Warnaco Q3 net revenues decline 5 percent

The Warnaco Group has reported that its net revenues for

the third quarter ended September 29, 2012 declined 5 percent, to 611.5 million dollars (Rs 3,332 crores), compared to the prior year quarter. Net revenues, in constant currency, were flat compared to the prior year quarter. Income per diluted share from continuing operations was 0.98 dollars (Rs 53.4) compared to 1.13 dollars (Rs 61.5) in the prior year quarter. Income per diluted share from continuing operations on an adjusted, non-GAAP, basis was 1.15 dollars (Rs 62.6) compared to 1.07 dollars (Rs 58.3) in the prior year quarter.

“Our third quarter results reflect the efforts of our team to efficiently operate our global business,” said Helen McCluskey, Warnaco’s President and Chief Executive Officer. “Gross margin expansion and expense discipline more than offset a decline in net revenues, driven primarily by the impact of currency and macro challenges. As a result, we delivered an increase in operating margin and adjusted non-GAAP income per share from continuing operations compared to the prior year quarter,” McCluskey added.

“Looking forward, our reported Q3 results support our outlook for the balance of the year. As was announced last week, we entered into a merger agreement with PVH Corp and look forward to the opportunities the transaction with PVH brings to our business. In the meantime, we intend to continue to operate the business effectively for the next several months as we work collaboratively with PVH to ensure a smooth integration,” concluded McCluskey. For fiscal 2012, based on recent foreign currency exchange rates, the Company continues to anticipate net revenues, on a reported basis, will be down 2 percent to flat compared to fiscal 2011; and adjusted, non-GAAP, diluted income per share from continuing operations in the range of 4.00 dollars-4.15 dollars (Rs 217.9 to Rs 226).

The Warnaco Group, Inc., headquartered in New York, is a leading global apparel company engaged in the business of designing, sourcing, marketing and selling men’s, women’s and children’s sportswear and accessories, intimate apparel, and swimwear under Calvin Klein, Speedo, Chaps, Warner's and Olga.