Warnaco delivers strong results throughout fiscal 2007

27 Feb '08

3 min read

• Net revenues were $1.8 billion, up 13% over the prior year
• Gross margin increased 330 basis points to 42% of net revenues from the prior year
• Operating income increased 42% to $167.4 million and operating margin increased 190 basis points to over 9% of net revenues
• Income per diluted share from continuing operations increased 63% to $2.26 compared to $1.39 in the prior year

The Company believes it is valuable for users of the Company's financial statements to be made aware of the adjusted financial information, as such measures are used by management to evaluate the operating performance of the Company's continuing businesses on a comparable basis.

The accompanying tables provide a reconciliation of actual results to the adjusted results.

Joe Gromek, Warnaco's President and Chief Executive Officer, commented, "We delivered strong results throughout fiscal 2007. Not only did we achieve significant revenue and earnings per share growth during the year, we also strategically positioned the Company to maximize our global growth opportunities in 2008 and beyond.

In particular, we believe that our efforts to rationalize our portfolio will allow us to focus resources on our higher margin businesses, and capitalize on expansion opportunities on a global basis.

We believe this is most apparent in our Calvin Klein businesses, where we have added categories and channels (including new direct to consumer initiatives) to our existing portfolio to support our continued growth."

Mr. Gromek concluded, "We are off to a good start in 2008, and while no one is immune to macroeconomic trends, we believe our global business model and channel diversity will continue to differentiate us from our industry peers and will enable us to drive profitable growth and advance shareholder value in the near and long term."

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