Jones Group beats Street as net income soars in Q3

New York – The Jones Group Inc’s net income rose a better-than-expected 67% in the third quarter, increasing to $28.3 million from $17.8 million.

However, revenues in the quarter ended Oct. 5 fell about 1%, to $1.02 billion from $1.03 billion.

The retailer credited several declines in internal expenses compared to the same period last year as helping drive its strong growth in net income. The cost of goods sold declined 1% to $662.4 million from $670.8 million. Selling, general and administrative expenses dropped 2% to $296.5 million from $301.9 million. Costs and charges were $12 million, two-thirds less than $35 million a year earlier.

"Third quarter revenues were in line with our expectations, with the jeanswear segment again registering the largest improvement in operating results, as those product lines continue to perform well,” said Wesley R. Card, CEO of Jones Group. “The domestic retail, international wholesale and international retail segments also showed improved operating results, led by the Nine West Outlet and Stuart Weitzman domestic retail businesses and the Jones New York businesses in Canada and Spain. Our new and refocused sportswear product offerings for fall are performing significantly better, and we anticipate that trend will continue."

 

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