Warnaco Group, Inc., parent of the Calvin Klein Swimwear and Speedo brands, among others, provided updated outlook for the fourth quarter and outlined several growth initiatives going forward. Management expects fourth quarter revenue to grow by about 13% and to driven by global expansion and the broadening of the company’s direct business. International business is expected to grow by about 10% in constant dollars, accounting for 60% of the company’s revenues. Reported retail revenue in the quarter is expected to grow more than 30% and represent about 27% of the topline.
Management noted three initiatives for fueling growth in 2010 and beyond growing the Calvin Klein business, geographic expansion and building the company’s direct-to-consumer business. Management called the company’s Calvin Klein brand the “growth engine” of the business, noting that it represents about $1.5 billion in revenue roughly three fourths of Warnaco’s portfolio. The company said initiatives for the Calvin Klein brand would revolve around continued product innovation and provocative marketing while building market share in the bra business for the women’s side and defending its leadership position in the men’s business.
Likewise, management noted that the company had successfully leveraged existing platforms in Europe and Asia while establishing footholds in under-penetrated markets in Germany and assuming ownership and control of several developing markets including Chile, Peru and Brazil.
