PVH raises guidance for fourth quarter
Phillips-Van Heusen Corporation, announced that based on strong performance in January, it was updating its previous guidance by increasing its estimates for earnings per share, revenue and cash flow for the fiscal year ending January 31, 2010. The Company also provided initial guidance for its 2010 fiscal year.
The discussions in this release that refer to non-GAAP amounts exclude the items which are described in this release under the heading "Non-GAAP Exclusions." Reconciliations of GAAP to non-GAAP amounts are presented in the tables later in this release and identify and quantify all excluded items.
Fourth Quarter 2009
For the fourth quarter of 2009, the Company now estimates non-GAAP earnings per share will be $0.59 versus its prior guidance on both a GAAP and non-GAAP basis of $0.52 to $0.54. This compares to non-GAAP earnings per share in the prior year's fourth quarter of $0.30. GAAP earnings per share in the fourth quarter of 2009 is estimated to be $0.48 compared to a GAAP loss per share of $(0.74) in the prior year's fourth quarter.
Total revenue for the fourth quarter is now estimated to be $612 million, an increase of 9% from prior year fourth quarter revenue of $561 million, on a non-GAAP basis, and an increase of 6% from revenue of $578 million, on a GAAP basis.
The Company's updated guidance reflects a very strong end to the fourth quarter across all components of its business. The Company's outlet retail divisions exceeded prior expectations and delivered fourth quarter 2009 comparable store sales of positive 11% versus the prior estimate of positive 8%. The global growth momentum of the Calvin Klein brand also continued, with an increase in royalty revenue of approximately 20% for the fourth quarter as compared to the prior year period, attributable to strong performances in jeans, underwear, fragrance, women's sportswear, dresses and outerwear.
Full Year 2009
Non-GAAP earnings per share for the full year 2009 is now estimated to be $2.80 versus the prior non-GAAP guidance of $2.73 to $2.75 and year-ago non-GAAP earnings per share of $2.95. GAAP earnings per share is estimated to be $3.05 for the full year 2009, compared to GAAP earnings per share of $1.76 in the prior year. The Company previously projected that full year 2009 GAAP earnings per share would be in a range of $3.09 to $3.11.
Total revenue for the full year 2009 is now estimated to be flat to the prior year non-GAAP amount of $2.40 billion, and compares to GAAP revenue of $2.49 billion in the prior year.
Cash flow for the full year 2009 is now estimated to be approximately $150 million compared to cash flow of $58 million in the prior year. As a result, the Company estimates that it will end 2009 with cash of approximately $480 million.
Full Year 2010
The Company also announced initial guidance for 2010. Following a very strong close to 2009, total revenue in 2010 is projected to increase 3% to 4% versus 2009, with earnings per share projected in the range of $3.20 to $3.25, an increase of 14% to 16% over 2009 on a non-GAAP basis. On a GAAP basis, 2010 earnings per share is projected to be 5% to 7% above 2009.