Warnaco

The Warnaco Group Inc. (New York) reported a 12.8 percent increase in net revenues for the second quarter ended July 2, 2005. Operating income rose 21.7 percent.

“Our solid second quarter results reflect the continued success of our diversified portfolio of leading brands, the breadth of our channels of distribution and our continued global expansion,” said president and ceo Joe Gromek. “During the quarter, we advanced several of our key initiatives for the year and delivered substantial increases in both net revenues and net income, led by strong results from Chaps and Calvin Klein jeans. We also saw market share growth in several of our brands, in each of our three operating groups. We are pleased with our overall performance in the quarter, especially given the challenging swimwear season which negatively affected the swimwear group’s results.”

Strength in the company’s sportswear group and intimate apparel group revenues more than offset a slight decline in revenues in the swimwear group. The sportswear group continued its strong performance from the first quarter, achieving revenue growth over the prior year quarter of over 30 percent, led by Chaps with growth in excess of 55 percent and continued positive momentum in Calvin Klein jeans.

The intimate apparel group delivered an 11.7 percent increase in net revenues over the prior year quarter, reflecting favorable consumer response to the group’s latest product offerings. Swimwear group revenues declined slightly compared to the prior year quarter, primarily due to unfavorable weather conditions which resulted in a decline in shipments.

Warnaco designs and sells intimate apparel, menswear, jeanswear, swimwear, men’s and women’s sportswear and accessories under such owned and licensed brands as Warner’s, Olga, Lejaby, Body Nancy Ganz, Speedo, Anne Cole, Op, Ocean Pacific, Cole of California and Catalina, as well as Chaps sportswear and denim, J. Lo by Jennifer Lopez lingerie, Nautica swimwear, Michael Kors swimwear and Calvin Klein men’s and women’s underwear, men’s accessories, men’s, women’s, junior women’s and children’s jeans and women’s and juniors’ swimwear.