Kellwood Co. reported a drop in third-quarter earnings on an ongoing basis, while management expressed confidence in meeting its financial targets as the company works to right itself.
Separately, the firm announced additions and changes to its executive lineup: Hope Brick and Steve Powers were named chief merchandising officer and chief customer officer, respectively, of Kellwood¹s Lifestyle alliance. Sandra Campos was named president of O Oscar, an Oscar de la Renta company, and Wendy Chivian was named president of Calvin Klein women¹s sportswear.
For the quarter ended Nov. 3, the apparel vendor said net earnings on an ongoing basis were $4 million, or 15 cents per diluted share, which compares with $10.6 million, or 41 cents, in the prior year. Earnings were ahead of estimates by 1 cent, according to analysts polled by Reuters.
Sales on an ongoing basis rose to $404.1 million from $397 million in the prior year. On the income statement, Kellwood swung to a loss of $1.1 million, or 4 cents, for the quarter, down from earnings of $8.1 million, or 31 cents, last year. The net loss from continuing operations was $5.9 million, or 23 cents, versus a loss of $1.5 million, or 6 cents, last year.
The organization reiterated its guidance for fiscal year 2007. It expects earnings from ongoing operations to be between 66 and 76 cents a diluted share. That compares with actual earnings of 90 cents a diluted share in 2006.
For more, see Monday’s issue of WWD.