EXHIBIT 99.1

PHILLIPS-VAN HEUSEN CORPORATION

200 MADISON AVENUE

NEW YORK, N.Y. 10016

 

FOR IMMEDIATE RELEASE:

December 10, 2004

Contact:  	Emanuel Chirico

			Executive Vice President & Chief Financial Officer

			(212) 381-3503

			www.pvh.com

 

PHILLIPS-VAN HEUSEN COMPLETES ARROW ACQUISITION

NEW YORK, NEW YORK  (December 10, 2004) -- Phillips-Van Heusen Corporation (NYSE: PVH) announced that it completed its previously announcedacquisition of the Arrow brand worldwide and the related licensing business from affiliates of Cluett American Group, Inc.  The purchase pricewas approximately $70 million.  The transaction is expected to be accretive to earnings in 2005.

PVH will continue to operate the men's Arrow dress shirt and sportswear businesses in the United States.  These businesses,which the company had been licensing since 2000, have grown to approximately $160 - $170 million in annual sales volume for PVH.

Bruce J. Klatsky, Chairman and Chief Executive Officer of Phillips-Van Heusen Corporation stated, "The performance of our Arrowbusinesses have exceeded our expectations and we believe that a significant opportunity for expansion and growth exists both in the U.S. andinternationally based on our experience. By acquiring the global rights to the Arrow brand, we have the ability to invest significantly inmarketing and advertising and pursue these opportunities."

Phillips-Van Heusen Corporation is one of the world's largest apparel companies.  It owns and markets the Calvin Klein brand worldwide.  Itis the world's largest shirt company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, Bass, G.H. Bass &Co. and, now, Arrow, and its licensed brands Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, BCBG Max Azria, BCBG Attitude,MICHAEL Michael Kors, Sean Jean and Chaps.

 

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-lookingstatements in this press release, including, without limitation, statements relating to the Company's future revenues and earnings, plans,strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities LitigationReform Act of 1995.  Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many ofwhich cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) theCompany's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii)the levels of sales of the Company's apparel and related products, both to its wholesale customers and in its retail stores, and the levels ofsales of the Company's licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company and itslicensees are required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions intravel, fashion trends and other factors;  (iii) the Company's plans and results of operations will be affected by the Company's ability tomanage its growth and inventory, including the Company's ability to realize revenue growth from developing and growing Calvin Klein; (iv) theCompany's operations and results could be affected by quota restrictions (which, among other things, could limit the Company's ability toproduce products in cost-effective countries that have the labor and technical expertise needed), the availability and cost of raw materials(particularly petroleum-based synthetic fabrics, which are currently in high demand), the Company's ability to adjust timely to changes intrade regulations and the migration and development of manufacturers (which can affect where the Company's products can best be produced), andcivil conflict, war or terrorist acts, the threat of any of the foregoing or political and labor instability in the United States or any of thecountries where the Company's products are or are planned to be produced; (v) disease epidemics and health related concerns, which could resultin closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in infected areas; (vi)acquisitions and issues arising with acquisitions and proposed transactions, including without limitation, the ability to integrate an acquiredentity into the Company with no substantial adverse affect on the acquired entity's or the Company's existing operations, employeerelationships, vendor relationships, customer relationships or financial performance; (vii) the failure of the Company's licensees to marketsuccessfully licensed products or to preserve the value of the Company's brands, or their misuse of the Company's brands and (viii) other risksand uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimateregarding revenues or earnings, whether as a result of the receipt of new information, future events or otherwise.