Jones Group Q4 Adj. Profit Tops View, But Revenues Miss - Quick Facts

(RTTNews) - Jones Group Inc. (JNY) reported that its fourth-quarter loss available to common stockholders narrowed to $44.6 million from last year's $78.1 million, with loss per share narrowing to $0.61 from $1.06 in the same quarter last year.

The results for both periods include non-cash impairment charges relating to certain goodwill, trademarks and other intangible assets. The non-cash impairment charges of $50 million after tax and $66 million after tax for 2013 and 2012, respectively, were primarily related to goodwill in our Domestic Wholesale Sportswear and International Retail businesses and trademarks utilized in its Domestic Wholesale Footwear and Accessories and Wholesale Jeanswear businesses.

Adjusted earnings per share for the fourth quarter of 2013 increased to $0.27 from $0.14 last year. The 2013 fourth quarter results include certain tax benefits of $0.08 per share.

The company reported an increase in adjusted earnings per share to $0.19 versus $0.14 last year, excluding tax benefits of $0.08. Analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter dropped to $888.9 million from $971.9 million in the prior year quarter. Two analysts had consensus revenue estimate of $915.85 million for the quarter.

On December 19, 2013, the company announced that it had entered into an Agreement and Plan of Merger providing for the acquisition of the Company by affiliates of Sycamore Partners. Under the terms of the merger agreement, the Company's shareholders will receive $15.00 in cash for each share of the Company's common stock they hold. In connection with the merger, the Company has agreed to suspend the payment of its quarterly dividend. The Board of Directors of the Company unanimously approved the merger agreement. The transaction is expected to close in the second quarter of 2014.