Phillips-Van Heusen posts 2Q loss but adjusted profit, revenue leap on Hilfiger buyout

Phillips-Van Heusen 2Q results top outlook

NEW YORK — Clothing maker Philips-Van Heusen Corp. on Tuesday posted a fiscal second-quarter loss as hefty costs linked to restructuring and the acquisition of the Tommy Hilfiger brand offset a surge in revenue. But adjusted results and the company’s full-year outlook topped Wall Street expectations, sending shares up in aftermarket trading.

“We saw growth across each of our businesses in the quarter, and we are particularly excited about the exceptional performance of the Tommy Hilfiger business,” said Chairman and CEO Emanuel Chirico. “Everything that we have seen to date has only served to make us more confident about the opportunities ahead.”

For the three months ended Aug. 1, the company said its loss totaled $54.6 million, or 83 cents per share, compared with net income of $26.6 million, or 51 cents per share, in the year-ago period. But excluding $166 million in acquisition charges and $6.3 million in restructuring charges, the company said it earned 72 cents per share.

Revenue more than doubled to $1.1 billion from $529.3 million a year ago. The increase reflected the Hilfiger acquisition and growth from existing businesses.

The results beat the average estimates of analysts polled by Thomson Reuters, who expected profit of 54 cents per share on revenue of $1.09 billion. Analysts typically exclude one-time charges in their estimates.

The Calvin Klein business posted revenue growth of 15 percent to $201.8 million, while Heritage Brands revenue rose 6 percent to $778.2 million. Tommy Hilfiger, which the company acquired on May 6, generated $532.2 million in revenue.

The company said it plans to increase marketing and advertising spending by $15 million through the rest of the year.

For the current quarter, the company forecast adjusted profit between $1.37 and $1.42 per share on revenue between $1.42 billion and $1.44 billion.

Wall Street is expecting adjusted profit of $1.42 per share on revenue of $1.43 billion, on average.

For the full fiscal year, Philips-Van Heusen forecast adjusted profit between $3.70 and $3.80 per share on revenue between $4.44 billion and $4.47 billion. That’s well above the average estimate of $3.62 per share on revenue of $4.38 billion, expected by analysts.

In aftermarket electronic trading, Philips-Van Heusen shares rose 80 cents to $51.30. The stock closed the regular session down 60 cents at $50.50.