The Jones Group Inc.reported results for the third quarter ended September 29,2012.Revenues for the third quarter of 2012 were$1,035 million,as compared with$1,043 million for the third quarter of 2011.
The Company reported adjusted earnings per share of$0.57 for the third quarter of 2012,as compared with adjusted earnings per share of$0.48 for the same period last year.The results for both periods include gains and charges relating to balances denominated in foreign currencies.
The current year quarter includes net gains of approximately$7 million($5 million after tax),or$0.06 per share,whereas in the prior year quarter,net charges of$5 million($3 million after tax),or$0.04 per share,were realized.Results for both periods also include the favorable impacts of tax law changes in the United Kingdom,which were approximately$4 million after tax($0.05 per share)in the third quarter of 2012 and approximately$4 million after tax($0.05 per share)in the third quarter of 2011.
The adjusted results exclude charges related to the impact of severance,asset impairments in retail locations to be closed and other costs related to restructuring activities,certain acquisition-related costs and other costs not considered relevant for period-over-period comparisons.
Wesley R.Card,The Jones Group Chief Executive Officer,stated:"We are pleased with the results we achieved in the third quarter and we continue to see the benefit of conservative inventory planning and control.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.Our international segments continued to perform quite well,especially in the face of a difficult economic climate,particularly in Western Europe."
The Company ended the quarter with$234 million in cash and generated cash from operating activities during the nine months of$13 million,compared with$6 million in the prior year period.At September 29,2012,the Company had no amounts drawn under its$650 million of committed revolving credit facilities.
John T.McClain,The Jones Group Chief Financial Officer,commented:"Our financial position remains strong.We ended the quarter with$234 million in cash and our revolver undrawn.Our approach to inventory commitments remains conservative,and we continue to emphasize tight expense control.We believe these actions will enable us to continue to maintain a strong balance sheet."
Mr.Card concluded:"We believe we are well positioned for the fourth quarter and as we enter 2013 to continue to execute on our strategic plan.We have received positive reactions from wholesale customers to our enhanced products across our brands that ship in fourth quarter 2012 and Spring 2013.We are confident that continued product improvement will ultimately translate into increased sales and improved retail performance."
The Company's Board of Directors has declared a regular quarterly cash dividend of$0.05 per share to all common stockholders of record as of November 9,2012,for payment on November 23,2012.
