PVH CORP. /DE/

Previous wording

Effective February 3, 2025, the first day of 2025, we changed our reportable segments to be region-focused to align with changes in our business and organizational structure. We operate our business through the following reportable segments: (i) Europe, the Middle East and Africa (“EMEA”), (ii) Americas, (iii) Asia-Pacific (“APAC”), and (iv) Licensing. Our historical segment results have been recast to reflect the new organizational structure. Our reportable segments include the brand businesses we operate under our TOMMY HILFIGER and Calvin Klein trademarks, which we own, and Van Heusen, Nike and other trademarks, which we license for certain product categories. References to brand names are to registered and common law trademarks owned by us or licensed to us by third parties and identified by italicizing the brand name. Please see Note 17, “Segment Data,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion of our reportable segments.

Current wording

We operate our business through the following reportable segments: (i) Europe, the Middle East and Africa (“EMEA”), (ii) Americas, (iii) Asia-Pacific (“APAC”), and (iv) Licensing. Our reportable segments include the brand businesses we operate under our TOMMY HILFIGER and Calvin Klein trademarks, which we own, and Van Heusen, Nike and other trademarks, which we license for certain product categories. References to brand names are to registered and common law trademarks owned by us or licensed to us by third parties and identified by italicizing the brand name. Please see Note 16, “Segment Data,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion of our reportable segments.

Previous wording

Our revenue was $8.7 billion in 2024, of which over 70% was generated outside of the United States. Our global iconic lifestyle brands, TOMMY HILFIGER and Calvin Klein, together generated over 95% of our revenue.

Current wording

Our revenue was $9.0 billion in 2025, of which over 70% was generated outside of the United States. Our global iconic lifestyle brands, TOMMY HILFIGER and Calvin Klein, together generated over 95% of our revenue.

Previous wording

At our April 2022 Investor Day, we introduced the PVH+ Plan, our multiyear, strategic plan to build Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands in the world and make PVH one of the highest performing brand groups in our sector. Please refer to Item 1 of our Annual Report on Form 10-K for the year ended February 2, 2025 under the heading “Our Business Strategy” for a description of the plan.

Current wording

The PVH+ Plan is our multiyear, strategic plan to build Calvin Klein and TOMMY HILFIGER into the most desirable lifestyle brands in the world and make PVH the leading brand building group in our sector. Please refer to Item 1 of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 under the heading “Our Business Strategy” for a description of the plan.

Previous wording

Inflation and other macroeconomic pressures, such as recently enacted tariffs on goods imported into the United States, elevated interest rates and the risk of recession, continue to create a complex and challenging retail environment globally, particularly in North America. Macroeconomic factors have had and may continue to have a negative impact on consumer demand for apparel and related products globally.

Current wording

Inflation and other macroeconomic pressures, such as tariffs and the Middle East conflict (discussed further below), elevated interest rates and the risk of recession, continue to create a complex and challenging retail environment globally. Macroeconomic factors are having, and may continue to have, a negative impact on consumer demand for apparel and related products globally.

Previous wording

Beginning in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the United States, with incremental tariffs on products imported from most countries and economic unions, and the potential for further increases and revisions or terminations to existing trade agreements. In response, some countries and economic unions have announced or are otherwise considering retaliatory tariffs on United States exports and other trade restrictions. These actions have led to significant volatility and uncertainty in global markets. We continue to analyze the impact of incremental tariffs on our business and are taking steps to mitigate our tariff exposure to the extent possible. Mitigation strategies may include further sourcing optimization, negotiations with our vendors, internal efficiencies to drive cost savings, optimizing our discount strategies and pricing actions.

Current wording

Further trade policy actions are unclear, including whether additional tariffs or other actions may be imposed, modified, or suspended. The Office of the U.S. Trade Representative has conducted and is conducting investigations under Section 301 of the Trade Act of 1974 that are expected to result in new tariffs being implemented in the second or third quarter of 2026. These factors have led to significant volatility and uncertainty in global markets. We continue to analyze the impact of incremental tariffs on our business and are taking steps to mitigate our tariff exposure to the extent possible. Mitigation strategies have included, and may continue to more significantly include, further sourcing optimization, negotiations with our vendors, internal efficiencies to drive cost savings, optimizing our discount strategies and pricing actions.

Previous wording

We currently expect the tariffs currently in place for goods coming into the United States will have an estimated net negative impact on our full year 2025 gross profit, including an unmitigated impact of approximately $65 million and a partially offsetting impact from planned mitigation actions which began in the third quarter and will more significantly take effect in the fourth quarter. However, the duration, magnitude and scope of any additional tariffs are difficult to predict, along with the extent (if any) to which we will be able to offset the impact through our mitigation efforts.

Current wording

Our outlook assumes that the current U.S. tariff rates on goods coming into the U.S. will continue through July 2026 and then rates will increase to an average that approximates the levels that were in place prior to the U.S. Supreme Court ruling. We currently expect an estimated net negative impact on our full year 2026 gross profit related to the negative impact of tariffs on goods coming into the United States including a gross impact of approximately $195 million and a partially offsetting impact from planned mitigation actions. However, the duration, magnitude and scope of any additional tariffs are difficult to predict, along with the extent (if any) to which we will be able to offset the impact through our mitigation efforts. Our full year outlook also reflects an expected benefit to cost of goods sold of approximately $100 million related to tariff refunds, which are currently expected to be recorded in the second quarter of 2026. The amount and timing of recovery remains uncertain and dependent on regulatory and administrative processes outside of our control.

Previous wording

There is significant uncertainty with respect to global trade policies and the related impact on the broader macroeconomic environment, as well as the impact of inflation and other macroeconomic factors, and foreign currency volatility. Our 2025 outlook assumes no material worsening of current conditions. Our revenue and earnings in 2025 may be subject to material change as a result of these and other macroeconomic factors.

Current wording

There is significant uncertainty with respect to the conflict in the Middle East, global trade policies (including tariffs) and the related impacts of each on the broader global macroeconomic environment, as well as the impact of inflation and other macroeconomic factors, and foreign currency volatility. Our revenue, earnings and cash flows from operations in 2026 may be subject to material change as a result of these and other macroeconomic factors.

Previous wording

We generate net sales from (i) the wholesale distribution to traditional retailers (both for stores and digital operations), pure play digital commerce retailers, franchisees, licensees and distributors of branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, handbags, accessories, footwear and other related products under owned and licensed trademarks, and (ii) the sale of certain of these products through (a) approximately 1,350 Company-operated free-standing store locations worldwide under our TOMMY HILFIGER and Calvin Klein trademarks, (b) approximately 1,450 Company-operated shop-in-shop/concession locations worldwide under our TOMMY HILFIGER and Calvin Klein trademarks, and (c) digital commerce sites worldwide, under our TOMMY HILFIGER and Calvin Klein trademarks. Additionally, we generate royalty, advertising and other revenue from fees for licensing the use of our trademarks.

Current wording

We generate net sales from (i) the wholesale distribution to traditional retailers (both for stores and digital operations), pure play digital commerce retailers, franchisees, licensees and distributors of branded sportswear (casual apparel), jeanswear, performance apparel, intimate apparel, underwear, swimwear, dress shirts, handbags, accessories, footwear and other related products under owned and licensed trademarks, and (ii) the sale of certain of these products through (a) approximately 1,350 Company-operated free-standing store locations worldwide under our TOMMY HILFIGER and Calvin Klein trademarks, (b) approximately 1,450 Company-operated shop-in-shop/concession locations worldwide under our TOMMY HILFIGER and Calvin Klein trademarks, and (c) digital commerce sites worldwide, under our TOMMY HILFIGER and Calvin Klein trademarks. Additionally, we generate revenue from fees for licensing the use of our TOMMY HILFIGER and Calvin Klein trademarks.

Previous wording

The following actions, transactions and events have impacted our results of operations and the comparability among the periods, including our full year 2025 expectations as compared to the full year 2024, as discussed below:

Current wording

The following actions, transactions and events have impacted or will impact our results of operations and the comparability among the periods, including our full year 2026 expectations as compared to the full year 2025, as discussed below:

Previous wording

•We embarked on a multiyear initiative beginning in the second quarter of 2024 to simplify our operating model by centralizing certain processes, and improving systems and automation to drive more efficient and cost-effective ways of working across the organization (the “Growth Driver 5 Actions”). The initiative is expected to result in annual cost savings of approximately $200 million to $300 million, net of continued strategic investments by 2026, with the actions to support it largely completed by the end of 2025. We recorded pre-tax costs of $80 million during the thirty-nine weeks ended November 2, 2025 in connection with this initiative consisting principally of severance. We recorded pre-tax costs of $24 million during 2024 in connection with this initiative, including $33 million of costs consisting principally of severance, which were partially offset by a $10 million gain on the sale of a warehouse and distribution center. We expect to incur additional costs in 2025, however the additional costs cannot be quantified at this time. Please see Note 15, “Exit Activity Costs,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Current wording

•We embarked on a multi-year initiative beginning in 2024 to simplify our operating model by centralizing certain processes and improving systems and automation to drive more efficient and cost-effective ways of working across the organization (the “Growth Driver 5 Actions”). The initiative has resulted in annualized cost savings of over $200 million, while continuing to make targeted investments to drive our strategic initiatives. While the actions to support this initiative were largely completed by the end of 2025, there have been certain actions taken and additional actions that we plan to take under this initiative, on a limited basis, during 2026. Such actions include the sale of our owned warehouse and distribution center located in Jonesville, NC, as discussed above. We recorded pre-tax costs of $7 million during the first quarter of 2026 in connection with this initiative consisting principally of severance. We recorded pre-tax costs of $93 million during 2025 in connection with this initiative consisting principally of severance. We expect additional actions in 2026, however the net impact of these remaining actions cannot be quantified at this time. Please see Note 14, “Exit Activity Costs,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Previous wording

We extended in 2022 most of our licensing agreements with G-III Apparel Group, Ltd. for Calvin Klein and TOMMY HILFIGER in the United States and Canada, largely pertaining to the women’s apparel product categories sold at wholesale in North America. These agreements now have staggered expirations through 2027, the first of which occurred at the end of calendar 2023. Upon expiration, we have been, and intend to continue to directly operate a significant portion of the businesses for the previously licensed product categories, with the remainder to be re-licensed to other third parties. The expiration of these licenses and the transition of previously licensed women’s product categories in house did not have a material impact on our revenue and net income in 2024. In 2025, the transition of previously licensed product categories in house is expected to result in a less than 1% increase to our revenue and an approximately 50 basis point decline in our gross margin.

Current wording

We extended in 2022 most of our licensing agreements with G-III Apparel Group, Ltd. for Calvin Klein and TOMMY HILFIGER in the United States and Canada, largely pertaining to the women’s apparel product categories sold at wholesale in North America. These agreements now have staggered expirations through 2026, the first of which occurred at the end of calendar 2023. We have been directly operating a significant portion of the businesses for the previously licensed product categories, and we intend to continue to directly operate a significant portion of these businesses as the license agreements expire, with the remainder re-licensed to other third parties. The expiration of these licenses and the transition of previously licensed women’s product categories in house resulted in a 1% net increase to our revenue and an approximately 50 basis point decline in our gross margin in 2025. In 2026, the transition of previously licensed product categories is expected to result in a less than 1% net increase to our revenue and an approximately 50 basis point decline in our gross margin.

Previous wording

Our Tommy Hilfiger and Calvin Klein businesses each have substantial international components that expose us to significant foreign exchange risk. The results of operations of our foreign subsidiaries are translated into United States dollars using an average exchange rate over the representative period. Accordingly, our results of operations are unfavorably impacted during times of a strengthening United States dollar against the foreign currencies in which we generate significant revenue and earnings and favorably impacted during times of a weakening United States dollar against those currencies. Over 70% of our 2024 revenue was subject to foreign currency translation. We currently expect our 2025 revenue and net income to increase by approximately $200 million and $20 million, respectively, due to the impact of foreign currency translation.

Current wording

Our Tommy Hilfiger and Calvin Klein businesses each have substantial international components that expose us to significant foreign exchange risk. Our results of operations in local foreign currencies are translated into United States dollars using an average exchange rate over the representative period. Accordingly, our results of operations are unfavorably impacted during times of a strengthening United States dollar against the foreign currencies in which we generate significant revenue and earnings and favorably impacted during times of a weakening United States dollar against those currencies. Over 70% of our 2025 revenue was subject to foreign currency translation. We currently expect our 2026 revenue and net income to increase by approximately $125 million and $20 million, respectively, as compared to 2025 due to the impact of foreign currency translation.

Previous wording

There also is a transactional impact of foreign exchange because our foreign subsidiaries purchase inventory in a currency other than their functional currency. We use foreign currency forward contracts to hedge against a portion of the exposure related to this transactional impact. We enter into these contracts up to 15 months in advance of payment for a portion of the projected inventory purchases and may enter into incremental contracts leading up to the time the payments occur. The impact of foreign currency fluctuations on the cost of inventory purchases covered by these contracts is then realized in our results of operations as the underlying inventory hedged by the contracts is sold. We currently expect the transactional impact of foreign currency on our 2025 net income as compared to 2024 will be immaterial.

Current wording

There also is a transactional impact of foreign exchange because we have foreign subsidiaries that purchase inventory in a currency other than their functional currency. We use foreign currency forward contracts to hedge against a portion of the exposure related to this transactional impact. We enter into these contracts up to 15 months in advance for a portion of the projected inventory purchases and may enter into incremental contracts leading up to the time the inventory purchases occur. The impact of foreign currency fluctuations on the cost of inventory purchases covered by these contracts is then realized in our results of operations as the underlying inventory hedged by the contracts is sold. The transactional impact of foreign currency on our 2026 gross margin as compared to 2025 is expected to be favorable by approximately 50 basis points.

Previous wording

We also have exposure to changes in foreign currency exchange rates related to our €1.125 billion aggregate principal amount of senior notes that are held in the United States. The strengthening of the United States dollar against the euro would require us to use a lower amount of our cash flows from operations to pay interest and make long-term debt repayments, whereas the weakening of the United States dollar against the euro would require us to use a greater amount of our cash flows from operations to pay interest and make long-term debt repayments. We designated the par value of these senior notes issued by PVH Corp., a U.S.-based entity, as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency.

Current wording

We also have exposure to changes in foreign currency exchange rates related to our €1.125 billion aggregate principal amount of senior notes that are held in the United States. The strengthening of the United States dollar against the euro would require us to use a lower amount of our cash flows from operations to pay interest and make long-term debt repayments, whereas the weakening of the United States dollar against the euro would require us to use a greater amount of our cash flows from operations to pay interest and make long-term debt repayments. We designated the par value of these senior notes issued by PVH Corp., a U.S.-based entity, as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency. In addition, we entered into multiple fixed-to-fixed cross-currency swap contracts in 2023, with a maturity date of July 2025, which, in aggregate, economically converted our $500 million principal amount of 4 5/8% senior notes due July 2025 from a United States dollar-denominated obligation to a euro-denominated obligation of €457 million. In July 2025, we completed a transaction to effectively blend and extend those cross-currency swaps with new fixed-to-fixed cross-currency swap contracts maturing in July 2027 and July 2028. We also designated these cross-currency swap contracts as net investment hedges of our investments in certain of our foreign subsidiaries that use the euro as their functional currency. As a result, the remeasurement of these foreign currency borrowings and cross-currency swaps at the end of each period is recorded in equity. Please see Note 9, “Derivative Financial Instruments,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Previous wording

In September 2024, China’s Ministry of Commerce (“MOFCOM”) announced that it had initiated an investigation into our business under the Provisions of the List of Unreliable Entities (“UEL Provisions”). In October 2024, we submitted a written response to MOFCOM and, in December 2024, we submitted a supplemental response. In January 2025, MOFCOM issued a preliminary finding that PVH Corp. had violated normal market trading principles and in February it announced its determination and placed PVH Corp. on the List of Unreliable Entities (“UEL”). We do not know if or when MOFCOM will implement any measures as a result of the listing or what they will be if any are imposed. Approximately 6% and 20% of our revenue and income before interest and taxes, respectively, were generated in China in 2024. Furthermore, if, as a result of any such measures, it is necessary for us to cease certain or all operations in China, 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 indefinite-lived intangible assets and long-lived assets. Please see our risk factor“China’s Ministry of Commerce (“MOFCOM”) conducted an investigation into our business which resulted in PVH Corp. being placed on the List of Unreliable Entities (“UEL”) and 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” in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended February 2, 2025 for additional information.

Current wording

In September 2024, China’s Ministry of Commerce (“MOFCOM”) announced that it had initiated an investigation into our business under the Provisions of the List of Unreliable Entities (“UEL Provisions”). In October 2024, we submitted a written response to MOFCOM and, in December 2024, we submitted a supplemental response. In January 2025, MOFCOM issued a preliminary finding that PVH Corp. had violated normal market trading principles and in February 2025, it announced its determination and placed PVH Corp. on the List of Unreliable Entities (“UEL”). We do not know if or when MOFCOM will implement any measures as a result of the listing or what they will be if any are imposed. Approximately 6% and 20% of our revenue and income before interest and taxes (excluding goodwill and other intangible asset impairment charges), respectively, were generated in China in 2025. Furthermore, if, as a result of any such measures, it is necessary for us to cease certain or all operations in China, 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 indefinite-lived intangible assets and long-lived assets. Please see our risk factor “China’s Ministry of Commerce (“MOFCOM”) conducted an investigation into our business which resulted in PVH Corp. being placed on the List of Unreliable Entities (“UEL”) and 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”in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for additional information.

Previous wording

Due to the above seasonal factors, our results of operations for the thirteen and thirty-nine weeks ended November 2, 2025 are not necessarily indicative of those for a full fiscal year.

Current wording

Due to the above seasonal factors, our results of operations for the thirteen weeks ended May 3, 2026 are not necessarily indicative of those for a full fiscal year.

Previous wording

The following table summarizes our consolidated statements of operations for the thirteen weeks ended November 2, 2025 compared to the prior year period:

Current wording

The following table summarizes our consolidated statements of operations for the first quarter of 2026 compared to the prior year period:

Previous wording

Total revenue in the third quarter of 2025 was $2.294 billion compared to $2.255 billion in the third quarter of the prior year. The overall increase in revenue of $39 million, or 2%, included a 3% positive impact of foreign currency translation.

Current wording

Total revenue in the first quarter of 2026 was $2.025 billion compared to $1.984 billion in the first quarter of the prior year. The overall increase in revenue of $42 million, or 2%, included a positive impact of $87 million, or 4%, related to foreign currency translation.

Previous wording

•EMEA – Revenue increased $41 million, or 4%, compared to the prior year period, including a positive impact of $62 million, or 6%, related to foreign currency translation. Excluding the impact of foreign currency translation, the decrease in revenue was driven by declines in both the direct-to-consumer and wholesale businesses.

Current wording

•EMEA – Revenue increased $18 million, or 2%, compared to the prior year period, including a positive impact of $67 million, or 7%, related to foreign currency translation. Excluding the impact of foreign currency translation, the decrease in revenue was driven by declines in both the direct-to-consumer and wholesale businesses, including softer consumer demand due to the prolonged effects from the conflict in the Middle East and its broader macroeconomic pressures.

Previous wording

•Americas – Revenue increased $17 million, or 2%, compared to the prior year period, driven by growth in the wholesale business partially offset by a decrease in the direct-to-consumer business. The increase in wholesale revenue included the transition to in-house of previously licensed women’s product categories partially offset by the impact of a shift in the timing of wholesale shipments as compared to the prior year period, as shipments in the prior year were more heavily weighted to the third and fourth quarters. The impact of foreign currency translation on our Americas segment was not significant.

Current wording

•Americas – Revenue decreased $6 million, or 1%, compared to the prior year period, including a positive impact of $5 million, or 1%, related to foreign currency translation, as growth in the direct-to-consumer business was more than offset by a decrease in the wholesale business. The decrease in wholesale revenue included (i) a decrease in the first quarter related to the overall impact of a shift in the timing of wholesale shipments from the first half of the year to the second half as compared to the prior year period, partially offset by (ii) an increase driven by the transition of previously licensed women’s product categories in house.

Previous wording

•APAC –Revenue decreased $6 million, or 1%, compared to the prior year period, including a negative impact of $4 million, or 1%, related to foreign currency translation. Excluding the impact of foreign currency translation, the increase in revenue in the direct-to-consumer business was offset by a decrease in wholesale revenue.

Current wording

•APAC –Revenue increased $35 million, or 10%, compared to the prior year period, including a positive impact of $15 million, or 4%, related to foreign currency translation. Excluding the impact of foreign currency translation, the increase in revenue included an approximately 4% favorable impact from the timing of Lunar New Year, which occurred in the first quarter of 2026 but did not occur in the first quarter of 2025. An increase in revenue in the direct-to-consumer business was partially offset by a decrease in wholesale business.

Previous wording

•Tommy Hilfiger – Revenue increased 1% compared to the prior year period including a 3% positive foreign currency impact.

Current wording

•Tommy Hilfiger – Revenue increased 3% compared to the prior year period including a 5% positive foreign currency impact.

Previous wording

•Calvin Klein – Revenue increased 2% compared to the prior year period, including a 2% positive foreign currency impact.

Current wording

•Calvin Klein – Revenue increased 1% compared to the prior year period, including a 4% positive foreign currency impact.

Previous wording

◦Owned and operated digital commerce – Revenue increased 1% compared to the prior year period, including a 2% positive foreign currency impact. Excluding the impact of foreign currency translation, growth in Americas and APAC was offset by a decline in EMEA.

Current wording

◦Owned and operated retail stores – Revenue increased 5% compared to the prior year period, including a 4% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue growth in Americas and APAC was partially offset by a decline in EMEA.

Previous wording

We currently expect revenue for the full year 2025 will increase low single-digits compared to 2024, inclusive of a positive impact related to foreign currency translation. Excluding the impact of foreign currency translation, we currently expect revenue for the full year 2025 to be flat to increase slightly.

Current wording

We currently expect revenue for the full year 2026 to be approximately flat compared to 2025. Excluding the impact of foreign currency translation, we currently expect revenue for the full year 2026 to decrease slightly.

Previous wording

Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of product, such as inbound freight costs, purchasing and receiving costs, inspection costs and other product procurement related charges. Also included as cost of goods sold are the amounts recognized on foreign currency forward contracts as the underlying inventory hedged by such forward exchange contracts is sold. Warehousing and distribution expenses are included in selling, general and administrative (“SG&A”) expenses. Revenue from licensing the use of our trademarks is included in gross profit because there is no cost of goods sold associated with such revenue. As a result, our gross profit may not be comparable to that of other entities.

Current wording

Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of product, such as inbound freight costs, purchasing and receiving costs, inspection costs and tariffs and other import costs. Also included as cost of goods sold are the amounts recognized on foreign currency forward contracts as the underlying inventory hedged by such forward exchange contracts is sold. Warehousing and distribution expenses are included in selling, general and administrative (“SG&A”) expenses. Revenue from licensing the use of our trademarks is included in gross profit because there is no cost of goods sold associated with such revenue. As a result, our gross profit may not be comparable to that of other entities.

Previous wording

Gross profit in the thirty-nine weeks ended November 2, 2025 was $3.705 billion, or 57.5% of total revenue, compared to $3.761 billion, or 59.9% of total revenue, in the thirty-nine week period of the prior year. Approximately 50 basis points of the decline was due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins, and approximately 50 basis points of the decline was due to the unmitigated negative impact of the recently enacted tariffs that are currently in place for goods coming into the United States. The remaining 140 basis point decrease was driven by (i) an increase in promotional selling as compared to the prior year period, (ii) a shift in channel mix driven by a change in mix of shipments within the wholesale channel as well as an overall change in the revenue mix between our wholesale channel and our direct-to-consumer channel, as our wholesale channel was a larger proportion of revenue in the thirty-nine week period of 2025 than in 2024 and carries lower gross margins, and (iii) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays. The effect of mitigation actions to address the impact of tariffs were immaterial in the thirty-nine weeks ended November 2, 2025.

Current wording

Gross profit in the first quarter of 2026 was $1.186 billion, or 58.6% of total revenue, compared to $1.162 billion, or 58.6% of total revenue, in the first quarter of the prior year. Gross profit as a percentage of revenue was flat compared to the prior year period and included (i) a negative impact of the tariffs on goods coming into the United States, (ii) an increase in promotional selling as compared to the prior year period, and (iii) a decline due to the transition of previously licensed product categories into our directly operated wholesale business, as revenue through our wholesale distribution channel carries lower gross margins. These declines were offset by the favorable impacts of (i) tariff mitigation actions, (ii) lower product costs, including the favorable transactional impact of foreign exchange on our international businesses, particularly our European business and (iii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger proportion of total revenue and carries higher gross margins.

Previous wording

We currently expect that gross margin for the full year 2025 will decrease by approximately 250 basis points compared to 2024, including (i) the approximately 80 basis point unmitigated negative impact of the tariffs that are currently in place for goods coming into the United States, with a more significant unmitigated impact expected in the fourth quarter of 2025 due to the effective dates of tariffs and applicable rates and the increase in the percentage of inventory subject to tariffs that is expected to be sold and (ii) the approximately 50 basis point decline expected in connection with the above-mentioned transition of previously licensed product categories into our directly operated wholesale business. The remaining approximately 120 basis point decrease is primarily as a result of (i) an increase in promotional selling as compared to the prior year, with a less significant impact expected in the fourth quarter of 2025 and (ii) higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays, partially offset by planned mitigation actions to address the impact of tariffs.

Current wording

We currently expect that gross margin for the full year 2026 will increase by approximately 100 basis points compared to 2025, with increases particularly impacting the second quarter despite (i) the assumed approximately 215 basis point gross negative impact in 2026 of the tariffs on goods coming into the United States, compared to the approximately 80 basis point gross negative impact in 2025, (ii) the approximately 50 basis point decline expected in connection with the above-mentioned transition of previously licensed product categories into our directly operated wholesale business, and (iii) an increase in promotional selling as compared to the prior year. These decreases are expected to be more than offset by (i) an approximately 100 basis point impact related to the IEEPA tariff refunds, which are expected to be recorded in the second quarter of 2026, (ii) the impact of planned mitigation actions to address the impacts of tariff costs, (iii) lower product costs, including the approximately 50 basis point favorable transactional impact of foreign exchange on our international businesses as discussed above, and (iv) the absence of higher freight costs and incremental discounts provided to customers to address the impact of Calvin Klein product delivery delays in 2025.

Previous wording

SG&A expenses in thethirty-nine weeks ended November 2, 2025 were $3.274 billion, or 50.8% of total revenue, compared to $3.255 billion, or 51.8% of total revenue, in the thirty-nine week period of the prior year. The 100 basis point decrease was primarily driven by (i) the non-recurrence of costs incurred in the prior year period in connection with the Mr. Hilfiger amendment, (ii) cost savings resulting from the Growth Driver 5 Actions, and (iii) the impact of a change in the revenue mix between our wholesale distribution channel and our direct-to-consumer distribution channel, as our wholesale distribution channel was a larger proportion of revenue in the thirty-nine week period of 2025 than in 2024 and carries lower SG&A expenses as a percentage of total revenue. These decreases were partially offset by a net increase in restructuring costs incurred in connection with the Growth Driver 5 Actions, with $80 million incurred in the thirty-nine week period of 2025 and $28 million incurred in the thirty-nine week period of the prior year.

Current wording

SG&A expenses in the first quarter of 2026 were $1.074 billion, or 53.1% of total revenue, compared to $1.024 billion, or 51.6% of total revenue, in the first quarter of the prior year. The 150 basis point increase was primarily driven by (i) an increase in strategic investments to fuel growth, including increased marketing, (ii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel, as our direct-to-consumer distribution channel was a larger proportion of total revenue and carries higher SG&A expenses as a percentage of revenue and (iii) the impact from the deleveraging of expenses partially offset by (i) cost savings resulting from the Growth Driver 5 Actions and (ii) a net decrease in restructuring costs incurred in the first quarter of 2026 in connection with the Growth Driver 5 Actions compared to the prior year period.

Previous wording

Non-Service Related Pension and Postretirement (Cost) Income

Current wording

Non-Service Related Pension and Postretirement Cost

Previous wording

Non-service related pension and postretirement (cost) income in the thirty-nine weeks ended November 2, 2025 was a cost of $3 million as compared to income of $1 million in the thirty-nine period of the prior year. Please see Note 7, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Current wording

Non-service related pension and postretirement cost was $1 million in each of the first quarters of 2026 and 2025. Please see Note 6, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Previous wording

Non-service related pension and postretirement (cost) income recorded throughout the year is calculated using actuarial valuations that incorporate assumptions and estimates about financial market, economic and demographic conditions. Differences between estimated and actual results give rise to gains and losses that are recorded immediately in earnings, generally in the fourth quarter of the year, which can create volatility in our results of operations. We currently expect that non-service related pension and postretirement income for the full year 2025 will be immaterial. However, our expectation of 2025 non-service related pension and post-retirement income does not include the impact of an actuarial gain or loss. As a result of the volatility in the financial markets, there is significant uncertainty with respect to the actuarial gain or loss we may record on our retirement plans in 2025. We may record a significant actuarial gain or loss in 2025 if there is a significant increase or decrease in discount rates, respectively, or if there is a difference between the actual and expected return on plan assets. As such, our actual 2025 non-service related pension and postretirement income may be significantly different than our projections.

Current wording

Non-service related pension and postretirement cost recorded throughout the year is calculated using actuarial valuations that incorporate assumptions and estimates about financial market, economic and demographic conditions. Differences between estimated and actual results give rise to gains and losses that are recorded immediately in earnings, generally in the fourth quarter of the year, which can create volatility in our results of operations. We currently expect that non-service related pension and postretirement income for the full year 2026 will be approximately $3 million. However, our expectation of 2026 non-service related pension and postretirement income does not include the impact of an actuarial gain or loss. As a result of the volatility in the financial markets, there is significant uncertainty with respect to the actuarial gain or loss we may record on our retirement plans in 2026. We may record a significant actuarial gain or loss in 2026 if there is a significant increase or decrease in discount rates, respectively, or if there is a difference between the actual and expected return on plan assets. As such, our actual 2026 non-service related pension and postretirement income may be significantly different than our projections.

Previous wording

The equity in net income of unconsolidated affiliates was $10 million in the third quarter of 2025 compared to $11 million in the third quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGERand Calvin Klein brands, and certain licensed trademarks in Mexico, (ii) our joint venture for the TOMMY HILFIGER and Calvin Klein brands in India, (iii) our joint venture for the TOMMY HILFIGER brand in Brazil and (iv) our PVH Legwear LLC joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in the United States and Canada. Our investments in the joint ventures are being accounted for under the equity method of accounting.

Current wording

The equity in net income of unconsolidated affiliates was $13 million in the first quarter of 2026 compared to $10 million in the first quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in Mexico, (ii) our joint venture for the TOMMY HILFIGER and Calvin Klein brands in India, (iii) our joint venture for the TOMMY HILFIGER brand in Brazil and (iv) our PVH Legwear LLC joint venture for the TOMMY HILFIGERand Calvin Klein brands and certain licensed trademarks in the United States and Canada. The equity in net income of unconsolidated affiliates for the first quarter of 2026 increased as

Previous wording

We currently expect that our equity in net income of unconsolidated affiliates for the fourth quarter and full year 2025 will be relatively flat as compared to the fourth quarter and full year 2024.

Current wording

We currently expect that our equity in net income of unconsolidated affiliates for full year 2026 will be relatively flat as compared to $45 million in 2025.

Previous wording

Income before interest and taxes in thethird quarter of 2025 was $181 million, or 7.9%, of total revenue, compared to $183 million, or 8.1% of total revenue, in the third quarter of the prior year, and included changes in our segments’ income before interest and taxes and other reconciling items as follows:

Current wording

Income (loss) before interest and taxes in thefirst quarter of 2026 was $124 million, or 6.1%, of total revenue, compared to $(332) million, or (16.7)% of total revenue, in the first quarter of the prior year, and included changes in our segments’ income (loss) before interest and taxes and other reconciling items as follows:

Previous wording

•Americas –Income before interest and taxes in the thirty-nine weeks ended November 2, 2025 was $180 million, or 9.1% of total revenue, compared to $235 million, or 12.7% of total revenuein the thirty-nine week period of the prior year. The 360 basis point decrease was driven by a gross margin decline inclusive of the negative impact of the recently enacted tariffs that are currently in place for goods coming into the United States, partially offset by a decrease in SG&A expenses as a percentage of revenue due to (i) savings primarily resulting from the Growth Driver 5 Actions and (ii) the leveraging of expenses resulting from the increase in revenue.

Current wording

•Americas –Income before interest and taxes in thefirst quarter of 2026 was $51 million, or 8.4% of total revenue, compared to $61 million, or 10.0% of total revenue in the first quarter of the prior year. The 160 basis point decrease was primarily driven by a 190 basis point gross margin decline, inclusive of the negative impact of the increase in tariffs on goods coming into the United States partially offset by tariff mitigation actions. SG&A expenses as a percentage of revenue decreased 40 basis points due to savings resulting from the Growth Driver 5 Actions partially offset by an increase in marketing.

Previous wording

•APAC –Income before interest and taxes in thethird quarter of 2025 was $74 million, or 18.8% of total revenue, compared to $72 million, or 18.1% of total revenue in the third quarter of the prior year. The 70 basis point increase was driven by an increase in gross margin and a decrease in SG&A expenses as a percentage of revenue.

Current wording

•APAC –Income before interest and taxes in thefirst quarter of 2026 was $89 million, or 23.1% of total revenue, compared to $79 million, or 22.5% of total revenue in the first quarter of the prior year. The 60 basis point increase was primarily driven by a 160 basis point increase in gross margin partially offset by a 100 basis point increase in SG&A expenses as a percentage of revenue, including an increase in marketing.

Previous wording

•Licensing –Income before interest and taxes in thethird quarter of 2025 was $87 million, an 8% decrease compared to $95 million in the prior year period, primarily due to the transition to in-house of certain previously licensed women’s product categories.

Current wording

•Licensing –Income before interest and taxes in thefirst quarter of 2026 was $75 million, a 7% decrease compared to $81 million in the prior year period, primarily due to the license transitions in North America.

Previous wording

•Restructuring and other items included $559 million of expenses in the thirty-nine weeks ended November 2, 2025, including (i) the $480 million noncash goodwill and other intangible asset impairment charges and (ii) the $80 million of restructuring costs in connection with the Growth Driver 5 Actions. Restructuring and other items included $59 million of net expenses in the prior year period, including (i) $51 million of costs in connection with the Mr. Hilfiger amendment, and (ii) $18 million of net restructuring costs related to the Growth Driver 5 Actions, partially offset by the $10 million gain related to the Heritage Brands intimates transaction.

Current wording

•Restructuring and other items included $7 million of restructuring costs in thefirst quarter of 2026 in connection with the Growth Driver 5 Actions, consisting principally of severance. Restructuring and other items included $493 million of expenses in the first quarter of the prior year including (i) $480 million of noncash goodwill and other intangible asset impairment charges and (ii) $13 million of restructuring costs in connection with the Growth Driver 5 Actions, consisting principally of severance.

Previous wording

The effective income tax rate for the third quarter of 2025 reflected a $156 million income tax expense recorded on $160 million of pre-tax income. The effective income tax rate for the third quarter of 2024 reflected a $35 million income tax expense recorded on $167 million of pre-tax income.

Current wording

The effective income tax rate for the first quarter of 2026 reflected a $21 million income tax expense recorded on $109 million of pre-tax income. The effective income tax rate for the first quarter of 2025 reflected a $(305) million income tax benefit recorded on $(350) million of pre-tax losses.