December 2, 2010 / 9:37 PM / 9 years ago

UPDATE 2-Phillips-Van Heusen ups year outlook, 4th-qtr light

* Q3 adjusted EPS $1.55 vs Street’s view for $1.43

* Q3 revenue $1.52 billion, helped by Tommy

* Raises 2010 adjusted EPS range to $3.90 to $3.95

* High end of Q4 profit forecast meets Street’s view (Adds advertising details)

SAN FRANCISCO, Dec 2 (Reuters) - Phillips-Van Heusen (PVH.N) on Thursday beat Wall Street profit expectations and for the second time in the past two quarters raised its full-year profit outlook.

But the high end of the company’s fourth-quarter outlook just met analysts’ expectations, suggesting caution over the holiday sales.

Retail experts expect this shopping season to be driven by discounts. Phillips-Van Heusen said it would spend an extra $10 million on advertising in the holiday quarter.

The company, which owns the Calvin Klein and Tommy Hilfiger brands, said it now expects 2010 adjusted earnings of $3.90 to $3.95, which excludes costs associated with its acquisition of Tommy Hilfiger earlier this year.

Wall Street had been expecting earnings of $3.82 for the full year.

Revenue is expected to grow to $4.61 billion compared with the $4.47 billion expected by Wall Street.

For the fourth quarter, the company said it expects adjusted earnings of 76 cents to 81 cents per share, and 63 cents to 68 cents per share on a net basis. It expects revenue of about $1.37 billion.

Analysts, on average, had been expecting fourth-quarter earnings of 81 cents per share and revenue of $1.31 billion.

On Thursday, the company reported third-quarter net income of $80.7 million, or $1.12 per share, compared with $83.6 million, or $1.58 per share, a year earlier.

Excluding costs associated with the Hilfiger deal, earnings were $1.55 per share.

Analysts, on average, had been expecting earnings of $1.43 per share, according to Thomson Reuters I/B/E/S.

Revenue rose to $1.52 billion from $697.4 million a year earlier, helped by Hilfiger, which generated $708.4 million in revenue. The Calvin Klein business rose 16 percent to $272.6 million.

The company’s shares declined to $70.78 after hours, after closing up 1.7 percent at $71.23 on the New York Stock Exchange. (Reporting by Alexandria Sage; Editing by Richard Chang)

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