US: Poor weather pushes Jones Group to Q2 loss
- Net losses reached $3.4m from an $8.1m profit last year
- Revenue fell 1.1% to $845.6m
- Gross margin declined to 35.6%
US clothing company The Jones Group swung to a second quarter net loss as sales and margins were hit by poor weather which led to more promotions.
The company today (31 July) said that net losses reached US$3.4m over the quarter ended 6 July, from a profit of $8.1m in the same period of the prior year.
Revenue fell 1.1% to $845.6m, as gross margin declined to 35.6% from 38.2%.
"Second quarter revenues were in line with our expectations, with the jeanswear segment registering the largest improvement in operating results, as those product lines continue to perform well," said CEO Wesley Card.
"The international wholesale segment also showed improved operating results, led by the Nine West and Stuart Weitzman international businesses. For other areas of the business, the weather impacted seasonal product sales, which generated higher promotional levels.
"As a result, second quarter gross margins were approximately 260 basis points below last year. We anticipate we will achieve improved performance in fall 2013 with our new and refocused sportswear product offerings."
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