Oct 14, 2008
Jones slashes '08 earnings forecast, cites economy
Oct 14, 2008
SAN FRANCISCO, Oct 14 (Reuters) - Jones Apparel Group Inc slashed its earnings expectations for the full year on Tuesday, October 14th citing the economy's impact on consumer spending, and its shares fell 3 percent.
Jones, whose brands include Anne Klein, Nine West and Jones New York, said consumers were spending less and it expected more mark-downs in the fourth quarter.
The company warned that full-year adjusted earnings from continuing operations were now expected to range between 93 cents to 98 cents per share, compared with a prior outlook of $1.20 to $1.35.
Third-quarter adjusted earnings per share from continuing operations are expected to range between 32 cents to 34 cents, the company said. The company plans to report third-quarter results on Oct 29.
Wall Street, on average, had been expecting adjusted earnings of $1.24 per share for the full year and third-quarter adjusted earnings of 51 cents per share, according to Reuters Estimates.
"Our retail operations trended negatively during the third quarter consistent with the overall economic climate, reflecting a drop in consumer confidence and spending levels," said Chief Executive Wesley Card in a statement.
"Given the difficult business climate, we anticipate a more promotional fourth quarter and are therefore revising our full year guidance," Card added.
Shares of Jones fell to $13.13 in after-hours trade following the company's warning, after closing 6 percent lower to $13.52 in regular trading on the New York Stock Exchange. (Reporting by Alexandria Sage; Editing by Tim Dobbyn)
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