Marketer of apparel and consumer soft goods Kellwood Company commented on its business outlook by introducing first quarter and fiscal 2006 net sales and earnings guidance.
The Company also provided guidance for the impact of stock option expense on its fiscal 2006 results, as required by FASB 123R.
Fiscal 2006 Guidance
Net Sales
Net sales from ongoing operations in fiscal year 2006 are expected to approximate $2.0 billion, versus $2.07 billion from ongoing operations forecasted for fiscal year 2005.
On a segment basis, sales are expected to be as follows:
-- Men's Sportswear sales are planned to remain in the range of $505 million.
-- Other Soft Goods sales are planned to increase by approximately $5 million, or 2 percent to $320 million, versus $315 million in fiscal year 2005 from ongoing operations as a result of growth from Gerber Childrenswear and American Recreation Products.
-- Women's Sportswear sales are expected to decrease by approximately $75 million, or 6 percent to $1,175 million, versus $1,250 million forecasted for fiscal year 2005 from ongoing operations.
The principal reasons for the year-to-year planned decrease include the anticipated fallout from the recent consolidations at retail, and a planned reduction in sales of off price merchandise.
marketing@alchempro.com
