Also contributing to the Calvin Klein revenue increase was the success of the multiple new licensed product categories launched over the past few years and strong performances in jeans and underwear.
Revenue in the Company's combined wholesale and retail businesses increased 20%, driven by the newly-acquired neckwear business, growth in the Company's wholesale sportswear business principally related to the Calvin Klein and Van Heusen brands and the addition of sales associated with IZOD women's sportswear.
In addition, the Company's outlet retail business achieved comparable store sales growth of 7%, or 5% after adjusting for the shifted retail calendar.
Year to Date Results:
For the six months in 2007, net income was $92.1 million, or $1.60 per share, which represents a 27% improvement over non-GAAP earnings per share of $1.26 in 2006. (Please refer to the "2006 non-GAAP Exclusions" section in this release.) For the six months, GAAP net income was $77.7 million, or $1.27 per share in 2006.
For the six months, total revenue increased 19% to $1,144.3 million in 2007 from $965.4 million for the same period in 2006.
Balance Sheet:
Receivables ended the quarter 42% above the prior year level, due principally to the revenue growth exhibited by the Company's wholesale and licensing businesses combined with the calendar shift caused by the 53rd week in fiscal 2006, which resulted in a higher sales volume near the end of the second quarter of 2007 when compared to the prior year. Inventories increased 26% to end the quarter on plan and in line with anticipated sales growth for the third quarter.
The Company's balance sheet at the end of the second quarter of 2007 includes receivables and inventories related to the Company's new neckwear and IZOD women's sportswear businesses.
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Phillips-Van Heusen Corporation
marketing@alchempro.com
