Positive outlook at Warnaco
New York-based apparel, sportswear and swimwear retailer The Warnaco Group says it has made a strong start to the fourth quarter despite reporting slightly lower revenues during the previous quarter.
Its results for the third quarter ended October 3 showed that net revenues were down 5% year-on-year to $520.9 million. However, on a constant currency basis, revenues were down less than 1%. Operating income was $60.3 million, or 12% of net revenues, compared with $48 million, or 9% of net revenues, in the prior-year quarter.
“Our strong third quarter results, in the midst of a challenging environment, reflect the continuing positive contribution of our long-term growth initiatives,” said Joe Gromek, Warnaco’s president and chief executive officer. “During the quarter, our global expansion of Calvin Klein continued as total international revenues rose 6% in constant currency over the prior-year quarter, accounting for 61% of our total revenues. Also, our direct-to-consumer initiative continued to advance as we opened 40 new points of distribution and remain on-track to grow square footage by over 20%, or an additional 120,000 square feet, this year.”
