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|Investor Relations: Deborah Abraham|
|Director, Investor Relations|
FOR IMMEDIATE RELEASE
WARNACO REPORTS FOURTH QUARTER
REVENUE UP 10.8%
And Significant Improvement in Fiscal 2004 Earnings
NEW YORK -- March 3, 2005 -- The Warnaco Group, Inc. (NASDAQ: WRNC) today reported significantly improved results for the fourth quarter and full year ended January 1, 2005:
For the fourth quarter:
|•||Net revenues were up 10.8% to $374.4 million from $338.0 million for the prior year period;|
|•||Gross profit margin was up 270 basis points to 33.5%;|
|•||Operating margin rose to 8.6% of net revenues, versus 5.4% in the prior year period; and|
|•||Net income was $16.2 million, or $0.35 per diluted share, compared to a loss of $4.7 million, or a loss of $0.10 per diluted share, in the prior year quarter.|
For fiscal 2004:
|•||Net revenues were $1.42 billion;|
|•||Income from continuing operations was $46.9 million, or $1.02 per diluted share; and|
|•||Net income was $42.5 million, or $0.93 per diluted share.|
"Strong fourth quarter results contributed to a successful year for Warnaco," commented Joe Gromek, Warnaco's President and Chief Executive Officer. "The strategies we embarked on led to strong sales growth in the second half of the year and importantly, provide us with positive momentum as we begin 2005. Once again, our operating platform, including a diverse portfolio of products and brands, multi-channel distribution strategy and expanded geographic presence, enabled us to achieve our targeted goals."
"We are also pleased with the new initiatives implemented during the year, including the expansion of Chaps®, the acquisition of Ocean Pacific and the continued product extension, geographic expansion and roll-out of Calvin Klein® underwear retail stores," Mr. Gromek continued. "We believe these undertakings, together with the efforts to increase profitability in our Calvin Klein jeans unit, position us for growth across all our business segments this year."
Mr. Gromek concluded, "We are very proud of our over 10,000 associates around the globe, whose energy and commitment contributed to our success in 2004. Their dedication and efforts support our optimism for 2005 and beyond."
Like many other public companies, including those in the retail and apparel industry, the Company has reviewed its accounting practices in light of the clarification regarding existing generally accepted accounting principles ("GAAP") for lease accounting set forth by the Office of the Chief Accountant of the Securities and Exchange Commission ("SEC") on February 7, 2005. After consultation with its independent auditors, and because of the SEC's recently stated position, management and the Audit Committee of the Board of Directors determined that the Company's methods of accounting for rent
The following information was filed by Warnaco Group Inc (WRC) on Thursday, March 3, 2005 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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