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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast