NEW YORK — Growth in Calvin Klein royalties and the heritage men’s dress shirt and sportswear businesses drove double-digit percentage increases in Phillips-Van Heusen’s fourth-quarter and year-end results.
Fourth-quarter earnings for the three months ended Feb. 4 rose 16.8 percent to $26.8 million, or 47 cents a diluted share, from $22.9 million, or 41 cents, in the same year-ago period. Total revenues climbed 21.1 percent to $557 million from $460.1 million, while sales jumped 20.5 percent to $487.6 million from $404.8 million. The balance in revenues was mostly from royalty income.
For the year, net income jumped 39 percent to $155.2 million, or $2.64 a diluted share, from $111.7 million, or $1.85, in 2006. Total revenues increased 9.5 percent to $2.09 billion from $1.91 billion the prior year, while sales rose 9 percent to $1.85 billion from $1.7 billion.
The company said revenue growth in the quarter was fueled by a 32 percent increase in Calvin Klein royalties attributable to existing and new licenses, with strength from the licensed fragrance business owing to the success of women’s Euphoria and the recent launch of men’s Euphoria. Also boosting revenue gains were increases from its wholesale dress shirt and sportswear businesses, particularly Calvin Klein men’s better sportswear and IZOD men’s sportswear.
“The demand for the Calvin Klein brand continues across a growing number of product categories around the globe, reaffirming the strength of this brand. The positive financial impact of the Calvin Klein licensing business, along with a continued earnings increase in our heritage businesses, enabled us to surpass our previous earnings guidance,” said Emanuel Chirico, chief executive officer, in a statement.
Chirico said the company was excited about its new licensing agreement with Timberland Co. to produce its men’s and women’s casual sportswear lines. The licensed products are expected to launch with the men’s fall 2008 line and women’s fall 2009 line.
PVH projected full-year 2007 earnings per share to be between $3.00 and $3.06, or a 15 to 17 percent increase over 2006 EPS. First-quarter EPS is expected at 85 cents, an increase of 15 percent over first-quarter 2006 EPS.