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.
>To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV