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Warnaco’s Asia sales offset weaker West Tuesday, 7th August 2012
Photo credit: Speedo International Ltd campaign
The Calvin Klein, Speedo and Chaps owner saw strong sales in Asia and Latin America offset a weaker performance in Europe and the US.
Net revenues for the group fell 5 per cent in the second quarter ending 30 June 2012 to USD 563.9 million, as its gross margin fell 130 basis points to 42 per cent of net revenues.
Warnaco revealed a 10 per cent increase in net revenues for swimwear, driven by a strong performance from its Speedo brand, was still unable to offset declines in revenues from sportswear and intimate apparel.
Gross profit for the business fell 8 per cent to USD 238.9 million compared to the prior year quarter.
Helen McCluskey, Warnaco’s president and chief executive officer, said, “Our second quarter results were in line with our projections. As expected, a positive performance in Asia and Latin America during the quarter offset softness in Europe and the U.S. In the near term, looking ahead to the second half, with good visibility to forward bookings and more favorable product costs, we expect second half net revenue and gross margin to increase and to meet our projections for the balance of 2012.”
Based in New York, Warnaco announced in June that it was conducting a strategic review of its European business with the view of a possible restructure in the future.