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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty