Pvh Corp. · NYSE:PVH

Pvh — Investor Presentation (March 2021)

48 slides from Pvh's investor presentation, March 2021

  1. Slide 1: Investor Update Spring 2021

    Investor Update Spring 2021 1

  2. Slide 2: Safe Harbor

    Safe Harbor We (PVH Corp.) obtained the market and competitive position data used throughout this presentation from research, surveys or studies conducted by third parties, information provided by customers and industry or general publications. Industry publications and surveys generally state that

  3. Slide 3: PVH by the Numbers

    PVH by the Numbers ~33,000 PVH Foundation (the company’s philanthropic division) has been in existence for PVH Established in 1881 Global Associates 30+ Years 15% CAGR >60% for Non-GAAP Earnings per Share* Revenues Generated Outside of the U.S. from 2003-2019 (Pre-Pandemic) $7.1 Billion ~$15 Billion

  4. Slide 4: Three Distinct Businesses, All Positioned for Global Growth

    Three Distinct Businesses, All Positioned for Global Growth 2020 Business Recap PVH CORP. Tommy Hilfiger Calvin Klein Heritage Brands Global Retail Sales: ~$15B Global Retail Sales: $6.9B Global Retail Sales: $6.2B Global Retail Sales: $1.8B Revenues: $7.1B Revenues: $3.6B Revenues: $2.6B Revenues:

  5. Slide 5: PVH is One of the Largest Global Apparel Companies

    PVH is One of the Largest Global Apparel Companies with $7.1 Billion in 2020 Revenues 2020 Revenue ($ in Billions) $9.2 $7.1 $6.7 $5.0 $4.5 $4.3 $3.9 $3.2 $2.3 $2.1 $2.1 $1.9 Source: Factset. 5

  6. Slide 6: A Rich History of Revenue & Earnings Growth Pre-Pandemic

    A Rich History of Revenue & Earnings Growth Pre-Pandemic Revenue & EPS* Growth (2003 – 2019) 12% Revenue CAGR & 15% EPS* CAGR Heightened global volatility Acquired Calvin Klein Great Recession Acquired Tommy Hilfiger Acquired Warnaco $9.60 $9.54 $10 $11,000 $9 $7.94 $9,909 $9,657 $7.30 $8 $7.03 $7.0

  7. Slide 7: Diversified Global Business

    Diversified Global Business Revenue by Business (2020) Revenue by Region (1) (2020) 12% 5% 17% 34% 51% 37% 44% Tommy Hilfiger Calvin Klein Heritage Brands U.S. Europe Asia Pacific Americas (excluding U.S.) (1) Europe includes the Middle East and Africa; Asia Pacific includes Australia and New Zealan

  8. Slide 8: Significant Focus on Digital Expansion & Enhancements

    Significant Focus on Digital Expansion & Enhancements  Over $1 billion in digital sales through our digital sites and digital sites operated by our wholesale partners in 2020 (over 40% growth)  Digital represented nearly 25% of our revenue in 2020 (through our own digital sites and digital sites o

  9. Slide 9: Focus on Product, Consumer and Supply Chain

    Focus on Product, Consumer and Supply Chain Product Consumer Supply Chain  Focused on growth categories, with more  Build on core strengths and connect them  Faster and more responsive supply chain targeted assortments of key essentials and closer to where the consumer is going  Planning invento

  10. Slide 10: Driving Fashion Forward – for Good

    Driving Fashion Forward – for Good Our Ambitions Our 01. Eliminate carbon emissions 05. Source ethically 11. Empower women Priorities 02. End waste 06. Amplify worker voice 12. Foster inclusion & diversity 03. Eliminate hazardous chemicals 07. Promote safe workplaces 13. Develop talent and microfibe

  11. Slide 11: Tommy Hilfiger

    TOMMY HILFIGER  One of the world’s leading designer lifestyle brands  Pioneer of classic American cool style  Strong global brand awareness 11

  12. Slide 12: Tommy Hilfiger – Brand Overview

    Tommy Hilfiger – Brand Overview Distribution  Select Global Retail  Select Global Retail  Global Retail  Select Global Retail  Global tommy.com  Global tommy.com  Global tommy.com  Global tommy.com  Global Wholesale  Global Wholesale  Global Wholesale  Global Wholesale 12

  13. Slide 13: Tommy Hilfiger – Brand Overview: 2020 Regional Breakout

    Tommy Hilfiger – Brand Overview 2020 Regional Breakout Global Retail Sales: $6.9 BN Reported Revenues: $3.6 BN 12% 15% 2% 27% 35% 51% 58% North America(1) Latin America(2) Asia Pacific(3) Europe(4) (1) North America includes Canada and Mexico. (2) Latin America includes South America, the Caribbean

  14. Slide 14: Tommy Hilfiger Strategies

    1. Product Focus Delivering compelling products that reflect 2. Category TOMMY HILFIGER’s Category expansion 3. Regional accessible premium within denim, Regional expansion, positioning and classic womenswear, particularly across Tommy Hilfiger American cool aesthetic, with a focus on sustainability

  15. Slide 15: Tommy Hilfiger – Global Marketing & Communications

    Tommy Hilfiger – Global Marketing & Communications OBJECTIVE: Build on consumer-centric go-to- market strategies to maintain global brand relevance & momentum FOCUS: Digitally led; Attracting a new generation of consumers globally; Blend of global and regional brand ambassadors to connect with consu

  16. Slide 16: Tommy Hilfiger – Business Overview & Financials

    Tommy Hilfiger – Business Overview & Financials Tommy Hilfiger Business Summary $3.6B 2020 Reported Revenues ~$2.7B ~$1.0B International Revenues North America revenues Note: numbers may not foot due to rounding 16

  17. Slide 17: Tommy Hilfiger Europe – Overview

    Tommy Hilfiger Europe – Overview  Healthy brand with premium positioning  Opportunity for further market share gains Largest Category Opportunities Largest Distribution Opportunities 2020 Europe Revenues by Distribution Model(2)  Outsized growth expected through digital:  Continued expansion of

  18. Slide 18: Tommy Hilfiger Asia – Overview

    Tommy Hilfiger Asia – Overview  Healthy brand with premium positioning  China is the largest long-term regional opportunity for Tommy Hilfiger  Strong growth opportunity in Australia Largest Category Opportunities Largest Distribution Opportunities 2020 Asia Revenues by Distribution Model(1)  Ou

  19. Slide 19: Tommy Hilfiger North America – Overview

    Tommy Hilfiger North America – Overview  Healthy brand with premium positioning  Opportunity for further market share gains  Focus on local domestic consumer engagement Largest Category Opportunities Largest Distribution Opportunities 2020 North America  Significant digital opportunity: Revenues

  20. Slide 20: Tommy Hilfiger Licensed Businesses

    Tommy Hilfiger Licensed Businesses Notable Licenses Regional Product Categories Joint Venture India Mexico Brazil Men’s Outerwear and Footwear Watches & Jewelry Women’s Apparel (North (North America) Movado Distributor America) Marc Fisher G-III Indonesia Vietnam Philippines License Men’s Tailored C

  21. Slide 21: Calvin Klein

    CALVIN KLEIN  One of the world’s most recognized brands  Bold, progressive ideals and a sensual aesthetic 21

  22. Slide 22: Calvin Klein – Brand Overview

    Calvin Klein – Brand Overview Distribution  Select Asia Retail  Global Retail  Global Retail  Global Retail  Global Retail  Asia calvinklein.com  Global calvinklein.com  Global calvinklein.com  Global calvinklein.com  Global calvinklein.com  Select Asia Wholesale  Global Wholesale  Glob

  23. Slide 23: Calvin Klein – Brand Overview: 2020 Regional Breakout

    Calvin Klein – Brand Overview 2020 Regional Breakout Global Retail Sales: $6.2 Billion Reported Revenues: $2.6 Billion 2% 2% 16% 23% 36% 49% 33% 39% North America(1) Latin America(2) Asia Pacific(3) Europe(4) (1) North America includes Canada and Mexico. (2) Latin America includes South America, the

  24. Slide 24: Calvin Klein – Global Marketing & Communications

    Calvin Klein – Global Marketing & Communications OBJECTIVE: A marketing approach that brings together all facets of the consumer marketing experience – from consumer engagement to data capabilities to the shopping experience FOCUS: A truly digital first, socially powered marketing experience for con

  25. Slide 25: Calvin Klein – Business Overview & Financials

    Calvin Klein – Business Overview & Financials Calvin Klein Business Summary Approximately 50% of the brand’s global retail sales continues to be from licensing. $2.6B 2020 Reported Revenues Past Today 49% 89% ~$1.7B ~$1.0B 51% International Revenues North America revenues 11% 2012 2020 Licensee Dire

  26. Slide 26: Calvin Klein Strategies

    1. Product Focus 2. Categories Delivering compelling Product improvement and products that reflect Calvin expansion, particularly 3. Regional Klein’s accessible premium within jeanswear, men’s and Regional expansion, positioning and seductive women’s sportswear, particularly across Calvin Klein aest

  27. Slide 27: Calvin Klein North America – Overview

    Calvin Klein North America – Overview  Premium positioning  Focus on driving productivity and operational efficiencies  Focus on local consumer engagement Largest Category Opportunities Largest Distribution Opportunities 2020 North America  Outsized growth expected through digital: Revenues by D

  28. Slide 28: Calvin Klein Europe – Overview

    Calvin Klein Europe – Overview  Europe is the largest near-term regional opportunity for Calvin Klein  Focus on driving productivity and operational efficiencies Largest Category Opportunities Largest Distribution Opportunities 2020 Europe Revenues by Distribution Model(2)  Digital commerce expan

  29. Slide 29: Calvin Klein Asia – Overview

    Calvin Klein Asia– Overview  Healthy brand with premium positioning overseas  Strong growth opportunity in region along with focus on driving productivity and operational efficiencies Largest Category Opportunities Largest Distribution Opportunities 2020 Asia Revenues by Region  Digital commerce

  30. Slide 30: Calvin Klein Latin America – Overview

    Calvin Klein Latin America – Overview  Owned business in Brazil  Joint Venture for Mexico (Grupo Axo), which also includes our Tommy Hilfiger, Warner’s and Olga businesses in Mexico  Licensed business in Latin America, run by American Designer Fashion S.A. Largest Category Opportunities in Brazil

  31. Slide 31: Calvin Klein Licensed Businesses

    Calvin Klein Licensed Businesses 7 significant partnerships represented over 80% of licensing and advertising revenue in 2020. Over time, we look to assume more direct control over various licensed businesses where we have core competencies. Global Retail Sales Women’s Apparel / Other Fragrance Nort

  32. Slide 32: Heritage Brands

    HERITAGE BRANDS  Portfolio of iconic American brands  Generate healthy cash flows  Market share opportunities 32

  33. Slide 33: Heritage Brands – Overview & Financials

    Heritage Brands – Overview & Financials Summary Financials 2020 reported revenues – $0.9 BN Heritage Brands  Women’s intimate apparel  Men’s sportswear  Men’s dress shirts and neckwear Licensed Brands Include:  Kenneth Cole Reaction  MICHAEL Michael Kors  Michael Kors Collection . 33

  34. Slide 34: Heritage Brands Strategies

    1. Product Focus 2. Share Gains Delivering trend-right Leveraging and enhancing products at an attractive each brand’s position in the value proposition, with a market to drive market focus on new technologies, share gains, with a focus on Heritage Brands features and sustainability. the most profit

  35. Slide 35: Market Share Gains Continue to be a Focus for our Heritage Brands Business

    Market Share Gains Continue to be a Focus for our Heritage Brands Business Category Unit share Neckwear >50% Woven Shirts 10%(1) Bras & Panties 9%(1) Knit Shirts 6%(1) Casual Pants 4%(1) (1) Based on percentage of 2020 unit volume in US Department and Chain Stores combined. Source: NPD. 35

  36. Slide 36: Financial Overview

    FINANCIAL OVERVIEW 36

  37. Slide 37: PVH Financial History Pre-Pandemic

    PVH Financial History Pre-Pandemic $ in Millions, Except per Share Data Fiscal Year 2015 2016 2017 2018 2019 (Ended 1/31/16) (Ended 1/29/17) (Ended 2/4/18) (Ended 2/3/19) (Ended 2/2/20) Revenues $8,020 $8,203 $8,915 $9,657 $9,909 Gross margin 51.6% (1) 53.4% (1) 54.9% 55.0% 54.7% (1) EBIT(1) $842 $7

  38. Slide 38: PVH Financial History Pre-Pandemic

    PVH Financial History Pre-Pandemic Free Cash Flow (1) ($ in Millions) Gross Leverage Ratio (2) $800 140% $700 $644 $664 120% 3.4 $600 117% 100% 3.2 3.1x $500 $461 3.0 93% 80% $400 $274 60% 2.8 2.7x $300 62% 40% 2.6 $200 44% 20% 2.4 $100 2.2x 2.2x $0 0% 2.2 2016 2017 2018 2019 2.0 Free Cash Flow (1)

  39. Slide 39: Appendix

    APPENDIX 39 39

  40. Slide 40: GAAP to Non-GAAP Net Income per Common Share Reconciliations (2003-2006)

    GAAP to Non-GAAP Net Income per Common Share Reconciliations (2003-2006) GAAP to Non-GAAP Reconciliations Net Income (Loss) Per Common Share (Dollars and Shares in Millions, Except Per Share Data) 2006 2005 2004 2003 GAAP Adjustments(1) Non-GAAP GAAP Adjustments(2) Non-GAAP GAAP Adjustments(3) Non-G

  41. Slide 41: GAAP to Non-GAAP Net Income per Common Share Reconciliations (2008-2010)

    GAAP to Non-GAAP Net Income per Common Share Reconciliations (2008-2010) GAAP to Non-GAAP Reconciliations Net Income Per Common Share (Dollars and Shares in Millions, Except Per Share Data) 2010 2009 2008 (1) (2) GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP GAAP Adjustments(3) Non-GAAP Net In

  42. Slide 42: GAAP to Non-GAAP Net Income per Common Share Reconciliations (2011-2013)

    GAAP to Non-GAAP Net Income per Common Share Reconciliations (2011-2013) GAAP to Non-GAAP Reconciliations Net Income Per Common Share (Dollars and Shares in Millions, Except Per Share Data) 2013 2012 2011 (1) (2) GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP GAAP Adjustments(3) Non-GAAP Total

  43. Slide 43: GAAP to Non-GAAP Reconciliations (2014-2016)

    GAAP to Non-GAAP Reconciliations (2014-2016) GAAP to Non-GAAP Reconciliations Net Income Per Common Share (Dollars and Shares in Millions, Except Per Share Data) 2016 2015 2014 (1) (2) GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP GAAP Adjustments(3) Non-GAAP Total Revenue $ 8,203.1 $ - $ 8,20

  44. Slide 44: GAAP to Non-GAAP Revenue & Gross Margin Reconciliations

    GAAP to Non-GAAP Revenue & Gross Margin Reconciliations (Dollars in Millions) 2013(1) 2008(2) 2003(3) GAAP Revenue $ 8,186.4 $ 2,492.0 $ 1,569.0 Adjustments 30.0 (95.0) (21.0) Non-GAAP Revenue 8,216.4 2,397.0 1,548.0 (1) Adjustments for 2013 represent the revenue reduction due to sales returns for c

  45. Slide 45: GAAP to Non-GAAP Reconciliations (2017-2019)

    GAAP to Non-GAAP Reconciliations (2017-2019) GAAP to Non-GAAP Reconciliations (Dollars and Shares in Millions, Except Per Share Data) 2017 2018 2019 Adjustments(1) (2) (3) GAAP Non-GAAP GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Revenue Total Revenue $ 8,914.8 $ - $ 8,914.8 $ 9,656.8 $ - $

  46. Slide 46: GAAP to Non-GAAP Gross Debt/EBITDA Reconciliations

    GAAP to Non-GAAP Gross Debt/Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) Reconciliations (1) Amounts that were deemed non-recurring or non-operational for 2014 were (i) the costs incurred in connection with our integration of Warnaco and the related restructuring; (ii) the c

  47. Slide 47: GAAP to Non-GAAP Cash Flow Reconciliations

    GAAP to Non-GAAP Cash Flow Reconciliations GAAP to Non-GAAP Reconciliations Cash Flow (Dollars in Millions) 2014 2015 2016 2017 2018 2019 2020 (1) Cash Flow from Operations $ 749 $ 854 $ 903 $ 644 $ 853 $ 1,020 $ 698 Less: Capital Expenditures 256 264 247 358 380 345 227 Dividends 12 12 12 12 12 11

  48. Slide 48: PVH

    WE PVH

PVH — Investor Presentation (March 2021) on 6ix