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Calvin Klein owner Phillips-Van Heusen upgrades full year forecasts

New York based menswear giant Phillips-Van Heusen, owner of the Calvin Klein and Van Heusen brands, has reported second quarter figures which came in ahead of expectations.

The wholesaler and retailer, reported earnings of $26.6m in its second quarter, versus $29.2m the year before. Total net sales fell $529.3m from $561m.

Calvin Klein royalty revenue decreased 6% for the second quarter, impacted by the strong US dollar. On constant exchange rates royalty from Calvin Klein decreased 3%.

The group also improved its full-year forecasts. The retailer and wholesaler had previously forecast a 3% to 4% decline in total revenue for the 2009 year. It now forecast sales to drop only 2% to 3%.

The group forecast that royalty revenues at Calvin Klein will come in flat or down 2% for the year, as the negative impact from the stronger US dollar offsets a forecast global licensee royalty growth of 1% to 2% on a constant exchange rate basis.

The expected royalty growth includes a flat performance in jeans and underwear and strong increases in footwear, outerwear and women’s clothing.

Earlier in the year, Phillips-Van Heusen announced a cost-cutting plan that included axing 10% of its workforce, shutting production of machine-made neckwear and closing its Geoffrey Beene outlet stores.

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