News Flash

Denim & junior businesses performs better at Jones Apparel

02 May '07

4 min read

Jones Apparel Group Inc reported results for the first quarter ended April 7, 2007. Revenues for the 14-week first quarter of 2007 totaled $1,248.2 million versus revenues of $1,215.3 million for the 13-week first quarter of 2006. The additional week added approximately $28.6 million to revenues for the quarter in our retail segment.

Earnings per share were $0.44 for the first quarter of 2007, as compared to $0.22 in the same period last year. Excluding the impact of severance and other expenses related to restructuring activities and the strategic review of operations and certain other charges, adjusted earnings per share for the first quarter of 2007 were $0.50, as compared to $0.66 for the same period last year, as detailed in the accompanying schedule.

Peter Boneparth, President and Chief Executive Officer, stated, "We were pleased with first quarter results in our wholesale better apparel, footwear and accessories segments, our denim and junior businesses and with the performance of our Barney's luxury retail chain, which registered a comparable store sales increase of 10.1%."

"However, results were disappointing in our company-owned retail chains. Comparable store sales were down 5.0% for the period, driven primarily by our footwear outlet doors, which declined on a comparable store basis by 12.3% with heavy promotional selling to clear excess inventory. In addition, results were disappointing in our moderate sportswear product lines."

Mr. Boneparth added, "Our continued strategic operational reviews and efforts to improve profitability, and the continued trend of our moderate customers towards differentiated product offerings, has led us to make the strategic decision to exit or sell some of our moderate product lines by year end 2007."

"These product lines will represent net revenues in 2007 of approximately $300 million, with estimated combined operating margins in the low single digits. We believe that exiting or selling these product lines will strengthen our future operating metrics and allow us to focus primarily on growth opportunities in our remaining wholesale businesses, all of which have strong fundamentals and operate at substantially higher margins."

More Jones Apparel Group Inc News... More Fashion News - United States Of America...