Phillips-Van Heusen reports earnings
Phillips-Van Heusen Corporation has reported fourth quarter 2004 net income, of $17.3 million after restructuring and other items. This compares with fourth quarter 2003 net loss of $9.2 million. Fourth quarter 2004 net income, excluding restructuring and the one-time tax benefit, was $14.8 million which was 75%, ahead of the company's previous earnings guidance.
For the full year, 2004 net income was $58.6 million, after restructuring and other items. Full year 2003 net income was $14.7 million. Net income for the full year 2004, excluding restructuring and other items, was $70.7 million – an improvement of 40% over the previous year.
Restructuring and other items in 2004 include the costs of exiting the wholesale footwear business and relocating the Company's retail footwear operations; closing underperforming retail outlet stores; debt extinguishment associated with the Company's debt refinancing in February 2004; and a one-time tax benefit associated with the recognition of state net operating loss carryforwards.
The improvement in 2004 fourth quarter net income was said to be due to earnings increases in both of the company's operating segments. Operating earnings for the Apparel and Related Products segment increased 21% over the prior year driven by strength in the company's wholesale dress shirt and sportswear businesses and a significant improvement in overall gross margin. The Calvin Klein Licensing segment recorded a 43% increase in operating earnings over the prior year due to growth exhibited by existing licensees and the addition of revenues from new licensees.
Total revenues in the fourth quarter increased 16% to $413.8 million from $356.4 million in the prior year. For the full year, total revenues were $1.64 billion, an increase of 5% from the prior year amount of $1.57 billion.
