US: Jones Apparel boosts Q3 profit despite sales dip
- Q3 net income rises 11%
- Revenues fall 11%
- Right-sizing its retail portfolio
Branded apparel and footwear firm Jones Apparel Group has improved its third quarter net income, thanks to inventory and cost control.
The company reported a profit of $30.6m for the quarter, up 11% from $27.3m in the prior year period, despite an 11% drop in revenues that reflects the "overall economic conditions that continue to affect retail sales in general."
Revenues were $856m, down from $965m a year earlier.
The company's earnings per share were $0.46, against $0.34 last time.
This quarter's results exclude restructuring and other charges totalling around $13m, it said.
"We manoeuvred through this very difficult period in our economy by initiating a rigorous effort across the company focused on controlling inventories and managing costs, while simultaneously invigorating our merchandising and product initiatives," noted Wesley R Card, Jones Apparel Group president and CEO.
The company said it continues to implement a plan to right-size its retail portfolio.
To date, it has exited 69 locations and remains on track to exit a total of 265 locations, with savings likely to improve results by $4m in 2009, $16m in 2010 and $22m in 2011.
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