The Warnaco Group Inc. posted a 21 percent jump in fourth-quarter earnings, bolstered by strong sales in its sportswear business.
For the three months ended Dec. 29, earnings "as reported" grew to $22.9 million, or 49 cents a diluted share, from $18.9 million, or 41 cents in the year-ago period. Adjusted earnings, which include restructuring charges among other items, rose 30 percent to $19.5 million, or 42 cents a diluted share, from $15 million, or 32 cents.
Sales for the quarter increased 5.7 percent to $473 million from $447.6 million last year. Adjusted sales gained 6.8 percent to $467.1 million, up from $437.2 million.
Income from continuing operations dropped to $19.8 million in the fourth quarter from $21.6 million in the same period last year. Gross margins gained 300 basis points, the company said in its quarterly report.
"We believe that our efforts to rationalize our portfolio will allow us to focus resources on our higher margin businesses, and capitalize on expansion opportunities on a global basis," said Joe Gromek, president and chief executive officer. "We believe this is most apparent in our Calvin Klein businesses, where we have added categories and channels to our existing portfolio to support our continued growth."
Sportswear sales in the quarter increased 10 percent to $245.7 million from $223.3 million last year. The growth was driven by strength in the global Calvin Klein jeans business, which offset sales declines in Chaps.
As reported, full-year earnings soared 55.7 percent to $79.1 million, or $1.70 a diluted share, from $50.8 million, or $1.08 a diluted share, in the year prior. Sales for the year rose 12 percent to $1.86 billion from $1.66 billion.
The company expects 2008 earnings in the range of $2.50 to $2.60 a diluted share.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“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