PVH Corp. Reports 2012 Third Quarter Results

  PVH Corp. Reports 2012 Third Quarter Results

  *Non-GAAP EPS of $2.34 Exceeded the Top End of the Company’s Guidance by
    $0.04; GAAP EPS Was $2.24
  *Tommy Hilfiger and Calvin Klein Businesses Continue to Drive Earnings
    Performance
  *Full Year Non-GAAP EPS Guidance Raised to a Range of $6.37 to $6.38, an
    Increase of 18% to 19% over the Prior Year’s Non-GAAP EPS

Business Wire

NEW YORK -- November 27, 2012

PVH Corp. [NYSE: PVH] reported 2012 third quarter and year to date results and
updated its guidance for the full year.

Non-GAAP Amounts:

The discussions of historical results in this release that refer to non-GAAP
amounts exclude the items which are described in this release under the
heading “Non-GAAP Exclusions.” Reconciliations of GAAP to non-GAAP amounts are
presented later in this release and identify and quantify all excluded items.

Overview of Third Quarter Results:

  *Earnings per share was $2.34 on a non-GAAP basis, which exceeded the
    Company’s guidance and represents a 24% increase over the prior year
    period’s non-GAAP earnings per share of $1.89.
  *GAAP earnings per share was $2.24 and represents a 45% increase over the
    prior year period’s GAAP earnings per share of $1.54.
  *Revenue of $1.643 billion decreased 1% as compared to the prior year
    period due to a 5% negative impact attributable to the exit from the Izod
    women’s and Timberland wholesale sportswear businesses (worth
    approximately $50 million) and foreign currency translation (worth
    approximately $40 million). On a constant currency basis and excluding the
    impact of exited businesses, revenue increased 4%.
  *Operating margin on a non-GAAP basis increased 150 basis points due to a
    260 basis point gross margin increase, driven by the higher-margin Calvin
    Klein and Tommy Hilfiger businesses growing faster, combined with higher
    average unit retail selling prices and decreased product costs across the
    Company’s businesses. GAAP operating margin increased 260 basis points.

Third Quarter Business Review:

Tommy Hilfiger

Revenue in the Tommy Hilfiger business increased 1% to $833.6 million from
$826.6 million in the prior year’s third quarter, including a negative impact
of approximately $40 million, or 5%, related to foreign currency translation.
On a constant currency basis, Tommy Hilfiger revenue increased 6%.Within the
Tommy Hilfiger North America business, revenue increased 8%, principally
driven by retail comparable store sales growth of 9%.Revenue in the Tommy
Hilfiger International business decreased 4%, due to a negative impact of 8%
related to foreign currency translation.On a constant currency basis, revenue
for the Tommy Hilfiger International business increased 4%, driven by European
retail comparable store sales growth of 14%, partially offset by continued
weakness in Japan, where the Company is currently in the process of
strategically repositioning and investing in the brand.

On a non-GAAP basis, earnings before interest and taxes for the Tommy Hilfiger
business increased 16% to $135.1 million from $116.2 million in the prior
year’s third quarter, due to the net revenue increase discussed above and a
significant improvement in gross margin driven by an increase in average unit
retail selling prices and a decrease in product costs. Partially offsetting
this increase was the negative impact of approximately $10 million related to
foreign currency translation.

On a GAAP basis, earnings before interest and taxes for the Tommy Hilfiger
business increased 42% to $128.8 million, as compared to $90.6 million in the
prior year’s third quarter. This increase was due principally to the net
impact of the overall revenue and gross margin increases noted above, combined
with the absence of expenses incurred in connection with the Company’s buyout
of the perpetual license for Tommy Hilfiger in India and a decrease in
integration and restructuring costs.

Calvin Klein

Revenue in the Calvin Klein business increased 6% to $319.6 million from
$301.2 million in the prior year’s third quarter, driven primarily by a 9%
increase in comparable store sales within the Company’s Calvin Klein outlet
retail business and an 11% increase in the North American wholesale business.
These increases were partially offset by Calvin Klein royalty revenue, which
was relatively flat to the prior year period. Fragrance, women’s sportswear,
dresses, footwear and handbags continued to experience strong growth globally
during the quarter, but were offset by a decline in royalty revenue related to
the upcoming reacquisition of the European bridge apparel and accessories
business and continued weakness in jeans and women’s underwear in Europe and
the United States.

Earnings before interest and taxes for the Calvin Klein business increased 7%
to $92.4 million as compared to the prior year’s third quarter amount of $86.2
million, driven principally by the revenue increases discussed above, combined
with an improvement in gross margin in the Company’s Calvin Klein apparel
business and a shift in advertising expenses.

Heritage Brands

Total revenue for the Heritage Brands business decreased 7% to $489.5 million
as compared to $526.3 million in the prior year’s third quarter due to a $50
million, or 10%, negative impact related to the exit from the Izod women’s and
Timberland wholesale sportswear businesses. Excluding the impact of exited
businesses, revenue for the Heritage Brands business increased 3%, principally
attributable to strong growth in the Company’s ongoing wholesale sportswear
businesses. Comparable store sales for the Heritage Brands retail business
were relatively flat to the prior year.

Earnings before interest and taxes for the Heritage Brands business was $47.4
million, an increase of 3% as compared to the prior year’s third quarter of
$46.1 million on a non-GAAP basis and an increase of 4% as compared to the
prior year’s third quarter of $45.6 million on a GAAP basis. The increase in
earnings before interest and taxes was due principally to strength in the
wholesale dress furnishings and wholesale sportswear businesses, partially
offset by continued weakness in the retail business, particularly Bass. The
increase in earnings before interest and taxes on a GAAP basis was also
attributable to the absence of $0.5 million of costs incurred in 2011 in
connection with the Company’s termination of its license to market sportswear
under the Timberland brand.

Third Quarter Consolidated Earnings:

On a non-GAAP basis, earnings before interest and taxes increased 10% to
$250.4 million from $227.3 million in the prior year’s third quarter,
including the negative impact of approximately $10 million related to foreign
currency translation and a $3.3 million increase in corporate expenses due
principally to an increase in pension expense resulting from a decrease in
discount rates. Driving the overall increase in non-GAAP earnings before
interest and taxes was (i) an increase of $18.9 million in the Tommy Hilfiger
business, inclusive of approximately $10 million negative impact due to
foreign currency translation; (ii) an increase of $6.3 million in the Calvin
Klein business; and (iii) an increase of $1.3 million in the Heritage Brands
business.

On a GAAP basis, earnings before interest and taxes increased 21% to $237.4
million as compared to $196.8 million in the prior year’s third quarter. The
increase was due principally to the net effect of the changes discussed above,
combined with the net effect of (i) the absence of $20.7 million of expenses
incurred in connection with the Company’s buyout of the perpetual license for
Tommy Hilfiger in India; (ii) a $2.7 million decrease in integration and
restructuring costs associated with the Tommy Hilfiger acquisition; and (iii)
$6.4 million of costs incurred in the current year’s third quarter related to
the pending acquisition of The Warnaco Group, Inc.

Net interest expense decreased $3.3 million to $28.3 million as compared to
the prior year’s third quarter, due principally to lower debt levels in the
current quarter.

The effective tax rate was 21.9% on a non-GAAP basis as compared to 29.4% on a
non-GAAP basis in the prior year’s third quarter. The effective tax rate was
20.9% on a GAAP basis, as compared to 32.1% on a GAAP basis in the prior
year’s third quarter. Continuing to positively impact the Company’s 2012 tax
rates is an increase in the proportion of earnings attributable to foreign
jurisdictions that are subject to favorable tax rates, as well as the
continuation of the tax synergies resulting from the Tommy Hilfiger
acquisition. In addition, positively impacting the third quarter 2012 GAAP
effective tax rate was a benefit resulting from previously unrecognized tax
credits.

The non-GAAP effective tax rate in the third quarter was lower than the
Company’s previous guidance due to the timing of certain discrete tax items,
which benefited the Company’s third quarter non-GAAP earnings per share by
approximately $0.03 and were originally planned to occur in the fourth quarter
of the current year.

Nine Months Consolidated Results:

  *Earnings per share on a non-GAAP basis was $4.90 as compared to $4.20 for
    the prior year.
  *GAAP earnings per share was $4.70 as compared to $3.25 for the prior year.
  *Revenue increased 1% to $4.407 billion, including a negative impact of 4%
    attributable to foreign currency translation and the exited sportswear
    businesses. The overall increase in revenue was due to the net impact of:

       *A 4%, or $90.9 million, increase in the Tommy Hilfiger business,
         including a negative impact of approximately $100 million, or 4%,
         related to foreign currency translation. Within the Tommy Hilfiger
         North America business, revenue increased 10%, principally driven by
         retail comparable store sales growth of 11%.Revenue in the Tommy
         Hilfiger International business was relatively flat to the prior year
         period, including a negative impact of 7% related to foreign currency
         translation. On a constant currency basis, revenue for the Tommy
         Hilfiger International business increased 7%, driven by European
         retail comparable store sales growth of 12%, partially offset by
         continued weakness in Japan, where the Company is currently in the
         process of strategically repositioning and investing in the brand.
       *A 6%, or $46.2 million, increase in the Calvin Klein business, driven
         primarily by a 7% increase in comparable store sales within the
         Company’s Calvin Klein outlet retail business and an 8% increase in
         the North American wholesale business. Royalty revenue increased 1%
         as compared to the prior year, including a negative impact of 2%
         related to foreign currency translation.
       *A 7%, or $88.1 million, decrease in the Heritage Brands business,
         including the negative impact of 5% related to the exited sportswear
         businesses. The Company’s dress furnishings business experienced a 9%
         decrease due to a reduction in sales to a mid-tier department store
         retailer. Comparable store sales in the Heritage Brands retail
         business were relatively flat.

  *On a non-GAAP basis, earnings before interest and taxes increased $14.4
    million to $560.2 million. This change resulted from:

       *A $52.5 million increase in the Tommy Hilfiger business due
         principally to the revenue increase mentioned above combined with an
         increase in gross margin due primarily to higher average unit retail
         selling prices globally. Partially offsetting this increase was the
         negative impact of approximately $15 million related to foreign
         currency translation.
       *A $3.2 million increase in the Calvin Klein business attributed to
         the revenue increase discussed above, partially offset by a planned
         decrease in gross margin resulting principally from the impact of
         higher product costs experienced in the first half of the year.
       *A $28.1 million decrease in the Heritage Brands business due
         principally to the revenue decrease mentioned above, combined with a
         planned decrease in gross margin rates resulting principally from the
         impact of higher product costs experienced in the first half of the
         year.
       *A $13.2 million decrease attributable to an increase in corporate
         expenses due principally to additional pension expense resulting from
         lower discount rates.

  *GAAP earnings before interest and taxes increased $88.6 million to $539.3
    million. Earnings increased $98.5 million and $3.2 million in the Tommy
    Hilfiger and Calvin Klein businesses, respectively, while earnings in the
    Heritage Brands business decreased $21.0 million and corporate expenses
    decreased $7.8 million. These earnings changes were due to the
    above-mentioned items combined with lower integration, restructuring and
    debt modification costs, partially offset by the $6.4 million of costs
    incurred in the current year’s third quarter related to the acquisition of
    Warnaco.
  *On a non-GAAP basis, the effective tax rate was 23.9% as compared to 31.9%
    in the prior year period. The GAAP effective tax rate was 23.6% as
    compared to 33.3% for the prior year period. The Company’s 2012 tax rates
    were positively impacted by an increase in the proportion of earnings
    attributable to foreign jurisdictions that are subject to favorable tax
    rates, as well as the continuation of the tax synergies resulting from the
    Tommy Hilfiger acquisition. In addition, positively impacting the 2012
    GAAP effective tax rate was a benefit resulting from previously
    unrecognized tax credits.

Balance Sheet:

The Company ended the quarter with a net debt position of $1.597 billion,
comprised of $1.874 billion of debt, net of $276.6 million of cash. During the
third quarter, the Company made payments totaling $77.7 million on its
outstanding term loans, for total term loan payments of approximately $170
million during the first nine months of 2012 and approximately $870 million
since the date of the Tommy Hilfiger acquisition, the majority of which were
voluntary. The Company currently plans to make term loan payments of
approximately $130 million during the remainder of 2012.

Ending inventories increased 2% to $855.4 million over the prior year’s third
quarter. The Company continues to remain very comfortable with the quality of
its inventory.

2012 Guidance:

Please see the section entitled “Full Year and Fourth Quarter Reconciliations
of GAAP to Non-GAAP Amounts” at the end of this release for further detail and
reconciliations of GAAP to non-GAAP amounts discussed in this section.

Warnaco Acquisition

The Company announced in the fourth quarter of 2012 that it had entered into a
definitive agreement to acquire The Warnaco Group, Inc., with an expected
closing date early in 2013. The following provides guidance for the Company’s
full year and fourth quarter 2012, which does not give effect to the Warnaco
acquisition and assumes the Company continues on a standalone basis.

Full Year Guidance

Revenue in 2012 is projected to increase approximately 2% as compared to
$5.891 billion in 2011. On a constant currency basis and excluding the impact
of the exited businesses, 2012 revenue is projected to increase approximately
6%. Foreign currency translation is expected to have a negative revenue impact
of approximately $120 million, or 2%, while the exit from the Izod women’s and
Timberland wholesale sportswear businesses is expected to reduce revenue by
approximately $100 million, or 2%, for a total decrease in revenue of
approximately 4% related to these items.

Revenue for the Tommy Hilfiger business is expected to increase approximately
4% as compared to $3.051 billion in 2011, including a negative foreign
currency translation impact of approximately 4%. Revenue for the Calvin Klein
business is expected to grow approximately 7% as compared to $1.065 billion in
2011. Calvin Klein royalty revenue is expected to be negatively impacted by
foreign currency translation, the upcoming reacquisition of the ck Calvin
Klein European apparel and accessories licenses and the ongoing challenging
business for the jeans and underwear product categories in Europe and the
United States. Revenue for the Heritage Brands business is expected to
decrease approximately 5% as compared to $1.775 billion in 2011, attributable
to a 6% negative impact related to the previously mentioned exited sportswear
businesses.

On a non-GAAP basis, earnings per share in 2012 is currently projected to be
in the range of $6.37 to $6.38, an increase of 18% to 19% over the 2011 amount
of $5.38. The Company estimates that the 2012 effective tax rate will be
approximately 23.5%.

Fourth Quarter Guidance

Fourth quarter revenue in 2012 is currently projected to increase 4% to 5% as
compared to the prior year’s fourth quarter amount of $1.533 billion. On a
constant currency basis and excluding the impact of the exited businesses,
fourth quarter revenue in 2012 is projected to increase 7% to 8%. Foreign
currency translation is expected to have a negative revenue impact of
approximately $20 million, or 1%, while the exit from the Izod women’s and
Timberland wholesale sportswear businesses is expected to reduce revenue by
approximately $30 million, or 2%, for a total decrease in revenue of
approximately 3% related to these items.

Revenue for the Tommy Hilfiger business is expected to increase approximately
5% as compared to the fourth quarter of 2011, which includes a negative impact
of approximately 2% related to foreign currency translation. Revenue for the
Calvin Klein business is expected to grow approximately 10% as compared to the
fourth quarter of 2011. Revenue for the Heritage Brands business is expected
to be relatively flat as compared to the fourth quarter of 2011, inclusive of
a 7% negative impact related to the exited sportswear businesses.

On a non-GAAP basis, earnings per share for the fourth quarter is currently
projected to be in the range of $1.48 to $1.49, including the negative impact
Hurricane Sandy had on business in the first half of November. This represents
an increase of 25% to 26% over $1.18 in the prior year’s fourth quarter. The
Company does not expect that foreign currency translation will have a material
impact on earnings in the fourth quarter as compared to the prior year. The
Company currently estimates that the fourth quarter 2012 effective tax rate
will be approximately 22.0%, which reflects the timing of certain discrete tax
benefits moving out of the fourth quarter and into the third quarter, as
previously mentioned.

CEO Comments:

Commenting on these results, Emanuel Chirico, Chairman and Chief Executive
Officer, noted, “We are very pleased with our third quarter and year-to-date
performance, which was primarily driven by the Tommy Hilfiger and Calvin Klein
businesses continuing to exhibit strong global growth, allowing us to exceed
our previous earnings guidance. The Heritage Brands business saw some modest
improvement in the quarter, which we believe demonstrates that this business
is on the path to return to its historic profitability levels. Taking into
account the third quarter outperformance across our businesses, coupled with
the impact of Hurricane Sandy, we have once again raised our full year
earnings guidance, despite the uncertain global economic and market
conditions.”

Mr. Chirico continued, “The worldwide consumer appeal for Calvin Klein and
Tommy Hilfiger has allowed us to successfully expand our market share
penetration and global reach of our designer lifestyle brands, despite the
macroeconomic headwinds. We believe we can continue to grow our businesses
profitably in the future by identifying and executing additional strategic
opportunities for all of our brands, including the recently announced
acquisition of Warnaco and formation of a joint venture in Brazil for the
Tommy Hilfiger brand.”

Mr. Chirico concluded, “Both the PVH and Warnaco management teams are working
diligently to consummate the Warnaco acquisition. We currently expect this
transaction to close in early 2013. As we highlighted when we announced the
acquisition, this is a unique opportunity to reunite the “House of Calvin
Klein” to ensure a single global brand vision. This acquisition also allows us
to align our strong operating platforms in North America and Europe with
Warnaco’s operations in Asia and Latin America, which will give the combined
company strong established operations in every major consumer market
worldwide. This will pave the way for enhanced revenue and earnings growth,
while also improving operating margins in the future. As we head into the
important holiday selling season, we remain firm in our belief that the
strength of our brands, the sound execution of our business strategies,
continued investment in our world-class brands and our strong credit profile
will continue to drive long-term growth and will position us to deliver strong
earnings results in the fourth quarter of 2012 and beyond.”

Non-GAAP Exclusions:

The discussions in this release that refer to non-GAAP amounts exclude the
following:

  *Pre-tax costs of $69.5 million incurred in 2011 in connection with the
    integration of Tommy Hilfiger and the related restructuring, of which
    $30.5 million was incurred in the first quarter, $11.2 million was
    incurred in the second quarter, $9.3 million was incurred in the third
    quarter, and $18.6 million was incurred in the fourth quarter.
  *Pre-tax costs of $16.2 million incurred in the first quarter of 2011 in
    connection with the amendment and restatement of the Company’s credit
    facility.
  *Pre-tax costs of $8.1 million incurred in 2011 in connection with the
    Company’s negotiated early termination of its license to market sportswear
    under the Timberland brand and the Company’s 2012 exit from the Izod
    women’s wholesale sportswear business, of which $6.7 million was incurred
    in the second quarter, $0.5 million was incurred in the third quarter and
    $1.0 million was incurred in the fourth quarter.
  *A pre-tax expense of $20.7 million incurred in the third quarter of 2011
    in connection with the Company’s reacquisition of the rights in India to
    the Tommy Hilfiger trademarks that had been subject to a perpetual
    license, as under accounting rules, the Company was required to record an
    expense due to settling the preexisting license agreement, which was
    unfavorable to the Company.
  *A tax benefit of $5.4 million recorded in the fourth quarter of 2011
    resulting from revaluing certain deferred tax liabilities in connection
    with a decrease in the statutory tax rate in Japan.
  *Pre-tax costs of approximately $15 million expected to be incurred in 2012
    principally in connection with the integration of Tommy Hilfiger and the
    related restructuring, of which $3.3 million was incurred in the first
    quarter, $4.5 million was incurred in the second quarter, $6.6 million was
    incurred in the third quarter, and approximately $1 million is expected to
    be incurred in the fourth quarter.
  *Pre-tax costs of approximately $36 million expected to be incurred in 2012
    in connection with the acquisition of Warnaco, of which $6.4 million was
    incurred in the third quarter and approximately $30 million is expected to
    be incurred in the fourth quarter.
  *A tax benefit of $4.5 million recorded in the third quarter of 2012
    resulting from previously unrecognized tax credits.
  *Estimated tax effects associated with the above pre-tax costs, which are
    based on the Company’s assessment of deductibility. In making this
    assessment, the Company evaluated each item that it has recorded as an
    acquisition, integration, restructuring or debt modification cost to
    determine if such cost is tax deductible, and if so, in what jurisdiction
    the deduction would occur. All items above were identified as either
    primarily tax deductible in the United States, in which case the Company
    assumed a combined federal and state tax rate of 38.0%, or as
    non-deductible, in which case the Company assumed no tax benefit.

Please see Tables 1 through 5 and the section entitled “Full Year and Fourth
Quarter Reconciliations of GAAP to Non-GAAP Amounts” later in this release for
reconciliations of GAAP to non-GAAP amounts.

The Company webcasts its conference calls to review its earnings releases. The
Company’s conference call to review its third quarter earnings release is
scheduled for Wednesday, November 28, 2012 at 9:00 a.m. EST. Please log on
either to the Company’s web site at  www.pvh.com and go to the Press Releases
page under the Investors tab or to www.companyboardroom.com to listen to the
live webcast of the conference call. The webcast will be available for replay
for one year after it is held, commencing approximately two hours after the
live broadcast ends. Please log on to www.pvh.com or www.companyboardroom.com
as described above to listen to the replay. In addition, an audio replay of
the conference call is available for 48 hours starting approximately two hours
after it is held. The replay of the conference call can be accessed by calling
(domestic) 888-203-1112 and (international) 719-457-0820 and using passcode
#7917574. The conference call and webcast consist of copyrighted material.
They may not be re-recorded, reproduced, re-transmitted, rebroadcast or
otherwise used without the Company’s express written permission. Your
participation represents your consent to these terms and conditions, which are
governed by New York law.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: Forward-looking statements in this press release and made during the
conference call/webcast, including, without limitation, statements relating to
the Company’s future revenue and earnings, plans, strategies, objectives,
expectations and intentions, including, without limitation, statements
relating to the Company’s proposed acquisition of The Warnaco Group, Inc.
(“Warnaco”), are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that such
forward-looking statements are inherently subject to risks and uncertainties,
many of which cannot be predicted with accuracy, and some of which might not
be anticipated, including, without limitation, the following: (i)the
Company’s plans, strategies, objectives, expectations and intentions are
subject to change at any time at the discretion of the Company; (ii)the
Company’s proposed acquisition of Warnaco is subject to conditions, which may
not be satisfied, in which event the transaction may not close; (iii) in
connection with the acquisition of Tommy Hilfiger B.V. and certain affiliated
companies, the Company borrowed significant amounts, and in connection with
the proposed acquisition of Warnaco, the Company intends to borrow additional
significant amounts, may now or thereafter be considered to be highly
leveraged, and uses and will have to continue to use a significant portion of
its cash flows to service such indebtedness, as a result of which the Company
might not have sufficient funds to operate its businesses in the manner it
intends or has operated in the past; (iv)the levels of sales of the Company’s
apparel, footwear and related products, both to its wholesale customers and in
its retail stores, the levels of sales of the Company’s licensees at wholesale
and retail, and the extent of discounts and promotional pricing in which the
Company and its licensees and other business partners are required to engage,
all of which can be affected by weather conditions, changes in the economy,
fuel prices, reductions in travel, fashion trends, consolidations,
repositionings and bankruptcies in the retail industries, repositionings of
brands by the Company’s licensors and other factors; (v)the Company’s plans
and results of operations will be affected by the Company’s ability to manage
its growth and inventory, including the Company’s ability to realize benefits
from Warnaco, if the acquisition is consummated; (vi)the Company’s operations
and results could be affected by quota restrictions and the imposition of
safeguard controls (which, among other things, could limit the Company’s
ability to produce products in cost-effective countries that have the labor
and technical expertise needed), the availability and cost of raw materials,
the Company’s ability to adjust timely to changes in trade regulations and the
migration and development of manufacturers (which can affect where the
Company’s products can best be produced), changes in available factory and
shipping capacity, wage and shipping cost escalation, and civil conflict, war
or terrorist acts, the threat of any of the foregoing, or political and labor
instability in any of the countries where the Company’s or its licensees’ or
other business partners’ products are sold, produced or are planned to be sold
or produced; (vii)disease epidemics and health related concerns, which could
result in closed factories, reduced workforces, scarcity of raw materials and
scrutiny or embargoing of goods produced in infected areas, as well as reduced
consumer traffic and purchasing, as consumers become ill or limit or cease
shopping in order to avoid exposure; (viii)acquisitions and issues arising
with acquisitions and proposed transactions, including, without limitation,
the ability to integrate an acquired entity, such as Warnaco, into the Company
with no substantial adverse affect on the acquired entity’s or the Company’s
existing operations, employee relationships, vendor relationships, customer
relationships or financial performance; (ix)the failure of the Company’s
licensees to market successfully licensed products or to preserve the value of
the Company’s brands, or their misuse of the Company’s brands; and (x)other
risks and uncertainties indicated from time to time in the Company’s filings
with the Securities and Exchange Commission (“SEC”).

This press release includes, and the conference call/webcast will include,
certain non-GAAP financial measures, as defined under SEC rules. A
reconciliation of these measures is included in the financial information
later in this release, as well as in the Company’s Current Report on Form 8-K
furnished to the SEC in connection with this earnings release, which is
available on the Company’s website at www.pvh.com and on the SEC’s website at
www.sec.gov.

The Company does not undertake any obligation to update publicly any
forward-looking statement, including, without limitation, any estimate
regarding revenue or earnings, whether as a result of the receipt of new
information, future events or otherwise.

                                                          
PVH CORP.

Consolidated
GAAP Income
Statements

(In thousands,
except per
share data)
                                                                   
                                                                   
                   Quarter Ended                   Nine Months Ended
                   10/28/12        10/30/11        10/28/12        10/30/11
                                                                   
Net sales          $ 1,501,442     $ 1,517,494     $ 4,033,911     $ 4,002,210
Royalty            103,944         102,541         271,917         261,552
revenue
Advertising
and other          37,384          34,125          100,971         94,026
revenue
Total revenue      $ 1,642,770     $ 1,654,160     $ 4,406,799     $ 4,357,788
                                                                   
Gross profit       $ 727,756       $ 692,302       $ 1,995,686     $ 1,926,101
on net sales
Gross profit
on royalty,
advertising        141,328         136,666         372,888         355,578
and other
revenue
Total gross        869,084         828,968         2,368,574       2,281,679
profit
                                                                   
Selling,
general and        634,854         632,982         1,834,288       1,815,537
administrative
expenses
                                                                   
Debt
modification                                                       16,233
costs
                                                                   
Equity in
income of          3,193           856            5,043           856
unconsolidated
affiliates
                                                                   
Earnings
before             237,423         196,842         539,329         450,765
interest and
taxes
                                                                   
Interest           28,284          31,542         85,883          96,058
expense, net
                                                                   
Pre-tax income     209,139         165,300         453,446         354,707
                                                                   
Income tax         43,730          53,061         107,221         118,072
expense
                                                                   
Net income         $ 165,409       $ 112,239      $ 346,225       $ 236,635
                                                                   
Diluted net
income per         $ 2.24         $ 1.54          $ 4.70          $ 3.25
common
share^(1)
                                                                   
                   Quarter Ended                   Nine Months Ended
                   10/28/12        10/30/11        10/28/12        10/30/11
                                                                   
Depreciation
and                $ 34,752        $ 32,321        $ 102,544       $ 98,768
amortization
expense
                                                                     

Please see following pages for information related to non-GAAP measures
discussed in this release.

^(1) Please see Note A in the Notes to Consolidated GAAP Income Statements for
reconciliations of diluted net income per common share.

PVH CORP.
Non-GAAP Measures
(In thousands, except per share data)

The Company believes presenting its results excluding (i) the costs incurred
in 2012 and 2011 in connection with its integration of Tommy Hilfiger and the
related restructuring; (ii) the costs incurred in 2012 in connection with its
pending acquisition of Warnaco, which is expected to close in early 2013;
(iii) the expense incurred in 2011 associated with settling the unfavorable
preexisting license agreement in connection with its buyout of the perpetual
license for Tommy Hilfiger in India; (iv) the costs incurred in 2011 in
connection with the modification of its credit facility; (v) the costs
incurred in 2011 in connection with the negotiated early termination of its
license to market sportswear under the Timberland brand; (vi) the tax effects
associated with these costs; and (vii) the tax benefit in 2012 resulting from
previously unrecognized tax credits, which are on a non-GAAP basis for each
year, provides useful additional information to investors.The Company
believes that the exclusion of such amounts facilitates comparing current
results against past and future results by eliminating amounts that it
believes are not comparable between periods, thereby permitting management to
evaluate performance and investors to make decisions based on the ongoing
operations of the Company.The Company believes that investors often look at
ongoing operations of an enterprise as a measure of assessing performance. The
Company uses its results excluding these amounts to evaluate its operating
performance and to discuss its business with investment institutions, the
Company’s Board of Directors and others.The Company’s results excluding the
costs described above in (i) through (vi) are also the basis for certain
incentive compensation calculations.

The following table presents the Company’s GAAP revenue and the non-GAAP
measures that are discussed in this release. Please see Tables 1 through 5 for
reconciliations of the GAAP amounts to non-GAAP amounts.

                                                           
                   Quarter Ended                   Nine Months Ended
                   10/28/12        10/30/11        10/28/12        10/30/11
                                                                   
GAAP total         $ 1,642,770     $ 1,654,160     $ 4,406,799     $ 4,357,788
revenue
                                                                   
Non-GAAP
Measures
Total gross                        $ 832,389                       $ 2,287,253
profit^(1)
Selling, general
and                $ 621,881       605,928         $ 1,813,458     1,742,301
administrative
expenses^(2)
Earnings before
interest and       250,396         227,317         560,159         545,808
taxes^(3)
Income tax         48,643          57,557          113,317         143,676
expense^(4)
Net income^(5)     173,469         138,218         360,959         306,074
Diluted net
income per         $ 2.34          $ 1.89          $ 4.90          $ 4.20
common share^(6)
                                                                     

^(1)  Please see Table 3 for reconciliation of GAAP to non-GAAP gross profit.
^(2)   Please see Table 4 for reconciliation of GAAP to non-GAAP selling,
       general and administrative expenses (“SG&A”).
^(3)   Please see Table 2 for reconciliation of GAAP to non-GAAP earnings
       before interest and taxes.
       Please see Table 5 for reconciliation of GAAP to non-GAAP income tax
^(4)   expense and an explanation of the calculation of the tax effects
       associated with acquisition, integration, restructuring and debt
       modification costs.
^(5)   Please see Table 1 for reconciliation of GAAP to non-GAAP net income.
^(6)   Please see Note A in the Notes to Consolidated GAAP Income Statements
       for reconciliations of diluted net income per common share.
       


PVH CORP.

Reconciliations of GAAP to Non-GAAP Amounts

(In thousands, except per share data)

Table 1 - Reconciliation of GAAP net income to non-GAAP net income
                                                          
                   Quarter Ended                   Nine Months Ended
                   10/28/12        10/30/11        10/28/12        10/30/11
                                                                   
Net income         $ 165,409       $ 112,239       $ 346,225       $ 236,635
                                                                   
Diluted net
income per         $ 2.24          $ 1.54          $ 4.70          $ 3.25
common
share^(1)
                                                                   
Items
excluded:
                                                                   
Inventory
liquidation
costs
associated
with exit of                       3,421                           5,574
certain Tommy
Hilfiger
product
categories
(gross margin)
                                                                   
SG&A expenses
associated
with buyout of
perpetual                          20,709                          20,709
license for
Tommy Hilfiger
in India
                                                                   
SG&A expenses
associated
with Tommy
Hilfiger           6,561           5,843           14,418          45,375
integration
and related
restructuring
                                                                   
SG&A expenses
associated
with
negotiated
termination of                     502                             7,152
license to
market
Timberland
sportswear
                                                                   
SG&A expenses
associated
with pending       6,412                           6,412
acquisition of
Warnaco
                                                                   
Debt
modification                                                       16,233
costs
                                                                   
Tax effect of
the items          (413      )     (4,496    )     (1,596    )     (25,604   )
above^(2)
                                                                   
Tax benefit
resulting from
previously         (4,500    )                    (4,500    )     
unrecognized
tax credits
                                                                   
Non-GAAP net       $ 173,469       $ 138,218       $ 360,959       $ 306,074
income
                                                                   
Non-GAAP
diluted net
income per         $ 2.34        $ 1.89        $ 4.90        $ 4.20    
common
share^(1)
                                                                   

^(1)  Please see Note A in the Notes to the Consolidated GAAP Income
       Statements for reconciliations of diluted net income per common share.
^(2)   Please see Table 5 for an explanation of the calculation of the tax
       effects of the above items.
       


Table 2 - Reconciliation of GAAP earnings before interest and taxes to
non-GAAP earnings before interest and taxes
                                                             
                       Quarter Ended                   Nine Months Ended
                       10/28/12      10/30/11          10/28/12      10/30/11
                                                                     
Earnings before        $ 237,423     $ 196,842         $ 539,329     $ 450,765
interest and taxes
                                                                     
Items excluded:
                                                                     
Inventory
liquidation costs
associated with
exit of certain                      3,421                           5,574
Tommy Hilfiger
product categories
(gross margin)
                                                                     
SG&A expenses
associated with
buyout of                            20,709                          20,709
perpetual license
for Tommy Hilfiger
in India
                                                                     
SG&A expenses
associated with
Tommy Hilfiger         6,561         5,843             14,418        45,375
integration and
related
restructuring
                                                                     
SG&A expenses
associated with
negotiated
termination of                       502                             7,152
license to market
Timberland
sportswear
                                                                     
SG&A expenses
associated with
pending                6,412                           6,412
acquisition of
Warnaco
                                                                     
Debt modification                                                 16,233
costs
                                                                     
Non-GAAP earnings
before interest        $ 250,396    $ 227,317        $ 560,159    $ 545,808
and taxes

                                                        
Table 3 - Reconciliation of GAAP gross profit to non-GAAP gross profit
                                                        
                                          Quarter Ended    Nine Months Ended
                                           10/30/11          10/30/11
                                                             
Gross profit                               $   828,968       $    2,281,679
                                                             
Items excluded:
                                                             
Inventory liquidation costs associated
with exit of certain Tommy Hilfiger        3,421             5,574
product categories
                                                             
Non-GAAP gross profit                      $   832,389       $    2,287,253
                                                                  


PVH CORP.

Reconciliations of GAAP to Non-GAAP Amounts (continued)

(In thousands)

Table 4 - Reconciliation of GAAP SG&A to non-GAAP SG&A
                                                           
                  Quarter Ended                   Nine Months Ended
                  10/28/12        10/30/11        10/28/12          10/30/11
                                                                    
SG&A              $ 634,854       $ 632,982       $ 1,834,288       $ 1,815,537
                                                                    
Items
excluded:
                                                                    
SG&A expenses
associated
with buyout
of perpetual                      (20,709   )                       (20,709     )
license for
Tommy
Hilfiger in
India
                                                                    
SG&A expenses
associated
with Tommy
Hilfiger          (6,561    )     (5,843    )     (14,418     )     (45,375     )
integration
and related
restructuring
                                                                    
SG&A expenses
associated
with
negotiated
termination                       (502      )                       (7,152      )
of license to
market
Timberland
sportswear
                                                                    
SG&A expenses
associated
with pending      (6,412    )                    (6,412      )     
acquisition
of Warnaco
                                                                    
Non-GAAP SG&A     $ 621,881      $ 605,928      $ 1,813,458      $ 1,742,301 
                                                                                


Table 5 - Reconciliation of GAAP income tax expense to non-GAAP income tax
expense
                                                           
                     Quarter Ended                   Nine Months Ended
                     10/28/12       10/30/11         10/28/12        10/30/11
                                                                     
Income tax           $ 43,730       $ 53,061         $ 107,221       $ 118,072
expense
                                                                     
Items excluded:
                                                                     
Income tax
effect of
acquisition,
integration,         413            4,496            1,596           25,604
restructuring
and debt
modification
costs ^(1)
                                                                     
Tax benefit
resulting from
previously           4,500                         4,500          
unrecognized tax
credits
                                                                     
Non-GAAP income      $ 48,643      $ 57,557        $ 113,317     $ 143,676
tax expense
                                                                     

       The estimated tax effects of the Company’s acquisition, integration,
       restructuring and debt modification costs are based on the Company’s
       assessment of deductibility. In making this assessment, the Company
       evaluated each item that it has recorded as an acquisition,
       integration, restructuring and debt modification cost to determine if
^(1)  such cost is tax deductible, and if so, in what jurisdiction the
       deduction would occur. All of the Company’s acquisition, integration,
       restructuring and debt modification costs were identified as either
       primarily tax deductible in the United States, in which case the
       Company assumed a combined federal and state tax rate of 38.0%, or as
       non-deductible, in which case the Company assumed no tax benefit.
       

                                                            
PVH CORP.

Notes to Consolidated GAAP Income Statements

(In thousands, except per share data)
                                                                           
A. The Company computed its diluted net income per common share as follows:
                                                                 
                Quarter Ended                                    Quarter Ended
                10/28/12                                         10/30/11
                GAAP                           Non-GAAP      GAAP                           Non-GAAP
                Results       Adjustments          Results       Results       Adjustments          Results
                                                                                                    
Net income      $ 165,409     $  (8,060 ) ^(1)     $ 173,469     $ 112,239     $ (25,979 ) ^(2)     $ 138,218
                                                                                                    
Weighted
average         70,586                             70,586        67,225                             67,225
common
shares
Weighted
average         1,304                              1,304         1,549                              1,549
dilutive
securities
Weighted
average
impact of
assumed         2,095                              2,095         4,189                              4,189
convertible
preferred
stock
conversion
Total           73,985                             73,985        72,963                             72,963
shares
                                                                                                    
Diluted net
income per      $ 2.24                             $ 2.34        $ 1.54                             $ 1.89
common
share
                                                                                                      

                                                           
              Nine Months Ended                                Nine Months Ended
              10/28/12                                         10/30/11
              GAAP                           Non-GAAP      GAAP                           Non-GAAP
              Results       Adjustments          Results       Results       Adjustments          Results
                                                                                                  
Net income    $ 346,225     $ (14,734 ) ^(1)     $ 360,959     $ 236,635     $ (69,439 ) ^(2)     $ 306,074
                                                                                                  
Weighted
average       69,843                             69,843        67,051                             67,051
common
shares
Weighted
average       1,332                              1,332         1,568                              1,568
dilutive
securities
Weighted
average
impact of
assumed       2,555                              2,555         4,189                              4,189
convertible
preferred
stock
conversion
Total         73,730                             73,730        72,808                             72,808
shares
                                                                                                  
Diluted net
income per    $ 4.70                             $ 4.90        $ 3.25                             $ 4.20
common
share
                                                                                                    

       Represents the impact on net income in the period ended October 28,
       2012 from the elimination of (i) the costs incurred in connection with
       the Company’s integration of Tommy Hilfiger and the related
       restructuring; (ii) the costs incurred in connection with the Company’s
^(1)  pending acquisition of Warnaco, which is expected to close in early
       2013; (iii) the tax effects associated with these costs; and (iv) the
       tax benefit resulting from previously unrecognized tax credits. Please
       see Table 1 for a reconciliation of GAAP net income to non-GAAP net
       income.
       Represents the impact on net income in the period ended October 30,
       2011 from the elimination of (i) the costs incurred in connection with
       the Company’s integration of Tommy Hilfiger and related restructuring;
       (ii) the costs incurred in connection with the Company’s modification
       of its credit facility; (iii) the costs incurred in connection with the
^(2)   Company’s negotiated early termination of its license to market
       sportswear under the Timberland brand; (iv) the expense incurred
       associated with settling the unfavorable preexisting license agreement
       in connection with its buyout of the perpetual license for Tommy
       Hilfiger in India; and (v) the tax effects associated with these costs.
       Please see Table 1 for a reconciliation of GAAP net income to non-GAAP
       net income.
       

                                                       
PVH CORP.

Consolidated Balance Sheets

(In thousands)
                                                            
                                          October 28,       October 30,
                                          2012              2011
ASSETS
Current Assets:
Cash and Cash Equivalents                 $ 276,630         $ 159,981
Receivables                               607,465           621,593
Inventories                               855,359           841,928
Other Current Assets                      172,665          168,988
Total Current Assets                      1,912,119         1,792,490
Property, Plant and Equipment             519,863           436,286
Goodwill and Other Intangible Assets      4,383,520         4,519,889
Other Assets                              170,469          173,514
                                          $ 6,985,971      $ 6,922,179
                                                            
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts Payable and Accrued Expenses     $ 913,452         $ 921,531
Short-Term Borrowings                     142,514           12,820
Current Portion of Long-Term Debt         84,000            61,111
Other Liabilities                         1,151,785         1,121,379
Long-Term Debt                            1,647,596         2,030,445
Stockholders’ Equity                      3,046,624        2,774,893
                                          $ 6,985,971      $ 6,922,179
                                                              

                                                            
PVH CORP.
Segment Data
(In thousands)
                                                                 
REVENUE BY SEGMENT
                                               Quarter Ended     Quarter Ended
                                               10/28/12          10/30/11
Heritage Brand Wholesale Dress Furnishings
Net sales                                      $  155,436        $  163,173
Royalty revenue                                1,314             1,681
Advertising and other revenue                  620               496
Total                                          157,370           165,350
                                                                 
Heritage Brand Wholesale Sportswear
Net sales                                      157,761           187,344
Royalty revenue                                2,470             2,498
Advertising and other revenue                  778               408
Total                                          161,009           190,250
                                                                 
Heritage Brand Retail
Net sales                                      169,407           169,269
Royalty revenue                                1,285             1,268
Advertising and other revenue                  438               143
Total                                          171,130           170,680
                                                           
Total Heritage Brands
Net sales                                      482,604           519,786
Royalty revenue                                5,069             5,447
Advertising and other revenue                  1,836             1,047
Total                                        489,509         526,280
                                                                 
Other (Calvin Klein Apparel)
Net sales                                      196,746           174,632
Total                                          196,746           174,632
                                                                 
Calvin Klein Licensing
Net sales                                      12,104            16,339
Royalty revenue                                78,888            80,052
Advertising and other revenue                  31,909            30,216
Total                                          122,901           126,607
                                                           
Total Calvin Klein
Net sales                                      208,850           190,971
Royalty revenue                                78,888            80,052
Advertising and other revenue                  31,909            30,216
Total                                        319,647         301,239
                                                                 
Tommy Hilfiger North America
Net sales                                      376,267           350,281
Royalty revenue                                6,553             5,537
Advertising and other revenue                  2,429             2,002
Total                                          385,249           357,820
                                                                 
Tommy Hilfiger International
Net sales                                      433,721           456,456
Royalty revenue                                13,434            11,505
Advertising and other revenue                  1,210             860
Total                                          448,365           468,821
                                                           
Total Tommy Hilfiger
Net sales                                      809,988           806,737
Royalty revenue                                19,987            17,042
Advertising and other revenue                  3,639            2,862
Total                                        833,614         826,641
                                                                 
Total Revenue
Net sales                                      1,501,442         1,517,494
Royalty revenue                                103,944           102,541
Advertising and other revenue                  37,384           34,125
Total                                          $  1,642,770     $  1,654,160
                                                                    

                                                                                      
PVH CORP.
Segment Data
(continued)
(In
thousands)
                                                                                                                     
EARNINGS BEFORE INTEREST AND TAXES BY SEGMENT
                                                                                                                     
                  Quarter Ended                                          Quarter Ended
                  10/28/12                                              10/30/11
                  Results                                                Results                       
                  Under                               Non-GAAP           Under                             Non-GAAP
                  GAAP            Adjustments^(1)     Results            GAAP^(3)      Adjustments^(2)     Results^(3)
                                                                                                                     
Heritage
Brand
Wholesale         $ 27,162                            $ 27,162           $ 26,026                          $ 26,026
Dress
Furnishings
                                                                                                                     
Heritage
Brand             15,807                              15,807             11,033        $   (502     )      11,535
Wholesale
Sportswear
                                                                                                                     
Heritage          4,409                            4,409             8,535                          8,535     
Brand Retail
                                                                                               
Total
Heritage        47,378                       47,378         45,594         (502     )    46,096    
Brands
                                                                                                                     
Other (Calvin
Klein             30,073                              30,073             26,898                            26,898
Apparel)
                                                                                                                     
Calvin Klein      62,350                           62,350            59,271                         59,271    
Licensing
                                                                                               
Total Calvin    92,423                       92,423         86,169                      86,169    
Klein
                                                                                                                     
Tommy
Hilfiger          66,174                              66,174             41,752            (3,421   )      45,173
North America
                                                                                                                     
Tommy
Hilfiger          62,583         $   (6,301   )      68,884            48,820          (22,209  )      71,029    
International
                                                                                               
Total Tommy     128,757         (6,301   )    135,058        90,572         (25,630  )    116,202   
Hilfiger
                                                                                                                     
Corporate         (31,135   )        (6,672   )      (24,463    )       (25,493   )      (4,343   )      (21,150   )
                                                                                                                     
Total
earnings
before            $ 237,423      $   (12,973  )      $ 250,396         $ 196,842    $   (30,475  )      $ 227,317 
interest and
taxes
                                                                                                                     

       Adjustments for the quarter ended October 28, 2012 represent the
       elimination of the costs incurred in connection with the Company’s (i)
^(1)  integration of Tommy Hilfiger and the related restructuring; and (ii)
       pending acquisition of Warnaco, which is expected to close in early
       2013.
       
       Adjustments for the quarter ended October 30, 2011 represent the
       elimination of the costs incurred in connection with the Company’s (i)
       integration of Tommy Hilfiger and the related restructuring; (ii)
^(2)   settlement of the unfavorable preexisting license agreement in
       connection with the Company’s buyout of the perpetual license for Tommy
       Hilfiger in India; and (iii) negotiated early termination of its
       license to market sportswear under the Timberland brand.
       
       In the fourth quarter of 2011, the Company changed the way actuarial
       gains and losses from its defined benefit pension plans are allocated
^(3)   to its reportable segments. Actuarial gains and losses are now included
       as part of corporate expenses and are not allocated to any reportable
       segment. Prior periods have been restated in order to present that
       information on a basis consistent with the current year.
       

                                                        
PVH CORP.
Segment Data (continued)
(In thousands)
                                                             
REVENUE BY SEGMENT
                                       Nine Months Ended     Nine Months Ended
                                       10/28/12              10/30/11
Heritage Brand Wholesale Dress
Furnishings
Net sales                              $    380,889          $    421,633
Royalty revenue                        4,146                 4,634
Advertising and other revenue          2,157                 1,314
Total                                  387,192               427,581
                                                             
Heritage Brand Wholesale
Sportswear
Net sales                              369,926               418,905
Royalty revenue                        7,477                 7,646
Advertising and other revenue          1,598                 1,289
Total                                  379,001               427,840
                                                             
Heritage Brand Retail
Net sales                              477,062               476,158
Royalty revenue                        3,717                 3,805
Advertising and other revenue          945                   661
Total                                  481,724               480,624
                                                       
Total Heritage Brands
Net sales                              1,227,877             1,316,696
Royalty revenue                        15,340                16,085
Advertising and other revenue          4,700                 3,264
Total                                1,247,917           1,336,045
                                                             
Other (Calvin Klein Apparel)
Net sales                              513,912               469,974
Total                                  513,912               469,974
                                                             
Calvin Klein Licensing
Net sales                              29,327                31,774
Royalty revenue                        203,607               202,491
Advertising and other revenue          86,151                82,546
Total                                  319,085               316,811
                                                       
Total Calvin Klein
Net sales                              543,239               501,748
Royalty revenue                        203,607               202,491
Advertising and other revenue          86,151                82,546
Total                                832,997             786,785
                                                             
Tommy Hilfiger North America
Net sales                              999,729               911,678
Royalty revenue                        16,178                12,658
Advertising and other revenue          6,401                 5,293
Total                                  1,022,308             929,629
                                                             
Tommy Hilfiger International
Net sales                              1,263,066             1,272,088
Royalty revenue                        36,792                30,318
Advertising and other revenue          3,719                 2,923
Total                                  1,303,577             1,305,329
                                                       
Total Tommy Hilfiger
Net sales                              2,262,795             2,183,766
Royalty revenue                        52,970                42,976
Advertising and other revenue          10,120                8,216
Total                                2,325,885           2,234,958
                                                             
Total Revenue
Net sales                              4,033,911             4,002,210
Royalty revenue                        271,917               261,552
Advertising and other revenue          100,971               94,026
Total                                  $    4,406,799        $    4,357,788
                                                                  

                                                                                              
PVH CORP.
Segment Data (continued)
(In
thousands)
                                                                                                            
EARNINGS BEFORE INTEREST AND TAXES BY SEGMENT
                                                                                  
                  Nine Months Ended                                     Nine Months Ended
                 10/28/12                                              10/30/11
                  Results                                               Results
                  Under                               Non-GAAP          Under                               Non-GAAP
                  GAAP            Adjustments^(1)     Results           GAAP^(3)        Adjustments^(2)     Results^(3)
                                                                                                            
Heritage
Brand
Wholesale         $ 45,718                            $ 45,718          $ 60,961                            $ 60,961
Dress
Furnishings
                                                                                                            
Heritage
Brand             31,380                              31,380            20,100          $  (7,152     )     27,252
Wholesale
Sportswear
                                                                                                            
Heritage          11,223                           11,223           28,224                            28,224    
Brand Retail
                                                                                      
Total
Heritage        88,321                       88,321        109,285      (7,152      )    116,437   
Brands
                                                                                                            
Other (Calvin
Klein             62,584                              62,584            69,955                              69,955
Apparel)
                                                                                                            
Calvin Klein      148,408                          148,408          137,862                           137,862   
Licensing
                                                                                      
Total Calvin    210,992                      210,992       207,817                       207,817   
Klein
                                                                                                            
Tommy
Hilfiger          147,801         $   (379     )      148,180           60,967          (33,563     )       94,530
North America
                                                                                                            
Tommy
Hilfiger          177,176           (9,798   )      186,974          165,475        (22,657     )      188,132   
International
                                                                                      
Total Tommy     324,977         (10,177  )    335,154       226,442      (56,220     )    282,662   
Hilfiger
                                                                                                            
Corporate         (84,961   )        (10,653  )      (74,308   )       (92,779   )     (31,671     )      (61,108   )
                                                                                                            
Total
earnings
before            $ 539,329      $   (20,830  )      $ 560,159        $ 450,765      $  (95,043  )      $ 545,808 
interest and
taxes
                                                                                                                      

       Adjustments for the period ended October 28, 2012 represent the
       elimination of the costs incurred in connection with the Company’s (i)
^(1)  integration of Tommy Hilfiger and the related restructuring; and (ii)
       pending acquisition of Warnaco, which is expected to close in early
       2013.
       
       Adjustments for the period ended October 30, 2011 represent the
       elimination of the costs incurred in connection with the Company’s (i)
       integration of Tommy Hilfiger and the related restructuring; (ii)
^(2)   settlement of the unfavorable preexisting license agreement in
       connection with the Company’s buyout of the perpetual license for Tommy
       Hilfiger in India; (iii) modification of its credit facility; and (iv)
       negotiated early termination of its license to market sportswear under
       the Timberland brand.
       
       In the fourth quarter of 2011 the Company changed the way actuarial
       gains and losses from its defined benefit pension plans are allocated
^(3)   to its reportable segments. Actuarial gains and losses are now included
       as part of corporate expenses not allocated to any reportable segments.
       Prior periods have been restated in order to present that information
       on a basis consistent with the current year.
       

PVH CORP.
Full Year and Fourth Quarter Reconciliations of GAAP to Non-GAAP Amounts

The Company is presenting its (1) 2012 estimated results excluding (a) the
costs expected to be incurred in connection with its integration of Tommy
Hilfiger and the related restructuring; (b) the costs expected to be incurred
in connection with its pending acquisition of Warnaco, which is expected to
close in early 2013; (c) the estimated tax effects associated with these
costs; and (d) the tax benefit resulting from previously unrecognized tax
credits, and (2) 2011 results excluding (a) the costs incurred in connection
with its integration of Tommy Hilfiger and the related restructuring; (b) the
costs incurred in connection with the negotiated early termination of its
license to market sportswear under the Timberland brand and the 2012 exit from
its Izod women’s wholesale sportswear business; (c) the expense associated
with settling the unfavorable preexisting license agreement in connection with
its buyout of the perpetual license for Tommy Hilfiger in India; (d) the costs
incurred in connection with the modification of its credit facility; (e) the
estimated tax effects associated with these costs; and (f) the tax benefit
resulting from revaluing certain deferred tax liabilities in connection with a
decrease in the statutory tax rate in Japan. Both the 2012 estimated results
and 2011 results are on a non-GAAP basis. The Company believes presenting
these results on a non-GAAP basis provides useful additional information to
investors. The Company believes that the exclusion of the amounts identified
facilitates comparing current results against past and future results by
eliminating amounts that it believes are not comparable between periods,
thereby permitting management to evaluate performance and investors to make
decisions based on the ongoing operations of the Company.The Company believes
that investors often look at ongoing operations of an enterprise as a measure
of assessing performance. The Company has provided the reconciliations set
forth below to present its estimates on a GAAP basis and excluding these
amounts.The Company uses its results excluding these amounts to evaluate its
operating performance and to discuss its business with investment
institutions, the Company’s Board of Directors and others.The costs
associated with the Company’s integration of Tommy Hilfiger and the related
restructuring, the pending acquisition of Warnaco, the negotiated early
termination of its Timberland license and the 2012 exit from the Izod women’s
wholesale sportswear business, its buyout of the perpetual license for Tommy
Hilfiger in India and the modification of its credit facility are also
excluded from earnings per share calculations for purposes of incentive
compensation awards. The estimated tax effects associated with the above costs
are based on the Company’s assessment of deductibility. In making this
assessment, the Company evaluated each item that it has recorded or expects to
record as an acquisition, integration, restructuring or debt modification cost
to determine if such cost is tax deductible, and if so, in what jurisdiction
the deduction would occur. All items above were identified as either primarily
tax deductible in the United States, in which case the Company assumed a
combined federal and state tax rate of 38.0%, or as non-deductible, in which
case the Company assumed no tax benefit.

                                                           
(Dollar amounts in millions, except per share data)
                                                                
                                              Full Year         Fourth Quarter
2012 Net Income Per Common Share
Reconciliations                               2012              2012

                                              (Estimated)       (Estimated)
                                                                
GAAP net income per common share              $5.84 - $5.85     $1.15 - $1.16
Estimated per common share impact of
after tax acquisition, integration and        $0.53             $0.33
restructuring costs
Net income per common share excluding
impact of acquisition, integration and        $6.37 - $6.38     $1.48 - $1.49
restructuring costs
                                                                

The GAAP net income per common share amounts presented in the above table are
being provided solely to comply with applicable SEC rules and are not, and
should not be construed to be, guidance for the Company’s 2012 fiscal year.
The Company’s net income per common share, as well as the amounts excluded in
providing non-GAAP earnings guidance, would be expected to change as a result
of acquisition, restructuring, divestment or similar transactions or
activities or other one-time events, if any, that the Company engages in or
suffers during the period. Other than the Company’s previously announced
acquisition of Warnaco, the Company has no current understanding or agreement
regarding any such transaction or definitive plans regarding any such
activity.

                                                      
PVH CORP.

Full Year and Fourth Quarter Reconciliations of GAAP to Non-GAAP Amounts (Continued)
                                                                   
Reconciliation of GAAP Diluted Net Income Per Common Share to Non-GAAP Diluted Net Income Per Common
Share
                                                                   
             Full Year 2011                                Fourth Quarter 2011
             (Actual)                                      (Actual)
             Results                          Non-GAAP     Results                          Non-GAAP
             Under     Adjustments        Results      Under     Adjustments        Results
             GAAP                                          GAAP
                                                                                            
Net          $ 317.9     $  (74.3  ) ^(1)     $  392.2     $  81.2     $  (4.9  )  ^(2)     $  86.1
income
Total
weighted     72.9                             72.9         73.3                             73.3
average
shares
                                                                                            
Diluted
net
income       $ 4.36                           $  5.38      $  1.11                          $  1.18
per
common
share
                                                                                               

       Represents the impact on net income in the year ended January 29, 2012
       from the elimination of (i) the costs incurred in connection with the
       Company’s integration of Tommy Hilfiger and the related restructuring;
       (ii) the costs incurred in connection with the Company’s negotiated
       early termination of its license to market sportswear under the
       Timberland brand and the 2012 exit from its Izod women’s wholesale
^(1)  sportswear business; (iii) the expense incurred associated with
       settling the unfavorable preexisting license agreement in connection
       with the Company’s buyout of the perpetual license for Tommy Hilfiger
       in India; (iv) the costs incurred in connection with the modification
       of the Company’s credit facility; (v) the estimated tax effects
       associated with these costs; and (vi) the tax benefit resulting from
       revaluing certain deferred tax liabilities in connection with a
       decrease in the statutory tax rate in Japan.
       
       Represents the impact on net income in the quarter ended January 29,
       2011 from the elimination of (i) the costs incurred in connection with
       the Company’s integration of Tommy Hilfiger and the related
       restructuring; (ii) the costs incurred in connection with the Company’s
^(2)   negotiated early termination of its license to market sportswear under
       the Timberland brand and the 2012 exit from its Izod women’s wholesale
       sportswear business; (iii) the tax effects associated with these costs;
       and (iv) the tax benefit resulting from revaluing certain deferred tax
       liabilities in connection with a decrease in the statutory tax rate in
       Japan.

Contact:

PVH Corp.
Dana Perlman, 212-381-3502
Treasurer and Senior Vice President, Business Development
and Investor Relations
investorrelations@pvh.com