Jones Apparel warns FY profit may miss

US: Jones Apparel warns FY profit may miss

By just-style.com | 29 January 2010

Jones Apparel Group Inc has warned that its full-year profit is likely to below analysts' expectations after being dragged down by impairment and restructuring charges.

The New York based firm, which owns the Nine West and Jones New York brands, says the non-cash charges of around $150m will push it to a fourth-quarter loss of $1.53 to $1.56 a share, and a full-year loss of $1.02 to $1.05.

Excluding these charges, fourth quarter earnings per share are likely to be between $0.08 and $0.11, versus a loss of $0.04 per share the year before. And full year earnings per share will be in a range of $1.11 to $1.14, compared with $0.87 per share a year earlier.

The company says that while encouraged by improved fourth quarter results due to a less promotional environment throughout the holiday season, "the environment remains uncertain."

President and CEO Wesley R Card added: "The year 2009 presented a unique set of challenges and we believe we are entering 2010 from a position of operational and financial strength."

Jones Apparel is scheduled to report final fourth-quarter and full-year results on 10 February.

Sectors: Apparel, Finance

Companies: Jones Apparel