(Source: Associated Press/AP Online)
NEW YORK - Clothing maker Phillips-Van Heusen Corp. said Wednesday that it was raising its full-year guidance after posting a better-than-expected second-quarter profit.
The company that makes Calvin Klein, Van Heusen and other clothing brands said it expects to earn between $2.16 per share and $2.26 per share for the year. That's up from its previously forecast profit of $1.93 to $2.18 per share.
Excluding one-time items, the company's forecast amounts to a profit between $2.30 and $2.40 per share.
The company expects revenue to slide between 6 and 7 percent, slightly less than its earlier estimate of 7 percent to 8 percent.
Including the impact of its decision to shut its Geoffrey Beene outlet division last year, the company expects revenue to fall 2 percent to 3 percent, to between $2.32 billion and $2.34 billion.
The retailer now expects same-store sales to fall between 3 percent to 4 percent, less severe that its earlier forecast of 6 percent to 7 percent. Same-store sales are an important retail industry metric of sales in stores open at least a year.
Last year, the company's net revenue was $2.49 billion, or $2.40 billion excluding Geoffrey Beene.
Analysts surveyed by Thomson Reuters expect the company to earn $2.30 per share on revenue or $2.31 billion for the full year. Those estimates typically exclude one-time items.
For the third quarter, the company expects to earn between 80 cents and 85 cents per share. The company expects quarterly net revenue to decline between 9 and 10 percent from revenue in the third quarter of 2008 of $727.5 million.
The company expected adjusted third-quarter revenue to be between $655 million and $665 million, down between 5 and 6 percent. Phillips-Van Heusen expects same-store sales to fall 2 to 3 percent for the period.
Analysts are forecasting a quarterly profit of 90 cents per share on revenue of $675.2 million.
Also Wednesday, the New York-based company said it earned $26.6 million, or 51 cents per share, during the second quarter. That compares with a profit of $29.2 million, or 56 cents per share, during the same period last year.
Excluding a series of one-time items, the company earned $31.3 million, or 60 cents per share.
Revenue fell 5.6 percent to $529.3 million for the period that ended Aug. 2.
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