NEW YORK — Phillips-Van Heusen Corp. on Tuesday raised earnings guidance for the year and second quarter, which followed its disclosure that insiders would sell nearly 6.4 million shares in a secondary common stock offering.
The shares are held by affiliates of Apax Managers Inc., which were issued the Series B Convertible Preferred stock in connection with the company’s acquisition of Calvin Klein in February 2003. PVH will not receive any proceeds from the offering. The apparel firm also will pay Apax $11.2 million, representing the net present value of the dividends that PVH would have been obligated to pay through the earliest date to convert the Series B stock. PVH is responsible for paying the offering costs, estimated at $1 million.
PVH upped its full year 2005 earnings guidance, with diluted earnings per share now pegged between $1.53 and $1.58, including the costs related to the offering, on a revenue base of $1.81 billion to $1.83 billion. Excluding the costs associated with the offering, diluted EPS is estimated at $1.70 and $1.75. Previous diluted EPS guidance was $1.68 to $1.73 on revenues of $1.8 billion to $1.82 billion.
For the second quarter, diluted EPS is estimated at between 17 cents and 18 cents, including offering costs, on revenues of $430 million to $435 million. Diluted EPS is estimated at 40 cents to 41 cents, excluding offering costs, versus the previous guidance of diluted EPS at 38 cents to 39 cents on revenues of $420 million to $425 million.
PVH said in a statement that if current trends in its business were to continue, the company would exceed its revised 2005 second-quarter estimates. And even though PVH has not revised its second-half outlook, the company said it would expect to exceed those estimates should current trends continue into the third and fourth quarters.