Kellwood to sell New Campaign division to Polo Ralph Lauren
08 Nov '06
3 min read
Kellwood Company announced it has agreed to sell its New Campaign division, which produces Polo, Ralph Lauren, Lauren, and Chaps belts and small leather goods, to Polo Ralph Lauren Corporation.
The transfer of the New Campaign business to Polo Ralph Lauren includes the sale of certain business assets, and is subject to the satisfactory completion of due diligence activities.
Kellwood has agreed to provide Polo Ralph Lauren with transition services for up to one year following the close of the transaction.
Kellwood expects to receive proceeds of approximately $9 million and does not anticipate a significant gain or loss from this sale. The Company expects to close this transaction by April 2007.
Third Quarter For the third quarter of fiscal 2006, the Company expects net sales from ongoing operations as adjusted for the newly discontinued businesses to approximate $500 million, as compared to its previous expectation for net sales from ongoing operations of $520 million and versus actual net sales from ongoing operations of $522 million in the third quarter of last year.
This compares to the Company's previous guidance for net earnings from ongoing operations of $18.0 million, or $0.69 per diluted share that also included $0.01 per diluted share of stock option expense and versus net earnings from ongoing operations of $15.3 million, or $0.57 per share, in the third quarter of 2005.
Total Year For fiscal 2006, excluding the results of the Vince acquisition which are not expected to have a significant impact on forecasted fourth quarter results, the Company expects net sales from ongoing operations as adjusted for the newly discontinued businesses to be in the range of $1.890 billion.
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