By Nathalie Tadena
Jones Group Inc.'s (JNY) third-quarter earnings climbed 68% as
the footwear and apparel maker's interest expenses fell, though
revenue and core earnings weakened.
The parent of Nine West shoes and Jones New York apparel has
been adding some luxury labels, such as Stuart Weitzman, to its
portfolio to give its classic brands some edge. But the
company--whose brands are sold by retailers such as Saks Inc. (SKS)
and Wal-Mart Stores Inc. (WMT)--has seen its profits and margins
pressured by high promotions.
Grappling with sluggish sales of its legacy brands and
lackluster results at some of its retail stores, along with
overtures from an activist hedge fund, Jones over the summer hired
advisers to help it explore a possible sale of the company.
Chief Executive Wesley Card said the latest period's results
were in line with the company's expectations. He noted the
jeanswear segment again posted the largest improvement in operating
results. The company's domestic retail, international wholesale and
international retail segments also had improved operating results,
led by the Nine West Outlet and Stuart Weitzman domestic retail
businesses and the Jones New York businesses in Canada and Spain,
Mr. Card said.
Jones Group reported a profit of $29.3 million, or 38 cents a
share, compared with a year-earlier profit of $17.4 million, or 22
cents a share. Excluding asset impairment charges,
restructuring-related costs and other items, per-share earnings
fell to 48 cents from 57 cents.
Revenue slipped 1.3% to $1.02 billion. Analysts surveyed by
Thomson Reuters recently projected earnings of 42 cents and revenue
of $1.04 billion.
Gross margin was unchanged at 35.2%.
Net interest expense and financing costs fell 61% form a year
earlier. Selling, general and administrative expenses were down
1.8%.
Shares closed at $15.32 and were inactive premarket. The stock
is up 39% since the start of the year.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
Order free Annual Report for The Jones Group, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US48020T1016 or
call +44 (0)208 391 6028
Order free Annual Report for Saks, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US79377W1080 or
call +44 (0)208 391 6028
Order free Annual Report for Wal-Mart Stores, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US9311421039 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
