Excluding non-cash charges related impairments of goodwill and trademarks, restructuring costs and other charges, JNY reported a net loss of $0.04 per share for Q4 FY08, in line with its most recent guidance range of a loss of $0.03 to $0.06. Analysts had been expecting a loss of $0.05.
JNY adjusted its FY 2008 earnings per share guidance to a range of $0.93-$0.98, compared to the company's previous guidance range of $1.20-$1.35. The company cited weak economic conditions as its reason for lowering the guidance range.
Jones New York shares trended down when the company announced that it would adjust its FY2007 continuing operations earnings guidance down to $1.20-1.25 per share (compared to $1.94 per share in FY2006). Although Jones' net income for the year was up at $400M (roughly four times that of FY2006), largely on the sale of Barneys New York, slow product sales kept earnings low for the year.
Jones shares were down sharply for the week on its annoucment that it suffered a $47.1M net loss for the second quarter of 2007, compared to earnings for $36.6M at the same time last year. The loss was chiefly the result of decrease earnings across the company, as well as the loss of its Polo Jeans Co. licensing agreement.
