PVH earnings surge

Fashion concern Phillips-Van Heusen Corp reported a rise in second quarter earnings of 23.2 percent, thanks to the strong performance of the Calvin Klein licensing business. Its fragrance Euphoria did particularly well. “The strength of the Calvin Klein brand and our execution of the strategies we have implemented for that brand continue to fuel earnings increases in our Calvin Klein men's better sportswear, Calvin Klein outlet retail, and notably, Calvin Klein Licensing business,” chief executive Emanuel Chirico said in a statement. Net income for the quarter ended 30 July increased to $29 million (£15.4 million), up from $23.5 million last year. Revenues jumped 3.5 percent to $458.9 million, including a sales increase of 2.4 percent to $407.1 million. For the first six months, net income surged 60.3 percent to $77.7 million. Revenues for the period gained 5.4 percent to $965.4 million, including a sales gain of 5 percent to $861.3 million. “Our strategy of marketing our nationally recognized brands across multiple channels of distribution continues to benefit our bottom line,” Chirico said. “We remain focused on maximizing the growth opportunities for Calvin Klein and our wholesale businesses. Further, the continued strengthening of our balance sheet enables us to support these initiatives as well as look for additional vehicles for future growth.” Brands in PVH's stable include Michael Kors, Kenneth Cole and Geoffrey Beene.

www.pvh.com
25 August 2006

Klatsky partners in private equity

Bruce Klatsky, the former chief executive of Phillips-Van Heusen, has emerged from a brief retirement to become partner in a new private equity firm, writes WWD. The firm, called LNK Partners, is expected to be involved in the acquisition of retail and apparel companies.

Klatsky stepped down from PVH in June. He will now be working with Apax Partners alumni David Landau and Henry Nasella. Apax Parners was the private equity firm that owns 38 percent of PVH and helped finance the company's acquisition of Calvin Klein Inc in 2003. Klatsky's successor at PVH is Mark Weber, who was the former president and COO of the company. Klatsky spend 33 years working for PVH, ultimately as chairman and CEO for 12 of those.

www.pvh.com
10 October 2005

Philips-Van Heusen Q2 leap

American fashion group Philips-Van Heusen Corp has reported a leap in secons quarter earnings, thanks to strong sales of men's sportswear and dress shirts. Quarterly earnings climbed from $13.0 million (£7.21 million) in the same period last year to $23.5 million. Meanwhile net income dropped to $6.1 million from $7.7 million last year. However, second quarter revenues grew from $375.9 million to $443.5 million.

The company has raised projections for 2005 earnings to between $1.70 and $1.80 and revenues of $1.88 billion to $1.9 billion. “Our 2005 revenue and earnings projection continues to be based on a conservative view of the fourth quarter, and if the current trends in our business were to continue, we believe we would exceed these estimates for the year,” said chief executive Mark Weber. Philips-Van Heusen owns brands such as Van Heusen, Bass, Calvin Klein and IZOD. It also licenses brands like DKNY, Geoffrey Beene and Kenneth Cole.

www.pvh.com
29 August 2005

Phillips-Van Heusen income up

US based apparel producer Phillips-Van Heusen Corporation reported net income of $25 million (GBP 14 million) for the first quarter 2005. Total revenues in the first quarter climbed 25 per cent to $472.1 million from $378.2 million in the same period last year.

The improvement was due to the revenue increases in the company's wholesale dress shirt and sportswear business. Sales of new dress shirt lines with BCBG, Michael Kors, Sean Johan and Chaps introduced in the second half of last year spurred the growth. The distribution of Calvin Klein's men's sportswear collection, which had been introduced for fall 2004, also performed well. Calvin Klein licensing revenues increased by 8 per cent. Furthermore, sportswear brands Izod and Arrow performed beyond expectations.

Chairman and CEO Bruce J. Klatsky said: "Our focus remains on maximizing the growth opportunities for Calvin Klein and our wholesale dress shirt and sportswear businesses." He added, "We remain very pleased with our execution across all segments of our business and with the prospects for the new Calvin Klein businesses which will fuel growth in 2005 and beyond. Looking beyond this year, we continue to be comfortable in our ability to grow earnings at 15-20% per year."

www.pvh.com
26 May 2005

Philips-Van Heusen Acquires Arrow

Men's clothing manufacturer Phillips-Van Heusen Corp. agreed to acquire the Arrow brand worldwide and related licenses from Cluett American Group for about USD70 million. Van Heusen, whose brands include Calvin Klein, has operated the men's Arrow dress shirt and sportswear businesses in the U.S. since 2000, under a long-term licensing agreement with Cluett, and sublicenses the boys' shirt and sportswear businesses. The lines generate about $160 to $170 million in annual sales.

The acquisition, which is expected to close by year's end, is expected to add to Van Heusen's earnings in 2005. For the third quarter ended Oct. 31, the company reported a 57% jump in income, to $26.7 million. Shares of Van Heusen rose as much as 2.7% during early trading. They ended up 2.6%, at $26.88. Both Van Heusen and Cluett are based in Manhattan.

www.pvh.com
28 November 2004

Calvin Klein Boosts PVH results

Phillips-Van Heusen Corporation has posted better-than-expected Q3-results boosted by growth in its Calvin Klein business.
The company reported third-quarter net income of $26.7 million compared with last year's $17.0m. Like-for-like profit during the three-month period rose to $30.6m which ahead of the company's previous earnings guidance.

The improvement in third-quarter like-for-like net income was mainly attributable to earnings increases in the company's two business segments. Operating earnings for the apparel and related products segment increased 30 per cent over the prior year, due to the consistent strong performance of the company's wholesale apparel business and improvements within the retail outlet business.
The Calvin Klein Licensing divisions saw a 40 per cent increase in operating earnings from the prior year due to growth of new and existing licensees.

www.pvh.com
18 november 2004

Phillips-Van Heusen Q2 earnings up

Phillips-Van Heusen Corp. said its net income rose, but earnings per common share halved due to costs related to its Calvin Klein acquisition, preferred dividend expenses and an increase in the number of shares outstanding.
For the second quarter the company posted earnings of $9 million compared with $7.9 million a year earlier.

The results include an after-tax acquisition cost of $4.1 million. It also includes a $5.1 million dividend expense paid to convertible preferred shareholders and a one time gain related to sale of an investment. Excluding costs associated with financing the acquisition and the one-time gain, the company would have earned $11.6 million. Phillips-Van Heusen, whose brands include Van Heusen, Bass and Calvin Klein said revenue rose to $377.1 million
from $331.2 million a year earlier.

"The strong performance of our Calvin Klein and wholesale apparel businesses continued to help minimize the earnings decline in our retail divisions, which suffered from negative comp store sales and higher promotional selling," Bruce J. Klatsky, chairman and chief executive, said in a prepared statement. The company, which completed its acquisition of Calvin Klein in February, reported its results after the market close on Wednesday.

August 21 2003
www.pvh.com

Phillips-Van Heusen reports profits

Phillips-Van Heusen Corp., which recently acquired fashion company Calvin Klein Industries Inc., swung to a net profit in its fiscal fourth quarter in the midst of growth in its wholesale sportswear and dress-shirt businesses. The apparel maker, whose brands include Van Heusen, Izod and G.H. Bass, Monday reported net income in the last quarter of 5.7 million USD, compared with a net loss of 9.5 million USD a year earlier. Sales slipped 3.2 percent to 315.3 USD million from 325.6 million USD in the same period a year earlier.

Phillips-Van Heusen said its apparel segment achieved an earnings increase of 2.2 million USD boosted by higher gross margins. The company's footwear segment saw a 20 percent earnings jump because of "tighter management" of operating expenses. For the full year, Phillips-Van Heusen reported net income of 30.4 million USD. In December, the company struck a deal to acquire the design studio and trademarks of Calvin Klein for about 400 million USD in cash, roughly 30 million USD in stock and potential royalties that could be valued at 200 million to 300 million USD over time.

www.pvh.com
March 5, 2003

PVH to re-launch CK in Europe

Contrary to rumors, Phillips-Van Heusen Corporation, the US dress shirt maker announced it will step up rather than scale down the European operations of Calvin Klein, its recently acquired designer brand. Rumors were circulating on the continent that the new owners of Calvin Klein, Phillips-Van Heusen, had decided to shutter, or at least drastically cut back, the designer's European headquarters in south Milan. According to sources, Phillips-Van Heusen, which acquired the Calvin Klein business late last year, is eager to cut operating costs.

In a recent interview Marc Weber, president and COO of New-York-based Phillips-Van Heusen denied the rumors. He explained that the Calvin Klein brand had not yet tapped the European market to a sufficient degree. The brand's European re-launch is planned for this year. "We are menswear specialists and will produce CK menswear ourselves," Mr Weber said.

However, a licensee is still being sought for the CK womenswear line. Mr Weber believes that an exclusive US manufacturer or a combination of an American and a European licensee could prove viable propositions. Mr Weber admits that Calvin Klein's European business has left a lot to be desired in recent years. He believes that the logical consequence is not to choke but to selectively inject new life into its European activities.

January 22, 2003
www.pvh.com

Apparel sales rise for Phillips-Van Heusen

American dress shirt maker Phillips-Van Heusen Corporation reported bigger quarterly earnings this week, helped by strong results in its apparel segment. The corporation reported 40% improvement in Q3 net income.

The company that is based in New York makes clothing under its Van Heusen, Bass and Izod brands as well as licensed labels such as DKNY and Kenneth Cole. Phillips- Van Heusen said its Q3 net income was GBP 10,9 million, compared with GBP 7,8 million in the year-ago period. Net sales for the quarter rose to GBP 253,9 million from GBP 251,4 million a year earlier.

The third quarter increase in net income resulted principally from the Apparel segment, which had a 39% increase in operating earnings. This increase was fueled by higher gross margins along with a 3% sales increase. As in the current year's first two quarters, the Apparel segment continued to realize gross margin improvements from overall lower product costs, driven by last year's reconfiguration of the Company's sourcing operations, and more full-price sales.

Partially offsetting the strong results of the apparel segment in the current quarter was the performance of the Footwear segment, which had a 6% sales decline and a 24% decrease in operating earnings. A soft back to school selling season coupled with unseasonably warm weather throughout the early Fall season negatively impacted sales and gross margins as higher promotional markdowns were needed to drive footwear sales.

Commenting on these results, Bruce J. Klatsky, Chairman and Chief Executive Officer, noted that "the continued gross margin improvement in the Apparel segment was the key driver to our improved third quarter earnings. Although we are disappointed with the Footwear segment's third quarter performance, we reacted quickly by increasing our promotional markdowns and keeping our footwear inventories at appropriate levels. We currently anticipate the Footwear segment's fourth quarter earnings comparison to be positive."

November 22, 2002
www.pvh.com