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fashion-features

PVH Q4 Net Rises on Calvin Klein’s Strength

Power of brand at home and abroad helps company offset weakness in other wholesale and retail operations; Izod license inked for India.

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Calvin Klein was the fourth-quarter superstar at Phillips-Van Heusen Corp., which managed to drive net income up 13.4 percent despite weakness in the firm’s other wholesale and retail businesses.

Net income increased to $30.3 million, or 55 cents a diluted share, from $26.8 million, or 47 cents a year ago. Revenues for the three months ended Feb. 3 rose 4.9 percent to $584.5 million from $557 million.

“Calvin Klein continues to exhibit strength both domestically and internationally and is driving our revenue and earnings growth,” said Emanuel Chirico, chairman and chief executive.

For the year, earnings shot up 30 percent to $183.3 million, or $3.21 a diluted share, on a 16 percent rise in sales to $2.43 billion.

Chirico said the company would continue to put money into new initiatives to drive growth, such as Izod women’s sportswear and Calvin Klein specialty stores.

Earnings per diluted are slated to rise to $3.30 to $3.40 in 2008, as sales increase 7 to 8 percent to about $2.6 billion.

The company is also looking abroad for growth.

PVH said it inked a licensing deal with Arvind Mills to produce and market Izod-branded apparel in India.

Under the license, Arvind can distribute the goods both at wholesale and through Izod-branded stores.

“PVH is represented in India through the presence of several of its brands, including Arrow, which Arvind has distributed for more than 15 years,” said Kenneth Wyse, president of licensing at PVH. “Arvind has the skill, business acumen, experience and infrastructure to introduce and develop successfully the Izod brand in India.”

Arvind was founded in 1931 and also has a joint venture with VF Corp. to sell its Wrangler, Lee, Nautica, and Kipling brands on the subcontinent.

For complete coverage, see Tuesday’s issue of WWD.
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