By Alexandria Sage
SAN FRANCISCO (Reuters) - Apparel maker CorpPhillips-Van Heusen Corp raised its adjusted profit andrevenue outlook for 2010, and reported better-than-expectedsecond-quarter earnings.
Phillips-Van Heusen said Monday it had a second quarternet loss, but excluding charges associated with itsnewly-acquired Tommy Hilfiger brand, the company reportedearnings that beat analysts' estimates.
The company cited growth in all three of its units and saidpreppy casual brand Tommy Hilfiger contributed $532 million torevenues.
The Tommy Hilfiger deal, which closed in May, is expectedto double the company's sales and is seen as a vehicle toexpand internationally while increasing revenue from departmentstores.
The company also owns the Calvin Klein label and othersportswear lines such as Arrow, Izod and Bass, which it callsits heritage brands. It also makes apparel for licensed brandssuch as Michael Kors, Timberland and Nautica.
PVH raised its full-year adjusted earnings per shareoutlook to a range of $3.70 to $3.80, from $3.55 to $3.65 pershare. It also raised its revenue projection to $4.44 billionto $4.47 billion for the year, from an earlier range of $4.35billion to $4.4 billion.
Tommy Hilfiger is expected to contribute about $1.81billion to $1.83 billion to total revenue, PVH said.
For the full year, Calvin Klein and PVH's heritage brandsare expected to grow 10 to 11 percent on a combined basis, withsame store sales for those two units up 7 percent to 8 percent.
In the second quarter ended Aug. 1, PVH posted a net lossof $54.6 million, or 83 cents per share, compared with ayear-ago net profit of $26.6 million, or 51 cents per share.
Adjusting for the acquisition and integration of TommyHilfiger, the company posted earnings of 72 cents.
Analysts, on average, had been expecting adjusted earningsof 54 cents per share, according to Thomson Reuters I/B/E/S.
In June, PVH said it would likely beat its projectedsecond-quarter earnings range of 50 cents to 52 cents pershare.
Revenue rose 108 percent to $1.10 billion in the quarter,driven by $532 million from Tommy Hilfiger and an 8 percentincrease in revenue from the company's Calvin Klein andHeritage brands businesses.
Wall Street, on average, had been expecting revenue of$1.09 billion.
The company said it expects third-quarter adjusted earningsper share of between $1.37 and $1.42 on revenue of $1.42billion to $1.44 billion.
That compares to the $1.42 per share expected by analystson revenue of $1.43 billion.
PVH said it had paid $100 million of its debt on its termloans ahead of schedule during the second quarter, and expectedto repay another $300 million at the end of 2010, more than ithad originally projected.
The $3 billion cash and stock deal to acquire TommyHilfiger from London-based Apax Partners has been one of theyear's biggest but was viewed by some analysts as costly toPVH.
Shares rose to $51.13 after closing at $50.50, on the NewYork Stock Exchange. (Reporting by Alexandria Sage; editing by Carol Bishopric)