The sportswear segment, including the Nautica and Kipling brands, experienced the most drastic decline in revenue, down 19 percent to $115 million due to continuing struggles in U.S. department stores and outlet channels. There was a 20 percent decrease in Nautica brand revenue and a mid-teen decrease in the Kipling brand’s North American business, compared with the same period last year.
The jeanswear segment saw second-quarter revenue up 3 percent to $629 million. Wrangler brand revenue increased 2 percent across regions, and Lee brand was up 8 percent with a mid-teen percentage rate jump in its Europe business.
The contemporary segment, which consists of 7 For All Mankind, Splendid and Ella, was classified as discontinued operations in the report, following the June sale of the category to Delta Galil Industries, Ltd. for $120 million.
Earnings per share for Q2 were $0.35 compared with $0.39 during the same period last year. Company revenue is now expected to increase only 3 to 4 percent this fiscal, as compared to the previous outlook of a mid-single digit percentage rate increase.