INTERVIEW-UPDATE 2-Jones Apparel positioned for buying shift-CEO

* CEO says consumers turning to Jones from luxury brands

* Says environment too volatile to forecast earnings (Adds more comments, background; changes headline)

NEW YORK, Feb 11 - Jones Apparel Group Inc's mid-priced brands may position it well as consumers trade down in a recession, but the apparel company is still taking a cautious approach to this year, its chief executive said on Wednesday.

The maker of Jones New York, Nine West and Anne Klein declined to give a 2009 earnings forecast when it reported its 2008 earnings on Wednesday, as it usually does, due to future uncertainty.

"The situation is just too volatile to provide earnings guidance," said Chief Executive Officer Wesley Card in an interview. He said the company would probably resume its practice once the economy improves, but noted that it's difficult to predict when that will be.

"I don't know that we can forecast (a turnaround)," Card said. "Two key things we're looking for as signals are the peaking of the unemployment rate, which hopefully is going to happen sometime mid-year ... and the bottom of this housing market."

Card said he hopes to start seeing a pickup in demand at the end of the year into next year.

Jones, whose stock has fallen 85 percent since September, has seen sales slow and profit margins contract as its department store customers discount its clothing to lure cash-strapped consumers.

Yet, the company is well-positioned, Card said.

"Our price points are right in line with today's shopper's mind-set, where they're trading down from luxury," Card said. "I think we're in a good spot from that perspective."

Retail analyst Jennifer Black, with Jennifer Black & Associates, agreed.

Black also pointed out that the bulk of Jones retail stores -- which include Nine West, Easy Spirit and Enzo Angiolini -- are factory outlets, which may be more attractive to consumers looking to save money.

"Because Nine West's footwear is ... high fashion for a low price point ... they would be a great alternative to some of the higher-priced shoes in the marketplace," Black said. "Cheap is the new cool."

Jones Apparel reported a smaller-than expected loss for its the fourth quarter and said its cash position improved. ID:nN11542437

Its stock closed up 32 cents to $3.58.