The Jones Group Inc. reported fourth-quarter 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. 

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’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).