Phillips-Van Heusen Corp., the parent of G.H. Bass, swung to a first-quarter loss due to charges related to its acquisition of Tommy Hilfiger.
For the quarter ended May 2, Phillips-Van Heusen posted a loss of $27.6
million, or 53 cents a share, compared with a year-earlier profit of
$24.7 million, or 48 cents a share. The latest results included $104
million in charges related to the Tommy Hilfiger acquisition, including
the impact of a weakening euro, while year-earlier results included $4.7
million in restructuring and other costs. Excluding the items, earnings
grew to 83 cents from 53 cents.
Revenue jumped 11% to $619 million as the company's outlet retail
same-store sales grew 12%.
Last month, the company raised its projections, seeing earnings of about
80 cents on revenue of $605 million to $610 million, above analysts'
then estimates.
Gross margin widened to 51.2% from 48.8%.
At the wholesale and retail division, the company's largest business,
revenue increased 11%. The Calvin Klein licensing division saw revenue
jump 13%. Calvin Klein has driven Phillips-Van Heusen's profit, as
growth at its Izod, Arrow and Van Heusen brands slow.
Looking ahead, the company–which sells clothes and shoes under brands including Bass, Calvin Klein and Izod–sees full-year earnings of $3.55 to $3.65 a share and revenue of $4.35 billion to $4.4 billion, up from last month's view of earnings of $3.25 to $3.33 and revenue of $2.49 billion to $2.51 billion.
Phillips-Van Heusen also sees second-quarter earnings of 50 cents to 52 cents a share, excluding acquisition and integration costs, on revenue of $1.08 billion to $1.1 billion, which includes $520 million from the Tommy Hilfiger business.
