Jones 3Q profits drop 57 pct, weighed by charges
NEW YORK (AP) — Clothing and footwear maker The Jones Group Inc. on Wednesday posted a 57-percent drop in third-quarter income, weighed down by special charges.
Jones, whose brands include Nine West and Anne Klein, said it earned $17 million, or 22 cents per share, for the three-month period ended Sept. 29. That compares with $39.6 million, or 49 cents per share, in the year-ago period.
The per-share results got one-penny boost in the recent quarter due to a 6 percent reduction in the number of outstanding shares since last year.
Adjusted to exclude restructuring charges, asset impairment charges, acquisition-related costs and other items, Jones said that the company earned 57 cents per share in the latest quarter, compared with 48 cents per share in the year-ago period.
Analysts, on average, were expecting adjusted earnings of 33 cents per share, according to FactSet.
Revenue, including licensing income, was basically flat at $1.04 billion. Analysts had expected $1.05 billion.
Jones has been focused on acquiring higher-end brands like shoe makers Kurt Geiger and Stuart Weitzman. It acquired shoe designer Brian Atwood's brand in June as part of that strategy.
In a statement, Wesley R. Card, CEO of Joneses, said that he was pleased with the third-quarter results and that the company continues to benefit from "conservative inventory planning and control."
"Our domestic wholesale footwear and accessories and jeanswear businesses were our best performers, while our structured sportswear business and retail channels remained more challenging and promotional," Card said in a statement. "Our international segments continued to perform quite well, especially in the face of difficult economic climate, particularly in Western Europe."
Jones Group shares fell 49 cents, or 3.8 percent, to $12.58 in morning trading. The stock has traded between $8.13 and $13.98 in the past 52 weeks, and ended Tuesday up about 24 percent since the start of the year.