The Warnaco Group, Inc. today announced that it has been conducting a comprehensive business review of its European-based operations with the aim of better positioning the Company for future growth and improved profitability. The action is being undertaken in light of challenging macroeconomic conditions in Europe and the recently announced transition out of its European cK bridge apparel and accessories businesses.
Warnaco anticipates the review will result in a restructuring of the European business. While early in the process, Warnaco expects the review will identify considerable cost savings and operating efficiencies, and will, over time, result in improved profitability.
Helen McCluskey, President and Chief Executive Officer of the Warnaco Group, said, “Our Calvin Klein Jeans and Calvin Klein Underwear businesses are powerful and continue to resonate with European consumers. We expect these actions will enable the Company to better execute against our strategic plans. We will provide an update on our European performance and the status of the review process on our second quarter investor call.”