Apparel group The Warnaco Group Inc has reported results for the fourth quarter and full year ended December 31st 2005.
During the fourth quarter of fiscal 2005, net revenues fell 3.2 percent to $362.5 million from $374.4 million in the prior year period, gross profit margin increased 150 basis points to 35.0 percent of net revenues and net income declined to $9.4 million from $16.2 million, and the company informed 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 31st 2006).
In fiscal 2005, the net revenues rose 5.6 percent to $1.50 billion from $1.42 billion in fiscal 2004, gross profit margin increased 70 basis points to 33.9 percent of net revenues and net income increased 22.4 percent to $52.1 million from $42.5 million for fiscal 2004.
Joe Gromek, Warnaco's President and CEO, said, "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(R) brand), and an increase in higher margin international sales as a percentage of total business."
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