Jones GroupShares of Jones Group ( JNY) slumped in late trades after the New York City-based maker of fashion apparel and accessories gave a disappointing profit outlook for the fourth quarter, saying the retail environment was "more promotional than anticipated, particularly in footwear," which hurt its gross margins. The stock was last quoted at $13.35, down 3%, on volume of roughly 23,000. Shares finished the regular session at $13.78, bouncing slightly after plumbing a new 52-week low of $13.54 on Thursday. In the past 52 weeks, the stock is down more than 17% with much of that move coming since the start of 2011 as it's lost more than 12% year-to-date. The company said it now sees adjusted earnings of 2 cents a share for its fiscal fourth quarter ended Dec. 31, well below the average estimate of analysts polled by Thomson Reuters for a profit of 11 cents a share in the three-month period. Jones Group also cited rising costs and a soft market for excess inventory as culprits in its below-consensus performance, and took a cautious view of 2011. "The performance of our brands has been consistently strong, even in a challenging environment, and for 2011, we believe that our brands are positioned to achieve net revenue growth in mid-single digits," said Wesley Card, the company's CEO, in a statement. "That said, the strength in consumer spending and acceptance of price increases in 2011 remain uncertain."
Danvers BancorpShares of Danvers Bancorp ( DNBK) jumped in late trades after the Danvers, Mass.-based bank holding company agreed to be acquired by People's United Financial ( PBCT) for nearly $500 million in cash and stock. The stock surged 29.3% to $22 on volume of around 24,000. The deal calls for Danvers Bancorp shareholders to receive either $23 per share in cash or else 1.624 People's United shares for each share with the expected breakdown of the consideration to be 55% stock and 45% cash.
People's United said it expects the transaction to immediately add to earnings with the closing of the deal anticipated late in the second quarter. People's United shares closed Thursday's regular session at $13.69, down 2%. Shares of Danvers Bancorp were up 31% in the past year before the deal was announced. The $23 per share consideration represents a premium of 27.3% above its 52-week high of $18.07 on Dec. 22.