The Jones Group Inc. Reports 2012 Fourth Quarter And Full Year Financial Results

   The Jones Group Inc. Reports 2012 Fourth Quarter And Full Year Financial
                                   Results

PR Newswire

NEW YORK, Feb. 13, 2013

NEW YORK, Feb. 13, 2013 /PRNewswire/ --The Jones Group Inc. (NYSE: JNY; the
"Company") today reported results for the fourth quarter and year ended
December 31, 2012. Revenues for the fourth quarter of 2012 were $972 million,
as compared with $894 million for the fourth quarter of 2011. Revenues for
the full year 2012 were $3,798 million, as compared with $3,785 million for
the full year 2011.

The Company reported adjusted earnings per share ("EPS") of $0.14 for the
fourth quarter of 2012, as compared with adjusted EPS of $0.10 for the same
period last year. The 2011 fourth quarter results include certain tax
benefits of $0.07 per share. Adjusted EPS from continuing operations on a
full year basis were $1.24 in 2012, as compared with $1.30 per share in the
prior year. The adjusted results exclude charges related to the impairments
of certain intangible assets, the impact of severance and other costs related
to restructuring activities, certain acquisition-related costs and other costs
not considered relevant for period-over-period comparisons (see reconciliation
of adjusted earnings to reported earnings in the accompanying schedule).

As reported under generally accepted accounting principles ("GAAP"), the
Company reported a fourth quarter loss per share of ($1.06) and ($0.27) for
2012 and 2011, respectively. On a full year basis, the Company reported a
GAAP loss of ($0.72) per share for 2012, as compared with earnings of $0.61
per share for 2011. The results for both periods include non-cash impairment
charges relating to certain goodwill, trademarks and other intangible assets.
The non-cash impairment charges of $75 million ($66 million after tax) and $32
million ($20 million after tax) for 2012 and 2011, respectively, were
primarily related to goodwill in our International Retail business and trade
names utilized in our Wholesale Jeanswear business. Such charges in both
periods were a result of the Company's required annual testing under GAAP.

Wesley R. Card, The Jones Group Chief Executive Officer, stated: "We are
pleased with the results we achieved in the fourth quarter and particularly,
the improvement in our operating performance. This resulted in adjusted
earnings per share of $0.14 versus $0.03 last year, exclusive of tax benefits
of $0.07. Our domestic wholesale footwear and accessories and jeanswear
businesses were our best performers, while our structured sportswear business
and retail channels remained more challenging and promotional, although we are
encouraged with our overall turnaround efforts in these segments. Our
international segments continued to perform quite well, especially in the face
of a difficult economic climate, particularly in Western Europe."

Adjusted operating cash flow during 2012 was $207 million, as compared with
$277 million in 2011. The current year results reflect a higher level of
required investment in working capital, higher tax and interest payments, and
slightly lower earnings. Under GAAP, 2012 cash flows from operations were
$113 million, as compared with $272 million in the prior year. In addition to
the aforementioned higher levels of working capital investment, the 2012 GAAP
results include significant acquisition payments related to the Stuart
Weitzman business. At year-end, the Company had $150 million in cash and no
amounts drawn under its $650 million of committed revolving credit facilities.

John T. McClain, The Jones Group Chief Financial Officer, commented: "Our
financial position remains strong. We ended the year with $150 million in
cash and our revolver undrawn. We are approaching our 2013 inventory
commitments with conservatism, consistent with 2012. With a continued focus
on inventory management, expense control, and operational efficiencies, we
believe we will continue to improve margins and maintain a strong balance
sheet."

Mr. Card concluded: "We are committed to enhancing profitability and continue
to operate efficiently, control costs and execute at a high level. We believe
our new approach to brand management and creative design talent will advance
the reinvigoration of our core brands. At the same time, we are concentrating
our efforts on the areas we believe offer the greatest opportunity for revenue
growth – upscale and contemporary brands and international."

The Company's Board of Directors has declared a regular quarterly cash
dividend of $0.05 per share to all common stockholders of record as of March
1, 2013, for payment on March 15, 2013.

The Company will host a conference call with management to discuss these
results at 8:30 a.m. eastern time today, which is accessible by dialing
412-858-4600 or through a web cast at www.jonesgroupinc.com (under Investor
Relations/Conference Schedule). The call will be recorded and made available
through February 21, 2013 and may be accessed by dialing 877-344-7529
(International 412-317-0088). Enter account number 10024062. A slide
presentation will accompany the prepared remarks and has been posted with the
webcast on the Company's website.

Presentation of Information in the Press Release

Financial information discussed in this press release includes both GAAP and
non-GAAP measures, which include or exclude certain items. These non-GAAP
measures differ from reported results and are intended to illustrate what
management believes are relevant period-over-period comparisons. A complete
reconciliation of the GAAP measures presented to the comparable non-GAAP
information appears in the financial tables section of this press release.

About The Jones Group Inc.

The Jones Group Inc. (www.jonesgroupinc.com) is a leading global designer,
marketer and wholesaler of over 35 brands with product expertise in apparel,
footwear, jeanswear, jewelry and handbags. The Jones Group has a reputation
for innovation, excellence in product quality and value, operational execution
and talent. The Company also markets directly to consumers through branded
specialty retail and outlet stores, through concessions at upscale department
stores and through its e-commerce sites.

The Company's internationally recognized brands and licensing agreements (L)
include: Nine West, Jones New York, Anne Klein, Kurt Geiger, Rachel Roy (L),
Robert Rodriguez, Robbi & Nikki, Stuart Weitzman, Brian Atwood (L), Boutique
9, Easy Spirit, Carvela, Gloria Vanderbilt, l.e.i., Bandolino, Enzo Angiolini,
Nine & Co., GLO, Joan & David, Miss KG, Kasper, Energie, Evan-Picone, Le Suit,
Mootsies Tootsies, Grane, Erika, Napier, Jessica Simpson (L), Givenchy (L),
Judith Jack, Albert Nipon, Pappagallo and Rafe (L).

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:

  othose associated with the effect of national, regional and international
    economic conditions;
  olowered levels of consumer spending resulting from a general economic
    downturn or lower levels of consumer confidence;
  othe tightening of the credit markets and the Company's ability to obtain
    capital on satisfactory terms;
  ogiven the uncertain economic environment, the possible unwillingness of
    committed lenders to meet their obligations to lend to borrowers, in
    general;
  othe performance of the Company's products within the prevailing retail
    environment;
  ocustomer acceptance of both new designs and newly-introduced product
    lines;
  othe Company's reliance on a few department store groups for large portions
    of the Company's business;
  othe Company's ability to identify acquisition candidates and, in a
    competitive environment for such acquisitions, acquire such businesses on
    reasonable financial and other terms;
  othe integration of the organizations and operations of any acquired
    businesses into the Company's existing organization and operations;
  oconsolidation of the Company's retail customers;
  ofinancial difficulties encountered by the Company's customers;
  othe effects of vigorous competition in the markets in which the Company
    operates;
  othe Company's ability to attract and retain qualified executives and other
    key personnel;
  othe Company's reliance on independent foreign manufacturers, including
    political instability in countries where contractors and suppliers are
    located;
  ochanges in the costs of raw materials, labor, advertising and
    transportation, including the impact such changes may have on the pricing
    of the Company's products and the resulting impact on consumer acceptance
    of the Company's products at higher price points;
  othe Company's ability to successfully implement new operational and
    financial information systems;
  othe Company's ability to secure and protect trademarks and other
    intellectual property rights;
  othe effects of extreme or unseasonable weather conditions; and
  othe Company's ability to implement its strategic initiatives to enhance
    profitability.

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, 2011, 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.



THE JONES GROUP INC.
CONSOLIDATED OPERATING RESULTS
(UNAUDITED)
All amounts in
millions, except
per share data
                    FOURTH QUARTER                   TOTAL YEAR
                    2012             2011            2012             2011
Net sales           $     98.6   % $     98.3  % $        98.7  % $        98.6  %
                    958.3            878.1           3,750.6         3,734.0
Licensing income    13.2    1.4      15.1    1.7     46.2     1.2     50.2     1.3
Other revenues      0.4     0.0      0.4     0.0     1.3      0.0     1.1      0.0
Total revenues      971.9   100.0    893.6   100.0   3,798.1  100.0   3,785.3  100.0
Cost of goods sold  635.4   65.4     574.0   64.2    2,427.4  63.9    2,440.1  64.5
Gross profit        336.5   34.6     319.6   35.8    1,370.7  36.1    1,345.2  35.5
SG&A expenses       317.3   32.6     314.0   35.1    1,226.9  32.3    1,173.2  31.0
Trademark           21.5    2.2      31.5    3.5     21.5     0.6     31.5     0.8
impairments
Goodwill            47.6    4.9      -       -       47.6     1.3     -        -
impairment
Operating (loss)    (49.9)  (5.1)    (25.9)  (2.9)   74.7     2.0     140.5    3.7
income
Net interest
expense and         (55.8)  (5.7)    (14.5)  (1.6)   (145.1)  (3.8)   (73.3)   (1.9)
financing costs (1)
Equity in income of
unconsolidated      1.1     0.1      1.3     0.1     2.5      0.1     3.9      0.1
affiliate
(Loss) income
before (benefit)    (104.6) (10.8)   (39.1)  (4.4)   (67.9)   (1.8)   71.1     1.9
provision for
income taxes
(Benefit)
provision for       (24.5)  (2.5)    (18.2)  (2.0)   (12.9)   (0.3)   19.6     0.5
income taxes
Net (loss) income   (80.1)  (8.2)    (20.9)  (2.3)   (55.0)   (1.4)   51.5     1.4
Less: income
attributable to     0.2     0.0      0.2     0.0     1.1      0.0     0.8      0.0
noncontrolling
interests
(Loss) income       $              $             $              $   
attributable to     (80.3) (8.3)  % (21.1) (2.4) % (56.1)  (1.5) % 50.7     1.3   %
Jones
(Loss) earnings
per share (2)
     Net (loss)     $              $             $              $   
     income         (80.1)          (20.9)         (55.0)          51.5
     Less: income
     attributable
     to             0.2              0.2             1.1              0.8
     noncontrolling
     interests
     (Loss) income
     attributable   (80.3)           (21.1)          (56.1)           50.7
     to Jones
     Less: (loss)
     income
     allocated to   (2.2)            (0.7)           (1.8)            1.5
     participating
     securities
     (Loss) income
     available to   $              $             $              $   
     common         (78.1)          (20.4)         (54.3)          49.2
     stockholders
     of Jones
Shares outstanding  73.7             76.0            74.9             82.3
- diluted
(Loss) earnings     $              $             $              $   
per share -        (1.06)          (0.27)         (0.72)          0.61
diluted
Percentages may not add due to rounding.
     Refer to item "k" on the Reconciliation of Non-GAAP Measures to GAAP for
(1)  amounts impacting interest expense relating to adjustment of remaining
     consideration payable related to acquisition of Stuart Weitzman.
     Earnings per share is calculated under the "two-class method," where income or
     loss is allocated between common shares and participating securities (unvested
(2)  restricted shares held by employees that have a nonforfeitable right to
     dividends). Both our common shares and participating securities share equally
     in dividend payments and earnings.



THE JONES GROUP INC.
Reconciliation of Non-GAAP Measures to GAAP
for the quarters and years ended December 31, 2012 and 2011
(UNAUDITED)
All amounts in millions, except     FOURTH QUARTER         TOTAL YEAR
per share data
                                    2012        2011       2012       2011
Operating (loss) income               $         $        $  74.7   $  
                                      (49.9)    (25.9)               140.5
Adjustments:
Goodwill impairment (a)               47.6       -          47.6       -
Items affecting segment income:
     Trademark impairments (a)        21.5       31.5       21.5       31.5
     Expenses related to retail       0.4        2.3        1.9        5.7
     store closure plan (b)
     Charges related to acquired      2.1        2.9        5.8        (0.9)
     businesses (c)
     Other business development       0.3        0.6        1.1        6.9
     costs (d)
     Present value adjustments to
     lease liabilities for            1.5        0.5        18.6       12.9
     properties not in use (e)
     Severance and other charges
     related to executive             (0.7)      -          5.2        -
     management changes (f)
     Impairment of wholesale          5.6        -          5.6        -
     customer relationships (g)
     Gain on the sale of a            -          -          (3.1)      -
     trademark (h)
     Other restructuring expenses     2.4        3.8        17.9       8.6
     and certain other charges (i)
Total adjustments to operating        80.7       41.6       122.1      64.7
income
Adjusted operating income             $        $       $ 196.8    $  
                                      30.8       15.7                 205.2
(Loss) income attributable to         $         $        $          $   
Jones (as reported)                   (80.3)    (21.1)    (56.1)    50.7
(Benefit) provision for income        (24.5)     (18.2)     (12.9)     19.6
taxes
Adjustments to operating income,      80.7       41.6       122.1      64.7
from above
Adjustments to deferred financing     -          -          -          1.9
costs (j)
Adjustment of remaining
consideration payable related to
acquisition
     of Stuart Weitzman (k)           40.5       1.0        88.3       20.0
Adjusted income before provision      16.4       3.3        141.4      156.9
for income taxes
Adjusted provision (benefit) for      5.8        (5.0)      45.4       47.8
income taxes
Adjusted income attributable to       10.6       8.3        96.0       109.1
Jones
Less: adjusted income allocated       (0.3)      (0.3)      (2.3)      (3.5)
to participating securities
Adjusted income available to          $        $       $  93.7   $  
common stockholders of Jones          10.3        8.0                105.6
(Loss) earnings per share -           $         $        $          $   
diluted (as reported)                 (1.06)    (0.27)    (0.72)    0.61
(Benefit) provision for income        (0.32)     (0.23)     (0.17)     0.23
taxes
Goodwill impairment (a)               0.63       -          0.62       -
Items affecting segment income:
     Trademark impairments (a)        0.28       0.40       0.28       0.37
     Expenses related to retail       0.01       0.03       0.02       0.07
     store closure plan (b)
     Charges related to acquired      0.03       0.03       0.07       (0.01)
     businesses (c)
     Other business development       -          0.01       0.01       0.08
     costs (d)
     Present value adjustments to
     lease liabilities for            0.02       0.01       0.24       0.15
     properties not in use (e)
     Severance and other charges
     related to executive             (0.01)     -          0.07       -
     management changes (f)
     Impairment of wholesale          0.07       -          0.07       -
     customer relationships (g)
     Gain on the sale of a            -          -          (0.04)     -
     trademark (h)
     Other restructuring expenses     0.03       0.05       0.23       0.11
     and certain other charges (i)
Adjustments to deferred financing     -          -          -          0.02
costs (i)
Adjustment of remaining
consideration payable related to
acquisition
     of Stuart Weitzman (k)           0.54       0.01       1.15       0.24
Adjusted income before provision      0.22       0.04       1.83       1.87
for income taxes
Adjusted provision (benefit) for      0.08       (0.06)     0.59       0.57
income taxes
Adjusted earnings per share -         $        $       $  1.24   $   
diluted                               0.14       0.10                 1.30
Non-GAAP adjustments affecting
revenue by segment (l):
     Domestic wholesale               $       $       $       $   
     sportswear                         -        -    -         
                                                                       -
     Domestic wholesale jeanswear     -          0.3        -          1.9
     (i)
     Domestic wholesale footwear      0.2        -          0.3        -
     and accessories (i)
     Domestic retail                 -          -          -          -
     International wholesale          -          -          -          -
     International retail             -          -          -          -
     Licensing, other &               -          -          -          -
     eliminations
     Total                            $       $       $        $   
                                      0.2        0.3     0.3         1.9
Non-GAAP adjustments affecting
income by segment (l):
     Domestic wholesale               1.9        $       7.4        $   
     sportswear (c,e,f,i)                         2.7                 (6.2)
     Domestic wholesale jeanswear     0.3        0.8        1.8        4.2
     (i)
     Domestic wholesale footwear      1.3        0.6        23.7       16.4
     and accessories (c,e,f,i)
     Domestic retail (b,f,i)          0.4        2.7        5.0        4.1
     International wholesale          5.3        0.5        6.1        2.7
     (c,f,g)
     International retail (a,c)       1.7        1.5        6.3        3.5
     Licensing, other &               22.2       32.8       24.2       40.0
     eliminations (a,c,d,f,h,i)
     Total                            $        $       $  74.5   $   
                                      33.1       41.6                 64.7
Net cash provided by operating                              $ 112.7    $  
activities                                                             271.7
Payments of acquisition                                     94.6       5.3
consideration payable (m)
Adjusted cash provided by                                   $ 207.3    $  
operating activities                                                   277.0
     Represents the impairments recorded as a result of the required annual
(a)  review of our indefinite-lived intangible assets and goodwill in
     accordance with GAAP.
(b)  2012 and 2011 include severance, fixed asset impairment and other charges
     and credits related to the closure of underperforming retail locations.
     2012 and 2011 include the adjustments of the contingent consideration
     payable for the Robert Rodriguez acquisition. Also included are the
(c)  amortization of certain acquired intangible assets related to the
     acquisitions of Stuart Weitzman (2011 only), Kurt Geiger and Brian Atwood
     (2012 only).
     2012 and 2011 include investment consulting fees, legal fees, accounting
(d)  fees and other items related to acquisitions and other business
     development activities.
(e)  2012 and 2011 includes present value accruals and adjustments for
     liabilities related to leases on properties currently not in use.
(f)  2012 includes severance and restricted stock charges related to executive
     management changes.
     Represents a partial impairment of the acquired wholesale customer
(g)  relationship intangible asset associated with the acquisition of Kurt
     Geiger.
(h)  2012 includes the gain on the sale of the Sam & Libby trademark.
     2012 and 2011 include severance, occupancy, and other costs related to
(i)  the restructuring of corporate and business support functions and other
     charges not considered by management to be part of ongoing operations.
(j)  2011 includes the write-off of certain deferred financing fees related to
     amendment and extension of our credit facility.
     Represents the fair value adjustment in accordance with GAAP of the
(k)  remaining consideration payable related to the acquisition of Stuart
     Weitzman.
(l)  See "Segment Information" page for the presentation of GAAP and Adjusted
     amounts.
(m)  Represents the amount of acquisition consideration related to the Stuart
     Weitzman acquisition paid through operating cash flow.



THE JONES GROUP INC.
SEGMENT INFORMATION
(UNAUDITED)
Dollars in millions                      Domestic
                    Domestic   Domestic  Wholesale                                        Licensing,
                    Wholesale  Wholesale Footwear &  Domestic International International Other &
                    Sportswear Jeanswear Accessories Retail   Wholesale     Retail        Eliminations Consolidated
For the fiscal
quarter ended
December 31, 2012
     Revenues       $      $     $       $     $        $         $       $    
                    164.8     208.5    208.5       166.0 86.9         124.0        13.2        971.9
     Segment (loss) $      $     $      $     $       $       $     
     income           (7.1)   14.2   11.4              4.7          4.5          (19.1)       (2.3)
                                                     (10.9)
     Segment margin (4.3%)     6.8%      5.5%        (6.6%)   5.4%          3.6%                       (0.2%)
     Net interest                                                                                      (55.8)
     expense (a)
     Equity in
     income of                                                                                         1.1
     unconsolidated
     affiliate
     Goodwill                                                                                          (47.6)
     impairment
     Loss before                                                                                       $   
     benefit for                                                                                       (104.6)
     income taxes
     Segment        $      $     $       $     $        $         $       $    
     revenues       164.8     208.5    208.5       166.0 86.9         124.0        13.2        971.9
     Adjustments
     affecting      -          -         0.2         -        -             -             -            0.2
     segment
     revenues (b)
     Adjusted       $      $     $       $     $        $         $       $    
     segment        164.8     208.5    208.7       166.0 86.9         124.0        13.2        972.1
     revenues
     Segment (loss) $      $     $      $     $       $       $       $     
     income           (7.1)   14.2   11.4              4.7          4.5          (19.1)        (2.3)
                                                     (10.9)
     Adjustments
     affecting      1.9        0.3       1.3         0.4      5.3           1.7           22.2         33.1
     segment income
     (b)
     Adjusted       $      $     $      $     $        $       $       $     
     segment (loss)   (5.2)   14.5   12.7              10.0         6.2           3.1       30.8
     income                                          (10.5)
     Adjusted       (3.2%)     7.0%      6.1%        (6.3%)   11.5%         5.0%                       3.2%
     segment margin
For the fiscal
quarter ended
December 31, 2011
     Revenues       $      $     $       $     $        $         $       $    
                    176.8     162.1    174.7       179.3 74.2         111.4        15.1        893.6
     Segment (loss) $      $     $      $     $       $       $     
     income           (7.2)    0.8   (2.6)           5.1          4.4          (22.7)       (25.9)
                                                     (3.7)
     Segment margin (4.1%)     0.5%      (1.5%)      (2.1%)   6.9%          3.9%                       (2.9%)
     Net interest                                                                                      (14.5)
     expense (a)
     Equity in
     income of                                                                                         1.3
     unconsolidated
     affiliate
     Loss before                                                                                       $     
     benefit for                                                                                       (39.1)
     income taxes
     Segment        $      $     $       $     $        $         $       $    
     revenues       176.8     162.1    174.7       179.3 74.2         111.4        15.1        893.6
     Adjustments
     affecting      -          0.3       -           -        -             -             -            0.3
     segment
     revenues (b)
     Adjusted       $      $     $       $     $        $         $       $    
     segment        176.8     162.4    174.7       179.3 74.2         111.4        15.1        893.9
     revenues
     Segment (loss) $      $     $      $     $       $       $       $     
     income           (7.2)    0.8   (2.6)           5.1          4.4          (22.7)       (25.9)
                                                     (3.7)
     Adjustments
     affecting      2.7        0.8       0.6         2.7      0.5           1.5           32.8         41.6
     segment income
     (b)
     Adjusted       $      $     $      $     $       $       $       $     
     segment (loss)   (4.5)    1.6   (2.0)           5.6          5.9          10.1        15.7
     income                                          (1.0)
     Adjusted       (2.5%)     1.0%      (1.1%)      (0.6%)   7.5%          5.3%                       1.8%
     segment margin
(a) Refer to item "k" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest expense
     relating to adjustment of remaining consideration payable related to acquisition of Stuart Weitzman.
(b) See "Reconciliation of Non-GAAP Measures to GAAP" page.



THE JONES GROUP INC.
SEGMENT INFORMATION
(UNAUDITED)
Dollars in millions                      Domestic
                    Domestic   Domestic  Wholesale                                        Licensing,
                    Wholesale  Wholesale Footwear &  Domestic International International Other &
                    Sportswear Jeanswear Accessories Retail   Wholesale     Retail        Eliminations Consolidated
For the year ended
December 31, 2012
     Revenues       $      $     $       $     $         $         $       $   
                    782.0     746.7    919.7       584.6 330.0        388.9        46.2        3,798.1
     Segment income $      $     $      $     $        $       $     
     (loss)          38.0     53.0   57.4              33.8         5.5          (13.7)       122.3
                                                     (51.7)
     Segment margin 4.9%       7.1%      6.2%        (8.8%)   10.2%         1.4%                       3.2%
     Net interest                                                                                      (145.1)
     expense (a)
     Equity in
     income of                                                                                         2.5
     unconsolidated
     affiliate
     Goodwill                                                                                          (47.6)
     impairment
     Loss before                                                                                       $     
     benefit for                                                                                       (67.9)
     income taxes
     Segment        $      $     $       $     $         $         $       $   
     revenues       782.0     746.7    919.7       584.6 330.0        388.9        46.2        3,798.1
     Adjustments
     affecting      -          -         0.3         -        -             -             -            0.3
     segment
     revenues (b)
     Adjusted       $      $     $       $     $         $         $       $   
     segment        782.0     746.7    920.0       584.6 330.0        388.9        46.2        3,798.4
     revenues
     Segment income $      $     $      $     $        $       $       $    
     (loss)          38.0     53.0   57.4              33.8         5.5          (13.7)       122.3
                                                     (51.7)
     Adjustments
     affecting      7.4        1.8       23.7        5.0      6.1           6.3           24.2         74.5
     segment income
     (b)
     Adjusted       $      $     $      $     $        $        $       $    
     segment income  45.4     54.8   81.1              39.9         11.8         10.5        196.8
     (loss)                                          (46.7)
     Adjusted       5.8%       7.3%      8.8%        (8.0%)   12.1%         3.0%                       5.2%
     segment margin
For the year ended
December 31, 2011
     Revenues       $      $     $       $     $         $         $       $   
                    892.3     773.7    848.0       631.2 329.5        260.4        50.2        3,785.3
     Segment income $      $     $      $     $        $       $     
     (loss)          74.0     49.6   40.9              35.5         6.9          (28.5)       140.5
                                                     (37.9)
     Segment margin 8.3%       6.4%      4.8%        (6.0%)   10.8%         2.6%                       3.7%
     Net interest                                                                                      (73.3)
     expense (a)
     Equity in
     income of                                                                                         3.9
     unconsolidated
     affiliate
     Income before                                                                                     $     
     provision for                                                                                     71.1
     income taxes
     Segment        $      $     $       $     $         $         $       $   
     revenues       892.3     773.7    848.0       631.2 329.5        260.4        50.2        3,785.3
     Adjustments
     affecting      -          1.9       -           -        -             -             -            1.9
     segment
     revenues (b)
     Adjusted       $      $     $       $     $         $         $       $   
     segment        892.3     775.6    848.0       631.2 329.5        260.4        50.2        3,787.2
     revenues
     Segment income $      $     $      $     $        $       $       $    
     (loss)          74.0     49.6   40.9              35.5         6.9          (28.5)       140.5
                                                     (37.9)
     Adjustments
     affecting      (6.2)      4.2       16.4        4.1      2.7           3.5           40.0         64.7
     segment income
     (b)
     Adjusted       $      $     $      $     $        $        $       $    
     segment income  67.8     53.8   57.3              38.2         10.4         11.5        205.2
     (loss)                                          (33.8)
     Adjusted       7.6%       6.9%      6.8%        (5.4%)   11.6%         4.0%                       5.4%
     segment margin
(a) Refer to item "k" on the Reconciliation of Non-GAAP Measures to GAAP for amounts impacting interest expense
     relating to adjustment of remaining consideration payable related to acquisition of Stuart Weitzman.
(b) See "Reconciliation of Non-GAAP Measures to GAAP" page.



THE JONES GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
All amounts in millions
                                    December 31, 2012    December 31, 2011
ASSETS
Current assets:
 Cash and cash equivalents         $           $        
                                     149.6               238.8
 Accounts receivable               381.0                339.6
 Inventories                       486.7                491.1
 Prepaid income taxes              5.5                  11.9
 Deferred taxes                    33.2                 26.4
 Other current assets              40.7                 47.7
 Total current assets              1,096.7              1,155.5
Property, plant and equipment, at
cost, less
 accumulated depreciation and    278.1                271.4
amortization
Goodwill                            215.3                255.3
Other intangibles, less             869.7                897.4
accumulated amortization
Other assets                        135.7                135.7
Total assets                        $            $        
                                    2,595.5             2,715.3
LIABILITIES AND EQUITY
Current liabilities:
 Current portion of long-term      $           $        
debt and capital lease obligations     2.2               2.0
 Current portion of acquisition    30.3                 194.1
consideration payable
 Accounts payable                  257.5                236.2
 Income taxes payable              1.4                  1.4
 Accrued expenses and other        160.8                146.3
current liabilities
 Total current liabilities         452.2                580.0
Long-term debt and obligations      955.7                854.7
under capital leases
Income taxes payable                0.5                  6.7
Deferred taxes                      56.7                 73.4
Acquisition consideration payable   6.0                  17.7
Other                               118.1                93.4
Total liabilities                   1,589.2              1,625.9
Redeemable noncontrolling interest  0.6                  -
Equity                              1,005.7              1,089.4
Total liabilities and equity        $            $        
                                    2,595.5             2,715.3



THE JONES GROUP INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
All amounts in millions                         Year Ended
                                                December 31,     December 31,
                                                2012             2011
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net (loss) income                              $         $      
                                                  (55.0)           51.5
 Adjustments to reconcile net (loss) income to
 net cash provided by
    operating activities, net of acquisitions:
       Amortization of restricted stock        19.7             16.7
       Depreciation and other amortization      90.1             88.1
       Goodwill impairment losses               47.6             -
       Trademark impairment losses              21.5             31.5
       Other impairment losses                  6.7              10.6
       Adjustments to acquisition               84.4             11.9
       consideration payable
       Equity in income of unconsolidated       (2.5)            (3.9)
       affiliate
       Deferred taxes                           (26.4)           17.9
       Other items, net                         (1.9)            11.4
       Changes in operating assets and
       liabilities:
             Accounts receivable                (29.4)           22.3
             Inventories                        7.6              25.7
             Accounts payable                   18.2             (5.7)
             Income taxes payable/prepaid       (0.4)            7.2
             taxes
             Acquisition consideration payable  (94.6)           (5.3)
             Other assets and liabilities, net  27.1             (8.2)
             Total adjustments                  167.7            220.2
 Net cash provided by operating activities      112.7            271.7
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures                           (76.5)           (98.0)
 Acquisition of Brian Atwood, net of cash       (4.4)            -
 acquired
 Contingent consideration paid related to       (3.5)            -
 investment in GRI Group Limited
 Acquisition of KG Group Holdings Limited, net  -                (143.1)
 of cash acquired
 Payments related to acquisition of Moda        -                (2.5)
 Nicola International, LLC
 Other                                          4.9              0.1
 Net cash used in investing activities          (79.5)           (243.5)
CASH FLOWS FROM FINANCING ACTIVITIES:
 Issuance of 6.875% Senior Notes due 2019       103.5            300.0
 Debt issuance costs                            (2.6)            (6.6)
 Costs related to secured revolving credit      (0.3)            (3.3)
 agreement
 Repayment of acquired debt of KG Group         -                (174.1)
 Holdings Limited
 Repurchase of common shares                    (44.0)           (78.0)
 Dividends paid                                 (15.5)           (16.6)
 Payments of acquisition consideration payable  (163.9)          (10.1)
 Other                                          (0.7)            (0.9)
 Net cash (used in) provided by financing       (123.5)          10.4
 activities
EFFECT OF EXCHANGE RATES ON CASH                1.1              (0.6)
NET (DECREASE) INCREASE IN CASH AND CASH        (89.2)           38.0
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING            238.8            200.8
CASH AND CASH EQUIVALENTS, ENDING               $         $      
                                                  149.6           238.8



SOURCE The Jones Group Inc.

Website: http://www.jonesapparel.com
Contact: Investors: John T. McClain, Chief Financial Officer, The Jones Group,
+1-212-703-9189; or Media: Joele Frank and Sharon Stern, both of Joele Frank,
Wilkinson Brimmer Katcher, +1-212-355-4449
 
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