Jones Apparel Group Posts Wider 4Q Loss

Clothing maker Jones Apparel Group Inc. posted a wider fourth-quarter loss Wednesday because of hefty charges, higher promotions and a weak holiday season.

The company also issued a downbeat revenue forecast for the current quarter. Its shares soared almost 13 percent, however, as investors appeared enthusiastic about some encouraging signs, like strong sales of its exclusive line for Wal-Mart Stores Inc. called l.e.i.

Jones, like many of its rivals including Liz Claiborne Inc. and VF Corp., has suffered as major stores have cut back on inventory amid the severe pullback in consumer spending.

The company — whose brands include Jones New York, Nine West and Anne Klein — reported a loss of $822.9 million, or $10.08 per share, compared with a loss of $89.8 million, or $1.06 per share, a year earlier.

Under adjusted results, the company posted a 4 cent per share loss. That excludes an $813 million impairment charge for the footwear and accessories unit as well as the impact of severance and other restructuring expenses, repositioning the l.e.i. brand and other charges.

Revenue rose 1 percent to $846.9 million from $838.5 million.

Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, predicted a 5 cent per share loss and revenue of $826.8 million.

"We continue to weather the economic storm. ... We are controlling what we can control," said Chief Executive Wesley R. Card in an address to investors during an earnings call.

Last month, the company lowered its full-year earnings guidance, said it would take a hefty goodwill impairment charge and announced a cost-cutting program to save $33 million a year, including job cuts. Jones was more specific about job cuts Wednesday, noting that it was eliminating 185 positions, or 4 percent of its wholesale and corporate full-time work force.

Liz Claiborne is likewise cutting jobs, saying earlier this month that it will eliminate about 725 positions, or 8 percent of its U.S. work force.