NEW YORK — The Warnaco Group Inc. on Tuesday reported a 42.5 percent jump in second-quarter income, bolstered by a 31.1 percent jump in revenue from its sportswear unit.
For the three months ended July 2, income was $6.3 million, or 14 cents a share, versus $4.4 million, or 10 cents, in the same year-ago quarter. Total revenues rose 12.8 percent to $374.7 million from $332.1 million a year ago. The sportswear group contributed a 31.1 percent gain in revenues to $120.1 million from $91.6 million, while the intimate apparel group rose 11.7 percent to $143.3 million from $128.4 million.
Both groups offset the 0.8 percent decline in the swimwear group, which contributed $111.3 million in revenues compared with $112.1 million a year ago.
For the six months, income jumped 44.6 percent to $35.7 million, or 77 cents a diluted share, from $24.7 million, or 53 cents, last year. Revenues increased by 12.3 percent to $814.2 million from $725.3 million.
“During the quarter, we advanced several of our key initiatives for the year and delivered substantial increases in both net revenues and net income, led by strong results from Chaps and Calvin Klein jeans. We also saw market share growth in several of our brands, in each of our three operating groups,” said Joe Gromek, president and chief operating officer, in a statement.
The company said Chaps grew in “excess of 55 percent” and that there was “continued positive momentum in Calvin Klein jeans.”
As for swimwear, Gromek added: “For the balance of 2005, we are focused on improving gross margins and continuing to enhance the profitability of the company. We are excited by the reception of our recently launched Op, Michael Kors and Calvin Klein swimwear collections, which were presented at the Miami market in July.”
Gromek also said the board has authorized a share repurchase program of up to 3 million shares of common stock, and that the company expects those purchases will be made over a period of three years.
This story first appeared in the August 10, 2005 issue of WWD. Subscribe Today.