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Warnaco Cites 5% Revenue Drop In 3Q

(Filed Under Financial and General Interest News). For the third quarter ended October 2nd, 2009, The Warnaco Group Inc. (Warnaco) cited a total decrease in net revenue of 5 percent. These better-than-expected results were due to a 6 percent increase in International revenues, which accounted for 61 percent total revenues, and partially offset a 10 percent drop in domestic net revenue. According to Reuters, Warnaco generates more than half of its revenue from the international market, which has helped to cushion the company from the domestic downturn. The company attributed much of its international revenue growth to the continued expansion of its Calvin Klein brand worldwide, particularly in Europe, China and South America.

The company cited net revenue drops for all three of its business segments, consisting of Intimate Apparel, Swimwear and Sportwear. The segments were down 11 percent, 4.6 percent and 1.1 percent, respectively. It raised its guidance for fiscal 2009, now predicting that net revenues for the year will decline 3 to 5 percent, and constant dollar net revenues will increase 1 to 2 percent.

The Warnaco Group, Inc. designs, sources, manufacturers, licenses and distributes intimate apparel, swimwear and sportswear under brand names including Calvin Klein, Olga, Speedo, Chaps and Warner’s. For further information, contact Deborah Abraham, vice president of investor relations with the company: (212) 287-8289.

more Financial and General Interest News >>

Published 11-04-2009 by Amanda Torres Price

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