Phillips-Van Heusen reaffirms previous guidance for revenue
Phillips-Van Heusen Corporation, in conjunction with the presentation to be given by Company management on January 11, 2011 at the Cowen and Company 9th Annual Consumer Conference is updating its previous guidance for earnings per share and reaffirming its previous guidance for revenue for the fourth quarter and fiscal year ending January 30, 2011.
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 2010:
For the fourth quarter of 2010, the Company now estimates non-GAAP earnings per share will be $0.82 versus its previous guidance of non-GAAP earnings per share of $0.76 to $0.81. This compares to non-GAAP earnings per share in the prior year's fourth quarter of $0.61. GAAP earnings per share in the fourth quarter of 2010 is estimated to be $0.69 versus the Company's previous guidance of $0.63 to $0.68. This compares to GAAP earnings per share of $0.51 in the prior year's fourth quarter.
Total revenue for the fourth quarter continues to be estimated at $1.37 billion.
Full Year 2010:
Non-GAAP earnings per share for the full year 2010 is now estimated to be $3.95 versus the previous non-GAAP guidance of $3.90 to $3.95 and prior year non-GAAP earnings per share of $2.83. GAAP earnings per share is estimated to be $0.70 for the full year 2010, compared to GAAP earnings per share of $3.08 in the prior year. The Company previously projected that full year 2010 GAAP earnings per share would be in a range of $0.65 to $0.70.
Total revenue for the full year 2010 continues to be estimated at $4.61 billion as compared to revenue of $2.40 billion in the prior year.
The discussions in this release that refer to non-GAAP amounts exclude the following:
• Costs incurred during 2009 in connection with restructuring initiatives implemented that year, including the shutdown of the Company's domestic production of machine-made neckwear, a realignment of the Company's global sourcing organization, reductions in warehousing capacity, lease termination fees for the majority of the Company's Calvin Klein specialty retail stores and other initiatives to reduce corporate and administrative expenses. The costs associated with these initiatives were $25.9 million in 2009, of which $4.7 million was incurred in the first quarter, $6.3 million was incurred in the second quarter, $6.2 million was incurred in the third quarter and $8.7 million was incurred in the fourth quarter.
• Estimated pre-tax costs of approximately $322 million expected to be incurred in 2010 in connection with the acquisition and integration of Tommy Hilfiger, including the following:
o a loss of $140.5 million associated with hedges against Euro to U.S. dollar exchange rates relating to the purchase price, of which $52.4 million was recorded in the first quarter and $88.1 million was recorded in the second quarter;