NEW YORK – Clothing company Phillips-Van Heusen Corp. raised its fiscal first-quarter and full-year earnings forecast Tuesday and said it will sell stock and bonds to finance its proposed $3 billion acquisition of the Tommy Hilfiger brand.
The company now expects earnings of 80 cents per share in its fiscal first quarter ending in April, up from a previous forecast of 73 cents to 75 cents. The estimate excludes one-time expenses related to the Tommy Hilfiger acquisition as well as any contribution from Tommy Hilfiger.
Analysts surveyed by Thomson Reuters project profit of 74 cents per share.
Phillips-Van Heusen expects first-quarter revenue of $605 million to $610 million, above analysts' projection of $586.9 million.
The company said its updated guidance reflects a stronger-than-expected performance across all of its businesses.
It projected adjusted earnings for the full year of $3.25 to $3.33 per share, up from a prior forecast of $3.20 to $3.28. The company predicts full-year revenue of $2.49 billion to $2.51 billion.
The company also announced that it will sell 4.5 million shares and $525 million in 10-year bonds.
Along with financing a portion of the Tommy Hilfiger acquisition, Phillips-Van Heusen said it will use the proceeds to buy back $300 million of notes coming due in 2011 and 2013.
The company's stock fell 41 cents to close at $62.43.
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