Kellwood cut their Q4 and full-year guidance in half on weak sales in womens sportswear amd aggressive markdowns in reaction to a disappointing fall season. Net earnings in the fourth quarter are now expected to be $6.5 million, or 23 cents per diluted share, which is below the previous guidance of $13.7 million or 48 cents per share. Last year, Kellwood reported net earnings of $12.8 million and earnings per diluted share of 46 cents in the fourth quarter.
Net earnings for fiscal year 2004 are now forecasted to be roughly $70.0 million, or $2.50 per diluted share. Previously, Kellwood projected net earnings of $77.5 million, or $2.75 per diluted share and last year the company reported net earnings of $72.6 million, or $2.68 per diluted share from continuing operations. The company now expects sales for the year to be approximately $2.55 billion, versus its earlier forecast of $2.57 billion. Last year Kellwood reported sales of $2.35 billion.
Looking forward, Kellwood now expects sales in the first quarter of 2005 to be approximately $640 million, versus $686 million last year, a 6.7% decline.