Jones Apparel Group's (NYSE:JNY) Preannouncement Doesn't Bode Well for Them

The preannouncement by Jones Apparel Group (NYSE:JNY) that is significantly below expectations, is a bad sign for the company for 2011, as there's a lot of uncertainty on retail margins and consumer spending.

Barclays notes, "The Jones Group announced that it expects 4Q10 EPS of approximately $0.03 vs. our previous estimate of $0.08: The company is scheduled to report 4Q10 results on Wednesday, February 9...Given margin pressures and uncertainty regarding the strength of consumer spending and acceptance of price increases, we are decreasing our 2010, 2011, and 2012 EPS estimates to $1.50, $1.55, and $1.70 from $1.55, $1.60, and $1.75, respectively."

Barclays maintains an "Equalweight" rating on Jones Apparel Group (JNY), which closed Friday at $12.44, down $1.34, or 9.72 percent. Barclays has a price target of $18 on them for now.