WWD.com/beauty-industry-news/financial/calvin-helps-pvh-profits-soar-579813/
government-trade
government-trade

Calvin Helps PVH Profits Soar

NEW YORK — Phillips-Van Heusen Corp. rode substantial increases in its wholesale and Calvin Klein licensing operations to fourth-quarter net income that far exceeded consensus estimates. <BR><BR>In the three months ending Jan. 30, net income hit...

NEW YORK — Phillips-Van Heusen Corp. rode substantial increases in its wholesale and Calvin Klein licensing operations to fourth-quarter net income that far exceeded consensus estimates.

In the three months ending Jan. 30, net income hit $17.3 million, or 33 cents a diluted share, compared with a $9.2 million loss, or 47 cents, in the same quarter last year. Exclusive of a series of special charges, including restructuring of its wholesale operations and the integration of its Calvin Klein acquisition, earnings per share were 28 cents, 12 cents ahead of PVH’s guidance and the First Call estimate.

Revenues on a GAAP — generally accepted accounting principles — basis were $413.8 million, 15.9 percent above the $356.4 million reported in the 2003 period.

The firm said that, excluding special items, operating earnings at Calvin Klein Licensing rose 42.5 percent to $16.2 million while those for apparel and related products were up 20.8 percent to $24.8 million.

“None of us can recall a period when all of our brands and products have performed so well simultaneously,” Bruce Klatsky, chairman and chief executive officer, said in a statement. Klatsky will relinquish the post of ceo to Mark Weber, the firm’s president, in June.

Included in the most recent quarter was a $2.1 million pretax noncash charge to reconcile lease accounting with recent changes in Securities and Exchange Commission guidelines. The firm plans no restatements of prior earnings as a result of the adjustment.