Jones Group Q4 Loss Narrows Despite Sales Decline

In Industry News, What's New by Jeff PrineLeave a Comment

Nine WestNew York—Jones Group, which recently agreed to be acquired by Sycamore Partners, today reported a narrowed fourth quarter loss as much lower costs offset a drop in sales.

For the quarter ended Dec. 31, the parent to Nine West, Jones New York, Anne Klein and others posted a loss of $46.2 million, or 61 cents a share, compared with a loss of $80.3 million, or $1.06 a share, a year ago. Excluding asset impairment charges, restructuring-related costs and other items, adjusted earnings rose to 24 cents from 14 cents last year.

Net revenue dropped 8.5% $888.9 million from $971.9 million in fourth quarter last year. Analysts’ average estimate had expected $914 million in sales.

Gross margin widened to 36.1% from 34.6% while input costs dropped 11%. Net interest expense and financing costs plummeted 75% from a year earlier. Selling, general and administrative expenses were down 2.9%.

“Our Domestic Retail, Domestic Wholesale Footwear and Accessories and International Retail businesses achieved the largest operating improvements,” said Wesley Card, chief executive. “Our Sportswear business remained more challenging and promotional, although we are encouraged with our overall turnaround efforts in this business.”

In December, Jones Group agreed to be acquired by private-equity firm Sycamore Partners in a deal valued at $2.2 billion, including debt. The deal os expected to close in the second quarter.