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.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
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The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion