CORRECT: Jones Group Swings To 1Q Loss; Profit Excluding Items Beats Expectations
April 25 2012 - 01:08PM
Dow Jones News
Jones Group Inc. (JNY) swung to a small fiscal first-quarter
loss, but excluding costs for acquisition, restructuring and
severance charges, it posted a much-better-than expected profit,
aided by the earlier Easter and warmer temperatures.
Shares rose 6.2% to $13 premarket.
Jeanswear, shoes and accessories did particularly well, while
traditional sportswear "remained more challenging and promotional,"
Chief Executive Wesley Card said.
Card also voiced some caution, saying that while generally
encouraged by signs of greater consumer confidence, "the economic
environment still contains mixed signals and consumer spending is
unpredictable."
Jones posted a loss of $1.2 million, or 1 cent a share, compared
with a year-earlier profit of $25.7 million, or 30 cents a share.
Excluding costs for acquisitions, closing some stores and
restructuring, the company posted earnings per share of 31 cents,
down from 38 cents a year earlier.
Net sales slipped 2.6% to $936 million.
Analysts polled by Thomson Reuters expected 14 cents a share on
$937.3 million of sales.
To try and better position for the uncertain environment, Jones
Group has made major enhancements to its fall offerings, especially
its sportswear product lines, Card said. Jones makes apparel and
accessories under names including Nine West, Anne Klein and Jones
New York.
Jones, whose brands are sold by retailers ranging from Saks Inc.
(SKS) to Wal-Mart Stores Inc. (WMT) has been keen to diversify into
the high-end market, last year acquiring luxury shoe retailer Kurt
Geiger.
The company finished the quarter with $147 million in cash and
its revolving credit line undrawn. "Our approach to inventory
commitments continues to be conservative," Chief Financial Officer
John McClain said.
-By Karen Talley, Dow Jones Newswires; 212-416-2196;
karen.talley@dowjones.com
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