NEW YORK — The Warnaco Group said it will buy back up to $5 million of its outstanding shares.
At current prices, the $5 million would buy about 147,000 shares. At the end of the second quarter, the company had about 20.8 million shares outstanding. The stock closed Wednesday up 5/8 to 35 on the New York Stock Exchange.
Linda J. Wachner, chairman and chief executive officer, said based on the 65 percent gain in second-quarter net income on a 20 percent sales jump, Warnaco stock “is undervalued.”
In addition, the firm’s order backlog going into the second half is up 45 percent from a year ago.
“That shows we have sustainable double-digit growth,” she said in a telephone interview. Wachner also noted Warnaco is generating substantial cash flow.