Jones Apparel Group Inc. said Wednesday it will close 225 stores nationwide to cut costs and adjust to overall economic conditions.
Meanwhile, it announced quarterly results that beat analysts’ expectations, and shares were trading 15 percent higher at $9.26.
The retailer did not specify which stores would be closed but indicated they will be shuttered between now and the end of 2010. Closing the stores will save $20 million a year the company estimates. An estimate was not provided on the number of jobs expected to be cut.
Jones Apparel Group operates several Nashville-area stores, including the Easy Sprit Store in Cool Springs Galleria and the Nine West stores in Opry Mills and the Mall at Green Hills.
The company also operates distribution facilities in Middle Tennessee — including in Wilson County and Lawrence County — and supplies a number of area department stores, including Dillard’s, Hiecht’s and Belks.
Jones Apparel (NYSE:JNY) reported flat earnings in the first quarter, with income of $300,000, or break-even on a share basis, compared to year-earlier income of $19.5 million, or 23 cents.
On an operating basis, excluding a non-cash charge of $21 million related to planned store closings, the company’s earnings per share would have been 28 cents, versus 37 cents a year ago, on a comparable basis. The average estimate of analysts polled by Thomson Reuters First Call was 10 cents.
