The Warnaco Group Inc. posted a fourth-quarter loss, in part due to a restructuring charge as it transitioned out of its European CK Calvin Klein bridge line, but managed to report income for the year.
For the three months ended Dec. 31, the loss was $6.7 million, or 16 cents a diluted share, against income of $19.2 million, or 42 cents, a year ago. Restructuring costs, including those related to the European CK Calvin Klein bridge line, were $41.9 million, including $38.9 million in noncash charges. Diluted earnings per share from continuing operations on an adjusted, non-generally accepted accounting principles basis rose 31 percent to 97 cents versus 74 cents in the year-ago quarter. Revenues rose 3.9 percent to $614.7 million from $591.5 million. By operating group, sportswear rose 1.7 percent to $322.1 million, while intimate apparel grew 8.7 percent to $236.8 million. Swimwear dipped by 2 percent to $55.8 million.
For the year, income fell 8 percent to $127.5 million, or $2.90 a diluted share, from $138.6 million, or $2.99, in 2010. Revenues increased 9.5 percent to $2.51 billion from $2.3 billion.
In her first conference call to Wall Street analysts as president and chief executive officer, Helen McCluskey said, “Our key metrics all moved in the right direction. Revenue was up 4 percent, fueled primarily by growth in direct-to-consumer. Our owned retail was up 14 percent, including a 3 percent increase in comp-store sales contributing to an increase in gross margin.”
McCluskey said the Calvin Klein operations continued to drive Warnaco’s business. For the year, Calvin Klein saw a 12 percent growth in revenues to $1.9 billion. Calvin Klein Jeans revenues rose 11 percent, while Calvin Klein Underwear revenues grew 13 percent. The firm’s heritage brands saw a 3 percent rise in revenue, with positive results in core intimates and Speedo offsetting a soft year for Chaps, McCluskey said.
In addition, much of the career-focused bridge line that was discontinued in Europe was in company-owned stores, and Warnaco plans to “put CK Jeans product in the space,” McCluskey said.
She noted that internationally, revenues rose 17 percent in 2011, and accounted for 60 percent of the firm’s revenues.
The company expects net revenues will grow between 4 and 6 percent in fiscal 2012 on an adjusted, non-GAAP, basis. Adjusted diluted EPS from continuing operations is expected at between $4.20 and $4.45, and in the range of $3.64 to $3.70 on a GAAP basis.
In honor the @CFDA’s announcement of @iamnaomicampbell receiving the Fashion Icon Award at the 2018 #CFDAAwards, which will take place on June 4, here’s a #tbt of the supermodel on @michaelkors’ runway in 1991. #wwdfashion #wwdarchive (📷: George Chinsee)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.