• Q4 profit of US$27m versus $37.9m loss
  • Q4 revenue up 9% to $614.6m
  • Hails strong growth prospects for Tommy Hilfiger

Phillips-Van Heusen Corporation (PVH) recorded a fourth quarter profit of US$27m, thanks to better than expected revenue growth for the company’s Calvin Klein brand.

Revenues were up 9% to $614.6m, mainly thanks to a 22% surge in royalty revenue for Calvin Klein. Full-year revenues were flat at $2.4bn.

The company, which announced earlier this week the acquisition of Tommy Hilfiger for $3bn, said it expected to record full-year earnings per share of $3.20-3.28 excluding the contribution from its new business.

Revenues would total $2.47-2.5bn for the year, up 3-4%, with Calvin Klein royalty revenues poised to rise 5-7%.

For the first quarter of fiscal 2010, PVH expects earnings per share of $0.73-0.75 on revenues of $590-600m and a 6-7% increase in Calvin Klein royalty revenues.

The company expects Tommy Hilfiger to contribute earnings accretions of $0.20-0.25 in fiscal 2010, growing to $0.75-1.00 in fiscal 2011.

Chairman and CEO Emanuel Chirico hailed the “exceptional results” posted by the company’s heritage brands in the fourth quarter, which he said had enabled the business to exceed its previous guidance.

He said of the Hilfiger deal: “As we outlined when we announced the deal, the growth prospects for the combined company are strong and the businesses and cultures complementary, resulting in a company that has an attractive balance of domestic and international operations, wholesale and retail revenues, greater breadth and depth in product categories and a platform from which we expect to drive greater value for our customers and stockholders.”

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