Warnaco Swimwear Group net revenues increased 17.6% to $130.8 million in the 2006 second quarter, compared to $111.3 million in the year-ago period, primarily due to the recovery of revenues that fell out of the first quarter combined with an increase in sales in the membership clubs and off-price channels.
Speedo net revenues were up 15.6% for the quarter to $78.7 million from $68.1 million in Q2 last year. The company estimated that approximately $6.0 million of the $10.6 million increase for the quarter was due to delayed Q1 deliveries, while expansion of the shoes and accessories business into clubs channel of distribution accounted for another $4.0 million of the gain.
The Ocean Pacific business posted revenues of $3.4 million in Q2, up 53.1% from $2.2 million in the same quarter last year, due primarily to a shift in business model from a licensed model to a direct wholesale model.
Total wholesale swim revenues were up 17.4% to $128.5 million, with designer swimwear revenues increasing 18.6% to $46.5 million. Swimwear owned-retail revenues increased 25.3% to $2.3 million from $1.8 million in the year-ago period.
Operating Income for the Swimwear Group declined 19.4% for the second quarter to $1.6 million, compared to $1.9 million in Q2 last year.
Speedo was the only wholesale business posting an operating profit for the period, jumping 168% to $8.5 million, or 10.9% of sales, from $3.2 million, or 4.7% of sales, in the year-ago quarter. Ocean Pacific posted a $2.8 million loss for the period on top of a $723,000 loss in Q2 last year, due to continued start-up investments in the business. The designer business posted a $5.0 million operating loss for the quarter, while the retail business posted an $852,000 operating profit for the quarter, a 14.3% increase compared to $745,000 in the 2005 second quarter.
