NEW YORK — As speculation continues to swirl over its possible sale and breakup, The Jones Group Inc. said Wednesday that adjusted earnings per share for the third quarter beat Wall Street’s consensus estimate by 6 cents.
The company posted a 66.5 percent increase in net income for the three months ended Oct. 5, rising to $28.3 million, or 38 cents a diluted share, compared with $17 million, or 22 cents, a year ago. On an adjusted basis, earnings per share were 48 cents for the quarter, versus adjusted EPS of 57 cents a year ago. That’s still 6 cents better for the current period than the consensus estimate among Wall Street analysts of 42 cents. Net sales fell 1.3 percent to $1.01 billion from $1.25 billion.
For the nine months, net income rose 6.7 percent to $25.5 million, or 34 cents a diluted share, from $23.9 million, or 31 cents, a year ago. Net sales rose 1.8 percent to $2.84 billion from $2.79 billion.
Wesley R. Card, chief executive officer, told Wall Street analysts in a conference call that the “strongest segment once again was domestic wholesale jeanswear.”
Card added that given the economic backdrop, “we’re maintaining our overall conservative approach to planning. It still remains unclear how consumers’ discretionary spending will develop in the final quarter of 2013, although economic conditions continue to be slowly improving worldwide.”
In a telephone interview, Card noted candidly that as the weather cooled in October, there was strong demand across some categories. “We’re in a strong boot cycle, as well as casual shoes. We could have a very good fourth quarter. It could shift quickly. It could shift with the weather or different macroeconomic conditions, such as the feelings people have on job security and where they stand.”
He said that denim for spring is trending toward softer colors, and “new treatments and other washes with interesting textures” have helped the company stay ahead of the competition.
Richard Dickson, president and ceo of branded businesses, said that there’s been a rebound in dresses, “particularly in Anne Klein, with graphic prints inspired by the Anne Klein archive.” Dresses in the Jones line also feature graphics, but they’re more “signature prints, consistent graphic prints refreshed season after season,” according to Dickson.
Card declined to comment on the status of a possible sale of the apparel and footwear divisions at Jones.
A report from Citigroup analyst Jenna Giannelli said, “We think it would be one of its higher-growth assets such as Nine West and Stuart Weitzman for which we think they could fetch at least $1 billion.”
Sycamore Partners is said to be tracking the footwear unit, while G-III Apparel Group is looking to acquire the apparel component. Financial sources said that G-III is out shopping for financing. Neither Sycamore, G-III nor Jones have ever commented about any possible transaction.
Shares of Jones closed at $15.35 in trading Wednesday on the New York Stock Exchange.
Exclusive: Nicola Formichetti is parting ways with @diesel after nearly four years. Formichetti, who served as Lady Gaga’s stylist in 2009, joined Diesel in 2013 as creative and artistic director. His first show debuted in Venice with a show held at the Venetian Arsenal. #wwdfashion #wwdnews
The polo shirt - an icon of preppy style - is roaring back into fashion in many creative guises, like this A-line polyester top from @carven, worn with @31philliplim cotton and elastane pants. Designers stretched a fashion classic into all kinds of new permutations this season. See how @mayteallende styled the preppy trend on WWD.com #wwdfashion (📸 : Kinya)
(Market Editors: @andrew_shang and @elmercer, Makeup: @amandawilsonmakeup using @fentybeauty, Hair: @gonn24, Model: @bara_holotova at @women360mgmt)
“I do like period [projects] a lot because I like creating those worlds, a world that is different from today," costume designer Mark Bridges said about the '50s British couture featured in @phantomthread. Bridges created the overall aesthetic and individual fashion looks for the film, which stars Daniel Day-Lewis, Lesley Manville and Vicky Krieps. Pictured here is a gown he designed for Krieps who plays Alma – the love interest of Day-Lewis' character, Reynolds Woodcock. #wwdfashion
@prada is embracing the holiday season with a series of short movies about the art of gift-giving. "The Postman's Gifts", which was directed by American filmmaker Autumn de Wilde, focuses on the brand's signature Prada Galleria bag and features Elijah Wood as the postman. In the first two episodes, Wood's delivers the iconic bag to @emmaroberts, who plays herself as a movie star, and Sasha Frolova. #wwdfashion
“I think I never met the person while we were working,” Vicky Krieps said of Daniel Day-Lewis, who she plays the love interest of in “Phantom Thread.” Day-Lewis remained perennially in character, so much so that she feels she’s just meeting him now. “It’s interesting to see how different he is in real life to the character,” Krieps said. WWD sat down with the 34-year-old actress to talk about her new role in the period film, which brings the fifties’ gender dynamics into the mix. Read more on WWD.com. #wwdeye (📷: @lexieblacklock)
@gucci has expanded its “Places” project to include six new cities. The initiative, which was first unveiled in July, aims to invite people to explore inspirational locations for the brand. On the list is the Biblioteca Angelica library in Rome pictured here. See the other five new venues on WWD.com. #wwdfashion (📷: @massimo_listri_official)
#ad From tools to lashes, WWD rounded up wellness and beauty products guaranteed to take your skin care and makeup routines to the next level in 2018. Follow along as @laceandleatherbyelyse, @ashnfashn and @elleisalwayshere experiment with these products on their Instagram profiles and blogs. #NewYearBetterYou
Blogger @camilacoelho is one of the fastest growing beauty influencers around the world. The bilingual blogger has worked with brands like @revolve Beauty, @dior, @louisvuitton and more and has an Earned Media Value of $34,338,441, according to @tribedynamics. But Coelho isn’t the only influencer making a major impact — head to WWD.com to see the other fastest-growing influencers in six key global markets. #beautyfridays (📷: @zefashioninsider)