Jones Q2 profit rises 20%

New York City Jones Apparel Group said Wednesday second-quarter profit rose 20% as the company cut costs and closed stores in a turnaround plan to offset lower revenue. The results beat Wall Street’s estimates.

Second-quarter profit rose to $12.6 million from $10.5 million last year. The company, whose brands include Nine West, Jones New York, Anne Klein and others, said that revenue fell 3.1% to $803.9 million from $829.4 million last year.

In April, Jones said it would close 225 stores to cut costs. The company said it now plans to close 240 stores over the next two years, up from its previous estimate of 225.

Jones expects cost-cutting and closing stores will help results by $4 million in 2009, $15 million in 2010 and $21 million in 2011.