Second-quarter income soared at Phillips-Van Heusen Corp., beating its own guidance through the strength of the Calvin Klein brand.
The company said Wednesday that for the three months ended Aug. 5, net income rose 31.6 percent to $39.1 million, or 68 cents a diluted share, from $29.7 million, or 53 cents, in the same year-ago quarter. Included in the quarter were $2.2 million pre-tax costs, or 2 cents a share, in connection with the start-up of the firm's Timberland wholesale sportswear business and Calvin Klein better specialty retail stores. In May the company expected earnings per share of 61 cents. Total revenues rose 20.4 percent to $552.4 million, which included a 20.1 percent jump in sales to $488.9 million, from $458.9 million.
The company's outlet retail business saw a same-store sales gain of 7 percent, or 5 percent after adjusting for the shift in the retail calendar. The balance of the company's revenues came from royalty income, as well as advertising and other sources.
For the six-month period, net income soared 35.4 percent to $92.1 million, or $1.60 a diluted share, from $68 million, or $1.26, last year. Total revenues grew 18.5 percent to $1.14 billion, which included a 17.2 percent gain in sales to $1.01 billion, from $965.4 million last year.
"Our strategy of marketing nationally recognized brands across multiple channels of distribution continues to benefit our bottom line and helps to insulate us from a downturn in any one of our business segments," said Emanuel Chirico, chairman and chief executive officer, in a statement.
Chirico said the "strength of the Calvin Klein brand continues to fuel strong revenue and earnings increases and was the key driver in enabling us to exceed our previous guidance. The global demand for the Calvin Klein brand continues to expand as we introduce new product categories and enter into new markets around the world."
The company said that continued "strong growth in royalty revenue results in the Calvin Klein Licensing business resulted in operating income growth of 28 percent." It also said that revenues in the Calvin Klein licensing business rose 27 percent, driven by strength in the fragrance business owing primarily to the first-quarter launch of the new men's and women's CKIN2U line.The company raised full-year 2007 earnings per share guidance to between $3.15 and $3.17 from its previous estimate of $3.06 and $3.10. This is the second time the company has raised guidance. It upped estimates in May to between $3.06 and $3.10 from earlier forecasts between $3 and $3.06. It also said it expects total revenue for the year to be around $2.44 billion, or a 17 percent gain over 2006.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion