Jones Apparel Group announces decline in Q1 profit - leatherbiz: Leadi Leatherbiz

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Jones Apparel Group announces decline in Q1 profit

05/05/2005

Jones Apparel Group Inc.'s, which owns brands such as Gloria Vanderbilt and Jones New York, and operates retailers Nine West and Barneys New York, said first-quarter profit has declined as weakness in the company's wholesale footwear, accessories and junior denim businesses hurt gross margins, but earnings did exceed Wall Street's target.

 

For the latest quarter, Jones said net income dropped 7.8% to $87 million from $94.4 million in the year-earlier period. Revenue for the period ended April 2 rose to $1.35 billion from $1.22 billion in last year's first quarter.

The fashion company, based in Bristol, Pennsylvania said it had strong results in its better wholesale apparel business, and benefited from shipments and operating income originally planned for the second-quarter. That was more than offset by less full-price selling of wholesale footwear, accessories and I.e.i. denim, which reduced gross margins, the company said.

In a statement chief executive Peter Boneparth said: "We feel it is prudent to maintain a cautious outlook for the remainder of the year with customer consolidation and macroeconomic issues potentially creating consumer concerns."



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