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May 03, 2007
Jones Profits From Better Market, Barneys
Jones Apparel Group reported an 85 percent increase in income to $48 million for its first quarter of the year as it rebounded from consolidation moves it made a year ago. Revenue ticked up 2.7 percent to $1.25 billion, driven by better apparel, jewelry and accessories.
Jones’s high-end Barneys New York properties also did well, reporting a 10 percent increase in same-store sales for the quarter ended April 1.
Jones cited weakness in its moderate sportswear business and plans to eliminate some of its brands in the category. Rumor has it that Norton McNaughton and Erika lines could be up for sale.
Blacks’s Take: Both Jones and Liz Claiborne cited a downturn in their moderate women’s wear business this week. We expect retailers to continue to pare down their holdings in this category until the brands and market stabilize.
Posted by Blacks on May 3, 2007 09:32 AM
