The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Enters Men's Jeanswear Market With Andrew MarcJones Completes Exclusive Licensing and Distribution Agreement with G-III
NEW YORK, May 20, 2010 /PRNewswire via COMTEX/ --Jones Apparel Group, Inc. ("Jones," the "Company") (NYSE: JNY) today announced that its Jones Jeanswear Division is entering the menswear market and has entered into an exclusive licensing and distribution agreement with G-III Apparel Group, Ltd. ("G-III") (Nasdaq: GIII) for Andrew Marc men's jeanswear.
Jones will build on its category expertise in jeanswear, including its longstanding women's denim portfolio and proven operational and design expertise, to support this new initiative. The Jones Jeanswear Division, which is known in the marketplace for delivering exceptional quality products, enjoys broad multi channel distribution for its 12 women's denim brands, including Gloria Vanderbilt, America's original designer jeans, as well as L.e.i., GLO, Nine West and most recently, Jessica Simpson.
The agreement with G-III grants Jones the exclusive right to design, market and distribute Andrew Marc jeanswear for men. The initial launch will be for Marc Moto, a Rebel Division of Andrew Marc, and is expected to be in approximately 500 doors beginning in the fourth quarter of 2010, with launches of Andrew Marc and Marc New York jeanswear expected to follow in 2011. The denim-inspired jeanswear apparel line will include jeans, casual pants, shorts and jackets, as well as woven and knit tops, t-shirts and sweaters. Jeanswear for Marc Moto will retail from $49 to $79 for bottoms and $24 to $49 for tops.
Jack Gross, Chief Executive Officer of Jones Jeanswear Group, said: "We are excited about Jones's entrance into men's jeanswear and pleased that we can open this new chapter with a partner such as G-III. The Jones Jeanswear Division has emerged as a leader in the industry over the past few years, and we look forward to mirroring the success of our women's platform in the menswear marketplace. Together with G-III, we will extend Andrew Marc's reach by adding jeanswear to this truly wonderful American brand."
Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said: "This is a very important development for the Andrew Marc brand, which today holds a strong position in upscale specialty and department stores. We are thrilled that Jack Gross and his team at Jones Jeanswear have chosen us as their men's jeanswear partner. We are confident that they will do an incredible job in carrying out our strategy of developing Andrew Marc into an iconic lifestyle brand."
The Andrew Marc brand includes Andrew Marc, which will continue to be sold at better department and specialty stores including Bloomingdales, Nordstroms and Saks; Marc New York, which will continue to be sold at department and specialty stores including Macy's and Lord & Taylor; and Marc Moto, which will be sold at department stores and specialty stores similar to Marc New York.
For over 25 years, Andrew Marc has had a truly American vision, representing the rebel in all of us, the love of our artful roots and the pride of our technological triumphs. The combination of luxury materials, innovative engineering and artisan details distinguishes Andrew Marc as a uniquely American 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 and through its e-commerce web sites. The Company's nationally recognized brands include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper, Robert Rodriguez, 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, women's footwear under the Dockers(R) and Dockers(R) Women brands and infants', toddlers' and boys' footwear (excluding girls' footwear) under the Dockers(R) and Dockers(R) Premium brands, licensed from Levi Strauss & Co., apparel and accessories under the Rachel Roy brand licensed from Rachel Roy IP Company, LLC, and Jessica Simpson jeanswear licensed from VCJS 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 G-III Apparel Group, Ltd.
G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear and women's suits under licensed brands, its own brands and private label brands. G-III has fashion licenses under the Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson, Nine West, Ellen Tracy, Tommy Hilfiger, Enyce, Levi's and Dockers brands and sports licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, Touch by Alyssa Milano and more than 100 U.S. colleges and universities. G-III sells outerwear and dresses under its own Andrew Marc and Marc New York brands and has licensed these brands for jeanswear, women's footwear, men's accessories, women's handbags and men's cold weather accessories. G-III's other owned brands include G-III, Jessica Howard, Eliza J, Black Rivet, Tannery West, G-III by Carl Banks and Winlit. G-III works with a diversified group of retailers in developing product lines to be sold under their proprietary private labels. G-III also operates 118 retail stores, of which 116 are outlet stores operated under the Wilsons Leather name.
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," "expects," "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 the Company's ability to obtain capital on satisfactory terms;
- given the uncertain economic environment, the possible unwillingness of committed lenders to meet their obligations to lend to borrowers, in general;
- the performance of the Company's products within the prevailing retail environment;
- customer acceptance of both new designs and newly-introduced product lines;
- the Company's reliance on a few department store groups for large portions of the Company's business;
- the Company's ability to identify acquisition candidates and, in a competitive environment for such acquisitions, acquire such businesses on reasonable financial and other terms;
- the integration of the organizations and operations of any acquired businesses into the Company's existing organization and operations;
- consolidation of the Company's retail customers;
- financial difficulties encountered by the Company's customers;
- the effects of vigorous competition in the markets in which the Company operates;
- 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 transportation;
- 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, 2009, 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 otherwise.
Statements concerning G-III's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term is defined under the Federal Securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, reliance on licensed product, reliance on foreign manufacturers, risks of doing business abroad, the current economic and credit environment, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business; customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions and general economic conditions, as well as other risks detailed in G-III's filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release.
SOURCE Jones Apparel Group, Inc.