Memo from our CEO

PVH outperformed its budgeted outlook from
a top and bottom line perspective in 2017.

Manny Chirico

2017 was a year of investments and outstanding results. Driven by our long-term vision, we invested in areas that are most impacted by the changing dynamics in the industry – the growing prominence of digital, the importance of having a nimble and responsive supply chain and our essential commitment to driving consumer engagement. We encouraged associates across our organization to be forward-thinking, with a focus on adapting to the evolving consumer environment, enhancing our brands and their competitive positioning across product lines and geographies, and better aligning our business to make it easier to initiate and effect change. While we, like many other global consumer companies, faced overarching geopolitical headwinds, the power of our brands, our businesses and, most importantly, our people drove our company forward.

We continue to set our sights on making positive impacts in our communities while leading change across our business. PVH recognizes its responsibility as an industry leader and one of the world’s largest apparel companies to address its social and environmental impacts and contribute to a fair, healthy future for all. Further, we recognize the opportunity to make positive impacts throughout our value chain by empowering the people with whom we work, preserving the environment and supporting our communities.

Our dedication to inspire and engage our consumers is at the heart of everything we do, and this manifested itself in the progress we made throughout our brands and businesses in 2017. As a result, we experienced momentum across our businesses and our financial performance exceeded our guidance throughout the year. Our revenues grew 9% to $8.9 billion and we posted GAAP earnings per share of $6.84 ($7.94* on a non-GAAP basis), including a negative impact of $0.15 per share related to foreign currency exchange rates.

In addition to outperforming our budgeted outlook from a top and bottom line perspective, PVH had many other accomplishments that I am proud of. We were ranked 25th by Forbes and JUST Capital on their annual list of JUST companies and we launched the PVH Associate Relief Fund, which provides an opportunity for associates to unite from a philanthropic perspective and help each other in times of need.

I sincerely believe that PVH would not be where it is today without our industry-leading talent. Our people exemplify our Core Values and I am inspired by the individuality, partnership, passion, integrity and accountability that our associates demonstrate every day. We believe we are developing a strong foundation for continued success by creating a workplace that appreciates our associates and acknowledges that our people are our greatest asset.

We believe our people are an extension of our organization and it is our responsibility to inspire change from within. Our ongoing investments in talent management, including efforts to recruit, retain and develop our associates, continue to distinguish us in our approach to creating a great place to work. We continue to invest in the overall associate experience and focus on fostering new mindsets to shape a diverse and inclusive workplace where every individual is valued.

As I think about the strength of our teams, our brands and our platforms, I believe that PVH is in a powerful position to deliver a sustainable trajectory of long-term growth and make positive impacts on our industry. Our strategic priorities will continue to serve as our guidelines for growth and I look forward to PVH seizing the significant opportunities that it has ahead of it.

Sincerely,
Emanuel Chirico
Chairman and Chief Executive Officer