Jones Group Inc. (JNY) announced Wednesday that it will close about 170 underperforming domestic retail stores by mid-2014, and eliminate eight percent of its workforce as part of a plan to improve profitability.
These actions are expected to generate about $40 million in annualized pre-tax savings and reduction of operating losses by mid-2014, with the benefit to fiscal 2013 expected to total about $11 million.
The company expects to incur costs of about $40 million to $60 million over the next 15 months to achieve the plan. The costs to be incurred relate primarily to severance, store closures and non-cash asset write-downs (approximately $6 million).
The company said Domestic retail staff will be reduce by about 18% and corporate, support and supply chain staff by about 2%.
The company also announced that it expects to report 2013 first quarter adjusted earnings per share of approximately $0.15, compared with 2012 first quarter adjusted earnings per share of $0.31. Included in the results will be charges totaling approximately $0.05 per share related to changes in foreign currency exchange, primarily pertaining to the British pound.
The company expects to report 2013 first quarter earnings per share of approximately $0.01, compared with a 2012 first quarter loss per share of $0.01.
The Company expects to report 2013 first quarter adjusted and GAAP revenues of about $1 billion, compared with 2012 first quarter adjusted and GAAP revenues of $936 million.
Analysts polled by Thomson Reuters expect the company to report earnings of $0.26 per share on revenues of $1.00 billion for the first-quarter. Analysts' estimates typically exclude special items.
Inclusive of the strategic actions to improve profitability, the company estimates that 2013 second quarter and full year adjusted and GAAP revenues will be in the ranges of $820 million to $850 million and $3.80 to $3.95 billion and gross margin will be in the ranges of 35.2% to 36.0% and 35.9% to 36.1%.
Analysts expect the company to report revenues of $908.40 million for the second-quarter, and $3.98 billion for fiscal 2013.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.