US: Warnaco profits surge on strong international sales
- Q4 net income up 42% to US$19.2m
- Net revenues rise 17% to $591.5m
- Gross margin decline during quarter
US apparel company The Warnaco Group has posted improved profits on the back of double-digit fourth quarter sales growth.
However, Warnaco also reported that gross margin decreased 80 basis points from the prior year quarter to 43% of net revenues. Its selling, general and administrative (SG&A) expense increased 80 basis points to 34% of net revenues.
Full-year net revenues were $2.3bn, Warnaco said, up 14% from the prior year.
The company posted a 14% increase in Calvin Klein revenues, while international revenues grew 17% and increased to 56% of total company revenue.
Joe Gromek, Warnaco’s president and chief executive officer, said: "The continued execution of our key strategies fueled a powerful revenue and earnings performance. Growth in our Calvin Klein businesses, including international, and expansion of our direct to consumer business together with a strong performance from our heritage businesses contributed to these solid results."
For fiscal 2011, the company anticipates that its net revenues will grow 7-9% compared to fiscal 2010.
Click here to view the company's fourth quarter results in full.
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