Jones Apparel Group, Inc. (NYSE: JNY) today reported results for the fourth quarter and year ended December 31, 2009. Revenues for the fourth quarter of 2009 were $777 million, as compared with $847 million for the fourth quarter of 2008. Revenues for the full year 2009 were $3,327 million, as compared with $3,616 million for the full year 2008. The fourth quarter decrease in revenues of 8% was as anticipated and reflective of the overall economic conditions that continue to affect retail sales in general. Gross profit margin increased 480 basis points to 34.3% for the fourth quarter, reflecting the benefits of careful inventory management.

The Company reported adjusted earnings per share from continuing operations ("EPS") of $0.11 for the fourth quarter of 2009, as compared with adjusted earnings per share of ($0.04) for the same period last year. The 2009 and 2008 fourth quarter adjusted results exclude charges related to the impairments of goodwill and trademarks in our retail, jeanswear and footwear and accessories businesses, the impact of severance and other costs related to restructuring activities initiated across the Company, and certain other costs. Adjusted earnings per share from continuing operations on a full year basis were $1.14 in 2009 versus $0.87 per share in the prior year (see reconciliation of adjusted earnings to reported earnings in the accompanying schedule).

As reported under generally accepted accounting principles ("GAAP"), the Company reported a loss of ($1.53) per share from continuing operations for the fourth quarter of 2009, as compared with a loss of ($9.86) for the same period last year. The 2009 results include non-cash impairment charges of approximately $150 million ($138 million after tax) for certain goodwill and trademarks within our Retail and Wholesale Jeanswear and Wholesale Footwear and Accessories businesses, while the 2008 results include non-cash impairment charges of approximately $838 million ($810 million after tax) for certain goodwill and trademarks within our Wholesale Footwear and Accessories business. Such charges were a result of the Company's required annual testing under GAAP. The fourth quarter results also include severance and other costs related to restructuring activities initiated across the Company, and certain other charges totaling $4 million ($2 million after tax) and $13 million ($9 million after tax) in 2009 and 2008, respectively.

Wesley R. Card, Jones Apparel Group Chief Executive Officer, stated: "We are encouraged by the strength of our brands and retail partnerships as we look ahead to 2010. We have focused on revitalizing our core brands and organizational structure and have enhanced our product offerings by acquiring new brands and developing new partnerships. We also streamlined our supply chain and distribution networks and closed marginally profitable businesses. Our retail improvement plan is showing positive results. We have already closed approximately 100 retail locations, with an additional 165 locations to close in 2010. Today, we are a leading department store resource, and we continue to explore new opportunities to offer consumers quality products at the right price points."

Mr. Card continued: "Our fourth quarter results were reflective of today's macroeconomic situation, which was marked by both low consumer confidence and spending levels. We are encouraged by our improved operating margins and the performance of our Retail business, which was profitable in the quarter and posted an increase in comparable store sales of 2.0%."

Cash provided by continuing operating activities during 2009 was $349 million, an improvement of $173 million when compared with 2008. The improvement in cash flow was largely driven by inventory control, lower working capital requirements and the timing of certain cash receipts and payments. The Company has no amounts drawn under its $650 million of committed revolving credit facilities.

John T. McClain, Jones Apparel Group Chief Financial Officer, commented: "Our financial position continues to be strong, ending the quarter with $333 million in cash, and our revolver remains undrawn. During the year, we repaid $250 million in long term debt, and our total debt balance is now $529 million. Aggressive management of inventories and expenses helped conserve cash and improve margins. We will maintain the same approach toward spending as we manage throughout 2010."

Mr. Card concluded: "For 2010, we are encouraged by trends in the retail market as supply and demand have come into balance. Additionally, we believe that our retail partners will be able to more accurately plan for the future as market visibility increases. As always, we will continue to take the necessary actions to achieve improved performance, increase our market share and enhance shareholder value."

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 February 26, 2010, for payment on March 12, 2010.

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.jonesapparel.com (under Investor Relations/Conference Schedule). The call will be recorded and made available through February 17, 2010 and may be accessed by dialing 877-344-7529. Enter account number 437170. A slide presentation will accompany the prepared remarks and has been posted with the webcast on the Company's website.

Presentation of Financial Information

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 reported GAAP results to the comparable non-GAAP information appears in the financial tables section of this press release.

About Jones Apparel Group, Inc.

Jones Apparel Group, Inc. is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company also markets directly to consumers through its chain of specialty retail and value-based stores and through its e-commerce web sites. The Company's nationally recognized brands include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo Angiolini, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Albert Nipon and Le Suit. The Company also markets costume jewelry under the Givenchy brand licensed from Givenchy Corporation, women's footwear under the Dockers(R) and Dockers(R) Women brands and infants', toddlers' and boys' footwear (excluding girls' footwear) under the Dockers(R) and Dockers(R) Premium brands, licensed from Levi Strauss & Co., apparel and accessories under the Rachel Roy brand licensed from Rachel Roy IP Company, LLC, and Jessica Simpson jeanswear licensed from VCJS, LLC. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. The Company contracts for the manufacture of its products through a worldwide network of quality manufacturers. The Company has capitalized on its nationally known brand names by entering into various licenses for several of its trademarks, including Jones New York, Anne Klein New York, Nine West, Gloria Vanderbilt, l.e.i. and Evan-Picone, with select manufacturers of women's and men's products which the Company does not manufacture. For more than 30 years, the Company has built a reputation for excellence in product quality and value, and in operational execution.