Warnaco Reports Third Quarter 2009 Results

http://www.businesswire.com/news/home/20091104005650/en

Company Raises Adjusted Fiscal 2009 Guidance
NEW YORK--(Business Wire)--
The Warnaco Group, Inc. (NYSE: WRC) today reported results for the third quarter
ended October 3, 2009.

For the third quarter:

* Net revenues were $520.9 million, down 5% from the prior year quarter
* Net revenues, on a constant currency basis, fell less than 1% compared to the
prior year quarter
* Gross margin decreased 260 basis points to 44% of net revenues
* Selling, general & administrative (SG&A) expense, as a percent of net
revenues, declined 550 basis points to 32%
* Operating income was $60.3 million, or 12% of net revenues, compared to $48.0
million, or 9% of net revenues, in the prior year quarter
* Income per diluted share from continuing operations was $0.66 compared to
$0.62 in the prior year quarter, and the Company`s reported tax rate was 40%
compared to 31% in the prior year quarter.
* Adjusted, non-GAAP income per diluted share from continuing operations (as
detailed in the accompanying tables) was $0.75 compared to $0.72 for the prior
year quarter
* GAAP and non-GAAP income per diluted share from continuing operations were
negatively affected by a $3.6 million charge, or $0.05 per diluted share,
associated with inventory write-downs related to racing swimwear that has been
banned from use in competition.
* Net inventories were down 11% and cash and cash equivalents were up $100
million on a year-over-year basis.

The accompanying tables provide a reconciliation of actual results to the as
adjusted results.

The Company believes it is valuable for users of the Company`s financial
statements to be made aware of the as adjusted financial information, as such
measures are used by management to evaluate the operating performance of the
Company's continuing businesses on a comparable basis.

"Our strong third quarter results, in the midst of a challenging environment,
reflect the continuing positive contribution of our long-term growth
initiatives," stated Joe Gromek, Warnaco`s President and Chief Executive
Officer. "During the quarter, our global expansion of Calvin Klein® continued as
total international revenues rose 6% in constant currency over the prior year
quarter, accounting for 61% of our total revenues. Also, our direct-to-consumer
initiative continued to advance as we opened 40 new points of distribution and
remain on track to grow square footage by over 20%, or an additional 120,000
square feet, this year. Our growth at wholesale and retail, coupled with expense
and inventory management across all channels, contributed to a 280 basis point
increase in operating margin and adjusted income per share from continuing
operations that surpassed the prior year quarter."

Mr. Gromek continued, "We are off to a strong start to the fourth quarter and
are encouraged and optimistic about the prospects for growth as we end 2009 and
move into 2010. As a result, we have raised our annual guidance. Our disciplined
efforts to control expense and manage working capital have yielded great success
with year-over-year inventory reductions of $34 million, contributing to cash on
hand of $229 million, an increase of over $100 million. We are confident that
our global platform together with this strong cash position and solid balance
sheet will afford us significant opportunities to enhance shareholder value."

Fiscal 2009 Outlook

For fiscal 2009, on an adjusted basis (excluding restructuring expense and
certain tax related items and assuming minimal pension income):

* The Company now anticipates net revenues will decline 3% -5% and expects
constant dollar net revenues to increase 1%-2%.
* Based on recent currency exchange rates, the Company now expects diluted
earnings per share from continuing operations in the range of $2.70 - $2.80
* The Company`s prior guidance was for net revenue declines in the range of
7%-9% and diluted earnings per share from continuing operations of $2.60 - $2.75
per share

The accompanying tables provide a reconciliation of expected diluted earnings
per share from continuing operations, on a GAAP basis (and based on recent
currency exchange rates) of $2.45 - $2.51 per diluted share (assuming minimal
pension income), to the adjusted fiscal 2009 outlook above.

Third Quarter Highlights

Total Company

Net revenues fell 5%, and in constant dollars fell less than 1%, compared to the
prior year quarter. Growth in almost every international region, which led to a
6% increase in constant dollars, helped to offset 10% domestic declines related
to a shift in timing of membership club sales and continued economic challenges
in the U.S. market. Ongoing expansion of the Company`s international Calvin
Klein businesses, particularly in Europe, China and Central and South America,
contributed to total international revenue growth in the mid-single digits, in
constant currency.

Gross margin decreased 260 basis points to 44% of net revenues. Gross margin was
adversely affected by currency exchange rates and a shift in revenue mix toward
lower-margin businesses. Additionally, gross margin was adversely impacted by a
$3.6 million charge related to the write-down of inventory associated with the
Company`s LZR Racer and related swimsuits, after FINA`s (competitive swimming`s
governing body) ruling banned the use of these suits in competition.

SG&A expense declined 19% to $165.7 million. SG&A as a percent of net revenues
decreased 550 basis points to 32% of net revenues. The decrease reflects the
ongoing benefit of the Company`s expense reduction initiatives and the effects
of currency exchange rates, partially offset by increased expense related to the
opening of additional retail stores. The prior year quarter also included
approximately $15.0 million of currency related expense.

Operating income increased 26% to $60.3 million, or 12% of net revenues,
compared to $48.0 million, or 9% of net revenues, in the prior year quarter.
Operating income for the third quarter of fiscal 2009 and 2008 was adversely
affected by $1.5 million and $4.2 million, respectively, of restructuring
charges and pension expense.

The Company`s reported tax rate was 39.5% compared to 31.1% in the prior year
quarter. The lower reported tax rate in the prior year period was due to a $6
million one-time tax benefit. The Company`s normalized tax rate was 33.9% for
the quarter compared to 31.9% in the prior year quarter, reflecting a shift in
earnings to jurisdictions with higher tax rates.

Income from continuing operations was $31.2 million, or $0.66 per diluted share,
compared to $29.4 million, or $0.62 per diluted share, in the prior year period.

Income from continuing operations, on an adjusted basis (excluding costs related
to restructuring expenses, pension expense and certain tax related items), as
detailed in the accompanying schedules, was $0.75 per diluted share compared to
$0.72 per diluted share in the prior year period.

The impact of foreign currency exchange rates negatively affected fiscal 2009
third quarter net revenues, gross profit, SG&A and operating income by
approximately $22.1 million, $20.8 million, $7.6 million and $13.2 million,
respectively, and decreased income from continuing operations by approximately
$9.8 million, or $0.21 per diluted share.

Segment Results

Sportswear

While Sportswear Group net revenues fell 1% to $312.9 million on a reported
basis, net revenues were up 4% on a constant currency basis. Operating income
increased 21% to $48.5 million, or 16% of Sportswear Group net revenues.
Sportswear results benefited from reductions in SG&A expense and reduced
restructuring expense partially offset by a decline in gross profit, primarily
the result of currency exchange rates. The Company continued the global
expansion of its Calvin Klein Jeans business, both at wholesale and retail,
reporting international constant currency net revenue growth approaching 12%.

Intimate Apparel

Intimate Apparel Group net revenues fell 11% to $177.8 million on a reported
basis and were down 8% on a constant currency basis. Operating margin was 18% of
Intimate Apparel Group net revenues, up 80 basis points compared to the prior
year quarter. Currency exchange rates and a challenging domestic department
store environment adversely affected net revenues of the Calvin Klein Underwear
wholesale business, and were partially offset by the continued global expansion
of Calvin Klein Underwear`s retail initiative. The results of the Intimate
Apparel Group`s Core brands were adversely affected by decreased sales in the
mid-tier channel (due to the prior year quarter benefiting from expanded
distribution) and weaker department store replenishment related to the economy.

Swimwear

Swimwear Group net revenues fell 5% to $30.2 million on a reported basis and
were down 3% on a constant currency basis. The Swimwear Segment reported an
operating loss of $7.4 million, a 27% improvement compared to the prior year
quarter. The operating loss includes a $3.6 million charge related to the recent
FINA ruling, which banned the LZR Racer and similar swimsuits from competition.
Lower sales into the Sporting goods channel, as 2008 Olympic related sales did
not recur in 2009, was the primary factor adversely affecting Swimwear Group net
revenues.

Balance Sheet

Cash and cash equivalents at October 3, 2009 rose to $229.3 million compared to
$122.9 million at October 4, 2008. At quarter-end the Company had no borrowings
under its revolvers and was in a net cash position of $20.4 million compared to
a net debt position of $124.9 million in the prior year quarter.

Accounts receivable, net, were $326.4 million at October 3, 2009, virtually
unchanged from $326.6 million at October 4, 2008.

Net inventories were down 11% to $281.2 million at October 3, 2009 compared to
$315.6 million at October 4, 2008.

"We ended the third quarter in a strong financial position. Our disciplined
execution and focus on net operational working capital, which is down $45
million compared to the prior year quarter, put us in a positive net cash
position," commented Larry Rutkowski, Warnaco`s Executive Vice President and
Chief Financial Officer. "We will continue to evaluate the best uses for our
cash to drive shareholder value."

Conference Call Information

Stockholders and other persons are invited to listen to the third quarter
earnings conference call scheduled for today, Wednesday, November 4, 2009, at
9:00 a.m. EST. To participate in Warnaco`s conference call, dial (877) 692-2592
approximately five to ten minutes prior to the 9:00 a.m. start time. The call
will also be broadcast live over the Internet at www.warnaco.com. An online
archive will be available following the call.

This press release was furnished to the SEC (www.sec.gov) and may also be
accessed through the Company`s internet website: www.warnaco.com.

ABOUT WARNACO

The Warnaco Group, Inc., headquartered in New York, is a leading apparel company
engaged in the business of designing, sourcing, marketing and selling intimate
apparel, menswear, jeanswear, swimwear, men's and women's sportswear and
accessories under such owned and licensed brands as Warner's, Olga, and Speedo,
as well as Chaps sportswear and denim, and Calvin Klein men's and women's
underwear, men`s and women`s bridge apparel and accessories, men's and women's
jeans and jeans accessories, junior women's and children's jeans and men`s and
women's swimwear.

FORWARD-LOOKING STATEMENTS

The Warnaco Group, Inc. notes that this press release, the conference call
scheduled for November 4, 2009 and certain other written, electronic and oral
disclosure made by the Company from time to time, may contain forward-looking
statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking statements involve
risks and uncertainties and reflect, when made, the Company's estimates,
objectives, projections, forecasts, plans, strategies, beliefs, intentions,
opportunities and expectations. Actual results may differ materially from
anticipated results, targets or expectations and investors are cautioned not to
place undue reliance on any forward-looking statements. Statements other than
statements of historical fact, including, without limitation, future financial
targets, are forward-looking statements. These forward-looking statements may be
identified by, among other things, the use of forward-looking language, such as
the words "believe," "anticipate," "estimate," "expect," "intend," "may,"
"project," "scheduled to," "seek," "should," "will be," "will continue," "will
likely result," "targeted", or the negative of those terms, or other similar
words and phrases or by discussions of intentions or strategies.

The following factors, among others and in addition to those described in the
Company's reports filed with the SEC (including, without limitation, those
described under the headings "Risk Factors" and "Statement Regarding
Forward-Looking Disclosure," as such disclosure may be modified or supplemented
from time to time), could cause the Company's actual results to differ
materially from those expressed in any forward-looking statements made by it:
the Company's ability to execute its repositioning and sale initiatives
(including achieving enhanced productivity and profitability) previously
announced; economic conditions that affect the apparel industry, including the
recent turmoil in the financial and credit markets; the Company's failure to
anticipate, identify or promptly react to changing trends, styles, or brand
preferences; further declines in prices in the apparel industry; declining sales
resulting from increased competition in the Company`s markets; increases in the
prices of raw materials; events which result in difficulty in procuring or
producing the Company's products on a cost-effective basis; the effect of laws
and regulations, including those relating to labor, workplace and the
environment; changing international trade regulation, including as it relates to
the imposition or elimination of quotas on imports of textiles and apparel; the
Company`s ability to protect its intellectual property or the costs incurred by
the Company related thereto; the risk of product safety issues, defects or other
production problems associated with our products; the Company`s dependence on a
limited number of customers; the effects of consolidation in the retail sector;
the Company`s dependence on license agreements with third parties; the Company`s
dependence on the reputation of its brand names, including, in particular,
Calvin Klein; the Company`s exposure to conditions in overseas markets in
connection with the Company`s foreign operations and the sourcing of products
from foreign third-party vendors; the Company's foreign currency exposure; the
Company`s history of insufficient disclosure controls and procedures and
internal controls and restated financial statements; unanticipated future
internal control deficiencies or weaknesses or ineffective disclosure controls
and procedures; the effects of fluctuations in the value of investments of the
Company`s pension plan; the sufficiency of cash to fund operations, including
capital expenditures; the Company's ability to service its indebtedness, the
effect of changes in interest rates on the Company's indebtedness that is
subject to floating interest rates and the limitations imposed on the Company's
operating and financial flexibility by the agreements governing the Company's
indebtedness; the Company`s dependence on its senior management team and other
key personnel; the Company`s reliance on information technology; the limitations
on purchases under the Company's share repurchase program contained in the
Company's debt instruments, the number of shares that the Company purchases
under such program and the prices paid for such shares; the Company`s inability
to achieve its financial targets and strategic objectives, as a result of one or
more of the factors described above, changes in the assumptions underlying the
targets or goals, or otherwise; the failure of acquired businesses to generate
expected levels of revenues; the failure of the Company to successfully
integrate such businesses with its existing businesses (and as a result, not
achieving all or a substantial portion of the anticipated benefits of such
acquisitions); and such acquired businesses being adversely affected, including
by one or more of the factors described above and thereby failing to achieve
anticipated revenues and earnings growth.

The Company encourages investors to read the section entitled "Risk Factors" and
the discussion of the Company's critical accounting policies under "Management's
Discussion and Analysis of Financial Condition and Results of Operations --
Discussion of Critical Accounting Policies" included in the Company's Annual
Report on Form 10-K, as such discussions may be modified or supplemented by
subsequent reports that the Company files with the SEC. The discussion in this
press release is not exhaustive but is designed to highlight important factors
that may affect actual results. Forward-looking statements speak only as of the
date on which they are made, and, except for the Company's ongoing obligation
under the U.S. federal securities laws, the Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

Schedule 1
THE WARNACO GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, excluding per share amounts)
(Unaudited)

As Reported Restructuring As Adjusted
Three Months Ended Charges and Three Months Ended
October 3, 2009 Pension (a) Taxation (c) October 3, 2009 (d)

Net revenues $ 520,905 $ - $ 520,905
Cost of goods sold (b) 292,083 (34 ) 292,049
Gross profit 228,822 34 - 228,856
Selling, general and administrative expenses 165,720 (874 ) 164,846
Amortization of intangible assets 2,278 2,278
Pension expense 566 (566 ) -
Operating income 60,258 1,474 - 61,732
Other expense (income) 761 761
Interest expense 5,899 5,899
Interest income (196 ) (196 )
Income from continuing operations before
provision for income taxes and noncontrolling interest 53,794 1,474 - 55,268
Provision for income taxes 21,246 (2,510 ) 18,736
Income from continuing operations before noncontrolling interest 32,548 1,474 2,510 36,532
Loss from discontinued operations, net of taxes (1,562 ) (1,562 )
Net Income 30,986 1,474 2,510 34,970
Less: Net income attributable to the noncontrolling interest (1,330 ) (1,330 )
Net income attributable to Warnaco Group, Inc. $ 29,656 $ 1,474 $ 2,510 $ 33,640

Amounts attributable to Warnaco Group Inc. common shareholders:
Income from continuing operations, net of tax 31,218 1,474 2,510 35,202
Discontinued operations, net of tax (1,562 ) - - (1,562 )
Net income 29,656 1,474 2,510 33,640

Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 0.68 $ 0.76
Loss from discontinued operations (0.04 ) (0.03 )
Net income $ 0.64 $ 0.73

Diluted income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 0.66 $ 0.75
Loss from discontinued operations (0.03 ) (0.03 )
Net income $ 0.63 $ 0.72

Weighted average number of shares outstanding used in
computing income per common share:
Basic 45,451,366 45,451,366

Diluted 46,419,729 46,419,729

(a) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of restructuring charges of $908 or pension expense. See note (d) below.

(b) Includes a charge of $3,556 recorded during the Three Months Ended October 3, 2009 related to the write-down of inventory associated with the Company's LZR Racer and similar swimsuits which were banned by the Federation Internationale de Natation ("FINA").
FINA is the international organization responsible for, among other things, administering swimming competitions.

(c) Adjustment to reflect the Company's income from continuing operations at a normalized tax rate of 33.9% which reflects the Company's estimated tax rate for Fiscal 2009 excluding the effects of restructuring charges, pension income, and certain other tax related items.
See Note (d) below.

(d) The "As Adjusted" statement of operations is used by management to evaluate the operating performance of the Company's continuing operations on a comparable basis. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its results to provide investors with an additional tool to evaluate the Company's operating
results.

Schedule 1a
THE WARNACO GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, excluding per share amounts)
(Unaudited)

As Reported Restructuring Other As Adjusted
Three Months Ended Charges and Items (b) Taxation (c) Three Months Ended
October 4, 2008 Pension (a) October 4, 2008 (d)

Net revenues $ 547,626 $ - $ - $ 547,626
Cost of goods sold 292,988 (281 ) 292,707
Gross profit 254,638 281 - - 254,919
Selling, general and administrative expenses 204,444 (4,137 ) (1,645 ) 198,662
Amortization of intangible assets 2,409 2,409
Pension income (203 ) 203 -
Operating income 47,988 4,215 1,645 - 53,848
Other expense (income) (1,196 ) (2,169 ) (3,365 )
Interest expense 6,853 6,853
Interest income (909 ) (909 )
Income from continuing operations before
provision for income taxes and noncontrolling interest 43,240 4,215 3,814 - 51,269
Provision for income taxes 13,465 2,941 16,406
Income from continuing operations before noncontrolling interest 29,775 4,215 3,814 (2,941 ) 34,863
Loss from discontinued operations, net of taxes (2,897 ) (2,897 )
Net Income 26,878 4,215 3,814 (2,941 ) 31,966
Less: Net income attributable to the noncontrolling interest (367 ) (367 )
Net income attributable to Warnaco Group, Inc. $ 26,511 $ 4,215 $ 3,814 $ (2,941 ) $ 31,599

Amounts attributable to Warnaco Group Inc. common shareholders:
Income from continuing operations, net of tax 29,408 4,215 3,814 (2,941 ) 34,496
Discontinued operations, net of tax (2,897 ) - - - (2,897 )
Net income 26,511 4,215 3,814 (2,941 ) 31,599

Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 0.63 $ 0.74
Loss from discontinued operations (0.06 ) (0.06 )
Net income $ 0.57 $ 0.68 (e)

Diluted income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 0.62 $ 0.72
Loss from discontinued operations (0.06 ) (0.06 )
Net income $ 0.56 $ 0.66 (e)

Weighted average number of shares outstanding used in
computing income per common share:
Basic 45,875,657 45,875,657

Diluted 47,112,635 47,112,635

(a) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of restructuring charges of $4,418
or pension income. See note (d) below.

(b) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of charges related to the
refinancing of its debt facilities, during the Three Months Ended October 4, 2008 and an additional depreciation charge of $1,645 recorded during the Three Months Ended
October 4, 2008 which amount related to the correction of amounts recorded in prior periods.
The amount was not material to any prior period. See note (d) below.

(c) Adjustment to reflect the Company's income from continuing operations at a normalized tax rate of 32% which reflects the Company's estimated tax rate for fiscal 2008
excluding the effects of restructuring charges, pension income/expense, costs related to the refinancing of its debt, an additional depreciation charge of $1,645 recorded
during the Three Months Ended October 4, 2008 (which amount related to the correction of amounts recorded in prior periods) and certain other tax related items. See note
(d) below.

(d) The "As Adjusted" statement of operations is used by management to evaluate the operating performance of the Company's continuing operations on a comparable basis.
Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in
accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its results to provide investors with an additional tool to evaluate the
Company's operating results.

(e) Effective January 4, 2009, the Company adopted the provisions of FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are
Participating Securities ("FSP EITF 03-6-1"), which clarifies that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend
equivalents are participating securities and are required to be included in the computation of both basic and diluted earnings per share. All prior period earnings per
share data are required to be adjusted retrospectively to give effect to FSP EITF 03-6-1. Consequently earnings per share data for the Three Months Ended October 4, 2008
was adjusted accordingly. The effect of the adoption of FSP EITF 03-6-1 resulted in a $0.01 decrease in both basic and diluted net income per share, on an "As Adjusted"
basis, compared to amounts previously reported.

Schedule 2
THE WARNACO GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, excluding per share amounts)
(Unaudited)

As Reported Restructuring As Adjusted
Nine Months Ended Charges and Nine Months Ended
October 3, 2009 Pension (a) Taxation (c) October 3, 2009 (d)

Net revenues $ 1,514,180 $ - $ - $ 1,514,180
Cost of goods sold (b) 871,074 (1,718 ) 869,356
Gross profit 643,106 1,718 - 644,824
Selling, general and administrative expenses 469,325 (9,235 ) 460,090
Amortization of intangible assets 6,556 6,556
Pension expense 1,697 (1,697 ) -
Operating income 165,528 12,650 - 178,178
Other expense (income) 3,156 3,156
Interest expense 17,767 17,767
Interest income (1,020 ) (1,020 )
Income from continuing operations before
provision for income taxes and noncontrolling interest 145,625 12,650 - 158,275
Provision for income taxes 54,677 (1,022 ) 53,655
Income from continuing operations before noncontrolling interest 90,948 12,650 1,022 104,620
Loss from discontinued operations, net of taxes (3,461 ) (3,461 )
Net Income 87,487 12,650 1,022 101,159
Less: Net income attributable to the noncontrolling interest (2,500 ) (2,500 )
Net income attributable to Warnaco Group, Inc. $ 84,987 $ 12,650 $ 1,022 $ 98,659

Amounts attributable to Warnaco Group Inc. common shareholders:
Income from continuing operations, net of tax 88,448 12,650 1,022 102,120
Discontinued operations, net of tax (3,461 ) - - (3,461 )
Net income 84,987 12,650 1,022 98,659

Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 1.93 $ 2.22
Loss from discontinued operations (0.08 ) (0.07 )
Net income $ 1.85 $ 2.15

Diluted income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 1.90 $ 2.19
Loss from discontinued operations (0.07 ) (0.07 )
Net income $ 1.83 $ 2.12

Weighted average number of shares outstanding used in
computing income per common share:
Basic 45,388,159 45,388,159

Diluted 46,009,417 46,009,417

(a) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of restructuring charges of $10,953 or pension expense. See note (d) below.

(b) Includes a charge of $3,556 recorded during the Three Months Ended October 3, 2009 related to the write-down of inventory associated with the Company's LZR Racer and similar swimsuits which were banned by FINA.
FINA is the international organization responsible for, among other things, administering swimming competitions.

(c) Adjustment to reflect the Company's income from continuing operations at a normalized tax rate of 33.9% which reflects the Company's estimated tax rate for Fiscal 2009 excluding the effects of restructuring charges, pension income, and certain other tax related items.
See Note (d) below.

(d) The "As Adjusted" statement of operations is used by management to evaluate the operating performance of the Company's continuing operations on a comparable basis. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its results to provide investors with an additional tool to evaluate the Company's operating
results.

Schedule 2a
THE WARNACO GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, excluding per share amounts)
(Unaudited)

As Reported Restructuring Other As Adjusted
Nine Months Ended Charges and Items (c) Taxation (d) Nine Months Ended
October 4, 2008 Pension (b) October 4, 2008 (e)

Net revenues $ 1,617,571 $ - $ - $ 1,617,571
Cost of goods sold 884,634 (1,120 ) 883,514
Gross profit 732,937 1,120 - - 734,057
Selling, general and administrative expenses 572,996 (29,615 ) (1,084 ) 542,297
Amortization of intangible assets 7,383 7,383
Pension income (785 ) 785 -
Operating income 153,343 29,950 1,084 - 184,377
Other expense 3,062 (5,329 ) (2,267 )
Interest expense 23,329 23,329
Interest income (2,513 ) (2,513 )
Income from continuing operations before
provision for income taxes and noncontrolling interest 129,465 29,950 6,413 - 165,828
Provision for income taxes 65,347 (a) (12,282 ) 53,065
Income from continuing operations before noncontrolling interest 64,118 29,950 6,413 12,282 112,763
Income from discontinued operations, net of taxes 192 192
Net Income 64,310 29,950 6,413 12,282 112,955
Less: Net income attributable to the noncontrolling interest (726 ) (726 )
Net income attributable to Warnaco Group, Inc. $ 63,584 $ 29,950 $ 6,413 $ 12,282 $ 112,229

Amounts attributable to Warnaco Group Inc. common shareholders:
Income from continuing operations, net of tax 63,392 29,950 6,413 12,282 112,037
Discontinued operations, net of tax 192 - - - 192
Net income 63,584 29,950 6,413 12,282 112,229

Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 1.38 $ 2.44
Income from discontinued operations 0.01 0.01
Net income $ 1.39 $ 2.45 (f)

Diluted income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 1.34 $ 2.37
Income from discontinued operations - -
Net income $ 1.34 $ 2.37 (f)

Weighted average number of shares outstanding used in
computing income per common share:
Basic 45,253,013 45,253,013

Diluted 46,759,628 46,759,628

(a) Includes, among other items, a non-recurring tax charge of approximately $15,500 related to the repatriation (as a dividend distribution), to the United States, of the net proceeds received in connection with the sale of the Lejaby business.

(b) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of restructuring charges or pension income. See note (e) below.

(c) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of charges of $5,329 related to the repurchase of a portion of its debt during the Nine Months Ended October 4, 2008 and
an additional depreciation charge of $1, 084 recorded during the Nine Months ended October 4, 2008 which amount related to the correction of amounts recorded in prior periods. The amount was not material to any prior period. See note (e) below.

(d) Adjustment to reflect the Company's income from continuing operations at a normalized tax rate of 32% which reflects the Company's estimated tax rate for fiscal 2008 excluding the effects of restructuring charges, pension income, costs related to the
refinancing / repurchase of its debt facilities, an additional depreciation charge of $1,084 recorded during the Nine Months Ended October 4, 2008 (which amount related to the correction of amounts recorded in prior periods) and certain other tax related
items (including a non-recurring tax charge of approximately $15,500 related to the repatriation, to the United States of the net proceeds received in connection with the sale of the Lejaby business). See note (f) below.

(e) The "As Adjusted" statement of operations is used by management to evaluate the operating performance of the Company's continuing operations on a comparable basis. Management does not, nor should investors, consider such non-GAAP financial measures in
isolation from, or as a substitution for, financial information prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its results to provide investors with an additional tool to evaluate the Company's
operating results.

(f) Effective January 4, 2009, the Company adopted the provisions of FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities ("FSP EITF 03-6-1"), which clarifies that unvested share-based
payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and are required to be included in the computation of both basic and diluted earnings per share. All prior period earnings per share data
are required to be adjusted retrospectively to give effect to FSP EITF 03-6-1. Consequently earnings per share data for the Three Months Ended April 5, 2008 was adjusted accordingly. The effect of the adoption of FSP EITF 03-6-1 resulted in a $0.02 and
$0.03 decrease in basic and diluted net income per share, respectively, on an "As Adjusted" basis, compared to amounts previously reported.

Schedule 3
THE WARNACO GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)

October 3, 2009 January 3, 2009 October 4, 2008

ASSETS
Current assets:
Cash and cash equivalents $ 229,330 $ 147,627 $ 122,904
Accounts receivable, net 326,431 251,886 326,560
Inventories 281,186 326,297 315,648
Assets of discontinued operations 2,762 6,279 7,537
Other current assets 156,698 156,777 166,487
Total current assets 996,407 888,866 939,136

Property, plant and equipment, net 119,436 109,563 108,773
Intangible and other assets 473,526 497,664 497,728

TOTAL ASSETS $ 1,589,369 $ 1,496,093 $ 1,545,637

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 45,956 $ 79,888 $ 85,331
Accounts payable and accrued liabilities 317,123 314,922 304,421
Taxes 14,933 7,447 30,133
Liabilities of discontinued operations 12,111 12,055 13,809
Total current liabilities 390,123 414,312 433,694
Long-term debt 162,976 163,794 162,456
Other long-term liabilities 119,586 129,246 112,040
Total stockholders' equity 916,684 788,741 837,447

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,589,369 $ 1,496,093 $ 1,545,637

NET CASH AND CASH EQUIVALENTS (NET DEBT) $ 20,398 $ (96,055 ) $ (124,883 )

Schedule 4

THE WARNACO GROUP, INC.
NET REVENUES AND OPERATING INCOME BY BUSINESS GROUP
(Dollars in thousands)
(Unaudited)

Net revenues: Three Months Ended Three Months Ended Increase / % Constant $
October 3, 2009 October 4, 2008 (Decrease) Change % Change (a)
Sportswear Group $ 312,942 $ 316,269 $ (3,327 ) -1.1 % 3.6 %
Intimate Apparel Group 177,773 199,724 (21,951 ) -11.0 % -7.5 %
Swimwear Group 30,190 31,633 (1,443 ) -4.6 % -2.9 %
Net revenues $ 520,905 $ 547,626 $ (26,721 ) -4.9 % -0.8 %

Three Months Ended % of Group Three Months Ended % of Group
October 3, 2009 Net Revenues October 4, 2008 Net Revenues
Operating income (loss):
Sportswear Group (b), (c) $ 48,534 15.5 % $ 40,042 12.7 %
Intimate Apparel Group (b), (c) 32,049 18.0 % 34,434 17.2 %
Swimwear Group (b), (c), (d) (7,430 ) -24.6 % (10,232 ) -32.3 %
Unallocated corporate expenses (c) (12,895 ) na (16,256 ) na
Operating income $ 60,258 na $ 47,988 na

Operating income as a percentage of
total net revenues 11.6 % 8.8 %

(a) Reflects the percentage increase (decrease) in net revenues for the Three Months Ended October 3, 2009 compared to the Three Months Ended October 4, 2008 where foreign based net revenues for the Three Months Ended October 3, 2009 are translated into U.S. dollars using the same foreign currency exchange rates that were used in the calculation of net revenues for the Three Months Ended October 4, 2008.

(b) Includes an allocation of shared services expenses as follows:
Three Months Ended Three Months Ended
October 3, 2009 October 4, 2008
Sportswear Group $ 5,067 $ 5,474
Intimate Apparel Group $ 3,782 $ 4,436
Swimwear Group $ 2,620 $ 3,824

(c) Includes restructuring charges as follows:
Three Months Ended Three Months Ended
October 3, 2009 October 4, 2008
Sportswear Group $ 531 $ 3,149
Intimate Apparel Group 488 204
Swimwear Group (122 ) 1,064
Unallocated corporate expenses 11 1
$ 908 $ 4,418

(d) Includes a charge of $3,556 recorded during the Three Months Ended October 3, 2009 related to the write-down of inventory associated with the Company's LZR Racer and similar swimsuits which were banned by FINA.
FINA is the international organization responsible for, among other things, administering swimming competitions.

Schedule 4a

THE WARNACO GROUP, INC.
NET REVENUES AND OPERATING INCOME BY BUSINESS GROUP
(Dollars in thousands)
(Unaudited)

Net revenues: Nine Months Ended Nine Months Ended Increase / % Constant $
October 3, 2009 (a) October 4, 2008 (a) (Decrease) Change % Change (b)
Sportswear Group $ 815,552 $ 864,766 $ (49,214 ) -5.7 % 2.3 %
Intimate Apparel Group 498,263 538,968 (40,705 ) -7.6 % -0.7 %
Swimwear Group 200,365 213,837 (13,472 ) -6.3 % -3.7 %
Net revenues $ 1,514,180 $ 1,617,571 $ (103,391 ) -6.4 % 0.5 %

Nine Months Ended % of Group Nine Months Ended % of Group
October 3, 2009 (a) Net Revenues October 4, 2008 (a) Net Revenues
Operating income (loss):
Sportswear Group (c), (d) $ 100,874 12.4 % $ 85,868 9.9 %
Intimate Apparel Group (c), (d) 88,472 17.8 % 98,518 18.3 %
Swimwear Group (c), (d), (e) 13,297 6.6 % 12,244 5.7 %
Unallocated corporate expenses (d) (37,115 ) na (43,287 ) na
Operating income $ 165,528 na $ 153,343 na

Operating income as a percentage of
total net revenues 10.9 % 9.5 %

(a) The Nine Months Ended October 3, 2009 contained 39 weeks of operations while the Nine Months Ended October 4, 2008 contained 40 weeks of operations.

(b) Reflects the percentage increase (decrease) in net revenues for the Nine Months Ended October 3, 2009 compared to the Nine Months Ended October 4, 2008 where foreign based net revenues for the Nine Months Ended October 3, 2009 are translated into U.S. dollars using the same foreign currency exchange rates that were used in the calculation of net revenues for the Nine Months Ended October 4, 2008.

(c) Includes an allocation of shared services expenses as follows:
Nine Months Ended Nine Months Ended
October 3, 2009 October 4, 2008
Sportswear Group $ 15,175 $ 16,384
Intimate Apparel Group $ 11,330 $ 13,297
Swimwear Group $ 7,884 $ 11,472

(d) Includes restructuring charges as follows:
Nine Months Ended Nine Months Ended
October 3, 2009 October 4, 2008
Sportswear Group $ 3,917 $ 26,246
Intimate Apparel Group 3,400 898
Swimwear Group 2,311 2,179
Unallocated corporate expenses 1,325 1,412
$ 10,953 $ 30,735

(e) Includes a charge of $3,556 recorded during the Three Months Ended October 3, 2009 related to the write-down of inventory associated with the Company's LZR Racer and similar swimsuits which were banned by FINA.
FINA is the international organization responsible for, among other things, administering swimming competitions.

Schedule 5

THE WARNACO GROUP, INC.
NET REVENUES AND OPERATING INCOME BY REGION
(Dollars in thousands)
(Unaudited)

By Region: Net Revenues

Three Months Ended October 3, 2009 Three Months Ended October 4, 2008 Increase / (Decrease) % Change Constant $ % Change (a)
United States $ 210,146 $ 233,938 $ (23,792 ) -10.2 % -10.2 %
Europe 166,584 166,412 172 0.1 % 5.8 %
Asia 85,994 88,735 (2,741 ) -3.1 % 3.1 %
Canada 25,796 27,765 (1,969 ) -7.1 % -3.1 %
Mexico, Central and South America 32,385 30,776 1,609 5.2 % 25.1 %
Total $ 520,905 $ 547,626 $ (26,721 ) -4.9 % -0.8 %

Operating Income

Three Months Ended October 3, 2009 (b) Three Months Ended October 4, 2008 (b) Increase / (Decrease) % Change
United States (c ) $ 27,007 $ 23,145 $ 3,862 16.7 %
Europe 20,866 20,447 419 2.0 %
Asia 15,148 9,452 5,696 60.3 %
Canada (c ) 5,045 6,980 (1,935 ) -27.7 %
Mexico, Central and South America (c ) 5,087 4,220 867 20.5 %
Unallocated corporate expenses (12,895 ) (16,256 ) 3,361 -20.7 %
Total $ 60,258 $ 47,988 $ 12,270 25.6 %

a) Reflects the percentage increase (decrease) in net revenues for the Three
Months Ended October 3, 2009 compared to the Three Months Ended October 4, 2008
where foreign based net revenues for the Three Months Ended October 3, 2009 are
translated into U.S. dollars using the same foreign currency exchange rates that
were used in the calculation of net revenues for the Three Months Ended October
4, 2008.

(b) Includes restructuring charges as follows:

Three Months Three Months

Ended October 3,
Ended October 4,

2009
2008
United States $ (150 ) $ 1,241
Europe 524 3,175
Asia 118 1
Canada 319 -
Mexico, Central and South America - -
Unallocated corporate expenses 97 1
Total $ 908 $ 4,418

(c) Includes a charge of $3,556 ($3,170 in the United States, $336 in Canada and
$50 in Mexico) recorded during the Three Months Ended October 3, 2009 related to
the write-down of inventory associated with the Company's LZR Racer and similar
swimsuits which were banned by FINA. FINA is the international organization
responsible for, among other things, administering swimming competitions.

Schedule 5a

THE WARNACO GROUP, INC.
NET REVENUES AND OPERATING INCOME BY REGION
(Dollars in thousands)
(Unaudited)

By Region: Net Revenues

Nine Months Ended October 3, 2009 (a) Nine Months Ended October 4, 2008 (a) Increase / (Decrease) % Change Constant $ % Change (b)
United States $ 712,210 $ 745,436 $ (33,226 ) -4.5 % -4.5 %
Europe 407,573 458,368 (50,795 ) -11.1 % -0.5 %
Asia 238,387 246,091 (7,704 ) -3.1 % 9.9 %
Canada 75,719 85,514 (9,795 ) -11.5 % 0.8 %
Mexico, Central and South America 80,291 82,162 (1,871 ) -2.3 % 23.5 %
Total $ 1,514,180 $ 1,617,571 $ (103,391 ) -6.4 % 0.5 %

Operating Income

Nine Months Ended October 3, 2009 (a), ( c) Nine Months Ended October 4, 2008 (a), ( c) Increase / (Decrease) % Change
United States (d) $ 103,824 $ 84,967 $ 18,857 22.2 %
Europe 40,811 43,813 (3,002 ) -6.9 %
Asia 34,930 36,465 (1,535 ) -4.2 %
Canada (d) 11,911 20,998 (9,087 ) -43.3 %
Mexico, Central and South America (d) 11,167 10,387 780 7.5 %
Unallocated corporate expenses (37,115 ) (43,287 ) 6,172 -14.3 %
Total $ 165,528 $ 153,343 $ 12,185 7.9 %

(a) The Nine Months Ended October 3, 2009 contained 39 weeks of operations while
the Nine Months Ended October 4, 2008 contained 40 weeks of operations.

(b) Reflects the percentage increase (decrease) in net revenues for the Nine
Months Ended October 3, 2009 compared to the Nine Months Ended October 4, 2008
where foreign based net revenues for the Nine Months Ended October 3, 2009 are
translated into U.S. dollars using the same foreign currency exchange rates that
were used in the calculation of net revenues for the Nine Months Ended October
4, 2008.

(c) Includes restructuring charges as follows:

Nine Months Nine Months

Ended October 3,
Ended October 4,

2009
2008
United States $ 4,710 $ 2,539
Europe 4,106 26,732
Asia 127 52
Canada 571 -
Mexico, Central and South America 30 -
Unallocated corporate expenses 1,409 1,412
Total $ 10,953 $ 30,735

(d) Includes a charge of $3,556 ($3,170 in the United States, $336 in Canada and
$50 in Mexico) recorded during the Three Months Ended October 3, 2009 related to
the write-down of inventory associated with the Company's LZR Racer and similar
swimsuits which were banned by FINA. FINA is the international organization
responsible for, among other things, administering swimming competitions.

Schedule 6

THE WARNACO GROUP, INC.
NET REVENUES AND OPERATING INCOME BY CHANNEL
(Dollars in thousands)
(Unaudited)

By Channel: Net Revenues

Three Months Three Months Increase / % Change

Ended October
Ended October
(Decrease)

3, 2009
4, 2008
Wholesale $ 402,217 $ 439,645 $ (37,428 ) -8.5 %
Retail 118,688 107,981 10,707 9.9 %
Total $ 520,905 $ 547,626 $ (26,721 ) -4.9 %

Operating Income

Three Months Three Months Increase / % Change

Ended October
Ended October
(Decrease)

3, 2009 (a)
4, 2008 (a)
Wholesale (b) $ 61,499 $ 57,284 $ 4,215 7.4 %
Retail (b) 11,654 6,960 4,694 67.4 %
Unallocated corporate expenses (12,895 ) (16,256 ) 3,361 -20.7 %
Total $ 60,258 $ 47,988 $ 12,270 25.6 %

(a) Includes restructuring charges as follows:

Three Months Three Months

Ended October
Ended October

3, 2009
4, 2008
Wholesale $ 890 $ 4,359
Retail (79 ) 58
Unallocated corporate expenses 97 1
Total $ 908 $ 4,418

(b) Includes a charge of $3,556 ($3,456 in Wholesale and $100 in Retail)
recorded during the Three Months Ended October 3, 2009 related to the write-down
of inventory associated with the Company's LZR Racer and similar swimsuits which
were banned by FINA. FINA is the international organization responsible for,
among other things, administering swimming competitions.

Schedule 6a

THE WARNACO GROUP, INC.
NET REVENUES AND OPERATING INCOME BY CHANNEL
(Dollars in thousands)
(Unaudited)

By Channel: Net Revenues

Nine Months Nine Months Increase / % Change

Ended October
Ended October
(Decrease)

3, 2009 (a)
4, 2008 (a)
Wholesale $ 1,196,156 $ 1,298,395 $ (102,239 ) -7.9 %
Retail 318,024 319,176 (1,152 ) -0.4 %
Total $ 1,514,180 $ 1,617,571 $ (103,391 ) -6.4 %

Operating Income

Nine Months Nine Months Increase / % Change

Ended October
Ended October
(Decrease)

3, 2009 (a), (b)
4, 2008 (a), (b)
Wholesale (c ) $ 173,623 $ 159,986 $ 13,637 8.5 %
Retail (c ) 29,020 36,644 (7,624 ) -20.8 %
Unallocated corporate expenses (37,115 ) (43,287 ) 6,172 -14.3 %
Total $ 165,528 $ 153,343 $ 12,185 7.9 %

(a) The Nine Months Ended October 3, 2009 contained 39 weeks of operations while the Nine Months Ended October 4, 2008 contained 40 weeks of operations.

(b) Includes restructuring charges as follows:

Nine Months Nine Months

Ended October
Ended October

3, 2009
4, 2008
Wholesale $ 9,185 $ 28,929
Retail 359 394
Unallocated corporate expenses 1,409 1,412
Total $ 10,953 $ 30,735

(c) Includes a charge of $3,556 ($3,456 in Wholesale and $100 in Retail)
recorded during the Three Months Ended October 3, 2009 related to the write-down
of inventory associated with the Company's LZR Racer and similar swimsuits which
were banned by FINA. FINA is the international organization responsible for,
among other things, administering swimming competitions.

Schedule 7

THE WARNACO GROUP, INC.
SUPPLEMENTAL SCHEDULE - FISCAL 2009 OUTLOOK
(Dollars in thousands, excluding per share amounts)
(Unaudited)

NET REVENUE GUIDANCE Percentages
(Unaudited)
Estimated decline in net revenues in Fiscal 2009 compared to
comparable Fiscal 2008 levels. 3.00 % to 5.00 % (c)

EARNINGS PER SHARE GUIDANCE U.S. Dollars
Diluted Income per common share from continuing operations (Unaudited)
GAAP basis (assuming minimal pension expense / income) $ 2.45 to $ 2.51 (d)
Restructuring charges (a) 0.15 to 0.18
Tax items 0.10 to 0.11
As adjusted (Non-GAAP basis) (b) $ 2.70 to $ 2.80 (e)

(a) Reflects between $7,000 to $8,000 of expected restructuring charges (net of an income tax benefit of between $3,000 and $4,000) for Fiscal 2009.

(b) The Company believes it is useful for users of the Company's financial statements to be made aware of the "As Adjusted" net revenue growth and per share amounts related
to the Company's income from continuing operations as such measures are used by management to evaluate the operating performance of the Company's continuing businesses on
a comparable basis. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its projected results to provide investors with an additional tool to
evaluate the Company's operating results.

(c) Previous guidance was 7% to 9%

(d) Previous guidance was $2.31 to $2.42

(e) Previous guidance was $2.60 to $2.75

Schedule 8
THE WARNACO GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, excluding per share amounts)
(Unaudited)

As Reported Restructuring As Adjusted
Three Months Ended Charges and Taxation (b) Three Months Ended
April 4, 2009 Pension (a) April 4, 2009 (c)

Net revenues $ 537,844 $ - $ 537,844
Cost of goods sold 312,559 (1,483 ) 311,076
Gross profit 225,285 1,483 - 226,768
Selling, general and administrative expenses 158,347 (7,087 ) 151,260
Amortization of intangible assets 2,127 2,127
Pension expense 537 (537 ) -
Operating income 64,274 9,107 - 73,381
Other expense (income) (404 ) (404 )
Interest expense 6,069 6,069
Interest income (408 ) (408 )
Income from continuing operations before
provision for income taxes and noncontrolling interest 59,017 9,107 - 68,124
Provision for income taxes 20,167 2,927 23,094
Income from continuing operations before noncontrolling interest 38,850 9,107 (2,927 ) 45,030
Loss from discontinued operations, net of taxes (1,020 ) (1,020 )
Net Income 37,830 9,107 (2,927 ) 44,010
Less: Net income attributable to the noncontrolling interest (258 ) (258 )
Net income attributable to Warnaco Group, Inc. $ 37,572 $ 9,107 $ (2,927 ) $ 43,752

Amounts attributable to Warnaco Group Inc. common shareholders:
Income from continuing operations, net of tax 38,592 9,107 (2,927 ) 44,772
Discontinued operations, net of tax (1,020 ) - - (1,020 )
Net income 37,572 9,107 (2,927 ) 43,752

Basic income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 0.84 $ 0.98
Loss from discontinued operations (0.02 ) (0.02 )
Net income $ 0.82 $ 0.96

Diluted income per common share attributable to Warnaco Group, Inc. common shareholders:
Income from continuing operations $ 0.83 $ 0.97
Loss from discontinued operations (0.02 ) (0.02 )
Net income $ 0.81 $ 0.95

Weighted average number of shares outstanding used in
computing income per common share:
Basic 45,304,591 45,304,591

Diluted 45,651,170 45,651,170

(a) This adjustment seeks to present the Company's consolidated condensed statement of operations on a continuing basis without the effects of restructuring charges or pension expense. See note (c) below.

(b) Adjustment to reflect the Company's income from continuing operations at a normalized tax rate of 33.9% which reflects the Company's estimated tax rate for Fiscal 2009 excluding the effects of restructuring charges and pension income. See note (c) below.

(c) The "As Adjusted" statement of operations is used by management to evaluate the operating performance of the Company's continuing operations on a comparable basis. Management does not, nor should investors, consider such non-GAAP financial measures in isolation from, or as a substitution for, financial information prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its results to provide investors with an additional tool to evaluate the Company's operating
results.

The Warnaco Group, Inc.
Deborah Abraham, 212-287-8289
Vice President, Investor Relations

Copyright Business Wire 2009