NEW YORK, May 2 /PRNewswire/ -- Jones Apparel Group, Inc. (NYSE: JNY) today announced revenues and earnings for the fiscal quarter ended April 7, 2001.

Total revenues for the quarter were $1,070 million, as compared to $1,082 million reported for the first fiscal quarter of 2000. Excluding discontinued businesses, total revenues for the quarter increased by 9%, from $975 million to $1,066 million. Net income increased by 35% to $96 million in comparison to $71 million for first quarter of 2000. Earnings per share for the first quarter increased by 29% to $.75, as compared to $.58 for the first quarter of 2000.

Sidney Kimmel, Chairman, commented, "We are extremely pleased with our excellent results, especially given the overall uncertainty prevailing in the current economic environment. While we recognize the overall business climate is difficult, we remain comfortable with our current business plans. We believe that our products, brands and distribution channel diversification provide us with the balance and stability to operate successfully in varied economic situations."

Mr. Kimmel continued, "We continue to make strategic moves for the future financial strength and stability of the company. As previously announced, we have entered into an agreement to acquire McNaughton Apparel Group Inc. This acquisition accelerates our positioning in the moderate women's and junior's sportswear market with such retailers as Federated and May Department Stores, JCPenney, Kohls and Sears. We also announced our acquisition of Judith Jack, which is part of our strategy to build critical mass in the jewelry segment of our business. These acquisitions provide further product and distribution diversification to the Company, and enhance our ability to serve a broad group of consumers with a wide range of income levels and shopping destination preferences."

Mr. Kimmel further stated, "As we progress further into 2001, we remain comfortable with a revenue range of $4.1 billion to $4.25 billion, which is up to a 3% increase over 2000. On continuing businesses, the increase ranges from 7% to 10%. We are comfortable with an earnings per share range guidance of $2.95 to $3.00 for the full year, reflecting a mean increase of 19% over 2000. This guidance excludes any results from the acquisition of McNaughton Apparel Group Inc., which is planned to close in the third quarter of 2001. (Earnings per share figures for 2000 exclude all non-cash charges relating to purchase accounting adjustments for the write-up of inventories to fair market value)."

Mr. Kimmel added, "We are also pleased to announce the addition of Anthony Scarpa to our Board of Directors. Tony brings over 35 years of business and direct industry experience to the Jones Apparel Group Board, most recently serving as Senior Vice President and Division Executive of the Chase Manhattan Bank. Mr. Scarpa will serve on the audit, compensation and stock option committees of our Board. We welcome Mr. Scarpa and look forward to his contributions to Jones Apparel Group."

Jones Apparel Group, Inc. (www.jny.com) is a leading designer and marketer of branded apparel, footwear and accessories. The Company's nationally recognized brands include: Jones New York; Lauren by Ralph Lauren, Ralph by Ralph Lauren, and Polo Jeans Company, which are licensed from Polo Ralph Lauren Corporation; Evan-Picone, Rena Rowan, Todd Oldham, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Napier and Judith Jack. The Company also markets costume jewelry under the Tommy Hilfiger brand licensed from Tommy Hilfiger Corporation, and the Givenchy brand licensed from Givenchy Corporation. Celebrating more than 30 years of service, the Company has built a reputation for excellence in product quality and value, and in operational execution.

Certain statements herein are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements represent the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including the strength of the economy and the overall level of consumer spending, the performance of the Company's products within the prevailing retail environment, and other factors which are set forth in the Company's 2000 Form 10-K and in all filings with the SEC made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

                          JONES APPAREL GROUP, INC.
                        CONSOLIDATED OPERATING RESULTS
                                 (UNAUDITED)

    all amounts in millions except per share data

                                                      Fiscal Quarter Ended
                                                    April 7,        April 2,
                                                      2001            2000

    Total revenues                                   $1,070          $1,082
    Cost of goods sold                                  630             644
    Gross profit                                        440             438

    SG&A expenses                                       250             285

    Amortization of goodwill                             10               9
    Operating income                                    180             144
    Net interest expense                                 21              26
    Income before taxes                                 159             118
    Provision for income taxes                           63              47
    Net income                                          $96             $71

    Diluted earnings per share                        $0.75           $0.58

    Diluted shares outstanding                          130             122



                          JONES APPAREL GROUP, INC.
                         CONSOLIDATED BALANCE SHEETS
                                 (UNAUDITED)


    all amounts in millions


                                                     April 7,        April 2,

2001 2000

    ASSETS

    CURRENT:
      Cash and cash equivalents                          $94            $35
      Accounts receivable, net of allowance of $13 and
       and $22 for doubtful accounts                     625            594
      Inventories                                        605            547
      Other current assets                               148            151
        TOTAL CURRENT ASSETS                           1,472          1,327

    Property, plant and equipment, at cost, less
     accumulated depreciation and amortization           221            243
    Goodwill, less accumulated amortization            1,078          1,018
    Other intangibles, less accumulated amortization     367            343
    Other assets                                         100             85

                                                      $3,238         $3,016


    LIABILITIES AND STOCKHOLDERS' EQUITY


    CURRENT:
      Short-term borrowings and current portion of
       long-term debt and capital lease obligations     $260           $533
      Accounts payable                                   205            223
      Accrued expenses and other current liabilities     205            180
        TOTAL CURRENT LIABILITIES                        670            936

    NONCURRENT LIABILITIES:
      Long-term debt and obligation under
       capital leases                                    960            833
      Other                                               58             51
        TOTAL NONCURRENT LIABILITIES                   1,018            884
        TOTAL LIABILITIES                              1,688          1,820

    STOCKHOLDERS' EQUITY                               1,550          1,196

                                                      $3,238         $3,016

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SOURCE Jones Apparel Group, Inc.
Web site: http: //www.jny.com
CONTACT: Wesley Card, Chief Financial Officer; or Anita Britt, Senior Vice President, Finance and Investor Relations, both of Jones Apparel Group, 215-785-4000