Restructuring and other items in the prior year include the costs of (i) exiting the wholesale footwear business and relocating the Company's retail footwear operations, (ii) closing underperforming retail outlet stores and (iii) debt extinguishment associated with the Company's debt refinancing in February 2004.
Second quarter net income of $23.5 million improved 65 percent from second quarter 2004 net income of $14.2 million, which excludes restructuring and other items, as the positive trends experienced in the first quarter continued. The Apparel and Related Products segment earnings increased 65 percent driven by double-digit revenue growth in the Company's dress shirt and sportswear businesses.
Total revenues in the second quarter increased 18 percent to $443.5 million from $375.9 million in the prior year. Key drivers were the dress shirt and sportswear increases noted above, a 13 percent growth in Calvin Klein Licensing revenues and the continued rollout of a limited number of Calvin Klein outlet stores in premium outlet malls. For the six months, total revenues were $915.6 million, an increase of 21 percent from the prior year amount of $754.2 million.
From a balance sheet perspective, the Company continues to generate positive cash flow and, after incurring the costs associated with the secondary common stock offering, ended the quarter with a $27.4 million decrease in net debt versus the prior year. Inventories ended the quarter onplan, with a 20 percent increase over the prior year's level. The increase supports the additional volume relating to the Calvin Klein sportswear business and planned growth in the dress shirt and other sportswear businesses for the third quarter.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
