The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group Launches Rachel Roy Diffusion Brand Exclusive to Macy's, Inc.
Rachel Rachel Roy to Include Affordable Contemporary Sportswear, Footwear
NEW YORK, April 16 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) ("Jones" or the "Company") today announced a strategy to support
and expand the Rachel Roy brand to reach a diverse audience and increase
demand at different price levels. The Company believes that there is
opportunity to leverage Rachel Roy's design talent to support significant
future growth, including through a Rachel Rachel Roy diffusion brand that will
be offered exclusively through Macy's, Inc.
"We have a sincere belief and high confidence in Rachel's talent and her
position as one of the leading new American designers," said Wesley R. Card,
Jones Apparel Group President and Chief Executive Officer. "We are applying
an integrated strategy to the Rachel Roy brand that draws upon Jones'
exceptional resources and infrastructure to further develop the current
business and drive new growth opportunities."
Terry Lundgren, Chairman, President and Chief Executive Officer of Macy's
Inc., said, "Rachel's design sensibility is very appealing to our fashion
customer who insists on great value and a perfect complement to the existing
stable of high-profile designer brands available exclusively at Macy's. This
new collection is another move in our continued effort to differentiate our
assortments with the best, most desired brands on the market, giving customers
another powerful reason to choose Macy's."
Jones' investment in the Rachel Roy brand began with the Rachel Roy New
York designer label by applying a successful sourcing model to help create
efficiencies and cost-savings while continuing to deliver the highest quality
product. Industry veteran, Stephen Ruzow, has recently been tapped as
President to support Rachel Roy New York domestically and to spearhead
international growth for the designer label.
The Company is now extending its reach to the better contemporary arena
with the launch of a diffusion label to be called Rachel Rachel Roy, which
will be overseen by Susan Metzger, Chief Executive Officer for Women's
Wholesale Sportswear for Jones. The Rachel Rachel Roy collection will include
affordable contemporary sportswear, footwear and accessories, debuting in
August 2009. The collection will be offered exclusively through Macy's Inc.
at select Macy's stores nationwide and on macys.com.
The Rachel Rachel Roy collection will capture a fresh and youthful look
that reflects today's culture by mixing elements of downtown cool with uptown
chic at affordable price points. The line will retail from $59 to $299 for
sportswear, $79 to $199 for footwear, $40 to $195 for jewelry and $69 to $109
Susan Metzger said, "We are thrilled to be able to bring Rachel's
signature aesthetic to a larger audience with the launch of the Rachel Rachel
Roy better contemporary collection. We are confident that a diverse range of
women will identify with the look and feel of the brand and it will quickly
become a dominant label in the marketplace. "
Jeff Gennette, Chief Merchandising Officer at Macy's Inc., said, "The
Rachel Rachel Roy collection is a perfect fit for our stores, offering
designer-infused product at affordable price points. We feel the line will
create new excitement and fashion stature on our floors and is something our
fashion customers are seeking."
Founder and artistic director, Rachel Roy, said, "Accessible fashion has
always been a passion of mine. Every woman should have the opportunity to
express herself through style. Being able to design a contemporary product
line that truly reflects a sense of individuality is a great honor. Macy's has
been an embracing partner in helping us launch this redefinition of a new
The Company has also invested in a new e-commerce website for the Rachel
Roy brand, which is expected to launch in mid-August. The redesigned site
will feature both Rachel Roy New York and Rachel Rachel Roy.
In June 2008, Jones Apparel Group formed a joint venture with Rachel Roy,
Damon Dash and TSM Capital with the sole purpose of further developing the
Rachel Roy brand.
About Jones Apparel Group, Inc.
Jones Apparel Group, Inc. (www.jonesapparel.com) is a leading designer,
marketer and wholesaler of branded apparel, footwear and accessories. The
Company also markets directly to consumers through its chain of specialty
retail and value-based stores. The Company's nationally recognized brands
include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper,
Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo Angiolini, Joan &
David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Albert Nipon and
Le Suit. The Company also markets costume jewelry under the Givenchy brand
licensed from Givenchy Corporation, footwear under the Dockers Women brand
licensed from Levi Strauss & Co., and apparel under the Rachel Roy brand
licensed from Rachel Roy IP Company, LLC. Each brand is differentiated by its
own distinctive styling, pricing strategy, distribution channel and target
consumer. The Company contracts for the manufacture of its products through a
worldwide network of quality manufacturers. The Company has capitalized on its
nationally known brand names by entering into various licenses for several of
its trademarks, including Jones New York, Anne Klein New York, Nine West,
Gloria Vanderbilt, l.e.i. and Evan-Picone, with select manufacturers of
women's and men's products which the Company does not manufacture. For more
than 30 years, the Company has built a reputation for excellence in product
quality and value, and in operational execution.
About Rachel Roy
Launched in spring 2005, the Rachel Roy collection embodies effortless
glamour, and is sophisticated with a modern edge. In 2007, Rachel Roy was
inducted as a new member to the Council of Fashion Designers of America. The
Rachel Roy collections are available at Saks Fifth Avenue, Bergdorf Goodman,
Neiman Marcus, Nordstrom and designer specialty stores worldwide. For more
information, please visit www.rachelroy.com.
Macy's, the largest retail brand of Macy's, Inc., delivers fashion and
affordable luxury to customers at more than 840 locations in 45 states, the
District of Columbia, Puerto Rico and Guam. Offering distinctive assortments
including exclusive fashion and home brands, Macy's stores are operated by
four regionally based retail divisions -- Macy's East, Macy's Florida, Macy's
Central, and Macy's West -- and an online store at macys.com.
Forward Looking Statements
Certain statements contained herein are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
All statements regarding the Company's expected financial position, business
and financing plans are forward-looking statements. The words "believes,"
"expect," "plans," "intends," "anticipates" and similar expressions identify
forward-looking statements. Forward-looking statements also include
representations of the Company's expectations or beliefs concerning future
events that involve risks and uncertainties, including:
-- those associated with the effect of national, regional and
international economic conditions;
-- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence;
-- the tightening of the credit markets and our ability to obtain credit
on satisfactory terms;
-- given the uncertain economic environment, the possible unwillingness
of committed lenders to meet their obligations to lend to borrowers,
-- the performance of the Company's products within the prevailing retail
-- customer acceptance of both new designs and newly-introduced product
-- the Company's reliance on a few department store groups for large
portions of the Company's business;
-- consolidation of the Company's retail customers;
-- financial difficulties encountered by customers;
-- the effects of vigorous competition in the markets in which the
-- the Company's ability to attract and retain qualified executives and
other key personnel;
-- the Company's reliance on independent foreign manufacturers;
-- changes in the costs of raw materials, labor, advertising and
-- the general inability to obtain higher wholesale prices for the
Company's products that the Company has experienced for many years;
-- the uncertainties of sourcing associated with an environment in which
general quota has expired on apparel products but litigation and
political activity seeking to re-impose quotas have been initiated;
-- the Company's ability to successfully implement new operational and
financial computer systems; and
-- the Company's ability to secure and protect trademarks and other
intellectual property rights.
A further description of these risks and uncertainties and other important
factors that could cause actual results to differ materially from the
Company's expectations can be found in the Company's Annual Report on Form
10-K for the year ended December 31, 2008, including, but not limited to, the
Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors
therein, and in the Company's other filings with the Securities and Exchange
Commission. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, such expectations may prove to
be incorrect. The Company does not undertake to publicly update or revise its
forward-looking statements as a result of new information, future events or
SOURCE Jones Apparel Group, Inc.
CONTACT: For Jones Apparel Group, Investors, John T. McClain, CFO of
Jones Apparel Group, +1-212-642-3860,
or Media, Joele Frank and Sharon Stern
of Joele Frank, Wilkinson Brimmer Katcher for Jones Apparel Group,
+1-212-355-4449; or for Rachel Roy, Debra Thom of HL Group, +1-212-529-5533,
Web Site: http://www.jonesapparel.com