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 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 as shown in the following table. There have been certain actions taken and additional actions that the Company plans to take under this initiative, on a limited basis, during 2026, including the sale completed in the second quarter of 2026 of the Company’s owned warehouse and distribution center located in Jonesville, NC, as further discussed in Note 4, “Assets Held for Sale.” The impact of these remaining actions cannot be quantified at this time.


(In millions)	Costs Incurred During the Thirteen Weeks Ended 8/3/25		Costs Incurred During the Twenty-Six Weeks Ended 8/3/25		Costs Incurred During the Thirteen Weeks Ended 8/2/26		Costs Incurred During the Twenty-Six Weeks Ended 8/2/26		Cumulative Net Costs Incurred
Severance, termination benefits and other employee costs	$	42.7	$	55.9	$	8.7	$	14.4	$	128.0
Accelerated depreciation (1)	2.3		2.3		1.2		2.4		9.0
Long-lived asset impairments and disposals (1)	—		—		—		—		6.4
Gains on sales of warehouse and distribution centers (2) (3)	—		—		(25.4)		(25.4)		(34.9)
Total	$	45.0	$	58.2	$	(15.5)	$	(8.6)	$	108.5

(1) The Company recorded accelerated depreciation expense and long-lived asset impairments and disposals, 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 second quarter of 2026, resulting in a pre-tax gain of $25.4 million that was recorded during the second quarter of 2026. Such amount represents the consideration received, less costs to sell. Please see Note 4, “Assets Held for Sale,” for further discussion.

(3) 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, accelerated depreciation expense and long-lived asset impairments and disposals were recorded in SG&A expenses and the gains on the sales of warehouse and distribution centers were 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.

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 2/1/26		Costs Incurred During the Twenty-Six Weeks Ended 8/2/26		Costs Paid During the Twenty-Six Weeks Ended 8/2/26		Liability at 8/2/26
Severance, termination benefits and other employee costs	$	30.4	$	14.4	$	25.5	$	19.3