The Warnaco Group, Inc. reported Swimwear Group net revenues increased 12.1% to $57.0 million in the 2010 fourth quarter, compared to $50.8 million in the prior-year quarter. Operating income fell 41.0% to $1.3 million, or 2.2% of Swimwear Group net revenues, compared net income of $2.2 million, or 4.2% of division net revenues, in the prior-year quarter.


For fiscal 2010, Swimwear Group net revenues improved 2.5% to $257.7 million. Operating income increased 15.3% to $17.9 million, or 6.9% of Swimwear Group net revenues, compared to $15.5 million, or 6.2% of Swimwear Group net revenues in 2009.  On a segmented brand basis, the Speedo brand posted a modest 1.1% increase in revenues for the year to $217.5 million, or 84.4% of Swimwear division revenues.  Total Swimwear Wholesale revenues were up 2.7% to $241.0 million, while Retail revenues dipped 0.6% to $16.7 million.


Swimwear Group net revenues from international operations increased $5.7 million and from domestic operations increased $0.5 million. The increase in international net revenues includes a $1.9 million increase due to the favorable effect of fluctuations in foreign currency exchange rates.


Management said 2011 is expected to be a growth year for the swim group in revenue, operating income and operating margin. Speedo bookings for the merchandising year are up double-digits, including gains in sporting goods stores, clubs and the mass channel. Work has already begun for the 2012 Olympics, and they said they were “enthusiastic” about plans to leverage that world stage for future growth.