Warnaco Q2 Net Income Soars

by MR Magazine Staff

NEW YORK – Warnaco Group, Inc., the parent company of Calvin Klein jeans and underwear, and Chaps, is reporting net income of $13.8 million in the second quarter, or 30 cents per share, compared to the second quarter of 2006’s $3.4 million, or 7 cents per share, a year ago – a monumental gain. Net income per diluted share increased by 23 cents to 30 cents. The company is raising its full year outlook to reflect the higher than expected income.

“The results reported today reflect continued positive momentum in our business,” CEO Joe Gromek said in a press release. “Our worldwide Calvin Klein revenues were up more than 15% over the prior year, driving the improved results at both our Sportswear and Intimate Apparel Groups and more than offsetting the Swimwear Group’s declines. International revenues for the quarter represented 42% of our total business and our direct-to-consumer revenues were 17%, and were the key drivers of the 320 basis point increase in gross margin along with improvements in Chaps. We are pleased with these results, which led to a 33% improvement in operating income and a significant improvement in diluted earnings per share.”