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Jones Apparel to Close 225 Stores

NEW YORK CITY-With same-store sales down 10.6% year over year, the company is focused on returning its retail operations to profitability.

By Paul Bubny | Updated on April 30, 2009

NEW YORK CITY-Jones Apparel Group on Wednesday reported a year-over-year decline in Q1 revenues of 8.6% to $891 million, and announced that it plans to close 225 stores in 2009 and 2010. The company did not identify which regions or retail brands would see closings.

“As a matter of course, the company continually evaluates its portfolio of stores, and now is an opportune time to take action as this plan can be adopted with the use of minimal cash expenditures,” according to a release. Jones Apparel expects to save $3 million this year, $14 million next year and $20 million in 2011 through closing unprofitable locations.

Wesley Card, the locally based manufacturer and retailer’s president and CEO, says in a statement that Jones Apparel’s stores were impacted by “the slowing retail sales trend and promotional environment and registered a 10.6% decrease in comparable store sales during the quarter.” Wholesale jeanswear, which saw a 3.4% revenue increase compared to Q1 2008, was the only company operation that experienced a year-over-year boost, which Jones Apparel blames on “overall economic conditions that are affecting retail sales.”

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