Kellwood has lowered guidance for the third quarter and now expects net earnings to be in the range of $28.5 million, or approximately $1.00 per diluted share, which is roughly 12% below the guidance provided in August of $32.5 million, or $1.15 per share. This new guidance is also 7.8% below net earnings last year when KWD reported net earnings of $30.9 million and earnings per share of $1.13 in the third quarter.
KWD chairman and CEO Hal Upbin said that most of the miss was because of a slowdown in the consumers spending habits, mainly related to higher gas prices and weather. He also said that some of the companies core brands missed the mark when it came to the seasons fashion, but this was a minor issue.
Upbin expects these fashion issues to be cleared up by fall of 05. He also said that the company will still experience 6% organic growth for the year.
Full year net earnings are now forecasted to be in the range of $77.5 million, or approximately $2.75 per diluted share. In August Kellwood provided net earnings guidance of $89 million to $91 million, or $3.15 to $3.25 per share. Last year the company reported net earnings of $72.6 million, or $2.68 per share.
