Big Quarter for Hip Clothes

Skechers, Jones Apparel both guide higher as a choosy consumer is still buying.

Author:: Rebecca Byrne
Publish date:: Apr 3, 2002 9:31 AM EST

Skechers

and

Jones Apparel

(JNY)

said Wednesday that they expect to exceed previous first-quarter earnings guidance.

Footwear manufacturer Skechers said it would beat first-quarter earnings estimates of 34 cents a share by at least 25%, putting earnings at 42 cents a share, or higher. Thomson Financial/First Call had been looking for a 34-cent profit.

"Skechers' sales performance, including at-once orders, exceeded internal expectations across the board, especially with our largest customers," said President Michael Greenberg in a press release.

Greenberg attributed this to the firm's "attractively priced and stylish" footwear and good advertising. He added that the firm has improved its inventory and cost management and has increased efficiencies in the domestic retail and European wholesale initiatives. The company also expects to report first quarter sales in excess of $235 million.

Meanwhile, Bristol, Pa.-based Jones Apparel believes it will top former estimates of between 62 cents and 64 cents a share, excluding an after-tax charge of 14 cents for contractual obligations and 10 cents resulting from a change in accounting for the noncash writedown of trademarks.

Analysts polled by Thomson Financial/First Call had expected earnings of 63 cents a share, excluding goodwill.