* Q2 EPS $0.45 vs Street view $0.34
* Sees '10 rev $3.61 bln-$3.7 bln vs Street View $3.47 bln
* Closed 41 stores, aims another 80 closings by year-end
* Prices to rise in 2011 as wages, currency hit
* Shares jump more than 5 percent
(Adds CEO interview, 2010 sales forecast, byline)
By Phil Wahba
NEW YORK, July 28 Jones Apparel Group Inc
reported JNY.N better-than-expected quarterly earnings as the
company benefited from a pickup in orders from department
stores, solid jeans sales and less discounting, sending its
shares up more than 5 percent.
Overall revenues, which includes net sales and licensing
income, rose 6.9 percent to reach $859.6 million, beating Wall
Street forecasts. Chief Executive Wes Card said the company's
shoes and its Gloria Vanderbilt jeans line had performed
In a regulatory filing, Jones said it expects 2010 full
year revenue to range between $3.61 billion and $3.7 billion,
above Wall Street estimates.
In an interview with Reuters, Card warned that consumers
are still cautious because of the uncertain economy.
"The consumer is probably a little confused and uncertain
right now," Card said.
Still, Card said that the company plans to raise prices in
2011, even though the costs of cotton and leather had begun to
moderate after rising sharply this year.
"Wage rates are up, currency is up and we are going to see
pressure on costs," Card said.
Card said he has seen little pull-back from department
stores on inventories, despite concerns earlier this month that
top retailers may face another round of discounts as consumer
demand remains tepid.
"We're not completely booked but we're booked pretty much
for the balance of the year," Card said.
The company's shares rose 5.2 percent to $17.55 in early
trading on the New York Stock Exchange.
Jones Apparel's wholesale business, which makes up more
than 80 percent of sales, supplies retailers ranging from
Neiman Marcus Group [NMRCUS.UL] Kohl's Corp (KSS.N) and
Nordstrom Inc (JWN.N) to Wal-Mart Stores Inc (WMT.N) and Sears
Holdings Corp's (SHLD.O) Kmart.
The company, whose portfolio includes Nine West, Jones New
York and Anne Klein, said its net income for the second quarter
ended July 3, was $25.7 million, or 30 cents per share, nearly
double the $13.1 million, or 15 cents per share, it earned a
Excluding one-item items, Jones apparel earned 45 cents per
share. Analysts on average were expecting earnings of 34 cents
per share on revenues of $830.5 million, according to Thomson
During the quarter, Jones completed its acquisition of the
upscale shoemaker Stuart Weitzman. Card said the deal would
begin to meaningfully contribute to results later this year.
Jones Apparel, based in New York, said it closed 41 retail
locations, ending the quarter with 880 locations. It expects to
close an additional 80 unprofitable locations by the end of
Card said that by the end of the year, 70 percent of its
stores would be outlets, which he said was "well-balanced" and
that next year, any store closings would be done on a
door-by-door basis based on when leases expire.
(Reporting by Phil Wahba, editing by Gerald E. McCormick, Dave