NEW YORK — Calvin Klein was a boon to Phillips-Van Heusen once again.
While PVH's bottom line for the second quarter ended July 31 on an earnings-per-share basis was dragged down by the costs of a secondary stock offering, the company delivered robust sales on strong performances in its dress shirt, sportswear and Calvin Klein-licensed businesses.
PVH's Calvin Klein licensing segment posted royalty and other revenues in the quarter of $39 million, a 13 percent gain over the prior year's $34.6 million in revenue. The Calvin Klein business also clocked a 15 percent jump in operating earnings to $16 million from $13.9 million in the prior year, the company said in its quarterly report after the market closed on Wednesday.
For the second quarter, net income almost doubled to $23.5 million from $13 million as sales rose 18 percent to $443.5 million from $375.9 million. On a per-share basis, the bottom line dropped 33.3 percent to 16 cents a share in the quarter from 24 cents in the prior year.
For the six months, net income rose to $48.5 million from $14.6 million in the prior year as sales increased 21.4 percent to $915.6 million from $754.2 million. On an EPS basis, net income came in at 67 cents a share for the six months, which compares with 13 cents in the same period last year.
Excluding the cost of its stock offering, PVH's second-quarter EPS was 43 cents, which was ahead of analysts' consensus estimate of 41 cents. And excluding the prior year's restructuring and other charges, such as the cost of exiting its footwear business, PVH said EPS was 28 cents in the quarter ended Aug. 1, 2004.
The stock offering-related charge recorded in the most recent quarter was $14.2 million, and included an "inducement payment" of $12.9 million as well as $1.3 million in other related costs, the firm said in a statement.
Mark Weber, chief executive officer of the New York-based company, said in a statement he was pleased with results, and that PVH's business model "is working and we will continue to focus on the significant growth opportunity presented by the Calvin Klein brands, where growth in licensing revenue will drive operating margin expansion."
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