Phillips-Van Heusen Corp. posted a 20 percent jump in third-quarter earnings, driven by strong sales in its Calvin Klein licensing business.
For the three months ended Nov. 4, 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.
For the nine-month period, earnings grew 25 percent to $153 million, or $2.65 a diluted share, from $122 million, or $2.16, in last year's period. Sales for the period increased 20 percent to $1.62 billion from $1.36 billion last year.
Revenue increased 29 percent in the Calvin Klein licensing business due to continued strength across all product categories, with fragrances, jeans and underwear performing exceptionally well, the company said in a statement.
During the quarter, Phillips-Van Heusen launched its Calvin Klein Man fragrance. The firm also saw continued success in sales of the men's and women's CKIN2U and euphoria fragrance lines.
"Our revenue and earnings were also positively impacted by strong performances in our dress shirt and newly acquired neckwear business, which continues to exceed our expectations," said Emanuel Chirico, chairman and chief executive officer, in a statement. "Just as important, we were aggressive in driving promotional selling in our heritage brand sportswear and outlet retail businesses in order to keep inventories clean heading into the fourth quarter and next year."
The company raised its full-year earning's guidance to $3.16 to $3.18 a diluted share, from a previous outlook of $3.15 to $3.17 a share. Fourth-quarter earnings are expected to be in the range of 51 cents to 53 cents a diluted share. Guidance was below Wall Street expectations.
The company said its earnings estimates "reflect a cautious view of 2008 and a belief that the current difficult economic environment will continue into next year."
"We remain focused on the growth opportunities at Calvin Klein and our new initiatives, including Izod women's sportswear — which has been performing well since our launch at the end of the second quarter of 2007 — Calvin Klein specialty retail, and our forthcoming launch of Timberland men's sportswear in fall 2008," Chirico added.A conference call is scheduled for today.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty