Jones Apparel 3Q Earnings Up 11% On Cost Cuts, Margin Gains

   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; [e-mail]