Quarterly profit fell 33 percent to $100.4 million, or 91 cents per share, from $148.9 million, or $1.33 per share last year. Analysts polled by Thomson Reuters, on average, expected a profit of 94 cents per share. Chief Executive Eric Wiseman told analysts on a conference call that, although the results met company expectations — particularly for its largest brands, Wrangler, The North Face and Vans — there were some weak spots…With revenue and earnings below those of last year’s first quarter, our results do confirm that we continue to face extremely challenging conditions that are affecting all of our businesses to one degree or another,” he said. The company did not give specifics about orders it has received for the fall but said ordering played a role in the company lowering its full-year earnings guidance. “Our fall bookings … are accurately reflected in the guidance we gave for the year,” Wiseman said…Revenue fell 7 percent to $1.73 billion from $1.85 billion last year. Analysts predicted revenue of $1.74 billion. The stronger dollar caused about 5 percentage points of the revenue decline, the company said. But weak spots included international jeans wear, which fell 8 percent — compared with a 4 percent rise in domestic jeans wear — due mainly to weak economies in Eastern Europe and Scandinavia.
“Revenue for the company’s premium denim brand, 7 For All Mankind, fell due to weaker-than-expected conditions at higher-end department stores and specialty stores. Finally, rising unemployment levels in the manufacturing and petrochemical sectors hurt sales in uniforms, normally a high-margin business for the company..
Date:5/1/2009
Source:Associated Press