Calvin Klein Licensing biz operating income growth of 28%
23 Aug '07
3 min read
Phillips-Van Heusen Corporation reported second quarter 2007 net income of $39.1 million, or $0.68 per share, which was $0.07 ahead of its previous earnings guidance. This represents a 28% improvement over second quarter 2006 non-GAAP earnings per share of $0.53. Second quarter 2006 GAAP net income was $29.0 million, or $0.33 per share.
The second quarter earnings per share improvement was driven by a 20% revenue increase combined with a 130 basis point improvement in operating income margin as all of the Company's businesses registered revenue and earnings increases.
Continued strong growth in royalty revenue resulted in Calvin Klein Licensing business operating income growth of 28%. Operating income in the combined wholesale and retail businesses grew 30%, driven by a 20% increase in revenue along with a 50 basis point improvement in gross margin which was attributable to strong product sell-throughs.
Included in the second quarter of 2007 were $2.2 million of pre-tax costs, or $0.02 per share, associated with the start-up of the Company's Timberland wholesale sportswear business and Calvin Klein better specialty retail stores.
Total revenue in the second quarter of 2007 was $552.4 million versus $458.9 million in the prior year. Revenue increased 27% in the Company's Calvin Klein licensing business, driven by continued strength in the fragrance business, due principally to the new men's and women's CKIN2U fragrance line that was successfully launched in the first quarter of 2007 and increased sales of both the men's and women's euphoria fragrance.
marketing@alchempro.com
