Aug 12, 2009
Warnaco misses Street target by penny, ups outlook
Aug 12, 2009
SAN FRANCISCO, Aug 11 (Reuters) - Clothing maker Warnaco Group Inc (WRC.N) reported a slightly lower-than-expected quarterly profit on Tuesday 11 August, as the negative effect from foreign currency fluctuations took a toll on sales.
Kate Ziegler, a 2008 Olympic champion, for Speedo USA from Warnaco - www.speedousa.com
Warnaco, whose brands include Warner's, Speedo and Calvin Klein underwear, also raised its full-year profit and sales outlook.
Warnaco said net income from continuing operations in its second quarter was $18.67 million, or 40 cents per share, compared with $19.5 million, or 56 cents per share, a year earlier.
Excluding restructuring and pension costs and tax-related items, earnings per share were 48 cents.
Analysts on average expected 49 cents per share, according to Reuters Estimates.
Sales fell 9 percent to $455.9 million, the company said. On a constant currency basis, sales fell 0.5 percent.
Warnaco forecast that fiscal 2009 revenue will fall 7 percent to 9 percent, with earnings per share from continuing operations to range between $2.60 and $2.75 per share.
In May, it forecast adjusted earnings of $2.50 to $2.66 per share from continuing operations, with revenue down 9 percent to 12 percent.
Shares closed down 2.25 percent to $38.31 on the New York Stock Exchange.
(Reporting by Alexandria Sage. Editing by Robert MacMillan)
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