Home / Knowledge / News / Apparel/Garments / Warnaco Q1 revenues decline 7%
Warnaco Q1 revenues decline 7%
May '12
The Warnaco Group Inc. reported results for the first quarter ended March 31, 2012.

First Quarter Highlights
Net revenues declined 7% compared to the prior year period to $615.5 million. Growth in the Company's Intimate Apparel segment was more than offset by declines in the Sportswear and Swimwear segments.

Net revenues in the Company's Calvin Klein businesses declined 7%, compared to the prior year period, primarily in Calvin Klein Jeans, which reflects planned reductions in value channel sales, the effects of macroeconomic challenges and our performance at retail.

Direct-to-consumer net revenues grew 7% (notwithstanding a decline in comparable store sales of approximately 2%), while wholesale net revenues fell 12%, which includes the anticipated reduction in Sportswear net revenues.

Gross margin decreased 110 basis points to 43% of net revenues, due primarily to product cost inflation and increased customer allowances. Gross profit decreased 9% compared to the prior year quarter to $267.5 million, while SG&A expense was down 4%, compared to the prior year quarter, to $212.6 million.

However, as a percentage of net revenues SG&A expense increased 90 basis points to 35% of net revenues, which reflects the expansion of the Company's direct-to-consumer business as a percentage of total Company net revenues and lower net revenues in the quarter.

Operating income was $52.2 million, a 25% decline compared to the prior year quarter. Income from continuing operations decreased to $32.9 million, or $0.78 per diluted share, compared to $44.5 million, or $0.98 per diluted share, in the prior year quarter. On an adjusted, non-GAAP basis (excluding costs related to restructuring expenses, pension expense and tax related items), income from continuing operations was $ 37.9 million, or $0.90 per diluted share, compared to $49.8 million, or $1.10 per diluted share, in the prior year period.

The effect of fluctuations in foreign currency exchange rates for the quarter compared to the prior year quarter resulted in a decrease in net revenues of approximately $7.6 million and an increase in income per diluted share from continuing operations of approximately $0.03.

An additional discussion regarding the effects of fluctuations in foreign currency exchange rates on operating results can be found in the Company's Form 10-Q, for the quarter ended March 31, 2012, which will be filed with the Securities and Exchange Commission.

Click here to read more details:

The Warnaco Group Inc

Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Textiles | On 27th Jun 2017

Barcelona’s Unitin develops recycled Indigo yarns

Unitin, a trademark of Industrias Morera SA and a leading textile...

Information Technology | On 27th Jun 2017

ThreadSol to bring fabric solutions to Thailand

ThreadSol, an enterprise material management provider for the sewn...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search