Gloomy earnings forecast lowers I.C. Isaacs stock

March 07, 1998|By Sean Somerville | Sean Somerville,SUN STAFF

Shares of I.C. Isaacs & Co. Inc. fell 26 percent yesterday after the Baltimore-based clothing designer and manufacturer said it might fall short of earnings expectations in the first half of the year.

The drop in the stock's price from $11.375 to $8.375 came as the company reported strong fourth quarter earnings.

Net income for the quarter was $1.76 million, up 76 percent from the year-ago period.

On a per-share basis, earnings increased 62 percent, to 34 cents. Sales were $34.2 million, up 7 percent.

In the report, Gerald W. Lear, the company's president, said the company was "well-positioned" to build on its strong zTC performance. But he added that "apparel retailers are buying goods closer to market needs," which could cause results in the first half of the year "to fall short of market expectations."

Analysts had expected the company to report earnings per share of 27 cents in the current quarter and $1.30 for all of 1998.

The 85-year-old company, which makes sportswear under the BOSS and Beverly Hills Polo Club brands, also said it will close a Newton, Miss., plant that employs 125 and take a charge of between $200,000 and $300,000.

I.C. Isaacs, which employs 95 people in a plant on Bank Street in Baltimore, last year offered 39 percent of its common stock through an initial public offering.

The shares reached a high of $11.75 on Jan. 26.

They fell to as low as $7.75 yesterday.

Pub Date: 3/07/98

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