Home / Knowledge / News / Fashion / Jones Apparel Q4 results in line with guidance
Jones Apparel Q4 results in line with guidance
11
Feb '09
Jones Apparel Group Inc reported results for the fourth quarter and year ended December 31, 2008. Revenues for the fourth quarter of 2008 were $847 million, as compared with $839 million for the fourth quarter of 2007. Revenues for the full year 2008 were $3,616 million, as compared with $3,849 million for the full year 2007.

The Company's exit from certain moderate sportswear lines, which was substantially complete by December 31, 2007, impacted the year by approximately $270 million and was the primary driver of the year-over-year decrease.

The Company reported adjusted earnings per share from continuing operations (which excludes impairments of goodwill and trademarks in our footwear and accessories businesses, the impact of severance and other expenses related to our restructuring activities, repositioning of the l.e.i. brand and certain other charges) of $(0.04) for the fourth quarter of 2008, as compared with adjusted earnings per share from continuing operations of $0.09 in the same period last year.

Adjusted earnings per share from continuing operations on a full year basis were $0.88 in 2008, compared with 2007 adjusted earnings per share of $1.26 (see reconciliation of adjusted earnings to reported earnings in the accompanying schedule).

As reported under generally accepted accounting principles ("GAAP"), the Company reported a loss of $(10.08) per share from continuing operations for the fourth quarter of 2008, as compared with a loss of $(1.01) per share from continuing operations for the same period last year. On a full year basis, the Company reported a loss from continuing operations of $(9.24) per share and income from continuing operations of $0.45 per share for 2008 and 2007, respectively.

The 2008 results include non-cash impairment charges of approximately $838 million for certain goodwill and trademarks within our Wholesale Footwear and Accessories business. The full year 2007 results also included non-cash goodwill and impairment charges of approximately $166 million, primarily relating to the exited moderates sportswear lines.

Charges in both periods were a result of the Company's required impairment evaluations under GAAP. The 2008 fourth quarter results also include charges relating to the initiation of certain cost reduction actions of $7 million. Those measures are expected to result in annual cost savings of approximately $33 million.

Wesley R. Card, Jones Apparel Group President and Chief Executive Officer, stated: "Our fourth quarter results are in line with the guidance we provided last month. Consistent with the retail industry in general, our operating results were heavily impacted by the highly promotional climate and weak holiday season. We are pleased to have generated positive operating cash flow in a very tough environment and that our financial position remained strong."

Cash provided by continuing operating activities during 2008 was$176 million, an improvement of $56 million when compared with 2007. The improvement in cash flow was largely driven by enhanced working capital management, the receipt of an income tax refund during 2008 and the absence of the final payment associated with exiting the Polo Jeans Company business. The Company has no amounts drawn under its $600 million of committed revolving credit facilities.


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search