PVH PVH Corp.

Risks

• A substantial portion of our revenue and gross profit is derived from a small number of large wholesale customers and the loss of any of these customers or significant financial difficulties in their businesses could substantially reduce our revenue.
• We may not be able to continue to develop and grow our Tommy Hilfiger and Calvin Klein businesses.
• Our retail stores are heavily dependent on the ability and desire of consumers to travel and shop.
• Acquisitions may not be successful in achieving intended benefits, cost savings and synergies.
• Future economic conditions, including volatility in the financial and credit markets may adversely affect our business.
• Our business is exposed to foreign currency exchange rate fluctuations and control regulations.
• Our level of debt could impair our financial condition and ability to operate.
• We primarily use foreign suppliers for our products and raw materials, which poses risks to our business operations.
• If our manufacturers, the manufacturers used by our licensees, or our licensees themselves fail to use legal and ethical business practices, our business could suffer.
• We are dependent on third parties to source and manufacture our products and any disruption in our relationships with these parties or in their businesses may materially adversely affect our businesses.
• We are dependent on a limited number of distribution facilities. If one becomes inoperable, our business, financial condition and operating results could be negatively impacted.
• A portion of our revenue is dependent on royalties and licensing.
• Our licensing business makes us susceptible to the actions of third parties over whom we have limited control.
• We may be unable to protect our trademarks and other intellectual property rights.
• We face intense competition in the apparel industry.
• Our profitability may decline as a result of increasing pressure on margins.
• If we are unable to manage our inventory effectively and accurately forecast demand for our products, our results of operations could be materially adversely affected.
• The loss of members of our executive management and other key employees could have a material adverse effect on our business.
• A significant shift in the relative sources of our earnings, adverse decisions of tax authorities or changes in tax treaties, laws, rules or interpretations could have a material adverse effect on our results of operations and cash flow.
• If we are unable to fully utilize our deferred tax assets, our profitability could be reduced.
• Volatility in securities markets, interest rates and other economic factors could increase substantially our defined benefit pension costs and liabilities.
• Our balance sheet includes a significant amount of intangible assets and goodwill. A decline in the estimated fair value of an intangible asset or of a reporting unit could result in an impairment charge recorded in our operating results, which could be material.
• Provisions in our certificate of incorporation and our by-laws and Delaware General Corporation Law could make it more difficult to acquire us and may reduce the market price of our common stock.