Phillips-Van Heusen Corporation reported second quarter net income of $9.0 million, or $0.13 per diluted common share after preferred dividends. Excluding integration costs associated with the acquisition of Calvin Klein and a one-time gain from the Company's sale of its investment in Gant, net income in the current year's second quarter was $11.6 million, or $0.21 per diluted common share after preferred dividends, which is in line with the Company's previous earnings guidance. In the prior year's second quarter, net income was $7.9 million, or $0.28 per diluted common share.

For the six months, net income in the current year was $6.8 million, resulting in a net loss of $0.09 per diluted common share after preferred dividends. Excluding Calvin Klein integration costs and the Gant gain, net income for the six months improved to $19.4 million, or $0.32 per diluted common share after preferred dividends, in the current year from net income of $7.0 million, or $0.25 per diluted common share, in the prior year.

The after-tax integration costs associated with the Calvin Klein acquisition were $4.1 million, or $0.13 per share, and $14.1 million, or $0.46 per share, in the quarter and six months ended August 3, 2003, respectively. Such costs consist of (i) the operating losses of certain Calvin Klein businesses which the Company will close or license, and associated costs in connection therewith, and (ii) the costs of certain duplicative personnel and facilities during the integration of various logistical and back office functions. During the current quarter, the Company sold its minority interest in Gant

-1-

Company AB for $17.2 million, after related fees and expenses, which resulted in a one-time after-tax gain of $1.5 million, or $0.05 per share. (Please see Consolidated Income Statements below for a reconciliation of GAAP amounts to non-GAAP financial measures.)

The improvement in second quarter net income, excluding Calvin Klein integration costs and the Gant gain, was primarily due to $11.0 million of operating earnings associated with the Calvin Klein Licensing segment. These earnings were partially offset by a $4.2 million increase in interest expense associated with financing the Calvin Klein acquisition.

The decrease in net income per diluted common share in the second quarter, excluding Calvin Klein integration costs and the Gant gain, was due to $5.1 million of dividends on the Company's convertible preferred stock and an increase in average common shares outstanding. The convertible preferred stock and additional common stock were both issued in connection with the Calvin Klein acquisition.

Total revenues in the second quarter increased 14% to $377.1 million from $331.2 million in the prior year. For the six month period, total revenues were $754.1 million in the current year, an increase of 11% over the prior year amount of $680.6 million. These increases were due principally to the addition of royalty revenues generated by the Calvin Klein Licensing segment, as well as increases in the Company's wholesale apparel businesses, particularly Izod, Van Heusen and Arrow. These increases were partially offset by sales declines in the Company's retail businesses.

-2-

Commenting on these results, Bruce J. Klatsky, Chairman and Chief Executive Officer, noted that "Despite the continuing difficult retail environment, we are pleased with our second quarter results, which were in line with previous guidance. The strong performance of our Calvin Klein and wholesale apparel businesses continued to help minimize the earnings decline in our retail divisions which suffered from negative comp store sales and higher promotional selling."

Mr. Klatsky continued, "The integration of the Calvin Klein operations, as well as the goals we set for the brand, continue to proceed on plan. We are extremely pleased with our recently announced licensing agreement with the joint venture formed by the Kellwood Company for the development of a better women's sportswear line that will launch as early as Spring 2004. In addition, we remain on target to launch a better men's sportswear line in early Fall 2004."

Mr. Klatsky further stated, "Given the very difficult retail environment, we are cautiously holding our 2003 earnings per share estimate of $0.95 to $1.00 after preferred dividends, which excludes Calvin Klein integration costs and the Gant gain. Including Calvin Klein integration costs and the Gant gain, we estimate that GAAP earnings per share will be in the range of $0.30 to $0.35 after preferred dividends. In order to achieve our earnings estimates, we are anticipating an improvement in our retail businesses in the second half of the year, as we leave the largely tourist and vacation driven selling period and enter the Fall and Holiday selling seasons." (Please see Supplementary Fiscal 2003 Earnings Guidance below for more details.)

-3-

-5-

-6-

-7-

1) The after-tax integration costs associated with the Calvin Klein acquisition were $4.1 million, or $0.13 per share, and $14.1 million, or $0.46 per share, in the quarter and six months ended August 3, 2003. Such costs consist of (i) the operating results of certain Calvin Klein businesses which the Company will close or license, and associated costs in connection therewith, and (ii) the costs of certain duplicative personnel and facilities during the integration of various logistical and back office functions. During the second quarter, the Company sold its minority interest in Gant Company AB for $17.2 million, after related fees and expenses, which resulted in a one- time after-tax gain of $1.5 million, or $0.05 per share.

The Company believes presenting its results excluding Calvin Klein integration costs and the Gant gain provides useful information to investors because many investors make decisions based on the ongoing operations of an enterprise. Investors often believe that ongoing operations provide the best measure of assessing performance and provide a more meaningful basis to compare against future results. The Company uses its results excluding Calvin Klein integration costs and the Gant gain to discuss its business with investment institutions, the Company's Board of Directors and others. Such results are also the basis for certain incentive compensation calculations.

2) The Company uses EBITDA to discuss its business with investment institutions, the Company's Board of Directors, lenders and others. EBITDA is provided because it is an important measure of financial performance commonly used to determine the value of companies and to define standards for borrowing from institutional lenders. We have presented EBITDA to enhance your understanding of our operating results. EBITDA represents net income before interest expense, income taxes, depreciation and amortization.

As of August 3, 2003, receivables and inventories include $27,870 and $9,384, respectively, related to the Calvin Klein businesses.

-9-

Please see note #1 to the Consolidated Income Statements for a description of the Calvin Klein integration costs and Gant gain.

Corporate expenses under GAAP are net of the $3,496 pre-tax Gant gain.

Please see note #1 to the Consolidated Income Statements for a description of the Calvin Klein integration costs and Gant gain.

Corporate expenses under GAAP are net of the $3,496 pre-tax Gant gain.

-12-