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Calvin Klein drives PVH Q2 performance
21 Aug '08
4 min read
In addition, the recent bankruptcy filings of certain of our wholesale customers resulted in a sales shortfall of approximately $6 million in the quarter and negatively impacted pre-tax earnings by approximately $3 million, or $0.03 per share, which includes the related reserves for uncollectible receivables.
Six Months Results:
For the six months in 2008, earnings growth in the Company's Calvin Klein licensing business was 32%, which partially offset earnings decreases in the Company's heritage brand outlet retail and sportswear businesses. Earnings for the six months in 2008 were also negatively impacted by approximately $12 million, or $0.14 per share, of start-up costs associated with the Company's Timberland wholesale men's sportswear business and Calvin Klein specialty retail stores.
For the six months, total revenue increased 4% to $1,186.7 million in 2008 from $1,144.3 million for the same period in 2007, driven by revenue growth of 24% in the Company's Calvin Klein licensing business.
Balance Sheet:
The Company ended the second quarter with $260.5 million in cash, a decrease of $105.8 million from the prior year's second quarter. This decrease was driven by the completion of the Company's stock repurchase program during the fourth quarter of 2007, in which the Company utilized $200 million of cash to repurchase approximately 5.2 million shares of its common stock.
Inventories ended the quarter on plan and were up 1% compared to the prior year's second quarter. Inventories at the end of the second quarter of 2008 include inventories for the new Timberland wholesale men's sportswear business, the new Calvin Klein specialty retail stores and the recently-acquired Calvin Klein Collection wholesale business, which total approximately $19 million, or a 6% increase in total inventories from the prior year. Excluding the inventories of these new businesses, inventories were down 5%, which reflects the Company's continued focus on maintaining clean inventory levels.
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Six Months Results:
For the six months in 2008, earnings growth in the Company's Calvin Klein licensing business was 32%, which partially offset earnings decreases in the Company's heritage brand outlet retail and sportswear businesses. Earnings for the six months in 2008 were also negatively impacted by approximately $12 million, or $0.14 per share, of start-up costs associated with the Company's Timberland wholesale men's sportswear business and Calvin Klein specialty retail stores.
For the six months, total revenue increased 4% to $1,186.7 million in 2008 from $1,144.3 million for the same period in 2007, driven by revenue growth of 24% in the Company's Calvin Klein licensing business.
Balance Sheet:
The Company ended the second quarter with $260.5 million in cash, a decrease of $105.8 million from the prior year's second quarter. This decrease was driven by the completion of the Company's stock repurchase program during the fourth quarter of 2007, in which the Company utilized $200 million of cash to repurchase approximately 5.2 million shares of its common stock.
Inventories ended the quarter on plan and were up 1% compared to the prior year's second quarter. Inventories at the end of the second quarter of 2008 include inventories for the new Timberland wholesale men's sportswear business, the new Calvin Klein specialty retail stores and the recently-acquired Calvin Klein Collection wholesale business, which total approximately $19 million, or a 6% increase in total inventories from the prior year. Excluding the inventories of these new businesses, inventories were down 5%, which reflects the Company's continued focus on maintaining clean inventory levels.
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Phillips-Van Heusen Corporation
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