US: Phillips-Van Heusen raises outlook after buoyant Q3

19 November 2009 | Source: just-style.com

Phillips-Van Heusen Corporation raised its full-year forecasts after posting a stronger than expected third quarter profit of US$83.6m, up 56% on last year.

The US company exceeded the high end of its own forecasts, with underlying revenues practically flat at $697.4m - down 4% on last year before adjustments.

The performance was partly driven by a 9% rise in Calvin Klein royalty revenues, thanks to strength in footwear, women's apparel and outerwear, but a relatively flat performance from jeans and underwear.

International revenues for the brand outstripped the performance in the US, which declined in line with expectations, the company said.

Retail comparable store sales were up 6%, well ahead of company forecasts of a 2-3% decline, while adjusted EBIT rose 4% to $96.6m.

"The improvement in business trends we experienced in the second quarter intensified during the third quarter and enabled us to significantly exceed our previous revenue and earnings guidance," said Phillips-Van Heusen chairman and CEO Emanuel Chirico.

The company raised its full-year earnings per share guidance to $2.59-2.63, compared to previous guidance of $2.30-2.40, with revenues projected to decline by 1% to $2.37-2.38bn.

Click here for further analysis of Phillips-Van Heusen's third quarter.