“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.” …
““While overall results are still reflective of low consumer confidence and spending levels, we believe that there is enhanced value to be realized in our businesses through continued prudent cost management and creative marketing and branding,” Card says. “The time is also right to implement our comprehensive strategy to return our retail segment to profitability, as we have many leases expiring in the next two years.” …
Date:5/1/2009
Source:globe