PVH Corp.

Good day, everyone, and welcome to the PVH Third Quarter 2020 Earnings Call. Today's call is being recorded, and at this time, I would like to turn the call over to Dana Pearlman. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to the PVH Corp Third Quarter 2020 Earnings Conference Call. This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted materials. It may not be recorded, rebroadcast, or otherwise transmitted without PVH's written permission. Your participation in the question and answer session constitutes your consent to having anything you say appear on any transcript or replay of this call. The information to be discussed includes forward-looking statements that reflect PVH's view as of December 2, 2020, of future events and financial performance. These statements are subject to risks and uncertainties indicated in the company's SEC filing and the safe harbor statement included in the press release that is the subject of this call. These risks and uncertainties include PVH's right to change its strategies, objectives, expectations, and intentions, and its need to use significant cash flow to service its debt obligations. Significantly, at this time, the COVID-19 pandemic continues to have a significant impact on the company's business, financial condition, cash flow, and results of operations. There is significant uncertainty about the duration and extent of the impact of the pandemic. The dynamic nature of the circumstances means what is said on this call could change materially at any time. Therefore, the operation of the company's business and its future results of operations could differ materially from historical practices and results or current descriptions, estimates, and suggestions. PVH does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimates or suggestions regarding revenue or earnings. Generally, the financial information and projections to be discussed will be on a non-GAAP basis, as defined under SEC rules. Reconciliations to GAAP amounts are included in PVH's third quarter 2020 earnings release, which can be found on www.pvh.com and in the company's current report on Form 8K, furnished to the SEC in connection with the release. At this time, I'm pleased to turn the conference over to Mr. Manny Chirico, Chairman and CEO of PVH.

Thank you. Good morning, everyone. Joining me on the call this morning is Stephan Larson, our President, Mike Schaefer, our Chief Operating Officer and CFO, and Dana Perlman, Head of Treasury and Senior Vice President of Business Development and Investor Relations. First of all, I'd like to thank you all for joining us for the third quarter call. It's hard to believe that this is the third earnings call since the pandemic started, and our associates in certain parts of the world have been working remotely for over nine months now. I would truly like to thank all our associates for their hard work and flexibility. In particular, our dedicated retail store and distribution center associates who have managed to keep running our business as usual despite the backdrop, which is far from normal. Our third quarter results were very strong and we significantly outperformed our top and bottom line expectations across all markets and channels despite the challenging environment. I'm also very pleased to note that our fourth quarter is off to a very strong start, as we are outperforming our plans for our global holiday kickoff events, including Singles Day in Asia and Black Friday, which is now being observed in many markets outside the U.S., and we feel great about the momentum behind our brands. There is clearly an unprecedented amount of change happening in the apparel industry, which the pandemic has only accelerated. To navigate this backdrop, our teams have been evolving our business model to compete in the new world of retail, and in particular, capture the younger consumer generation while continuing to serve our core consumers. We also address near-term challenges with a long-term approach to drive sustainable, profitable growth, including some difficult business decisions as we recognize the need to adapt quickly to the realities that COVID-19 is presenting to us with. In this context, we have been accelerating our digital agenda and reallocating additional resources to drive growth in this highly important channel. We are seeing strong revenue growth and are pleased that our EBIT margins for our own digital business are in line with those of our overall business, which as we continue to scale the business, should continue to improve. We also continue to evolve our business towards the comfort and casual categories that are working with the consumer today. especially the younger generations. And lastly, we continue to pivot towards our international businesses, where we continue to see a very significant revenue opportunity for both our Calvin Klein and Tommy Hilfiger businesses, while also contributing a higher overall operating margin. We believe that our focus on these aspects of the business will drive long-term revenue and margin growth for our stockholders, driven by gross margin expansion and SG&A leverage. Stephan and Mike will get into the specifics of the third quarter, as well as the current fourth quarter sales and margins trends, which are all very positive. I'm also extremely pleased with the tremendous liquidity that we have in place in order to withstand any potential disruption from the pandemic. We are cautiously optimistic about this year's unique holiday season. Clearly, the shift to digital is the narrative for this holiday season. And we have positioned our business to succeed in this context, with strong digital events planned, inventory investments to fuel the demand in the channel, and adjustments to the in-store experience to adapt to the capacity constraints in stores. We believe that we are positioned to capture market share for holiday while also selling through any carryover inventories. We'll continue to monitor how the virus ebbs and flows as well as its impact on our business. Before I pass things over to Stephan, I'd like to just acknowledge what a privilege it has been to lead PVH as CEO for the last 15 years. I truly want to thank the PVH Board and all our amazing associates worldwide for all their contributions, and most importantly, their partnership and support. I'm quite amazed at how PVH has grown and transformed during my 15-year career at PVH. We've evolved from a North America-based dress shirt business with sales of $1.5 billion to a portfolio of global iconic brands with about 70% of our EBIT coming from outside the U.S., over 40,000 associates employed worldwide, and close to $10 billion in revenues last year. We've also developed one of the industry's leading corporate responsibility platforms, and our vision to drive fashion forward for good motivates and guides the way we operate our business every day. In my new role as Chairman, I look forward to seeing PVH continue to drive this vision forward and deliver the company's next chapter of growth and profit recovery. I have great confidence in Stephan as he assumes the role of CEO in February. His global experience, consumer focus, and high performance track record, especially in this unprecedented time of disruption, are tremendous assets for PVH. As Stephan continues to partner with our incredible team of senior leaders, many that have been here for over a decade, I believe that their expertise and collective knowledge of our industry and consumer base will help maximize the growth potential for PVH. Overall, I'm very optimistic about future opportunities ahead for PVH. We have unique competitive advantages. Our incredible people, our iconic global brands, and our strong financial and operating fundamentals, which I believe will position us to continue to deliver sustainable long-term growth for all of our stakeholders. With that, I turn it over to Stephan for comments about the quarter and the fourth quarter as well.