85
Fashion Jobs
ADIDAS
Senior Director Product Creation Ftw
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Corporate Affairs & Reputation Manager - Corporate Affairs & Engagement
Permanent · HO CHI MINH CITY
JO MALONE LONDON
Education Manager, Jml/lm
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Senior HR Operations Executive/ Assistant Manager
Permanent · HO CHI MINH CITY
ADIDAS
Key Account Manager (Franchise)
Permanent · HO CHI MINH CITY
ADIDAS
Senior Manager, Commercial, Adigolf, Vietnam 1
Permanent · HO CHI MINH CITY
ADIDAS
Key Account Manager 1 (Franchise)
Permanent · HO CHI MINH CITY
COLUMBIA
lo Costing & Engineering Manager
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Category Manager - Cpd
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Business Planning Manager - Cpd
Permanent · HO CHI MINH CITY
ADIDAS
Senior Manager Product Creation (Sportwear)
Permanent · HO CHI MINH CITY
L'OREAL GROUP
Product Manager - Shu Uemura
Permanent · HO CHI MINH CITY
ADIDAS
Manager, Quality Product Integrity
Permanent · HO CHI MINH CITY
TAPESTRY
Manager, Manufacturing Engineer
Permanent · HO CHI MINH CITY
SPECIALIZED
Painting Quality Engineer - Bình Dương, Vietnam
Permanent ·
ON RUNNING
Social Compliance Specialist - Hcm Based
Permanent · HO CHI MINH CITY
ADIDAS
Senior Manager, Sourcing Operations
Permanent · HO CHI MINH CITY
WILLIAMS SONOMA
Wood Sustainability Specialist - (Global)
Permanent · THUẬN AN
PUMA
Manager Quality Apparel & Accessories
Permanent · HO CHI MINH CITY
PUMA
Senior Executive, Finance
Permanent · HO CHI MINH CITY
PUMA
Head of Quality Footwear
Permanent · HO CHI MINH CITY
PUMA
Quality Engineer Cobra
Permanent · HO CHI MINH CITY
By
Reuters
Published
Mar 1, 2011
Reading time
2 minutes
Download
Download the article
Print
Text size

Warnaco outlook below estimates, shares down

By
Reuters
Published
Mar 1, 2011

Warnaco Group Inc forecast full-year earnings that fell short of estimates as the maker of Calvin Klein underwear and jeans faces high product costs, and its shares fell as much as 6 percent.

Warnaco
Calvin Klein underwear, manufactured by Warnaco

Warnaco, like most other clothes manufacturers, is fighting rising cost of products, specially cotton. Many of them have decided to pass on the costs to shoppers and safeguard margins by raising prices.

The company, which also licenses brands such as Chaps and Speedo, said it has been raising prices through the quarter, mostly at its international segment.

"We believe in the international markets we should not really see much difficulty in the higher prices," a company executive said in a call with analysts.

Sales at the Calvin Klein brand, its main growth engine, rose 18 percent during the quarter. In 2010, Calvin Klein revenue rose 14 percent to $1.7 billion and represented about 74 percent of total revenue.

For the November-January quarter, Warnaco saw gross margins drop 80 basis points, mostly due to lower margins at its domestic business.

To offset the slowdown in its home market, Warnaco has been expanding internationally, with Latin America and Asia emerging as key areas of growth.

In 2010, sales at the company's higher margin international business rose 17 percent and accounted for a little more than half of the its overall revenue.

Warnaco, which often guides conservatively, expects to earn $3.85-$4.05 a share on an adjusted basis, while analysts were expecting earnings of $4.09 a share.

On a conference call with analysts, the company said it was "better positioned to address supply chain cost pressures", and that comparable sales were up 12 percent so far in the first quarter.

For the fourth quarter, the company's adjusted earnings were 74 cents a share. Analysts were expecting 71 cents a share, according to Thomson Reuters I/B/E/S.

Sales rose 17 percent to $591.5 million, compared with estimates of $576.5 million.

Shares of the company were down 3 percent at $57 Monday after the bell. They closed at $58.71 on Monday on the New York Stock Exchange.

(Reporting by Nivedita Bhattacharjee and NR Sethuraman; Editing by Saumyadeb Chakrabarty)

© Thomson Reuters 2024 All rights reserved.