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Warnaco Reports Third Quarter Fiscal 2012 Results

  Warnaco Reports Third Quarter Fiscal 2012 Results

Business Wire

NEW YORK -- November 05, 2012

The Warnaco Group, Inc. (NYSE: WRC) today reported results for the third
quarter ended September 29, 2012.

Highlights for the third quarter:

  *Net revenues declined 5%, to $611.5 million, compared to the prior year
    quarter
  *Net revenues, in constant currency, were flat compared to the prior year
    quarter
  *Income per diluted share from continuing operations was $0.98 compared to
    $1.13 in the prior year quarter
  *Income per diluted share from continuing operations on an adjusted,
    non-GAAP, basis was $1.15 compared to $1.07 in the prior year quarter
    (which excludes restructuring expenses, pension income, tax related items
    and for the current quarter, acquisition costs relating to the previously
    announced transaction with PVH Corp.)

The accompanying tables provide a reconciliation of actual results to the
adjusted, non-GAAP, results.

The Company believes it is valuable for users of the Company’s financial
statements to be made aware of the 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 and to make operating
and strategic decisions. In addition, the Company uses performance targets
based, in part, on non-GAAP income from continuing operations and non-GAAP
operating income as a component of the measurement of certain employee
incentive compensation.

“Our third quarter results reflect the efforts of our team to efficiently
operate our global business,” said Helen McCluskey, Warnaco’s President and
Chief Executive Officer. “Gross margin expansion and expense discipline more
than offset a decline in net revenues, driven primarily by the impact of
currency and macro challenges. As a result, we delivered an increase in
operating margin and adjusted non-GAAP income per share from continuing
operations compared to the prior year quarter.

“Internationally, net revenues in constant dollars were up slightly, led by
growth in Latin America and Asia offsetting a slight decline in Europe. Our
direct-to-consumer net revenues, in constant dollars, were up 5% and
comparable store sales for the quarter were relatively flat. We saw some
progress in Europe, where direct-to-consumer net revenues rose 6%, in constant
dollars, including positive comparable store sales for the quarter.

“Looking forward, our reported 3Q results support our outlook for the balance
of the year. As was announced last week, we entered into a merger agreement
with PVH Corp. and look forward to the opportunities the transaction with PVH
brings to our business. In the meantime, we intend to continue to operate the
business effectively for the next several months as we work collaboratively
with PVH to ensure a smooth integration,” concluded McCluskey.

Fiscal 2012 Outlook

For fiscal 2012, based on recent foreign currency exchange rates, the Company
continues to anticipate:

  *Net revenues, on a reported basis, will be down 2% to flat compared to
    fiscal 2011; and
  *Adjusted, non-GAAP, diluted income per share from continuing operations
    (excluding restructuring expense, pension expense the Lejaby impairment
    charge, and acquisition costs relating to the previously announced
    transaction with PVH Corp.) in the range of $4.00 - $4.15.

Schedule 7 of the accompanying tables provides a reconciliation of anticipated
diluted income per share from continuing operations, on a GAAP basis of $2.97-
$3.00 per diluted share (assuming minimal pension expense/income), to the
adjusted, non-GAAP fiscal 2012 outlook above.

Third Quarter Highlights

Total Company

Net revenues fell 5%, compared to the prior year period, to $611.5 million and
were flat in constant currency. An increase in Swimwear Group net revenues,
fueled by continued strength from Speedo^®, was offset by declines in
Sportswear and Intimate Apparel net revenues. Challenging macro-economic
conditions and the unfavorable effects of fluctuations in currency exchange
rates adversely affected the Company’s net revenues.

Gross profit decreased 5% compared to the prior year quarter, to $267.0
million, while gross margin increased 30 basis points to 44% of net revenues.
A favorable product mix, moderation of product costs and efficient execution
contributed to the improvement in gross margin.

SG&A expense decreased 7% compared to the prior year quarter, to $197.8
million. As a percent of net revenue, SG&A declined 60 basis points to 32%,
benefiting from disciplined expense control as well as the effects of
fluctuations in currency exchange rates.

Operating income was $66.7 million, or 11% of net revenues, compared to $64.8
million, or 10% of net revenues, in the prior year quarter.

Income from continuing operations was $41.1 million, or $0.98 per diluted
share, compared to $48.8 million, or $1.13 per diluted share, in the prior
year quarter. Income from continuing operations for the third quarter of
fiscal 2011 includes a tax benefit of approximately $8.6 million, primarily
associated with a reduction in the reserve for uncertain tax positions in
certain foreign jurisdictions.

On an adjusted, non-GAAP basis (excluding restructuring expenses, pension
income, tax related items and for the current quarter, acquisition costs
relating to the previously announced transaction with PVH Corp.), income from
continuing operations was $48.1 million, or $1.15 per diluted share, compared
to $46.1 million, or $1.07 per diluted share, in the prior year period.

The effective tax rate in the quarter was 35% compared to 18% in the prior
year quarter. The prior year quarter benefited from the $8.6 million tax
benefit described above. On an adjusted, non-GAAP basis, the effective tax
rate in the quarter was 32.7%; the prior year quarter’s effective tax rate
(excluding the $8.6 million tax benefit) was approximately 31%.

The effect of fluctuations in foreign currency exchange rates for the quarter
resulted in a decrease in net revenues, gross profit and SG&A by $30.7
million, $13.4 million and $13.2 million, respectively, compared to the prior
year quarter and had no material impact on income from continuing operations.
An additional discussion regarding the effects of fluctuations in foreign
currency exchange rates on operating results can be found in the Company’s
Form 10-Q, for the quarter ended September 29, 2012, which is being filed with
the Securities and Exchange Commission.

Balance Sheet

Cash and cash equivalents at September 29, 2012 were $311.0 million, a 73%
increase, compared to $179.3 million at October 1, 2011. The Company ended the
quarter in a $56.3 million net cash positive position compared to a $78.0
million net debt position at October 1, 2011.

Inventories at September 29, 2012 were $388.8 million, down $3.3 million (or
1%) compared to $392.1 million at October 1, 2011. The Company remains
comfortable with the quality of its inventory.

Conference Call Information

Stockholders and other persons are invited to listen to the third quarter
fiscal 2012 earnings conference call scheduled for today, Monday, November 5,
2012, at 4:30 p.m. EST. To participate in Warnaco’s conference call, dial
(877)692-2592 approximately five minutes prior to the 4:30 p.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 global
apparel company engaged in the business of designing, sourcing, marketing and
selling men’s, women’s and children’s sportswear and accessories, intimate
apparel, and swimwear under such owned and licensed brands as Calvin Klein®,
Speedo®, Chaps®, Warner's® and Olga®. For more information, visit
www.warnaco.com.

FORWARD-LOOKING STATEMENTS

The Warnaco Group, Inc. notes that this press release, the conference call
scheduled for November 5, 2012 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; deterioration in global or regional or other macro-economic
conditions that affect the apparel industry, including turmoil in the
financial and credit markets; the Company's failure to anticipate, identify or
promptly react to changing trends, styles, or brand preferences; the Company’s
failure to use the most recent and effective advertising media to reach
customers; further declines in prices in the apparel industry and other
pricing pressures; declining sales resulting from increased competition in the
Company’s markets; increases in the prices of raw materials or costs to
produce or transport products; 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; possible additional tax liabilities; 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 the Company’s 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 including, in
particular, its license agreement with CKI, the licensor of the Company’s
Calvin Klein brand name; the Company’s dependence on the reputation of its
brand names, including, in particular, Calvin Klein; the potential that the
Company may be required to make substantial payments as a result of audits
conducted by its licensors; 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; 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
recognizing impairment charges for its long-lived assets, uncertainty over the
outcome of litigation matters and other proceedings; 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 inability to successfully implement restructuring and
disposition activities; the Company’s inability to successfully transition its
sourcing, design and merchandising functions related to Calvin Klein Jeans
from Italy to New York; 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. In addition, risks and
uncertainties related to the previously announced transaction with PVH Corp.
include, among others: the risk that the conditions to the closing of the
merger are not satisfied (including a failure of the Company's stockholders to
approve the merger and the risk that regulatory approvals required for the
merger are not obtained or are obtained subject to conditions that are not
anticipated); potential adverse reactions or changes to business relationships
resulting from the announcement or completion of the merger; uncertainties as
to the timing of the merger; competitive responses to the merger; unexpected
costs, charges or expenses resulting from the merger; litigation relating to
the merger; and the inability to retain key personnel.

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 for the year ended December 31, 2011, 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.

Important Additional Information Concerning the Merger with PVH Corp.

In connection with the merger, PVH will file with the SEC a Registration
Statement on Form S-4 that will include a Proxy Statement of Warnaco and a
Prospectus of PVH, as well as other relevant documents concerning the proposed
transaction. WARNACO STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT /
PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION.

A free copy of the Proxy Statement/Prospectus, as well as other filings
containing information about PVH and Warnaco, may be obtained at the SEC’s
Internet site (http://www.sec.gov). You will also be able to obtain these
documents, free of charge, from PVH at www.pvh.com under the heading
“Investors” or from Warnaco at www.warnaco.com under the heading “Investor
Relations.”

PVH and Warnaco and certain of their directors and executive officers may be
deemed to be participants in the solicitation of proxies from Warnaco's
stockholders in connection with the merger. Information about the directors
and executive officers of PVH and their ownership of PVH common stock is set
forth in the proxy statement for PVH’s 2012 annual meeting of stockholders, as
filed with the SEC on Schedule 14A on May 10, 2012. Information about the
directors and executive officers of Warnaco and their ownership of Warnaco
common stock is set forth in the proxy statement for Warnaco’s 2012 annual
meeting of stockholders, as filed with the SEC on Schedule 14A on April 11,
2012. Additional information regarding the interests of those participants and
other persons who may be deemed participants in the merger may be obtained by
reading the Proxy Statement/Prospectus regarding the merger when it becomes
available. Free copies of this document may be obtained as described in the
preceding paragraph. This press release shall not constitute an offer to sell
or the solicitation of an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities Act of
1933, as amended.

Schedule 1
THE WARNACO GROUP, INC.

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

                 Three Months Ended               Nine Months Ended
                  September 29,   October 1,       September 29,   October 1,
                  2012             2011             2012             2011
                                                                     
                                                                     
Net revenues      $ 611,538        $ 645,121        $ 1,790,990        1,898,669
Cost of goods      344,581       365,412        1,017,609      1,065,552  
sold
Gross profit        266,957          279,709          773,381          833,117
Selling,
general and         197,773          212,000          609,738          637,491
administrative
expenses
Amortization of
intangible          2,537            3,263            12,086           9,548
assets
Pension income     (55        )    (310       )    (164       )    (931       )
Operating           66,702           64,756           151,721          187,009
income
Other loss          13               1,357            12,638           498
Interest            4,614            4,986            13,708           11,142
expense
Interest income    (831       )    (986       )    (2,705     )    (2,542     )
Income from
continuing
operations
before
provision for       62,906           59,399           128,080          177,911
income taxes
and
non-controlling
interest
Provision for      21,676         10,770         44,489         39,184     
income taxes
Income from
continuing
operations          41,230           48,629           83,591           138,727
before
non-controlling
interest
Income (loss)
from
discontinued       (2         )    (4,177     )    3,023          (4,741     )
operations, net
of taxes
Net income          41,228           44,452           86,614           133,986
Less: Net
income (loss)
attributable to    100            (159       )    (46        )    (159       )
the
non-controlling
interest
Net income
attributable to    41,128         44,611         86,660         134,145    
Warnaco Group
                                                                     
Amounts
attributable to
Warnaco Group
common
shareholders:
Income from
continuing        $ 41,130         $ 48,788         $ 83,637         $ 138,886
operations, net
of taxes
Income (loss)
from
discontinued       (2         )    (4,177     )    3,023          (4,741     )
operations, net
of taxes
Net income        $ 41,128        $ 44,611        $ 86,660        $ 134,145    
                                                                     
Basic income
per common
share:
Income from
continuing        $ 0.99           $ 1.15           $ 2.02           $ 3.18
operations
Income (loss)
from               -              (0.10      )    0.08           (0.11      )
discontinued
operations
Net income        $ 0.99          $ 1.05          $ 2.10          $ 3.07       
                                                                     
Diluted income
per common
share:
Income from
continuing        $ 0.98           $ 1.13           $ 1.99           $ 3.11
operations
Income (loss)
from               -              (0.10      )    0.07           (0.11      )
discontinued
operations
Net income        $ 0.98          $ 1.03          $ 2.06          $ 3.00       
                                                                     
Weighted
average number
of shares
outstanding
used in
computing
income per
common share:
Basic              40,908,995     41,713,958     40,800,528     43,076,120 
Diluted            41,498,354     42,581,100     41,525,805     44,023,646 


Schedule 2
THE WARNACO GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)

                      September 29, 2012  December 31,      October 1, 2011
                                            2011
                                                               
ASSETS
Current assets:
Cash and cash          $    311,011         $  232,531         $  179,326
equivalents
Accounts receivable,        323,719            322,976            341,406
net
Inventories                 388,827            350,835            392,073
Assets of
discontinued                -                  -                  -
operations
Other current assets       166,817           158,288          174,355    
Total current assets        1,190,374          1,064,630          1,087,160
                                                               
Property, plant and         135,054            133,022            129,205
equipment, net
Intangible and other        527,065            550,198            596,406
assets
                                                             
TOTAL ASSETS           $    1,852,493       $  1,747,850      $  1,812,771  
                                                               
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt        $    49,393          $  47,513          $  47,773
Accounts payable and        365,715            354,452            392,359
accrued liabilities
Taxes                       16,879             43,238             34,906
Liabilities of
discontinued               -                 6,797            7,048      
operations
Total current               431,987            452,000            482,086
liabilities
Long-term debt              205,299            208,477            209,552
Other long-term             171,249            174,973            206,529
liabilities
Redeemable
non-controlling             15,275             15,200             15,200
interest
Total stockholders'        1,028,683         897,200          899,404    
equity
                                                               
TOTAL LIABILITIES
AND STOCKHOLDERS'      $    1,852,493       $  1,747,850      $  1,812,771  
EQUITY
                                                               
NET CASH AND CASH
EQUIVALENTS (NET       $    56,319          $  (23,459    )    $  (77,999    )
DEBT)


Schedule 3

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

Net             Three Months   Three                                  Constant
revenues:      Ended         Months       Increase /   %         $
                               Ended
                September      October 1,    (Decrease)    Change     % Change
                29, 2012       2011                                   (a)
Sportswear      $  337,377     $ 357,935     $ (20,558 )   -5.7  %    0.2   %
Group
Intimate
Apparel            232,203       247,880       (15,677 )   -6.3  %    -2.9  %
Group
Swimwear          41,958      39,306      2,652      6.7   %    9.2   %
Group
Net revenues    $  611,538    $ 645,121    $ (33,583 )   -5.2  %    -0.4  %
                                                                      
                Three Months                 Three         % of
                Ended          % of Group    Months        Group
                                             Ended
                September      Net           October 1,    Net
                29, 2012       Revenues      2011          Revenues
Operating
income
(loss):
Sportswear
Group (b),      $  29,528        8.8     %   $ 34,129      9.5   %
(c)
Intimate
Apparel            41,204        17.7    %     38,620      15.6  %
Group (b),
(c)
Swimwear
Group (b),         (429    )     -1.0    %     (3,352  )   -8.5  %
(c)
Unallocated
corporate         (3,601  )   na             (4,641  )   na
(c), (d)
Operating       $  66,702     na            $ 64,756     na
income
                                                                      
Operating
income as a
percentage        10.9    %                  10.0    %
of total net
revenues

(a) Reflects the percentage increase (decrease) in net revenues for the Three
Months Ended September 29, 2012, compared to the Three Months Ended October 1,
2011, assuming foreign-based net revenues for the Three Months Ended September
29, 2012 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 1, 2011. See Schedule 6a.

(b) Shared services expenses included in the operating income of the business
groups are as follows:
                Three Months   Three
                Ended          Months
                               Ended
                September      October 1,
                29, 2012       2011
Sportswear      $  7,273       $ 6,970
Group
Intimate
Apparel         $  5,689       $ 5,086
Group
Swimwear        $  2,569       $ 2,347
Group

(c) Includes restructuring charges and other exit costs as follows:
                Three Months   Three
                Ended          Months
                               Ended
                September      October 1,
                29, 2012       2011
Sportswear      $  5,551       $ 3,545
Group
Intimate
Apparel            1,702         699
Group
Swimwear           (545    )     2,988
Group
Unallocated       1,321       315     
corporate
                $  8,029      $ 7,547   

(d) For the Three Months Ended September 29, 2012 compared to the Three Months
Ended October 1, 2011, primarily reflects decreases in employee compensation,
decreases in other general administrative and professional fees, and decreases
in foreign exchange gains, partially offset by restructuring expense as well
as expense of $991 during the Three Months Ended September 29, 2012 in
connection with the Company's decision to consolidate its
sourcing/design/merchandising functions related to Calvin Klein Jeans, which
are currently located in both Europe and New York, entirely to New York.


Schedule 3a

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

Net          Nine Months    Nine Months    Increase /    %         Constant
revenues:     Ended           Ended                                     $
              September 29,   October 1,      (Decrease)     Change     % Change
              2012            2011                                      (a)
Sportswear    $ 903,208       $ 983,695       $ (80,487  )   -8.2  %    -3.8  %
Group
Intimate
Apparel         667,206         695,317         (28,111  )   -4.0  %    -1.3  %
Group
Swimwear       220,576       219,657       919         0.4   %    1.7   %
Group
Net           $ 1,790,990    $ 1,898,669    $ (107,679 )   -5.7  %    -2.2  %
revenues
                                                                        
              Nine Months     % of Group      Nine Months    % of
              Ended                           Ended          Group
              September 29,   Net Revenues    October 1,     Net
              2012                            2011           Revenues
Operating
income
(loss):
Sportswear
Group (b),    $ 31,828          3.5       %   $ 88,686       9.0   %
(c)
Intimate
Apparel         97,151          14.6      %     103,627      14.9  %
Group (b),
(c)
Swimwear
Group (b),      28,053          12.7      %     21,421       9.8   %
(c)
Unallocated
corporate      (5,311    )   na               (26,725  )   na
(c), (d)
Operating     $ 151,721      na              $ 187,009     na
income
                                                                        
Operating
income as a
percentage     8.5       %                    9.8      %
of total
net
revenues

(a) Reflects the percentage increase (decrease) in net revenues for the Nine
Months Ended September 29, 2012 compared to the Nine Months Ended October 1,
2011, assuming foreign-based net revenues for the Nine Months Ended September
29, 2012 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 1, 2011. See Schedule 6b.

(b) Shared services expenses included in the operating income of the business
groups are as follows:
              Nine Months     Nine Months
              Ended           Ended
              September 29,   October 1,
              2012            2011
Sportswear    $ 21,862        $ 20,813
Group
Intimate
Apparel       $ 16,559        $ 14,787
Group
Swimwear      $ 8,167         $ 7,572
Group

(c) Includes restructuring charges and other exit costs as follows:
              Nine Months     Nine Months
              Ended           Ended
              September 29,   October 1,
              2012            2011
Sportswear    $ 21,228        $ 7,169
Group
Intimate
Apparel         7,954           3,619
Group
Swimwear        282             7,254
Group
Unallocated    1,367         948       
corporate
              $ 30,831       $ 18,990    

(d) For the Nine Months Ended September 29, 2012 compared to the Nine Months
Ended October 1, 2011, primarily reflects decreases in employee compensation,
decreases in other general administrative and professional fees, and decreases
in foreign exchange gains, partially offset by an increase in restructuring
expense and expense of $1,338 during the Nine Months Ended September 29, 2012 in
connection with the Company's decision to consolidate its
sourcing/design/merchandising functions related to Calvin Klein Jeans, which are
currently located in both Europe and New York, entirely to New York.


Schedule 4

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

By Region:   Net Revenues
              
              Three                  Three                                       
              Months                   Months
              Ended                    Ended                    Increase /              Constant
              September                October                                          $ %
              29, 2012                 1, 2011                  (Decrease)    %         Change
                                                                              Change    (a)
United        $ 237,298                $ 241,764                $ (4,466  )   -1.8  %   -1.8   %
States
Europe          161,464                  182,265                  (20,801 )   -11.4 %   -0.8   %
Asia            130,164                  129,985                  179         0.1   %   1.8    %
Mexico and
Central and     58,812                   62,848                   (4,036  )   -6.4  %   7.9    %
South
America
Canada (b)     23,800                 28,259                 (4,459  )   -15.8 %   -14.5  %
Total         $ 611,538               $ 645,121               $ (33,583 )   -5.2  %   -0.4   %
                                                                                        
                                                                                        
              Operating Income (loss)
              
              Three                    Three
              Months                   Months
              Ended         % of Net   Ended         % of Net   Increase /
              September                October
              29, 2012     Revenues  1, 2011      Revenues  (Decrease)   %
                                                                              Change
United        $ 27,325      11.5  %    $ 21,926      9.1   %    $ 5,399       24.6  %
States (c)
Europe (c)      9,435       5.8   %      8,133       4.5   %      1,302       16.0  %
Asia (c)        21,987      16.9  %      24,218      18.6  %      (2,231  )   -9.2  %
Mexico and
Central and     7,943       13.5  %      11,635      18.5  %      (3,692  )   -31.7 %
South
America (c)
Canada (c)      3,613       15.2  %      3,485       12.3  %      128         3.7   %
Unallocated
corporate      (3,601  )   na          (4,641  )   na          1,040      22.4  %
(c), (d),
(e)
Total         $ 66,702     10.9  %    $ 64,756     10.0  %    $ 1,946      3.0   %

(a) Reflects the percentage increase (decrease) in net revenues for the Three Months Ended
September 29, 2012, compared to the Three Months Ended October 1, 2011, assuming foreign-based
net revenues for the Three Months Ended September 29, 2012 are translated into U.S. dollars
using the same foreign currency exchange rates in the calculation of net revenues for the Three
Months Ended October 1, 2011. See Schedule 6a.

(b) The decrease in net revenues for the Three Months Ended September 29, 2012 compared to the
Three Months Ended October 1, 2011 is primarily due to the closure of outlet stores during
Fiscal 2011.

(c) Includes restructuring charges and other exit costs as follows:
              Three                    Three
              Months                   Months
              Ended                    Ended
              September                October
              29, 2012                 1, 2011
United        $ 509                    $ 3,266
States
Europe          5,932                    3,888
Asia            210                      -
Canada          3                        78
Mexico and
Central and     54                       -
South
America
Unallocated    1,321                  315     
corporate
Total         $ 8,029                 $ 7,547   

(d) Includes expense of $991 during the Three Months Ended September 29, 2012 in connection with
the Company's decision to consolidate its sourcing/design/merchandising functions related to
Calvin Klein Jeans, which are currently located in both Europe and New York, entirely to New
York.

(e) For the Three Months Ended September 29, 2012 compared to the Three Months Ended October 1,
2011, primarily reflects decreases in employee compensation, decreases in other general
administrative and professional fees, and decreases in foreign exchange gains, partially offset
by restructuring expense and other expenses related to the transition of the
sourcing/design/merchandising function related to Calvin Klein Jeans to New York during the
Three Months Ended September 29, 2012.


Schedule 4a

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

By Region:   Net Revenues
              
              Nine Months              Nine Months                                     
              Ended                      Ended October              Increase /                Constant
              September                                                                       $ %
              29, 2012                   1, 2011                    (Decrease)     % Change   Change
                                                                                              (a)
United        $ 733,534                  $ 777,552                  $ (44,018  )   -5.7   %   -5.7  %
States
Europe          415,504                    478,827                    (63,323  )   -13.2  %   -5.9  %
Asia            384,359                    370,546                    13,813       3.7    %   4.8   %
Mexico and
Central and     173,893                    176,698                    (2,805   )   -1.6   %   12.1  %
South
America
Canada (b)     83,700                   95,046                   (11,346  )   -11.9  %   -9.5  %
Total         $ 1,790,990               $ 1,898,669               $ (107,679 )   -5.7   %   -2.2  %
                                                                                              
                                                                                              
              Operating Income (loss)
              
              Nine Months                Nine Months
              Ended           % of Net   Ended October   % of Net   Increase /
              September
              29, 2012       Revenues  1, 2011        Revenues  (Decrease)    % Change
United        $ 77,725        10.6  %    $ 98,079        12.6  %    $ (20,354  )   -20.8  %
States (c)
Europe (c)      (9,587    )   -2.3  %      5,621         1.2   %      (15,208  )   -270.6 %
Asia (c)        62,324        16.2  %      69,264        18.7  %      (6,940   )   -10.0  %
Mexico and
Central and     16,905        9.7   %      31,621        17.9  %      (14,716  )   -46.5  %
South
America (c)
Canada (c)      9,665         11.5  %      9,149         9.6   %      516          5.6    %
Unallocated
corporate      (5,311    )   na          (26,725   )   na          21,414      80.1   %
(c), (d),
(e)
Total         $ 151,721      8.5   %    $ 187,009      9.8   %    $ (35,288  )   -18.9  %

(a) Reflects the percentage increase (decrease) in net revenues for the Nine Months Ended September
29, 2012 compared to the Nine Months Ended October 1, 2011, assuming foreign-based net revenues for
the Nine Months Ended September 29, 2012 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 1, 2011. See Schedule 6b.

(b) The decrease in net revenue for the Nine Months Ended September 29, 2012 compared to the Nine
Months Ended October 1, 2011 is primarily due to the closure of outlet stores during Fiscal 2011.

(c) Includes restructuring charges and other exit costs as follows:

              Nine Months                Nine Months
              Ended                      Ended
              September 29,              October 1,
              2012                       2011
United        $ 8,701                    $ 7,891
States
Europe          17,238                     5,654
Asia            305                        -
Canada          2,388                      4,430
Mexico and
Central and     832                        67
South
America
Unallocated    1,367                    948       
corporate
Total         $ 30,831                  $ 18,990    

(d) Includes expense of $1,338 during the Nine Months Ended September 29, 2012 in connection with the
Company's decision to consolidate its sourcing/design/merchandising functions related to Calvin Klein
Jeans, which are currently located in both Europe and New York, entirely to New York.

(e) For the Nine Months Ended September 29, 2012 compared to the Nine Months Ended October 1, 2011,
primarily reflects decreases in employee compensation, decreases in other general administrative and
professional fees, and decreases in foreign exchange gains, partially offset by an increase in
restructuring expense and other expenses related to the transition of the
sourcing/design/merchandising function related to Calvin Klein Jeans to New York during the Nine
Months Ended September 29, 2012.


Schedule 5

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

By Channel:  Net Revenues
              
              Three                  Three                                       
              Months                   Months
              Ended                    Ended
              September                October 1,               Increase /              Constant
              29,                                                                       $ %
              2012                     2011                     (Decrease)    %         Change
                                                                              Change    (a)
Wholesale     $ 429,834                $ 458,877                $ (29,043 )   -6.3  %   -2.7  %
Retail         181,704                186,244                (4,540  )   -2.4  %   5.2   %
Total         $ 611,538               $ 645,121               $ (33,583 )   -5.2  %   -0.4  %

              Operating Income (loss)
                                                                                        
              Three                    Three
              Months                   Months
              Ended                    Ended
              September     % of Net   October 1,    % of Net   Increase /
              29,
              2012         Revenues  2011         Revenues  (Decrease)   %
                                                                              Change
Wholesale
(b), (c),     $ 59,154      13.8  %    $ 55,980      12.2  %    $ 3,174       5.7   %
(d)
Retail (b),     11,149      6.1   %      13,417      7.2   %      (2,268  )   -16.9 %
(c), (d)
Unallocated
corporate      (3,601  )   na          (4,641  )   na          1,040      22.4  %
(c), (e),
(f)
Total         $ 66,702     10.9  %    $ 64,756     10.0  %    $ 1,946      3.0   %

(a) Reflects the percentage increase (decrease) in net revenues for the Three Months Ended
September 29, 2012, compared to the Three Months Ended October 1, 2011, assuming foreign-based
net revenues for the Three Months Ended September 29, 2012 are translated into U.S. dollars
using the same foreign currency exchange rates in the calculation of net revenues for the Three
Months Ended October 1, 2011. See Schedule 6a.

(b) For the Three Months Ended September 29, 2012 and the Three Months Ended October 1, 2011,
wholesale operating income includes an intercompany profit of $10,629 and $10,602, respectively,
related to certain inventories sold by the retail business to end consumers. Conversely, for the
Three Months Ended September 29, 2012 and the Three Months Ended October 1, 2011, retail
operating income includes an intercompany charge of $10,629 and $10,602, respectively, related
to these inventories.

(c) Includes restructuring charges and other exit costs as follows:

              Three                    Three
              Months                   Months
              Ended                    Ended
              September                October 1,
              29,
              2012                     2011
Wholesale     $ 6,492                  $ 5,388
Retail          216                      1,844
Unallocated    1,321                  315     
corporate
Total         $ 8,029                 $ 7,547   

(d) For the Three Months Ended October 1, 2011, reflects a decrease to Wholesale and an increase
to Retail of $4,200 from previously reported amounts due to the correction of an error related
to royalty expense for Calvin Klein Jeans.

(e) Includes expense of $991 during the Three Months Ended September 29, 2012 in connection with
the Company's decision to consolidate its sourcing/design/merchandising functions related to
Calvin Klein Jeans, which are currently located in both Europe and New York, entirely to New
York.

(f) For the Three Months Ended September 29, 2012 compared to the Three Months Ended October 1,
2011, primarily reflects decreases in employee compensation, decreases in other general
administrative and professional fees, and decreases in foreign exchange gains, partially offset
by restructuring and other expenses related to the transition of the
sourcing/design/merchandising function related to Calvin Klein Jeans to New York during the
Three Months Ended September 29, 2012.


Schedule 5a

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

By Channel:  Net Revenues
              
              Nine Months              Nine Months                                    
              Ended                      Ended October              Increase /               Constant
              September                                                                      $ %
              29, 2012                   1, 2011                    (Decrease)     %         Change
                                                                                   Change    (a)
Wholesale     $ 1,258,325                $ 1,370,212                $ (111,887 )   -8.2  %   -5.5  %
Retail         532,665                  528,457                  4,208       0.8   %   6.4   %
Total         $ 1,790,990              $ 1,898,669               $ (107,679 )   -5.7  %   -2.2  %

              Operating Income (loss)
                                                                                             
              Nine Months                Nine Months
              Ended           % of Net   Ended October   % of Net   Increase /
              September
              29, 2012       Revenues  1, 2011        Revenues  (Decrease)    %
                                                                                   Change
Wholesale     $ 136,202       10.8  %    $ 174,038       12.7  %    $ (37,836  )   -21.7 %
(b),(c) (d)
Retail (b),     20,830        3.9   %      39,696        7.5   %      (18,866  )   -47.5 %
(c), (d)
Unallocated
corporate      (5,311    )   na          (26,725   )   na          21,414      80.1  %
(c), (e),
(f)
Total         $ 151,721      8.5   %    $ 187,009      9.8   %    $ (35,288  )   -18.9 %

(a) Reflects the percentage increase (decrease) in net revenues for the Nine Months Ended September
29, 2012, compared to the Nine Months Ended October 1, 2011, assuming foreign-based net revenues for
the Nine Months Ended September 29, 2012 are translated into U.S. dollars using the same foreign
currency exchange rates in the calculation of net revenues for the Nine Months Ended October 1, 2011.
See Schedule 6b.

(b) For the Nine Months Ended September 29, 2012 and the Nine Months Ended October 1, 2011, wholesale
operating income includes an intercompany profit of $27,756 and $25,821, respectively, related to
certain inventories sold by the retail business to end consumers. Conversely, for the Nine Months
Ended September 29, 2012 and the Nine Months Ended October 1, 2011, retail operating income includes
an intercompany charge of $27,756 and $25,821, respectively, related to these inventories.

(c) Includes restructuring charges and other exit costs as follows:

              Nine Months                Nine Months
              Ended                      Ended October
              September
              29, 2012                   1, 2011
Wholesale     $ 19,257                   $ 14,891
Retail          10,207                     3,151
Unallocated    1,367                    948       
corporate
Total         $ 30,831                  $ 18,990    

(d) For the Nine Months Ended October 1, 2011, reflects a decrease to Wholesale and an increase to
Retail of $4,200 from previously reported amounts due to the correction of an error related to
royalty expense for Calvin Klein Jeans.

(e) Includes expense of $1,338 during the Nine Months Ended September 29, 2012 in connection with the
Company's decision to consolidate its sourcing/design/merchandising functions related to Calvin Klein
Jeans, which are currently located in both Europe and New York, entirely to New York.

(f) For the Nine Months Ended September 29, 2012 compared to the Nine Months Ended October 1, 2011,
primarily reflects decreases in employee compensation, decreases in other general administrative and
professional fees, and decreases in foreign exchange gains, partially offset by an increase in
restructuring and other expenses related to the transition of the sourcing/design/merchandising
function related to Calvin Klein Jeans to New York during the Nine Months Ended September 29, 2012.


Schedule 6
THE WARNACO GROUP, INC.
NON-GAAP MEASURES
(Dollars in thousands, excluding per share amounts)
(Unaudited)

The Warnaco Group, Inc.'s ("Warnaco Group" and, collectively with its
subsidiaries, the "Company") reported financial results are presented in
accordance with U.S. generally accepted accounting principles (“GAAP”). The
reported operating income, income from continuing operations and diluted
earnings per share from continuing operations reflect certain items which
affect the comparability of those reported results. Those financial results
are also presented on a non-GAAP basis, as defined by Regulation S-K Section
10(e) issued by the Securities and Exchange Commission to exclude the effect
of these items. The Company’s computation of these non-GAAP measures may vary
from others in its industry. These non-GAAP financial measures are not
intended to be, and should not be, considered in isolation from, or as a
substitute for, the most directly comparable GAAP financial measure to which
they are reconciled, as presented in the following table:

                 Three Months Ended*              Nine Months Ended*
                  September 29,   October 1,       September     October 1,
                                                    29,
                  2012             2011             2012           2011
                  (Dollars in thousands, except per share amounts)

Operating
income, as        $  66,702        $  64,756        $  151,721     $ 187,009
reported
(GAAP)
Restructuring
charges and          8,029            7,547            30,831        18,991
other exit
costs (a)
Pension income       (55     )        (309    )        (164    )     (931    )
(b)
Acquisition         750            -              750        
expense (c)
Operating
income, as        $  75,426       $  71,994       $  183,138    $ 205,069 
adjusted
(non-GAAP) (f)
                                                                   
                                                                   
Income from
continuing
operations
attributable
to Warnaco        $  41,130        $  48,788        $  83,637      $ 138,886
Group common
shareholders,
as reported
(GAAP)
Restructuring
charges and
other exit           6,135            5,676            22,560        13,396
costs, net of
income tax (a)
Pension
income, net of       (39     )        (190    )        (81     )     (571    )
income tax (b)
Acquisition          505              -                505           -
expense (c)
Lejaby loan          -                -                12,040        -
receivable (d)
Taxation            375            (8,202  )       (3,171  )    (16,528 )
adjustment (e)
Income from
continuing
operations
attributable
to Warnaco        $  48,106       $  46,072       $  115,490    $ 135,183 
Group common
shareholders,
as adjusted
(non-GAAP) (f)
                                                                   
                                                                   
Diluted
earnings per
share from
continuing
operations
attributable      $  0.98          $  1.13          $  1.99        $ 3.11
to Warnaco
Group common
shareholders,
as reported
(GAAP)
Restructuring
charges and
other exit           0.15             0.13             0.54        $ 0.30
costs, net of
income tax (a)
Pension
income, net of       -                -                -             (0.01   )
income tax (b)
Acquisition          0.01             -                0.01          -
expense (c)
Lejaby loan          -                -                0.29          -
receivable (d)
Taxation            0.01           (0.19   )       (0.08   )    (0.37   )
adjustment (e)
Diluted
earnings per
share from
continuing
operations
attributable      $  1.15         $  1.07         $  2.75       $ 3.03    
to Warnaco
Group common
shareholders,
as adjusted
(non-GAAP) (f)

*See footnotes on following page.


Schedule 6 (cont.)
THE WARNACO GROUP, INC.
NON-GAAP MEASURES
(Dollars in thousands, excluding per share amounts)
(Unaudited)

a) For all periods presented, this adjustment seeks to present operating
income, income from continuing operations attributable to Warnaco Group common
shareholders, and diluted earnings per share from continuing operations
attributable to Warnaco Group common shareholders without the effects of
restructuring charges and other exit costs. The income tax rates used to
compute the income tax effect related to this adjustment correspond to the
local statutory tax rates of the reporting entities that incurred
restructuring charges and other exit costs.

b) For all periods presented, this adjustment seeks to present operating
income, income from continuing operations attributable to Warnaco Group common
shareholders, and diluted earnings per share from continuing operations
attributable to Warnaco Group common shareholders without the effects of
pension income. The income tax rates used to compute the income tax effect
related to this adjustment correspond to the local statutory tax rates of the
reporting entities that recognized pension income.

c) For the Three and Nine Months Ended September 29,2012, this adjustment
seeks to present operating income, income from continuing operations
attributable to Warnaco Group common shareholders, and diluted earnings per
share from continuing operations attributable to Warnaco Group common
shareholders without the effects of acquisition expense of $0.55 million net
of tax of $0.2 million related to the Company's proposed merger with a
wholly-owned subsidiary of PVH Corp. The income tax rate used to compute the
income tax effect related to this adjustment corresponds to the statutory rate
in the U.S.

d) For the Nine Months Ended September 29, 2012, this adjustment seeks to
present income from continuing operations attributable to Warnaco Group common
shareholders and diluted earnings per share from continuing operations
attributable to Warnaco Group common shareholders without the effects of the
adjustments to the loan receivable related to the Company's discontinued
Lejaby business. This adjustment was recorded in other income/expense within
income from continuing operations on the Company's Consolidated Condensed
Financial Statements. The reporting entity that recorded this adjustment has a
0% local statutory tax rate.

e) For the Three and Nine Months Ended September 29, 2012 and the Three and
Nine Months Ended October 1, 2011, this adjustment reflects an additional
amount required in order to present income from continuing operations
attributable to Warnaco Group common shareholders and diluted earnings per
share from continuing operations attributable to Warnaco Group common
shareholders at the Company’s forecasted normalized tax rates for the fiscal
year ending December 29, 2012 ("Fiscal 2012") (32.7%) and the fiscal year
ended December 31, 2011 ("Fiscal 2011") (31.1%), respectively. The Company’s
forecasted normalized tax rates for both Fiscal 2012 and Fiscal 2011 exclude
the effects of restructuring charges and other exits costs, pension income and
certain tax adjustments related to either changes in estimates in prior period
tax provisions or adjustments for certain discrete tax items. Adjustments for
discrete items reflect the federal, state and foreign tax effects related to:
1) income taxes associated with legal entity reorganizations and
restructurings; 2) tax provision or benefit resulting from statute expirations
or the finalization of income tax examinations; and 3) other adjustments not
considered part of the Company's core business activities. In addition, this
adjustment for Fiscal 2011 excludes the effects of (i) a benefit of $10,900
recorded during the Three and Nine Months Ended October 1, 2011 associated
with the recognition of net operating losses in a foreign jurisdiction
resulting from the successful petition of that country’s taxing authority;
(ii) the exclusion of a $7,300 tax benefit recorded during the Three Months
Ended October 1, 2011 related to the reduction in the reserve for uncertain
tax positions in certain foreign tax jurisdictions; and (iii) the exclusion of
a $1,300 tax benefit recorded during the Three Months ended October 1, 2011
relating to a change in various domestic and foreign tax provision estimates
for fiscal 2010 following the filing of certain of the Company's tax returns
during the Three Months Ended October 1, 2011.

f) The Company believes it is valuable for users of its financial statements
to be made aware of the non-GAAP financial information, as such measures are
used by management to evaluate the operating performance of the Company's
continuing businesses on a comparable basis and to make operating and
strategic decisions. Management believes such non-GAAP measures will also
enhance users' ability to analyze trends in the Company's business. In
addition, the Company uses performance targets based on non-GAAP operating
income and diluted earnings per share from continuing operations as a
component of the measurement of incentive compensation.


Schedule 6a

THE WARNACO GROUP, INC.
SUPPLEMENTAL SCHEDULE
NET REVENUES ON A CONSTANT CURRENCY BASIS
(Dollars in thousands)
(Unaudited)

                          Three Months Ended September 29, 2012
                           GAAP         Impact of Foreign  Non-GAAP (Note 1)
                           As Reported   Currency Exchange   Constant Currency
By Segment:
Sportswear Group           $ 337,377     $   (21,252   )     $   358,629
Intimate Apparel Group       232,203         (8,527    )         240,730
Swimwear Group              41,958        (961      )        42,919    
Net revenues               $ 611,538    $   (30,740   )     $   642,278   
                                                                           
                                                                           
By Region:
United States              $ 237,298     $   -               $   237,298
Europe                       161,464         (19,292   )         180,756
Asia                         130,164         (2,113    )         132,277
Mexico and Central and       58,812          (8,975    )         67,787
South America
Canada                      23,800        (360      )        24,160    
Total                      $ 611,538    $   (30,740   )     $   642,278   


Note 1:
The Company is a global company that reports financial information in U.S.
dollars in accordance with GAAP. Foreign currency exchange rate fluctuations
affect the amounts reported by the Company when it translates its foreign
revenues into U.S. dollars. These rate fluctuations can have a significant
effect on reported operating results. As a supplement to the Company's
reported operating results, the Company presents constant currency financial
information, which is a non-GAAP financial measure. The Company uses constant
currency information to provide a framework to assess how its businesses
performed excluding the effects of changes in foreign currency exchange rates.
Management believes this information is useful to investors to facilitate
comparisons of operating results and better identify trends in the Company's
businesses.

To calculate the increase in segment revenues on a constant currency basis,
net revenues for the current year period for entities reporting in currencies
other than the U.S. dollar are translated into U.S. dollars at the average
exchange rates in effect during the comparable period of the prior year
(rather than the actual exchange rates in effect during the current year
period).

These constant currency performance measures should be viewed in addition to,
and not in isolation from, or as a substitute for, the Company's operating
performance measures calculated in accordance with GAAP. The constant currency
information presented may not be comparable to similarly titled measures
reported by other companies.


Schedule 6b

THE WARNACO GROUP, INC.
SUPPLEMENTAL SCHEDULE
NET REVENUES ON A CONSTANT CURRENCY BASIS
(Dollars in thousands)
(Unaudited)

                        Nine Months Ended September 29, 2012
                         GAAP           Impact of Foreign  Non-GAAP*
                         As Reported     Currency Exchange   Constant Currency
By Segment:
Sportswear Group         $ 903,208       $   (43,573   )     $   946,781
Intimate Apparel Group     667,206           (19,106   )         686,312
Swimwear Group            220,576         (2,912    )        223,488    
Net revenues             $ 1,790,990    $   (65,591   )     $   1,856,581  
                                                                            
                                                                            
By Region:
United States            $ 733,534       $   -               $   733,534
Europe                     415,504           (34,972   )         450,476
Asia                       384,359           (3,998    )         388,357
Mexico and Central and     173,893           (24,269   )         198,162
South America
Canada                    83,700          (2,352    )        86,052     
Total                    $ 1,790,990    $   (65,591   )     $   1,856,581  
                                                                            
* See Note 1 on Schedule 6a.
                                                                            

Schedule 7

THE WARNACO GROUP, INC.
SUPPLEMENTAL SCHEDULE - FISCAL 2012 OUTLOOK
(Unaudited)

NET REVENUE GUIDANCE                                    Percentages
                                                         
Estimated change in net revenues for Fiscal 2012
compared to levels in Fiscal 2011
GAAP basis                                                 -2.00 % to   0.00 %


EARNINGS PER SHARE GUIDANCE (based on recent exchange    U.S. Dollars
rates)
Diluted income per common share from continuing                     
operations
GAAP basis (assuming minimal pension expense / income)   $ 2.97    to $ 3.00
Restructuring charges and other exit costs (a)             0.68    to   0.78
Adjustment of Lejaby loan receivable (b)                   0.29    to   0.29
Acquisition expense (c)                                   0.06   to  0.08 
As adjusted (non-GAAP basis) (d)                         $ 4.00   to $ 4.15 


      Reflects between $29 million to $33 million of estimated restructuring
      charges (net of an income tax benefit of between $10 million and $12
      million) primarily related to the consolidation of certain international
(a)  operations, the reorganization of the Company's management structure,
      the closure of facilities or retail stores, the exit of CKJ.com and the
      transition of the Company's CK/Calvin Klein "bridge" businesses back to
      Calvin Klein, Inc.

      Reflects $12.0 million of expenses related to the adjustment of the loan
      receivable in connection with the Company's Lejaby discontinued
(b)   business. The reporting entity that recorded this adjustment has a 0%
      local statutory tax rate. Such adjustment was recorded in other
      income/expense within income from continuing operations.

      Reflects between $2.7 million to $3.4 million of acquisition costs (net
(c)   of tax benefit of between $1.3 million and $1.6 million) incurred in
      connection with the Company's proposed merger with a wholly-owned
      subsidiary of PVH Corp.

      The Company believes it is useful for users of its financial statements
      to be made aware of the "As Adjusted" (non-GAAP) forecasted diluted
      income per common share from continuing operations as this is one of the
      measures used by management to evaluate the operating performance of the
      Company's continuing businesses on a comparable basis. The Company
(d)   believes that this non-GAAP measure will also enhance users’ ability to
      analyze trends in the Company’s business. In addition, the Company uses
      performance targets based, in part, on this non-GAAP measure as a
      component of the measurement of employee incentive compensation.
      Management does not, nor should investors, consider this non-GAAP
      financial measure in isolation from, or as a substitute for, financial
      information prepared in accordance with GAAP.

Contact:

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