Warnaco Swimwear Group, which includes Speedo and Calvin Klein swimwear, saw sales climb 20.9% in the third quarter, to $36.7 million. The Group operating loss was cut to $4.1 million from $7.4 million a year ago, due to substantially improved margins at Speedo. According to Warnaco's 10-Q, Speedo revenues grew 24.5% to $29.3 million.

 

Revenues jumped 55.3% to $1.8 million at Calvin Klein swimwear while sliding 1.2% to $5.6 million at Swimwear Retail. On a conference call with analysts, Helen McCluskey, Warnaco's COO, said although it's a “relatively minor” quarter, Speedo benefited from increases in the mass channel and sporting goods stores. An introduction of a product line of bags to team dealers also boosted sales.

 

“Our forward bookings for the 2011 merchandise year are up double-digits, so we expect to start strong in the upcoming year,” said McCluskey. “We're pleased with the positive momentum of the businesses, and our revenue projections are tracking to achieve our objectives. We are optimistic that we will continue to generate positive results.”

 

The bottom-line gain came despite a $1.7 million restructuring charge in the latest period. The segment's gross margins improved to 33.6% of sales from 20.6% of sales in Q3 last year, partly reflecting a charge in Q3 2009 related to the write-down of inventory associated with the company’s LZR Racer and other similar racing suits which were banned by FINA. Swimwear Group's international revenues increased $1.0 million while domestic sales grew $5.3 million.