Donna Karan Projects Earnings Shortfall

Donna Karan International Inc., maker of Donna Karan New York and DKNY apparel, said fourth-quarter earnings fell 11%, partly because sales of women’s clothing at U.S. department stores declined. Profit from operations fell to $3.91 million, or 18 cents a share, from $4.4 million, or 20 cents, a year ago. Sales fell 6.2% to $165.7 million. Sales of women’s clothing fell partly because of a smaller selection of career clothing and no clear fashion trend, the company said. The company also said it is still reviewing options, including an $8.50-a-share bid by Paris-based LVMH Moet Hennessy Louis Vuitton. Several shareholders have sued to block the LVMH bid, claiming the offer is too low. Donna Karan shares closed off 2 cents at $8.60 on the NYSE.