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Warnaco Group Inc. Message Board

  • floppy_6 floppy_6 Sep 27, 2011 9:40 PM Flag

    China

    Following is part of presentation WRC made at Telesey Advisory on 9/26.

    "This year, China will end up at approximately $165 million in revenues and contributing almost a 30% operating margin. The way I like to think about it is if we expend $1.00 of revenue in the United States at a 14%, 15% operating margin and a 40% tax rate, it only contributes $0.08. For every $1.00 we generate in China, at a 30% operating margin and a 25% tax rate, it contributes $0.23. So one of the reasons why we're going rapidly in China and Brazil, Brazil will grow from just under $100 million last year to over $140 million business this year."

 

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