May 1, 2013
Jones Group lowers full-year revenue forecast
May 1, 2013
Jones Group Inc on Wednesday lowered its 2013 revenue forecast and reported weak first-quarter sales in Europe because of a tough economy there, and in North America because of a cold winter that prompted shoppers to delay buying spring merchandising.
Jones, whose portfolio of brands include footwear brands Nine West, Stuart Weitzman and Gloria Vanderbilt jeans, now expects 2013 revenues of between $3.8 billion and $3.95 billion, compared with its earlier forecast of $3.9 billion and $4.1 billion.
Wall Street analysts were expecting sales of $3.9 billion, according to Thomson Reuters I/B/E/S/.
The company reported first-quarter adjusted earnings of 15 cents per share on revenues of $1 billion, in line with the preliminary results it gave last week. The profit had been well below Wall Street forecasts.
Gross profit margin fell 2.1 percentage points to 34.5 percent of sales because of the weather as well as what the company has previously said was a promotional environment that led rivals to cut prices.
Last week, New York-based Jones, which in recent years has been focusing more resources on its luxury brands, announced a plan to close 170 stores and cut jobs at its weaker brands.
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