PVH Corp. Announces $500 Million Accelerated Share Repurchase Agreement

As of February 2, 2025, the end of PVH's most recent fiscal year, the company had $1.8 billion available under its existing $5.0 billion stock repurchase authorization. The upcoming ASR is expected to result in the repurchase of approximately 7.7 million shares, representing about 14% of the company's weighted average diluted shares outstanding in the fourth quarter of fiscal 2024.

Zac Coughlin, PVH's Chief Financial Officer, emphasized the strategic rationale behind this decision, stating, “Over the course of the last several years we have continuously strengthened our balance sheet, driven by our robust cash flow generation." He highlighted the prudent and balanced approach to capital allocation, which includes substantial investments in growth initiatives while maintaining a strong commitment to investment-grade credit ratings.

The ASR agreement allows PVH to repurchase shares at a discount based on the volume-weighted average price during the term of the agreement. The company anticipates an initial delivery of approximately 5.4 million shares shortly after the agreements are finalized, amounting to around 70% of the estimated total repurchases. The final settlement is projected to occur in the third quarter of fiscal 2025.

To finance the ASR, PVH plans to utilize a combination of approximately $350 million in cash on hand and up to $150 million in short-term debt. Despite the addition of short-term debt, PVH is confident in its strong cash flow generation and expects to repay this debt by the end of fiscal year 2025, aligning its debt levels with those from fiscal year-end 2024.

Coughlin pointed to the current valuation of PVH's stock relative to its long-term growth potential. The company aims to unlock the value of its renowned brands, including *Calvin Klein* and *TOMMY HILFIGER*, through its PVH+ Plan. This strategy not only positions PVH for future growth but also creates a unique opportunity for shareholders to benefit from significant capital returns.

PVH Corp. is one of the world’s largest fashion companies, with a presence in over 40 countries. With a rich history spanning more than 140 years, PVH is dedicated to driving fashion forward for good through its iconic brands and committed team.

As the company prepares to embark on this significant share repurchase initiative, stakeholders are keenly watching how this move will influence PVH's stock performance and overall market positioning in the competitive fashion landscape.