NEW YORK — The Warnaco Group Inc. said Wednesday that third-quarter income more than doubled compared with a year ago.
For the three months ended Sept. 30, income was $14.6 million, or 31 cents a diluted share, up from $6.9 million, or 15 cents, in the same year-ago quarter. Revenues rose by 38.5 percent to $452 million from $326.3 million.
For the nine months, income fell by 25.2 percent to $31.9 million, or 68 cents a diluted share, from $42.6 million, or 92 cents a year ago. Revenues rose by 19.7 percent to $1.36 billion from $1.13 billion.
Joe Gromek, president and chief executive officer, opened the company conference call to Wall Street analysts by highlighting Warnaco's acquisition of the Calvin Klein Jeans business in Europe and Asia.
"The new business is outperforming our expectations," he said. "Significant opportunities exist to expand faster across all geographies through our direct-to-consumer franchise and wholesale channels and to leverage these new brands with our powerful Calvin Klein underwear business. We believe shareholder returns will be enhanced by concentrating our investment capital in our Calvin Klein business."
Gromek said that in the past six months the company has been evaluating its entire portfolio of brands. In addition to its sale of Ocean Pacific to Iconix, which acquired the brand for $54 million, Warnaco will discontinue certain brands, including JLo by Jennifer Lopez lingerie.
Elimination of the non-core brands makes "strategic sense" and enables the company to "focus our attention and resources on businesses and brands that offer us stronger growth and earnings potential," Gromek said.
He emphasized in an interview that Warnaco will "continue to look at all the brands and will take appropriate action with an eye toward maximizing shareholder value. It is not a static activity, but a constant evaluation."
Although the intimate apparel business grew at a double-digit rate during the quarter and the Calvin Klein women's business was up 25 percent, management is anticipating the product and pricing strategies for Chaps to help it reach revenue and profit objectives in the "not too distant future," executives said on the call.
Swimwear, slow in the third quarter, is expected to perform well in the 2007 season. Gromek added that the cruise line, which began shipping in October, is a higher-margin quarter for the swimwear business because of the paucity of markdowns.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)