By  on August 6, 2010

The Warnaco Group Inc.’s second-quarter profits jumped 68.5 percent as sales climbed 14 percent, the company said Thursday.

For the three months ended July 3, income was $29.9 million, or 65 cents a diluted share, from $17.8 million, or 38 cents, a year ago. Revenues rose to $519.3 million from $455.4 million. By category, the intimate apparel group posted the highest percentage gain at 17.9 percent to $199.1 million, followed by the sportswear group at 15.1 percent to $244 million. Rounding out the business segments was the swimwear group, up 2.4 percent to $76.2 million. Operating profits increased at all three groups.

Joe Gromek, president and chief executive officer, said, “Broad-based increases in our global Calvin Klein businesses, bolstered by the ongoing success of the Calvin Klein X Underwear campaign, complemented by gains in our heritage businesses, drove double-digit increases in net revenue, substantial improvements in gross margin and a significant increase in earnings per share.”

Warnaco said it was again raising its 2010 earnings outlook and expects diluted EPS from continuing operations in the range of $3.40 to $3.50, 10 cents above the previous range. Net revenues are now projected to grow 9 to 11 percent compared with fiscal 2009 from earlier forecasts of an 8 to 9 percent increase.

During the quarter, Warnaco redeemed the remaining $110.9 million of its 8.875 percent senior notes that were due in 2013. It ended the quarter with cash and cash equivalents of $172.9 million, down from $320.8 million on Jan. 2.

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