Jones Apparel reports 2007 Q4 & full year financial results
13 Feb '08
4 min read
Our wholesale businesses were negatively impacted by higher than planned markdowns to support our retail partners, and our retail operations continued to trend negatively during the quarter consistent with the overall climate. Comparable store sales in our own stores were down 4.8% for the fourth quarter. Despite these challenges, we were gratified to meet expectations for the quarter and full year."
Cash provided by continuing operating activities during 2007 was $121 million, compared with $386 million in the prior year. Similar to the effect on earnings results, the decrease in cash from continuing operations resulted from lower earnings due both to the exiting of the moderate sportswear lines and the difficult retail environment, costs related to our strategic initiatives, the timing of shipments and payments for inventory, and the absence of the positive impact from the exit of Polo Jeans Company.
John T. McClain, Jones Apparel Group Chief Financial Officer, commented, "Our financial position remains strong. We ended the year with $303 million of cash and $783 million of total debt, which is $107 million less debt than at year-end 2006. This translates into a debt to total capitalization ratio, net of cash, of 19.4%. We will continue to review our cost structure for additional improvements as we move into 2008."
Mr. McClain continued, "Our guidance for 2008 full year adjusted earnings per share from continuing operations is a range of $1.25 to $1.50, compared with 2007 adjusted earnings per share from continuing operations of $1.26. The fairly large range in guidance for 2008 reflects the current uncertainty in general economic conditions."
Mr. Card concluded, "As we enter 2008, we expect to begin to realize the benefits of many of the turnaround and recovery initiatives that have been implemented throughout the Company, including enhancing our product offerings, streamlining of our supply chain and distribution networks, as well as jettisoning several of our marginally profitable businesses. We have the people, products and operational excellence to reestablish Jones Apparel Group as best in class among our peers. Taking into account the challenges of the overall macroeconomic environment, however, we remain cautious on our outlook for 2008."
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 February 29, 2008 for payment on March 14, 2008.
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