Boneparth added, "2005 was a challenging year, given the uncertain economic conditions, coupled with the consolidation of our two largest wholesale customers, and we expect 2006 to provide continued similar challenges.
Our growth strategy for 2006 and beyond is to continue our strategic partnership with our wholesale customers. Further, we continue to explore our own vertical retail opportunities through our Barneys flagship and co-op concept stores, as well as our own footwear and ready to wear stores. We plan to continue opening store locations under new concepts, such as Anne Klein, and to introduce accessories store locations during 2006.”
“We expect the growth in our retail channel of distribution to continue to provide further diversification and balance. This strategy has been effective and has reduced the sales concentration to our largest wholesale customer, Federated Department Stores, to represent 19% of gross sales in 2005, as compared to 26 percent in 2004," he said.
As announced on February 3rd 2006, we completed the sale of the Polo Jeans Company business to Polo Ralph Lauren Corporation and settled all of the outstanding litigation related to the Lauren licensed business.
Boneparth added, "We estimate 2006 net revenues to be in a range of $4.65 billion to $4.75 billion (exclusive of the Polo Jeans Company business). As we previously stated, we are targeting 2006 adjusted earnings per share to be equal to or exceed 2005 adjusted earnings per share of $2.48, after excluding the impact of the sale of the Polo Jeans Company business (which contributed approximately $42 million, or $0.22 earnings per share), and the favorable tax adjustments and Canadian tax repatriation realized in 2005 ($0.07 earnings per share) to result in $2.19 in comparable 2005 earnings per share."
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