Feb 26, 2009
Warnaco Q4 profit beats Street on lower costs
Feb 26, 2009
* Q4 adj EPS from cont ops $0.29 beats Street by 11 cents
* Cost cuts aid Q4
* Q4 revenue trails Street
* Gives 2009 outlook
Feb 26 (Reuters) - Apparel maker Warnaco Group Inc (WRC.N) on Thursday reported a higher-than-expected quarterly profit as its cost-cutting efforts bore fruit.
Last November, Warnaco announced plans to cut about 7 percent of its corporate staff and reduce its capital spending to counter the weak economy.
The maker of Speedo swimsuits and Calvin Klein jeans posted a fourth-quarter loss from continuing operations of $12.4 million, compared with a profit of $20.4 million a year earlier.
Net revenue at the New York-based company, which is a major vendor to department stores, fell 4 percent to $445.9 million.
For 2009, based on current exchange rates, the company expects the impact of foreign currency exchange to lower net revenue by 7 percent to 9 percent.
As a result, Warnaco sees earnings from continuing operations in the range of $2.40 to $2.66 a share for the period. Analysts expected $2.43, before items, according to Reuters Estimates.
Warnaco shares closed at $20.02 Wednesday on the New York Stock Exchange. (Reporting by Dhanya Skariachan in Bangalore; Editing by Deepak Kannan)
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