Updated from Sept. 28
dropped 18% early Friday after the haberdasher slashed full-year earnings guidance, citing department store consolidation.
The Chicago-based suitmaker made $490,000, or a penny a share, for the third quarter ended Aug. 31, down from the year-ago $6.6 million, or 18 cents a share. Sales fell to $139 million from $153 million a year earlier.
Hartmarx said it expects to make 8 to 10 cents a share for the fourth quarter and 28 to 30 cents for the year. Sales will be around $156 million for the quarter and $590 million for the year.
The company had earlier forecast a profit of 50 to 55 cents a share on sales of $610 million to $615 million for the year.
"The actions we are taking to curtail or discontinue certain lines are exacerbating the negative impact this year, but we believe will position the company for a significant earnings recovery in 2007," Hartmarx said. "We are committed to reducing sales to the mainstream department store channel from 27% of total revenues in 2005 to roughly half of that in 2007. At the same time, we continue to look for opportunities to redeploy those assets."
Shares fell $1.52 to $6.18.