Kellwood’s third quarter total net sales from ongoing operations, which is comprised of continuing operations results excluding impairment, restructuring and other non-recurring charges, were $404.1 million, up from net sales of $397 million in the third quarter of fiscal 2006. Gross profit as a percent of net sales rose 340 basis points to 27.4% with both operating segments contributing to this increase.


Net earnings on an ongoing basis were $4.0 million, or 15 cents per diluted share, compared to $10.6 million, or 41 cents per diluted share in the third quarter last year. This result represents the high end of KWD guidance, yet well below a year ago, driven by the lower absorption of corporate overhead resulting from the discontinued Smart Shirts operations and lower sales and profitability of the company’s women's mainstream business.


Kellwood’s Other Soft Goods segment, which includes all of the company’s outdoor brands under the American Recreation, umbrella, including Royal Robbins, Slumberjack, Sierra Designs, and Kelty, saw a 56% increase in net sales to $127.8 million. Growth was due to the acquisitions of Hanna Andersson and Royal Robbins. Operating earnings grew 77% to $16.6 million in the third quarter of 2007. Operating earnings as a percent of net sales increased to 13.0% from 11.4% last year driven by the acquisitions of Hanna Andersson and Royal Robbins.  Combined, Andersson and Royal generated sales of approximately $44 million and produced operating margins in the mid-teens.


Looking ahead, Kellwood management plans to have net sales from ongoing operations in the range of $1.50 billion to $1.55 billion. This compares to actual net sales from ongoing operations of $1.514 billion in 2006. Net earnings for fiscal 2007 from ongoing operations are currently forecasted in the range of $17.0 million to $20.0 million versus $23.2 million last year.  On an ongoing basis, fiscal 2007 diluted EPS continue to be estimated in the range of approximately 66 cents to 76 cents per diluted share, compared to 90 cents in fiscal 2006.


For fiscal 2008, the company continues to expect net sales from ongoing operations to be approximately $1.55 billion. On an ongoing basis, net earnings for fiscal 2008 continue to be estimated at $32.0 million with diluted earnings per share continuing to be estimated at approximately $1.50.