Denim & junior businesses performs better at Jones Apparel
02 May '07
4 min read
"This decision will not impact in any way our denim and junior division, which is also reported in the moderate segment and includes labels such as Gloria Vanderbilt, l.e.i., Energie, GLO, Jeanstar, Grane and others."
Wesley R. Card, Chief Operating and Financial Officer, commented, "Inventory at April 7, 2007 totaled $660.5 million, compared to $590.0 million at the end of the prior year period. Accounts receivable at the end of the first quarter was $570.3 million compared to $555.7 million at the end of the prior year period."
"We ended the quarter with $1,084.6 million of funded debt and, net of $47.1 million cash on hand, our debt to book capitalization ratio was 31.5%, in line with our expectations. Our cash used by operating activities during the period was $184.4 million, compared to cash provided by operating activities of $43.4 million in the prior year."
"The decrease in cash from operations was the result of the timing of shipments and payments for inventory, as well as the positive impact of the exit from Polo Jeans Company last year. The costs and non-cash write-offs associated with the decision to exit or sell some of our low-margin moderate sportswear collection product lines will be identified and reported during the second quarter."
Mr. Boneparth concluded, "Based on our first quarter results, and taking a cautious view of the remainder of the year, we have adjusted our outlook for 2007. We are now targeting 2007 full year adjusted earnings per share to be in a range of $1.95 to $2.05, compared to 2006 adjusted earnings per share of $2.19. This guidance reflects a cautious forecast for our company-owned retail and outlet stores based on current trends and the potential operating impact of exiting the moderate product lines described above."
The Company's Board of Directors has declared a regular quarterly cash dividend of $0.14 per share to all common stockholders of record as of May 18, 2007 for payment on June 1, 2007.
The Company will host a conference call with management to discuss these results at 9:00 a.m. eastern time on May 2, 2007, which is accessible through a web cast at company's website. The call will be recorded and made available through May 10.
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