Phillips-Van Heusen to close Geoffrey Beene retail division

BOSTON (Thomson Financial) - Shares of Phillips-Van Heusen Corp. rose Wednesday after the New York-based apparel maker said it has decided not to renew its license agreements to operate Geoffrey Beene outlet retail stores and will close its Geoffrey Beene outlet retail division by the end of fiscal 2008.

The stock was up 1.6% at $45.29 on volume of 190,154 shares.

Phillips-Van Heusen said it expects to record after-tax charges of about $15 million, or 29 cents per share, which will be recognized over the balance of 2008.

The company continues to project 2008 earnings of $3.32 to $3.41 a share, excluding the exit costs. Analysts polled by Thomson Reuters, on average, estimate 2008 earnings of $4.17 a share.

The Geoffrey Beene outlet retail division, which currently operates about 100 stores, is expected to complete its liquidation by the end of fiscal 2008.

About 25 stores will be converted to Calvin Klein outlet retail stores, with the remaining stores being exited, Phillips-Van Heusen said.

Source: CNBC