For the second quarter:

• Net revenues were $455.9 million, down 9% from the prior year quarter
• Net revenues, on a constant currency basis, fell 0.5% compared to the prior year quarter
• Gross margin decreased 320 basis points to 41% of net revenues
• Selling, general & administrative (SG&A) expense, as a percent of net revenues, declined 260 basis points to 32%
• Operating income was $40.7 million, or 9% of net revenues, compared to $48.9 million, or 10% of net revenues, in the prior year quarter
• Income per diluted share from continuing operations was $0.40 compared to $0.56 in the prior year quarter, and include $0.08 and $0.14, respectively, of costs related to restructuring expenses, pension expense, certain tax related items and other items
• Adjusted, non-GAAP (excluding the items above) income per diluted share from continuing operations was $0.48 compared to $0.70 for the prior year quarter

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.

“The ongoing success of our strategies to grow our Calvin Klein^® businesses globally, increase our international presence and expand our direct-to-consumer channel led to a solid quarter for Warnaco,” stated Joe Gromek, Warnaco’s President and Chief Executive Officer. “While overall revenues in constant dollars were flat, international revenues in constant dollars rose 8% led by double digit growth in Asia and Latin America. We continue to capitalize on the significant opportunity that exists for our Calvin Klein businesses outside the U.S., and our international revenues, in constant dollars, now account for approximately 53% of total Company revenues. Our direct-to-consumer business recorded positive comparable store sales, we opened 43 new locations during the quarter and we remain on track to grow 2009 square footage by 24%, or an additional 120,000 square feet.”

Mr. Gromek continued, “As we begin the second half of the year, we remain encouraged about our business prospects and have therefore increased our annual guidance range. Our team has been successful implementing our expense reduction initiatives and managing inventory and, while we expect challenges related to the economy and currency to continue, we are confident in our ability to achieve our goals. We expect 2009 to represent another year of solid accomplishments for Warnaco and increased value for our shareholders.”

Fiscal 2009 Outlook

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

• The Company now anticipates net revenues will decline 7% -9% and expects constant dollar net revenues to decline 0%-2%.
• Based on recent currency exchange rates, the Company now expects diluted earnings per share from continuing operations in the range of $2.60 - $2.75
• The Company’s prior guidance was for net revenue declines in the range of 9%-12% and diluted earnings per share from continuing operations of $2.50 - $2.66 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 $2.38 - $2.49 per diluted share (assuming minimal pension expense), to the adjusted fiscal 2009 outlook above.

Second Quarter Highlights

Total Company

Net revenues fell 9%, and in constant dollars declined 0.5%, compared to the prior year quarter. Constant dollar growth in all our international businesses largely offset domestic declines, much of which related to a shift in timing of sales into the first quarter. Ongoing expansion of the Company’s Calvin Klein businesses contributed to double digit growth, in constant currency, in Asia and Latin America.

Gross margin decreased 320 basis points to 41% of net revenues. Gross margin was adversely affected by currency exchange rates, a more promotional environment as well as a shift in revenue mix favoring lower-margin businesses.

SG&A expense declined 16% to $145.6 million. SG&A as a percent of net revenues decreased 260 basis points to 32% of net revenues. The decrease reflects the benefit from currency exchange rates and the Company’s expense reduction initiatives partially offset by increased expense related to the opening of additional retail stores.

Operating income was $40.7 million, or 9% of net revenues, down 17%, compared to $48.9 million, or 10% of net revenues, in the prior year quarter. Operating income for the second quarter of fiscal 2009 and 2008 was adversely affected by $2.1 million and $5.7 million, respectively, of restructuring charges and pension expense.

The Company recorded income from continuing operations of $18.4 million, or $0.40 per diluted share, compared to $26.5 million, or $0.56 per diluted share, in the prior year period. Income from continuing operations for the second quarter of fiscal 2009 included a tax charge of $2.5 million, or $0.05 per diluted share, primarily related to the correction of prior period tax provisions, resulting in an effective tax rate of 41% in the quarter.

Income from continuing operations, on an adjusted basis (excluding costs related to restructuring expenses, pension expense, certain tax related items and other items), as detailed in the accompanying schedules, was $0.48 per diluted share compared to $0.70 per diluted share in the prior year period.

The impact of foreign currency exchange rates decreased fiscal 2009 second quarter net revenues, gross profit, SG&A and operating income by approximately $45.0 million, $23.2 million, $15.3 million and $7.7 million, respectively, and decreased income from continuing operations by approximately $0.15 per diluted share.

Segment Results

Sportswear

Sportswear Group net revenues fell 10% to $223.5 million and were flat on a constant currency basis. Operating income decreased to $13.6 million, or 6% of Sportswear Group net revenues. Sportswear results, in the quarter, were adversely affected by currency exchange rates, the timing shift in membership club sales as well as a more promotional environment, partially offset by reductions in SG&A related to the Company’s cost cutting initiatives. Outside the United States, the Company continued to grow its Calvin Klein Jeans business, through new geographies and an expanded retail effort.

Intimate Apparel

Intimate Apparel Group net revenues fell 8% to $158.1 million and were up 1% on a constant currency basis. Operating income decreased to $27.0 million, or 17% of Intimate Apparel Group net revenues. Currency exchange rates, timing shifts of certain sales and the challenging economic environment adversely affected net revenues of the Calvin Klein Underwear wholesale business, but were partially offset by the continued global expansion of Calvin Klein Underwear’s retail initiative. The Intimate Apparel Group’s core brands, Warner’s^® and Olga^®, recorded a 400 basis point improvement in operating margin, despite a 2% decline in net revenues, as a result of disciplined execution and expense control.

Swimwear

Swimwear Group net revenues fell 9% to $74.2 million and were down 6% on a constant currency basis. Timing shifts of certain sales and a challenging economic environment were the primary factors affecting Swimwear Group net revenues. Operating income increased to $8.2 million, compared to $7.7 million in the prior year quarter, and operating margin gained 160 basis points to 11% of Swimwear Group net revenues. Continued focus on inventory management and reductions in SG&A expense drove the improved operating margins.

Balance Sheet

Cash and cash equivalents at July 4, 2009 rose to $177.6 million compared to $154.5 million at July 5, 2008. At quarter-end, borrowings under the Company’s domestic revolver had been repaid and net debt was $44.3 million compared to $146.3 million in the prior year quarter.

Accounts receivable, net, decreased to $281.4 million at July 4, 2009 from $310.9 million at July 5, 2008.

Net inventories were down 8% to $291.6 million at July 4, 2009 compared to $316.3 million at July 5, 2008. The Company is comfortable with the quality of its inventories and continues to conservatively plan the business.

“We were pleased with our second quarter results given considerable headwinds driven by unfavorable currency, weak economies around the world and the timing shift of certain sales into our first quarter,” commented Larry Rutkowski, Warnaco’s Executive Vice President and Chief Financial Officer. “Our cash generation and strong balance sheet permit us to continue to invest in our growth as we seek to gain market share and better position ourselves for the remainder of this year and beyond.”

Conference Call Information

Stockholders and other persons are invited to listen to the second quarter earnings conference call scheduled for today, Tuesday, August 11, 2009, at 4:30 p.m. EDT. To participate in Warnaco’s conference call, dial (877) 692-2592 approximately five to ten 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 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 August 11, 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.

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