Warnaco Net Down 7.8% in Third Quarter

Helen McCluskey, president and chief executive officer, cited "currency and macro challenges."

WARNACO POSTS Q3 RESULTS: Warnaco Group Inc., which last week said it will be acquired by PVH Corp. in a deal valued at $2.9 billion, said net income for the third quarter ended Sept. 29 fell 7.8 percent to $41.1 million, or 98 cents a diluted share, from $44.6 million, or $1.03, last year. Net revenues declined 5.2 percent to $611.5 million from $645.1 million.

Helen McCluskey, president and chief executive officer, said, “Gross margin expansion and expense discipline more than offset a decline in net revenues, driven primarily by the impact of currency and macro challenges.”

This story first appeared in the November 6, 2012 issue of WWD.  Subscribe Today.

By segment, the sportswear group’s net revenues fell 5.7 percent to $337.4 million, while the intimate apparel group declined 6.3 percent to $232.2 million. The smallest segment, the swimwear group, was also its best performing business, gaining 6.7 percent to $42 million.