The Warnaco Group, Inc. said strength in all segments (Sportswear, Intimate Apparel and Swimwear) and growth in all key geographies contributed to second quarter sales that improved 14.0% to $519.3 million. Management said new product launches and ongoing global expansion drove revenue growth in the Calvin Klein businesses and was “complemented by mid-teens growth in the Chaps brand, which reflected its expanded distribution.”
For the company’s Swim segment, sales improved 2.4% to $76.2 million from $74.4 million in the year-ago period. Operating income for the segment improved 11.1% to $8.8 million from $8.2 million in Q2 2009. Speedo revenues improved 2.2% for the quarter to $63.1 million from $61.7 million in the year-ago period due to increases in the U.S. in the mass channel and sporting goods, specialty and department stores; and in Canada, to mass merchandisers, chain stores and department stores, partially offset by decreases in the U.S. to membership clubs, team dealers, mid-tier and discounters; and to independent retailers in Canada.
In a conference call with analysts, management said swim was up at retail from the prior year period and added that the company expects increases in both the Speedo and Calvin Klein swim lines. Warnaco recently named former Reef president Jim Gerson as president of it’s Swimwear division. Gerson will join Warnaco in late August.
