The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Announces Management Realignment for Three Key Businesses
NEW YORK, Jan. 30 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) today announced a management realignment within its wholesale
footwear and accessories, company-owned retail apparel and footwear (excluding
Barneys New York) and wholesale moderate apparel businesses.
Peter Boneparth, President and Chief Executive Officer, Jones Apparel
Group, Inc., stated, "Consistent with the strategic review principles that we
have previously communicated, this realignment will provide us the leadership
and structure (i) to become a more streamlined and efficient Company through
the use of common information technology platforms, (ii) to leverage best
practices throughout the organization, (iii) to demonstrate the highest level
of consistency and customer service to our wholesale relationships and, (iv)
to ensure we continuously deliver a superior quality and value proposition to
the millions of consumers that purchase our products."
Effective immediately, the Company announced the following management
- Andrew Cohen has been named to the newly created position of President
- Wholesale Footwear and Accessories, with responsibility for managing
and further developing the Company's highly recognizable brand
portfolio of footwear, handbags and costume jewelry. Mr. Cohen is an
experienced and successful executive in the apparel and footwear
industry, and brings superior management skills to the business. Mr.
Cohen was previously Group President - l.e.i. and Energie and will
report to Rhonda Brown, President and Chief Executive Officer,
Footwear, Accessories and Retail Group.
- Heather Pech has been named President - Company-Owned Retail Footwear
and Apparel. Ms. Pech has a strong merchandising sensibility and will
focus on leveraging the Company's infrastructure to grow the retail
business. Ms. Pech was previously Chief Executive Officer - Polo Jeans
Company and will report to Rhonda Brown.
Ms. Brown commented, "We are very excited to welcome Andy and Heather to
our team and to share in their wealth of industry experience. Our Footwear,
Accessories and Retail Group has developed a strong brand portfolio covering
many price points and categories. By focusing on quality product, customer
service and operational execution, we constantly challenge ourselves to
surpass our prior achievements. Collectively, Andy, Heather and I each share
the common vision of exceeding our customers' expectations."
Mr. Boneparth went on to say, "Andy and Heather each possess the knowledge
and leadership to further drive our wholesale footwear and retail businesses,
respectively. Working with Rhonda Brown, I am confident they will elevate the
identity and profile of our footwear and accessories portfolio."
- Jack Gross has been named Group Chief Executive Officer of all denim
and junior businesses. Mr. Gross has a proven track record as an
exceptional business leader. In addition, he has been very successful
in capturing market share by creating and launching high-quality
branded product. We are confident that Mr. Gross will seek to leverage
best practices across these businesses to facilitate growth in a
variety of denim market niches. Mr. Gross was previously Chief
Executive Officer - Gloria Vanderbilt Division and will continue to
report to Mr. Boneparth.
- Barry Bates has been appointed Group President - l.e.i. and Energie,
and will report to Jack Gross. Mr. Bates joined Jones Apparel Group
last year as President - l.e.i. and has a wealth of industry
experience, most notably in the junior market. In conjunction with
this appointment, Patty Leto is being promoted to President - Energie
and will report to Mr. Bates. Ms. Leto was previously Senior Vice
President Merchandising - Energie. She has held various senior
positions at both Macy's East and Federated Corporate.
Mr. Boneparth commented, "Jack has spearheaded the development of our best
performing denim brands and we are excited about the future potential of the
portfolio. He, along with Barry and Patty, will look to maximize the
performance of the Company's denim and junior businesses."
Mr. Boneparth concluded, "The appointments announced today will solidify
our operating management team and, more importantly, the structure with which
we will approach the market. We remain focused on competing as an institution
so that we may continue to deliver superior product to our customers."
Jones Apparel Group, Inc. (http://www.jny.com), a Fortune 500 company, is
a leading designer, marketer and wholesaler of branded apparel, footwear and
accessories. We also market directly to consumers through our chain of
specialty retail and value-based stores, and operate the Barneys New York
chain of luxury stores. Our nationally recognized brands include Jones New
York, Evan-Picone, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i.,
Energie, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Joan & David,
Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Kasper, Anne Klein,
Albert Nipon, Le Suit and Barneys New York. The Company also markets apparel
under the Polo Jeans Company brand licensed from Polo Ralph Lauren
Corporation, costume jewelry under the Tommy Hilfiger brand licensed from
Tommy Hilfiger Licensing, Inc. and the Givenchy brand licensed from Givenchy
Corporation and footwear under the Dockers Women brand licensed from Levi
Strauss & Co. Each brand is differentiated by its own distinctive styling,
pricing strategy, distribution channel and target consumer. We primarily
contract for the manufacture of our products through a worldwide network of
quality manufacturers. We have capitalized on our nationally known brand names
by entering into various licenses for several of our trademarks, including
Jones New York, Evan-Picone, Anne Klein New York, Nine West, Gloria Vanderbilt
and l.e.i., with select manufacturers of women's and men's products which we
do not manufacture. For more than 30 years, we have built a reputation for
excellence in product quality and value, and in operational execution.
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 and regional economic
- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence or generally reduced
shopping activity caused by public safety concerns;
- 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 Company
- the Company's ability to identify acquisition candidates and acquire
such businesses on reasonable financial and other terms, in an
increasingly competitive environment for such acquisitions;
- the integration of the organizations and operations of any acquired
businesses into the Company's existing organization and operations;
- the Company's reliance on independent foreign manufacturers;
- changes in the costs of raw materials, labor and advertising;
- 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 the new environment in
which quota has been eliminated on apparel products while political
pressure is building for the re-imposition of quotas in certain
- 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/A for the fiscal year ended December 31, 2004, including, but not limited
to, the Statement Regarding Forward-Looking Disclosure and the information
concerning trends and risk factors included in Management's Discussion and
Analysis of Financial Condition and Results of Operations 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.
SOURCE Jones Apparel Group, Inc.
/CONTACT: Wesley R. Card, Chief Operating and Financial Officer, or
Anita Britt, Executive Vice President Finance, both of Jones Apparel Group,
/Web site: http://www.jny.com /