
58.6 |
|
Advertising and other revenue |
|
|
16.9 |
|
|
|
|
18.0 |
|
Total |
|
|
3,218.5 |
|
|
|
|
3,452.9 |
|
|
|
|
|
|
|
|
|
||
Total |
|
|
|
|
|
|
|
||
Net sales |
|
|
4,395.7 |
|
|
|
|
4,639.0 |
|
Royalty revenue |
|
|
156.5 |
|
|
|
|
147.1 |
|
Advertising and other revenue |
|
|
37.5 |
|
|
|
|
38.5 |
|
Total |
|
|
4,589.7 |
|
|
|
|
4,824.6 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Net sales |
|
|
1,120.0 |
|
|
|
|
1,112.4 |
|
Royalty revenue |
|
|
155.1 |
|
|
|
|
165.2 |
|
Advertising and other revenue |
|
|
40.9 |
|
|
|
|
47.0 |
|
Total |
|
|
1,316.0 |
|
|
|
|
1,324.6 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Net sales |
|
|
2,481.4 |
|
|
|
|
2,523.0 |
|
Royalty revenue |
|
|
49.2 |
|
|
|
|
55.0 |
|
Advertising and other revenue |
|
|
10.1 |
|
|
|
|
11.9 |
|
Total |
|
|
2,540.7 |
|
|
|
|
2,589.9 |
|
|
|
|
|
|
|
|
|
||
Total |
|
|
|
|
|
|
|
||
Net sales |
|
|
3,601.4 |
|
|
|
|
3,635.4 |
|
Royalty revenue |
|
|
204.3 |
|
|
|
|
220.2 |
|
Advertising and other revenue |
|
|
51.0 |
|
|
|
|
58.9 |
|
Total |
|
|
3,856.7 |
|
|
|
|
3,914.5 |
|
|
|
|
|
|
|
|
|
||
Heritage Brands Wholesale |
|
|
|
|
|
|
|
||
Net sales |
|
|
206.0 |
|
|
|
|
477.4 |
|
Royalty revenue |
|
|
0.4 |
|
|
|
|
0.9 |
|
Advertising and other revenue |
|
|
0.1 |
|
|
|
|
0.3 |
|
Total |
|
|
206.5 |
|
|
|
|
478.6 |
|
|
|
|
|
|
|
|
|
||
Total Revenue |
|
|
|
|
|
|
|
||
Net sales |
|
|
8,203.1 |
|
|
|
|
8,751.8 |
|
Royalty revenue |
|
|
361.2 |
|
|
|
|
368.2 |
|
Advertising and other revenue |
|
|
88.6 |
|
|
|
|
97.7 |
|
Total |
|
$ |
8,652.9 |
|
|
|
$ |
9,217.7 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Segment Data (continued) |
|||||||||||||||||||||||||||
(In millions) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
$ |
146.2 |
|
|
$ |
(19.9 |
) |
|
$ |
166.1 |
|
|
|
|
$ |
93.5 |
|
|
$ |
(12.7 |
) |
|
$ |
106.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
325.1 |
|
|
|
(48.2 |
) |
|
|
373.3 |
|
|
|
|
|
454.6 |
|
|
|
(17.3 |
) |
|
|
471.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
471.3 |
|
|
|
(68.1 |
) |
|
|
539.4 |
|
|
|
|
|
548.1 |
|
|
|
(30.0 |
) |
|
|
578.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
149.9 |
|
|
|
(3.2 |
) |
|
|
153.1 |
|
|
|
|
|
107.6 |
|
|
|
(9.1 |
) |
|
|
116.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
327.6 |
|
|
|
(7.1 |
) |
|
|
334.7 |
|
|
|
|
|
386.0 |
|
|
|
(10.8 |
) |
|
|
396.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total |
|
|
477.5 |
|
|
|
(10.3 |
) |
|
|
487.8 |
|
|
|
|
|
493.6 |
|
|
|
(19.9 |
) |
|
|
513.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Heritage Brands Wholesale |
|
|
36.4 |
|
|
|
10.0 |
|
|
|
26.4 |
|
|
|
|
|
39.3 |
|
|
|
5.7 |
|
|
|
33.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Corporate |
|
|
(212.9 |
) |
|
|
(24.5 |
) |
|
|
(188.4 |
) |
|
|
|
|
(152.2 |
) |
|
|
41.9 |
|
|
|
(194.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total earnings before interest and taxes |
|
$ |
772.3 |
|
|
$ |
(92.9 |
) |
|
$ |
865.2 |
|
|
|
|
$ |
928.8 |
|
|
$ |
(2.3 |
) |
|
$ |
931.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The adjustments for the year ended |
|
(2) |
The adjustments for the year ended |
Reconciliations of 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 and 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.
Reconciliations of 2024 Constant Currency Revenue |
|
||||||||||||||
|
|
|
|||||||||||||
|
|
GAAP Revenue |
|
% Change |
|||||||||||
|
|
Quarter Ended |
|
GAAP |
|
Negative Impact of Foreign Exchange |
|
Constant Currency |
|||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
880.8 |
|
$ |
950.6 |
|
(7.3 |
)% |
|
(3.1 |
)% |
|
(4.2 |
)% |
Total |
|
|
1,282.1 |
|
|
1,351.2 |
|
(5.1 |
)% |
|
(2.4 |
)% |
|
(2.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
675.2 |
|
|
704.4 |
|
(4.1 |
)% |
|
(3.5 |
)% |
|
(0.6 |
)% |
Total |
|
|
1,045.7 |
|
|
1,064.4 |
|
(1.8 |
)% |
|
(2.6 |
)% |
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total International Revenue |
|
|
1,556.0 |
|
|
1,655.0 |
|
(6.0 |
)% |
|
(3.4 |
)% |
|
(2.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Revenue |
|
$ |
2,371.6 |
|
$ |
2,489.9 |
|
(4.8 |
)% |
|
(2.5 |
)% |
|
(2.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Owned and Operated Retail Stores |
|
$ |
1,055.0 |
|
$ |
1,094.8 |
|
(3.6 |
)% |
|
(2.5 |
)% |
|
(1.1 |
)% |
Owned and Operated Digital Commerce |
|
|
248.4 |
|
|
276.0 |
|
(10.0 |
)% |
|
(2.1 |
)% |
|
(7.9 |
)% |
Total Direct-to-Consumer |
|
$ |
1,303.4 |
|
$ |
1,370.8 |
|
(4.9 |
)% |
|
(2.5 |
)% |
|
(2.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Wholesale |
|
$ |
953.4 |
|
$ |
998.9 |
|
(4.6 |
)% |
|
(2.6 |
)% |
|
(2.0 |
)% |
|
|
GAAP Revenue |
|
% Change |
|||||||||||
|
|
Year Ended |
|
GAAP |
|
Negative Impact of Foreign Exchange |
|
Constant Currency |
|||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
$ |
3,218.5 |
|
$ |
3,452.9 |
|
(6.8 |
)% |
|
(0.8 |
)% |
|
(6.0 |
)% |
Total |
|
|
4,589.7 |
|
|
4,824.6 |
|
(4.9 |
)% |
|
(0.7 |
)% |
|
(4.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
2,540.7 |
|
|
2,589.9 |
|
(1.9 |
)% |
|
(1.4 |
)% |
|
(0.5 |
)% |
Total |
|
|
3,856.7 |
|
|
3,914.5 |
|
(1.5 |
)% |
|
(1.0 |
)% |
|
(0.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Revenue |
|
$ |
8,652.9 |
|
$ |
9,217.7 |
|
(6.1 |
)% |
|
(0.8 |
)% |
|
(5.3 |
)% |
|
||
Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts |
||
Reconciliation of 2025 Constant Currency Revenue |
||
|
|
|
|
|
|
|
|
First Quarter 2025 (Estimated) |
|
|
|
GAAP revenue change |
|
Flat to (2)% |
Impact of foreign exchange |
|
Flat to (1)% |
Non-GAAP revenue change on a constant currency basis |
|
Flat to (1)% |
Reconciliation of GAAP Diluted Net Income Per Common Share to Diluted Net Income Per Common Share on a Non-GAAP Basis |
|||||||||
|
|
|
|
|
|
|
|||
|
|
First Quarter 2024 |
|||||||
|
|
(Actual) |
|||||||
(In millions, except per share data) |
|
Results Under GAAP |
|
Adjustments (1) |
|
Non-GAAP Results |
|||
|
|
|
|
|
|
|
|||
Net income |
|
$ |
151.4 |
|
$ |
8.5 |
|
$ |
142.9 |
Total weighted average shares |
|
|
58.4 |
|
|
|
|
58.4 |
|
|
|
|
|
|
|
|
|||
Diluted net income per common share |
|
$ |
2.59 |
|
|
|
$ |
2.45 |
(1) |
Represents the impact on net income in the quarter ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250331154201/en/
Investor Contact:
investorrelations@pvh.com
Media Contact:
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Source: