NEW YORK ( TheStreet) - Jones Group (JNY) is warnings that higher cotton costs will drive prices for clothes and shoes higher, and that the higher commodity cost has already eaten into its fourth-quarter profit.
In the fourth quarter, the company who owns Nine West, Jones New York and Anne Klein, reported a loss of $40 million, or 47 cents a share, compared with a loss of $130.3 million, or $1.53, in the year-ago period. On an adjusted basis, Jones earned 4 cents, a penny higher than estimates.
Revenue rose 12.5% to $873.7 million, on the low-end of Jones' forecast.Gross margin fell 3.5 percentage points to 30.8%. CEO Wesley Card said that higher cost of cotton would continue this year and it is unclear how consumers will react. Card said Jones will protect its profits through "selective price increases." --Written by Jeanine Poggi in New York.
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