US: Warnaco cuts FY guidance as Q2 profit slumps
- Q2 profit down 79% to US$9.6m
- Revenues down 5% to $563.9m
- Cuts full-year earnings and revenue projections
Apparel group Warnaco has cut its full-year projections for revenues and earnings after second quarter profit slumped 79%, hit by a $12m charge linked to its 2008 sale of lingerie brand Lejaby.
The three-month period to 30 June saw a strong performance from swimwear brand Speedo linked to its Olympic activity, which helped swimwear revenues to increase 10%.
However, this was more than offset by declines in sportswear and intimate apparel, which the company blamed on challenging market conditions, particularly in the US and Europe.
Gross margins were also down, thanks to product cost inflation, increased customer allowances and the effects of currency fluctuations.
Warnaco president and CEO Helen McCluskey said the results were “in line” with expectations, adding: “As expected, a positive performance in Asia and Latin America during the quarter offset softness in Europe and the US.”
Highlighting the performance of Speedo, she said: “We are making progress in reshaping our organisation to reflect the consumer-centric vision I outlined earlier in the year.”
Click here for just-style insight: Charges impair Warnaco recovery plan.
Apparel company PVH Corp has outlined further growth opportunities for its Tommy Hilfiger and Calvin Klein apparel businesses following its acquisition of The Warnaco Group last year....
The CEO of apparel giant PVH has backed Warnaco's plans to turn around the Calvin Klein Jeans and underwear businesses, a company it is set to take over next year in a deal worth US$2.9bn....
The most read stories on just-style this week include Limited Brands making its toxic-free fashion pledge, the European Parliament calling for better factory health and safety measures in Bangladesh, ...
PVH saw third quarter net income rise as sales of its Calvin Klein and Tommy Hilfiger brands compensated for a decline in demand for its heritage brands. ...
- VF Corp confirms interest in Africa sourcing
- Will Amazon take over the US apparel market?
- G-Star RAW pushes the boundaries of denim
- US groups seek workable apparel provisions in TPP
- Pakistan textile mills fear rash of closures
- VF Corp ups guidance on "strong" Q2
- Metallised thread for "revolutionary" RFID tag
- Under Armour secures Germany and Austria deals
- Manufacturing in China falls to 15-month low
- Millennials "changing the game" for hosiery
- Ethiopia – the emerging textile and clothing industry
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Management briefing: Factory safety and auditing: The key challenges
- Global market review of workwear - forecasts to 2019
- Global market review of denim and jeanswear – forecasts to 2020