Barclays Maintains an 'Overweight' on Warnaco Group (WRC); Review of 1Q11

Barclays maintains an 'Overweight' on Warnaco Group (NYSE: WRC), PT $65.

Barclays analyst says, "Warnaco reported adjusted 1Q11 EPS of $1.10, $0.10 below our estimate and $0.18 below consensus: While sales trends continue to remain strong and were better-than-expected, margins were impacted by several near-term factors...Revenue increased 12.6% to $662.2 million (vs. our $641.1 million estimate), driven by continued strength in the Calvin Klein business...Gross margin declined 80 basis points to 44.6% (vs. our 45.4% estimate)...Despite downside to our estimate this quarter, given an increase in expectations for full year top-line growth and the current exchange rate, we are maintaining our 2011 and 2012 EPS estimates of $4.05 and $4.60, respectively."

For more ratings news on Warnaco Group click here and for the rating history of Warnaco Group click here.

Shares of Warnaco Group closed at $61.88 yesterday.

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