Steeped in fashion and financial lore, Warnaco Group Inc. has had a highly volatile and storied past — and a lot of it revolves around Calvin Klein.
Linda J. Wachner, a former foundations buyer at Macy’s Herald Square who served as Warnaco’s president, chairman and chief executive over a 15-year span, led a leveraged buyout with an investment group in 1986, wresting control of Warnaco away from existing management. Observers say the move was akin to those of other Nineties buyout specialists such as Henry Kravis, Saul Steinberg and Ronald Perelman. RELATED STORY: PVH Corp. to Buy Warnaco in $2.9B Deal >>
Wachner and her group paid 14 times cash flow — $500 million in borrowed money and a $200 million revolver for working capital — at a time when the going rate for that kind of deal was about six times cash flow. Warnaco went public in 1991 at $20 a share, effectively $10 a share based on a two-for-one stock split in 1994, the same year it completed the purchase of the business and trademarks of Calvin Klein Inc.’s men’s underwear and a license for the trademarks in Calvin Klein men’s accessories worldwide. By 1996, Wachner had taken Warnaco from a $425 million-a-year apparel smorgasbord to a sharply focused, branded apparel maker that generated sales of $1.06 billion. Wachner said the Calvin Klein name gave Warnaco a major entry into the men’s underwear business worldwide, while adding a strong designer name to the group’s core innerwear portfolio.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)