Speedo revenues for 2007 fell 12%, or about $30 million, primarily due to a reduction in shipments to clubs. On a positive note, Warnaco, its parent, noted that Speedo's shipments to its team dealer network and sporting goods stores were up 3%, and Speedo's Internet business increased by 40%.
For the full year, swimwear revenues were down 8.5% to $291.5 million from $328.5 million last year. The division posted an operating loss of $33.3 million after profit of $17.3 million last year. The decline was due to a 390-basis point decrease in gross margin, which was the result of reduced revenue, underutilized manufacturing capacity and inventory write-downs. Calvin Klein swimwear, much smaller than Speedo, increased by over 30%, with considerable success in Europe.
