PVH Corp. announces additional headcount reductions under streamlining plan

In a regulatory filing, PVH Corp. said, “PVH Corp. announced in its press release dated August 30, 2022 that the Company would be taking steps to streamline its organization and simplify its ways of working, with plans to reduce people costs in its global offices by approximately 10% by the end of 2023 to drive efficiencies and enable continued strategic investments to fuel growth, including in digital, supply chain and consumer engagement. The Company expects these reductions will generate annual cost savings of more than $100M, net of continued strategic people investments. In connection with these plans, the Company incurred pre-tax costs of $20M in 2022 consisting of severance related to the initial actions taken. The Company announced additional headcount reductions under these plans on July 11, 2023 for which it expects to incur approximately $50M of severance expense, primarily in the second quarter of 2023. Cash payments related to this expense are expected to be made over the next 12 months. These severance costs will be excluded from the Company’s results on a non-GAAP basis and were not included in the Company’s previously provided fiscal 2023 earnings guidance. In the third quarter of 2023, the Company expects to take additional actions under these plans for which severance costs cannot be estimated at this time. The Company expects substantially all actions under these plans to be completed by the end of the third quarter of 2023.”