Warnaco Group Inc (WRC, Financial) filed Annual Report for the period ended 2011-12-31.
Warnaco Grp Inc has a market cap of $2.4 billion; its shares were traded at around $59.06 with a P/E ratio of 16 and P/S ratio of 1. Warnaco Grp Inc had an annual average earning growth of 26.2% over the past 10 years.
Selling, General and Administrative (SG&A) expenses increased $86.6 million to $844.7 million (33.6% of net revenues) for Fiscal 2011 compared to $758.0 million (33.0% of net revenues) for Fiscal 2010. SG&A for Fiscal 2011 includes an increase of $28.1 million due to the unfavorable effects of foreign currency fluctuations, including a total of $7.7 million of additional expense due to foreign exchange losses noted below in administrative expenses for the Sportswear Group, the Intimate Apparel Group and for Corporate activities.
Swimwear Group net revenues increased $6.2 million to $257.7 million for Fiscal 2010 from $251.5 million Fiscal 2009. Swimwear Group net revenues from international operations increased $5.7 million and from domestic operations increased $0.5 million. The increase in international net revenues includes a $1.9 million increase due to the favorable effect of fluctuations in foreign currency exchange rates. See Overview, above. Comparable store sales declined 2.2% for Fiscal 2010 compared to Fiscal 2009 in the Swimwear Group.
Sportswear Group operating income increased $24.8 million, or 20.9%, reflecting increases of $15.2 million, $5.2 million and $4.4 million in the Calvin Klein Jeans wholesale, Calvin Klein Jeans retail and Chaps businesses, respectively. The increase in Sportswear operating income reflects an $83.4 million increase in gross profit, partially offset by a $58.6 million increase in SG&A (including amortization of intangible assets) expenses. The increase in SG&A expenses primarily reflects increases in Europe, Asia and Mexico and Central and South America due to store openings, increased distribution costs related to increased sales volume and the unfavorable effects of foreign currency fluctuations.
Working capital changes for Fiscal 2010 included cash outflows of $33.1 million related to accounts receivable (due to increased sales in December 2010 compared to December 2009 and the timing of payments), $62.5 million related to inventory (to support the Companys growth expectations for Fiscal 2011 and for certain early purchases of product) and $22.1 million related to prepaid expenses and other assets (primarily related to prepaid advertising and royalty expenses), partially offset by cash inflows of $55.2 million related to accounts payable, accrued expenses and other liabilities (due to the timing of payments for purchases of inventory) and $20.9 million related to accrued income taxes.
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Warnaco Grp Inc has a market cap of $2.4 billion; its shares were traded at around $59.06 with a P/E ratio of 16 and P/S ratio of 1. Warnaco Grp Inc had an annual average earning growth of 26.2% over the past 10 years.
Highlight of Business Operations:
Gross profit was $1.10 billion, or 43.8% of net revenues, for Fiscal 2011 compared to $1.02 billion, or 44.4% of net revenues, for Fiscal 2010. The $81.0 million (8.0%) increase in gross profit was primarily related to growth in the Companys retail businesses and increases in the Companys wholesale businesses in Asia and Mexico, Central and South America, partially offset by declines in the domestic and European Sportswear and Intimate Apparel wholesale businesses. During Fiscal 2011, certain of the Companys businesses, particularly in the U.S., Asia and Europe, experienced an increase in product and freight costs which negatively affected gross margins. The Company was able to partially mitigate the cost increases in certain Asian markets by selectively increasing the selling prices of its goods. Gross profit for Fiscal 2011 includes an increase of $22.7 million due to the favorable effects of foreign currency fluctuations.Selling, General and Administrative (SG&A) expenses increased $86.6 million to $844.7 million (33.6% of net revenues) for Fiscal 2011 compared to $758.0 million (33.0% of net revenues) for Fiscal 2010. SG&A for Fiscal 2011 includes an increase of $28.1 million due to the unfavorable effects of foreign currency fluctuations, including a total of $7.7 million of additional expense due to foreign exchange losses noted below in administrative expenses for the Sportswear Group, the Intimate Apparel Group and for Corporate activities.
Swimwear Group net revenues increased $6.2 million to $257.7 million for Fiscal 2010 from $251.5 million Fiscal 2009. Swimwear Group net revenues from international operations increased $5.7 million and from domestic operations increased $0.5 million. The increase in international net revenues includes a $1.9 million increase due to the favorable effect of fluctuations in foreign currency exchange rates. See Overview, above. Comparable store sales declined 2.2% for Fiscal 2010 compared to Fiscal 2009 in the Swimwear Group.
Sportswear Group operating income increased $24.8 million, or 20.9%, reflecting increases of $15.2 million, $5.2 million and $4.4 million in the Calvin Klein Jeans wholesale, Calvin Klein Jeans retail and Chaps businesses, respectively. The increase in Sportswear operating income reflects an $83.4 million increase in gross profit, partially offset by a $58.6 million increase in SG&A (including amortization of intangible assets) expenses. The increase in SG&A expenses primarily reflects increases in Europe, Asia and Mexico and Central and South America due to store openings, increased distribution costs related to increased sales volume and the unfavorable effects of foreign currency fluctuations.
Working capital changes for Fiscal 2010 included cash outflows of $33.1 million related to accounts receivable (due to increased sales in December 2010 compared to December 2009 and the timing of payments), $62.5 million related to inventory (to support the Companys growth expectations for Fiscal 2011 and for certain early purchases of product) and $22.1 million related to prepaid expenses and other assets (primarily related to prepaid advertising and royalty expenses), partially offset by cash inflows of $55.2 million related to accounts payable, accrued expenses and other liabilities (due to the timing of payments for purchases of inventory) and $20.9 million related to accrued income taxes.
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