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Calvin Klein Jeans revenue growth remains strong at Warnaco
08 Aug '08
5 min read
Income from continuing operations was $26.5 million, or $0.57 per diluted share, compared to $21.6 million, or $0.46 per diluted share, in the prior year quarter. Income from continuing operations for the second quarter of 2008 and 2007 includes approximately $6.0 million and $3.2 million, respectively, of pre-tax restructuring expense (the second quarter of 2007 also benefited from $6.3 million of other income related primarily to net gains on intercompany loans denominated in currency other than that of the foreign subsidiaries' functional currency). Net income was $19.4 million, or $0.41 per diluted share, compared to $13.8 million, or $0.30 per diluted share, in the prior year quarter.
On an adjusted, non-GAAP basis (excluding certain tax items, restructuring expenses and pension income), income from continuing operations was $33.4 million, or $0.71 per diluted share, compared to $21.4 million, or $0.46 per diluted share, in the prior year period. Net income was $26.3 million, or $0.56 per diluted share, compared to $13.6 million, or $0.29 per diluted share, in the prior year quarter.
The translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar, increased second quarter 2008 net revenues, gross margin and operating income by approximately $17.0 million, $8.1 million and $2.0 million, respectively, compared to the second quarter of fiscal 2007.
The Company's adjusted non-GAAP effective tax rate (excluding certain non-recurring items, the non-cash tax charge associated with the repatriation of the proceeds from the sale of Lejaby, and certain restructuring expenses for which there was no tax benefit) in the quarter was 32% compared to an adjusted rate of 26% in the first quarter. The increased rate reflects additional tax expense to attain the Company's anticipated annualized non-GAAP effective tax rate of 29% (compared to an annualized non-GAAP effective tax rate of 25% in fiscal 2007).
Segment Results:
Sportswear:
Revenues for the Sportswear Group increased 29% to $249.4 million and operating income increased to $23.0 million, or 9% of net revenues. Calvin Klein Jeans revenue growth remained strong and included double digit increases in all geographies. Operating income reflects sharp improvements in Chaps operating profit, resulting from improved product offerings and lower dilution, combined with continued strength in the Calvin Klein Jeans businesses.
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On an adjusted, non-GAAP basis (excluding certain tax items, restructuring expenses and pension income), income from continuing operations was $33.4 million, or $0.71 per diluted share, compared to $21.4 million, or $0.46 per diluted share, in the prior year period. Net income was $26.3 million, or $0.56 per diluted share, compared to $13.6 million, or $0.29 per diluted share, in the prior year quarter.
The translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar, increased second quarter 2008 net revenues, gross margin and operating income by approximately $17.0 million, $8.1 million and $2.0 million, respectively, compared to the second quarter of fiscal 2007.
The Company's adjusted non-GAAP effective tax rate (excluding certain non-recurring items, the non-cash tax charge associated with the repatriation of the proceeds from the sale of Lejaby, and certain restructuring expenses for which there was no tax benefit) in the quarter was 32% compared to an adjusted rate of 26% in the first quarter. The increased rate reflects additional tax expense to attain the Company's anticipated annualized non-GAAP effective tax rate of 29% (compared to an annualized non-GAAP effective tax rate of 25% in fiscal 2007).
Segment Results:
Sportswear:
Revenues for the Sportswear Group increased 29% to $249.4 million and operating income increased to $23.0 million, or 9% of net revenues. Calvin Klein Jeans revenue growth remained strong and included double digit increases in all geographies. Operating income reflects sharp improvements in Chaps operating profit, resulting from improved product offerings and lower dilution, combined with continued strength in the Calvin Klein Jeans businesses.
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Warnaco Group Inc
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