boosted pro forma earnings guidance Tuesday after the shirtmaker said insiders would sell 6.4 million shares in a secondary offering.
The New York company said holders of its Series B convertible preferred stock would sell common shares issued on conversion of the preferred stock. The sellers are led by Apax, which acquired the stock in Phillips' 2003 buy of Calvin Klein.
Phillips will also pay Apax $11 million in forgone dividends and $1 million in offering costs. The company said that excluding those costs and the dilution accompanying the conversion of the preferred stock, it expects to post second-quarter earnings of 40 to 41 cents a share, which is two pennies ahead of the company's previous estimate and ahead of the 39-cent Wall Street analyst consensus estimate. Including the costs, second-quarter earnings will be around 17 to 18 cents a share, the company said.
"The Company believes that if current trends in its business were to continue, it would exceed the revised 2005 second-quarter estimates," Phillips said. "In addition, although the Company has not raised its earnings estimates for the second half of the year, it continues to believe that if the current trends in its business were to continue into the third and fourth quarters, it would also exceed its estimates for the second half of the year."
Phillips stock closed Friday at $33.11.