Jones Apparel posts operating profit on tight inventory
Thursday, 11 February 2010
NEW YORK, Feb10 (Reuters): Jones Apparel Group Inc posted operating profit for the critical holiday quarter in line with forecasts as tighter supply management and the closing of weak businesses offset soft retail spending.
Chief Executive Wesley Card in a statement said the results reflected "low consumer confidence and spending levels" but also tighter cost controls and inventory levels.
"We also streamlined our supply chain and distribution networks and closed marginally profitable businesses. Our retail improvement plan is showing positive results," he said.
Jones' gross profit margin rose 4.8 per centage points to 34.3 per cent during the quarter on what it called careful management of inventories.
The owner of brands including Nine West, Jones New York and Anne Klein posted a net loss attributable to shareholders of $130.4 million, or $1.53 per share, for the fourth quarter, compared with a loss of $822.9 million, or $9.86 per share, a year earlier.
Excluding items such as impairment and restructuring charges, Jones posted a profit of 11 cents per share, matching the average forecast of analysts.
Revenue fell 8.3 per cent to $777 million, in part because the company closed marginally profitable businesses. Comparable-store sales rose 2 per cent.
Chief Executive Wesley Card in a statement said the results reflected "low consumer confidence and spending levels" but also tighter cost controls and inventory levels.
"We also streamlined our supply chain and distribution networks and closed marginally profitable businesses. Our retail improvement plan is showing positive results," he said.
Jones' gross profit margin rose 4.8 per centage points to 34.3 per cent during the quarter on what it called careful management of inventories.
The owner of brands including Nine West, Jones New York and Anne Klein posted a net loss attributable to shareholders of $130.4 million, or $1.53 per share, for the fourth quarter, compared with a loss of $822.9 million, or $9.86 per share, a year earlier.
Excluding items such as impairment and restructuring charges, Jones posted a profit of 11 cents per share, matching the average forecast of analysts.
Revenue fell 8.3 per cent to $777 million, in part because the company closed marginally profitable businesses. Comparable-store sales rose 2 per cent.