UPDATE 2-Warnaco misses Street target by penny, ups outlook

* Q2 adjusted EPS 48 cents vs Street's 49 cents

* Q2 revenue down 9 pct

* Sees fiscal 2009 EPS $2.60-$2.75, revenue down 7-9 pct

* Shares down 2.6 pct (Adds executive comments, revenue detail, estimates, byline; updates shares)

By Alexandria Sage

SAN FRANCISCO, Aug 11 (Reuters) - Warnaco Group Inc (WRC.N) reported a slightly lower-than-expected quarterly profit on Tuesday, as foreign currency fluctuations and more promotions took a toll on the clothing makers' sales.

Warnaco -- whose owned and licensed brands include Warner's, Speedo, Olga and Calvin Klein -- raised its full-year profit and sales outlook, citing international growth, but the midrange of the profit forecast lagged Wall Street targets and its shares fell 2.6 percent after hours.

Net income from continuing operations in its second quarter was $18.67 million, or 40 cents per share, compared with $19.5 million, or 56 cents per share, a year earlier.

Excluding restructuring and pension costs and tax-related items, earnings per share were 48 cents, a penny below the 49 cents per share expected, on average, by Wall Street analysts, according to Reuters Estimates.

Sales fell 9 percent to $455.9 million, above the $425.69 million expected by analysts. On a constant currency basis, sales fell 0.5 percent.

Double-digit growth in Latin America and Asia helped international sales rise 8 percent on a constant currency basis. But a shift in the recording of sales in the first quarter, rather than later, hurt domestic sales, the company said.

Gross margin declined 320 basis points in the quarter due to currency fluctuations, more markdowns, and more sales from lower-margin goods, the company said.

"We continue to believe the power of the Calvin Klein brand and the strength of our global operating platform provide us with distinct, competitive advantages and positions us to realize increased revenue and profits as the economy stabilizes," said Chief Executive Joe Gromek on a call with analysts.

Ongoing measures to cut costs and streamline operations are expected to benefit results in the second half of 2009, said Chief Financial Officer Larry Rutkowski.

New York-based Warnaco forecast that fiscal 2009 revenue will fall 7 percent to 9 percent, with earnings per share from continuing operations of $2.60 to $2.75 per share.

Analysts, on average, have been expecting earnings of $2.72, with revenue falling about 8.4 percent, according to Reuters Estimates.

Warnaco's earlier 2009 forecast was for adjusted earnings of $2.50 to $2.66 per share from continuing operations, with revenue down 9 percent to 12 percent.

Warnaco shares fell 2.6 percent to $37.30 after closing 2.25 percent lower at $38.31 on the New York Stock Exchange.

(Reporting by Alexandria Sage; Editing by Robert MacMillan and Richard Chang)