PVH Corp. plans to engage in $500 million accelerated share repurchase agreements

Multinational company PVH Corp. has made a significant announcement regarding its plans to enter into accelerated share repurchase agreements. With a focus on generating value for its shareholders, PVH is set to invest $500 million in repurchasing a portion of its outstanding shares, amounting to approximately 14% of the total shares. This strategic move is part of the company’s commitment to enhancing shareholder value and reflects its confidence in long-term growth potential under the PVH+ Plan.

Chief Financial Officer Zac Coughlin highlighted the company’s strong balance sheet and cash flow generation, which have enabled PVH to pursue strategic initiatives while maintaining a stable financial position. The decision to engage in accelerated share repurchase agreements is driven by the attractive valuation of the company’s stock in relation to its growth prospects.

The ASR agreements are expected to be completed in the third quarter of fiscal year 2025, providing an opportunity for shareholders to benefit from the company’s long-term growth strategy. PVH intends to fund the transaction using a combination of $350 million in cash on hand and up to $150 million in short-term debt. The company plans to repay the short-term debt by the end of fiscal year 2025, ensuring that its debt levels remain in line with previous years.

By entering into these accelerated share repurchase agreements, PVH aims to unlock the potential of its iconic brands, including Calvin Klein and TOMMY HILFIGER, through the PVH+ Plan. The company’s commitment to driving fashion forward and delivering value to its stakeholders underscores its long-standing reputation as a global fashion leader.

Overall, PVH’s decision to engage in accelerated share repurchase agreements reflects its strategic approach to capital allocation and commitment to delivering long-term value to its shareholders. The company’s strong financial position, coupled with its focus on growth initiatives, positions PVH for continued success in the dynamic global fashion market. Investors and stakeholders can look forward to the completion of these agreements in the coming months, as PVH continues to execute its strategic vision for sustained growth and value creation.