Kellwood Q3 ongoing-operations profit falls
Dec 7 (Reuters) - Kellwood Co KWD.N, owner of clothing brands Baby Phat and Hollywould, on Friday reported lower quarterly earnings from ongoing operations hurt by higher expenses.
Kellwood, which may become the object of a hostile takeover bid by private equity firm Sun Capital Securities Group LLC, said third-quarter earnings on an ongoing basis fell to $4.0 million, or 15 cents a share, from $10.6 million, or 41 cents a share, a year ago.
Total net loss was $1.1 million, or 4 cents a share, compared with net earnings of $8.1 million, or 31 cents a share, last year.
Last month the company said it would sell the Smart Shirts manufacturing operations for $120 million. At that time it cut its third-quarter earnings forecast to a range of 10 cents to 15 cents per share from ongoing operations, on sales of about $400 million to $415 million.
Its prior forecast called for earnings of 30 cents to 35 cents per share on sales of $520 million to $535 million. (See here for "Shop Talk" -- Reuters' retail and consumer blog) (Reporting by Ankur Relia in Bangalore; Editing by Vinu Pilakkott)
