Q2 loss for Jones Group
NEW YORK — Lower sales, weaker margins and higher costs at the Jones Group translated into a $3.4 million loss for the second quarter ended July 6, compared to a profit of $8.1 million in the year-ago period.
Revenue decreased 1.1% to $845.6 million from $855 million for the second quarter of 2012. Analysts estimated revenues of $832.06 million for the quarter. One bright spot for Jones Group was an almost 21% year-over-year increase in wholesale jeanswear sales.
“Second quarter revenues were in line with our expectations, with the jeanswear segment registering the largest improvement in operating results, as those product lines continue to perform well,” said Wesley R. Card, CEO, Jones Group, whose brands include Nine West, Easy Spirit, Jones New York, Stuart Weitzman and Anne Klein. “The international wholesale segment also showed improved operating results, led by the Nine West and Stuart Weitzman international businesses. For other areas of the business, the weather impacted seasonal product sales, which generated higher promotional levels.”
Looking ahead, Card said the company believes it is better positioned for the second half of the year, as it continues to focus on enhancing profitability.
“We anticipate we will achieve improved performance in fall 2013 with our new and refocused sportswear product offerings,” he said. “We are approaching the Jones brand with strong conviction and have received very positive reactions from our customers to our refocused sportswear that will begin shipping in August. We are confident that this will translate into improved retail performance and ultimately increased profitability for the brand."