Special charges threw the Warnaco Group Inc. to a fourth-quarter loss, but cost-cutting efforts and the continuing strength of its Calvin Klein licenses helped lift results above analysts’ expectations.Net losses for the three months ended Jan. 3 were $16.3 million, or 36 cents a diluted share, compared with net income of $22.9 million, or 49 cents, in the year-ago quarter. Eliminating restructuring expenses, discontinued operations and other items, earnings per share was 21 cents, above the consensus estimate of 15 cents.Revenues dipped 4 percent, to $445.9 million from $466.5 million, but rose 4 percent on a constant-currency basis. Gross margin improved 250 basis points to 42.2 percent of sales.“The power of our diversified business model and the disciplined execution by our team enabled us to advance our long-term strategic goals and continue to position the company for further success,” said president and chief executive officer Joseph Gromek on an earnings call Thursday morning.For the fiscal year, earnings fell 40.3 percent to $47.3 million, or $1.01 a diluted share, from $79.1 million, or $1.70, in 2007. Revenues for the year grew 13.5 percent to $2.07 billion from $1.82 billion. Calvin Klein brand revenues increased 21 percent to $1.5 billion for the year, representing almost three quarters of the company’s total sales. Calvin Klein Jeans revenues were up 24 percent; Calvin Klein Underwear revenues rose 16 percent, and Calvin Klein accessories revenues within the jeans segment increased 63 percent. International revenues rose 26 percent, making up more than half of the total, with Latin-American sales up 59 percent, Asia 29 percent and Europe 23 percent.Retail sales increased 28 percent for the year, with same-store sales ahead 12 percent in the quarter and 13 percent for the full year.“The U.S. is probably 10 to 15 points behind what’s going on internationally,” Gromek said. “Remember all of our retail expansion is happening outside of the United States.”The company provided guidance for 2009, anticipating revenues will decline 2 to 5 percent on a constant-currency basis, with expected earnings per share from continuing operations in the range of $2.40 to $2.66. Shares of Warnaco ended Thursday’s trading session at $20.59, up 57 cents or 2.9 percent.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim