'We are extremely pleased with Q2 results' – PVH CEO

20 Aug '09

6 min read

The Company is increasing its 2009 earnings per share estimate to a range of $2.30 to $2.40 on a non-GAAP basis, which excludes certain amounts, principally consisting of $11.0 million of pre-tax costs that have been incurred in connection with the Company's restructuring initiatives. On a GAAP basis, the Company is currently projecting its 2009 earnings per share to be in a range of $2.16 to $2.26. The Company's previous earnings per share projections were $2.05 to $2.30 on a non-GAAP basis and $1.93 to $2.18 on a GAAP basis.

Total revenue for 2009 is currently projected to be in a range of $2.32 billion to $2.34 billion, a decrease of approximately 2% to 3% from the Company's 2008 revenue on a non-GAAP basis of $2.40 billion, which excludes approximately $95 million of revenue associated with the Company's exited Geoffrey Beene outlet retail division. On a GAAP basis, it is currently projected that 2009 revenue will decrease approximately 6% to 7% from 2008. The Company previously projected that total revenue would decrease 3% to 4% on a non-GAAP basis and 7% to 8% on a GAAP basis.

Click here to read more details:

CEO Comments
Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “We are extremely pleased with our second quarter results, as we were able to significantly exceed our previous revenue and earnings guidance despite the challenging economic environment. As both consumers and our wholesale customers focus more and more on value, our nationally recognized brands, particularly Van Heusen, ARROW and IZOD, are well-positioned to respond to their demands. The strong performance of our wholesale and retail sportswear businesses was proof of that this quarter. While still cautious about the pace of economic recovery, given the improvement in business trends in the quarter and the strong positioning of our brands, along with maintaining the planned performance of Calvin Klein, we have raised our full year revenue and earnings guidance.”

Mr. Chirico continued, “We remain focused on our working capital management and continue to see the benefit of our tight inventory management. We have a strong balance sheet, with $370 million of cash at the end of the second quarter. This represents an increase of more than $100 million from the prior year. We have no outstanding borrowings under our revolving credit facility and no maturities of long-term debt until 2011, and we believe that our strong financial position presents us with the ability to manage through current challenges while remaining well-positioned to capitalize on future growth opportunities.”

Mr. Chirico concluded, “While uncertainty about the economy persists, we are confident that our diversified business model puts us in a very strong position. Our moderate brands are performing well and we continue to believe that Calvin Klein represents a significant growth opportunity that will be realized as the global economic downturn reverses. While we remain prudent in our planning for this year, we continue to invest in all of our brands through advertising and capital investments to support our long-term growth and to keep our brands in the forefront of consumers' minds when we emerge from this recession.”

Phillips-Van Heusen

More Phillips-Van Heusen Corporation News... More Fashion News - United States Of America...