- First quarter revenue increased 2%
(increased 6% on a constant currency basis) compared to the prior
year period, in line with previous guidance
- First quarter EPS was:
- GAAP basis: $1.08 compared to guidance
of $0.25 to $0.30, primarily due to a shift in the timing of
restructuring costs
- Non-GAAP basis: $2.46 compared to
guidance of $2.40 to $2.45
- EPS included a negative impact of $0.15
per share related to foreign currency translation compared to
guidance of $0.14
- Full year 2019 EPS outlook:
- GAAP basis: $9.05 to $9.15 compared to
$8.90 to $9.00 previously
- Non-GAAP basis: $10.20 to $10.30
compared to $10.30 to $10.40 previously
- EPS outlook includes an increased
negative impact of $0.32 per share related to foreign currency
translation, compared to $0.22 previously
PVH Corp. [NYSE:PVH] reported its 2019 first quarter
results.
Non-GAAP Amounts:Amounts stated to be on a non-GAAP basis
exclude the items that are described below under the heading
“Non-GAAP Exclusions.” Amounts stated on a constant currency basis
are also deemed to be on a non-GAAP basis. Reconciliations of
amounts on a GAAP basis to amounts on a non-GAAP basis are
presented later in this release and identify and quantify all
excluded items.
CEO Comments:Commenting on these results, Emanuel
Chirico, Chairman and Chief Executive Officer, noted, “We are
pleased with our first quarter 2019 results, as our earnings per
share exceeded the high end of our guidance range. While the global
retail environment was challenging, the power of our diversified
business model and the strength of our brands, global platforms and
teams drove our businesses forward.”
Mr. Chirico continued, “Looking ahead, the volatile and
challenging macroeconomic backdrop has continued into the second
quarter, with particular softness across the U.S. and China retail
landscape. Additionally, further volatility in foreign exchange
rates is expected to pressure our full year earnings per share by
an incremental $0.10 compared to our prior expectations. As such,
we believe it is prudent to factor this into our updated full year
earnings outlook.”
Mr. Chirico concluded, “We remain confident that we are in a
strong position to gain market share as we deliver against our
strategic priorities. We are incredibly excited to strengthen our
management team with the appointment of Stefan Larsson as
President, who will help fuel our global growth. As we continue to
invest in the strategic areas of the business that address the
increasingly dynamic and ever-changing consumer landscape, while
also taking a more nimble approach to react to emerging business
trends, we see a significant opportunity to deliver long-term value
for our stockholders.”
First Quarter Business Review:
Tommy HilfigerRevenue in the Tommy
Hilfiger business for the quarter increased 4% to $1.1 billion
(increased 9% on a constant currency basis) compared to the prior
year period. Tommy Hilfiger International revenue increased 4% to
$680 million (increased 12% on a constant currency basis) compared
to the prior year period, primarily driven by strong performance in
Europe. International comparable store sales increased 9%. Tommy
Hilfiger North America revenue increased 3% to $372 million
(increased 3% on a constant currency basis) compared to the prior
year period, driven by growth in the North America wholesale
business, partially offset by a 4% decline in North America
comparable store sales.
Earnings before interest and taxes on a GAAP basis for the
quarter decreased to $92 million, inclusive of a $9 million
negative impact due to foreign currency translation, from $132
million in the prior year period. Included in earnings before
interest and taxes for the current quarter were costs of $55
million incurred in connection with the closure of the Company’s
TOMMY HILFIGER flagship and anchor stores in the United States (the
“TH U.S. store closures”), primarily consisting of noncash lease
asset impairments. Included in earnings before interest and taxes
for the prior year period were costs of $7 million related to the
April 2016 acquisition of the 55% interest in the Company’s former
Tommy Hilfiger joint venture in China that it did not already own
(the “TH China acquisition”), consisting of noncash amortization of
short-lived assets. Earnings before interest and taxes on a
non-GAAP basis for these periods, as discussed below, exclude these
amounts.
Earnings before interest and taxes on a non-GAAP basis for the
quarter increased to $147 million, inclusive of a $9 million
negative impact due to foreign currency translation, from $139
million in the prior year period. The earnings increase was
principally due to strong performance in the international
business.
Calvin KleinRevenue in the Calvin
Klein business for the quarter of $890 million was flat (increased
4% on a constant currency basis) compared to the prior year period.
Calvin Klein International revenue decreased 2% to $466 million
(increased 5% on a constant currency basis) compared to the prior
year period, as solid growth in Europe was more than offset by the
negative impacts of foreign currency translation and weakness in
China. International comparable store sales decreased 4%. Calvin
Klein North America revenue increased 2% to $424 million (increased
3% on a constant currency basis) compared to the prior year period,
due to an increase in the wholesale business, partially offset by a
5% decline in North America comparable store sales.
Earnings before interest and taxes on a GAAP basis for the
quarter decreased to $48 million, inclusive of a $5 million
negative impact due to foreign currency translation, from $109
million in the prior year period. Included in earnings before
interest and taxes for the current quarter were costs of $70
million in connection with the restructuring associated with the
strategic changes for the Calvin Klein business announced in
January 2019 (the “Calvin Klein restructuring”), consisting of a
$30 million noncash lease asset impairment resulting from the
closure of the Company’s flagship store on Madison Avenue in New
York, New York, $19 million of severance, $15 million of contract
termination and other costs, $5 million of other noncash asset
impairments, and $2 million of inventory markdowns. Earnings before
interest and taxes on a non-GAAP basis for the period, as discussed
below, excludes these amounts.
Earnings before interest and taxes on a non-GAAP basis for the
quarter increased to $119 million, inclusive of a $5 million
negative impact due to foreign currency translation, from $109
million on a GAAP basis in the prior year period (there were no
non-GAAP exclusions in the prior year period). The earnings
increase was principally due to lower expenses.
Heritage BrandsRevenue in the
Heritage Brands business for the quarter increased 1% to $415
million compared to the prior year period, due to an increase in
the wholesale business, partially offset by a 6% decline in
comparable store sales.
Earnings before interest and taxes for the quarter decreased to
$40 million from $42 million in the prior year period, principally
due to gross margin pressure from a more promotional U.S. retail
environment.
First Quarter Consolidated Results:First quarter revenue
increased 2% to $2.4 billion (increased 6% on a constant currency
basis) compared to the prior year period.
Earnings per share on a GAAP basis was $1.08 for the first
quarter of 2019 compared to $2.29 in the prior year period. These
results include the amounts for the applicable period described
under the heading “Non-GAAP Exclusions” later in this release.
Earnings per share on a non-GAAP basis for these periods, as
discussed below, exclude these amounts.
Earnings per share on a non-GAAP basis was $2.46 for the first
quarter of 2019 compared to $2.36 in the prior year period.
Earnings per share on both a GAAP and non-GAAP basis for the first
quarter of 2019 included a $0.15 negative impact related to foreign
currency translation.
Earnings before interest and taxes on a GAAP basis for the
quarter decreased to $135 million, inclusive of a $14 million
negative impact due to foreign currency translation, from $244
million in the prior year period. Included in earnings before
interest and taxes for the current quarter were $131 million of
costs consisting of (i) $70 million related to the Calvin Klein
restructuring, (ii) $55 million in connection with the TH U.S.
store closures, and (iii) $6 million in connection with the
refinancing of the Company’s senior credit facilities. Included in
earnings before interest and taxes for the prior year period were
costs of $7 million related to the TH China acquisition. Earnings
before interest and taxes on a non-GAAP basis for these periods, as
discussed below, exclude these amounts.
Earnings before interest and taxes on a non-GAAP basis for the
quarter increased to $267 million, inclusive of a $14 million
negative impact due to foreign currency translation, compared to
$251 million in the prior year period. The improvement in earnings
was principally driven by growth in the Tommy Hilfiger and Calvin
Klein businesses.
Net interest expense increased to $30 million from $28 million
in the prior year period. The effective tax rate on a GAAP basis
was 22.4% as compared to 17.1% in the prior year period. The
effective tax rate on a non-GAAP basis was 21.4% as compared to
17.3% in the prior year period.
Stock Repurchase Program:During the first quarter of
2019, the Company repurchased approximately 500,000 shares of its
common stock for $61 million (9.5 million shares for $1.1 billion
since inception) under the $2.0 billion stock repurchase program
authorized by the Board of Directors through June 3, 2023. Stock
repurchases under the program may be made from time to time over
the period through open market purchases, accelerated share
repurchase programs, privately negotiated transactions or other
methods, as the Company deems appropriate. Purchases are made based
on a variety of factors, such as price, corporate requirements and
overall market conditions, applicable legal requirements and
limitations, restrictions under the Company’s debt arrangements,
trading restrictions under the Company’s insider trading policy and
other relevant factors. The program may be modified by the Board,
including to increase or decrease the repurchase limitation or
extend, suspend, or terminate the program, at any time, without
prior notice.
2019 Outlook:The Company’s 2019 guidance assumes that two
acquisitions will close in the second quarter of 2019. The first is
the Company’s pending acquisition of the approximately 78% interest
in Gazal Corporation Limited (“Gazal”) that it does not already own
(the “Australia acquisition”). The Company and Gazal jointly own
and manage a joint venture, PVH Brands Australia Pty. Limited ("PVH
Australia"), which licenses and operates businesses under the
“TOMMY HILFIGER,” “CALVIN KLEIN” and “Van Heusen” brands, along
with other licensed and owned brands. PVH Australia will come under
the Company’s full ownership as a result of the Australia
acquisition. The second is the Company’s pending acquisition of the
Tommy Hilfiger retail business in Hong Kong and certain other
countries in Central and Southeast Asia from the Company’s current
licensee in those markets (the “TH CSAP acquisition”). These
pending acquisitions are expected to add approximately $150 million
of revenue in 2019.
The 2019 guidance incorporates the impact on certain of the
Company’s products of tariffs imposed on nearly $200 billion of
total goods imported from China into the U.S. (Tranches 1, 2 and 3)
at 25%. However, the 2019 guidance does not contemplate any future
increase in tariffs on additional goods imported from China into
the U.S.
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.
Full Year GuidanceThe Company
currently projects that 2019 earnings per share on a GAAP basis
will be in a range of $9.05 to $9.15 compared to $9.65 in 2018. The
Company currently projects that 2019 earnings per share on a
non-GAAP basis will be in a range of $10.20 to $10.30 compared to
$9.60 in 2018. Both the GAAP and non-GAAP projections include the
estimated negative impact of approximately $0.32 per share related
to foreign currency translation.
Revenue in 2019 is projected to increase approximately 3%
(increase approximately 5% on a constant currency basis) as
compared to 2018. Revenue for the Tommy Hilfiger business is
projected to increase approximately 6% (increase approximately 9%
on a constant currency basis). Revenue for the Calvin Klein
business is projected to be flat (increase approximately 2% on a
constant currency basis). Revenue for the Heritage Brands business
is projected to be flat.
Net interest expense in 2019 is projected to increase to
approximately $120 million compared to $116 million in 2018. The
Company estimates that the 2019 effective tax rate will be in a
range of 14.5% to 15.5% on a GAAP basis and in a range of 14% to
15% on a non-GAAP basis.
The Company’s estimate of 2019 earnings per share on a non-GAAP
basis excludes approximately $96 million of pre-tax net costs,
consisting of (i) $105 million of pre-tax costs expected to be
incurred in connection with the Calvin Klein restructuring,
consisting of a noncash lease asset impairment resulting from the
closure of the Company’s flagship store on Madison Avenue in New
York, New York, severance, contract termination and other costs,
other noncash asset impairments, and inventory markdowns, (ii) $55
million of pre-tax costs incurred in connection with the TH U.S.
store closures, primarily consisting of noncash lease asset
impairments, (iii) $6 million of pre-tax costs incurred in
connection with the refinancing of the Company’s senior credit
facilities, (iv) an aggregate net pre-tax gain of $70 million
expected to be recorded in connection with the Australia
acquisition and the TH CSAP acquisition, consisting of a noncash
gain to write up the Company's equity investments in Gazal and PVH
Australia to fair value, partially offset by pre-tax costs related
to both pending acquisitions, primarily consisting of noncash
valuation adjustments and amortization of short-lived assets, and
the resulting estimated tax effects of these pre-tax items.
Second Quarter GuidanceThe Company
currently projects that second quarter 2019 earnings per share on a
GAAP basis will be in a range of $2.75 to $2.80 compared to $2.12
in the prior year period. The Company currently projects that
second quarter 2019 earnings per share on a non-GAAP basis will be
in a range of $1.85 to $1.90 compared to $2.18 in the prior year
period. Both the GAAP and non-GAAP projections include an
estimated negative impact of approximately $0.06 per share related
to foreign currency translation.
Revenue in the second quarter of 2019 is projected to be flat
(increase approximately 2% on a constant currency basis) compared
to the prior year period. Revenue for the Tommy Hilfiger business
in the second quarter is projected to increase approximately 3%
(increase approximately 6% on a constant currency basis). Revenue
for the Calvin Klein business in the second quarter is projected to
decrease approximately 4% (decrease approximately 2% on a constant
currency basis). Revenue for the Heritage Brands business in the
second quarter is projected to decrease approximately 2%.
Net interest expense in the second quarter of 2019 is projected
to decrease to approximately $28 million compared to $29 million in
the prior year period. The Company estimates that the second
quarter 2019 effective tax rate will be in a range of 21% to 22% on
a GAAP basis and in a range of 21.5% to 22.5% on a non-GAAP
basis.
The Company’s estimate of second quarter 2019 earnings per share
on a non-GAAP basis excludes a net pre-tax gain of approximately
$85 million, consisting of (i) an aggregate net pre-tax gain of
$105 million expected to be recorded in connection with the
Australia acquisition and the TH CSAP acquisition, consisting of a
noncash gain to write up the Company's equity investments in Gazal
and PVH Australia to fair value, partially offset by pre-tax costs
related to both pending acquisitions, primarily consisting of
noncash valuation adjustments and amortization of short-lived
assets and (ii) $20 million of pre-tax costs expected to be
incurred in connection with the Calvin Klein restructuring, and the
resulting estimated tax effects of these pre-tax costs.
Non-GAAP Exclusions:The discussions in this release that
refer to non-GAAP amounts exclude the following:
- Pre-tax costs of approximately $105
million incurred and expected to be incurred in 2019 related to the
Calvin Klein restructuring, consisting of a noncash lease asset
impairment resulting from the closure of the Company’s flagship
store on Madison Avenue in New 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 and $20 million is expected to be
incurred in the second quarter.
- Pre-tax costs of $55 million incurred
in the first quarter of 2019 in connection with the TH U.S. store
closures, 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.
- Aggregate net pre-tax gain of
approximately $70 million expected to be recorded in 2019 in
connection with the Australia acquisition and the TH CSAP
acquisition, consisting of a noncash gain to write up the Company's
equity investments in Gazal and PVH Australia to fair value,
partially offset by pre-tax costs related to both pending
acquisitions, primarily consisting of noncash valuation adjustments
and amortization of short-lived assets, of which an aggregate net
pre-tax gain of $105 million is expected to be recorded in the
second quarter.
- Pre-tax costs of $41 million incurred
in the fourth quarter of 2018 related to the Calvin Klein
restructuring, consisting of $27 million of severance, $7 million
of noncash asset impairments, $4 million of contract termination
and other costs, and $2 million of inventory markdowns.
- Pre-tax costs of $24 million incurred
in 2018 related to the TH China acquisition, consisting of noncash
amortization of short-lived assets, of which $7 million was
incurred in the first quarter, $7 million was incurred in the
second quarter, $6 million was incurred in the third quarter and $4
million was incurred in the fourth quarter.
- Pre-tax loss of $15 million recorded in
the fourth quarter of 2018 related to the recognized actuarial loss
on retirement plans.
- Discrete tax benefit of $41 million
recorded in the fourth quarter of 2018 related to the remeasurement
of certain of the Company’s net deferred tax liabilities in
connection with the enactment of legislation in the Netherlands
known as the “2019 Dutch Tax Plan.”
- Discrete net tax benefit of $25 million
recorded in the fourth quarter of 2018 to adjust the provisional
net tax benefit recorded in 2017 in connection with the U.S. Tax
Cuts and Jobs Act of 2017, primarily consisting of the release of a
valuation allowance on the Company’s foreign tax credits.
- 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
statutory income tax rate of 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 U.S. dollars.
Foreign currency exchange rate fluctuations affect the amounts
reported by the Company in U.S. dollars with respect to its foreign
revenues. Exchange rate fluctuations can have a significant effect
on reported revenues. The Company believes presenting constant
currency revenue information provides useful information to
investors, as it provides information to assess how its businesses
performed excluding the effects of changes in foreign currency
exchange rates and 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 calculates constant currency revenue information by
translating its foreign revenues for the current year period into
U.S. dollars at the average exchange rates in effect during the
comparable prior year period (rather than at the actual exchange
rates in effect during the current year period).
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 7 and the sections entitled
“Reconciliations of 2019 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 first
quarter earnings release is scheduled for Thursday, May 30, 2019 at
9:00 a.m. EDT. Please log on to the Company’s web site at
www.PVH.com and go to the Events page included in the
Investors section to listen to the live webcast of the conference
call. The webcast will be available for replay for one year after
it is held, commencing approximately two hours after the live
broadcast ends. Please log on to www.PVH.com as described above to
listen to the replay. In addition, an audio replay of the
conference call is available for 48 hours starting approximately
two hours after it is held. The replay of the conference call can
be accessed by calling (domestic) 888-203-1112 and (international)
719-457-0820 and using passcode 4611736. The conference call and
webcast consist of copyrighted material. They may not be
re-recorded, reproduced, re-transmitted, rebroadcast or otherwise
used without the Company’s express written permission. Your
participation represents your consent to these terms and
conditions, which are governed by New York law.
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 and 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 may be considered to be highly leveraged and uses a
significant portion of its cash flows to service its indebtedness,
as a result of which the Company might not have sufficient funds to
operate its businesses in the manner it intends or has operated in
the past; (iii) the levels of sales of the Company’s apparel,
footwear and related products, both to its wholesale customers and
in its retail stores, the levels of sales of the Company’s
licensees at wholesale and retail, and the extent of discounts and
promotional pricing in which the Company and its licensees and
other business partners are required to engage, all of which can be
affected by weather conditions, changes in the economy, fuel
prices, reductions in travel, fashion trends, consolidations,
repositionings and bankruptcies in the retail industries,
repositionings of brands by the Company’s licensors, and other
factors; (iv) the Company’s ability to manage its growth and
inventory, including the Company’s ability to realize benefits from
acquisitions, such as the pending acquisitions referenced in this
press release; (v) quota restrictions, the imposition of
safeguard controls and the imposition of duties or tariffs on goods
from the countries where the Company or its licensees produce goods
under its trademarks, such as the recently increased tariffs and
threatened additional tariffs on goods imported into the U.S. from
China, any of which, among other things, could limit the ability to
produce products in cost-effective countries or in countries that
have the labor and technical expertise needed, or require the
Company to absorb costs or try to pass costs onto consumers, which
could materially impact the Company’s revenue and profitability;
(vi) the availability and cost of raw materials; (vii) the
Company’s ability to adjust timely to changes in trade regulations
and the migration and development of manufacturers (which can
affect where the Company’s products can best be produced); (viii)
changes in available factory and shipping capacity, wage and
shipping cost escalation, civil conflict, war or terrorist acts,
the threat of any of the foregoing, or political or labor
instability in any of the countries where the Company’s or its
licensees’ or other business partners’ products are sold, produced
or are planned to be sold or produced; (ix) disease epidemics
and health related concerns, which could result in closed
factories, reduced workforces, scarcity of raw materials and
scrutiny or embargoing of goods produced in infected areas, as well
as reduced consumer traffic and purchasing, as consumers become ill
or limit or cease shopping in order to avoid exposure;
(x) acquisitions and divestitures and issues arising with
acquisitions, divestitures and proposed transactions, including,
without limitation, the ability to integrate an acquired entity or
business into the Company with no substantial adverse effect on the
acquired entity’s, the acquired business’s or the Company’s
existing operations, employee relationships, vendor relationships,
customer relationships or financial performance, and the ability to
operate effectively and profitably the Company’s continuing
businesses after the sale or other disposal of a subsidiary,
business or the assets thereof; (xi) the failure of the
Company’s licensees to market successfully licensed products or to
preserve the value of the Company’s brands, or their misuse of the
Company’s brands; (xii) significant fluctuations of the U.S. dollar
against foreign currencies in which the Company transacts
significant levels of business; (xiii) the Company’s retirement
plan expenses recorded throughout the year are calculated using
actuarial valuations that incorporate assumptions and estimates
about financial market, economic and demographic conditions, and
differences between estimated and actual results give rise to gains
and losses, which can be significant, that are recorded immediately
in earnings, generally in the fourth quarter of the year; (xiv) the
impact of new and revised tax legislation and regulations,
particularly the U.S. Tax Cuts and Jobs Act of 2017 that might
disproportionately affect the Company as compared to some of its
peers due to the specific tax structure of the Company and its
greater percentage of revenues and income generated outside of the
U.S., and the legislation enacted in the Netherlands known as the
“2019 Dutch Tax Plan”; and (xv) other risks and uncertainties
indicated from time to time in the Company’s filings with the
Securities and Exchange Commission (“SEC”).
This press release includes, and the conference call/webcast
will include, certain non-GAAP financial measures, as defined under
SEC rules. Reconciliations of these measures are included in the
financial information later in this release, as well as in the
Company’s Current Report on Form 8-K furnished to the SEC in
connection with this earnings release, which is available on the
Company’s website at www.PVH.com and on the SEC’s website at
www.sec.gov.
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.
PVH CORP.
Consolidated GAAP Income
Statements
(In millions, except per share
data)
Quarter Ended
5/5/19
5/6/18
Net sales $ 2,237.3 $ 2,193.5 Royalty revenue 89.4 89.4
Advertising and other revenue 29.6 31.7 Total revenue
$ 2,356.3 $ 2,314.6 Gross profit on net sales
$ 1,176.9 $ 1,169.9 Gross profit on royalty, advertising and other
revenue 119.0 121.1 Total gross profit 1,295.9
1,291.0 Selling, general and administrative expenses 1,161.5
1,053.0 Non-service related pension and postretirement
income (2.2 ) (2.5 ) Debt modification and extinguishment
costs 5.2 Equity in net income of unconsolidated affiliates
3.7 3.8 Earnings before interest and taxes
135.1 244.3 Interest expense, net 29.9 28.4
Pre-tax income 105.2 215.9 Income tax expense 23.6
37.0 Net income 81.6 178.9 Less: Net
loss attributable to redeemable non-controlling interest (1) (0.4 )
(0.5 ) Net income attributable to PVH Corp. $ 82.0 $
179.4 Diluted net income per common
share attributable to PVH Corp. (2) $ 1.08 $ 2.29
Quarter Ended
5/5/19
5/6/18
Depreciation and amortization expense $ 76.5 $ 83.2
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 Ethiopia in which the
Company owns a 75% interest. (2) Please see Note A in Notes to
Consolidated GAAP Income Statements for the reconciliations of GAAP
diluted net income per common share to diluted net income per
common share on a non-GAAP basis.
PVH CORP.Non-GAAP Measures(In millions, except per share
data)
The Company believes it is useful to investors to present its
results for the quarters ended May 5, 2019 and May 6, 2018 on a
non-GAAP basis by excluding (i) the costs incurred in the first
quarter of 2019 related to the restructuring associated with the
strategic changes for its Calvin Klein business announced in
January 2019 (the “Calvin Klein restructuring”), consisting of a
noncash lease asset impairment resulting from the closure of the
Company’s flagship store on Madison Avenue in New York, New York;
other noncash asset impairments; severance; contract termination
and other costs; and inventory markdowns; (ii) the costs incurred
in the first quarter of 2019 in connection with the closure of the
Company’s TOMMY HILFIGER flagship and anchor stores in the United
States (the “TH U.S. store closures”), primarily consisting of
noncash lease asset impairments; (iii) the costs incurred in the
first quarter of 2019 in connection with the refinancing of the
Company’s senior credit facilities; (iv) the costs incurred in the
first quarter of 2018 related to the acquisition of the 55%
interest in TH Asia, Ltd., its former joint venture for TOMMY
HILFIGER in China, that it did not already own (the “TH China
acquisition”), consisting of noncash amortization of short-lived
assets; and (v) the tax effects associated with the foregoing
pre-tax items. The Company excludes these amounts because it deems
them to be non-recurring or non-operational and believes that their
exclusion (i) facilitates comparing current results 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
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 the items described above are also the
basis for certain incentive compensation calculations. 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 following table presents the non-GAAP measures that are
discussed in this release. Please see Tables 1 through 7 for the
reconciliations of the GAAP amounts to amounts on a non-GAAP
basis.
Quarter Ended
5/5/19
5/6/18
Non-GAAP Measures Total gross profit (1) $ 1,297.6
Selling, general and administrative expenses (2) 1,037.0 $ 1,046.1
Debt modification and extinguishment costs (3) — Earnings before
interest and taxes (4) 266.5 251.2 Income tax expense (5) 50.6 38.5
Net income attributable to PVH Corp. (6) 186.4 184.8 Diluted net
income per common share attributable to PVH Corp. (7) $ 2.46 $ 2.36
Depreciation and amortization expense (8)
$ 76.3 (1) Please see Table 3 for the
reconciliation 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 debt modification and extinguishment
costs to debt modification and extinguishment costs on a non-GAAP
basis. (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. (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 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 Income Statements for the
reconciliations of GAAP diluted net income per common share to
diluted net income per common share on a non-GAAP basis. (8) Please
see Table 7 for the reconciliation of GAAP depreciation and
amortization expense to depreciation and amortization expense on a
non-GAAP basis.
PVH CORP.
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
5/5/19
5/6/18
Net income attributable to PVH Corp. $ 82.0 $ 179.4
Diluted net income per common share attributable to PVH Corp.(1) $
1.08 $ 2.29 Pre-tax items excluded: Gross profit
charges associated with the Calvin Klein restructuring (inventory
markdowns) 1.7 SG&A expenses associated with the Calvin
Klein restructuring 68.6 SG&A expenses associated with
the TH U.S. store closures 54.9 SG&A expenses associated
with the refinancing of the Company’s senior credit facilities 1.0
SG&A expenses associated with the TH China acquisition
6.9 Debt modification and extinguishment costs 5.2
Tax effects of the above pre-tax items(2) (27.0 ) (1.5 ) Net
income on a non-GAAP basis attributable to PVH Corp. $ 186.4 $
184.8 Diluted net income per common share on a non-GAAP
basis attributable to PVH Corp.(1) $ 2.46 $ 2.36
(1) Please see Note A in Notes to the Consolidated GAAP
Income Statements 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
5/5/19
5/6/18
Earnings before interest and taxes $ 135.1 $ 244.3
Items excluded: Gross profit charges associated with the
Calvin Klein restructuring (inventory markdowns) 1.7
SG&A expenses associated with the Calvin Klein restructuring
68.6 SG&A expenses associated with the TH U.S. store
closures 54.9 SG&A expenses associated with the
refinancing of the Company’s senior credit facilities 1.0
SG&A expenses associated with the TH China acquisition 6.9
Debt modification and extinguishment costs 5.2
Earnings before interest and taxes on a non-GAAP basis $
266.5 $ 251.2
PVH CORP.
Reconciliations of GAAP to Non-GAAP
Amounts (continued)
(In millions)
Table 3 -
Reconciliation of GAAP gross profit to gross profit on a non-GAAP
basis
Quarter Ended
5/5/19
Gross profit $ 1,295.9 Item excluded: Gross
profit charges associated with the Calvin Klein restructuring
(inventory markdowns) 1.7 Gross profit on a non-GAAP basis $
1,297.6
Table 4 -
Reconciliations of GAAP SG&A expenses to SG&A expenses on a
non-GAAP basis
Quarter Ended
5/5/19
5/6/18
SG&A expenses $ 1,161.5 $ 1,053.0 Items excluded:
Expenses associated with the Calvin Klein restructuring
(68.6 ) Expenses associated with the TH U.S. store closures
(54.9 ) Expenses associated with the refinancing of the
Company’s senior credit facilities (1.0 ) Expenses
associated with the TH China acquisition — (6.9 )
SG&A expenses on a non-GAAP basis $ 1,037.0
$ 1,046.1
Table 5 -
Reconciliation of GAAP debt modification and extinguishment costs
to debt modification and extinguishment costs on a non-GAAP
basis
Quarter Ended
5/5/19
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 $ —
PVH CORP.
Reconciliations of GAAP to Non-GAAP
Amounts (continued)
(In millions)
Table 6 - Reconciliations of GAAP income tax expense
to income tax expense on a non-GAAP basis
Quarter Ended
5/5/19
5/6/18
Income tax expense $ 23.6 $ 37.0 Item excluded:
Tax effects of pre-tax items identified as non-GAAP
exclusions (1) 27.0 1.5 Income tax expense on a
non-GAAP basis $ 50.6 $ 38.5 (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 statutory income tax
rate of the local jurisdiction, or as non-taxable or
non-deductible, in which case the Company assumed no tax effect.
Table 7 -
Reconciliation of GAAP depreciation and amortization expense to
depreciation and amortization expense on a non-GAAP
basis
Quarter Ended
5/6/18
Depreciation and amortization expense $ 83.2 Item
excluded: Amortization of short-lived assets associated with
the TH China acquisition (6.9 ) Depreciation and
amortization expense on a non-GAAP basis $ 76.3
PVH CORP.
Notes to Consolidated GAAP Income
Statements
(In millions, except per share
data)
A. The Company computed its diluted net
income per common share as follows:
Quarter Ended Quarter Ended
5/5/19
5/6/18
GAAP Non-GAAP GAAP
Non-GAAP
Results
Adjustments
(1)
Results
Results
Adjustments
(2)
Results
Net income attributable to PVH Corp. $ 82.0 $ (104.4 ) $
186.4 $ 179.4 $ (5.4 ) $ 184.8 Weighted average common
shares 75.2 75.2 77.1 77.1 Weighted average dilutive securities 0.7
0.7 1.1 1.1 Total shares 75.9 75.9
78.2 78.2 Diluted net income per common share
attributable to PVH Corp. $ 1.08 $ 2.46 $ 2.29
$ 2.36 (1) Represents the impact on net income
in the quarter ended May 5, 2019 from the elimination of (i) the
costs related to the Calvin Klein restructuring; (ii) the costs in
connection with the TH U.S. store closures; (iii) the costs in
connection with the refinancing of the Company’s senior credit
facilities; and (iv) the tax effects associated with the foregoing
pre-tax items. Please see Table 1 for the reconciliation of GAAP
net income to net income on a non-GAAP basis. (2) Represents the
impact on net income in the quarter ended May 6, 2018 from the
elimination of the costs related to the TH China acquisition,
consisting of noncash amortization of short-lived assets, and the
resulting tax effect. Please see Table 1 for the reconciliation of
GAAP net income to net income on a non-GAAP basis.
PVH CORP.
Consolidated Balance Sheets
(In millions)
5/5/19
5/6/18
ASSETS Current Assets: Cash and Cash Equivalents $ 494.3 $ 434.5
Receivables 876.0 812.3 Inventories 1,608.4 1,524.9 Other 274.7
269.9 Total Current Assets 3,253.4 3,041.6 Property, Plant
and Equipment 962.3 873.5 Operating Lease Right-of-use Assets (1)
1,606.0 Goodwill and Other Intangible Assets 7,149.7 7,434.9 Other
Assets 383.6 364.6 $ 13,355.0 $ 11,714.6
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’
EQUITY Accounts Payable and Accrued Expenses $ 1,541.6 $ 1,472.6
Current Portion of Operating Lease Liabilities (1) 334.3 Short-Term
Borrowings 299.7 254.5 Current Portion of Long-Term Debt 31.0 —
Other Liabilities 1,128.3 1,408.2 Long-Term Portion of Operating
Lease Liabilities (1) 1,499.4 Long-Term Debt 2,759.4 3,013.2
Redeemable Non-Controlling Interest (0.2 ) 1.5 Stockholders’ Equity
5,761.5 5,564.6 $ 13,355.0 $ 11,714.6 Note:
Year over year balances are impacted by changes in foreign currency
exchange rates. (1) Operating Lease Right-of-use Assets,
Current Portion of Operating Lease Liabilities and Long-Term
Portion of Operating Lease Liabilities as of May 5, 2019 reflect
the impact of the adoption of the new lease accounting guidance in
the first quarter of 2019.
PVH CORP.
Segment Data
(In millions)
REVENUE BY
SEGMENT
Quarter Ended Quarter Ended 5/5/19
5/6/18
Tommy Hilfiger North
America
Net sales $ 347.8 $ 338.9 Royalty revenue 18.7 18.4 Advertising and
other revenue 5.3 3.9 Total 371.8 361.2
Tommy Hilfiger
International
Net sales 662.7 637.2 Royalty revenue 13.2 12.0 Advertising and
other revenue 4.4 5.4 Total 680.3 654.6
Total Tommy
Hilfiger
Net sales 1,010.5 976.1 Royalty revenue
31.9 30.4 Advertising and other revenue
9.7 9.3 Total
1,052.1 1,015.8
Calvin Klein North
America
Net sales 378.4 367.3 Royalty revenue 33.4 34.0 Advertising and
other revenue 12.2 13.2 Total 424.0 414.5
Calvin Klein
International
Net sales 441.1 448.8 Royalty revenue 17.9 18.5 Advertising and
other revenue 6.6 8.2 Total 465.6 475.5
Total Calvin
Klein
Net sales 819.5 816.1 Royalty revenue
51.3 52.5 Advertising and other revenue
18.8 21.4 Total
889.6 890.0
Heritage Brands
Wholesale
Net sales 350.3 340.8 Royalty revenue 5.1 5.4 Advertising and other
revenue 1.0 0.9 Total 356.4 347.1
Heritage Brands
Retail
Net sales 57.0 60.5 Royalty revenue 1.1 1.1 Advertising and other
revenue 0.1 0.1 Total 58.2 61.7
Total Heritage
Brands
Net sales 407.3 401.3 Royalty revenue
6.2 6.5 Advertising and other revenue
1.1 1.0 Total
414.6 408.8
Total
Revenue
Net sales 2,237.3 2,193.5 Royalty
revenue 89.4 89.4 Advertising and other
revenue 29.6 31.7 Total $
2,356.3 $ 2,314.6
PVH CORP.
Segment Data (continued)
(In millions)
EARNINGS BEFORE
INTEREST AND TAXES BY SEGMENT
Quarter Ended Quarter Ended 5/5/19
5/6/18
Results Results Under Non-GAAP
Under Non-GAAP
GAAP
Adjustments(1)
Results
GAAP
Adjustments(2)
Results
Tommy Hilfiger North America $ (14.7 ) $ (54.9 ) $ 40.2 $
40.8 $ 40.8 Tommy Hilfiger International 106.8
106.8 91.2 (6.9 ) 98.1
Total Tommy Hilfiger 92.1
(54.9 ) 147.0
132.0 (6.9 )
138.9 Calvin Klein North America 1.4 (50.9 )
52.3 43.5 43.5 Calvin Klein International 46.9 (19.4
) 66.3 65.1 65.1
Total Calvin Klein 48.3
(70.3 ) 118.6
108.6 108.6
Heritage Brands Wholesale 39.0 39.0 39.8 39.8 Heritage
Brands Retail 1.0 1.0 1.8 1.8
Total Heritage Brands
40.0 40.0
41.6 41.6
Corporate (45.3 ) (6.2 ) (39.1 ) (37.9 ) (37.9 )
Total earnings before interest and taxes $
135.1 $ (131.4 ) $
266.5 $ 244.3 $
(6.9 ) $ 251.2 (1)
The adjustments for the quarter ended May 5, 2019 represent
the elimination of (i) the costs related to the Calvin Klein
restructuring; (ii) the costs in connection with the TH U.S. store
closures; and (iii) the costs in connection with the refinancing of
the Company’s senior credit facilities. (2) The adjustment for the
quarter ended May 6, 2018 represents the elimination of the costs
related to the TH China acquisition, consisting of noncash
amortization of short-lived assets.
PVH CORP.Reconciliations of 2019 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 U.S.
dollars. Foreign currency exchange rate fluctuations affect the
amounts reported by the Company in U.S. dollars with respect to its
foreign revenues. Exchange rate fluctuations can have a significant
effect on reported revenues. The Company believes presenting
constant currency revenue information provides useful information
to investors, as it provides information to assess how its
businesses performed excluding the effects of changes in foreign
currency exchange rates and 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 calculates constant currency revenue information by
translating its foreign revenues for the current year period into
U.S. dollars at the average exchange rates in effect during the
comparable prior year period (rather than at the actual exchange
rates in effect during the current year period).
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
Negative Impact ofForeign
Exchange
ConstantCurrency
5/5/19 5/6/18 Tommy Hilfiger North
America $ 371.8 $ 361.2 2.9 % (0.5 )% 3.4 % Tommy Hilfiger
International 680.3 654.6 3.9 % (8.4 )% 12.3 % Total Tommy Hilfiger
1,052.1 1,015.8 3.6 % (5.6 )% 9.2 % Calvin Klein North
America $ 424.0 $ 414.5 2.3 % (0.5 )% 2.8 % Calvin Klein
International 465.6 475.5 (2.1 )% (7.1 )% 5.0 % Total Calvin Klein
889.6 890.0 — % (4.0 )% 4.0 % Total Revenue $ 2,356.3 $
2,314.6 1.8 % (4.1 )% 5.9 %
PVH CORP.Full Year and Quarterly Reconciliations of
GAAP to Non-GAAP Amounts
The Company is presenting its 2019 estimated results on a
non-GAAP basis by excluding (i) the costs incurred and expected to
be incurred related to the Calvin Klein restructuring, consisting
of a noncash lease asset impairment resulting from the closure of
the Company’s flagship store on Madison Avenue in New
York, New York; other noncash asset impairments; severance;
contract termination and other costs; and inventory markdowns; (ii)
the costs incurred in connection with the TH U.S. store closures,
primarily consisting of noncash lease asset impairments; (iii) the
costs incurred in connection with the refinancing of the Company’s
senior credit facilities; (iv) the aggregate net gain expected to
be recorded in connection with the pending acquisition of the
approximately 78% interest in Gazal Corporation Limited (“Gazal”)
that it does not already own, and the pending acquisition of the
Tommy Hilfiger retail business in Hong Kong and certain other
countries in Central and Southeast Asia from the Company’s current
licensee in those markets, consisting of a noncash gain to write up
the Company's equity investments in Gazal and PVH Brands Australia
Pty. Limited to fair value, partially offset by costs related to
both pending acquisitions, primarily consisting of noncash
valuation adjustments and amortization of short-lived assets; and
(v) the estimated tax effects associated with the foregoing pre-tax
items. The Company has provided the reconciliations set forth below
to present its estimates on a GAAP basis and excluding the
foregoing amounts.
The 2019 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 current results 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 Company’s results excluding the
items described above are also the basis for certain incentive
compensation calculations. The non-GAAP measures should be viewed
in addition to, and not in lieu of or as 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 statutory income tax rate of the local jurisdiction, or as
non-taxable or non-deductible, in which case the Company assumed no
tax effect.
2019 Net Income
Per Common Share Reconciliations
Current Guidance Previous Guidance Full
Year2019(Estimated) Second Quarter2019(Estimated)
Full Year2019(Estimated)
First Quarter2019(Estimated) GAAP net income per
common share attributable to PVH Corp. $9.05 - $9.15 $2.75 - $2.80
$8.90 - $9.00 $0.25 - $0.30 Estimated per common share impact of
items identified as non-GAAP exclusions $(1.15) $0.90 $(1.40)
$(2.15) Net income per common share attributable to PVH Corp. on a
non-GAAP basis $10.20 - $10.30 $1.85 - $1.90 $10.30 - $10.40 $2.40
- $2.45
2019 Tax Rate
Reconciliations
Full Year 2019(Estimated)
Second Quarter 2019(Estimated)
GAAP tax rate 14.5% to 15.5% 21% to 22% Estimated tax rate
impacts from items identified as non-GAAP exclusions 0.5% (0.5)%
Tax rate on a non-GAAP basis 14% to 15% 21.5% to 22.5%
The GAAP net income per common share attributable to PVH Corp.
amounts presented in the above table, as well as the amounts
excluded in providing non-GAAP earnings guidance, would be expected
to change as a result of (i) acquisition, restructuring, divestment
or similar transactions or activities, (ii) the timing and strategy
of restructuring and integration initiatives or other one-time
events, if any, that the Company engages in or suffers during the
period, (iii) any market or other changes affecting the Company’s
expected actuarial gain or loss on retirement plans, (iv) the
imposition of significant tariffs on apparel, footwear and
accessories imported from China or any of the Company’s other
significant sourcing countries, or (v) any discrete tax events
including changes in tax rates or tax law and events arising from
audits or the resolution of uncertain tax positions. The Company
has no current understanding or agreement regarding any such
transaction or definitive plans regarding any such activity
identified in clause (i) or (ii) that has not been announced or
completed. The Company notes that tariffs on certain of its
products imported into the U.S. from China have been recently
increased and there is a threat that additional tariffs will be
imposed as early as June 2019.
2019 Constant
Currency Revenue Reconciliations
Full Year
2019(Estimated)(Consolidated)
Full Year 2019(Estimated)(Tommy
Hilfiger)
Full Year 2019(Estimated)(Calvin
Klein)
SecondQuarter
2019(Estimated)(Consolidated)
SecondQuarter 2019(Estimated)(Tommy
Hilfiger)
SecondQuarter 2019(Estimated)(Calvin
Klein)
GAAP revenue increase (decrease) 3% 6%
—% —% 3% (4)% Negative impact of foreign exchange (2)% (3)%
(2)% (2)% (3)% (2)% Non-GAAP revenue increase
(decrease) on a constant currency basis 5% 9% 2% 2% 6% (2)%
Please refer to the section entitled “Reconciliations of 2019
Constant Currency Revenue” for a description of the presentation of
constant currency amounts.
Reconciliation of
GAAP Diluted Net Income Per Common Share to Diluted Net Income Per
Common Share on a Non-GAAP Basis
Full Year 2018 Second Quarter 2018 (Actual)
(Actual)
(In millions, except
per share data)
ResultsUnderGAAP
Adjustments (1)
Non-GAAPResults
ResultsUnderGAAP
Adjustments (2)
Non-GAAPResults
Net income $ 746.4 $ 4.0 $ 742.4 $ 165.2 $ (4.9 ) $ 170.1
Total weighted average shares 77.3 77.3 77.9
77.9 Diluted net income per common share $ 9.65 $
9.60 $ 2.12 $ 2.18 (1) Represents the
impact on net income in the year ended February 3, 2019 from the
elimination of (i) a $15.0 million recognized actuarial loss on
retirement plans; (ii) $23.6 million of costs related to the TH
China acquisition, consisting of noncash amortization of
short-lived assets; (iii) $40.7 million of costs related to the
Calvin Klein restructuring, primarily consisting of severance,
noncash asset impairments, contract termination and other costs,
and inventory markdowns; (iv) $17.5 million of tax benefits
associated with the foregoing pre-tax items; (v) a $24.7 million
discrete net tax benefit associated with the U.S. Tax Cuts and Jobs
Act of 2017; and (vi) a $41.1 million discrete tax benefit related
to the remeasurement of certain of the Company’s net deferred tax
liabilities in connection with the enactment of legislation in the
Netherlands known as the “2019 Dutch Tax Plan.” (2) Represents the
impact on net income in the quarter ended August 5, 2018 from the
elimination of $6.7 million of costs related to the TH China
acquisition, consisting of noncash amortization of short-lived
assets, and the resulting $1.8 million tax benefit.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190529005820/en/
Dana PerlmanTreasurer, Senior Vice President, Business
Development and Investor Relations(212)
381-3502investorrelations@pvh.com
PVH (NYSE:PVH)
Historical Stock Chart
From Feb 2024 to Mar 2024
PVH (NYSE:PVH)
Historical Stock Chart
From Mar 2023 to Mar 2024