The Warnaco Group, Inc. today reported results for the second quarter ended July 5, 2008.
Q2 Notables
Net income was $19.4 million, or $0.41 per diluted share, compared to $13.8 million, or $0.30 per diluted share, in the prior year quarter.
Net revenues rose 22% to $503.8 million compared to $412.5 million in the prior year period and gross margin increased to 45% compared to 42% in the prior year quarter. Operating income was $48.9 million, or 10% of net revenues, compared to $28.2 million, or 7% of net revenues, in the second quarter of fiscal 2007.
Income from continuing operations was $26.5 million, or $0.57 per diluted share, compared to $21.6 million, or $0.46 per diluted share, in the prior year quarter.
On an adjusted, non-GAAP basis (excluding certain tax items, restructuring expenses and pension income), income from continuing operations was $33.4 million, or $0.71 per diluted share, compared to $21.4 million, or $0.46 per diluted share, in the prior year period. Net income was $26.3 million, or $0.56 per diluted share, compared to $13.6 million, or $0.29 per diluted share, in the prior year quarter.
Balance Sheet
Cash and cash equivalents at July 5, 2008 were $154.5 million compared to $163.1 million at June 30, 2007.
Accounts receivable, net, increased to $310.9 million at July 5, 2008 from $278.6 million at June 30, 2007.
Net inventories were $316.3 million at July 5, 2008, down from $357.1 million at June 30, 2007.
Based on a strong first half performance, for fiscal 2008, the company now expects net revenues to grow 13% – 15% over comparable fiscal 2007 levels and, on an adjusted basis (excluding restructuring expense and a non-recurring repatriation tax charge, and assuming minimal pension income/expense), diluted earnings per share from continuing operations in the range of $2.80 – $2.90.
