NEW YORK — Although Jones Apparel Group on Wednesday posted a substantial first-quarter profit, shares fell in early morning trading as results missed Wall Street’s expectations and the company cut full year estimates.
Shares shed 2.7 percent in the morning trading session to $31.48.
The company said net income for the three months ended April 7 rose 85.3 percent to $47.8 million, or 44 cents a diluted share, from $25.8 million, or 22 cents, in the same year-ago quarter. Analysts were expecting 60 cents a share. Revenues rose 2.7 percent to $1.25 billion from $1.22 billion.
Based on first-quarter results, the company took a cautious view for the remainder of the year and lowered 2007 guidance to between $1.95 and $2.05 a share. The original estimate was a 10 percent gain on 2006 earnings of $2.19 a share, or earnings per share of $2.41.
“Our continued strategic operational reviews and efforts to improve profitability, and the continued trend of our moderate customers towards differentiated product offerings, has led us to make the strategic decision to exit or sell some of our moderate product lines by year end 2007,” said Peter Boneparth, president and chief executive officer, in a statement.
For complete coverage, see tomorrow’s issue of WWD.
“I see things on the hanger and I’m, like, ‘I never knew that color worked on me.’ It’s things you necessarily wouldn’t choose to wear, but once you put them on, you see why Janie is who Janie is." — Lily Collins on working with former "Mad Men" costume designer, Janie Bryant on creating looks for her role as Celia Brady's in Amazon series, "The Last Tycoon." 📸@jilliansollazzo #wwdeye
EXCLUSIVE: Sarah Rutson has been tapped to Build New American Fashion Group. The parent of Joie, Equipment and Current/Elliott hired the merchant to rev up its brands and expand its portfolio into designer, beauty and lifestyle categories. Read more on WWD.com, link in bio. #wwdfashion
Michael Kors' $1.3B Jimmy Choo deal has the company squaring off with Coach Inc. as both seek to build American powerhouses. Coach bought Stuart Weitzman in 2015 and Kate Spade just two weeks ago, but Michael Kors' acquisition may be putting pressure on its rival in the new push for scale. #wwdnews (📷: George Chinsee)
Meet actress Lucy Boynton, who plays opposite Naomi Watts in the recently released Netflix series "Gypsy." Boynton stopped by WWD to talk about her upcoming projects and her nomadic lifestyle. Get all the details on WWD.com. #wwdeye (📷: @dandoperalski)