Wholesale sportswear growth was driven by increases in all of the Company's sportswear brands, particularly Calvin Klein men's better sportswear. Growth in the Company's outlet retail business was driven by a 6 percent increase in comp sales and the continued roll out of a limited number of Calvin Klein stores in premium outlet malls.
Further contributing to the overall increase was growth in revenues of the Calvin Klein Licensing business.
Balance Sheet
The Company ended the quarter with $305.2 million in cash, an increase of $178.3 million compared with the prior year's first quarter. The Company's higher year over year cash position, coupled with higher investment rates of return, resulted in a 30 percent decrease in net interest expense in the current year's first quarter.
Early in the second quarter of 2006, the Company's Series B preferred stockholders voluntarily converted all of their preferred stock into 11.6 million shares of common stock and sold 10.1 million shares of such common stock in a secondary offering.
The Company webcasts its conference calls to review its earnings release. The Company's conference call to review its first quarter earnings release is scheduled for Wednesday, May 24, 2006 at 11:00 a.m. EST.
Please log on either to our web site at www.pvh.com and go to the News Releases page or to www.companyboardroom.com to listen to the live webcast of the conference call.
The webcast will be available for replay for one year after it is held, commencing approximately two hours after the live broadcast ends.
Phillips-Van Heusen Corporation
marketing@alchempro.com
