The global market for piece goods and apparel production has changed significantly in favor of sourcing piece goods and finished product out of the Far East. At the same time, the downturn in consumer spending on apparel and consumer confidence has resulted in a prolonged period of weak consumer and retail demand which in turn has resulted in some excess capacity in our warehousing and distribution network. As a result, we have analyzed our sourcing and distribution infrastructure along with other structural issues, and are implementing actions to align the Company to better reflect this new business environment.
Implementation of these actions will improve Kellwood's cost competitiveness, sourcing flexibility, facility utilization and customer service. These actions will reduce earnings for fiscal 2002 by approximately $15 million before tax ($9.4 million after tax, or $0.40 per share).
Kellwood Company (NYSE: KWD) is a $2.2 billion marketer of apparel and recreational camping products. For more about Kellwood, visit the Company's web site at www.kellwood.com .
Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the safe harbor provisions of the federal securities laws. Actual results may differ materially due to risks and uncertainties that are described in the Company's Form 10-K and other filings with the SEC.
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