PVH Corp. Reports 2020 Fourth Quarter and Full Year Results and Provides 2021 Outlook
PVH Corp. (NYSE: PVH) reported a 20% decline in fourth quarter revenue to $2.09 billion, with significant impacts from the COVID-19 pandemic. Non-GAAP loss per share was $(0.38), down from earnings of $1.88 a year prior. The Tommy Hilfiger and Calvin Klein brands saw revenue drops of 16% and 17% respectively. Despite the challenges, CEO Stefan Larsson highlighted strong digital growth and disciplined expense management, ending the year with over $3 billion in liquidity. For 2021, PVH forecasts a revenue increase of 22%-24% compared to 2020 and aims for GAAP earnings of approximately $5.00 per share.
- Strong e-commerce growth, with a 68% increase in digital commerce.
- Improved inventory management, decreasing by 12% year-over-year.
- Projected revenue growth of 22%-24% in 2021 compared to 2020.
- 20% decline in fourth quarter revenue year-over-year.
- Loss per share on a non-GAAP basis of $(0.38), down from earnings of $1.88.
- First quarter 2021 expected to be negatively impacted by ongoing store closures in Europe.
PVH Corp. [NYSE: PVH] reported its 2020 fourth quarter results.
Non-GAAP Amounts:
Amounts stated to be on a non-GAAP basis exclude the items that are defined or described in greater detail near the end of this release under the heading “Non-GAAP Exclusions.” Reconciliations of amounts on a GAAP basis to amounts on a non-GAAP basis are presented after the “Non-GAAP Exclusions” and identify and quantify all excluded items.
CEO Comments:
Commenting on these results, Stefan Larsson, Chief Executive Officer, noted, “We delivered fourth quarter revenue in line with expectations despite more extensive lockdowns in Europe, as we successfully navigated the uncertainty and unprecedented impacts caused by the pandemic to drive towards an accelerated recovery. I want to thank our teams around the world for their tireless efforts this year.”
Mr. Larsson, added, “We remain focused on connecting our core strengths to where the consumer is going – with our biggest brands Calvin Klein and TOMMY HILFIGER, in how we are super charging e-commerce, through our casual assortments, and how we are taking market share in our international businesses. As we look forward, we will increasingly continue to shift our business globally towards these channels and categories. In addition, we executed disciplined expense management, significantly improved our inventory position, and ended the year with over
Fourth Quarter Review:
The Company’s business continued to be impacted negatively by the COVID-19 pandemic in the fourth quarter 2020, with the level of impact varying by region and channel.
-
Direct to Consumer: Total direct to consumer revenue for the fourth quarter declined
20% compared to the prior year period, which included a68% increase in digital commerce. All regions and brand businesses continued to experience strong digital growth and the Company continued to experience positive overall trends in China. Approximately70% of Company-operated stores in Europe and approximately75% of Company-operated stores in Canada were closed temporarily during the quarter as a result of the virus resurgences there.
-
Wholesale: The Company’s wholesale revenue for the fourth quarter declined
19% compared to the prior year period, which included a double digit increase in the Company’s sales to the digital businesses of its traditional and pure play wholesale customers.
-
Inventory: The Company continued to tightly manage its inventory, which decreased
12% as of the end of 2020 compared to the prior year. The Company is carrying approximately$75 million of basic inventory into Spring 2021, a decrease from the Company’s prior projection of approximately$100 million .
Fourth Quarter Consolidated Results:
Fourth quarter revenue decreased
-
A
16% decrease (20% decrease on a constant currency basis) in the Tommy Hilfiger business compared to the prior year period, including a28% decrease in Tommy Hilfiger North America revenue and a10% decrease (17% decrease on a constant currency basis) in Tommy Hilfiger International revenue, which includes the impact of temporary store closures for much of the quarter as a result of the extensive lockdowns throughout Europe. -
A
17% decrease (20% decrease on a constant currency basis) in the Calvin Klein business compared to the prior year period, including a25% decrease in Calvin Klein North America revenue and a10% decrease (16% decrease on a constant currency basis) in Calvin Klein International revenue, which includes the impact of temporary store closures for much of the quarter as a result of the extensive lockdowns throughout Europe. -
A
41% decrease in the Heritage Brands business compared to the prior year period, which included a17% decline resulting from the sale of the Company’s Speedo North America business.
Loss per share on a GAAP basis was
Loss per share on a non-GAAP basis was
Earnings before interest and taxes on a GAAP basis for the quarter was
Earnings before interest and taxes on a non-GAAP basis for the quarter decreased to
Net interest expense on a GAAP basis increased to
The effective tax rate on a GAAP basis for the fourth quarter of 2020 was (608.5)% as compared to
Full Year 2020 Consolidated Results:
The Company’s business during 2020 was impacted significantly by the COVID-19 pandemic, resulting in an unprecedented decline in revenue and earnings, including as a result of
Revenue for 2020 decreased
-
A
23% decrease in the Tommy Hilfiger business compared to 2019, including a41% decrease in Tommy Hilfiger North America revenue and a13% decrease in Tommy Hilfiger International revenue. -
A
28% decrease in the Calvin Klein business compared to 2019, including a43% decrease in Calvin Klein North America revenue and a16% decrease in Calvin Klein International revenue. -
A
44% decrease in the Heritage Brands business compared to 2019, which included a12% decline resulting from the sale of the Company’s Speedo North America business.
Revenue for 2020 included a
Loss per share on a GAAP basis was
Loss per share on a non-GAAP basis was
Loss before interest and taxes on a GAAP basis for 2020 was
Loss before interest and taxes on a non-GAAP basis for 2020 was
Net interest expense on a GAAP basis for 2020 increased to
The effective tax rate on a GAAP basis for 2020 was
2021 Outlook:
The Company is providing its 2021 outlook despite the significant uncertainty due to the COVID-19 pandemic globally and, as such, it could be subject to material change. The Company’s 2021 outlook does not contemplate any new store closures, new lockdowns, or extensions of current lockdowns beyond what is already known. In addition, the Company’s 2021 outlook does not contemplate further supply chain disruptions, including any greater impact beyond the minimal impact currently expected from the shipping disruption occurring as a result of the temporary blockage of the Suez Canal. The Company’s 2021 results could differ materially from its current outlook as a result of the occurrence of any of these uncontemplated events.
The Company expects its 2021 revenue and earnings will continue to be impacted negatively by the pandemic, particularly in the first quarter due to ongoing store closures, predominantly in Europe. Despite these store closures in Europe, the Company expects its international businesses to exceed 2019 pre-pandemic revenue levels in the first half of the year. The North America businesses are expected to remain challenged throughout 2021, as international tourism, which is the source of a significant portion of regional revenue, is not expected to return to any significant level until the end of the year. In addition, both the Company’s GAAP and non-GAAP outlook reflect approximately
The Company continues to tightly manage its inventory and expects gross margin to improve in 2021 compared to 2020, due in large part to a reduction in promotional selling as inventory levels are significantly lower at the end of 2020.
The Company also took actions beginning in 2020 that will continue into 2021 to manage its cost structure proactively, including reducing operating expenses and reallocating resources to support strategic growth areas of the business. As part of these actions, in 2021, the Company will reduce its workforce in certain international markets and reduce its real estate footprint, including reductions in office space and select store closures. These actions are in addition to the previously announced actions taken by the Company to streamline its North American operations to better align its business with the evolving retail landscape, including a reduction in its North America office workforce by approximately
Full Year Guidance
Revenue in 2021 is projected to increase
The Company currently projects that 2021 earnings per share on a GAAP basis will be approximately
The Company estimates that the 2021 effective tax rate will be in a range of
The Company’s estimate of 2021 earnings per share on a non-GAAP basis excludes (i) approximately
First Quarter Guidance
Revenue in the first quarter of 2021 is projected to increase
The Company currently projects that first quarter 2021 earnings per share on a GAAP basis will be in a range of
The Company estimates that the first quarter 2021 effective tax rate will be approximately
The Company’s estimate of first quarter 2021 earnings per share on a non-GAAP basis excludes (i) approximately
Please see the section entitled “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” at the end of this release for further detail and reconciliations of GAAP to non-GAAP amounts discussed in this section.
Non-GAAP Exclusions:
The discussions in this release that refer to non-GAAP amounts exclude the following:
-
Pre-tax costs of approximately
$70 million expected to be incurred in 2021 in connection with actions to streamline the Company’s organization through reductions in its workforce in certain international markets and to reduce its real estate footprint, including reductions in office space and select store closures, of which approximately$45 million is expected to be incurred in the first quarter. -
Pre-tax costs of approximately
$21 million expected to be incurred in 2021 in connection with the planned exit from the Heritage Brands Retail business announced in July 2020 and expected to be completed by mid-2021, of which approximately$10 million is expected to be incurred in the first quarter. -
Pre-tax noncash impairment charges of
$1.02 1 billion recorded in 2020, primarily resulting from the impact of the COVID-19 pandemic on the Company’s business, including$933 million related to goodwill and other intangible assets,$75 million related to store assets, and$12 million related to an equity method investment, of which$962 million was recorded in the first quarter and$59 million was recorded in the fourth quarter. -
Pre-tax costs of
$7 million incurred in the first quarter of 2020 in connection with a consolidation within the Company’s warehouse and distribution network in North America. -
Pre-tax noncash net loss of
$3 million recorded in the first quarter of 2020 related to the April 2020 sale of the Company’s Speedo North America business to Pentland Group PLC, the parent company of the Speedo brand (the “Speedo transaction”) and the resulting deconsolidation of the net assets of the Company’s Speedo North America business. -
Pre-tax expense of
$5 million recorded in 2020 resulting from the remeasurement of a mandatorily redeemable non-controlling interest that was recognized in connection with the Company’s acquisition of the approximately78% interest in Gazal Corporation Limited (“Gazal”) that it did not already own (the “Australia acquisition”), of which$4 million of income was recorded in the first quarter,$5 million of expense was recorded in the second quarter,$1 million of expense was recorded in the third quarter and$3 million of expense was recorded in the fourth quarter. -
Pre-tax costs of
$40 million incurred in 2020 related to the reduction in the Company’s North America office workforce announced in July 2020 (the “North America workforce reduction”), primarily consisting of severance, of which$38 million was recorded in the second quarter and$1 million was recorded in the third quarter. -
Pre-tax costs of
$29 million incurred in 2020 in connection with the planned exit from the Heritage Brands Retail business announced in July 2020 and expected to be completed by mid-2021, consisting of$15 million of severance,$7 million of noncash asset impairments and$7 million of accelerated amortization of lease assets and other costs, of which$12 million was incurred in the second quarter,$9 million was incurred in the third quarter and$8 million was incurred in the fourth quarter. -
Pre-tax gain of
$65 million recorded in the fourth quarter of 2020 related to the recognized actuarial gain on retirement plans. -
Discrete tax expense of
$33 million recorded in the fourth quarter of 2020 related to the remeasurement of certain of the Company’s net deferred tax liabilities in connection with the enactment of legislation in the Netherlands known as the “2021 Dutch Tax Plan,” which became effective on January 1, 2021. -
Pre-tax costs of
$103 million incurred in 2019 related to the restructuring associated with the strategic changes for the 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, of which$70 million was incurred in the first quarter,$29 million was incurred in the second quarter and$3 million was incurred in the third quarter. -
Pre-tax costs of
$55 million incurred in the first quarter of 2019 in connection with the closure of the Company’s TOMMY HILFIGER flagship and anchor stores in the U.S., primarily consisting of noncash lease asset impairments. -
Pre-tax costs of
$6 million incurred in the first quarter of 2019 in connection with the refinancing of the Company’s senior credit facilities. -
Pre-tax costs of
$60 million incurred in the second quarter of 2019 in connection with the agreements to terminate early the licenses for the global Calvin Klein and Tommy Hilfiger North America socks and hosiery businesses in order to consolidate the socks and hosiery businesses for all Company brands in North America in a newly formed joint venture and to bring in house the international Calvin Klein socks and hosiery wholesale businesses. -
Pre-tax noncash gain of
$113 million recorded in the second quarter of 2019 to write up the Company’s equity investments in Gazal and PVH Brands Australia Pty. Limited, a jointly owned and managed joint venture of the Company and Gazal, (“PVH Australia”) to fair value in connection with the Australia acquisition. -
Pre-tax costs of
$21 million incurred in 2019 in connection with the Australia acquisition and the Company’s acquisition of the Tommy Hilfiger retail business in Central and Southeast Asia from the licensee of the business, primarily consisting of noncash valuation adjustments, of which$7 million was incurred in the second quarter,$9 million was incurred in the third quarter and$6 million was incurred in the fourth quarter. -
Pre-tax expense of
$9 million recorded in 2019 resulting from the remeasurement of the Company’s mandatorily redeemable non-controlling interest that was recognized in connection with the Australia acquisition, of which$3 million was recorded in the third quarter and$6 million was recorded in the fourth quarter. -
Pre-tax noncash loss of
$142 million recorded in the fourth quarter of 2019 related to the Speedo transaction and the resulting deconsolidation of the net assets of the Company’s Speedo North America business. -
Pre-tax loss of
$98 million recorded in the fourth quarter of 2019 related to the recognized actuarial loss on retirement plans. -
Discrete tax benefit of
$28 million recorded in the fourth quarter of 2019 related to the write-off of deferred tax liabilities in connection with the Speedo transaction. - Estimated tax effects associated with the above pre-tax items, which are based on the Company’s assessment of deductibility. In making this assessment, the Company evaluated each item that it had identified above as a non-GAAP exclusion to determine if such item is taxable or tax deductible, and if so, in what jurisdiction the tax expense or tax deduction would occur. All items above were identified as either primarily taxable or tax deductible, with the tax effect taken at the applicable income tax rate in the local jurisdiction, or as non-taxable or non-deductible, in which case the Company assumed no tax effect.
As a supplement to the Company’s GAAP results, the Company presents constant currency revenue information, which is a non-GAAP financial measure. The Company presents results in this manner because it is a global company that transacts business in multiple currencies but reports financial information in 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 relevant 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 relevant 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 11 and the sections entitled “Reconciliations of 2020 Constant Currency Revenue” and “Full Year and Quarterly Reconciliations of GAAP to Non-GAAP Amounts” later in this release for reconciliations of GAAP to non-GAAP amounts.
The Company webcasts its conference calls to review its earnings releases. The Company’s conference call to review its fourth quarter earnings release is scheduled for Wednesday, March 31, 2021 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 9663068. 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, earnings, plans, strategies, objectives, expectations and intentions are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company’s ability to realize anticipated benefits and savings from restructuring and similar plans, such as the North America office workforce reduction and the planned exit from the Heritage Brands Retail business announced in July 2020; (iii) 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; (iv) the levels of sales of the Company’s apparel, footwear and related products, both to its wholesale customers and in its retail stores and its directly operated digital commerce sites, 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, consumer sentiment and other factors; (v) the Company’s ability to manage its growth and inventory; (vi) 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 increased tariffs imposed in 2019 and threatened increases in tariffs on goods imported into the U.S. from China and Vietnam, 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; (vii) the availability and cost of raw materials; (viii) 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); (ix) the regulation or prohibition of the transaction of business with specific individuals or entities and their affiliates or goods manufactured in certain regions, such as the listing of a person or entity as a Specially Designated National or Blocked Person by the U.S. Department of the Treasury’s Office of Foreign Assets Control and the issuance of Withhold Release Orders by the U.S. Customs and Border Patrol; (x) 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; (xi) disease epidemics and health-related concerns, such as the current COVID-19 pandemic, which could result in (and, in the case of the COVID-19 pandemic, has resulted in some of the following) supply-chain disruptions due to closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in affected areas, closed stores, reduced consumer traffic and purchasing, as consumers become ill or limit or cease shopping in order to avoid exposure, or governments implement mandatory business closures, travel restrictions or the like to prevent the spread of disease, and market or other changes that could result (or, with respect to the COVID-19 pandemic, could continue to result) in noncash impairments of the Company’s goodwill and other intangible assets, operating lease right-of-use assets, and property, plant and equipment; (xii) 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; (xiii) 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; (xiv) significant fluctuations of the U.S. dollar against foreign currencies in which the Company transacts significant levels of business; (xv) 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; (xvi) the impact of new and revised tax legislation and regulations; and (xvii) 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 following this Safe Harbor Statement, 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 Statements of Operations (In millions, except per share data) |
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Quarter Ended |
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Year Ended |
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1/31/21 |
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2/2/20 |
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1/31/21 |
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2/2/20 |
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Net sales |
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$ |
1,996.0 |
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$ |
2,480.2 |
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$ |
6,798.7 |
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$ |
9,400.0 |
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Royalty revenue |
|
74.7 |
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|
91.6 |
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260.4 |
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|
379.9 |
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Advertising and other revenue |
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19.1 |
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29.0 |
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73.5 |
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129.1 |
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Total revenue |
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$ |
2,089.8 |
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$ |
2,600.8 |
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$ |
7,132.6 |
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$ |
9,909.0 |
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Gross profit on net sales |
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$ |
1,032.5 |
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$ |
1,277.3 |
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$ |
3,442.9 |
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$ |
4,879.4 |
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Gross profit on royalty, advertising and other revenue |
|
93.8 |
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120.6 |
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333.9 |
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509.0 |
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Total gross profit |
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1,126.3 |
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1,397.9 |
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3,776.8 |
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5,388.4 |
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Selling, general and administrative expenses |
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1,173.7 |
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1,257.6 |
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3,983.2 |
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4,715.2 |
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Goodwill and other intangible asset impairments |
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933.5 |
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Non-service related pension and postretirement (income) cost |
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(68.0 |
) |
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96.1 |
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(75.9 |
) |
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|
90.0 |
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Debt modification and extinguishment costs |
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5.2 |
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Other noncash loss, net |
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142.0 |
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3.1 |
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|
|
28.9 |
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Equity in net income (loss) of unconsolidated affiliates |
|
5.7 |
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2.1 |
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|
(4.6 |
) |
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9.6 |
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Earnings (loss) before interest and taxes |
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26.3 |
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|
|
(95.7 |
) |
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(1,071.7 |
) |
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558.7 |
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Interest expense, net |
|
34.5 |
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|
|
30.0 |
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|
|
121.3 |
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|
|
114.7 |
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Pre-tax (loss) income |
|
(8.2 |
) |
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|
(125.7 |
) |
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(1,193.0 |
) |
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|
444.0 |
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Income tax expense (benefit) |
|
49.9 |
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|
|
(57.2 |
) |
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|
|
(55.5 |
) |
|
|
28.9 |
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Net (loss) income |
|
(58.1 |
) |
|
|
(68.5 |
) |
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(1,137.5 |
) |
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415.1 |
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Less: Net loss attributable to redeemable non-controlling interest (1) |
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(0.4 |
) |
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(1.1 |
) |
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(1.4 |
) |
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|
(2.2 |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to PVH Corp. |
|
$ |
(57.7 |
) |
|
|
$ |
(67.4 |
) |
|
|
|
|
$ |
(1,136.1 |
) |
|
|
$ |
417.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted net (loss) income per common share attributable to PVH Corp. (2) |
|
$ |
(0.81 |
) |
|
|
$ |
(0.93 |
) |
|
|
|
|
$ |
(15.96 |
) |
|
|
$ |
5.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||||||
|
|
1/31/21 |
|
2/2/20 |
|
|
|
1/31/21 |
|
2/2/20 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization expense |
|
$ |
85.6 |
|
|
|
$ |
87.3 |
|
|
|
|
|
$ |
325.8 |
|
|
|
$ |
323.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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 |
(2) |
|
Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net (loss) income per common share to diluted net (loss) income per common share on a non-GAAP basis. |
PVH CORP.
Non-GAAP Measures
The Company believes it is useful to investors to present its results for the periods ended January 31, 2021 and February 2, 2020 on a non-GAAP basis by excluding (i) the recognized actuarial gain (loss) on retirement plans in the fourth quarters of 2020 and 2019; (ii) the income (expense) recorded in the first, second, third and fourth quarters of 2020 and the third and fourth quarters of 2019 resulting from the remeasurement of a mandatorily redeemable non-controlling interest that was recognized in connection with the acquisition of the approximately
PVH CORP. Non-GAAP Measures (continued) (In millions, except per share data) |
||||||||||||||||||||||||
The following table presents the non-GAAP measures that are discussed in this release. Please see Tables 1 through 11 for the reconciliations of the GAAP amounts to amounts on a non-GAAP basis. |
||||||||||||||||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||||||
|
|
1/31/21 |
|
2/2/20 |
|
|
|
1/31/21 |
|
2/2/20 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP Measures |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total gross profit (1) |
|
|
|
$ |
1,403.8 |
|
|
|
|
|
|
|
$ |
5,417.8 |
|
|
|
|
||||||
Selling, general and administrative expenses (2) |
|
$ |
1,107.0 |
|
|
|
|
|
|
|
$ |
3,836.0 |
|
|
|
4,506.7 |
|
|
|
|
||||
Goodwill and other intangible asset impairments (3) |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
||||||||||
Non-service related pension and postretirement income (4) |
|
(3.5 |
) |
|
|
(1.7 |
) |
|
|
|
|
(14.4 |
) |
|
|
(7.8 |
) |
|
|
|
||||
Debt modification and extinguishment costs (5) |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||||||||
Other noncash loss, net (6) |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||||
Equity in net income of unconsolidated affiliates (7) |
|
|
|
|
|
|
|
7.7 |
|
|
|
11.7 |
|
|
|
|
||||||||
Earnings (loss) before interest and taxes (8) |
|
28.5 |
|
|
|
150.0 |
|
|
|
|
|
(37.1 |
) |
|
|
930.6 |
|
|
|
|
||||
Interest expense, net (9) |
|
31.9 |
|
|
|
24.0 |
|
|
|
|
|
116.4 |
|
|
|
106.1 |
|
|
|
|
||||
Income tax expense (benefit) (10) |
|
24.4 |
|
|
|
(10.7 |
) |
|
|
|
|
(12.2 |
) |
|
|
115.4 |
|
|
|
|
||||
Net (loss) income attributable to PVH Corp. (11) |
|
(27.4 |
) |
|
|
137.8 |
|
|
|
|
|
(139.9 |
) |
|
|
711.3 |
|
|
|
|
||||
Diluted net (loss) income per common share attributable to PVH Corp. (12) |
|
$ |
(0.38 |
) |
|
|
$ |
1.88 |
|
|
|
|
|
$ |
(1.97 |
) |
|
|
$ |
9.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) |
Please see Table 3 for the reconciliations of GAAP gross profit to gross profit on a non-GAAP basis. |
|
(2) |
Please see Table 4 for the reconciliations of GAAP selling, general and administrative (“SG&A”) expenses to SG&A expenses on a non-GAAP basis. |
|
(3) |
Please see Table 5 for the reconciliation of GAAP goodwill and other intangible asset impairments to goodwill and other intangible asset impairments on a non-GAAP basis. |
|
(4) |
Please see Table 6 for the reconciliations of GAAP non-service related pension and postretirement (income) cost to non-service related pension and postretirement income on a non-GAAP basis. |
|
(5) |
Please see Table 7 for the reconciliation of GAAP debt modification and extinguishment costs to debt modification and extinguishment costs on a non-GAAP basis. |
|
(6) |
Please see Table 8 for the reconciliations of GAAP other noncash loss, net to other noncash loss, net on a non-GAAP basis. |
|
(7) |
Please see Table 9 for the reconciliations of GAAP equity in net income (loss) of unconsolidated affiliates to equity in net income of unconsolidated affiliates on a non-GAAP basis. |
|
(8) |
Please see Table 2 for the reconciliations of GAAP earnings (loss) before interest and taxes to earnings (loss) before interest and taxes on a non-GAAP basis. |
|
(9) |
Please see Table 10 for the reconciliations of GAAP interest expense, net to interest expense, net on a non-GAAP basis. |
|
(10) |
Please see Table 11 for the reconciliations of GAAP income tax expense (benefit) to income tax expense (benefit) on a non-GAAP basis and an explanation of the calculation of the tax effects associated with the pre-tax items identified as non-GAAP exclusions. |
|
(11) |
Please see Table 1 for the reconciliations of GAAP net (loss) income to net (loss) income on a non-GAAP basis. |
|
(12) |
Please see Note A in Notes to Consolidated GAAP Statements of Operations for the reconciliations of GAAP diluted net (loss) income per common share to diluted net (loss) income per common share on a non-GAAP basis. |
PVH CORP. Reconciliations of GAAP to Non-GAAP Amounts (In millions, except per share data) |
||||||||||||||||||||||||
Table 1 - Reconciliations of GAAP net (loss) income to net (loss) income on a non-GAAP basis |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Quarter Ended |
|
|
|
Year Ended |
|
|
||||||||||||||||
|
|
1/31/21 |
|
2/2/20 |
|
|
|
1/31/21 |
|
2/2/20 |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to PVH Corp. |
|
$ |
(57.7 |
) |
|
|
$ |
(67.4 |
) |
|
|
|
|
$ |
(1,136.1 |
) |
|
|
$ |
417.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Diluted net (loss) income per common share attributable to PVH Corp.(1) |
|
$ |
(0.81 |
) |
|
|
$ |
(0.93 |
) |
|
|
|
|
$ |
(15.96 |
) |
|
|
$ |
5.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pre-tax items excluded: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit charges associated with the Calvin Klein restructuring (inventory markdowns) |
|
|
|
|
|
|
|
|
|
12.9 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit charges associated with the Australia and TH CSAP acquisitions (short-lived noncash inventory valuation adjustments) |
|
|
|
5.9 |
|
|
|
|
|
|
|
16.5 |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the Calvin Klein restructuring |
|
|
|
|
|
|
|
|
|
90.0 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SG&A expenses associated with the Socks and Hosiery transaction |
|
|
|
|
|
|
|
|
|
59.8 |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
FAQ
What were PVH's fourth quarter results for 2020?
How did COVID-19 affect PVH Corp's revenue?
What is PVH's outlook for 2021?
Which brands contributed to PVH's revenue decline?
What liquidity position does PVH have?
