I would do a short term trade until Thursday's CC. It's after the close. It may bounce back to $3. However, news ain't that bad and they have personel in place for a turnaround in 2001.
Warnaco Stock Falls After Warning
By Jean Scheidnes
NEW YORK (Reuters) - Shares of Warnaco Group Inc. (NYSE:WAC - news) fell 53 percent on Tuesday after the apparel maker postponed releasing results and warned it will post a wider 2000 fiscal-year loss than previously forecast.
The stock was down $2.22 at $1.98 in New York Stock Exchange (news - web sites) trading by midday on Tuesday, the day the maker of Calvin Klein jeans and Speedo swimwear was scheduled to report its fourth-quarter and fiscal-year results.
The company postponed the report, warning instead its full-year net loss will be ``substantially greater'' than the 30 cents per share it had forecast.
``There was no indication as to what is contributing to the wider loss,'' said apparel analyst Harvey Robinson with Chapman Co., a Baltimore-based brokerage firm.
Analysts said the apparel market has suffered from shrinking distribution channels, competition from private label brands, softness in retail sales and department store closings.
``They're really being hit by a cross current of slower purchases by their big retail customers, at the same time that apparel prices have declined. There is a lot of deflation in apparel,'' stemming from cotton commodity deflation and imports, said analyst Richard Hastings of Global Credit Services, a retail industry credit rating firm.
In addition to the problems of the apparel industry, Warnaco has incurred litigation costs from its highly publicized legal battle with fashion group Calvin Klein Inc.
Warnaco's battered stock recovered some losses after settling with Calvin Klein in late January. It traded just below $6 in mid February, but on Tuesday it fell back to pre-settlement levels. The stock's 52-week range is between $1.25 and $11.875. |
