KELLWOOD: NET WON’T MEET WALL STREET’S ESTIMATES
ST. LOUIS — Kellwood Co. said that profits for the year ending April 30 will be in the range of $1.25 to $1.35 a share, below Wall Street estimates of $1.78. The news pushed Kellwood stock down 4 3/8 to 14 1/2 on the New York Stock Exchange Tuesday.
The diversified apparel giant blamed the weaker-than-expected forecast on “the deteriorating situation at retail.”
William J. McKenna, chairman and chief executive officer, said in a statement, “While we basically maintained our market share, the intense margin pressure and deferred deliveries have had a negative effect on our cost structure.”
In the year ended April 30, Kellwood posted operating income of $25.1 million, or $1.17, on sales of $1.4 billion.