By  on May 24, 2010

Phillips-Van Heusen Corp. said Monday that it posted a first-quarter loss, hurt in part by expenses from the $3 billion purchase of Tommy Hilfiger and hedges to cover a portion of that euro-denominated acquisition.

For the three months ended May 2, the net loss was $27.6 million, or 53 cents a diluted share, versus net income of $24.7 million, or 48 cents, in the year-ago quarter. Eliminating over $100 million in onetime costs related to the Hilfiger acquisition, earnings per share rose to positive territory, coming in at 83 cents, 4 cents higher than the consensus estimate of 79 cents.

Total revenues rose 11.1 percent to $619 million from $557.4 million. Sales rose 11.5 percent to $530.7 million from $475.7 million as royalties were up 11.8 percent to $65.9 million from $58.9 million.

PVH completed the acquisition of Hilfiger on May 6.

“The positive trends of the last several quarters have continued and we have seen strong gross margin recovery in our wholesale and retail businesses against last year’s difficult first quarter,” said Emanuel Chirico, chairman and chief executive officer.

He added the Hilfiger transaction, in tandem with the earlier purchase of Calvin Klein, created a global powerhouse with two of the most recognized designer brands. “This extended brand portfolio and operating platform creates unique growth opportunities across additional geographies and product categories, which we are positioned to capitalize upon to drive future revenue and earnings growth as well as strong returns to our stockholders,” he said.

The company expects EPS for 2010 in the range of 34 cents to 44 cents, with revenue projected between $4.35 billion to $4.4 billion, about $1.8 billion attributable to the Hilfiger business. Hilfiger is expected to generate between $180 million to $190 million in operating income for the year. PVH also said royalty revenue from the Calvin Klein business is anticipated to rise 7 to 8 percent.

Earlier on Monday, PVH reported in its definitive proxy that Chirico nearly doubled his reported pay last year despite virtually no change in his cash take.

Chirico earned a total of $12.6 million last year, 97.1 percent higher than the $6.4 million reported for 2008. However, the cash portion of his pay — salary, nonequity incentive plan compensation and “other” compensation — was up 2.7 percent to just over $3 million from slightly below that figure in the prior year.

Chirico’s salary was unchanged at $1 million, and his nonequity bonus figure rose 6.7 percent to $2 million from $1.9 million in 2008. All other compensation was halved, dropping to $45,000 from $91,000.

But the PVH ceo registered large increases in the noncash portion of his pay package, with his option awards quadrupling to $5.3 million from $1.3 million and his stock awards rising 76 percent to $3.5 million from $2 million. Because of fluctuating stock prices and vesting schedules, stock and option awards aren’t necessarily realized by the executives, but the Securities and Exchange Commission requires they be reported at “fair value” when firms file their proxies.

Chirico’s change in pension value and nonqualified deferred compensation earnings rose to $701,000 from $100,000.

Allen Sirkin, president and chief operating officer of the firm, saw his compensation grow 85.4 percent to $5 million from $2.7 million in 2008. The increase included a jump in his restricted stock units to $1.8 million from $1.2 million, in part because PVH agreed to pay Sirkin units with a grant date value of $500,000 a year in consideration for his decision to delay his retirement at least two years to no sooner than the date of PVH’s 2011 stockholders meeting. Although he receives no option awards, Sirkin, 68, will receive $1.25 million in restricted stock awards annually as long as he is employed in his current capacity. Excluding all items but salary, nonequity compensation and “other” compensation, Sirkin’s cash take last year doubled to $2.8 million from $1.4 million, principally on the strength of the quadrupling of his nonequity bonus, which grew to nearly $1.9 million from about $466,000.

Tom Murry, president and ceo of PVH’s Calvin Klein unit, saw his total compensation grow 79 percent to $3 million last year, from $1.7 million in 2008. However, it didn’t reach the $3.2 million level attained in 2007.

In March, PVH reported net income for the full year ended Jan. 31 rose 76.4 percent to $161.9 million as sales retreated 4.2 percent to $2.07 billion.

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