Designer Holdings reports record third quarter and nine months results.NEW YORK--(BUSINESS WIRE)--October 28, 1996--Designer Holdings Ltd. (NYSE NYSE See: New York Stock Exchange :DSH DSH Disproportionate Share Hospital DSH Domestic Short Hair (cat) DSH Deliberate Self-Harm DSH Desperately Seeking Help (USENET) DSH Dyschromatosis Symmetrica Hereditaria ) today announced financial results for the third quarter and nine months ended Sept. 30, 1996. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter rose 53.7% to $136.9 million, from $89.0 million in the third quarter of 1995. Pro forma net income increased 93.9% to $11.3 million, or $0.35 per share, compared to $5.8 million, or $0.18 per share. For the nine months ended Sept. 30, 1996, pro forma net sales reached $356.5 million, a 68.5% increase versus $211.5 million in the comparable period last year. Pro forma net income increased 100.3% to $24.7 million, or $0.76 per share, compared to $12.3 million, or $0.38 per share in the first nine months of 1995. Arnold Simon, chief executive officer and president commented, "We are pleased to report record results, which reflect excellent sales across all of our divisions and throughout the country. Our basic business remains strong and the exceptional performance of our fashion products, combined with our improved distribution efficiencies, resulted in higher gross margins for the period. Clearly, the appeal of the Calvin Klein Noun 1. Calvin Klein - United States fashion designer noted for understated fashions (born in 1942) Calvin Richard Klein, Klein brand name and image remains high and is continuing to generate momentum for the Company." Simon continued, "Our shop-in-shop program continues to meet with strong acceptance among both our department store customers and the consumer. During the quarter, we opened 70 shop-in-shops and we expect to have approximately 150 by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . This strategy has led to substantial productivity improvements, with sales per square foot up significantly since we implemented this program in the Summer of 1996. Our plans call for an additional 200 Calvin Klein shop-in-shops in fiscal 1997 and based on the exceptional demand for these shops, we plan to open approximately 200 annually over the next several years." "We intend to further leverage the success of this concept with the roll-out of a shop-in-shop program for our newly acquired DKNY DKNY Donna Karan New York Jeanswear business. We are planning for 200 openings in the second half of 1997 and approximately 250 in 1998. We are very excited about the potential of this new line which has received a very strong and enthusiastic reception from retailers. We believe the addition of this new brand significantly enhances our opportunities for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth," concluded Simon. Designer Holdings Ltd. currently develops, sources and markets designer sportswear collections under the Calvin Klein Jeans, CK/Calvin Klein Klein , Melanie 1882-1960. Austrian-born British psychoanalyst who first introduced play therapy and was the first to use psychoanalysis to treat young children. Jeans, CK/Calvin Klein Jeans Khakis khak·i n. 1. A light olive brown to moderate or light yellowish brown. 2. a. A sturdy cloth of this color. b. khakis A uniform made of this cloth. and DKNY Jeanswear labels. Calvin Klein products for men, juniors, women and petites are distributed through a broad range of department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. and specialty retailers in the U.S. and DKNY products will be distributed worldwide. Certain statements contained herein are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods or plans for future periods to differ materially from what is currently anticipated. Those risks include, among others, general competitive factors and a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of retailer or consumer acceptance of the company's products. -0-
Designer Holdings Ltd.
Statement of Operations
(unaudited)
($ in thousands, except share data)
Pro Forma Results: Three Months Ended Nine Months Ended
9/30/96 9/30/95 9/30/96 9/30/95
Net revenues $ 136,884 $ 89,040 $356,487 $211,540
Gross Profit 52,488 33,527 135,570 78,788
Selling, general and
administrative expenses 30,099 20,905 85,371 52,780
Earnings from operations 22,389 12,622 50,199 26,008
Interest expense 1,527 1,177 4,432 1,443
Earnings before income
taxes 20,862 11,445 45,767 24,565
Income taxes 9,596 5,636 21,053 12,228
Net earnings 11,266 5,809 24,714 12,337
Net earnings per share $0.35 $0.18 $0.76 $0.38
Weighted average common
shares outstanding 32,477,222 32,159,334 32,376,017 32,159,334
Actual Results:
Earnings before
income taxes $ 20,862 $ 8,033 $ 41,224 $ 16,504
Income taxes 9,596 4,101 18,963 8,601
Net earnings before
extraordinary item 11,266 3,932 22,261 7,903
Extraordinary item -- -- 2,256 --
Net earnings 11,266 3,932 20,005 7,903
Net earnings per share
before extraordinary item $0.35 $0.16 $0.78 $0.33
Net earnings per share $0.35 $0.16 $0.70 $0.33
Weighted average common
shares outstanding 32,477,222 24,233,868 28,710,441 24,233,868
Supplemental Information:
Pro forma net revenues by
division
Mens $ 49,061 $ 30,774 $139,347 $ 91,940
Juniors 51,345 32,552 129,648 66,575
Womens and petites 33,313 23,155 81,578 49,229
Royalty income and other 3,165 2,559 5,914 3,796
Designer Holdings Ltd.
Condensed Consolidated Balance Sheets
($ in thousands)
(unaudited)
ASSETS Sept. 30, 1996 Sept. 30, 1995
Current assets:
Receivables, net $ 115,956 $ 100,437
Inventory 90,978 101,811
Other current assets 14,576 9,908
Total current assets 221,510 212,156
Property, plant and equipment, net 10,365 4,628
Other assets 119,337 47,339
Total assets $ 351,212 $ 264,123
Liabilities and Stockholders'
Equity
Current liabilities:
Current portion of long-term
debt $ 5,000 $ 5,000
Current portion of licensing
rights payable 23,013 --
Revolving credit loans 45,947 98,870
Other current liabilities 63,480 79,707
Total current liabilities 137,440 183,577
Long-term debt, less current portion 7,500 51,020
Licensing rights payable, less current
portion 24,724 --
Other liabilities 867 202
Total liabilities 170,531 234,799
Stockholders' equity 180,681 29,324
Total liabilities and
Stockholders' equity $351,212 $264,123
CONTACT: Designer Holdings Ltd., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Maurice Maurice, Byzantine emperor Maurice (môr`ĭs), c.539–602, Byzantine emperor (582–602). He was a successful general when, on his deathbed, Tiberius II, his father-in-law and the successor of Justin II, proclaimed him Dickson Dickson may refer to several placenames: Australia
or Investor: Morgen-Walke Associates Christine DiSanto/Jim Cappuccio, 212/850-5600 or Media Contact: Stacy Berns/Michael McMullan Morgen-Walke Associates 212/850-5600 |
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