Jones Apparel Group 3Q Profit Drops

New York City Jones Apparel Group Inc. reported that its third-quarter net income dropped 93% to $27.3 million from $400.1 million a year ago, citing slower sales and the elimination of two sportswear lines.

The exit of those moderate sportswear lines hurt profit by about $65 million in the quarter, the company said.

The year-ago quarter's profit was helped by a $90.9 million income-tax benefit that was only partially offset by hefty restructuring costs. In the 2008 third quarter, the company reported a $14.6 million provision for income taxes rather than a benefit.

The bankruptcy filings of two regional department stores and the lower shipping volumes that resulted also affected results, the company said.

Revenue fell 6% to $964.7 million from $1.03 billion.

Sales fell in both the wholesale jeans and wholesale better apparel divisions. Wholesale footwear and accessories sales grew slightly, while licensing revenue also dipped.