Really, Jones Apparel Group Inc. (NYSE: JNY) could not have picked a better day to report fourth quarter earnings if it tried. When the government reports surprisingly strong retail sales for January, with clothes in particular up 1.4% during the month, that fact can only help a clothing retailer.

Jones, still executing its restructuring plan, said its fourth-quarter net loss narrowed to $89.8 million, or $1.06 per share, from $269.5 million, or $2.51 per share, last year. Without the gain on the sale of its high-end department-store chain, Barneys New York, and other costs, net income was nine cents per share, beating the seven cents per share analysts had been expecting.

Jones, which exited several lines during the quarter and along with the rest of the market suffered from weak holiday shopping season, posted a 17% decline in revenue to $838.5 million from $1.01 billion last year. Analysts expected revenue of $874.8 million. To get a better feel for the retailer's performance during the quarter, same-store sales fell 4.8%.

While the restructuring should be completed by the end of the year, according the company, and hopefully improve operations, Jones also guided 2008 earning in a wide range of $1.25 to $1.50 a share -- to reflect uncertainty in general economic conditions -- and well below analyst expectations of $1.53.

Jones apparel also announced of an agreement with Wal-Mart Stores Inc. (NYSE: WMT) where the discount retailer will begin carrying the l.e.i. brand for juniors, junior plus and girls in the summer.

Perhaps it was the agreement with Wal-Mart, or perhaps it was the overall sentiment about retail today, but Jones shares rallied in response. After hitting $17.15 earlier today, JNY shares are now (10:30 a.m.) trading around $16.30, up over 5.5%. Still, JNY shares are far off their 52-week high of $34.73 set in April of last year, but have also come off their low of $12.10 set late January.

Despite the share rally, I'd still be very cautious when it come to Jones Apparel. Sure, I myself am old fashioned when it comes to clothes (or maybe I'm just old) and can actually be found at Jones New York and Nine West, but despite the restructuring, I feel the brands are quite mature, representing little -- if any -- growth going forward.