Speedo parent Warnaco said that the company’s swimwear group always runs losses in the third quarter since the company sees just 10% of its total year revenues for the division in Q3. But the operating loss widened for the period to $8.6 million from $3.9 million in the year-ago period, a 121% increase. Sales for the division grew 5.5% to $38.6 million compared to $36.6 million in Q3 LY.

Management said that bookings to start the season are “ahead of expectations” and are pleased with the order book for Speedo, even though bookings are down in “mid-singles”. The company said the bookings do not accurately portray the health of the Speedo business, since the numbers do not include the Membership Club numbers included last year.

The division is now producing swimwear for Target under the Merona missy label and will start shipping the Bijou Bijou label to JC Penney in January. The CK and Calvin Klein swimwear products will start shipping to better distribution for the Fall 2004 season.

Year-to-date nine-month sales increased 9.8% to $300.9 million and operating profit gained 49% to $44.3 million, or 14.7% of total sales. The division does 70% of its business in the first half of the year.

The company said they want to take the Speedo brand “out of the water” and “onto the beach and beyond” as they work to expand product offerings to develop a year ‘round multi-category business for the brand.


>>> Ironically, one of its first moves is into the water, as the company announced a deal to have Fuse water produce Speedo brand water…