NEW YORK — Phillips-Van Heusen Corp. on Monday narrowed its estimates for fiscal year 2003, as well as updated its cash-flow guidance.
In addition, Phillips-Van Heusen commenced a new $150 million senior note offering, due in 2011. The company said proceeds from the note offering will be used to purchase the $150 million outstanding principal amount of its 9.5 percent senior subordinated notes due 2008, which is subject to a cash tender offer that is set to close on Feb. 26. The company announced the tender offer for the notes maturing in 2008 on Jan. 29.
Shares of the company ended the day down 1.4 percent to $17.77 from the prior close. The 52-week high is $18.30; the low, $11.16.
The apparel firm said cash flow for fiscal 2003 will be between $10 million and $12 million, which is higher than PVH’s previous estimate of breakeven for the year. Earnings per share guidance for the year — before special items — is between 96 cents and 99 cents, in line with the previously announced range of 95 cents to $1. Including special items such as aftertax integration costs of the Calvin Klein acquisition and the closure of 200 retail outlet stores, the loss per share is expected at between 17 cents and 22 cents.
Separately, Standard & Poor’s Ratings Service assigned a “BB-” rating to the senior unsecured notes maturing in 2011.
S&P credit analyst Diane Shand wrote in her report that the rating “reflects the company’s participation in the highly competitive apparel retailing industry, the inherent cyclicity and fashion risk of the industry and high debt leverage following the Calvin Klein Inc. acquisition in 2003.”
She noted that the risks are offset in part by the company’s portfolio of well-known brand names, its leading position in the men’s dress shirt market and a diversified base of distribution.
Robert Drbul, equity analyst at Lehman Bros., wrote in a research note following PVH’s announcement that he believes the company’s “wholesale business continued to perform well [in the fourth quarter of fiscal 2003], led by the dress shirt and sportswear businesses.”
Drbul also wrote that same-store sales at PVH’s retail business sequentially improved to an approximate flat comp in the fourth quarter of fiscal 2003 from the negative 4 percent comp in the year’s third quarter as sales gained momentum toward the end of the holiday season. He did not provide details on what the comps were in the same year-ago periods.
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