NEW YORK — Phillips-Van Heusen Corp. on Wednesday posted first-quarter results that beat Wall Street's estimates by 3 cents, ending Bruce Klatsky's run as chief executive on a high note.
The company posted income of $25 million, or 46 cents a diluted share, versus $1.6 million, or a loss of 12 cents a share due to preferred stock dividends, in the same year-ago quarter. Excluding restructuring charges in the year-ago period, income was $11.1 million, or 18 cents a diluted share.
Total revenues for the quarter gained 24.8 percent to $472.1 million from $378.2 million, which included a 25.7 percent jump in sales to $423.1 million from $336.6 million. Part of the balance in revenue gain came from a 17.6 percent rise in royalty income.
During a conference call with analysts and investors, Klatsky, chairman and ceo, noted that the company has a new agreement with its licensee in Europe for bridge sportswear and accessories. As reported, the agreement is with an affiliate of Italian manufacturer Fingen SpA, and calls for the reintroduction of CK Calvin Klein apparel and accessories in Europe and the Middle East starting next spring.
"We are thrilled with the agreement ... and think this will play a major role in our continued growth of the Calvin Klein brand that consumers use around the world. This will be a large range of sportswear products in Europe and the Mideast that will be accompanied over the next five years with the opening of at least 15 retail shops," Klatsky said.
The chairman said the Calvin Klein business has the potential of generating between "$5 billion and $6 billion [worth] of global revenues over the course of the next five years or so."
Company executives said they see an "appetite" for the Calvin Klein brand, and that the addition of categories to the men's and women's businesses, whether in footwear or coats or accessories, will "make this brand even stronger."
The company said the women's Calvin Klein line, which Kellwood licenses, got off to a "rocky start" when projections were higher than PVH thought they should have been, which necessitated some markdowns to get the inventories back in line. Since then, there's been a focus on casual women's sportswear at lower price points.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"