Warnaco Group 3rd-quarter profit grows

Warnaco Group 3rd-quarter earnings rise as Calvin Klein brand expands abroad

• On 3:16 pm EST, Wednesday November 4, 2009

NEW YORK (AP) -- Apparel maker Warnaco Group Inc. said Wednesday that its profit rose in the third quarter as its Calvin Klein brand gained market share worldwide.

The maker of Olga lingerie, Speedo swimwear and Calvin Klein brand underwear earned $29.7 million, or 63 cents per share, compared with $26.5 million, or 57 cents per share, in the same period a year earlier.

Results in the most recent quarter included a charge of $3.6 million, or 5 cents per share, to write down swimsuit inventory. Excluding that and other items, adjusted earnings were 75 cents per share.

Revenue declined 5 percent to $520.9 million from $547.6 million. Revenue in sportswear slipped 1 percent, while revenue in intimate apparel declined 11 percent. Sales in swimwear declined 5 percent.

Analysts surveyed by Thomson Reuters forecast net income of 75 cents per share and revenue of $501.7 million. Analysts' estimates typically exclude one-time items.

"During the quarter, our global expansion of Calvin Klein continued as total international revenues rose 6 percent in constant currency over the prior year quarter, accounting for 61 percent of our total revenues," said Joe Gromek, president and CEO.

For fiscal 2009, excluding restructuring expenses and other items, the company expects revenue will decline between 3 percent and 5 percent -- better than a prior forecast for sales to fall between 7 percent and 9 percent.

The new forecast implies revenue between $2 billion and $2.01 billion. Analysts predict $1.95 billion in revenue.

Earnings from continuing operations will range between $2.45 per share and $2.51 per share -- or between $2.70 and $2.80 per share excluding items, the company said. Analysts polled by Thomson Reuters expect profit of $2.80 per share.

Shares of the company declined $1.64, or 3.8 percent, to $41.21 in afternoon trading.

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