NEW YORK — Phillips-Van Heusen Corp. on Wednesday posted third-quarter results that still reflected integration costs associated with its purchase of Calvin Klein Inc.
This story first appeared in the November 20, 2003 issue of WWD. Subscribe Today.
For the three months ended Nov. 2, income fell by 3.7 percent to $17 million, or 34 cents a diluted share, from $17.7 million, or 63 cents, in the year-ago period. Excluding integration costs, income would have been $21.5 million, or 43 cents, in line with the company’s previous guidance.
Revenues for the period rose 10.8 percent to $453.3 million from $409.1 million. Included was a sales increase of 3.7 percent to $421.4 million from $406.5 million. The quarter also reflected royalty and other revenue of $31.8 million, versus just $2.6 million last year before the acquisition.
Bruce Klatsky, chairman and chief executive officer, said in a statement, “The trend of strong growth in our wholesale apparel businesses coupled with the positive earnings impact of the Calvin Klein business continued to help minimize the impact of the earnings decline in our retail businesses.”
Klatsky noted that the integration of the CK operations is nearly complete. He added that the company was “on target” for the launch of the men’s and women’s better sportswear lines next year. The better women’s line will launch next spring through a license with a joint venture formed by Kellwood and G.A.V., while the better men’s line will be introduced next fall.
“We are now focusing our attention on expanding the global marketing opportunities for the Calvin Klein brands into both new product categories and geographic regions,” said Klatsky.
According to the ceo, the firm’s retail outlet business was inconsistent in the quarter, with the best performance in September. Overall, he noted, third-quarter performance was below plan. Including final integration of Calvin Klein, Klatsky said that the firm was optimistic that it could achieve earnings per share growth of 15 percent annually.
In the nine months, income fell by 3.5 percent to $23.9 million, or 30 cents a diluted share, from $24.7 million, or 88 cents, last year. Revenues rose 10.8 percent to $1.21 billion from $1.09 billion, which included a 3.2 percent gain in sales to $1.12 billion from $1.08 billion.
Separately, the company filed with the Securities and Exchange Commission a registration statement in connection with the resale of up to 25.1 million shares of PVH common stock. The prospectus filed as part of its registration statement is in connection with its Calvin Klein acquisition.