PVH Corp.

Good morning, everyone, and welcome to today's PVH second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one keys on your touchtone phone. Please note this call may be recorded and that I will be standing by should you need any assistance. It is now my pleasure to turn today's program over to Cheryl Freeman, Senior Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to the PVH Corp. Second Quarter 2024 Earnings Conference Call. Leading the call today will be Stefan Laurison, Chief Executive Officer, and Zach Coghlan, Chief Financial Officer. This webcast and conference call is being recorded on behalf of PVH and consists of copyrighted material. It may not be recorded, rebroadcast, or otherwise transmitted without PVH's written permission. Your participation constitutes your consent to having anything you say appear in any transcript or replay of this call. The information to be discussed includes forward-looking statements that reflect PVH's view as of August 27, 2024, of future events and financial performance. These statements are subject to risks and uncertainties indicated in the company's SEC filings and the safe harbor statement included in the press release that is the subject of this call. These include PVH's right to change its strategies, objectives, expectations, and intentions, and the company's ability to realize anticipated benefits and savings from divestitures, restructurings, and similar plans, such as the planned cost efficiency action announced in August 2022 and completed in 2023, the 2021 sale of assets of and exit from its Heritage Brands menswear and retail businesses, and the November 2023 sale of the Heritage Brands women's intimate apparel business to focus on its Calvin Klein and Tommy Hilfiger businesses. PVH does not undertake any obligation to update publicly any forward-looking statement, including without limitation any estimates 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 second quarter 2024 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 am pleased to turn the conference over to Stefan Larsson.

Thank you, Cheryl, and good morning, everyone, and thank you for joining our call today. Let me start by thanking our teams all around the world as we continue to deliver on our near-term commitments while steering towards our long-term vision to build Calvin Klein and Tommy Hilfiger into the most desirable lifestyle brands in the world and make PVH one of the leading sector. For the second quarter, we drove revenue in line with our guidance with stronger than expected profitability and EPS. We increased our EBIT margins, driven by significant cross-margin expansion of 250 basis points, and we continued to improve inventory productivity with inventory down 12% year over year. The quarter had two distinctly different chapters to it. the first being the spring and summer full price-focused selling parts of May and June, and the second part in July being heavily impacted by the end-of-season summer clearance in the overall market. Our D2C trends were as expected in May and June, and when we came into mid-July, as we saw the market shift to heavy end-of-season clearance and we had less end-of-season clearance inventory, we decided not to follow the market down. Instead, we saw less clearance and more newness, and we drove gross margin rates up. With this approach, we deliberately walked away from some of the low-quality clearance revenue in the peak clearance period, from mid-July to early August, where our new season revenue didn't yet fully compensate on the total top line, which resulted in our D2C revenue being down 3% on a constant currency basis for the quarter. Since then, Coming further into August, we see that our overall D2C trends are coming back up, driven by the new season inventory taking an increasingly bigger share of the total revenue. In wholesale for the quarter, revenue declined slightly, down 1% on a constant currency basis, reflecting our proactive quality of sales actions and excluding the impact of the heritage brand sales. Looking ahead, we are reaffirming our revenue, non-gap EBIT margin and EPS guidance for the full year, excluding a one-time tax benefit, and we remain well positioned to deliver strong EPS growth for the full year. We continue to lean into the next level of PVH Plus plan execution while remaining prudent given the increasingly challenging global macro headwinds. North America continues to be a strong proof point of our PVH Plus execution. And in Europe, we are on plan with our targeted quality of sales actions. And in APAC, we drive strong consumer engagement and we win the big consumer moments. And as you will see, quarter after quarter, we will keep our clarity and consistency in direction, staying relentlessly focused on building brand desirability while driving towards long-term sustainable growth. We do this in a systematic and repeatable way through our discipline execution of all five growth drivers of our PVH++. For this fall, in both Calvin and Tommy, we're taking another step up in consumer engagement with even stronger cut-through campaigns featuring globally and locally relevant mega-talent. Fall 24 is also the first product season where we have been able to fully influence product execution for both brands globally, leaning further into key growth categories, providing strong transitional products with innovation-fueled newness into our best hero products. All of this will be supported through continued improvements in our data and demand-driven supply chain, resulting in increased stock freshness, higher quality products, and lower AUC. Lastly, we remain focused on driving efficiencies to invest back into growth, and we are making important progress to simplify how we work. Now, let me share some highlights from the second quarter on how we executed across our two iconic brands and three regions, starting with Calvin Klein. During the summer, the brand continued to build on the unprecedented momentum from the spring campaign. showing up in some of the most culturally relevant moments around the world, ranging from Jeremy Allen White wearing custom Calvin for the seasonal premiere of the hit TV series, The Bear, to K-pop group New Jeans wearing the brand for an exclusive performance in Tokyo. Actor Greta Lee and K-pop talent Ming Yu were part of the opening celebration of our newest global flagship store on the Champs-Élysées in Paris, The store captured Calvin's unique DNA in a way that elevates the brand and drives a strong commercial engine. Now coming into fall, Calvin is launching another global cut-through campaign where Kendall Jenner returned to Calvin to tease the campaign. and features Jeremy Allen White in iconic fall essentials, Ming Yu in the latest denim, and Greta Lee makes her first campaign appearance styled in iconic Calvin underwear. Every week now, you will see new super relevant talent joining the campaign, wearing the most important products across all lifestyle categories. And when they do, the reactions from our consumers on Instagram and TikTok go through the roof. In addition, We are working hard already now to prepare for Calvin's return to the runway in February 2025, where we are looking forward to show the ultimate expression of the brand together with our most important talent and partners. Turning to Tommy. We brought the Tommy Summer to life this quarter through some of the most relevant summer events in iconic locations all around the world, from Mykonos and Taormina to La Paz in Mexico, combining the Tommy lifestyle with the best and most iconic Tommy Summer products and cut-through talent, driving the highest average engagement rate ever for the brand on Instagram. In parallel, Tommy continues to build relationships with the most relevant talent in culture. And just coming off the Olympics, I'm thrilled that we have the Olympic gold medalist and repeat world record setter, pole vaulter and cultural sensation, Mondo Duplantis, as part of the Tommy family. Staying on the theme of sports. Tommy just this past weekend dressed both Lewis Hamilton and George Russell and other close friends of the brand at the Dutch Formula One Grand Prix. These kind of sports partnerships connect straight into the Tommy Hilfiger brand DNA. Tommy was 20 years ahead of most other brands in recognizing the power of building his brand in collaboration with leaders in fashion, Art, music, entertainment, and sports, something that's even more relevant today and core to who the brand is. Coming into this fall season, Tommy just launched another cut-through campaign with mega K-pop band Stray Kids, wearing the new Tommy Fall collection set against the New York City skyline. The campaign has had a very strong start with social posts receiving hundreds of thousands of likes. And we are now just a few weeks out from hosting the next Tommy Hilfiger Fashion Show in New York, showing our Spring 25 men's and women's collections at another iconic New York City landmark. As a reminder, the fashion show we just did in spring became the biggest cut-through show of all of New York Fashion Week and made it to the top 10 shows of all fashion shows globally. Now, let me turn to our regional performance, starting with North America. Despite a tougher macro, the region continues to be a great example of our PVH Plus plan execution. In the second quarter, our Calvin and Tommy businesses together delivered an 11.7% EBIT margin, their fourth consecutive quarter of a double-digit non-GAAP EBIT margin. up more than 400 basis points compared to last year, marking another quarter of significant margin expansion across both brands. Over the past year, you can really see the progress we have made as we doubled down on our PVH Plus execution in the region. Our teams delivered high-quality revenue growth of 1% for our Calvin and Tommy businesses combined, while D2C revenue declined modestly given the July trends I spoke to earlier. This was offset by a low single-digit increase in wholesale. In D2C, throughout the quarter, across both brands, we focused on advancing our product category offense and bringing newness into our hero products, driving increased gross margin. For wholesale, we're driving product strength and stronger sell-throughs as we continue working very closely with our key partners to drive our strong product category offense and optimize the consumer shopping experience. Overall, across all channels in the North America region, we continue to see a strong consumer response to the improvement we make across product, marketing, and marketplace execution. Turning to our international business, in Europe, we continue to successfully execute on our previously communicated quality of sales initiative. While our overall revenue was down 2% year-over-year in euros, it included a 3% impact from our quality of sales actions, and we delivered significantly higher gross margins. For the full year, as we position our business in Europe for profitable brand accretive growth over the long term, we continue to expect the revenue impact from our quality of sales initiative to be approximately 5%. David Salmon and our European team are laser focused on driving the next level PVH plus execution across all channels. In both Calvin and Tommy, we continue to build strength in product where the fall season is off to an early strong start and the inventory composition is much better than last year. We are driving improved buying and planning with a stronger product assortment for fall 24 that drive growth in key growth categories and add newness. In D2C, for the first time, we will have a fully aligned product assortment across the region. And in wholesale, we've improved stock levels of our core bestsellers, enabling us to have more direct sales to our top wholesale partners. As we highlighted last quarter, our forward wholesale order book shows significant sequential improvement and the full spring 25 season finalized down low single digits. We are working very closely with our key wholesale partners who continue to share positive feedback about the improved product assortment across both brands. I'm also excited to share that we are very far in the search and close to announce a permanent CEO for PVH Europe, a highly experienced leader with a very strong performance track record, and we look forward to sharing more with you shortly. Moving on to Asia Pacific. Just like we have heard from many others in the sector, mid-quarter, we saw a decline in the consumer backdrop, which resulted in a trajectory change. especially in China, which was down 1% in constant currency. We also saw a slowdown in Australia, while other markets, including Korea and Japan, continue to see growth in the quarter. From a channel perspective, we continue to drive e-commerce growth in the region, although this was offset by declines in stores and wholesale traffic. This resulted in revenue for the region declining 4% in constant currency including a low single-digit decline in D2C. With the current consumer backdrop of a strong PVH Plus execution for both Calvin and Tommy, we continue to make a big difference. We continue to drive strong consumer engagement, fueling brand heat for both brands with regionally relevant mega-talent such as Jenny Kim and Stray Kids. We're also laser-focused on winning the big consumer moments, such as 6-18 this past quarter, where we delivered double-digit GMV growth versus last year. And going forward, we continue to drive strong consumer engagement with cut-through brand activations around upcoming key holidays, including 11-11, the biggest consumer shopping event of the year. Overall, we're just in the beginning of tapping into our full growth potential in Asia. In closing, for the second quarter, we again delivered on our plan. We continue to show the strength of our PVH Plus execution for both Calvin and Tommy. In the North American market, with another quarter of high-quality growth and significant margin expansion. In Europe, we successfully delivered on our targeted quality of sales actions while driving big sequential improvements in our forward-looking wholesale orders. And in Asia, we continue to drive strong brand engagement and win the big consumer moments. And independently of the consumer backdrop, through our disciplined PVH Plus plan execution, we are step-by-step building our two globally iconic beloved brands into the most desirable lifestyle brands in the world, positioning ourselves to drive sustainable, long-term, and increasingly profitable growth. I've said it many times before, it's our consistency in direction, the strength of our brands, teams, and partners, together with our ability to continuously learn and improve that will make us win. And with that, I'll turn the call over to Zach to take us through the financials in more detail.