PVH CORP DE

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China’s Ministry of Commerce has announced an investigation into our business, which could result in fines or restrictions on our ability to do business in China, which could have a material adverse effect on our revenue and results of operations.

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In September 2024, MOFCOM announced that it had initiated an investigation into our business under the UEL Provisions. In October 2024, we submitted a written response to MOFCOM. We do not know when MOFCOM will conclude its investigation or announce its findings (if any), nor do we know if or how we would be penalized. According to the UEL Provisions, potential penalties if we are placed on the UEL could include monetary fines, restrictions or prohibitions on engaging in import and export activities related to China or making investments in China, entry denial of our relevant personnel into China, restrictions or revocation of work permits, stay or residence status of our relevant personnel in China, or other measures. No penalties have been imposed on us at this time. The practical impact of any such restrictions or prohibitions could include our inability to produce goods in China for sale elsewhere, our inability to sell goods on a wholesale or retail basis in China, or our inability to make investments in China.

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We cannot currently predict the duration or outcome of the investigation or any actions that may ultimately be taken by MOFCOM. The investigation, and any future decision to place us on the UEL or to take action to impose and enforce penalties or restrictions against us, could have a material adverse effect on our revenue and results of operations. Furthermore, if, as a result of any such penalties or restrictions, it is necessary for us to cease operations in China entirely, it may result in charges related to excess inventory and difficulty collecting trade receivables, among other things. We may also incur material non-cash impairment charges if we are unable to recover the carrying value of our goodwill, other indefinite-lived intangible assets and long-lived assets. Additionally, if the production of our products in China ceases, our business could be impacted more broadly and we may need or decide to shift production to other jurisdictions. Please see the risk factors entitled “We primarily use foreign suppliers for our products and raw materials, which poses risks to our business operations.” and “We depend on third parties to manufacture our products and any disruption in our relationships with these parties or in their businesses may materially adversely affect our business.” in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended February 4, 2024 for additional information.