Warnaco Group said operating profits in its Swimwear Group fell 18.8% to $13 million from $16 million in Q4 last year as weakness in its designer swimwear segment offset strength at Speedo. Group sales grew 1.3% to $84 million from $83 million a year ago, with a 3% gain at Speedo offsetting a 3% decline in designer swim. Speedo remained strong with high-teens operating margins for the quarter.

Joe Gromek, WRNC president and CEO, said Speedo represents more than two-thirds of the Swimwear Group’s revenues and continues to generate operating margins in the mid- to high-teens. In the designer swim segment, Warnaco is focusing on restoring profitability through gross margin expansion and expense control. Gromek said Catalina, which represents 30% of the designer business, “is off to a positive start at Wal-Mart.”