Phillips-Van Heusen Corp. on Wednesday posted a drop in second-quarter profits due in part to declines in the wholesale and retail heritage brand businesses that were offset by strong growth in its Calvin Klein licensing operation.
For the three months ended Aug. 3, income declined by 25.3 percent to $29.2 million, or 56 cents a diluted share, from $39.1 million, or 68 cents, in the same year-ago period. Earnings were also negatively impacted by $5 million in start-up costs associated with the firm’s Timberland wholesale men’s sportswear business and Calvin Klein specialty retail stores.
The company noted the “recent bankruptcy filings of certain of our wholesale customers resulted in a sales shortfall of approximately $6 million in the quarter and negatively impacted pretax earnings by approximately $3 million, or 3 cents a share, which includes the related reserves for uncollectible receivables.”
Total revenues in the quarter rose 1.6 percent to $561 million from $552.4 million. Revenues include a 1.8 percent decline in sales to $480.3 million and a 24.4 percent jump in royalty income to $56 million.
For the six months, income fell by 17.5 percent to $76 million, or $1.45 a diluted share, from $92.1 million, or $1.60, a year ago. Total revenues gained 3.7 percent to $1.19 billion.
The company said the Calvin Klein licensing business continued its strong performance during the second quarter and posted revenue and earnings growth of 30 percent and 47 percent, respectively. “This performance was driven by continued growth across virtually all product categories and regions of the globe, with jeans and underwear performing exceptionally well,” the company said.
In addition, the company said the Calvin Klein outlet retail business continued to exhibit strong sales performance. Total outlet comparable-store sales in the quarter fell by 2 percent, with the Calvin Klein outlet business achieving comps growth of 9 percent compared with the heritage brand outlet businesses, which posted a comps decline of 5 percent.
“We are very pleased with our second-quarter results, particularly given the current economic environment. Calvin Klein remains a key driver of our growth and profitability as it continues to outperform our expectations, both internationally and domestically. The broad global presence and continued international growth of Calvin Klein has helped to offset the impact of the economic downturn in the U.S. on our heritage brand businesses,” said Emanuel Chirico, PVH chairman and chief executive officer.
He added the company has been aggressive in taking action to keep inventory levels clean heading into the second half and that the company is on track to convert 25 of the Geoffrey Beene outlet stores into Calvin Klein sites.
The company projected full-year 2008 revenue at $2.56 billion to $2.58 billion, an increase of 6 percent over 2007. It maintained its previous projection for full-year earnings per share to be in the range of $3.32 to $3.41.
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)
@denimdaysfestival, which initially launched in Amsterdam in 2014 and has since expanded to New York, is heading to Nashville for the very first time. The two-day festival, which will take place in November, will feature brand activations, hands-on workshops by artisans and denim mills, a vintage market, live entertainment, and local food and drinks. Get all the details on WWD.com. #wwdnews #wwdfashion
Later this month, the popular “Diana: Her Fashion Story” exhibit will be reopening. @historicroyalpalaces, the charity that manages @kensingtonroyal, has been working towards adding new, never-before-seen garments to the exhibit, including this dress created by Gianni Versace for a fund-raising dinner at the Museum of Natural History in Chicago. The exhibit will reopen on April 26 at Kensington Palace @wwdfashion
“Our family has always been engaged and interested in the world around us. [My brothers and I] were always encouraged to have our own opinion at a young age, which is not always something a child is asked — especially to have an opinion with reasoning behind it,” said @yarashahidi on becoming an activist. We caught up with the 18 year old last week, where she talked about her road to acting, how “Black-ish” led her to start conversations about identity and more. Head to WWD.com to read what she had to say #wwdeye (📷: @chelsealaurenla)