Interviews
News Flash
'We are off to a strong start to the fourth quarter'- Warnaco Chief
09 Nov '09
2 min read
The Warnaco Group, Inc. reported results for the third quarter ended October 3, 2009.
For the third quarter:
• Net revenues were $520.9 million, down 5% from the prior year quarter.
• Net revenues, on a constant currency basis, fell less than 1% compared to the prior year quarter.
• Gross margin decreased 260 basis points to 44% of net revenues.
• Selling, general & administrative (SG&A) expense, as a percent of net revenues, declined 550 basis points to 32%.
• Operating income was $60.3 million, or 12% of net revenues, compared to $48.0 million, or 9% of net revenues, in the prior year quarter.
• Income per diluted share from continuing operations was $0.66 compared to $0.62 in the prior year quarter, and the Company's reported tax rate was 40% compared to 31% in the prior year quarter.
• Adjusted, non-GAAP income per diluted share from continuing operations (as detailed in the accompanying tables) was $0.75 compared to $0.72 for the prior year quarter.
• GAAP and non-GAAP income per diluted share from continuing operations were negatively affected by a $3.6 million charge, or $0.05 per diluted share, associated with inventory write-downs related to racing swimwear that has been banned from use in competition.
• Net inventories were down 11% and cash and cash equivalents were up $100 million on a year-over-year basis.
The accompanying tables provide a reconciliation of actual results to the as adjusted results.
“Our strong third quarter results, in the midst of a challenging environment, reflect the continuing positive contribution of our long-term growth initiatives,” stated Joe Gromek, Warnaco's President and Chief Executive Officer. “During the quarter, our global expansion of Calvin Klein® continued as total international revenues rose 6% in constant currency over the prior year quarter, accounting for 61% of our total revenues. Also, our direct-to-consumer initiative continued to advance as we opened 40 new points of distribution and remain on track to grow square footage by over 20%, or an additional 120,000 square feet, this year. Our growth at wholesale and retail, coupled with expense and inventory management across all channels, contributed to a 280 basis point increase in operating margin and adjusted income per share from continuing operations that surpassed the prior year quarter.”
Click here for more details.
For the third quarter:
• Net revenues were $520.9 million, down 5% from the prior year quarter.
• Net revenues, on a constant currency basis, fell less than 1% compared to the prior year quarter.
• Gross margin decreased 260 basis points to 44% of net revenues.
• Selling, general & administrative (SG&A) expense, as a percent of net revenues, declined 550 basis points to 32%.
• Operating income was $60.3 million, or 12% of net revenues, compared to $48.0 million, or 9% of net revenues, in the prior year quarter.
• Income per diluted share from continuing operations was $0.66 compared to $0.62 in the prior year quarter, and the Company's reported tax rate was 40% compared to 31% in the prior year quarter.
• Adjusted, non-GAAP income per diluted share from continuing operations (as detailed in the accompanying tables) was $0.75 compared to $0.72 for the prior year quarter.
• GAAP and non-GAAP income per diluted share from continuing operations were negatively affected by a $3.6 million charge, or $0.05 per diluted share, associated with inventory write-downs related to racing swimwear that has been banned from use in competition.
• Net inventories were down 11% and cash and cash equivalents were up $100 million on a year-over-year basis.
The accompanying tables provide a reconciliation of actual results to the as adjusted results.
“Our strong third quarter results, in the midst of a challenging environment, reflect the continuing positive contribution of our long-term growth initiatives,” stated Joe Gromek, Warnaco's President and Chief Executive Officer. “During the quarter, our global expansion of Calvin Klein® continued as total international revenues rose 6% in constant currency over the prior year quarter, accounting for 61% of our total revenues. Also, our direct-to-consumer initiative continued to advance as we opened 40 new points of distribution and remain on track to grow square footage by over 20%, or an additional 120,000 square feet, this year. Our growth at wholesale and retail, coupled with expense and inventory management across all channels, contributed to a 280 basis point increase in operating margin and adjusted income per share from continuing operations that surpassed the prior year quarter.”
Click here for more details.
Warnaco Group Inc
Popular News
Leave your Comments
Therese Premler-Andersson
Textile Machinery Association of Sweden (TMAS)
Anita Dongre & Yash Dongre
House of Anita Dongre Limited
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
