Joe Gromek, president and CEO of The Warnaco Group, said he expects only modest growth from the Speedo business in 2008, despite having the benefit of the upcoming Beijing Olympics.




 

“We've seen some erosion in both revenue and earnings in this business,” said Gromek, speaking at the ICR Inc. XChange Conference. “We have placed new leadership over this Speedo business; Helen McCluskey has taken over several months ago. And under Helen's leadership, we think, we can get back to the position that we had once been.”

 


He notes that Speedo, nonetheless, remains the number-one swimwear brand in the U.S. and has a 65% market share of competitive swim.  Speedo also has a “very powerful” accessories business; which represents about a third of sales.  Goggles has grown to over $40 million annually and is “highly profitable.”