Phillips-Van Heusen will shutter Geoffrey Beene stores

Apparel maker Phillips-Van Heusen Corp. on Wednesday said it will not renew its license agreements to operate Geoffrey Beene outlet retail stores.

The company said it will close its Geoffrey Beene outlet retail division by the end of fiscal 2008.

The expiration of the retail license agreement does not affect the company's license agreement for Geoffrey Beene brand dress shirts and men's sportswear. That license has been renewed for a term ending Dec. 31, 2013.

About 25 of the 100 Geoffrey Beene stores will be converted to Calvin Klein outlet retail stores.

Phillips-Van Heusen expects tax charges of about $15 million, or 29 cents per share, recorded over the rest of the year, related to asset impairments, severance, inventory markdowns and lease-exit costs.

The New York company also reaffirmed 2008 earnings guidance of $3.32 to $3.41 per share, excluding costs associated with the Geoffrey Beene exit costs. Including those costs the company expects earnings of $3.03 to $3.12.

Analysts polled by Thomson Financial, on average, predict a profit of $3.36 per share. Analyst estimates typically exclude one-time items.

The company could not immediately be reached about the number of staff that will be cut, but said in a statement they are working to place as many Geoffrey Beene workers as possible into positions within other operating units.

Shares rose $1.04, or 2.3 percent, to $45.58 during morning trading.