News Flash

We continue to bring fresh concepts to market, Jones CEO

01 Feb '10

4 min read

John T. McClain, Jones Apparel Group Chief Financial Officer, stated, "As a result of the challenging market conditions and the uncertain economic outlook, we were required under the accounting rules to record non-cash goodwill and trademark impairment charges in the fourth quarter."

Retail Improvement Plan

The Company continues to implement its previously-announced retail improvement plan to right-size the retail portfolio, with the goal of enhancing segment profitability, reducing capital expenditures and improving return on invested capital. To date, the Company has exited 99 locations and remains on track to exit a total of approximately 265 locations, with the remaining closings scheduled to occur throughout the remainder of 2010. The Company expects to report a profit on an adjusted basis in the Retail segment in the fourth quarter 2009.

Liquidity and Cash Provided By Operating Activities

The Company expects to report approximately $330 million of cash on hand at December 31, 2009, with no amounts drawn under its $650 million revolving credit facility. Additionally, the Company expects to report cash provided by operating activities from 2009 of approximately $345 million. The Company's previous guidance was cash on hand of $200 million and cash provided by operating activities to be in excess of $200 million. The increase in cash on hand and in cash provided by operating activities is primarily due to inventory control, lower working capital requirements and the timing of certain cash receipts and payments.

Jones Apparel Group Inc

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