The Company notes that the results cited above include approximately two months of operations of the Calvin Klein Jeans and related businesses in Europe and Asia (the "CKJEA Business"), which were acquired on January 31, 2006.
For the two month period, net revenues from the CKJEA Business were $60.4 million and operating income was $6.1 million.
"The strong performance of our Intimate Apparel Group and international businesses, including our newly acquired International Calvin Klein businesses, was overshadowed by a disappointing first quarter for our Swimwear Group, where disruptions caused by the implementation of a new systems infrastructure negatively affected shipping in the quarter, resulting in sales declines year over year and additional expense.
The quarter was also negatively impacted by the effects of retail consolidation and a significant timing shift in certain sportswear sales from the first half of this year into the latter half of this year," said Joe Gromek, Warnaco's President and Chief Executive Officer.
The Warnaco Group Inc, headquartered in New York, is a leading apparel company engaged in the business of designing, marketing and selling intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear and accessories.