In line with the fifth growth driver of the PVH+ Plan – drive efficiencies and invest in growth – the Company embarked on a multi-year initiative beginning in the second quarter of 2024 to simplify its operating model by centralizing certain processes and improving systems and automation to drive more efficient and cost-effective ways of working across the organization, through four main pillars: (i) delivering a single global technology stack, (ii) redesigning the Company’s global distribution network, (iii) reengineering the operating model in Europe, and (iv) streamlining and optimizing the Company’s support functions globally (referred to as “Growth Driver 5 Actions”).

The Company expects to generate annual cost savings of approximately $200 million to $300 million, net of continued strategic investments by 2026, with the actions to support this initiative largely completed by the end of 2025. In connection with this

initiative, the Company recorded pre-tax net costs during 2024 and 2025 as shown in the following table. The Company expects to incur additional pre-tax costs in connection with this initiative, however the additional costs cannot be quantified at this time.


(In millions)	Costs Incurred During the Thirteen and Twenty-Six Weeks Ended 8/4/24		Costs Incurred During the Thirteen Weeks Ended 8/3/25		Costs Incurred During the Twenty-Six Weeks Ended 8/3/25		Cumulative Net Costs Incurred
Severance, termination benefits and other employee costs	$	15.3	$	42.7	$	55.9	$	89.4
Accelerated depreciation (1)	—		2.3		2.3		2.3
Gain on sale of warehouse and distribution center (2)	—		—		—		(9.5)
Total	$	15.3	$	45.0	$	58.2	$	82.2

(1) The Company recorded accelerated depreciation expense during 2025, which was primarily related to legacy technology assets that will be decommissioned as the Company moves to a single global technology stack.

(2) The Company sold a warehouse and distribution center during the third quarter of 2024, resulting in a pre-tax gain of $9.5 million that was recorded during the third quarter of 2024. Such amount represents the consideration received, less costs to sell. The warehouse and distribution center assets had no remaining carrying value at the time of the sale.

The severance, termination benefits and other employee costs and accelerated depreciation expense were recorded in SG&A expenses and the gain on the sale of warehouse and distribution center was included in other gain in the Company’s Consolidated Statements of Operations for the respective periods. These pre-tax net costs are included in restructuring and other for segment data reporting purposes.

The liabilities related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheets and were as follows:


(In millions)	Liability at 2/2/25		Costs Incurred During the Twenty-Six Weeks Ended 8/3/25		Costs Paid During the Twenty-Six Weeks Ended 8/3/25		Liability at 8/3/25
Severance, termination benefits and other employee costs	$	22.6	$	55.9	$	21.8	$	56.7