Phillips-Van Heusen Shares Edge Up

NEW YORK (AP) — Shares of Phillips-Van Heusen Corp., which owns the Calvin Klein, Izod and Van Heusen clothing brands, outpaced the broader market Friday after an analyst said changes at department store Macy's Inc. could be a big boost to its market share.

Wedbush Morgan analyst Jeff Mintz said Macy's consolidation from seven to four regions and centralized buying patterns will benefit big vendors like Phillips-Van Heusen starting in the second half of the year.

Mintz also said in the note to investors on Friday that while department stores have been cutting down on inventory as consumer spending tumbled, a broad economic recovery would propel market share gains for Phillips-Van Heusen, given its brands' importance to major retailers.

The Commerce Department said earlier this week that retail sales fell in April for a second-straight month, crimping hopes of a rebound in consumer spending. Still, many hard-hit mall-based retailers saw a slowdown in sales declines last month.

The Calvin Klein brand is also outperforming the broader retail environment, he said, even if a stronger dollar is biting into its sales.

Mintz maintained a "Hold" rating on the company, but increased his target price by $3 to $23. That price target implies downside of 12.1 percent from its closing price Thursday of $26.18.

Shares of Phillips-Van Heusen rose 39 cents, or 2.8 percent, to $26.57 in midday trading, outpacing the Dow Jones industrials' 0.38 percent move lower. Earlier in the session, the stock gained as much as 4.7 percent to $27.40.