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Donnelly, the former chief executive officer of Urban Outfitters Group, will join the company as chief executive officer of PVH Americas.
The company has also teamed up with the CFDA to unveil the State of Diversity, Equity & Inclusion in Fashion report.
Larsson will take over as chief executive officer on February 1, 2021.
The company also plans on reducing its office workforce by approximately 450 positions or 12 percent.
Steve Shiffman, formerly CEO, is leaving the company to pursue other interests.