Warnaco 1Q Profit Rises on Strong Sales
Monday May 9, 5:04 pm ET
Warnaco First-Quarter Profit Rises 45 Percent, Led by Strong Sales in Sportswear Group
NEW YORK (AP) -- Apparel company Warnaco Group Inc. on Monday said profit for the first quarter rose 45 percent, led by strong sales in its sportswear group.
The company, which sells apparel under brands such as Nautica, Polo, Calvin Klein, as well as its own Warner's logo, said net income rose to $29.4 million, or 63 cents per share, from $20.2 million, or 44 cents per share. In the year-ago period, net income from continuing operations was $23.7 million, or 51 cents per share, and included a pretax $2.3 million restructuring charge.
ADVERTISEMENT
Revenue rose to $439.5 million from $393.3 million, lead by the performance of its sportswear group, which includes Calvin Klein jeans and the Chaps brand. The weaker dollar helped boost revenue in the period by $7 million.
Earnings were in line with the estimates of analysts surveyed by Thomson Financial, while revenue topped the consensus forecast of $429.2 million.
Inventories rose to $324.5 million as of April 2, up from $241.2 million a year earlier. Warnaco said the increase reflects a timing shift in the company's swimwear business and a planned build up "to address ongoing demand for its products, to improve service levels, and to contend with uncertainty relating to sourcing in certain countries of origin."
Warnaco shares fell 23 cents to $23 in after-hours trading, after rising almost 3 percent to $23.23 in the regular session on the Nasdaq.
Email Story
Set News Alert
Print Story
Market Data 
Markets 
AI
