First Quarter 2009 Highlights Total Company Notwithstanding one less week in the current year quarter compared to the prior year quarter, net revenues rose 6% on a constant currency basis. Double digit growth, in constant currency, in the Company's Calvin Klein businesses was the primary contributor to the positive results. On a reported basis however, net revenues for the Company's Calvin Klein businesses fell 5% and total Company net revenues fell 5% to $538.4 million. The quarter benefited from an incremental $25.3 million of sales to certain domestic channels, reflecting both a shift in timing from later quarters as well as expanded penetration.
Gross margin decreased 290 basis points to 42% of net revenues. Gross margin was adversely affected by currency exchange rates and a more promotional environment.
SG&A expense declined 19% to $158.8 million. SG&A as a percent of net revenues decreased 510 basis points to 29% of net revenues. The decrease reflects the effects of currency exchange rates as well as the initial benefits of the Company's previously announced expense reduction initiatives.
Operating income increased 15% to $64.1 million compared to $55.7 million in the prior year quarter. Operating income for the first quarter of fiscal 2009 and 2008 was adversely affected by $9.1 million and $20.1 million, respectively, of restructuring charges and pension expense. On an adjusted basis (excluding costs related to restructuring expenses, pension expense, certain tax related items and other items) operating income was $73.2 million compared to $75.5 million in the prior year period, due primarily to the effects of currency exchange rates.
The Company recorded income from continuing operations of $38.5 million, or $0.83 per diluted share, compared to $7.0 million, or $0.15 per diluted share, in the prior year period. Income from continuing operations for the first quarter of fiscal 2008 included an initial tax charge of $19.5 million, or $0.42 per diluted share, related to the repatriation of proceeds connected to the sale of the Company's Lejaby business.
Income from continuing operations, on an adjusted basis (excluding costs related to restructuring expenses, pension expense, certain tax related items and other items), as detailed in the accompanying schedules, was $1.00 per diluted share compared to $0.94 per diluted share in the prior year period.
The impact of foreign currency exchange rates decreased fiscal 2009 first quarter net revenues, gross profit, SG&A and operating profit by approximately $60.9 million, $34.4 million, $20.4 million and $14.0 million, respectively, and decreased income from continuing operations by approximately $0.20 per diluted share.
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