Jones Group’s revenues drops in Q2 2012Wednesday, 25 July 2012
The Jones Group reported results for the
second quarter ended June 30, 2012. Revenues for the second quarter of 2012 were $855 million, as compared with $887 million for the second quarter of 2011.
The company reported adjusted earnings per share of $0.22 for the second quarter of 2012, as compared with adjusted earnings per share of $0.33 for the same period last year. The adjusted results exclude charges related to the impact of severance, asset impairments in retail locations to be closed and other costs related to restructuring activities, certain acquisition-related costs and other costs not considered relevant for period-over-period comparisons.
Wesley R Card, The Jones Group Chief Executive Officer, stated: "We are pleased with the results we achieved in the second quarter, particularly our improved gross margin, which exceeded expectations. Our gross margin improvement of 180 basis points was the result of the inclusion of Kurt Geiger for a full quarter, improvement in many segments as a result of conservative inventory planning and control."
The company ended the quarter with $277 million in cash and generated cash from operating activities during the six months of $124 million, compared with $66 million in the prior year period. The current year results reflect a lower level of required investment in working capital, somewhat offset by lower earnings. At June 30, 2012, the company had no amounts drawn under its $650 million of committed revolving credit facilities.
The company's Board of Directors has declared a regular quarterly cash dividend of $0.05 per share to all common stockholders of record as of August 10, 2012, for payment on August 24, 2012.
Headquartered in New York, The Jones Group is a global designer, marketer and wholesaler of over 35 brands with product expertise in apparel, footwear, jeanswear, jewelry and handbags.