NEW YORK--(BUSINESS WIRE)--Feb. 21, 2014--
PVH Corp. (NYSE:PVH) today announced that it has entered into
discussions to amend the credit facility it entered into in February
2013, including to increase the principal amount of term loans.
Concurrently, the Company delivered a Conditional Notice of Redemption
to holders of its outstanding 7.375% Senior Notes due 2020 (the “Senior
Notes”). The redemption is conditioned on the effectiveness of the
credit facility amendment and the Company’s receipt of at least $600
million in cash proceeds thereunder. The Company intends to use the
proceeds of the increased loans (along with certain cash on hand) to
redeem all of the Senior Notes. The transactions are targeted for
closing at the end of March 2014 and would lower PVH’s overall interest
expense.
The Company also announced in connection with the discussions regarding
the credit facility amendment that it is reaffirming its revenue and
earnings per share guidance for the fourth quarter 2013 and full year
2013 previously announced on January 10, 2014. Additionally, PVH
announced that during fiscal 2013, it repaid approximately $500 million
of term loans under the credit facility, above its initial expectation
of approximately $400 million announced in March 2013.
PVH Corp., one of the world's largest apparel companies, owns and
markets the iconic Calvin Klein and Tommy Hilfiger brands
worldwide. It is the world's largest shirt and neckwear company and
markets a variety of goods under its own brands, Calvin Klein, Tommy
Hilfiger, Van Heusen, IZOD, ARROW, Warner’s and Olga, and its
licensed brands, including Speedo, Geoffrey Beene, Kenneth Cole New
York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps,
Donald J. Trump Signature Collection, JOE Joseph Abboud, DKNY, Ike Behar
and John Varvatos.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: Forward-looking statements in this press release, including,
without limitation, statements relating to its 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, the
following: (i) the Company’s plans, strategies, objectives, expectations
and intentions are subject to change at any time at the discretion of
the Company; (ii) in connection with the acquisition of The Warnaco
Group, Inc. (“Warnaco”), the Company borrowed significant amounts, may
be considered to be highly leveraged, and will have to use a significant
portion of its cash flows to service such 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 plans and results of operations will be affected by the
Company’s ability to manage its growth and inventory, including the
Company’s ability to realize benefits from Warnaco; (v) the Company’s
operations and results could be affected by quota restrictions and the
imposition of safeguard controls (which, among other things, could limit
the Company’s ability to produce products in cost-effective countries
that have the labor and technical expertise needed), the availability
and cost of raw materials, 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), changes in available factory and shipping capacity, wage and
shipping cost escalation, and civil conflict, war or terrorist acts, the
threat of any of the foregoing, or political and 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; (vi) 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; (vii)
acquisitions and issues arising with acquisitions and proposed
transactions, including, without limitation, the ability to integrate an
acquired entity, such as Warnaco, into the Company with no substantial
adverse effect on the acquired entity’s or the Company’s existing
operations, employee relationships, vendor relationships, customer
relationships or financial performance; (viii) 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; and (ix) other risks and uncertainties indicated from
time to time in the Company’s filings with the Securities and Exchange
Commission (“SEC”).
The earnings per share and full year revenue guidance discussed in this
press release is on a non-GAAP basis, as defined under SEC rules.
Reconciliations of the guidance are included in the Company’s press
release issued on January 10, 2014 and its 2013 third quarter earnings
press release, which was issued on December 9, 2013, both of which are
available on the Company’s website at http://www.pvh.com/investor_relations_press_releases.aspx.
The Company’s Current Reports on Form 8-K furnished to the SEC in
connection with these releases are available on the Company’s website at http://www.pvh.com
and the SEC’s website at http://www.sec.gov.
Earnings per share and revenue guidance for the quarter and year ending
February 2, 2014 speaks as of February 21, 2014, the date on which it
was made and all other guidance and forward-looking information speaks
as of December 9, 2013, the date on which it was made. 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.
Source: PVH Corp.
PVH Corp.
Dana Perlman, 212-381-3502
Treasurer
and Senior Vice President, Business Development and Investor Relations
investorrelations@pvh.com
