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.
“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