Warnaco Warns of Lower Fiscal ’99 Profit

Warnaco Group Inc., the biggest maker of Calvin Klein apparel, warned that fiscal 1999 profit will miss estimates, partly because several customers filed for bankruptcy or were bought. The company said it will earn about $1.90 a share for the year, well below the $2.42 average estimate of analysts surveyed by First Call/Thomson Financial. The New York-based company didn’t identify the customers it lost. The loss forced Warnaco to mark down prices on its intimate apparel and Calvin Klein underwear and jeans. Profit was hurt further by start-up and training costs at a plant in Mexico and weak sales of Calvin Klein children’s jeans, Warnaco said. The company also said it won’t take any charges for this month’s $540-million acquisition of Authentic Fitness Corp., which makes Speedo swimsuits, jackets and cycling gear. The company gave a more optimistic outlook for fiscal 2000, saying it expects earnings to rise about 25% from 1999, boosted by the Authentic Fitness acquisition. Warnaco shares gained 5 cents to close at $11.88 on the NYSE. They’ve lost more than half of their value this year.

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