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NEW YORK -- Greater demands for markdown support helped slice Kellwood Corp.'s third-quarter earnings nearly in half as corporate and women's sportswear revenues each dropped about $100 million.
In the three months ended Oct. 31, net earnings for the group dropped 48 percent to $13.9 million, or 61 cents a diluted share, from $26.7 million, or $1.15, in the year-ago quarter. Prior-year earnings were reduced 11 cents a share by nonrecurring items, including loss of royalty income from the Kathie Lee brand.
Sales declined 14.5 percent to $601.4 million from $703.1 million. Women's sportswear revenues decreased by $98 million, or 20 percent, to $403.4 million from $501.6 million, while the men's sportswear business was essentially flat at $109.9 million.
The St. Louis-based company said that the lower sales volume and lower gross margins resulted in part from having to provide retailers with both lower prices and a higher level of markdown assistance. Due to the anticipation of continued markdowns and pricing pressures, Kellwood provided fourth-quarter guidance of a loss in the range...