John T. McClain, The Jones Group Chief Financial Officer, commented: "We had another solid quarter and our financial position remains strong. We ended the quarter with $146 million of cash after funding the acquisition of Kurt Geiger and our revolver was undrawn. We entered 2011 with a more conservative, tightened inventory buy plan and we will continue operating in the same manner for the remainder of the year. We will continue to focus on inventory management and expense control to improve margins and maintain a strong balance sheet."
Mr. Card concluded: "While consumer confidence and sentiment continues to be impacted by mixed economic signals, we are cautiously optimistic about the retail environment for the second half. We continue to be disciplined in our spending and are prudently positioning our businesses for long-term growth."
The acquisition of Kurt Geiger has impacted the way the Company manages and analyzes its operating results. Effective with the reporting of the second quarter 2011 results, the Company modified and expanded its reporting segments to reflect the Company's expanding international operations and to enhance the clarity and transparency of operating results.
The modified segments are Domestic Wholesale Sportswear, Domestic Wholesale Jeanswear, Domestic Wholesale Footwear and Accessories, International Wholesale, Domestic Retail and International Retail. The principal changes associated with the updated segment presentation were to segregate the international businesses from the domestic businesses and to adjust the manner in which intercompany transactions are reflected. The changes in reporting segments impact the segment results only and do not impact the consolidated financial results of The Jones Group.