PhillipsVan Heusen Corp. (PVH, Financial) filed Quarterly Report for the period ended 2009-11-01.
PHILLIPS-VAN HEUSEN CORP. is a vertically integrated manufacturer, marketer and retailer of men's, women's and children's apparel and footwear. Their products include shirts, sweaters and shoes and, to a lesser extent, neckwear, furnishings, bottoms, outerwear and leather and canvas accessories. They are also a leading manufacturer and distributor of private label shirts and sweaters. Phillipsvan Heusen Corp. has a market cap of $2.03 billion; its shares were traded at around $39.31 with a P/E ratio of 15.6 and P/S ratio of 0.8. The dividend yield of Phillipsvan Heusen Corp. stocks is 0.4%. Phillipsvan Heusen Corp. had an annual average earning growth of 24.9% over the past 5 years.
SG&A expenses in the third quarter of 2009 decreased $7.6 million to $247.2 million, or 35.4% of total revenue, from $254.8 million, or 35.0% of total revenue, in the third quarter of the prior year. The 40 basis point increase in SG&A expenses as a percentage of total revenue was due principally to a lack of sales leverage as a result of the sales decrease mentioned previously. The $7.6 million decrease was due principally to the net effect of the following items:
Interest expense of $8.4 million in the third quarter of 2009 was relatively flat to the prior years third quarter amount of $8.5 million. Interest income decreased to $0.2 million in the third quarter of 2009 from $1.5 million in the third quarter of the prior year due principally to a decrease in average investment rates of return.
SG&A expenses in the first nine months of 2009 decreased $35.1 million to $684.3 million, or 38.4% of total revenue, from $719.4 million, or 37.6% of total revenue, in the first nine months of the prior year. The 80 basis point increase in SG&A expenses as a percentage of total revenue was due principally to a lack of sales leverage as a result of the sales decrease mentioned previously. The $35.1 million decrease was due principally to the net effect of the following items:
Interest expense of $25.1 million in the first nine months of 2009 was relatively flat to the prior years first nine months amount of $25.3 million. Interest income decreased to $1.1 million in the first nine months of 2009 from $4.9 million in the first nine months of the prior year due principally to a decrease in average investment rates of return.
For near-term liquidity, in addition to our cash balance, we have a $325.0 million secured revolving credit facility with JP Morgan Chase Bank, N.A. as the Administrative Agent and Collateral Agent that expires in July 2012 and provides for revolving credit borrowings, as well as the issuance of letters of credit. We may, at our option, borrow and repay amounts up to a maximum of $325.0 million for revolving credit borrowings and the issuance of letters of credit with a sublimit of $50.0 million for standby letters of credit and with no sublimit on trade letters of credit. The total amount of the facility may be increased by us under certain conditions by up to $100.0 million. Based on our working capital projections, we believe that our borrowing capacity under this facility provides us with adequate liquidity for our peak seasonal needs for the foreseeable future. During the first nine months of 2009, we had no revolving credit borrowings under the facility, and the maximum amount of letters of credit outstanding was $132.3 million. As of November 1, 2009, we had $126.0 million of outstanding letters of credit under this facility. We currently do not expect to have any revolving credit borrowings under the facility during the remainder of 2009.
Read the The complete ReportPVH is in the portfolios of John Buckingham of AL FRANK ASSET MANAGEMENT INC, George Soros of Soros Fund Management LLC, Chuck Royce of ROYCE & ASSOCIATES, Stanley Druckenmiller of Duquesne Capital Management, LLC, Jeremy Grantham of GMO LLC.
PHILLIPS-VAN HEUSEN CORP. is a vertically integrated manufacturer, marketer and retailer of men's, women's and children's apparel and footwear. Their products include shirts, sweaters and shoes and, to a lesser extent, neckwear, furnishings, bottoms, outerwear and leather and canvas accessories. They are also a leading manufacturer and distributor of private label shirts and sweaters. Phillipsvan Heusen Corp. has a market cap of $2.03 billion; its shares were traded at around $39.31 with a P/E ratio of 15.6 and P/S ratio of 0.8. The dividend yield of Phillipsvan Heusen Corp. stocks is 0.4%. Phillipsvan Heusen Corp. had an annual average earning growth of 24.9% over the past 5 years.
Highlight of Business Operations:
We announced during the fourth quarter of 2008 a series of actions that we planned to undertake to respond to the difficult economic conditions that existed during the second half of 2008 and were expected to (and did) continue into 2009, including restructuring certain of our operations and implementing a number of other cost reduction efforts. We began implementing the restructuring initiatives during the fourth quarter of 2008 and we completed substantially all of them by the end of the third quarter of 2009. The restructuring initiatives included the shutdown of domestic production of machine-made neckwear, a realignment of our global sourcing organization and reductions in warehousing capacity, all of which had headcount reductions associated with them, as well as lease terminations for certain of our retail stores and other initiatives to reduce corporate and administrative expenses. We recorded pre-tax charges in the fourth quarter of 2008 in connection with these initiatives that totaled approximately $82 million, of which approximately $64 million related to non-cash asset impairments, principally associated with our retail stores, and approximately $18 million related to lease terminations, severance and other costs. We recorded additional pre-tax charges of $17.2 million related to severance, non-cash asset impairments, lease terminations and other costs during the first nine months of 2009.SG&A expenses in the third quarter of 2009 decreased $7.6 million to $247.2 million, or 35.4% of total revenue, from $254.8 million, or 35.0% of total revenue, in the third quarter of the prior year. The 40 basis point increase in SG&A expenses as a percentage of total revenue was due principally to a lack of sales leverage as a result of the sales decrease mentioned previously. The $7.6 million decrease was due principally to the net effect of the following items:
Interest expense of $8.4 million in the third quarter of 2009 was relatively flat to the prior years third quarter amount of $8.5 million. Interest income decreased to $0.2 million in the third quarter of 2009 from $1.5 million in the third quarter of the prior year due principally to a decrease in average investment rates of return.
SG&A expenses in the first nine months of 2009 decreased $35.1 million to $684.3 million, or 38.4% of total revenue, from $719.4 million, or 37.6% of total revenue, in the first nine months of the prior year. The 80 basis point increase in SG&A expenses as a percentage of total revenue was due principally to a lack of sales leverage as a result of the sales decrease mentioned previously. The $35.1 million decrease was due principally to the net effect of the following items:
Interest expense of $25.1 million in the first nine months of 2009 was relatively flat to the prior years first nine months amount of $25.3 million. Interest income decreased to $1.1 million in the first nine months of 2009 from $4.9 million in the first nine months of the prior year due principally to a decrease in average investment rates of return.
For near-term liquidity, in addition to our cash balance, we have a $325.0 million secured revolving credit facility with JP Morgan Chase Bank, N.A. as the Administrative Agent and Collateral Agent that expires in July 2012 and provides for revolving credit borrowings, as well as the issuance of letters of credit. We may, at our option, borrow and repay amounts up to a maximum of $325.0 million for revolving credit borrowings and the issuance of letters of credit with a sublimit of $50.0 million for standby letters of credit and with no sublimit on trade letters of credit. The total amount of the facility may be increased by us under certain conditions by up to $100.0 million. Based on our working capital projections, we believe that our borrowing capacity under this facility provides us with adequate liquidity for our peak seasonal needs for the foreseeable future. During the first nine months of 2009, we had no revolving credit borrowings under the facility, and the maximum amount of letters of credit outstanding was $132.3 million. As of November 1, 2009, we had $126.0 million of outstanding letters of credit under this facility. We currently do not expect to have any revolving credit borrowings under the facility during the remainder of 2009.
Read the The complete ReportPVH is in the portfolios of John Buckingham of AL FRANK ASSET MANAGEMENT INC, George Soros of Soros Fund Management LLC, Chuck Royce of ROYCE & ASSOCIATES, Stanley Druckenmiller of Duquesne Capital Management, LLC, Jeremy Grantham of GMO LLC.
