Warnaco Group international revenues down 3%, aims for improvements

By Sahara Marte

New York, June 5 - Warnaco Group, Inc. seeks organizational changes to improve its tough first quarter and handle the challenging macroeconomic conditions of southern Europe, Martha Olson, group president of intimate apparel and swimwear, said at the 32nd annual Piper Jaffray consumer conference.

Warnaco Group reported revenues below its expectations for the first quarter. International revenues were down 3% and Calvin Klein revenues were down 7%.

When asked about the global and domestic environment of the industry, Olson responded: "It's a mature market, it's a tougher market, but our bookings are actually up. That's always a good sign in terms of what we should expect as the year progresses. So it's in line with what we're projecting our sales to be."

The Chinese market was responsible for 30% of the company's revenues, said Lawrence Rutkowski, executive vice president and chief financial officer.

Warnaco Group is focused on optimizing performance by improving conversion rates, enhancing visual merchandise, and creating in-store marketing efforts. The company believes that these improvements will boost revenues and restore operating margins to double digits, as in 2010, Rutkowski said.

Warnaco Group is a New York-based manufacturer of intimate apparel, sportswear and swimwear.

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