DOW JONES NEWSWIRES
Jones Apparel Group Inc.'s (JNY) third-quarter earnings rose 11%
as cost cuts and "invigorating" its product line aided results as
sales continue to fall.
Several analysts have raised their 2009 and 2010 earnings
outlook for the New York retailer and supplier of brands such as
Jones New York, Evan Picone and Gloria Vanderbilt in recent weeks,
citing improved retail trends and the need for department stores to
restock inventory. Jones Apparel didn't update its guidance in its
press release Wednesday.
The company's earnings climbed to $30.4 million, or 36 cents a
share, from $27.3 million, or 33 cents a share, a year earlier.
Earnings from continuing operations, excluding restructuring and
other impacts, grew to 46 cents a share from 34 cents in the
prior-year period.
Revenue declined 11% to $855.7 million.
Analysts polled by Thomson Reuters expected earnings of 27 cents
a share on revenue of $867 million.
Gross margin increased to 35.6% from 33.5% as the company
continued to trim costs. Jones Apparel plans to close about 265
stores through 2010, with one-quarter of the total taking place
thus far.
Shares closed Tuesday at $17.69 and were inactive premarket
Wednesday. The stock has retreated somewhat after a seven-month
rally that brought Jones Apparel to a 13-month high of $19.66 last
week. Shares have tripled in 2009.
-By Jennifer Hodson and Kevin Kingsbury, Dow Jones Newswires;
212-416-2269; jennifer.hodson@dowjones.com