Phillips-Van Heusen Corp. shares slid 13.1 percent Tuesday after the company forecasted fourth-quarter and 2008 earnings below Wall Street expectations.
The apparel maker said in its earnings release after the market closed Monday that it expects fourth-quarter earnings in the range of 51 cents to 53 cents a diluted share, and 2008 earnings in the range of $3.55 to $3.65 a diluted share. Wall Street was predicting 55 cents in the fourth quarter and $3.66 for 2008.
In trading Monday, shares of Phillips-Van Heusen dropped to a new 52-week low of $36.65, before rallying slightly. The stock closed the day at $37.64.
In a conference call to Wall Street, the company said it is planning for aggressive markdowns in the fourth quarter.
"Looking at the fourth quarter, we are very comfortable with the guidance we gave the street," said Emanuel Chirico, chairman and chief executive officer, on the call. "We have factored in what we believe is more than efficient markdown to deal with the promotions and environment that we are dealing with, so we are very comfortable that we will deliver our guidance."
Phillips-Van Heusen is also being impacted by start-up costs from its Timberland and Izod businesses.
Chirico said he is taking a cautious view on the economy and consumer heading into the first half of 2008. But he believes the second half of the year will fare better as launches begin to contribute to the company's profit and it benefits from a share repurchase program.
The company expects same-store sales to be flat to up 1 percent in the first half of the year and increase 2 to 3 percent in the second half.
On Monday, Phillips-Van Heusen posted a 20 percent jump in third-quarter earnings, driven by strong sales in its Calvin Klein business. Net income rose to $60.9 million, or $1.05 a diluted share, from $50.8 million, or 89 cents, in the year-ago period on sales that climbed 22 percent to $611.4 million from $500.2 million.
Chirico said on the conference call the firm's underwear business posted a "30 percent increase in royalties for the quarter."
The ceo said business grew in the U.S. "just about 20 percent and the international business grew about 40 percent. The international growth was fueled by new product, but also by the continued opening of Calvin Klein underwear stores around the world, particularly throughout Asia." He went on to say the company's "jeans business was really driven by the international component of that. Our international jeans business overall was up about 20 percent."
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)