(Filed Under Fashion News). Martha Olson, president of Calvin Klein Underwear in the U.S. and core brands at Warnaco, held a presentation on March 30th for Professor Alice Papazian’s class at Fashion Institute of Technology (FIT). During her presentation, Olson discussed where Warnaco’s core brands and licenses are at from an economic standpoint, a new Warner’s launch and more.

The company’s history dates back to 1874 and is held responsible for the introduction of cup sizes to the intimate apparel industry, said Olson. Warner’s, one of the company’s core brands, launched the Alphabet Bra in 1935, which corresponded to the letters of the alphabet resulting in the use of cup sizes in bras across the board. “Every competitor quickly adapted that [and] the rest is history,” said Olson.

Joining Warnaco in 2004, Olson is now responsible for all aspects of the company’s intimate apparel business in the U.S. following a promotion in September 2008.

Warnaco, which employs approximately 5,000 people worldwide with offices in New York, Toronto, Mexico City, London, Paris, Madrid, Milan, Florence, Dusseldorf, Hong Kong (where product development is done), Seoul, Shanghai and Buenos Aires, operates a portfolio of owned and licensed brands including, Warner’s, Olga, Olga’s Christina, Body by Nancy Ganz as well as Speedo, Chaps and Calvin Klein underwear, swimwear, jeans, accessories and bridge apparel.

Phillips-Van Heusen owns Calvin Klein, but Warnaco owns the underwear license and “can’t ever lose it,” said Olson.

Even though she said: “Our intimate apparel brands continue to perform well in the chains,” it is evident that Calvin Klein’s dual gender product is the true moneymaker for Warnaco.

Warnaco reported $2.1 billion in net revenues at the end of fiscal 2008 and during the same time, Calvin Klein’s worldwide distribution generated $546 million in net revenues, while the company’s core brands generated $156 million.

Warnaco’s intimate apparel segment accounted for 34 percent of the $2.1 billion figure, while sportswear and swimwear represented 53 percent and 13 percent, respectively.

Warnaco has a diverse distribution model, spanning department and specialty stores, chains, membership clubs and mass merchandisers. In 2008, international revenues accounted for 54 percent of total company revenues. Additionally, ending the year with more than 900 points of direct-to-consumer distribution, retail revenues represented 21 percent of total net revenues.

Notwithstanding the challenging economic environment, Olson said Warnaco’s key goals have remain unchanged – maximize profitability and sales by leveraging its business and brands through growth of the Calvin Klein business; geographic expansion and further development of its direct-to-consumer channel, including e-commerce.

At the end of 2008, Calvin Klein underwear had just under 500 points of retail distribution, including free standing stores and concessions, with one U.S. location in Soho.

“The economy put a break in some of expansion,” said Olson regarding whether the company would add additional locations in the U.S. “[But], the goal is to double where we are at [with Calvin Klein] today.” Double, means the Calvin Klein business would surpass the $1 billion mark.

In this tough economic climate, Olson admits Warnaco has had to be “more cautious, [but] we’re not introducing fewer bras, fewer briefs, etc.” Adding: “if there’s nothing interesting to buy [the consumer] won’t buy it.” A main goal for the company is to “increase market shares through product innovation,” she said.

In fact, this past December, Warnaco launched a new bra strap technology under its Invisible Bliss line of bras for the Warner’s brand. The straps, which lack a buckle and are entirely self-adjusting, were designed by Don Allen, the company’s vice president of design for core brands and “an amazing talent,” said Olson.

The new straps, which are featured on two bra styles (a wireless and a wired) have the “right stretch and recovery,” allowing it to adapt to a woman’s body without the use of the buckle. The new design has been “an unbelievable success for business,” said Olson. Adding: “We will always invest in the product.”

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Published 04-07-2009 by Bruna Fernandes