Calvin Klein royalty revenue to increase 6-7%, PVH
Phillips-Van Heusen Corporation announced it was updating its previous guidance by increasing its estimates for earnings per share and revenue for the first quarter and full year 2010.
Tommy Hilfiger Acquisition
The Company announced on March 15, 2010 that it had entered into a definitive agreement, subject to certain customary conditions, to purchase Tommy Hilfiger B.V. and certain affiliated companies. The following provides guidance for the Company's first quarter and full year 2010 assuming the transaction is not consummated and that the Company continues on a standalone basis. The Company will incur certain one-time transaction expenses principally during the first quarter of 2010 related to the proposed Tommy Hilfiger acquisition whether or not it is consummated, which are included in the Company's GAAP guidance, but excluded from the Company's non-GAAP guidance.
First Quarter Guidance
For the first quarter of 2010, the Company now estimates non-GAAP earnings per share will be $0.80 versus its prior guidance of $0.73 to $0.75. This compares to non-GAAP earnings per share in the prior year's first quarter of $0.53. GAAP earnings per share is estimated to be $0.11 in the first quarter of 2010, as compared to $0.48 in the prior year's first quarter. First quarter revenue is currently expected to be approximately $605 million to $610 million in 2010, an increase of 9% from the prior year's first quarter. The Company's updated guidance reflects stronger than expected performance across all of its operating divisions in the first two and a half months of 2010. The Company is currently projecting Calvin Klein royalty revenue to increase approximately 8% in the first quarter of 2010 as compared to the prior year. The Company is currently projecting revenue for the Company's combined wholesale and retail businesses to increase approximately 10% in the first quarter of 2010 as compared to the prior year, with comparable store sales for the Company's retail businesses projected to grow approximately 11%. The Company previously projected that comparable store sales for the Company's retail businesses would grow approximately 6% to 7%.
Full Year Guidance
Non-GAAP earnings per share in 2010 is currently projected to be in the range of $3.25 to $3.33 versus the Company's prior guidance of $3.20 to $3.28. The updated earnings per share guidance represents an increase of 15% to 18% over 2009 on a non-GAAP basis. On a GAAP basis, earnings per share is currently expected to be in the range of $2.56 to $2.64, or a decrease of 14% to 17% compared to the prior year.
Revenue in 2010 is projected to be $2.49 billion to $2.51 billion, or an increase of 4% to 5% versus 2009. For the full year, the Company is currently projecting that Calvin Klein royalty revenue will increase 6% to 7%. Combined revenue for the Company's wholesale and retail businesses is currently planned to grow between 4% and 5%. Comparable store sales for the Company's retail businesses are currently projected to grow approximately 4% to 5%. The Company previously projected that comparable store sales for the Company's retail businesses would grow approximately 2% to 3%.