The Calvin Klein business was the fourth-quarter superstar at Phillips-Van Heusen Corp., which managed to drive net income up 13.4 percent despite weakness in the group's other wholesale and retail businesses.
"Calvin Klein continues to exhibit strength both domestically and internationally and is driving our revenue and earnings growth," said Emanuel Chirico, chairman and chief executive officer. "There continues to be high global demand for our Calvin Klein brand, and this demand continues to grow as we enter into additional markets, such as China, India and Russia, and new product categories, such as cosmetics."
Profits in the quarter advanced to $30.3 million, or 55 cents a diluted share, from $26.8 million, or 47 cents, a year ago. Total revenues for the three months ended Feb. 3 rose 4.9 percent to $584.5 million from $557 million, which included a 4 percent gain in wholesale sales to $507 million.
For the year, earnings shot up 30 percent to $183.3 million, or $3.21 a diluted share, on a 16 percent rise in revenues to $2.43 billion.
In the quarter, operating earnings for the firm's Calvin Klein licensing segment increased 37 percent to $33.4 million on a 14.2 percent rise in revenues to $70 million.
Chirico said the company would continue to keep "international growth opportunities at the forefront of our strategy."
Some of those initiatives include Izod women's sportswear, Calvin Klein specialty stores and Timberland men's sportswear. About 25 percent of the firm's consolidated earnings before interest and taxes are generated internationally, "driven by a significant international component of the Calvin Klein licensing business," Chirico said.
Earnings per diluted share are slated to rise to $3.30 to $3.40 in 2008 on a projected sales gain of 7 to 8 percent to $2.6 billion.
Also on Monday, PVH said it inked a licensing deal with Arvind Mills to produce and market Izod-branded apparel in India. Under the new license, Arvind can distribute the goods both at wholesale and through Izod-branded stores. Arvind was founded in 1931, and also has a joint venture with VF Corp. to sell that company's Wrangler, Lee, Nautica, and Kipling brands on the subcontinent.
A room full of toiles at the haute couture atelier in the Dior exhibition at Les Arts Décoratifs, open in Paris since July 5. This is just one of three major exhibitions that have been timed to coincide with the house's 70th anniversary. See the rest of the exhibits, plus read WWD's look into the iconic brand's history. Link in bio. #wwdfashion (📷: @dominiquemaitre)
For spring, Pamplemousse's Danica Zheng presented her signature slip dresses attached to a white T-shirt along with floral windbreakers, off-the-shoulder cotton blouses and more. For more highlights from the New York trade shows, go to WWD.com. #wwdfashion
The Green Carpet Fashion Awards closed out Milan Fashion Week yesterday. The fashion industry flocked to the event, showing its efforts to support and spread the message of sustainability. Supermodel Gisele Bündchen said "if each one of us took at least one step is this direction, there is no saying how much could be done." #wwdeye #wwdfashion #mfw (📷: Lodovico Colli di Felizzano)
Etro’s show, titled “The Tree of Life,” was a celebration of the house’s 50th anniversary. “My father founded the company in 1968, which was the year of counterculture and psychedelia. It’s really a show that celebrates that and the paisley design of India and its origin,” said Veronica Etro. #wwdfashion #mfw #ss18 (📷: @delphineachard)
For @msgm’s spring 2018 show, creative director @massimogiorgetti said “Words, sounds, colors. Synthesis and therapy of a collection,” were the inspirations behind the collection, showing today. Read the rest of Milan spring 2018 inspirations on WWD.com. #mfw #wwdfashion #ss18
For her first solo album in over 10 years, Fergie tapped Carine Roitfeld, Mert and Marcus, Giovanni Bianco and more to create a fashion-focused video approach for the record, Double Dutchess. "Giovanni really helped me get back in touch with my tomboy side, my hardside," said the singer. #wwdeye #wwdfashion ( : @slovekinpics)