The Company reported earnings per share of $3.97 for the third quarter of 2007, as compared to earnings per share of $0.56 in the same period last year. Excluding the effects of the sale of our Barneys retail operations and its related results, the impact of severance and other expenses related to restructuring activities and certain other charges, adjusted earnings per share from continuing operations for the third quarter of 2007 were $0.51, as compared with $0.59 for the same period last year, as detailed in the accompanying schedule.
Wesley R. Card, President and Chief Executive Officer, stated, "Despite the continued challenges in the retail environment throughout the third quarter, which were primarily due to the unseasonably warm weather and economic conditions affecting our target consumer, our businesses performed in line with our expectations for the period.
Consistent with the overall retail climate, our company-owned retail stores continued to trend negatively during the third quarter as comparable store sales were down 8.7% for the period, even as we began to implement our turnaround efforts."
John T. McClain, Chief Financial Officer, commented, "Our financial position remains strong. We ended the quarter with $783 million of total debt and, net of $109 million cash on hand, our debt to total capitalization ratio was 24.3%, in line with our expectations.
| Cash used by continuing operating activities during the period was $111 million, compared with cash provided by operating activities of $153 million in the prior year. The decrease in cash from continuing operations was the result of lower earnings, including the costs related to our strategic initiatives and the exit of our Moderate Sportswear lines, the timing of shipments and payments for inventory, as well as the absence of the positive impact from the exit of Polo Jeans Company, which benefited last year." Mr. Card continued, "Our guidance for 2007 full year adjusted earnings per share for continuing operations remains in the range of $1.20 to $1.25, compared to 2006 adjusted earnings per share for continuing operations of $1.94. Our performance to date, the execution of the sale of our Barneys retail operations, the exit of our Moderate Sportswear labels, and the continued weakening in the retail environment are offset by a lower tax rate and the benefit of share repurchases." Continued... Click Here: | ||||
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