PVH Corp.: Form 10-Q for the period ended Aug 2, 2026

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.

OVERVIEW

The following discussion and analysis is intended to help you understand us, our operations and our financial performance. It should be read in conjunction with our consolidated financial statements and the accompanying notes, which are included elsewhere in this report.

We are one of the largest global apparel companies in the world, with a history going back over 140 years. We have been listed on the New York Stock Exchange for over 100 years.

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.

In addition to the TOMMY HILFIGER and Calvin Klein brands, which are owned, we also license the Van Heusen, Nike and other brands for certain product categories.

PVH+ Plan

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.

Macroeconomic Environment

Inflation and other macroeconomic pressures, such as tariffs and the Middle East conflict (both 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 are expected to continue to have, a negative impact on consumer demand for apparel and related products globally.

The conflict in the Middle East, which began in March 2026, has resulted in disruption and instability in global supply chains, increased fuel and oil costs, foreign currency volatility (particularly in the euro), and continued volatility and uncertainty in global markets. These and other factors have had, and are expected to continue to have, broader macroeconomic implications that could have a significant impact on our business, including a decline in consumer spending and inventory availability. We have been experiencing an impact to wholesale demand in the direct Middle East region (which excludes Turkey). Approximately 1% and 7% of our revenue and income before interest and taxes (excluding goodwill and other intangible asset impairment charges), respectively, were generated in the direct Middle East region (which excludes Turkey) in 2025. We have also been seeing a broader impact from the conflict on consumer purchasing behavior in Turkey and the greater European region, which are significant markets for us, including the effect of increased fuel prices, which has been causing, and may continue to cause, a decline in consumer traffic to stores and a more promotional environment. The length, scope and intensity of the conflict remain uncertain. As a result, there continues to be significant uncertainty regarding the extent to which the conflict and its broader macroeconomic implications will impact our business, financial condition and results of operations for the remainder of 2026. Our 2026 outlook currently assumes estimated negative prolonged effects from the conflict in the Middle East and its broader macroeconomic pressures.

Beginning in the first quarter of 2025, the United States government announced additional tariffs on goods imported into the United States primarily under the International Emergency Economic Powers Act (“IEEPA”), with incremental tariffs on products imported from most countries and economic unions. In February 2026, the U.S. Supreme Court ruled that the IEEPA tariffs imposed were unconstitutional. In response to that decision, an executive order was issued imposing tariffs pursuant to Section 122 of the Trade Act of 1974 for 150 days effective on February 24, 2026, which subsequently expired on July 24, 2026. These tariffs are being challenged in court. On July 23, 2026, the Office of the U.S. Trade Representative took action under Section 301 of the Trade Act of 1974 and imposed new tariff rates ranging from 10% to 12.5% on most imports from certain countries. Additional investigations are being conducted under Section 301 and are expected to result in additional tariffs on goods we import into the United States.

In March 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection (“CBP”) to refund IEEPA tariffs that were previously collected, including applicable interest. CBP launched a tariff refund program in April 2026 to facilitate the refunds, and we submitted claims for IEEPA tariffs that we had previously paid. We elected to apply a gain contingency model in accordance with ASC 450-30, “Gain Contingencies” to account for potential recoveries of previously paid tariffs under which a gain would not be recognized until realized or realizable. During the second quarter of 2026, we received the cash refunds related to previously paid tariffs for all claims that we had submitted under the tariff refund program and we recognized a benefit of $107 million in cost of goods sold.

Further trade policy actions are unclear, including whether additional tariffs or other actions may be imposed, modified, or suspended. 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.

Our outlook continues to assume that the tariffs currently in place for goods imported into the United States will have a negative impact on our full year 2026 gross profit resulting from a full year blended tariff rate of approximately 15%, partially offset by the 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 includes the benefit to cost of goods sold of $107 million related to the tariff refunds recorded in the second quarter of 2026 discussed above.

Outlook Uncertainty

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.

RESULTS OF OPERATIONS

Operations Overview

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.

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:

• We recorded a pre-tax noncash goodwill impairment charge of $439 million in the second quarter of 2026 in conjunction with an interim goodwill impairment test. The impairment was primarily due to changes in valuation assumptions associated with geopolitical and macroeconomic factors. Please see Note 5, “Goodwill and Other Intangible Assets,” in the Notes to Consolidated Financial Statements included in Part I, Item I of this report for further discussion.
• 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 $250 million, while continuing to make targeted investments to drive our strategic initiatives. There have been certain actions taken and additional actions that we plan to take under this initiative, on a limited basis, in 2026, including the sale completed in the second quarter of 2026 of our owned warehouse and distribution center located in Jonesville, NC. We recorded a pre-tax net gain of $9 million during the twenty-six weeks ended August 2, 2026 in connection with this initiative, including (i) a gain of $25 million on the sale of a warehouse and distribution center (recorded in other gain) and (ii) $17 million of restructuring costs consisting principally of severance (recorded in selling, general and administrative expenses). We recorded pre-tax costs of $93 million during 2025 in connection with this initiative consisting principally of severance. The impact of the remaining actions we plan to take 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.

• We recorded pre-tax noncash goodwill and other intangible impairment charges of $480 million in the first quarter of 2025 in conjunction with interim goodwill and other intangible assets impairment tests. The impairments were primarily due to a significant increase in discount rates. Please see Note 5, “Goodwill and Other Intangible Assets,” in the Notes to Consolidated Financial Statements included in Part I, Item I of this report for further discussion.

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 were given staggered expirations, with the first occurring at the end of calendar 2023, the last occurring at the end of calendar 2026 and most being expired by the end of calendar 2025. We have been directly operating and managing a significant portion of the businesses for the previously licensed product categories, and we intend to continue to directly operate or manage a significant portion of these businesses, 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 an additional 1% net increase to our revenue and an additional approximately 50 basis point decline in our gross margin.

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.

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.

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.

Investigation by China’s Ministry of Commerce

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 noncash 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.

SEASONALITY

Our business generally follows a seasonal pattern. Our wholesale businesses tend to generate higher levels of sales in the first and third quarters, while our direct-to-consumer businesses tend to generate higher levels of sales in the fourth quarter. Licensing revenue tends to be earned somewhat evenly throughout the year, although the third quarter tends to have the highest level of revenue due to higher sales by licensees in advance of the holiday selling season. We expect this seasonal pattern will generally continue. Working capital requirements vary throughout the year to support these seasonal patterns and business trends.

Due to the above seasonal factors, our results of operations for the thirteen and twenty-six weeks ended August 2, 2026 are not necessarily indicative of those for a full fiscal year.

Thirteen Weeks Ended August 2, 2026 Compared With Thirteen Weeks Ended August 3, 2025

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

(Dollars in Millions)

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Total Revenue

Total revenue in the second quarter of 2026 was $2.097 billion compared to $2.167 billion in the second quarter of the prior year. The overall decrease in revenue was $70 million, or 3%. The impact related to foreign currency translation was immaterial.

Revenue by Segment:

• EMEA – Revenue decreased $62 million, or 6%, compared to the prior year period including the continued soft consumer demand due to the prolonged effects from the conflict in the Middle East and its broader macroeconomic impacts. The decrease in revenue was primarily driven by a decline in the wholesale business. In the direct-to-consumer business, growth in digital commerce revenue was more than offset by a decrease in stores. The impact related to foreign currency translation was immaterial.
• Americas – Revenue decreased $4 million, or 1%, compared to the prior year period. The decrease in revenue was driven by a decline in the wholesale business including (i) a decrease due to a shift in the timing of wholesale shipments, primarily in the Calvin Klein business, to the second half of this year as compared to the prior year period partially offset by (ii) an increase associated with the transition in-house of previously licensed TOMMY HILFIGER women’s product categories. Revenue in the direct-to-consumer business was up slightly compared to the prior year period, supported by growth in owned and operated digital commerce. The impact related to foreign currency translation was immaterial.
• APAC – Revenue increased $8 million, or 3%, compared to the prior year period, including a positive impact of $5 million, or 1%, related to foreign currency translation. Excluding the impact of foreign currency translation, the increase in revenue reflected growth in the direct-to-consumer business partially offset by a decrease in the wholesale business.
• Licensing – Revenue decreased $13 million, or 13%, compared to the prior year period due to the license transitions in North America partially offset by growth in the ongoing licensing business.

Revenue by Brand:

• Tommy Hilfiger – Revenue was approximately flat compared to the prior year period, which reflects an approximately 3% increase attributable to the transition in-house of previously licensed TOMMY HILFIGER women’s product categories in Americas. The impact related to foreign currency translation was immaterial.
• Calvin Klein – Revenue decreased 7% compared to the prior year period, which reflects an approximately 4% decrease attributable to the impact of wholesale shipment timing in Americas as discussed above. The impact related to foreign currency translation was immaterial.

Revenue by Channel:

• Direct-to-consumer – Revenue was approximately flat compared to the prior year period. The impact related to foreign currency translation was immaterial.
• Owned and operated retail stores – Revenue decreased 1% compared to the prior year period. Revenue growth in APAC was more than offset by declines in EMEA and Americas. The impact related to foreign currency translation was immaterial.
• Owned and operated digital commerce – Revenue increased 4% compared to the prior year period, including a 1% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue growth in Americas and EMEA was partially offset by a decline in APAC.
• Wholesale – Revenue decreased 6% compared to the prior year period, with revenue declines in all regions. The impact related to foreign currency translation was immaterial.

Gross Profit

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 products, 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.

Gross profit in the second quarter of 2026 was $1.322 billion, or 63.0% of total revenue, compared to $1.251 billion, or 57.7% of total revenue, in the second quarter of the prior year. Approximately 510 of the 530 basis point increase in gross margin was due to the benefit from tariff refunds. The remaining 20 basis point increase compared to the prior year period included the favorable impacts from (i) lower product costs, including the favorable transactional impact of foreign exchange on our international businesses, particularly our European business and (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 gross margins, partially offset by (i) an increase in promotional selling as compared to the prior year period in EMEA, (ii) the incremental negative impact of the tariffs on goods coming into the U.S., net of mitigation actions, 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.

SG&A Expenses

SG&A expenses in the second quarter of 2026 were $1.112 billion, or 53.1% of total revenue, compared to $1.129 billion, or 52.1% of total revenue, in the second quarter of the prior year. The 100 basis point increase in SG&A as a percentage of revenue was primarily driven by (i) an increase in marketing and other strategic investments, (ii) the impact from the deleveraging of expenses on lower revenue, 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 SG&A expenses as a percentage of revenue. These increases were partially offset by the favorable impacts of (i) cost savings resulting from the Growth Driver 5 Actions and (ii) a net decrease in restructuring costs incurred in the second quarter of 2026 in connection with the Growth Driver 5 Actions compared to the prior year period.

Goodwill and Other Intangible Asset Impairments

We recorded a pre-tax noncash goodwill impairment charge of $439 million in the second quarter of 2026 in conjunction with an interim goodwill impairment test, which was primarily due to changes in valuation assumptions associated with geopolitical and macroeconomic factors. Please see Note 5, “Goodwill and Other Intangible Assets,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion of these impairments.

Non-Service Related Pension and Postretirement (Cost)

Non-service related pension and postretirement cost was $1 million in each of the second 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.

Other Gain

We recorded a gain of $25 million in the second quarter of 2026 in connection with the sale of an owned warehouse and distribution center. Please see Note 4, “Assets Held for Sale,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Equity in Net Income of Unconsolidated Affiliates

The equity in net income of unconsolidated affiliates was $14 million in the second quarter of 2026 compared to $12 million in the second quarter of the prior year. These amounts relate to our share of income (loss) from (i) our joint venture for the TOMMY HILFIGER and 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 HILFIGER and Calvin Klein brands and certain licensed trademarks in the United States and Canada. The equity in net income of unconsolidated affiliates for the second quarter of 2026 increased compared to the prior year period primarily due to an increase in income attributable to our PVH Legwear LLC joint venture. Our investments in the joint ventures are being accounted for under the equity method of accounting.

(Loss) Income Before Interest and Taxes

(Loss) income before interest and taxes in the second quarter of 2026 was $(191) million, or (9.1)% of total revenue, compared to $133 million, or 6.1% of total revenue, in the second quarter of the prior year, and included changes in our segments’ income (loss) before interest and taxes and other reconciling items as follows:

• EMEA – Income before interest and taxes in the second quarter of 2026 was $159 million, or 16.1% of total revenue, compared to $179 million, or 17.0% of total revenue in the second quarter of the prior year. The 90 basis point decrease reflects a 70 basis point increase in SG&A expenses as a percentage of revenue and a 20 basis point decrease in gross margin. The increase in SG&A expenses as a percentage of revenue includes (i) an increase in marketing and other strategic investments, (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) a deleveraging of expenses resulting from the decrease in revenue partially offset by (iv) savings resulting from Growth Driver 5 Actions. The decrease in gross margin was driven by an increase in promotional selling as compared to the prior year period partially offset by (i) lower products costs, including the favorable transactional impact of foreign exchange and (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 gross margin as a percentage of revenue.
• Americas – Income before interest and taxes in the second quarter of 2026 was $195 million, or 28.7% of total revenue, compared to $73 million, or 10.7% of total revenue in the second quarter of the prior year. The 1,800 basis point increase reflects an approximately 1,570 basis point benefit from the $107 million in tariff refunds received in the second quarter of 2026. The remaining 230 basis point increase compared to the second quarter of the prior year reflects a 140 basis point increase in gross margin despite the impact of the increase in tariff costs on goods coming into the United States, net of mitigation actions, and a 90 basis point decrease in SG&A expenses as a percentage of revenue. The increase in gross margin reflects (i) lower product costs, (ii) a decrease in promotional selling as

compared to the prior year period, 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 margin as a percentage of revenue, partially offset by (iv) an increase in tariff costs on goods coming into the United States, net of mitigation actions. The decrease in SG&A expenses as a percentage of revenue includes the savings resulting from the Growth Driver 5 Actions, partially offset by an increase in marketing and other strategic investments.

• APAC – Income before interest and taxes in the second quarter of 2026 was $48 million, or 13.8% of total revenue, compared to $51 million, or 15.3% of total revenue in the second quarter of the prior year. The 145 basis point decrease reflects a 175 basis point increase in SG&A as a percentage of revenue which includes an increase in marketing and other strategic investments, partially offset by a 30 basis point increase in gross margin primarily due to a decrease in promotional selling compared to the second quarter of the prior year.
• Licensing – Income before interest and taxes in the second quarter of 2026 was $74 million, a 13% decrease compared to $85 million in the second quarter of the prior year, due to the license transitions in North America partially offset by growth in the ongoing licensing business.
• Corporate and other costs were $243 million in the second quarter of 2026, an increase of $33 million compared to $210 million in the prior year period, primarily due to (i) an increase in marketing and other strategic investments and (ii) an increase in centrally managed information technology and support costs resulting from the Growth Driver 5 Actions taken in respect of the initiatives to move to a single global technology stack and streamline and optimize our support functions globally. Overall, the Growth Driver 5 Actions drove significant savings in the second quarter with savings in the regional segments more than offsetting an increase in Corporate information technology and support costs.
• Restructuring and other items were $423 million and included (i) the $439 million pre-tax noncash goodwill impairment charge and (ii) the net gain of $15 million related to the Growth Driver 5 Actions, consisting of a $25 million gain on the sale of an owned warehouse and distribution center partially offset by $10 million of restructuring costs, consisting principally of severance. Restructuring and other items were $45 million in the second quarter of the prior year including restructuring costs in connection with the Growth Driver 5 Actions, consisting principally of severance.

Interest Expense, Net

Interest expense, net decreased to $12 million in the second quarter of 2026 from $22 million in the second quarter of the prior year, primarily due to (i) an increase in interest income, partially due to higher cash balances and (ii) a decrease in interest expense due to lower short-term borrowings as compared to the prior year period.

Income Tax (Benefit)

The effective income tax rate for the second quarter of 2026 was 49.2% compared to (101.6)% in the second quarter of the prior year.

The effective income tax rate for the second quarter of 2026 reflected a $(100) million income tax benefit recorded on $(203) million of pre-tax losses. The effective income tax rate for the second quarter of 2025 reflected a $(113) million income tax benefit recorded on $111 million of pre-tax income.

The effective income tax rate for the second quarter of 2026 was higher than the prior year period primarily due to the impacts from (i) the $439 million pre-tax noncash goodwill impairment charge recorded in the second quarter of 2026, which was non-deductible for tax purposes and factored into our annualized effective income tax rate in 2026, and resulted in a 26.9% increase to our effective income tax rate for the second quarter of 2026 and (ii) the $480 million pre-tax noncash goodwill and other intangible asset impairment charges recorded in the first quarter of 2025, which were non-deductible for tax purposes and factored into our annualized effective income tax rate in 2025, resulting in a (122.9)% decrease to our effective income tax rate for the second quarter 2025.

Twenty-Six Weeks Ended August 2, 2026 Compared With Twenty-Six Weeks Ended August 3, 2025

The following table summarizes our consolidated statements of operations for the twenty-six weeks ended August 2, 2026 compared to the twenty-six week period of the prior year:

(Dollars in Millions)

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Total Revenue

Total revenue in the twenty-six weeks ended August 2, 2026 was $4.122 billion compared to $4.151 billion in the twenty-six week period of the prior year. The overall decrease in revenue of $29 million, or 1%, included a positive impact of $91 million, or 2%, related to foreign currency translation.

Revenue by Segment:

• EMEA – Revenue decreased $44 million, or 2%, compared to the twenty-six week period of the prior year, including a positive impact of $66 million, or 3%, related to foreign currency translation, and the continued soft consumer demand due to the prolonged effects from the conflict in the Middle East and its broader macroeconomic impacts. Excluding the impact of foreign currency translation, the decrease in revenue was driven by a decline in the wholesale businesses. In the direct-to-consumer business, growth in digital commerce revenue was more than offset by a decrease in stores.
• Americas – Revenue decreased $9 million, or 1%, compared to the twenty-six week period of the prior year, including a positive impact of $5 million, or less than 1%, related to foreign currency translation, as growth in the direct-to-consumer business was more than offset by at decrease in the wholesale business. The decline in wholesale revenue included (i) a decrease due to a shift in the timing of wholesale shipments, primarily in the Calvin Klein business, to the second half of this year as compared to the prior year period partially offset by (ii) an increase associated with the transition in-house of previously licensed TOMMY HILFIGER women’s product categories.
• APAC – Revenue increased $44 million, or 6%, compared to the twenty-six week period of the prior year, including a positive impact of $20 million, or 3%, related to foreign currency translation and a 2% 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. Excluding the impact of foreign currency translation, the increase in revenue reflected growth in the direct-to-consumer business partially offset by a decrease in the wholesale business.
• Licensing – Revenue decreased $19 million, or 10%, compared to the twenty-six week period of the prior year due to the license transitions in North America.

Revenue by Brand:

• Tommy Hilfiger – Revenue increased 1% compared to the twenty-six week period of the prior year including a 2% positive foreign currency impact, which reflects an approximately 2% increase attributable to the transition in-house of previously licensed TOMMY HILFIGER women’s product categories in Americas.
• Calvin Klein – Revenue decreased 3% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact, which reflects an approximately 3% decrease attributable to the impact of wholesale shipment timing in Americas as discussed above.

Revenue by Channel:

• Direct-to-consumer – Revenue increased 3% compared to the twenty-six week period of the prior year including a 2% positive foreign currency impact.
• Owned and operated retail stores – Revenue increased 2% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact. Excluding the impact of foreign currency translation, revenue growth in APAC was largely offset by declines in EMEA and Americas.
• Owned and operated digital commerce – Revenue increased 7% compared to the twenty-six week period of the prior year, including a 2% positive foreign currency impact, with revenue increasing across all regions.
• Wholesale – Revenue decreased 3% compared to the twenty-six week period of the prior year, including a 3% positive foreign currency impact, with revenue declines in all regions.

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.

Gross Profit

Gross profit in the twenty-six weeks ended August 2, 2026 was $2.508 billion, or 60.8% of total revenue, compared to $2.413 billion, or 58.1% of total revenue, in the twenty-six week period of the prior year. The 270 basis point increase reflects an approximately 260 basis point benefit from tariff refunds. The remaining 10 basis point increase compared to the prior year period included the favorable impacts from (i) lower product costs, including the favorable transactional impact of foreign exchange on our international businesses, particularly our European business and (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 gross margins. These increases were partially offset by (i) an increase in promotional selling as compared to the prior year period in EMEA, (ii) the negative impact of the tariffs on goods coming into the U.S., net of mitigation actions, 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.

We currently expect that gross margin for the full year 2026 will increase approximately 100 basis points compared to 2025. This outlook reflects (i) the approximately 120 basis point benefit from tariff refunds recognized in the second quarter of 2026, (ii) lower product costs, including the approximately 50 basis point favorable transactional impact of foreign exchange on our international businesses as discussed above and (iii) a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel as discussed above. These increases are expected to be partially offset by (i) the negative impact of the tariffs on goods coming into the U.S., net of mitigation actions, (ii) an increase in promotional selling as compared to the prior year period, and (iii) 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.

SG&A Expenses

SG&A expenses in the twenty-six weeks ended August 2, 2026 were $2.187 billion, or 53.1% of total revenue, compared to $2.153 billion, or 51.9% of total revenue, in the twenty-six week period of the prior year. The 120 basis point increase was primarily driven by (i) an increase in marketing and other strategic investments, (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 connection with the Growth Driver 5 Actions compared to the twenty-six week period of the prior year.

We currently expect that SG&A expenses as a percentage of revenue for the full year 2026 will be relatively flat compared to 2025 as the 120 basis point increase in the first half of 2026, including an increase in marketing and other strategic investments, will be offset by a decrease in the second half of 2026. SG&A expenses as a percentage of revenue for the full year are expected to include an approximately 100 basis point decrease resulting from a decrease in restructuring costs incurred in 2026 as compared to 2025 in connection with the Growth Driver 5 Actions. This decrease is expected to be offset by the net impact of (i) an increase in marketing and other strategic investments and (ii) the impact from the deleveraging of expenses partially offset by (iii) the cost savings resulting from the Growth Driver 5 Actions. Our expectation for 2026 includes the $17 million restructuring costs incurred in the first twenty-six weeks of 2026 in connection with the Growth Driver 5 Actions but does not include any further restructuring costs beyond August 2, 2026. Restructuring costs incurred in the full year 2025 in connection with the Growth Driver 5 Actions were $93 million. We expect additional actions, on a limited basis, in 2026, however the impact of these remaining actions cannot be quantified at this time.

Goodwill and Other Intangible Asset Impairments

We recorded a pre-tax noncash goodwill impairment charge of $439 million in conjunction with an interim goodwill impairment test in the twenty-six weeks ended August 2, 2026, as discussed above.

We recorded pre-tax noncash goodwill and other intangible asset impairment charges of $480 million during the first quarter of 2025 in conjunction with interim goodwill and other intangible assets impairment tests, including $426 million related to goodwill and $54 million related to our Australia reacquired perpetual license rights, which were primarily due to a significant increase in discount rates.

Please see Note 5, “Goodwill and Other Intangible Assets,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion of these impairments.

Non-Service Related Pension and Postretirement (Cost)

Non-service related pension and postretirement cost was $1 million in the twenty-six weeks ended August 2, 2026 as compared to $2 million in the twenty-six weeks period of the prior year. 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.

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 cost for the full year 2026 will be approximately $3 million compared to income of $9 million in the twenty-six week period of the prior year, which included an actuarial gain of $13 million. Our expectation of 2026 non-service related pension and postretirement (cost) 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 (cost) income may be significantly different than our projections.

Other Gain

We recorded a gain of $25 million in the twenty-six weeks ended August 2, 2026 in connection with the sale of an owned warehouse and distribution center. Please see Note 4, “Assets Held for Sale,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Equity in Net Income of Unconsolidated Affiliates

The equity in net income of unconsolidated affiliates was $27 million in the twenty-six weeks ended August 2, 2026 compared to $23 million in the twenty-six week period of the prior year. These amounts relate to our share of income (loss) from our unconsolidated affiliates as described in the thirteen weeks discussion above. The equity in net income of unconsolidated affiliates for the twenty-six weeks ended August 2, 2026 increased as compared to the twenty-six week period of the prior year primarily due to an increase in income attributable to our PVH Legwear LLC joint venture. Our investments in the joint ventures are being accounted for under the equity method of accounting.

We currently expect that our equity in net income of unconsolidated affiliates for full year 2026 will be approximately $50 million as compared to $45 million in 2025.

(Loss) Income Before Interest and Taxes

(Loss) income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $(67) million, or (1.6)% of total revenue, compared to $(199) million, or (4.8)% of total revenue, in the twenty-six week period of the prior year, and included changes in our segments’ income (loss) before interest and taxes and other reconciling items as follows:

• EMEA – Income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $311 million, or 16.1% of total revenue, compared to $328 million, or 16.6% of total revenue in the twenty-six week period of the prior year. The 50 basis point decrease was primarily driven by an increase in SG&A expenses as a percentage of revenue which includes (i) an increase in marketing and other strategic investments, (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 portion of total revenue and carries higher SG&A expenses as a percentage of revenue, and (iii) a deleveraging of expenses resulting from the decrease in revenue. These increases were partially offset by savings resulting from Growth Driver 5 Actions. Gross margin was flat compared to the prior year period.
• Americas – Income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $246 million, or 19.2% of total revenue, compared to $134 million, or 10.4% of total revenue in the twenty-six week period of the prior year. The 880 basis point increase reflects an approximately 830 basis point benefit from the $107 million in tariff refunds received in the second quarter of 2026. The remaining 50 basis point increase compared to the prior year period reflects a 60 basis point decrease in SG&A expenses as a percentage of revenue and a 10 basis point decrease in gross margin excluding the impact of tariff refunds as noted above. The decrease in SG&A as a percentage of revenue includes savings resulting from the Growth Driver 5 Actions partially offset by an increase in marketing and other strategic investments. The decrease in gross margin includes the increase in tariffs on goods coming into the United States, net of mitigation actions.
• APAC – Income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $137 million, or 18.7% of total revenue, compared to $130 million, or 19.0% of total revenue in the twenty-six week period of the prior year. The 30 basis point decrease reflects a 120 basis point increase in SG&A as a percentage of sales, including (i) an increase in marketing and other strategic investments and (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, partially offset by a 90 basis point increase in gross margin which reflects the favorable impacts of a change in the revenue mix between our direct-to-consumer distribution channel and our wholesale distribution channel as discussed above, as our direct-to-consumer distribution channel carries higher gross margins.
• Licensing – Income before interest and taxes in the twenty-six weeks ended August 2, 2026 was $148 million, a 10% decrease compared to $166 million in the twenty-six week period of the prior year due to the license transitions in North America.
• Corporate and other costs were $479 million in the twenty-six weeks ended August 2, 2026, an increase of $60 million compared to $419 million in the twenty-six week period of the prior year, primarily due to (i) an increase in marketing and other strategic investments and (ii) an increase in centrally managed information technology and support costs resulting from the Growth Driver 5 Actions taken in respect of the initiatives to move to a single global technology stack and streamline and optimize our support functions globally. Overall, the Growth Driver 5 Actions drove significant savings in the twenty-six weeks ended August 2, 2026 with savings in the regional segments more than offsetting an increase in Corporate information technology and support costs.
• Restructuring and other items were $430 million in the twenty-six weeks ended August 2, 2026 and included (i) the $439 million pre-tax noncash goodwill impairment charge and (ii) the net gain of $9 million related to the Growth Driver 5 Actions, consisting of a $25 million gain on the sale of an owned warehouse and distribution center, partially offset by $17 million of restructuring costs, consisting principally of severance. Restructuring and other items were

$538 million in the twenty-six week period of the prior year, consisting of (i) $480 million of pre-tax noncash goodwill and other intangible asset impairment charges and (ii) $58 million of restructuring costs related to the Growth Driver 5 Actions, consisting principally of severance.

Interest Expense, Net

Interest expense, net decreased to $27 million in the twenty-six weeks ended August 2, 2026 from $39 million in the twenty-six week period of the prior year primarily due to (i) an increase in interest income, partially due to higher cash balances and (ii) a decrease in interest expense due to lower short-term borrowings as compared to the prior year period.

Interest expense, net for the full year 2026 is currently expected to be approximately $70 million as compared to $79 million in 2025.

Income Tax (Benefit)

The effective income tax rate for the twenty-six weeks ended August 2, 2026 was 84.2% compared to 175.3% in the twenty-six week period of the prior year.

The effective income tax rate for the twenty-six weeks ended August 2, 2026 reflected a $(79) million income tax benefit recorded on $(94) million of pre-tax losses. The effective income tax rate for the twenty-six week period of the prior year reflected a $(418) million income tax benefit recorded on $(238) million of pre-tax losses.

The effective income tax rate for the twenty-six weeks ended August 2, 2026 was lower than the twenty-six week period of the prior year primarily due to the impacts of (i) the $439 million pre-tax noncash goodwill impairment charge recorded in the second quarter of 2026, which was non-deductible for tax purposes and factored into our annualized effective income tax rate in 2026, and resulted in a 63.0% increase to our effective income tax rate for the twenty-six weeks ended August 2, 2026 and (ii) the $480 million pre-tax noncash goodwill and other intangible asset impairment charges recorded in the first quarter of 2025, which were non-deductible for tax purposes and factored into our annualized effective income tax rate in 2025, and resulted in a 156.4% increase to our effective income tax rate for the twenty-six week period of the prior year. Since the pre-tax goodwill impairment charge has been factored into our annualized effective income tax rate, it will have a continued impact on our quarterly effective tax rates for the remainder of 2026.

The pre-tax noncash goodwill impairment charge will also result in a significant increase to our full year 2026 effective tax rate. Absent the impact of this impairment charge, we currently expect our effective income tax rate in 2026 will be in a range of 22% to 23%.

We file income tax returns in more than 40 international jurisdictions each year. Our tax rate is influenced by several factors, including the mix of international and domestic pre-tax earnings, specific discrete transactions and events, new regulations, audits by tax authorities, and new information received. These elements may lead to adjustments in both our estimate for uncertain tax positions and the overall effective tax rate.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flow Summary and Trends

Cash and cash equivalents at August 2, 2026 was $966 million, an increase of $264 million from $701 million at February 1, 2026. We ended the second quarter of 2026 with approximately $1.7 billion of borrowing capacity available under our various debt facilities. The seasonality of our business results in significant fluctuations in our cash balance during our fiscal year due, in part, to the timing of inventory purchases and peak sales periods.

Cash flow for the full year 2026 will be impacted by various factors, including, as discussed further below in this “Liquidity and Capital Resources” section, (i) expected common stock repurchases under the stock repurchase program of at least $300 million, (ii) projected capital expenditures of approximately $250 million, (iii) net proceeds of $38 million received in the second quarter of 2026 in connection with the sale of the warehouse and distribution center in Jonesville, NC, (iv) net proceeds of $452 million from entering into the 2026 facilities (as defined below) in the second quarter of 2026, (v) the $461 million repayment of the 2022 facilities (as defined below) during the second quarter of 2026, (vi) mandatory long-term debt repayments on our term loans under our 2022 and 2026 facilities of approximately $9 million, subject to exchange rate fluctuations, and (vii) offsetting impacts from cash inflows of $107 million for refunds related to IEEPA tariffs previously paid and an expected reduction in cash due to the prolonged effects from the conflict in the Middle East.

As of August 2, 2026, $427 million of cash and cash equivalents was held by international subsidiaries. Our intent is to reinvest indefinitely substantially all of our historical earnings in foreign subsidiaries outside of the United States in jurisdictions which we would expect to incur material tax costs upon the distribution of such amounts. It is not practicable to estimate the amount of tax that might be payable if these earnings were repatriated due to the complexities associated with the hypothetical calculation.

Operations

Cash provided by operating activities was $336 million in the twenty-six weeks ended August 2, 2026 compared to $142 million in the twenty-six weeks ended August 3, 2025. The increase in cash provided by operating activities as compared to the prior year period was primarily driven by changes in our working capital, including changes in inventories net of the related change in payables and a decrease in trade receivables in the current year period as compared to an increase in trade receivables in the prior year period, primarily driven by a shift in the timing of our wholesale revenue.

Supply Chain Finance Program

We have a voluntary supply chain finance program (the “SCF program”) administered through a third party platform that provides our inventory suppliers with the opportunity to sell their receivables due from us to participating financial institutions in advance of the invoice due date, at the sole discretion of both the suppliers and the financial institutions. We are not a party to the agreements between the suppliers and the financial institutions and have no economic interest in a supplier’s decision to sell a receivable. Our payment obligations, including the amounts due and payment terms, which generally do not exceed 90 days, are not impacted by suppliers’ participation in the SCF program. Please see Note 18, “Other Comments,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion of our SCF program.

Investments in Unconsolidated Affiliates

We received dividends of $34 million and $37 million from our investments in unconsolidated affiliates during the twenty-six weeks ended August 2, 2026 and August 3, 2025, respectively. These dividends are included in our net cash provided by operating activities in our Consolidated Statements of Cash Flows for the respective period.

Sale of Warehouse and Distribution Center

We completed the sale of our owned warehouse and distribution center located in Jonesville, NC on May 11, 2026, for net proceeds of $38 million. Please see Note 4, “Assets Held for Sale,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for further discussion.

Capital Expenditures

Our capital expenditures in the twenty-six weeks ended August 2, 2026 were $76 million compared to $58 million in the twenty-six weeks ended August 3, 2025. We currently expect that capital expenditures for the full year 2026 will be approximately $250 million as compared to $142 million in 2025 and will primarily consist of (i) investments in new stores and store renovations and (ii) investments, upgrades and enhancements in our information technology platforms, systems and infrastructure worldwide.

Dividends

Cash dividends paid on our common stock totaled $4 million in each of the twenty-six weeks ended August 2, 2026 and August 3, 2025.

We currently project that cash dividends paid on our common stock in 2026 will be approximately $7 million.

Acquisition of Treasury Shares

The Board of Directors has authorized over time beginning in 2015 an aggregate $5 billion stock repurchase program through July 30, 2028. Repurchases under the program may be made from time to time over the period through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as we deem appropriate. Purchases are made based on a variety of factors, such as price, corporate requirements and overall market conditions, applicable legal requirements and limitations, trading restrictions under our insider trading policy and other relevant factors. The program may be modified by the Board of Directors, including to increase or decrease the repurchase limitation or extend, suspend or terminate the program at any time, without prior notice. Our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act of 2022.

On April 1, 2025, we entered into accelerated share repurchase (“ASR”) agreements with financial institutions to repurchase an aggregate of $500 million of our shares of common stock under our existing $5 billion stock repurchase authorization. We paid $500 million to the financial institutions and received initial deliveries of an aggregate of approximately 4.6 million shares of our common stock at a price of $76.43 per share, the closing share price of our common stock on April 1, 2025. The value of the initial shares delivered represented approximately 70% of the aggregate purchase price. The ASR agreements were funded with cash on hand and $115 million of short-term borrowings. During the third quarter of 2025, the ASR agreements were settled, and we received an aggregate of approximately 2.3 million of additional shares of our common stock. The total number of shares purchased under the ASR agreements was approximately 6.9 million shares at a price paid per share of $72.44, which was the daily volume-weighted average price of our common stock over the term of the ASR agreements, less a discount, and subject to customary adjustments pursuant to the terms and conditions of the ASR agreements. The ASR agreements were accounted for as a share purchase transaction and forward stock purchase agreement indexed to our common stock.

During the twenty-six weeks ended August 3, 2025, we additionally purchased 0.8 million shares (all prior to the execution of the ASR agreements) of our common stock under the program in open market transactions for $61 million. Excise taxes of $4 million were excluded from the share repurchases for the twenty-six weeks ended August 3, 2025, including in respect of the initial deliveries of the shares repurchased under the ASR agreements.

We did not purchase any of our common stock under the program during the twenty-six weeks ended August 2, 2026. As of August 2, 2026, repurchased shares were held as treasury stock and $1.212 billion of the authorization remained available for future share repurchases, excluding excise taxes, as the excise taxes do not reduce the authorized amount remaining.

We currently expect common stock repurchases under the stock repurchase program of at least $300 million for the full year 2026.

Treasury stock activity also includes shares that were withheld in conjunction with the settlement of restricted stock units and performance share units to satisfy tax withholding requirements.

Financing Arrangements

Our capital structure was as follows:

(In millions)

In addition, we had $966 million, $701 million and $249 million of cash and cash equivalents as of August 2, 2026, February 1, 2026 and August 3, 2025, respectively.

Short-Term Borrowings

We have the ability to draw revolving borrowings under the senior unsecured credit facilities discussed below in the section entitled “2026 Senior Unsecured Credit Facilities.” We had no revolving borrowings outstanding under these facilities as of August 2, 2026.

Additionally, we have the ability to borrow under short-term lines of credit, overdraft facilities and short-term revolving credit facilities denominated in various foreign currencies. These facilities provided for borrowing capacity of up to $234 million based on exchange rates in effect on August 2, 2026 and are utilized primarily to fund working capital needs. We had no borrowings outstanding under these facilities as of August 2, 2026.

Commercial Paper

We have the ability to issue unsecured commercial paper notes with maturities that vary but do not exceed 397 days from the date of issuance primarily to fund working capital needs. Borrowings under the commercial paper note program, when taken together with the revolving borrowings outstanding under the multicurrency revolving credit facility included in the 2026 facilities (as defined below), cannot exceed $1.500 billion. We had no borrowings outstanding under the commercial paper note program as of August 2, 2026.

Finance Lease Obligations

Our cash payments for finance lease liabilities totaled $1 million and $2 million in the twenty-six weeks ended August 2, 2026 and August 3, 2025, respectively.

2026 Senior Unsecured Credit Facilities

On June 24, 2026, (the “Closing Date”), we entered into new senior unsecured credit facilities (the “2026 facilities”), the proceeds of which, along with cash on hand, were used to repay all of the outstanding borrowings under the 2022 facilities (as defined below), as well as the related debt issuance costs.

The 2026 facilities consist of (a) a €400 million euro-denominated Term Loan A facility (the “Euro TLA facility”) and (b) a $1.500 billion United States dollar-denominated multicurrency revolving credit facility (the “multicurrency revolving credit facility”), which is available in United States dollars, euros and other agreed foreign currencies. The 2026 facilities are due on June 24, 2031.

The multicurrency revolving credit facility also includes amounts available for letters of credit and has a portion available for the making of swingline loans. The issuance of such letters of credit and the making of any swingline loan, as customary, reduces the amount available under the multicurrency revolving credit facility.

The terms of the Euro TLA facility require us to make quarterly repayments of amounts outstanding, commencing with the calendar quarter ending September 30, 2026. Such required repayment amounts equal 2.50% per annum of the principal amount outstanding on the Closing Date, paid in equal installments and subject to certain customary adjustments, with the balance due on the maturity date of the Euro TLA facility. The outstanding borrowings under the 2026 facilities are prepayable at any time without penalty (other than customary breakage costs). Any voluntary repayments made by us would reduce the future required repayment amounts.

In connection with the refinancing in 2026 of the 2022 facilities, we paid debt issuance costs of $3 million (of which $0.4 million was expensed as debt modification costs and $3 million is being amortized over the term of the 2026 facilities) and recorded debt extinguishment costs of $1 million to write off previously capitalized debt issuance costs.

We made no payments on our term loan under the 2026 facilities during the twenty-six weeks ended August 2, 2026.

The United States dollar-denominated borrowings under the 2026 facilities bear interest at a rate per annum equal to, at our option, either a base rate or a term secured overnight financing rate (“SOFR”), calculated in a manner set forth in the 2026 facilities, plus an applicable margin.

The euro-denominated borrowings under the Euro TLA facility and multicurrency revolving credit facility bear interest at a rate per annum equal to a euro interbank offered rate (“EURIBOR”) and the euro-denominated swing line borrowings under the 2026 facilities bear interest at a rate per annum equal to a euro short-term rate (“ESTR”), calculated in a manner set forth in the 2026 facilities, plus in each case an applicable margin.

The borrowings denominated in other foreign currencies under the 2026 facilities bear interest at various indexed rates specified in the 2026 facilities and are calculated in a manner set forth in the 2026 facilities, plus an applicable margin.

The applicable margin with respect to the Euro TLA Facility as of August 2, 2026 was 1.125%. The applicable margin with respect to the multicurrency revolving credit facility as of August 2, 2026 was 0.0% for loans bearing interest at the base rate or Canadian prime rate and 1.0% for loans bearing interest at the SOFR, EURIBOR, ESTR or any other rate specified in the 2026 facilities. After the date of delivery of the compliance certificate and financial statements with respect to our fiscal quarter ending on August 1, 2027, the applicable margin for borrowings under the Euro TLA facility and each revolving credit facility will be subject to adjustment based upon (i) our net leverage ratio or (ii) after the date of delivery of notice of a change in our public debt rating by Standard & Poor’s or Moody’s.

The 2026 facilities contain customary events of default, including but not limited to nonpayment; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; cross-default to material indebtedness; certain material judgments; certain events related to the Employee Retirement Income Security Act of 1974, as amended; and a change in control (as defined in the 2026 facilities).

The 2026 facilities require us to comply with customary affirmative and negative covenants, as well as to maintain a maximum net leverage ratio, calculated in a manner set forth in the terms of the 2026 facilities. A breach of any of these operating or financial covenants would result in a default under the 2026 facilities. If an event of default occurs and is continuing, the lenders could elect to declare all amounts then outstanding, together with accrued interest, to be immediately due and payable, which would result in acceleration of our other debt.

2022 Senior Unsecured Credit Facilities

On December 9, 2022, we entered into senior unsecured credit facilities (the “2022 facilities”). We replaced the 2022 facilities with the 2026 facilities. The 2022 facilities consisted of (a) a €441 million euro-denominated Term Loan A facility, of which €405 million was outstanding as of the date it was replaced, (b) a $1.150 billion United States dollar-denominated multicurrency revolving credit facility, available in (i) United States dollars, (ii) Australian dollars (limited to A$50 million), (iii) Canadian dollars (limited to C$70 million), or (iv) euros, yen, pounds sterling, Swiss francs or other agreed foreign currencies (limited to €250 million), and (c) a $50 million United States dollar-denominated revolving credit facility available in United States dollars or Hong Kong dollars.

We made payments totaling $464 million on our term loan under the 2022 facilities during 2026, which included a $3 million mandatory payment and the $461 million repayment of the 2022 facilities in connection with the refinancing of the senior credit facilities. We made payments totaling $6 million on our term loan under the 2022 facilities during the twenty-six weeks ended August 3, 2025. We currently expect to make total long-term debt repayments of approximately $470 million, subject to exchange rate fluctuations, for the full year 2026, inclusive of the $461 million repayment of the 2022 facilities noted above.

4 5/8% Senior Notes Due 2025

We had outstanding $500 million principal amount of 4 5/8% senior notes due July 10, 2025. We repaid these notes upon maturity utilizing the net proceeds from the issuance of the $500 million principal amount of 5 1/2% senior notes due June 13, 2030 together with other available funds, as discussed below.

3 1/8% Euro Senior Notes Due 2027

We have outstanding €600 million principal amount of 3 1/8% senior notes due December 15, 2027. We may redeem some or all of these notes at any time prior to September 15, 2027 by paying a “make whole” premium plus any accrued and unpaid interest. In addition, in advance of maturity, we may redeem the remaining outstanding notes beginning on September 15, 2027 at their principal amount plus any accrued and unpaid interest.

4 1/8% Euro Senior Notes Due 2029

We have outstanding €525 million principal amount of 4 1/8% senior notes due July 16, 2029. We may redeem some or all of these notes at any time prior to April 16, 2029 by paying a “make whole” premium, plus any accrued and unpaid interest. In addition, in advance of maturity, we may redeem the remaining outstanding notes beginning on April 16, 2029, or at any time in the event of certain developments affecting taxation, at their principal amount plus any accrued and unpaid interest.

5 1/2% Senior Notes Due 2030

We issued on June 13, 2025, $500 million principal amount of 5 1/2% senior notes due June 13, 2030. We paid $6 million of fees in connection with the issuance of the notes, which are being amortized over the term of the notes.

We utilized the net proceeds of the offering, together with other available funds, to repay the $500 million principal amount of 4 5/8% senior notes due July 10, 2025, as discussed above.

We may redeem some or all of these notes at any time prior to May 13, 2030 by paying a “make whole” premium, plus any accrued and unpaid interest. In addition, in advance of maturity, we may redeem the remaining outstanding notes beginning on May 13, 2030 at their principal amount plus any accrued and unpaid interest.

Our financing arrangements contain financial and non-financial covenants and customary events of default. As of August 2, 2026, we were in compliance with all applicable financial and non-financial covenants under our financing arrangements.

As of August 2, 2026, our issuer credit was rated BBB by Standard & Poor’s with a stable outlook and our corporate credit was rated Baa3 by Moody’s with a stable outlook, and our commercial paper was rated A-2 by Standard & Poor’s and P-3 by Moody’s. In assessing our credit strength, we believe that both Standard & Poor’s and Moody’s considered, among other things, our capital structure and financial policies, our consolidated balance sheet, our historical acquisition activity and other financial information, including our revenue growth and operating margin, as well as industry and other qualitative factors.

Please see Note 7, “Debt,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report for a schedule of mandatory long-term debt repayments for the remainder of 2026 through 2031.

Please see Note 8, “Debt,” in the Notes to Consolidated Financial Statements included in Item 8 of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for further discussion of our debt.

CRITICAL ACCOUNTING POLICIES

Our consolidated financial statements are based on the selection and application of significant accounting policies, which require management to make significant estimates and assumptions. Our significant accounting policies are outlined in Note 1, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in Item 8 of our Annual Report on Form 10-K for the fiscal year ended February 1, 2026. During the twenty-six weeks ended August 2, 2026, there were no significant changes to our critical accounting policies from those described in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026.

Financial instruments held by us primarily include cash and cash equivalents, short-term borrowings (when facilities are drawn or commercial paper is issued), long-term debt, foreign currency forward contracts and cross-currency swap contracts. Note 10, “Fair Value Measurements,” in the Notes to Consolidated Financial Statements included in Part I, Item 1 of this report outlines the fair value of our financial instruments as of August 2, 2026. Cash and cash equivalents held by us are affected by short-term interest rates. Given our balance of cash and cash equivalents at August 2, 2026, the effect of a 10 basis point change in short-term interest rates on our interest income would be approximately $1.0 million annually. Borrowings under our senior unsecured term loan facility bear interest at a rate equal to an applicable margin plus a variable rate. As such, our senior unsecured term loan facility exposes us to market risk for changes in interest rates. As of August 2, 2026, approximately 80% of our long-term debt was at a fixed interest rate, with the remaining (euro-denominated) balance at a variable interest rate. Interest on the euro-denominated debt is subject to change based on fluctuations in the one-month euro interbank offered rate (“EURIBOR”). The effect of a 10 basis point change in the current one-month EURIBOR on our variable interest expense would be approximately $0.5 million annually. Please see “Liquidity and Capital Resources” in the Management’s Discussion and Analysis section included in Part I, Item 2 of this report for further discussion of our credit facilities.

Our Tommy Hilfiger and Calvin Klein businesses each have substantial international components that expose us to significant foreign exchange risk. Over 70% of our $9.0 billion of revenue in 2025 was generated outside of the United States. Changes in exchange rates between the United States dollar and other currencies can impact our financial results in two ways: a translational impact and a transactional impact.

The translational impact refers to the impact that changes in exchange rates can have on our results of operations and financial position. The functional currencies of our foreign subsidiaries are generally the applicable local currencies. Our consolidated financial statements are presented in United States dollars. The results of operations of our foreign subsidiaries are translated into United States dollars using an average exchange rate over the representative period and the assets and liabilities of our foreign subsidiaries are translated into United States dollars using the closing exchange rate at the balance sheet date. Foreign exchange differences that arise from the translation of our foreign subsidiaries’ assets and liabilities into United States dollars are recorded as foreign currency translation adjustments in other comprehensive income (loss). Accordingly, our results of operations and other comprehensive income (loss) will be unfavorably impacted during times of a strengthening United States dollar, particularly against the euro, the Japanese yen, the Korean won, the British pound, the Australian dollar, the Canadian dollar, the Mexican peso, the Brazilian real and the Chinese yuan, and favorably impacted during times of a weakening United States dollar against those currencies.

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.

During the twenty-six weeks ended August 2, 2026, we recognized unfavorable foreign currency translation adjustments of $63 million within other comprehensive (loss) income principally driven by a strengthening of the United States dollar since February 1, 2026 against the euro of 3%. Our foreign currency translation adjustments recorded in other comprehensive (loss) income are significantly impacted by the substantial amount of goodwill and other intangible assets denominated in the euro, which represented 42% of our $4.6 billion total goodwill and other intangible assets as of August 2, 2026. This translational impact of the euro was partially mitigated by the change in the fair value of our net investment hedges discussed below.

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 also have exposure to changes in foreign currency rates related to certain intercompany transactions and SG&A expenses. We currently use and plan to continue to use foreign currency forward contracts or other derivative instruments to mitigate the cash flow or market value risks associated with these inventory and intercompany transactions, but we are unable to entirely eliminate these risks. We enter into foreign currency forward contracts pertaining to these inventory transactions up to 15 months in advance of payment for a portion of the projected purchases and may enter into incremental contracts leading up to the time the payments occur.

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.

Given our foreign currency forward contracts outstanding at August 2, 2026, the effect of a 10% change in foreign currency exchange rates against the United States dollar would result in a change in the fair value of these contracts of approximately $110 million. Any change in the fair value of these contracts would be substantially offset by a change in the fair value of the underlying hedged items.

In order to mitigate a portion of our exposure to changes in foreign currency exchange rates related to the value of our investments in foreign subsidiaries denominated in the euro, we use both non-derivative instruments (the par value of certain of our foreign-denominated debt) and derivative instruments (cross-currency swap contracts), which we designate as net investment hedges. We designated the par value of our €1.125 billion aggregate principal amount of 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 receive fixed-rate United States dollar-denominated interest and pay fixed-rate euro-denominated interest cross-currency swap contracts in 2023, with a maturity date of July 2025. In July 2025, we completed a transaction to effectively blend and extend those cross-currency swaps with new receive fixed-rate United States dollar-denominated interest and pay fixed-rate euro-denominated interest 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. 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.

The effect of a 10% change in the euro against the United States dollar would result in a change in the fair value of the net investment hedges of approximately $180 million. Any change in the fair value of the net investment hedges would be more than offset by a change in the value of our investments in certain of our European subsidiaries. Additionally, during times of a strengthening United States dollar against the euro, we would be required to use a lower amount of our cash flows from operations to pay interest and make long-term debt repayments on our euro-denominated senior notes and to settle our cross-currency swap contracts, whereas during times of a weakening United States dollar against the euro, we would be required to use a greater amount of our cash flows from operations to pay interest and make long-term debt repayments on these notes and to settle our cross-currency swap contracts.

Included in the calculations of expense and liabilities for our pension plans are various assumptions, including return on assets, discount rates and mortality rates. Actual results could differ from these assumptions, which would require adjustments to our balance sheet and could result in volatility in our future pension expense. Holding all other assumptions constant, a 1% change in the assumed rate of return on assets would result in a change to 2026 net benefit cost related to the pension plans of approximately $4 million. Likewise, a 0.25% change in the assumed discount rate would result in a change to 2026 net benefit cost of approximately $15 million.

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Interim Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Interim Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Interim Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

There have been no changes in our internal control over financial reporting during the period to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Please refer to Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026 for a description of certain significant risks and uncertainties to which our business, financial condition and results of operations are subject. There have been no material changes to these risk factors as of August 2, 2026.