UPDATE 2-Jones Apparel profit tops Wall St view

* Q1 adj EPS 28 cts tops Wall Street view of 10 cts

* Revenue fell 8.6 percent

* Sees closing 225 stores in 2009, 2010 (Adds details on store closures, savings, CEO comments)

NEW YORK, April 29 - Jones Apparel Group Inc reported a higher-than-expected quarterly profit on Wednesday, helped by cost cuts and increased sales in its wholesale jeans business.

The owner of the Jones New York, Nine West and Anne Klein brands also said it plans to close about 225 retail stores during this year and next, in a plan it expects to improve results by $3 million this year, $14 million next year and $20 million in 2011.

Net income was $300,000, or nil per share, in the first quarter ended April 4, down from $19.5 million, or 23 cents per share, a year earlier.

Excluding items such as an impairment charge and severance costs, the company earned 28 cents per share, easily topping analysts' average estimate of 10 cents, according to Reuters Estimates.

Revenue fell 8.6 percent to $891 million from $975 million, as sales declined across all segments except the wholesale jeans business. Analysts had expected $875 million.

Like all clothing and accessories vendors, Jones Apparel has seen orders shrink from retailers trying to keep their inventories slim in the recession.

In addition to job cuts announced last year, Jones said it laid off additional workers in the first quarter. Those cuts are expected to result in annual savings of $20 million.

The company, which sells its l.e.i. jeans exclusively at Wal-Mart Stores Inc, said revenue in its wholesale jeans business rose 3.4 percent.

"However our other wholesale businesses were impacted by reduced orders and higher markdown support in the continuing promotional environment," said Chief Executive Wesley Card in a statement.

Sales at the company's own retail stores open at least a year fell 10.6 percent.

"We remain cautious in our outlook for 2009, and as the year progresses, our focus will be on financial stability, maintaining our market share and positioning the company for the ultimate recovery," Card added.