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Warnaco reports steep rise in Q2 revenues

10 Aug '05

6 min read

New York based apparel firm The Warnaco Group Inc reported results for the second quarter ended July 2, 2005.

"The solid second quarter results reflect the continued success of their diversified portfolio of leading brands, the breadth of their channels of distribution and their continued global expansion," said Joe Gromek, Warnaco's President and Chief Executive Officer. "During the quarter they advanced several of their key initiatives for the year and delivered substantial increases in both net revenues and net income, led by strong results from Chaps and Calvin Klein jeans.”

They also saw market share growth in several of their brands, in each of their three operating groups. They are pleased with their overall performance in the quarter, especially given the challenging swimwear season which negatively affected the Swimwear Group's results.

Second Quarter Highlights
Net revenues increased to $374.7 million for the second quarter of fiscal 2005, compared to $332.1 million for the second quarter of fiscal 2004. Strength in the Company's Sportswear Group and Intimate Apparel Group revenues more than offset a slight decline in revenues in the Swimwear Group.

The Sportswear Group continued its strong performance from the first quarter, achieving revenue growth over the prior year quarter of over 30 percent, led by Chaps with growth in excess of 55 percent and continued positive momentum in Calvin Klein jeans.

The Intimate Apparel Group delivered an 11.7 percent increase in net revenues over the prior year quarter, reflecting favorable consumer response to the Group's latest product offerings. Swimwear Group revenues declined slightly compared to the prior year quarter, primarily due to unfavorable weather conditions which resulted in a decline in shipments. The increase in net revenues for the second quarter of fiscal 2005 includes approximately $4.1 million related to the translation of foreign currencies, primarily as a result of a stronger euro and Canadian dollar relative to the second quarter of fiscal 2004.

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