ITALY: Warnaco Group acquires Italian retail network
Warnaco's acquisition of the Italian-based Calvin Klein stores makes the Mediterranean country its largest European market.
Financial details of the deal were not disclosed.
These stores, which are located in leading shopping centres across Italy, are expected to generate approximately EUR28m (US$38m), in revenues in fiscal 2011 and add over 50,000 square feet of new retail space to the company's owned portfolio.
Based on revenues, this transaction will establish Italy as the company's largest retail market in Europe, with 58 directly operated stores.
The company expects the transaction to be accretive to operating earnings in fiscal 2011.
"This acquisition is consistent with our global growth strategies to expand our profitable international business and our direct to consumer footprint. Italy is one of our largest markets outside the United States and we are delighted to expand our direct operations and revenues in this key market," said Joe Gromek, Warnaco's president and CEO.
"This transaction will generate a strong return on investment, and will enable us to leverage our regional and country platform and infrastructure as well as our full complement of products and marketing to maximise sales and profits."
US apparel group Phillips-Van Heusen Corporation boosted its fourth quarter earnings on strong sales from the Tommy Hilfiger and Calvin Klein brands....
US apparel company The Warnaco Group has posted improved profits on the back of double-digit fourth quarter sales growth. ...
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