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Phillips-Van Heusen 1Q outlook misses Street view

Phillips-Van Heusen Corp. on Monday issued first-quarter guidance short of analyst expectations, as Calvin Klein royalty revenue is hurt by the stronger dollar.
/ Source: The Associated Press

Phillips-Van Heusen Corp. on Monday issued first-quarter guidance short of analyst expectations, as Calvin Klein royalty revenue is hurt by the stronger dollar.

The company expects first-quarter earnings of 33 cents to 43 cents per share, or 40 cents to 50 cents per share, excluding one-time items. Analysts polled by Thomson Reuters, on average, predict a profit of 60 cents per share. Analysts estimates typically exclude one-time items.

Revenue is expected to fall to $530 million to $540 million, while analysts expect revenue of $567 million.

The company expects Calvin Klein royalty revenue to be down 2 percent to 4 percent in the first quarter, as global licensee sales growth is expected to be offset by the stronger dollar.

Meanwhile, the New York company expects retail and wholesale sales will fall 10 percent, hurt by cautious retailer orders amid the consumer spending slowdown.

It expects sales in stores open at least one year, a key retail metric known as same-store sales, to fall 10 percent.

For the year, the company, which makes Izod, Van Heusen and other clothing brands, expects earnings of $2 to $2.30 per share, excluding one-time items. Analysts predict a profit of $2.22 per share.

The company expects revenue of $2.30 to $2.33 billion, while analysts expect revenue of $2.27 billion.

Meanwhile, Phillips-Van Heusen reported a fourth-quarter loss, but its adjusted profit beat expectations. Revenue edged down 1 percent to $577.8 million.

Shares fell 77 cents, or 4.1 percent, to $18.20 during aftermarket trading. Earlier, the stock gained $1.55, or 8.9 percent, to close at $18.97 in the regular session, before the earnings were reported.