Please wait while we load the requested 10-K report or click the link below:
FOR IMMEDIATE RELEASE
WARNACO REPORTS FOURTH QUARTER AND FISCAL 2005 RESULTS
NEW YORK – February 27, 2006 – The Warnaco Group, Inc. (NASDAQ: WRNC) today reported results for the fourth quarter and full year ended December 31, 2005.
During the fourth quarter of fiscal 2005:
|•||Net revenues fell 3.2% to $362.5 million, from $374.4 million in the prior year period;|
|•||Gross profit margin increased 150 basis points to 35.0% of net revenues;|
|•||Net income declined to $9.4 million, or $0.20 per diluted share, from $16.2 million, or $0.35 per diluted share; and|
|•||The Company announced the acquisition of the Calvin Klein® Jeans and accessories businesses in Europe & Asia and the CK Calvin Klein "bridge" sportswear and accessories business in Europe (which was completed on January 31, 2006).|
In fiscal 2005:
|•||Net revenues rose 5.6% to $1.50 billion from $1.42 billion in fiscal 2004;|
|•||Gross profit margin increased 70 basis points to 33.9% of net revenues; and|
|•||Net income increased 22.4% to $52.1 million, or $1.11 per diluted share, from $42.5 million, or $0.93 million per diluted share, for fiscal 2004.|
"Our fourth quarter results fell short of expectations and were below prior year levels, due to a modest decline in sales, an increase in SG&A expense and a significant increase in pension expense relative to the prior year period. On a positive note, however, the substantial improvement in gross profit margin reflects lower costs as a result of our recent sourcing initiatives, as well as reduced mark-downs from retailers (in particular related to our Warner's® brand), and an increase in higher margin international sales as a percentage of total business," said Joe Gromek, Warnaco's President and Chief Executive Officer. "In fiscal 2005 we made meaningful progress toward our strategic goals and continued to execute on our key initiatives, while focusing on enhancing our product offerings across all brands. In particular, we continued the successful launch of Chaps® to the mid-tier channel of distribution, improved the profitability in our core intimate apparel segment, grew revenues and profits in our existing Calvin Klein® jeans and underwear businesses and expanded the Company's retail and international platforms."
Mr. Gromek continued, "We also recently closed the acquisition of the Calvin Klein jeans businesses in Europe and Asia and CK Calvin Klein "bridge" sportswear business in Europe. This acquisition is consistent with our strategic focus of developing global lifestyle brands within our core competencies. We have combined under one roof the worldwide Calvin Klein jeans, underwear and swimwear businesses thereby enabling Warnaco to broaden its global reach, extend into new product categories and expand our retail business. We believe that this acquisition, combined with other recent actions taken, should position Warnaco for long-term growth."
"As we begin 2006, we remain optimistic about the opportunities to develop our portfolio of powerful brands worldwide. Our focus is to grow our international presence and maximize the expansion potential of our Calvin Klein jeans and underwear businesses in Europe and Asia, while continuing to
The following information was filed by Warnaco Group Inc (WRC) on Monday, February 27, 2006 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.
View differences made from one year to another to evaluate Warnaco Group Inc's financial trajectory
Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Warnaco Group Inc.