NEW YORK — Phillips-Van Heusen Corp. shattered Wall Street’s first-quarter estimate by a nickel thanks, in part, to strong results from Calvin Klein.
For the three months ended May 2, the New York-based branded apparel manufacturer reported net income of $1.6 million, which translated to a loss of 12 cents a diluted share after deducting preferred stock dividends. Last year, by comparison, the company recorded a net loss of $2.2 million, or 22 cents.
However, after excluding charges in both years from the Calvin Klein acquisition and other items, earnings grew 42.3 percent to $11.1 million, or 18 cents, from $7.8 million, or 11 cents, a year ago. Wall Street had anticipated earnings of 13 cents.
Total revenues dipped 0.6 percent to $381.3 million from $383.7 million a year ago, but increased 1 percent from $377.7 million after excluding restructuring and other items. In addition to the Calvin Klein purchase, restructuring charges included PVH’s discontinuation of its wholesale footwear business and the closure of some underperforming retail outlet stores, among other items.
As for the Calvin Klein business, total revenues amassed to $41 million, which represented a 1.5 percent decline over last year before special items, but a 15.1 percent improvement when comparing continuing operations. Moreover, the segment posted operating income of $13.2 million versus a year-ago loss of $2.7 million. On a comparable basis, operating income advanced 6.7 percent from $12.4 million.
“The Calvin Klein better women’s sportswear line, licensed to a joint venture formed by Kellwood and GAV, has received excellent response and sales have been strong since its launch in March,” said chief executive officer Bruce Klatsky in a statement.
In guidance, PVH said second-quarter earnings excluding charges are forecast at 24 to 25 cents a share, which is in line with the current consensus estimate of 25 cents. Full-year earnings without charges are forecast at $1.13 to $1.18, better than Wall Street’s current outlook of $1.13.
— Dan Burrows