The Warnaco Group Inc. saw earnings rise 41 percent in the second quarter, driven by international growth in its Calvin Klein business and prompting the company to raise guidance for the second time this year.
For the three months ended July 5, net income climbed to $19.4 million, or 41 cents a diluted share, from $13.8 million, or 31 cents, in the second quarter last year.
Sales in the quarter grew 22 percent to $503.8 million from $412.5 million, driven by a strong performance in Calvin Klein abroad.
“Our second-quarter results included broad-based strength with all operating segments and geographies recording increased revenue and profitability,” said Joe Gromek, Warnaco’s president and chief executive officer. “Our key expansion initiatives, including international, direct-to-consumer and our Calvin Klein businesses, continued to fuel our growth. During the quarter, international revenues accounted for 50 percent of the company’s total, led by 51 percent growth in Europe.”
Warnaco revised its 2008 outlook, projecting sales would grow 13 to 15 percent over 2007, with adjusted diluted earnings per share from continuing operations expected to range from $2.80 to $2.90. When the company revised its outlook after the first quarter, Warnaco said it expected revenues to grow 10 to 12 percent and diluted earnings per share growth of $2.65 to $2.75.
During the second quarter, sportswear sales increased 29 percent to $249.4 million, led by the Calvin Klein Jeans business, which grew in all regions — from 57 percent increases in Europe to 14 percent in the U.S. Chaps sales were flat, but operating margins improved to 19 percent from 11 percent.
For the first half, net income fell 28 percent to $37.1 million, or 80 cents a diluted share, from $51.8 million, or $1.11, due to restructuring costs and exits from the swim business in the first quarter. Sales so far this year increased 22 percent to $1.07 billion from $881.7 million.
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