Our Company

With a history going back over 135 years, PVH
has excelled at growing brands and businesses
with rich American heritages, becoming one of
the largest global apparel companies.

PVH: History

PVH has evolved from its 1881 roots to become a diverse global apparel company with nearly $9 billion in 2017 revenues through a combination of strategic acquisitions and by successfully growing our brands globally across the wholesale, retail, digital commerce and licensing channels. Our transformative acquisitions – Calvin Klein in 2003, Tommy Hilfiger in 2010, and Warnaco in 2013 – have redefined PVH's identity, performance and long-term growth potential.

PVH: Today

Today, PVH operates a diversified portfolio of iconic lifestyle apparel brands led by CALVIN KLEIN and TOMMY HILFIGER, which represent over 80% of our revenues and are expected to continue to drive future revenue and profitability growth. PVH's operations have also evolved from a regional perspective; whereas our business was primarily based in North America in the early 2000's, we now operate significant businesses in Europe, the Asia Pacific region and Latin America, and approximately 65% of our earnings before interest and taxes before corporate expenses was generated outside the U.S. in 2017. As a much larger organization, we continue to operate under our core business principles, which value leaders who hold the highest ethical standards, while also driving results across the business.

PVH: The Future

We see a sustainable path of long-term growth as we continue to execute on our core business strategies. We believe that we can maximize the potential of our Calvin Klein, Tommy Hilfiger and Heritage Brands businesses as we continue to invest in our global platforms, focus on our talent, pursue strategic global growth opportunities, expand our digital capabilities and enhance our global supply chain to evolve with our growing business needs. Combined with our ongoing emphasis on maintaining a strong credit profile and a healthy balance sheet, we believe that we will continue to be able to deliver on our business strategy and create value for our stockholders.

2017 Earnings Before Interest and Taxes Reconciliation

Earnings Before Interest and Taxes (Dollars in Millions)

GAAP Adjustments (†) Non-GAAP
Calvin Klein $411 
$411
Tommy Hilfiger $318 $(184) $502
Heritage Brands $104
$104
Corporate $(201) $(48) $(153)
       
Total Earnings Before Interest and Taxes $632 $(232) $864
  • (†) Adjustments for 2017 represent the elimination of (i) the costs incurred related to the acquisition of the 55% interest in TH Asia, Ltd. (“TH China”), our former joint venture for TOMMY HILFIGER in China, that we did not already own (the “TH China acquisition”), primarily consisting of noncash amortization of short-lived assets; (ii) the costs incurred in connection with agreements to restructure our supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which we terminated our non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”); (iii) the costs incurred in connection with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense; (iv) the costs incurred in connection with the noncash settlement of certain of our benefit obligations related to our retirement plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer; (v) the net costs incurred in connection with the consolidation within our warehouse and distribution network in North America, which included a gain recorded on the sale of a warehouse and distribution center; (vi) the costs incurred in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which the Company made a cash buyout of a portion of the future payment obligation (the “Mr. Hilfiger amendment”); (vii) the costs incurred in connection with the early redemption of our $700 million 4 1/2% senior notes; (viii) the costs incurred in connection with the issuance of our €600 million 3 1/8% senior notes; and (ix) the recognized actuarial loss on retirement plans.
{ "title": "TOTAL REVENUE BY BUSINESS", "subtitle" : "2017 REVENUE: $8.9BN", "series" : [{ "name" : "Brands", "data" : [ { "name": "TOMMY HILFIGER", "description":"", "y": 44, "color":"#CB464F", "legendIndex": 0 }, { "name": "CALVIN KLEIN", "description":"", "y": 39, "color":"#808282", "legendIndex": 1 }, { "name": "HERITAGE BRANDS", "description":"", "y": 17, "color":"#214564", "legendIndex": 2 } ] }] }
{ "title": "EARNINGS BEFORE INTEREST AND TAXES BY BUSINESS", "subtitle" : "2017 EARNINGS BEFORE INTEREST AND TAXES: $864MM(1)", "series" : [{ "name" : "Brands", "data" : [ { "name": "TOMMY HILFIGER", "description":"", "y": 49, "color":"#CB464F", "legendIndex": 0 }, { "name": "CALVIN KLEIN", "description":"", "y": 41, "color":"#808282", "legendIndex": 1 }, { "name": "HERITAGE BRANDS", "description":"", "y": 10, "color":"#214564", "legendIndex": 2 } ] }] }
  • * Figures exclude certain amounts that were deemed non-recurring or non-operational.
  • Notes to free cash flow:
  • - Free cash flow defined as cash flow from operations less capital expenditures, contingent payments to Mr. Klein and dividends.
  • Updated guidance related to share-based payment award transactions was adopted in the first quarter of 2017. Prior amounts have
  • been adjusted to reflect the retrospective application of this guidance.
  • - 2017 free cash flow was impacted by larger capital expenditures compared to prior years, an increase in inventories, principally
  • by our expected sales growth in the first quarter of 2018 and the timing of inventory receipts as compared to the prior year period
  • due to the inclusion of a 53rd week of operations in 2017, and an increase in prepaid expenses due to the inclusion of the 53rd week.