• Fourth Quarter 2009 EPS Projected to Be $0.52 to $0.54 versus Non-GAAP EPS of $0.30 and GAAP Loss Per Share of $0.74 in the Prior Year’s Fourth Quarter

  • Full Year 2009 Non-GAAP EPS Projected to Be $2.73 to $2.75; Full Year GAAP EPS Projected to Be $3.09 to $3.11
  • Fourth Quarter 2009 Revenue Projected to Increase 7% to 8% over Prior Year Fourth Quarter Non-GAAP Revenue, or 4% to 5% on a GAAP Basis

Phillips-Van Heusen Corporation (NYSE: PVH), in advance of the presentation by Company management on January 12, 2010 at the Cowen and Company 8th Annual Consumer Conference, today announced that it is updating its previous guidance by increasing its earnings and revenue estimates for both the fourth quarter and full year 2009 and its cash flow estimate for the full year 2009.

For the fourth quarter 2009, the Company is currently estimating that earnings per share will be $0.52 to $0.54 versus its prior guidance of $0.38 to $0.42. This compares to non-GAAP earnings per share in the prior year’s fourth quarter of $0.30. Total revenue for the fourth quarter is currently estimated to be $603 million to $608 million, or an increase of approximately 7% to 8% versus prior year fourth quarter non-GAAP revenue of $561 million. The Company’s updated guidance reflects its strong performance throughout the fourth quarter, including during the holiday season. Business in the Company’s outlet retail divisions is significantly exceeding prior expectations, with estimated fourth quarter 2009 comparable store sales of positive 8% versus the prior projection of positive 2% to 3%. Additionally, the global growth momentum of the Calvin Klein brand continued, with royalty revenue currently projected to increase at least 10% for the fourth quarter as compared to the prior year period. Also included in the Company’s updated earnings guidance is an increase in advertising expenditures of approximately $15 million over the prior year’s fourth quarter. (Please see section entitled “Non-GAAP Exclusions” later in this release.)

Non-GAAP earnings per share for the full year 2009 is currently estimated to be $2.73 to $2.75 versus the prior non-GAAP guidance of $2.59 to $2.63. Total revenue for the full year 2009 is now projected to be approximately $2.39 billion. (Please see section entitled “Non-GAAP Exclusions” later in this release.)

GAAP loss per share was $0.74 in the prior year’s fourth quarter. On a GAAP basis, total revenue for the fourth quarter is expected to increase 4% to 5% compared to fourth quarter 2008 revenue of $578 million. GAAP earnings per share is projected to be $3.09 to $3.11 for the full year 2009. The Company previously projected that full year 2009 GAAP earnings per share would be in a range of $2.95 to $2.99.

Cash flow for the full year 2009 is currently estimated to be $100 million to $110 million, as compared to the Company’s previous guidance of $80 million to $85 million.

Non-GAAP Exclusions:

The discussions in this release that refer to non-GAAP amounts exclude the following:

  • Costs incurred in connection with the Company’s restructuring initiatives announced in the fourth quarter of 2008, including the shutdown of the Company’s domestic production of machine-made neckwear, a realignment of the Company’s global sourcing organization, reductions in warehousing capacity, lease termination fees for retail stores and other initiatives to reduce corporate and administrative expenses. Such costs associated with these initiatives are as follows:
    • Pre-tax costs of $17.2 million that were incurred in the first three quarters of 2009.
    • Pre-tax costs of $17.8 million that were incurred in the fourth quarter of 2008. In addition, pre-tax non-cash fixed asset impairment charges of $63.8 million were recorded in the fourth quarter of 2008 that principally related to approximately 200 of the Company’s retail stores.
  • The fourth quarter 2008 operating results and exit costs associated with the Company’s Geoffrey Beene outlet retail division, which was closed during 2008. The net pre-tax costs related to the operating results and exit costs associated with the Company’s Geoffrey Beene outlet retail division were $3.5 million for the fourth quarter of 2008. Revenue related to the Geoffrey Beene outlet retail division was $16.5 million for the fourth quarter of 2008.
  • The tax benefit of the above pre-tax costs, and a net tax benefit of approximately $30 million that was recorded primarily in the third quarter of 2009, related principally to the lapse of the statute of limitations with respect to certain previously unrecognized tax positions.

Please see reconciliations of GAAP to non-GAAP amounts later in this release.

Details on Accessing Live Webcast and Replay:

The Company’s presentation at the Cowen and Company Conference will take place at 2:00 PM EST on Tuesday, January 12, 2010. The live webcast (audio-only) and a replay, which will be available beginning one hour after the conference, may be accessed by logging onto www.pvh.com and going to the News Releases page under the Investor Relations tab.