Jones Apparel Group's apparel & sportswear perform better in Q2
29 Jul '05
6 min read
Their moderate sportswear businesses also performed well and benefited greatly from the infrastructure changes implemented last year.
They continued to experience challenges in our wholesale footwear, accessories and junior denim businesses. Comparable store sales from their owned footwear and ready-to-wear stores (excluding Barneys New York) increased 1.8 percent versus an increase of 3.8 percent in the prior year. The Barneys New York luxury retail business reported comparable store sales increases of 13.0 percent; to date, they have been very pleased with the performance of this business. They are moving forward with plans to expand the resources available to Barneys in the form of additional management personnel, improved systems, and increased capital to support its store expansion program."
Wesley Card, Chief Operating and Financial Officer, commented, "The acquisitions of Maxwell Shoe and Barneys New York added $166.7 million to revenues during the quarter, partially offset by decreases in our wholesale better apparel, footwear and accessories business and their junior denim business. Our operating profit margin for the quarter was 9.0 percent, compared to 12.8 percent in the prior year.
This decrease was primarily a result of gross margin pressure across many of our wholesale businesses largely attributable to lower levels of full price sales, along with the inclusion of Barneys, which carries a lower operating margin than the company average. The operating cash flow during the six months ending July 2, 2005 improved by $18.8 million over the same period last year, as our working capital planning remained disciplined."
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
