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Published
May 9, 2011
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Warnaco posts 13% sales growth

Published
May 9, 2011

It seems like a number of companies are doing better than they expected. After Adidas, it was Arnaco’s turn to raise its annual forecast. The American group, owner of Calvin Klein Jeans and Speedo, is counting on a 9 to 10% growth for 2011. The company had initially predicted it to be between 7 and 9%.

Warnaco


This announcement follows a positive first quarter performance. During this period, ended April 2nd, net sales rose 12.6% to 455 million euros (662 million dollars). At a constant exchange rate, growth came to 10.9%. In Europe, sales increased 6.8% to 116 million euros, while operating profit fell 73% to around 3 million. The United States and Asia also saw a rise in sales, +5.3% and +26.5% respectively. The sportswear sector (Calvin Klein Jeans and Chaps) registered an 8.9% growth in sales and a fall in operating profit of more than 12% to 47 million.

“Calvin Klein revenues increased 13%, international revenues were up 19% and we increased our direct-to-consumer revenues 36%. Comparable store sales rose 8%. “While first-quarter revenues were strong, operating results were impacted by increased expense related to our direct-to-consumer expansion and incremental marketing expense,” explained Joe Gromek, Warnaco4S CEO.

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