OUR HERITAGE BRANDS PORTFOLIO CONSISTS OF ICONIC AMERICAN BRANDS THAT GENERATE HEALTHY CASH FLOWS
HERITAGE BRANDS
ORGANIZATION CHART
HERITAGE BRANDS D re s s
F u rn is h i ng s U n d er w e a r /
C o re
I n t i m a t e s S p or t s w e a r Sw im
P r od u c t s BRANDS
OWNED*
+ +THE SPEEDO BRAND IS LICENSED FOR NORTH AMERICA AND THE CARIBBEAN IN PERPETUITY FROM SPEEDO INTERNATIONAL, LIMITED. LICENSED*
Chaps, Claiborne, DKNY, Geoffrey Beene, Ike Behar, J. Garcia, Kenneth Cole Reaction, Kenneth Cole New York, MICHAEL Michael Kors, Michael
Kors Collection, Nautica, Ryan Seacrest, Ted Baker
* P ART IA L LI S T
PRODUCT LINES
BRANDS & PRIMARY DISTRIBUTION AT WHOLESALE+
CATEGORY
MARKET SHARE(1)
NECKWEAR
>50%
DRESS SHIRTS
41%(2)
WOVEN SHIRTS
17%(2)
KNIT SHIRTS
11%(2)
BRAS & PANTIES
10%(2)
MEN’S SWIM
8%(2)
Warner’s: Kohl’s, Macy’s, J.C. Penney, Walmart, Target and The Bay
CASUAL PANTS
7%(2)
Olga: Kohl’s, Macy’s, J.C. Penney, Walmart, Target and The Bay
IZOD: J.C. Penney, Kohl’s, Macy’s and Belk
ARROW: J.C. Penney, Kohl’s, Sears and Stage Stores
Van Heusen: Belk, Stage Stores, Bon-Ton, Macy’s, J.C. Penney and Kohl’s (in addition to
company-operated outlet stores)
Speedo: Target, Dick’s Sporting Goods, Sports Authority and Sport Chalet. E-commerce
distribution on speedousa.com and through the e-commerce operations of several
third-party retailers.
+ Does not include all distribution.
(1) BASED ON UNITS SOLD.
(2) BASED ON PERCENTAGE OF 2014 UNIT VOLUME IN
US DEPARTMENT AND CHAIN STORES COMBINED.
FINANCIAL HISTORY
BUSINESS STRATEGIES
Brand management, as we are committed to designing and marketing quality,
trend-right products that offer great value to our customers.
2012
2013(1)
2014(2)
TOTAL REVENUES
$1,676
$1,987
$1,801
REVENUE GROWTH
-6%
19%
-9%
EBIT+
$115
$154
$112
Expanding distribution, particularly through wholesale and e-commerce
expansion (third party).
EBIT MARGIN+
6.8%
7.8%
6.2%
Growing internationally, including expansion within Europe, Asia, Latin America,
Leveraging and enhancing each division’s positioning in the market.
Australia and New Zealand through licensed partners.
+ 2013 AND 2014 EXCLUDE NON-RECURRING ITEMS. SEE BACK OF PAGE FOR RECONCILIATIONS.
(1) On the first day of the fourth quarter of 2013, we sold our G.H. Bass & Co. business. 2013
and 2014 revenues include the Speedo and Core Intimates businesses acquired through the
Warnaco transaction.
(2) We announced the exit of our IZOD retail business in January 2015.
GAAP TO NON – GAAP RECONCILIATIONS
( DOLLARS IN MILLIONS )
EBIT RECONCILIATIONS
REVENUE
GAAP EBIT
ADJUSTMENTS
NON-GAAP EBIT
NON-GAAP EBIT%
GAAP EBIT%
(1)
2014
$1,801
$72
$(40)
$112
6.2%
4.0%
2013(2)
$1,987
$90
$(64)
$154
7.8%
4.5%
(1) ADJUSTMENTS FOR THE YEAR ENDED FEBRUARY 1, 2015 REPRESENT THE ELIMINATION OF (i) THE COSTS INCURRED IN CONNECTION WITH THE COMPANY’S INTEGRATION OF WARNACO AND THE RELATED RESTRUCTURING; (ii) THE COSTS
INCURRED IN CONNECTION WITH THE COMPANY’S EXIT OF THE IZOD RETAIL BUSINESS, INCLUDING NONCASH IMPAIRMENT CHARGES; AND (iii) THE COSTS INCURRED RELATED TO THE SALE OF THE BASS BUSINESS.
(2) ADJUSTMENTS FOR THE YEAR ENDED FEBRUARY 2, 2014 REPRESENT THE ELIMINATION OF (i) THE COSTS INCURRED IN CONNECTION WITH THE COMPANY’S ACQUISITION AND INTEGRATION OF WARNACO AND THE RELATED RESTRUCTURING;
AND (ii) THE LOSS INCURRED IN CONNECTION WITH THE SALE OF SUBSTANTIALLY ALL OF THE ASSETS OF THE COMPANY’S BASS BUSINESS, INCLUDING RELATED COSTS.
WE (PVH CORP.) OBTAINED OR CREATED THE MARKET AND COMPETITIVE POSITION DATA USED THROUGHOUT THIS PRESENTATION FROM RESEARCH, SURVEYS OR STUDIES CONDUCTED BY THIRD PARTIES (INCLUDING, WITH RESPECT TO THE U.S.
DEPARTMENT AND CHAIN STORE RANKINGS, THE NPD GROUP/POS TRACKING SERVICE), INFORMATION PROVIDED BY CUSTOMERS AND INDUSTRY OR GENERAL PUBLICATIONS. THE SPECIFIC U.S. DEPARTMENT AND CHAIN STORE RANKINGS WE
REFERENCE ARE ON A UNIT BASIS. INDUSTRY PUBLICATIONS AND SURVEYS GENERALLY STATE THAT THEY HAVE OBTAINED INFORMATION FROM SOURCES BELIEVED TO BE RELIABLE BUT DO NOT GUARANTEE THE ACCURACY AND COMPLETENESS
OF SUCH INFORMATION. WHILE WE BELIEVE THAT EACH OF THESE STUDIES AND PUBLICATIONS AND THE OTHER INFORMATION WE RECEIVE OR REVIEW IS RELIABLE, WE HAVE NOT INDEPENDENTLY VERIFIED SUCH DATA AND WE DO NOT MAKE
ANY REPRESENTATION AS TO THE ACCURACY OF SUCH INFORMATION.