warnaco group wrc january 2009 presentation
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8/14/2019 Warnaco Group WRC January 2009 Presentation
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Forward Looking Statements Certain statements in the following presentation regarding Warnacos
business operations may constitute forward looking statements as
defined by the Securities and Exchange Commission.
Such statements are not historical facts, but are predictions about thefuture which inherently involve risks and uncertainties, and these risks
and uncertainties could cause actual results to differ from those containedin the forward looking statements.
We urge investors to read the descriptions and discussions of these risks
that are contained on slide 12 of this presentation as well as in theCompanys annual and quarterly SEC filings.
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Strategy
Maximize profitability and sales by leveraging
our business and brands through:
Growth of Calvin Klein businesses
Geographic expansion
Direct to consumer initiatives
Operational excellence
Align costs to reflect todays economic conditions
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Calvin Klein Worldwide
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Calvin Klein $1.2 billion dollar brand in 2007
9MOS 08 Calvin Klein revenue growth 28%
9MOS 08 Net Revenues $1.2 billion
9MOS 08 Operating margins 17.4%
Calvin Klein
Underwear, $515
Calvin Klein Jeans,
$650
Calvin Klein
Accessor ies , $54
Calvin Klein Swim,
$23
Amounts in millions
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Calvin Klein Jeans
9MOS 08 Net revenues: $736 million
Operating margin*: 14.5%
Priorities and Opportunities:
YTD revenue growth >30%
Expand direct to consumer
Maximize accessories opportunity
Focus on lifestyle
Leverage global operating platform
*Operating margin excludes shared service expense, restructuring expense and other items
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Calvin Klein Underwear
9MOS 08 Net revenues: $411 million
Operating margin*: 22.8%
Priorities and Opportunities:
YTD revenue growth 23%
Increase market share
Expand geographically
Extend direct to consumer
*Operating margin excludes shared service expense and restructuring expense
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International Opportunities
9MOS 08 Net revenues: $875 million
Operating margin*: 16.0%
Priorities & Opportunities
Revenues up 35%
Continue expansion
(~50% of Total Company revenues)
Leverage regional and country platforms
Grow direct-to-consumer network
Expand geographic reach to developing markets
*Operating margin includes shared services expense and excludes restructuring expenseprimarily related to the exit of the Calvin Klein Collection business.
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Direct-to-Consumer 9MOS 08 Net revenues: $321 millionOperating margin: 11.2%
Priorities & Opportunities:
Revenues up 34%
4 wall profitability in excess of 20%
Over 840 direct to consumer locations
Added 80,000 sq ft of retail space YTD
Will add additional 20,000 by year-end
Expect to add another 100,000 sq ft of retailspace in 2009 (>20%)
Drive revenues generated through direct-to-consumer toward 25% of total
E-Commerce
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Heritage Businesses
9MOS 08 Net revenues: $445 million
Operating margin*: 14.3%
Priorities and Opportunities:
Revenues up 2%
Operate for profitability
Capitalize on Olympic opportunity
Protect leadership position
Balance service and inventory risk
Improve operating margins
*Operating margin excludes shared services expense and restructuring expense
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Financial Strength Balance SheetCash and cash equivalents as of October 4,2008
were $123 million compared to $189 million as of
September 29, 2007
Used $76 million in the 3Q08 to reduce long-term debt
Net leverage ratio less than .5x at October 4, 2008
Repurchased approximately 1 million shares ofcommon stock during the fourth quarter.
Approximately 1.5 million shares remain under2007 authorization
Net inventories were $316 million at quarter-end,
down from $340 million last year
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Summary
Strong brands
Organic growth opportunities
Strong financial position
Focused on creating long-term shareholder value
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