NEW YORK -- A denim glut will slice fourth-quarter earnings at Burlington Industries to below the year-ago figure and well below analysts' estimates.
The company said Thursday that earnings for the quarter ending Sept. 28 will be "slightly below" the 21 cents a share earned in the year-ago quarter and that earnings for the fiscal year will be 20 to 30 cents per share lower than the current range of analysts' estimates, which average $1.39 a share. For the quarter, analysts' estimates have been around 28 cents a share.
The firm added that the excess denim inventory will continue to depress earnings over the next six months. The textile firm's stock Thursday plunged 2 7/8 to 10 3/8, a 52-week low, on the New York Stock Exchange.
"While overall demand for denim products remains sound, curtailment while our customers work down their inventories will have a negative effect on our earnings in the current quarter, as well as the first half of the 1997 fiscal year," George Henderson, Burlington chief executive officer, said in a statement.

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