Jones Apparel Group Earnings: Here’s Why Investors are Happy Now

Jones Apparel Group, Inc. (NYSE:JNY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2%.

Jones Apparel Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.14 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 7.24% to $958.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jones Apparel Group, Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.09. It beat the average revenue estimate of $955.28 million.

Quoting Management: Wesley R. Card, The Jones Group Chief Executive Officer, stated: “We are pleased with the results we achieved in the fourth quarter and particularly, the improvement in our operating performance. This resulted in adjusted earnings per share of $0.14 versus $0.03 last year, exclusive of tax benefits of $0.07. Our domestic wholesale footwear and accessories and jeanswear businesses were our best performers, while our structured sportswear business and retail channels remained more challenging and promotional, although we are encouraged with our overall turnaround efforts in these segments. Our international segments continued to perform quite well, especially in the face of a difficult economic climate, particularly in Western Europe.”

Key Stats (on next page)…

Revenue decreased 7.45% from $1.04 billion in the previous quarter. EPS decreased 75.44% from $0.57 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.36 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.19 to a profit of $1.18 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)