Garment maker Warnaco said second-quarter profit plummeted 46%, attributing it to increased expenses and poor results within sportswear.

Quarterly profit was US$3.4m compared to $6.3m previously while net revenues grew 20.5% to $451.6m compared to $374.7m the year before.

The results included the operations of Calvin Klein Jeans and related businesses in Europe and Asia, which Warnaco bought in January.

Excluding the CKJEA Business, net revenues increased 3.5% to $387.9m compared to $374.7m in the prior year quarter.

President and CEO Joe Gromek said: "Contributions from certain pre-acquisition businesses and a smaller-than-expected loss at the CKJEA business resulted in the better -than-anticipated second-quarter results," said Joe Gromek, Warnaco's president and CEO.

"The Intimate Apparel Group, led by Calvin Klein Underwear and Warner's, continued its positive momentum from the first quarter and delivered significant increases in gross profit and operating income," he added.

Speedo showed strong sales growth and substantially better profits, the company said, but sportswear was affected by higher dilution at Chaps because of increased markdown allowances plus a different timing of certain membership club sales.

Gromek said: "We continue to believe the development of our global wholesale and retail platform positions us to achieve our long -term revenue and operating income targets.

"Additionally, with the acquisition of the CKJEA Business, which is surpassing our performance expectations, we believe our international businesses - which generate operating margins well above the company average - will account for approximately 40% of our fiscal 2006 revenues."

Warnaco last week said it would restate its financial statement for the first quarter of 2005 and the full 2005 year because of accounting mistakes within its Chaps division.

Gromek said an investigation into the errors is now "substantially complete" and didn't find any inappropriate activity outside of that division.

The company expects full-year pre-acquisition business revenue growth to be in the low single digits and at least a 100 basis point improvement in gross margin percentage and mid single-digit percentage.