Jones Apparel Swings to 2Q Profit

New York City Jones Apparel Group Inc. said Wednesday it swung to a better-than-expected profit in its second quarter due to exiting several sportswear lines and recording far lower costs associated with selling Barneys New York.

For the quarter ended July 5, the company reported net income of $10.6 million, compared with a loss of $47.1 million in the prior-year quarter.

Revenue fell 8% to $829.4 million from $903.9 million in the second quarter of 2007, mainly because the company no longer sells certain sportswear lines.

In the 2008 quarter, the company's cost of goods sold fell 11%, helping to boost profit.

Jones Apparel said same-store sales were flat. Same-store sales rose 5.8% in the company's footwear stores.