In line with the fifth growth driver of the PVH+ Plan – drive efficiencies and invest in growth – the Company embarked on a multiyear 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”).

In connection with this initiative, the Company recorded pre-tax net costs during 2024 and 2025 as shown in the following table. While the actions to support this initiative were largely completed by the end of 2025, there are certain actions to be completed and additional actions that the Company plans to take under this initiative, on a limited basis, during 2026. Such actions include the completion of the expected sale of the Company’s owned warehouse and distribution center located in Jonesville, NC, as further discussed in Note 3, “Assets Held For Sale.” The net impact of these remaining actions cannot be quantified at this time.


(In millions)	Costs Incurred During 2024		Costs Incurred During 2025		Cumulative Net Costs Incurred
Severance, termination benefits and other employee costs	$	33.5	$	80.1	$	113.6
Accelerated depreciation (1)	—		6.6		6.6
Long-lived asset impairments and disposals (1)	—		6.4		6.4
Gain on sale of warehouse and distribution center (2)	(9.5)		—		(9.5)
Total	$	24.0	$	93.1	$	117.1

(1) The Company recorded accelerated depreciation expense and long-lived asset impairments and disposals during 2025, which were primarily related to legacy technology assets that will be or have been 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 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, accelerated depreciation expense and long-lived asset impairments and disposals 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 items for segment data reporting purposes.


(In millions)	Liability at 2/2/25		Costs Incurred During 2025		Costs Paid During 2025		Liability at 2/1/26
Severance, termination benefits and other employee costs	$	22.6	$	80.1	$	72.3	$	30.4

The Company announced in August 2022 it would be taking steps to streamline its organization and simplify its ways of working. Included in this was a planned reduction in 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, which was completed. These reductions have resulted in annual cost savings of over $100 million, net of continued strategic people investments. In connection with this initiative, the Company recorded pre-tax severance, termination benefits and other employee costs of $81.5 million, of which $61.3 million was incurred during 2023. All expected costs related to this initiative were incurred by the end of 2023.

The severance, termination benefits and other employee costs were recorded in SG&A expenses in the Company’s Consolidated Statements of Operations. These pre-tax net costs are included in restructuring and other items for segment data reporting purposes.