(RTTNews) - Wednesday morning, Jones Apparel Group, Inc.
(JNY), a designer, marketer and wholesaler of branded apparel, footwear and accessories, said earnings for the first quarter of fiscal 2008 declined 19.5% hurt by mark down support to retail partners and continued soft trend consistent with the overall retail climate.
The company said comparable store sales were down 8.7% for the quarter compared to 2007. Jones also announced a regular quarterly cash dividend of $0.14 per share to holders of record as of May 16 payable on May 30.
The company said net income for the first quarter ended April 5, 2008 declined to $19.5 or $0.23 per share from $47.8 million or $0.44 per share in the same period last year. Share count for the quarter was 85.4 million compared with 109.1 million in the corresponding period last year.
Excluding the effects of the sale of Barneys New York, which was completed in September 2007, and its related results, the impact of severance and other expenses related to the company's strategic restructuring activities and certain other charges, adjusted earnings from continuing operations for the first quarter of 2008 were $31.5 million or $0.37 per share, as compared with $50.5 million or $0.46 per share for the same period last year. On average, 9 analysts surveyed by First Call/Thomson Financial expected the company to earn $0.38 per share for the quarter.
Income from operations for the quarter declined to $39.9 million from $83.3 million in the prior year period. Gross profit was $320.7 million or 32.9% of sales compared with $365.1 million or 33.9% of sales in the comparable period last year.
Revenues for the quarter totaled $975 million compared with $1,079 million for the first quarter of 2007. The year over year change included the approximate $100 million decrease related to the planned exit from certain moderate sportswear lines, which was substantially complete by December 31, 2007. 6 analysts had a revenue consensus estimate of $936.93 million for the quarter.
Looking ahead, the company said 'We have tempered our guidance for 2008, to match our retail customers' conservative plans for the back half of the year. Our updated guidance for 2008 full year adjusted earnings per share from continuing operations is a range of $1.20 to $1.35.'
Earlier, the company expected fiscal 2008 adjusted earnings from continuing operations to be in the range of $1.25 to $1.50 per share. Currently, 9 street analysts expect the company to earn $1.23 per share for fiscal 2008.
JNY closed Tuesday's regular trading session at $15.00.
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