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.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion