Memo from our CEO

We posted solid underlying financial
performance in 2015, which we attribute
to our long term approach of managing
our company.

Manny Chirico

2015 was a year of execution for PVH. We stayed focused on our top strategic priorities and our commitment to invest in our brands and operating platforms. We collaborated across our businesses by sharing innovation and best practices, while exercising sustainable business practices. We believe that our brands, led by Calvin Klein and Tommy Hilfiger, continue to be strong and position us well in the marketplace against our competition.

With the evolving retail landscape and more globally aware consumers, execution and differentiation are critical to driving a successful business model and PVH has been at the forefront of the rapidly changing environment. This past year further highlighted the complexities that we, along with other global apparel companies, increasingly have to address, including the volatile macroeconomic environment, the shift in consumer buying habits among retail channels, changes in consumer spending habits and the impact of the strengthening U.S. dollar against foreign currencies. The strengthening U.S. dollar has been a particular headwind, as nearly two-thirds of our earnings before interest and taxes on a non-GAAP basis are generated from jurisdictions outside of the United States. Our people continue to be our greatest asset and our teams have been successfully adapting to and navigating through these challenges.

Despite all the challenges, I am pleased to say that we saw great improvements across many of our businesses in 2015, as we executed against our key strategies, exceeded our revenue and earnings per share guidance and made sound investment decisions to enhance stockholder value over the long-term. We concentrated on the importance of consumer engagement and built strategies to respond to what we believe our consumers want. We elevated our products through the use of new technical and functional fabrics and features, and improved the quality of our products and how we interact with consumers. Further, we enhanced our digital commerce capabilities by delivering improved navigation and by making sure styles and sizes were available through our dynamic supply chain, including adding replenishment programs to certain categories to always be in stock. Lastly, as an industry leader, we continued to recognize the great responsibility and opportunity to make positive impacts – focusing on ensuring safe workplaces, preserving the environment, empowering people and supporting communities in which we work and live.

We attribute our solid performance, even during challenging economic climates, to our long-term approach of managing our company. Each of our businesses operates in line with its brand vision and lays out its strategic objectives and associated growth drivers, as well as aligns with our broader corporate initiatives. Our commitment to our consumers is universal and we seek to inspire them across all of the markets where we operate. Throughout our company, we are also dedicated to corporate responsibility, which we believe serves as a key competitive advantage as we strive to deliver future growth and stockholder value.

As always, I would like to thank our over 30,000 associates around the world for their talent, dedication and another year of excellent execution. I believe that our people are the best in the industry and through our collective efforts, we can achieve our targets for 2016 and beyond.

Sincerely,
Emanuel Chirico
Chairman and Chief Executive Officer