Warnaco Swimwear division revenues increased 3.5% to $85 million for the fourth quarter, thanks to a 6.3% increase in Speedo revenues. The Speedo increase was partially offset by a decrease in designer swimwear revenues, due primarily to a sharp drop in the Catalina mass retail business. Operating income was $13.3 million for the division in Q4, compared to $15.8 million in the prior year period. Speedos operating profits jumped 46% for the period to $13.0 million from $8.9 million in Q4 last year.
Total year revenues rose 2.8% to $391.1 million, compared to $380.3 million in fiscal 2004. Speedo sales for the year were essentially flat, but the designer segment posted a “modest” revenue gain despite an approximately $20 million decline in Catalina revenues during the year. Operating income for 2005 decreased to $44.2 million from $58.1 million in fiscal 2004, primarily due to more than $12 million in investments in new launches.