(Filed Under Financial and General Interest News). Warnaco Group Inc. announced on November 19th at a Morgan Stanley conference that it will cut its corporate staff by seven percent.
Due to a weakened economy, Joe Gromek, CEO of Warnaco, said "we will control the things that we can control. We will align our costs to reflect the current economic conditions."
Aside from the staff cuts, Gromek also confirmed that the company will reduce its capital expenditures by 20 percent and will eliminate $40 million in spending. It does, though, still have plans to add 100,000 square feet of retail selling space for its Calvin Klein business in 2009. "Calvin Klein is the growth engine for Warnaco," said Gromek. The Calvin Klein business represents nearly 70 percent of the company's estimated $2 billion in sales.
On Wednesday, November 19th, Warnaco shares fell 14 percent and closed at $13.29 on the New York Stock Exchange.
According to the company, Warnaco is a "global apparel leader which designs, sources, markets, licenses and distributes a broad line of intimate apparel, sportswear and swimwear worldwide." The company's brands include Speedo, Chaps, Warner's and Olga. The products are sold in over 100 countries throughout the world.
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