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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast