Phillips-Van Heusen Corp., the parent of G.H. Bass, widened
its loss in the second quarter but indicated revenue and GAAP and Non-GAAP EPS exceeded
company's guidance and consensus estimate. Full-year revenue and EPS guidance
was increased.

For the Second Quarter of 2010:

    * Earnings per share on a non-GAAP basis was $0.72, which
exceeded the company's guidance and was 20% ahead of the prior year's second
quarter non-GAAP earnings per share of $0.60.
    * GAAP loss per share was $(0.83), which was significantly
better than the company's guidance and compares to the prior year's second
quarter GAAP earnings per share of $0.51.
    * Revenue was $1,103.3 million, which exceeded the company's
guidance, as compared to the prior year's second quarter revenue of $529.3
million. The revenue increase of $574.0 million was driven by (i) $532.2
million of revenue related to the newly acquired Tommy Hilfiger business and
(ii) a $41.8 million or 8% increase in the revenue of the company's Calvin
Klein and Heritage Brands businesses.

Segment Presentation

The acquisition of Tommy Hilfiger has significantly impacted the way the company
manages and analyzes its operating results. As such, the company has changed
the way it discusses its business segments and results. The company now
aggregates its segments into three main businesses: (i) Calvin Klein, which
consists of the company's Calvin Klein Licensing segment (including the company's
Calvin Klein Collection business, which the company operates directly in
support of the global licensing of the Calvin Klein brands) and the company's
Other (Calvin Klein Apparel) segment, which is comprised of the company's
Calvin Klein dress furnishings, sportswear and outlet retail divisions; (ii)
Tommy Hilfiger, which consists of the company's Tommy Hilfiger North America
and Tommy Hilfiger International segments; and (iii) Heritage Brands, which
consists of the company's Heritage Brand Wholesale Dress Furnishings, Heritage
Brand Wholesale Sportswear and Heritage Brand Retail segments.

Calvin Klein

The Calvin Klein business continued its growth momentum during the quarter,
with an increase in royalty revenue of 11% as compared to the prior year's
second quarter, fueled by strong performance across virtually all product
categories, with jeans, underwear, fragrance, women's sportswear and dresses
performing particularly well. Sales for the company's Calvin Klein business
increased 17% as compared to the prior year's second quarter, with comparable
retail store sales growing 14% as compared to the same period.

Earnings before interest and taxes for the company's Calvin Klein business was $54.0
million in the second quarter. This represents a 21% increase over the prior
year's second quarter non-GAAP earnings before interest and taxes, and a 25%
increase over the GAAP earnings before interest and taxes for the same period
last year. The increase was principally due to the royalty and sales increases
discussed above, combined with an improvement in gross margin due to strong
sell-throughs in both the wholesale and retail divisions. Partially offsetting
these gains was an increase in advertising spending in the company's Calvin
Klein Licensing segment that the company elected to undertake to support
various new product launches in the jeans, underwear and fragrance categories.

Tommy Hilfiger

The company's newly acquired Tommy Hilfiger business generated $532.2 million
of revenue in the second quarter, which was $12.2 million higher than the company's
previous guidance. On a non-GAAP basis, the Tommy Hilfiger business contributed
earnings before interest and taxes of $56.6 million in the second quarter,
which was $16.6 million higher than the company's previous guidance. The better
than expected results were due to stronger than anticipated sales and gross
margins in all divisions, combined with a shift in the timing of certain
expenses of approximately $5 million that were planned to occur in the second
quarter but are now expected to be incurred in the second half of 2010. While
all divisions were strong during the quarter, the North American retail and
European wholesale divisions performed particularly well.

The GAAP loss before interest and taxes for the company's Tommy Hilfiger
business was $(7.2) million.

Heritage Brands

Revenue for the company's Heritage Brands business increased 5% as compared to
the prior year's second quarter, including an increase in comparable retail
store sales of 11%.

Earnings before interest and taxes for the company's Heritage Brand business
increased 11% over the prior year's second quarter non-GAAP earnings before
interest and taxes and 14% over the prior year's second quarter GAAP earnings
before interest and taxes to $31.0 million, due to the revenue increase
mentioned above and gross margin improvements across all of the company's
Heritage Brand divisions. Partially offsetting the improvement in earnings
before interest and taxes was a $10 million planned increase in advertising
expense principally related to the IZOD brand's sponsorship of the IZOD Indy
Racing Series.

Second Quarter Consolidated Earnings:

On a non-GAAP basis, second quarter consolidated earnings before interest and
taxes was $121.9 million, compared to the prior year's amount of $57.7 million.
This $64.2 million improvement includes (i) the $56.6 million of earnings
before interest and taxes on a non-GAAP basis associated with the newly
acquired Tommy Hilfiger business; (ii) a $12.6 million or 17% improvement on a
non-GAAP basis in earnings before interest and taxes in the combined Calvin
Klein and Heritage Brands businesses; and (iii) a $5.0 million increase on a non-GAAP
basis in corporate expenses to support the company's expanded global
operations.

On a GAAP basis, the company had a second quarter loss before interest and
taxes of $(44.1) million, which was a decrease of $95.6 million compared to
GAAP earnings before interest and taxes of $51.4 million in the prior year's
second quarter. The decrease includes (i) a GAAP loss of $(7.2) million, which
includes acquisition and integration costs, in the second quarter in the company's
newly acquired Tommy Hilfiger business; (ii) a $14.5 million, or 21%,
improvement in earnings before interest and taxes in the combined Calvin Klein
and Heritage Brands businesses; and (iii) a $102.9 million increase in
corporate expenses, which includes acquisition and integration costs. Total
pre-tax costs related to the acquisition and integration of Tommy Hilfiger were
$166.1 million in the second quarter, including an $88.1 million loss on hedges
entered into to cover a portion of the Euro denominated purchase price of the transaction
due to the impact of a weakening Euro leading up to the closing of the
acquisition. Pre-tax restructuring and other costs incurred in the second
quarter of 2009 were $6.3 million.

Net interest expense for the quarter was $39.2 million and principally includes
interest on the new debt issued in order to fund the Tommy Hilfiger
acquisition. Net interest expense was $8.0 million in the prior year's second
quarter. Earnings per share for the second quarter was also negatively impacted
by the effect of the shares of common and convertible preferred stock issued in
connection with the acquisition.

The effective tax rate for the second quarter was 37.6% on a non-GAAP basis,
and 34.5% on a GAAP basis. These rates were higher than previous guidance, as the
company's domestic operations, which are taxed at a higher rate than its
international operations, generated a larger proportion of pre-tax income in
the second quarter than anticipated.

Six Months Consolidated Results:

    * Earnings per share on a non-GAAP basis was $1.54 for the
current year's six months and $1.13 for the prior year's six month period.
    * GAAP loss per share was $(1.39), as compared to the prior
year's six month period GAAP earnings per share of $0.99.
    * Revenue was $1,722.3 million, which represents an increase
of $635.6 million over the prior year's amount of $1,086.7 million. The newly
acquired Tommy Hilfiger business contributed $532.2 million of this increase.

Balance Sheet:

The company ended the second quarter with a net debt position of approximately
$2.020 billion comprised of approximately $2.495 billion of debt net of $475
million of cash. During the second quarter, the company paid $2.483 billion in
cash and issued 8.0 million shares of the company's common stock, valued at
$486 million, for total consideration of approximately $3.0 billion, to acquire
Tommy Hilfiger. The cash portion of the purchase price was funded principally
from net proceeds of approximately $365 million from the offering in the first
quarter of 2010 of 5.75 million shares of common stock, the sale in the second
quarter of 8,000 shares of Series A convertible preferred stock (which are
convertible into 4.2 million shares of the company's common stock) for a gross
purchase price of $200 million, the sale in the second quarter of $600 million
of 7 3/8% senior notes due 2020 and $1.9 billion of term loans borrowed under
new credit facilities. In conjunction with this financing, the company paid
$304 million during the second quarter, inclusive of prepayment penalties and
related fees, to extinguish its $150 million notes due 2011 and its $150
million notes due 2013.

The company made a $100 million voluntary debt repayment on the term loans
prior to the end of the second quarter of 2010 and plans to make additional
repayments in the fourth quarter of 2010 of approximately $300 million.

Inventories for the second quarter ended on plan and are in line with the third
quarter revenue increases discussed in the 2010 Guidance section below.

2010 Guidance:

Assumptions

Please see the section entitled “Full Year and Third Quarter Guidance
Assumptions and Reconciliations of GAAP to Non-GAAP Amounts” at the end of this release for further detail on certain
assumptions that are contemplated in the following guidance.

Full Year Guidance

Earnings per share in 2010 is currently projected to be in the range of $3.70
to $3.80 on a non-GAAP basis and includes an increase in advertising
expenditures of $15 million over previous guidance. A substantial portion of
this increased marketing spend will be invested in the Tommy Hilfiger Fall and
Holiday advertising campaigns. The non-GAAP earnings per share estimate
excludes approximately $315 million of pre-tax costs ($3.28 per share after
tax), associated with the acquisition and integration of Tommy Hilfiger. On a
GAAP basis, consolidated earnings per share in 2010 is currently projected to
be in the range of $0.42 to $0.52. Non-GAAP earnings before interest and taxes
for the Tommy Hilfiger business, inclusive of the higher level of advertising
spending, is estimated to be $180 million to $190 million (10% to 11% margin on
earnings before interest and taxes), which excludes acquisition and integration
costs. GAAP earnings before interest and taxes for the Tommy Hilfiger business
is estimated to be $90 million to $100 million (approximately 5% margin on
earnings before interest and taxes).

Revenue in 2010 is currently projected to be $4.44 billion to $4.47 billion,
which includes approximately $1.81 billion to $1.83 billion of revenue
attributable to the Tommy Hilfiger business. For the full year, the company is
currently projecting that Calvin Klein royalty revenue will increase 8% to 9%
(9% to 10% on a constant currency basis). Combined sales for the company's
Heritage Brands and Calvin Klein businesses are currently projected to grow
between 10% and 11%. Comparable store sales for the company's Heritage Brands
and Calvin Klein businesses are currently projected to grow approximately 7% to
8% on a combined basis.

Third Quarter Guidance

For the third quarter of 2010, earnings per share is currently projected to be
in the range of $1.37