NEW YORK — The Warnaco Group Inc. posted strong fourth-quarterearnings, beating analysts’ estimates, but the company gave 2011guidance that was less than expected.
Joe Gromek, president andchief executive officer, said the firm’s retail business was off to astrong start this year and the firm was poised to continue its globalexpansion, but he also acknowledged price increases building in thesupply chain.
“While we are clearly facing product cost andsupply chain inflation, we believe our business model, anchored by ourpowerful Calvin Klein brand and our high-margin international and retailoperations, positions us to address these challenges,” he said.
Netincome for the quarter ended Jan. 1 rose 74 percent to $19.2 million,or 42 cents a diluted share, from $11 million, or 23 cents, a yearearlier. Revenues increased 17 percent to $591.5 million from $505.4million. Adjusted earnings of 74 cents beat Wall Street’s best guess by 4cents.
Annual profits rose 44.4 percent to $138.6 million, or$2.99 a diluted share, on a 13.7 percent increase in revenues to $2.3billion.
Adjusted annual profits tallied $3.57 a share, a figureWarnaco plans to boost to $3.85 to $4.05 this year — below the $4.08analysts projected. The firm projected revenue growth of 7 to 9 percentthis year.
Shares of Warnaco inched up 1.3 percent to $59.71Monday, prior to the afternoon earnings report. The stock was down inafter-market trading.
In all, it was a quiet day for themarkets. The S&P Retail Index advanced 0.2 percent, or 0.96 points,to end at 512.79, as the Dow Jones Industrial Average increased 0.8percent, or 95.89 points, to close at 12,226.34.
Shares of J.Crew Group Inc. slipped 10 cents to $43.12. The falling price couldindicate some trepidation ahead of today’s shareholders’ meeting, whereinvestors are scheduled to decide whether to sell the company to TPGCapital and Leonard Green & Partners for $43.50 a share, or about $3billion.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)