US: Charges inflict Q4 loss on Warnaco
- Q4 net loss US$6.6m, versus $28m profit
- Revenues up 4% to $614.7m
- CEO focuses on Calvin Klein, international, direct-to-consumer
Apparel business Warnaco suffered a net loss in the fourth quarter of 2011, impacted by one-off charges related to restructuring and pensions.
Revenues and gross margins both rose in the period ended 31 December, but full-year profit also declined, down 10.5% to US$132.3m.
The owner of the Calvin Klein brand pointed to a full-year revenue rise of 9.5% to $2.5bn, boosted by international revenue growth of 17% and a 28% hike in direct-to-consumer revenues, with comparable store sales up 4%.
Meanwhile, sales of the Calvin Klein brand were up 12% on the year, the company added.
“We remained focused on our key strategic initiatives, growing our Calvin Klein businesses, extending our international reach, building our direct-to-consumer platform and improving the profitability of our Heritage brands,” said Helen McCluskey, Warnaco president and CEO.
“We continue to see significant opportunities to improve our operating results as we leverage our diversified global model, exploit the power of our brands, increase our market share in key areas and expand into new territories.”
In fiscal 2012, Warnaco expects to post a 4-6% increase in net revenues and adjusted, diluted earnings per share of $4.20-4.45.
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