Bloomberg News

Warnaco Says Beijing Olympics to Boost Speedo Sales

April 09, 2008

Warnaco Group Inc. (WRNC:US), the maker of Calvin Klein and Olga underwear, said the Beijing Olympics will probably increase sales of its Speedo swimsuits.

``We typically see a 5 to 10 percent boost from the Olympics and all of the press that's involved in that,'' Chief Executive Officer Joe Gromek said today in a Bloomberg television interview.

The Olympic games will start in August. Pro-Tibet demonstrators have disrupted the Olympic torch relay in London and Paris as the flame travels toward China.

Gromek said business in the U.S. is ``a bit more challenging, but on a global basis, we're actually doing quite nicely.''

Costs are rising 5 percent, especially because of the increasing price of oil used in synthetic fabrics, Gromek said.

Warnaco fell 44 cents to $42.76 at 9:46 a.m. in Nasdaq Stock Market composite trading. The stock rose 23 percent this year through yesterday.

To contact the reporter on this story: Thomas Mulier in Geneva at tmulier@bloomberg.net.

To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net


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