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."
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion
@longchamp, which marks its 70th anniversary this year, just opened its biggest U.S. store on Manhattan’s Fifth Avenue. On the lower level there’s a floor-to-ceiling display of the brand’s iconic Le Pliage bag – in all of its different colors, shapes and sizes. Customers can also have their product personalized in-store by imprinting names, initials or emblems. #wwdfashion (📷: @ericmtownsend)
“Whenever I’m in that place of sound and music, I don’t have fear or nervousness…This album has a lot of themes of courage and boldness and I want to be the soundtrack for people’s lives. I’ll be so happy if [my songs] evoke strength in people, which I know music has done for me,” says @kimbramusic of her newest album “Primal Heart.” The New Zealand-born singer sat down with WWD to talk about her music, newest tour and connecting with hear fans — read more on WWD.com #wwdeye (📷: @jilliansollazzo)
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)