Third quarter wholesale revenues for Speedo fell 9.5 % to $25.1 million due to a decrease in sales to membership clubs, department stores, chain stores, mass merchandise and off-price channels, primarily due to timing of orders and shipments. These declines were offset by increases to specialty stores due to strong and early orders for merchandise related to the Olympics, including the LZRacer swimsuit.
“Post-Olympic excitement has continued, with increased interest in swimming and the Speedo brand. To-date, our 2009 swim season bookings are up 3%,” said Helen McCluskey, president of Warnaco Intimate Apparel who also oversees the swim division, on a conference call with analysts.
In other swim businesses, Calvin Klein swim revenues jumped 106.9% to $991,000 due to strong demand in Europe. Swimwear retail sales advanced 15% to $5.5 million reflecting a $600,000 increase in Europe and a $100,000 U.S. gain.
Swimwear's operating loss was cut to $10.2 million from $22.9 million a year ago. The latest period included $1 million in restructuring charges versus $13.2 million a year ago. Part of the lower loss reflects reduced selling and distribution costs in the Speedo wholesale and Calvin Klein wholesale businesses as part of overall efforts to maximize profitability within the group.
Overall, Warnaco Group, whose primary business is Calvin Klein jeans and intimate apparel, earned $26.5 million, or 58 cents a share, up from $4.4 million, or 10 cents a year ago. Revenues climbed to $548.7 million from $ 473.2 million.
