Phillips-Van Heusen Q2 earnings up

Phillips-Van Heusen Corp. said its net income rose, but earnings per common share halved due to costs related to its Calvin Klein acquisition, preferred dividend expenses and an increase in the number of shares outstanding. For the second quarter the company posted earnings of $9 million compared with $7.9 million a year earlier.

The results include an after-tax acquisition cost of $4.1 million. It also includes a $5.1 million dividend expense paid to convertible preferred shareholders and a one time gain related to sale of an investment. Excluding costs associated with financing the acquisition and the one-time gain, the company would have earned $11.6 million. Phillips-Van Heusen, whose brands include Van Heusen, Bass and Calvin Klein said revenue rose to $377.1 million from $331.2 million a year earlier.

"The strong performance of our Calvin Klein and wholesale apparel businesses continued to help minimize the earnings decline in our retail divisions, which suffered from negative comp store sales and higher promotional selling," Bruce J. Klatsky, chairman and chief executive, said in a prepared statement. The company, which completed its acquisition of Calvin Klein in February, reported its results after the market close on Wednesday.