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Warnaco acquires Italian franchise operations
05 Oct '10
2 min read
The Warnaco Group, Inc. announced that it acquired twenty-two Calvin Klein Jeans retail stores and related assets from its largest Italian franchise partner, L'Innominato S.p.A, a part of the Percassi Group.
These stores, which are located in leading shopping centers across Italy, are expected to generate approximately EUR 28 million, or $38 million at current exchange rates, in revenues in fiscal 2011 and add over 50,000 square feet of new retail space to the Company's owned portfolio. Based on revenues, this transaction will establish Italy as the Company's largest retail market in Europe, with fifty-eight directly operated stores.
The Company expects the transaction to be accretive to operating earnings in fiscal 2011.
"This acquisition is consistent with our global growth strategies to expand our profitable international business and our direct to consumer footprint. Italy is one of our largest markets outside the United States and we are delighted to expand our direct operations and revenues in this key market," commented Joe Gromek, Warnaco's President and Chief Executive Officer.
"This transaction will generate a strong return on investment, and will enable us to leverage our regional and country platform and infrastructure as well as our full complement of products and marketing to maximize sales and profits."
The Warnaco Group, Inc., headquartered in New York, is a leading global apparel company engaged in the business of designing, sourcing, marketing and selling men's, women's and children's sportswear and accessories, intimate apparel, and swimwear under such owned and licensed brands as Calvin Klein, Speedo, Chaps, and Warner's and Olga.
These stores, which are located in leading shopping centers across Italy, are expected to generate approximately EUR 28 million, or $38 million at current exchange rates, in revenues in fiscal 2011 and add over 50,000 square feet of new retail space to the Company's owned portfolio. Based on revenues, this transaction will establish Italy as the Company's largest retail market in Europe, with fifty-eight directly operated stores.
The Company expects the transaction to be accretive to operating earnings in fiscal 2011.
"This acquisition is consistent with our global growth strategies to expand our profitable international business and our direct to consumer footprint. Italy is one of our largest markets outside the United States and we are delighted to expand our direct operations and revenues in this key market," commented Joe Gromek, Warnaco's President and Chief Executive Officer.
"This transaction will generate a strong return on investment, and will enable us to leverage our regional and country platform and infrastructure as well as our full complement of products and marketing to maximize sales and profits."
The Warnaco Group, Inc., headquartered in New York, is a leading global apparel company engaged in the business of designing, sourcing, marketing and selling men's, women's and children's sportswear and accessories, intimate apparel, and swimwear under such owned and licensed brands as Calvin Klein, Speedo, Chaps, and Warner's and Olga.
Warnaco Group Inc
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