It's been a while since those days in the late '70s and early '80s when certain brands of jeans implied status, and "Calvins" was high on the list. It's also been a while since the provider of Calvin Klein jeans and intimate apparel, Warnaco Group
Warnaco's net loss came in at $4.1 million, or $0.09 per share, from $59.5 million, or $1.12 per share. The company reported an operating profit of $10.7 million, or $0.23 per share, compared to a loss of $54.8 million, or $1.03 per share, last year. (Last year's figures reflected its continued reorganization efforts as it emerged from bankruptcy.) It indicated lower expenses were also a boost to results. Meanwhile, Warnaco's total sales drooped to $337.4 million from $339.1 million.
In addition to the Calvin Klein array of apparel, Warnaco is also behind the Speedo brand of bathing suits. Other well-known brands in its repertoire include JLO by Jennifer Lopez lingerie, as well as the Warner's and Olga lines of intimate apparel.
According to last year's 10-K, Warnaco's customers run the gamut when it comes to pricing, and include Federated Department Stores
Denim's been darn difficult lately; just ask Levi Strauss. Between the loads of competing brands and the range of high- and low-end distributors, jeans manufacturers have a right to be blue. Meanwhile, in the intimate-apparel sector, there's a ton of heavy competition, including one of the strongest names in undergarments: Limited's
Today's peak price of $19.39 gave Warnaco shares a new 52-week high to try on. Warnaco said it expects modest revenue growth and slowly improving margins going forward. The company does boast a cadre of well-known brands; however, given Warnaco's previous difficulties, competition and the changing climate of retail still make the stock seem an uncomfortable fit for now.
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Alyce Lomax does not own shares of any companies mentioned.