NEW YORK (AP) â¿¿ Warnaco Group Inc., the parent company of high-end clothing brands like Calvin Klein and Speedo, announced Monday that it is reviewing its European operations and expects to restructure the businesses there.
The move was spurred "in light of challenging macroeconomic conditions in Europe," Warnaco said. It expects to cut costs with the aim of fueling future profits and growth.
Companies of all stripes are concerned about Europe, where many countries are in recession or teetering near it, unemployment is high and governments are being forced to rein in long-held habits of big spending. Retailers are worried that customers there won't have as much money to spend. Banks are worried about investments there.
Warnaco's European revenue fell 13 percent in the January-March quarter, while overall revenue fell 7 percent. Europe made up about a quarter of the company's total revenue in the first three months of the year.Helen McCluskey, who became Warnaco CEO in February when her predecessor retired, said in a statement that Calvin Klein jeans and underwear brands "are powerful and continue to resonate with European consumers." But accessories have been less so. Warnaco is giving up the Calvin Klein accessories business in Europe after failing to meet minimum sales requirements in 2010 and 2011 from CKI, the company that licenses the Calvin Klein brand. Warnaco said it will provide more information when it releases second-quarter results, which will likely be in early August.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV