UPDATE: Benchmark Lowering Price Target On Warnaco Group

Benchmark Capital is lowering its price target on shares of Warnaco Group, Inc. (NYSE: WRC) to $60 from $65, but it still has a Buy rating on shares.

In a note to clients, Benchmark Capital writes, "We lowered our 2011 EPS estimate to $3.87, from $4.00, though we believe there could be upside potential through share repurchases. We reduced our 2Q11 EPS estimate to $0.77, from $0.90, primarily on more margin pressure than originally modeled. We believe revenues for the quarter were generally okay, although high gross margin consumer direct sales may have slipped to approximately a comp of 7%, slightly down from it's to a strong start with comps up 10%, in April. We also believe there may have been some margin pressure due to product cost increases and an increase in promotional activity to move units. We lowered our Q2 gross margin by 50bp to 43.7%."

Shares of WRC closed at $53.61 on Friday.