* Raises first quarter, fiscal year profit outlook
* Q1 outlook above estimates, year view below Street
* PVH will offer shares, notes to fund Hilfiger deal
* Sees Hilfiger deal adding to earns immediately
(Adds fiscal year outlook, Hilfiger deal details,
background)
NEW YORK, April 20 (BestGrowthStock) – Clothing maker Phillips-Van
Heusen Corp (PVH.N: ) raised its profit outlook for the quarter
and fiscal year, citing a much better-than-expected performance
at all its divisions.
The owner of well-known brands such as Izod and Calvin
Klein said the outlook excluded any possible benefits from its
recently announced $3 billion deal to buy fashion brand Tommy
Hilfiger. [ID: nN15167494]
Phillips-Van Heusen, which sees the deal adding to earnings
immediately excluding certain one-time integration costs, also
said it will offer 4.5 million common shares and $525 million
worth of senior unsecured notes due 2020 to fund it.
PVH said it sees the deal adding 20 cents to 25 cents a
share in fiscal 2010, excluding one-time cash integration
costs, and boosting fiscal 2011 profit by 75 cents to $1 a
share.
In the first quarter, PVH sees earnings of 80 cents a
share, excluding items, up from its prior outlook of 73 cents
to 75 cents a share. It sees revenue rising 9 percent to about
$605 million to $610 million in the period.
Analysts were expecting a profit of 74 cents a share on
sales of $586.9 million, according to Thomson Reuters I/B/E/S.
For the full year, the company expects to earn about $3.25
to $3.33 a share, compared with its prior outlook of $3.20 to
$3.28 a share. Analysts were expecting a profit of $3.55 a
share.
It sees 2010 sales up 4 percent to 5 percent at $2.49
billion to $2.51 billion, while analysts were looking for sales
of $3.75 billion.
Stock Analysis
(Reporting by Dhanya Skariachan; editing by Robert MacMillan
and Andre Grenon)
UPDATE 2-Phillips-Van Heusen ups outlook; to offer shares
Commnets
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