JONES ON TARGET TO EARN 50 TO 53 CENTS IN FOURTH
NEW YORK — Jones Apparel Group Inc. said it its fourth-quarter earnings would land in the range of 50 to 53 cents a share, in line with previous guidance and Wall Street estimates.
Revenues for the period are projected to be between $950 million to $970 million, the company said.
Jones earned $27.1 million, or 22 cents a share, in the year-ago period.
The company’s stock fell $2.44, to $36.25, a 6.3 percent drop on the New York Stock Exchange.
Additionally, the New York-based apparel firm announced it plans to raise $300 million through a convertible securities issue. The 20-year zero coupon convertible senior debt securities will be convertible into common stock at a premium to be determined.
The company said it would use the proceeds to pay down or refinance existing debt and for other corporate purposes.
The company added that initial purchasers of the securities will be granted an option to purchase additional zero coupon securities in the event of overallotments. This could provide an additional $45 million in proceeds.
Jones, which designs and markets brands including Jones New York and Lauren by Ralph Lauren, said it plans to release its financial results Feb. 7.