US apparel company The Warnaco Group, Inc. has reported improved net revenues for the first quarter ended April 1, rising to $466.3 million from $439.5 million in the first quarter of fiscal 2005. However, operating income slipped to $34.6 million compared with $52.9 million in the first quarter of fiscal 2005; and net income fell to $16.1 million from $29.4 million.

Whilst its Intimate categories performed well, the company believes that revenue and operating income for the Swimwear Group fell short of targeted amounts by approximately $30 million and $10 million, respectively, during the quarter, primarily due to difficulties with the implementation of a new systems infrastructure and its effect on shipping, re-orders and order cancellations.

Additionally, the timing shift in sales of certain sportswear product offerings resulted in the absence of approximately $12 million of net revenues and $5 million of operating income, which revenues and operating income occurred in the first quarter of 2005 but are not expected to occur until the latter half of this year.

Joe Gromek, president and chief executive officer commented, "The strong performance of our Intimate Apparel Group and international businesses, including our newly acquired International Calvin Klein businesses, was overshadowed by a disappointing first quarter for our Swimwear Group, where disruptions caused by the implementation of a new systems infrastructure negatively affected shipping in the quarter, resulting in sales declines year over year and additional expense. The quarter was also negatively impacted by the effects of retail consolidation and a significant timing shift in certain sportswear sales from the first half of this year into the latter half of this year."

The Warnaco Group designs and markets intimate apparel, menswear, jeanswear, swimwear, men's and women's sportswear and accessories under owned and licensed brands such as Warner's, Speedo, Ocean Pacific, Chaps and Calvin Klein.