MarketWatch – The Warnaco Group should consider selling itself as a way to deliver value to shareholders after a slump in the sportswear company’s stock this year, activist hedge fund firm Barington Group said on Monday.
Barington reported a 5.6% stake in the company and said it wants to meet with Warnaco executives to discuss ways to boost its share price.
Warnaco executives need to execute better after a series of “recent operating disappointments,” including a financial restatement, missed revenue and profitability targets and extra costs from implementing a new software system in its swimwear division, Barington said.
Warnaco shares have lost a quarter of their value so far this year. The stock rallied 3.9% to $19.19 on Monday.
The company should cut stock-option and restricted-stock grants to executives and boost profit margins, which lag rivals, by reducing general and corporate expenses and improving merchandizing, Barington added.
