(RTTNews) - New York-based Jones Apparel Group, Inc. (JNY: News ), Wednesday, posted higher third-quarter profit that beat analysts' estimates, as the company controlled its inventories and costs in a period when sales declined 11%.

Net income available to common stockholders of Jones was $29.1 million or $0.36 per share compared with $26.8 million or $0.33 per share year-on-year.

Income from continuing operations available to common stockholders of Jones was $29.1 million or $0.36 per share compared with $25.8 million or $0.32 per share a year ago.

Adjusted earnings per share from continuing operations was $0.46 for the quarter, up from $0.34 for the same period last year. On average, eight analysts polled by Thomson Reuters expected Jones Apparel to post earnings of 0.27 per share for the third quarter. Analysts' estimates typically exclude one-time items.

Adjusted results excluded charges related to severance and other costs related to restructuring activities initiated across the company and certain other costs totaling around $13 million, or $8 million after tax.

Revenues for the third quarter were down 11% to $855.7 million from $964.7 million in the same quarter of 2008. Net sales for the quarter fell to $843.9 million from $948.6 million last year. The decrease was anticipated and reflective of overall economic conditions that continue to affect retail sales in general, Jones Apparel said. Five analysts estimated revenue of $867.25 million for the October quarter.

Chief Executive Wesley Card said, "We maneuvered through this very difficult period in our economy by initiating a rigorous effort across the Company focused on controlling inventories and managing costs, while simultaneously invigorating our merchandising and product initiatives."
Selling, general and administrative expenses were $243.5 million, down from $271.5 million a year ago. Cost of goods sold reduced significantly to $551.3 million from $641.4 million last year.

"As a result of our aggressive management, inventories and expenses continue to be well controlled, with inventories down 24% compared with the prior year," said John McClain, Jones Apparel Group Chief Financial Officer.

Card also said that the company's vertical retail business shows signs of improvement as changes begin to take effect. Comparable store sales in the retail division were down, as anticipated, and consistent with the overall retail environment.

For the nine-month period, net income available to common stockholders of Jones was $42.1 million or $0.51 per share compared with $56.5 million or $0.68 per share last year. Total revenues were $2.55 billion compared with $2.77 billion last year. Net sales were $2.52 billion compared with $2.73 billion year-on-year.

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