Jones Group’s profit helped by sales to department stores
New York -- Jones Group Inc. reported a higher-than-expected quarterly profit, helped by a rise in sales of shoes and jeans to U.S. department stores, which helped make up for a big drop in business at its own stores.
Third-quarter revenue slipped 0.7% to $1.035 billion as sales at the company's U.S. stores were down 6.7%.
Net income fell to $17.8 million from $41.2 million a year earlier. But excluding charges related to severance and the writedown of the cost of some assets related to store closings and other restructuring costs, as well as some gains and charges related to currency fluctuations and other items, the company earned 57 cents per share. That compared with the average analyst forecastof 32 cents a share.
"Our domestic wholesale footwear and accessories and jeanswear businesses were our best performers, while our structured sportswear business and retail channels remained more challenging and promotional,” said Wesley R. Card, CEO, Jones Group. “Our international segments continued to perform quite well, especially in the face of a difficult economic climate, particularly in Western Europe."