Phillips-Van Heusen Corporation reported first quarter 2008 results.
• Earnings per share was $0.90, which exceeded the Company's previous guidance and the consensus estimate. • Current year's first quarter includes $7 million, or $0.08 per share, of start-up costs associated with new businesses. Prior year first quarter earnings per share was $0.92. • Revenue increased 6% to $625.7 million from $591.9 million in the prior year's first quarter.
First Quarter Results: The Calvin Klein licensing business continued its positive momentum from the prior year, driving revenue growth and partially offsetting the reduction in earnings experienced by the Company's heritage outlet retail and moderate sportswear businesses.
Total revenue and earnings growth in the Calvin Klein licensing business were 19% and 17%, respectively, compared to the prior year's first quarter. This performance was driven by continued momentum in the apparel and accessories business in Europe and Asia.
Revenue in the first quarter of 2008 increased 3% in the Company's combined wholesale and retail businesses while earnings decreased 14%. Performance in the quarter was positively impacted by the addition of the Company's IZOD women's sportswear business and the continued strong performance exhibited by the Company's dress furnishings, Calvin Klein men's better sportswear and Calvin Klein outlet retail businesses.
The Company's heritage outlet retail and moderate sportswear businesses, however, continued to be adversely affected by the difficult macroeconomic retail environment. Total outlet retail comparable store sales were slightly better than plan at minus 2%, as the Calvin Klein outlet retail business achieved comparable sales growth of 10% for the quarter and the heritage outlet retail businesses had a comparable store sales decline of 6%.
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