Phillips-Van Heusen's Q2

Phillips-Van Heusen Corp.'s second-quarter net income fell 25% as the company recorded costs for its exit from the Geoffrey Beene outlet business, and its sales declined. In the second-quarter, the company's income declined to $29.2 million, or 56 cents a diluted share, from $39.1 million, or 68 cents, in the same year-ago period. Earnings were also negatively impacted by $5 million in start-up costs associated with the firm's Timberland wholesale men's sportswear business and Calvin Klein specialty retail stores.

Phillips-Van Heusen, which sells clothes and shoes under brands including Bass, Calvin Klein and Izod, said revenue rose 1.5% to $561 million. In May, the company said it expected adjusted earnings of 63 cents to 66 cents a share and revenue of $575 million to $585 million. Comparable-store sales fell 2%, a decline that was blunted by 9% growth at the Calvin Klein stores. Phillips-Van Heusen said it now expects 2008 revenue of $2.56 billion to $2.58 billion. The company maintains its outlook for adjusted earnings.

The Calvin Klein licensing business continued its strong performance during the second quarter and posted revenue and earnings growth of 30 percent and 47 percent, respectively. "This performance was driven by continued growth across virtually all product categories and regions of the globe, with jeans and underwear performing exceptionally well," the company told WWD.

Phillips-Van Heusen Corp. recently switched its Calvin Klein better women's sportswear licenses from Kellwood Company to G-III Apparel Group. As Kellwood's licenses were set to run until 2012, G-III may be liable for a reduced minimum royalty. G-III will now manufacture and distribute the upmarket women's apparel to stores in the United States, Canada, and Mexico, as well as sites in Central and South America beginning in the 2009 spring and summer shipping season.