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Jones Apparel Group, Inc. Revises Fiscal 2008 Guidance; Reports Preliminary 2008 Third Quarter ResultsNEW YORK, Oct. 14 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc. (NYSE: JNY) today revised its earnings guidance for fiscal year 2008, reflecting the continued weakening of the overall economic climate and the impact on consumer spending and on its retail customers of the recent unprecedented events in the financial markets. The Company now expects to report 2008 full year adjusted earnings per
share from continuing operations in a range of The Company continues to maintain a strong financial position and
estimates that for the third quarter ended October 4, 2008 it will report
available cash of approximately Mr. Card continued, "Our retail operations trended negatively during the third quarter consistent with the overall economic climate, reflecting a drop in consumer confidence and spending levels. Comparable store sales in our own stores declined significantly in September and were down approximately 2% for the full quarter. Given the difficult business climate, we anticipate a more promotional fourth quarter and are therefore revising our full year guidance. We believe that the progress we have made in managing working capital and strengthening our brands will enable us to navigate through this difficult time. We continue to work closely with our customers to pursue our multiple strategies to drive consumer demand and growth, while controlling inventory and operating expenses." The Company noted that these 2008 third quarter results are preliminary and therefore subject to the Company's completion of its customary quarterly closing and review procedures. The Company will provide an update on these matters when it announces 2008 third quarter results as scheduled, on Wednesday, October 29, 2008. A conference call with management will be held on October 29 at 8:30 am Eastern Time, which is accessible by dialing 412-858-4600 or through a web cast at http://www.jonesapparel.com. The call will be recorded and made available through November 6, 2008 and may be accessed by dialing 877-344-7529. Enter account number 424319.
Reconciliation of Projected GAAP EPS to Projected Adjusted EPS
for the three months ended October 4, 2008 and the twelve months ended
December 31, 2008
(UNAUDITED)
As required by the Securities and Exchange Commission Regulation G, the
following table contains information regarding the non-GAAP adjustments
used by the Company in the presentation of its financial results:
All amounts in millions, except per
share data THIRD QUARTER FULL YEAR
2008 2007 2008 2007
Income from continuing
operations $24.5-26.0 $138.4 $58.7-61.2 $45.9
Provision (benefit) for income
taxes 13.5-14.5 (90.9) 32.3-33.8 (104.4)
Reversal of losses on assets
held for sale (a) - (30.4) - -
Gain on sale of Mexican
operations - - (0.2) -
Items affecting segment income:
Gain on sale of interest in
Australian joint venture (b) - (8.2)
Goodwill impairments (c) - 78.0
Trademark impairments (d) - 11.5 - 88.0
Severance and other costs
related to the exit from
certain moderate product
lines and other restructuring
costs 3.0-4.0 48.6 30.2-33.2 93.7
Adjusted income from continuing
operations before taxes 41.0-44.5 77.2 121.0-128.0 193.0
Adjusted provision for income taxes 14.5-16.0 25.5 43.0-45.5 64.9
Adjusted income from continuing
operations $26.5-28.5 $51.7 $78.0-82.5 $128.1
Earnings per share from continuing
operations - diluted $0.30-0.31 $1.37 $0.70-0.73 $0.45
Provision (benefit) for income
taxes 0.16-0.17 (0.90) 0.38-0.40 (1.03)
Reversal of losses on assets held
for sale (a) - (0.30) - -
Gain on sale of Mexican operations - -
Items affecting segment income:
Gain on sale of interest in
Australian joint venture (b) - (0.08)
Goodwill impairments (c) - 0.77
Trademark impairments (d) - 0.11 - 0.87
Severance and other costs
related to the exit from
certain moderate product
lines and other restructuring
costs 0.04-0.05 0.48 0.36-0.39 0.92
Adjusted income from continuing
operations before taxes 0.50-0.53 0.76 1.44-1.52 1.90
Adjusted provision for income
taxes 0.18-0.19 0.25 0.51-0.54 0.64
Adjusted earnings per share from
continuing operations - diluted $0.32-0.34 $0.51 $0.93-0.98 $1.26
(a) Represents the reversal of the loss recorded in the second quarter
2007 relating to the adjustment of certain assets to their net
realizable value.
(b) Represents the gain recorded in relation to the sale of our
interest in the Nine West Australia joint venture in December 2007.
(c) Represents the impairments recorded as a result of the annual
valuation of the fair value of our indefinite-lived intangible
assets and goodwill in accordance with GAAP.
(d) Represents the impairments recorded in accordance with SFAS No.
142, resulting from the exit from certain of our moderate
sportswear brands.
Presentation of Financial Information Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of this press release. The Company has not provided reconciliation with respect to 2008 targeted earnings per share projection given that it is an estimate derived from projected results. About Jones Apparel Group, Inc. Jones Apparel Group, Inc. (www.jonesapparel.com) is a leading designer,
marketer and wholesaler of branded apparel, footwear and accessories. The
Company also markets directly to consumers through its chain of specialty
retail and value-based stores. The Company's nationally recognized brands
include Jones New York, Nine West, Forward Looking Statements Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding the Company's expected financial position, business and financing plans are forward-looking statements. The words "believes," "expects," "plans," "intends," "anticipates" and similar expressions identify forward-looking statements. Forward-looking statements also include representations of the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including: -- those associated with the effect of national and regional economic
conditions;
-- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence;
-- the performance of the Company's products within the prevailing retail
environment;
-- customer acceptance of both new designs and newly-introduced product
lines;
-- the Company's reliance on a few department store groups for large
portions of the Company's business;
-- consolidation of the Company's retail customers;
-- financial difficulties encountered by customers;
-- the effects of vigorous competition in the markets in which the Company
operates;
-- the Company's ability to attract and retain qualified executives and
other key personnel;
-- the Company's reliance on independent foreign manufacturers;
-- changes in the costs of raw materials, labor, advertising and
transportation;
-- the general inability to obtain higher wholesale prices for the
Company's products that the Company has experienced for many years;
-- the uncertainties of sourcing associated with an environment in which
general quota has expired on apparel products (while China has agreed
to safeguard quota on certain classes of apparel products through 2008,
political pressure will likely continue for restraint on importation of
apparel);
-- the Company's ability to successfully implement new operational and
financial computer systems; and
-- the Company's ability to secure and protect trademarks and other
intellectual property rights.
A further description of these risks and uncertainties and other important factors that could cause actual results to differ materially from the Company's expectations can be found in the Company's Annual Report on Form 10- K for the year ended December 31, 2007, including, but not limited to, the Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors therein, and in the Company's other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise. SOURCE Jones Apparel Group, Inc. Tags: ,FAS,TEX,REA,ERP,CCA,NY-Jones-Guidance-08 _ _     Is your favorite bookmark site missing? Ask for it. |
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