2008 Earnings Get in touch with Transcript Prior to we get rolling I just would like to remind you with the firm's Protected Calvin Klein Womens Boxer Harbor language. Some statements manufactured currently within the simply call are forward looking statements as assigned beneath the Federal Securities Rules. Ahead searching statements are subject to pitfalls, uncertainties and components which include things like, but are not restricted to reliance on licensed products, reliance on international suppliers, the character of the apparel marketplace, such as altering shopper demands and tastes, consumer focus, seasonality, buyer acceptance of recent items, the effect of aggressive products and pricing, dependence upon present management, also as business enterprise disruption from acquisitions and general financial situations, in addition as other threats in-depth inside the firm's filings together with the Securities and Trade Commission. The corporation assumes no obligation to update details on this get in touch with. Also, in the course of the call we will consult with EBITDA, a non GAAP number. We've got furnished a reconciliation of our EBITDA figures to our internet revenue based on GAAP in our push launch. Net revenue to the quarter were $75.4 million, effectively ahead of our forecasted net revenue of $50 million. We outperformed our forecast generally owing into the exceptional profits from our Calvin Klein and Jessica Howard dresses. Our web losses with the quarter of $6.nine million have been also far better than we predicted, with fantastic profitability within the costume business enterprise. Our internet loss for every share was flat for the yr back level at $0.forty two, significantly better than our direction for the quarter of a internet reduction between $0.37 and $0.fifty one for each share. Our get guide is in fine condition. We are now booked at about 75% to plan. In general, all of our corporations are tracking effectively suitable now, Calvin Klein, Kenneth Cole, Guess?, and also the sports activities organization are all on the lookout very well. Well we identify the tough tenor from the retail ecosystem, the toughness of our brand name along with the products we're delivering are incredibly significantly in desire while in the marketplace. I am also happy to convey which the integration process for Andrew Marc goes very well Calvin Klein Hip Briefs. We have removed about 20% on the headcount, we've closed the redundant to overseas office environment, techniques are converted, and our product enlargement technique is perfectly less than way. We carry on for being enthusiastic about the opportunity of this business to be a significant manufacturer inside a range of types effectively over and above outerwear. We've been actively pursuing some licensing preparations with the first expansion of your effort. Although we are not rather as a result of the process, we've a variety of that kind of partnership possibilities and also have excellent indications of guidance for these initiatives from essential shops with the brand. Thanks to the chance now we have with the Andrew Marc manufacturer, we're fired up to get buying the brand name this yr using a significant media presence for the fall time. We believe that our advertising initiatives are well timed, though creating price to the Andrew Marc outerwear business and can primary the marketplace for new types. In combination with a good expectation for what Andrew Marc will lead to our upcoming, we continue to be optimistic regarding the remainder of your calendar year. We're fortuitous for being aligned with some from the best brand names while in the marketplace. We're leveraging this with some continual products which we expect will engage in suitable into the prevailing manner trends, supplying the consumer a persuasive motive to invest in irrespective of the surroundings. We're also engaged on some big new houses to reinforce our core business enterprise mix. Our stability sheet continues to be sturdy and we continue on to possess a vote of self esteem from our banking group, which lately extended our available traces of credit to $250 million from $195. Our assets to money and powerful equilibrium sheet positions continue on to become an important strategic gain. We go on to evaluate our place alternatives that will support us mature the corporate and we are in a very sturdy situation to capitalize on what has starting to be a more favorable buyers sector. In spite of our optimism, as you know we often run our organization fairly conservatively. This has established repeatedly to have been the ideal strategy. We have seen some pretty difficult environments in the last few of fall holiday seasons and we've attained very good expansion irrespective of this. Like everyone else during the marketplace, we are likely to be functioning from pressures in the market place which contain a generally hesitant buyer along with the boost in prices. We're at ease that once once again this calendar year we've an opportunity to produce a major notch products from the variety of strong makes and to demonstrate considerable advancement the two within the top and base line. I will now flip the call more than to Neal Nackman, our Main Money Officer to overview the quarter and supply you some aspects on our assistance. 1st with respect to our initially quarter's benefits: Net sales for that quarter finished April thirty, 2008 were $75.four million, in contrast to $35.one million inside the year in the past very first quarter. Our initially quarter ongoing to get our lowest product sales quarter; on the other hand we did see great will increase in sales this quarter, primarily the end result of non outerwear income in the two our licensed and non accredited segments. Increases in revenue of certified attire were largely the result of elevated revenue in Calvin Klein dresses, though the non licenses attire increased monthly from gross sales while in the Jessica Howard and Eliza Jane dresses. The Jessica Howard acquisition occurred during the 2nd quarter of past year and accordingly their economic outcomes aren't integrated in our first quarter's success last calendar year. We had a web lack of $6.9 million for your quarter or $0.forty two for every share, in comparison to the net loss of $6.4 million or $0.42 per share from the yr in the past quarter. As Morris pointed out earlier, these losses ended up drastically less than we forecasted. We anticipated much larger losses from the acquisition of Andrew Marc on February eleven 2008 which is not expected to deliver earnings for us, until finally the third fiscal quarter of this year. Though launch incurred in the Andrew Marc small business was as anticipated, a lot of this progress was offset through the solid general performance of our costume companies. Gross margin percentage enhanced around the quarter to 23.3% from twenty.9% to the prior year's quarter, generally the result of higher margins attained from just product sales. SG expenses enhanced to $27.2 million from $16.five million the 12 months in the past quarter. This enhance is principally attributable into the expense associated with the obtained Andrew Marc and Jessica Howard businesses also to a a lot lesser extent expenditure will increase involved together with the Calvin Klein gown small business. Now turning to steering: we've been expecting entire calendar year profits to generally be inside the choice of about $650 to $660 million or a rise of 25% to 27% when compared towards the prior yr; EBITDA to generally be while in the array of $50 to $51.five million which might final result within an raise of 32% to 36% over the prior year and net profits for every diluted share for being within the number of $1.twenty five to $1.thirty for every share or an increase of 19% to 24% about the prior 12 months. Relating to the second quarter, we have been anticipating gross sales of roughly $100 million this yr in comparison to $84 million while in the equivalent interval inside the prior yr along with a web lack of somewhere around $3.six million or $0 Calvin Klein Underwear Women.22 for every share compared to your loss of $884,000 or $0.05 for each share in the prior 12 months Calvin Klein Womens Underwear. The rise in our web loss is principally attributable into the impact of an Andrew Marc acquisition which I had talked about earlier as being a [indiscernible] identical to the rest of our core outerwear enterprise. That concludes my time and that i will my time and i will now transform the call back to Morris for closing remarks. We've not been breaking it out at that amount. We have spoken about our total outerwear company for your 12 months staying 80% and that will probably be regular again. Needless to say the initial quarter was additional drastically attire during the to start with quarter.