Jones Apparel Plans 225 Store Closings
Following an 8.6% decline in Q1 2009 revenues, Jones Apparel Group, a vertical retailer of specialty apparel and footwear, plans to close 225 stores by the end of 2010.
Jones Apparel Group reported Q1 2009 revenues of $891 million, compared to $975 million in Q1 2008. Comparable store sales also fell 10.6%. By closing 225 stores, Jones Apparel estimates it will improve fiscal results by $3 million this year, $14 million in 2010 and $20 million in 2011. Jones Apparel also expects to reduce future capital expenditures with the move, which incurred a $21 million non-cash store asset impairment charge for the first quarter this year.
According to Bloomberg, Jones Apparel will cut as many as 1,000 jobs as a result of the store closings, which will reduce the retailer’s store count by about 20% from more than 1,100 locations.
While Jones Apparel does sell menswear, its primary line of business is women’s specialty apparel and footwear, through brands such as Nine West, Anne Klein and Gloria Vanderbilt. Women’s specialty retailers have been especially impacted by the ongoing economic recession. Retailers in the segment such as Claire’s, Bon Ton, Ann Taylor, Coldwater Creek, Chico’s, and Limited Brands have all reported varying quarterly and annual losses in sales, revenues, and profit margins.