Phillips-Van Heusen Predicts Lower Sales In 2Q

NEW YORK (AP) — Phillips-Van Heusen Corp., which makes Calvin Klein, Van Heusen and other clothing brands, on Tuesday forecast lower revenue in the second quarter and full-year because of a stronger dollar and weak consumer spending.

For the second quarter, earnings per share are expected between 29 cents and 39 cents, and adjusted earnings are expected between 35 cents and 45 cents per share, excluding $5 million in restructuring costs.

Second-quarter sales are expected to decline between 7 percent and 9 percent from the year-earlier quarter, partly because of lower Calvin Klein royalty revenue and a stronger dollar.

That implies sales between $521.7 million and $510.5 million based on year-ago revenue of $561 million.

Analysts polled by Thomson Reuters expect earnings per share and sales of 42 cents and $508.7 million in the second quarter, respectively.

For fiscal 2009, the company expects earnings per share between $1.93 and $2.18 per share.

When adjusted, the company expects earnings between $2.05 and $2.30 per share, excluding $10 million for restructuring initiatives.

Revenue is expected to decline between 7 percent and 8 percent from 2008, implying sales between $2.32 billion and $2.29 billion, based on year-ago sales of $2.49 billion. Calvin Klein royalty revenue will be flat in 2009, hurt by a stronger dollar.

For fiscal 2009, analysts see earnings of $2.19 and sales of $2.28 billion.

Phillips-Van Heusen also reported that first-quarter earnings dropped 47 percent amid lower revenue and restructuring costs, but results still topped Wall Street expectations.