These include the company’s ready to change its strategy, objective, expectation and intensions, it need to use significant cash flow to service its debt obligations, it's vulnerability to weather, economic conditions, fuel prices, fashion trends, lost of retail accounts, disease, epidemics, war and terrorism, availability of raw materials and other factors. If reliance on the sales of its licensees and retail customers, and it's exposure to the behavior of its associates, business partners and licensors. Therefore, the company’s future results of operations could differ materially from historical results or current expectations. As more fully discussed in its SEC filings. The company does not undertake any obligation to update publicly any forward-looking statements including without limitation any estimate regarding revenue or earnings.The information made available also includes certain non-GAAP financial measures as defined under SEC rules. A reconciliation of these measures is included in the company’s earnings release which can be found on the company’s website www.pvh.com and in the company’s current report on Form 8-K furnished with the SEC in advance of this webcast and call. And now I’d like to turn the call over to Mr. Manny Chirico. Please go ahead. Manny Chirico Thank you. Good morning everyone and thank you for joining us. Joining me on the call this morning is Mike Shaffer, our Chief Financial Officer; Dana Perlman, our Treasurer; Allen Sirkin, our President; and Ken Duane, who is in charge of all of our Wholesale Apparel business. Just some general comments before I get into the businesses. We are very pleased with our fourth quarter results. We beat the top end of our fourth quarter earnings guidance by $0.08 and we gave that guidance in mid-January of this year. And the momentum we see in all of our businesses we were also able to increase our 2012 earnings guidance by $0.20 to $6.10 to $6.20 from $5.90 to $6 that we gave about two months ago.
Moving to each of our businesses. Our Calvin business continued its strong momentum. Total revenues in the fourth quarter for the combined Calvin Klein businesses were up 12%, and operating profits increased about 6%. The Calvin Klein wholesale and retail business that we operate directly posted a 13% sales increase in the quarter, but strong performance was driven by our Calvin Klein retail businesses which posted an 18% comp store increase in the quarter.For 2012 we are planning our Calvin Klein wholesale and retail businesses to grow about 7 to 9% which will be driven by mid single-digit comp store increases and a growth in square footage at both our wholesale and retail businesses. Moving to our licensing segment. Royalties in the quarter were up about 16%, the business posted strong double-digit growth in all geographic regions with the exception of Europe. Specifically, North America was up about 10%, Asia was up about 21%, Latin and South America were up about 30% and Europe was up low single-digits with fragrance posting strong performance while our apparel businesses were down for the quarter. For 2012, as we look at the Calvin Klein business, we are planning the growth more conservatively than in prior years. Overall, we are planning royalty revenue growth on a constant currency basis to grow about 4 to 5%. Foreign exchange will have about 200 basis point headwind against this business. In North America, royalty revenue the plans call for mid single-digit growth with [performance] in department stores, being partially offset by a planned reduction in sales to the off price channels, resulting in planned overall North American royalty growth in the low single-digit range for 2012. In Europe, the macro environment is causing us to conservatively plan this business for 2012. In addition, our take back from Warnaco of the European CK Bridge business will result in about $3 million reduction in royalties for 2012. As such our overall European royalties are being planned down about 5% in 2012.
Geographically, our Asian and South American royalty revenues are being planned to continue their explosive growth of about 20 to 25%. This growth has being driven by retail square footage growth coupled with strong comp store sales increases which will drive growth in these regions.Read the rest of this transcript for free on seekingalpha.com