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Jones Swings to Loss

Costs, promotions hit bottom line.

Jones Group Inc. swung to a second-quarter loss Wednesday, as higher costs and increased promotions weighed on financial results.

 

For the period ended July 6, Jones posted a loss of $3.4 million, or five cents a diluted share compared with year-ago net income of $8.1 million, or 10 cents a share. Stripping out costs, the apparel and footwear firm said it earned 2 cents a share.

 

Revenue slid 1.1 percent to $845.6 million from $854.8 million, a year earlier. Wall Street anticipated a 12-cent loss on sales of $832.1 million.

 

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Jones has put itself up for sale, either in its entirety or the two major parts of its portfolio, footwear and apparel. 

 

“Second-quarter revenues were in line with our expectations, with the jeanswear segment registering the largest improvement in operating results, as those product lines continue to perform well. The International Wholesale segment also showed improved operating results, led by the Nine West and Stuart Weitzman international businesses,” chief executive officer Wesley Card said. “For other areas of the business, the weather impacted seasonal product sales, which generated higher promotional levels.”

 

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Card said the company will turn in an improved performance in the fall, thanks to its “new and refocused sportswear product offerings.”