Warnaco has decided to focus on its Speedo and Calvin Klein labels in swimwear and to outsource all the production of these items. The move is expected to bolster the company’s income from continuing operations by $4.6 million, but will involve extraordinary charges of $30-32 million. While exploring strategic alternatives for the Lejaby, Rasurel and Elixir brands of intimate apparel and swimwear, Warnaco will sell off its Catalina, Anne Cole and Cole of California brands of designer swimwear by June 30, 2008. The ownership of Warnaco’s manufacturing operations in Mexico will be transferred to a business partner, with a guarantee that it will make some six million Speedo swimsuits over a 3-year period.