Authentic Will Focus on Its Speedo Stores

Authentic Fitness Corp. reported a loss Thursday and said it will leave the ski wear and discount outlet businesses to focus on its successful Speedo Authentic Fitness store chain and designer swimwear.

The Los Angeles-based company posted a loss of $36.1 million, or $1.77 a share, in the fourth quarter ended July 6. That contrasts with a profit of almost $7 million, or 32 cents, in the year-ago period. Revenue fell to $90.5 million from $97.4 million.

For the fiscal year, Authentic Fitness had a loss of $40.9 million, or $2.08 a share, contrasted with a profit of $19.5 million, or 90 cents, in fiscal 1995. Revenue rose to $309.6 million from $266.1 million.

The results include fourth-quarter pretax charges of $15.5 million to leave the ski wear business and $2 million to terminate a merger agreement with Warnaco Group Inc. in July.

Authentic Fitness also took a pretax charge of $12.4 million in the quarter to close four of its Catalina Swimwear Outlet stores, which sell close-out swimwear, and to transfer the leases for the remaining four Catalina outlets to Warnaco.

Authentic Fitness’ stock fell 87.5 cents Thursday to close at $11 on the New York Stock Exchange.

Net sales for the Speedo brand rose to $162 million for the year ended July 6 from $144 million in the previous year, boosted by its visibility at the Olympic Games in Atlanta, the company said.

The designer swimwear business, including the Anne Cole, Catalina, Cole of California and Oscar de la Renta brands, saw sales grow to $80.7 million from $68.6 million in fiscal 1995.

The retail division, which includes the growing chain of Speedo Authentic Fitness stores, saw net sales grow to $38.1 million from $20.4 million over the fiscal year. The division operates 114 stores and plans to open 30 more before Christmas, the company said.

The Speedo division’s operating results had been hurt by the bankruptcy of Herman’s World of Sporting Goods, one of Authentic Fitness’ largest customers, in May.