Jones Lang LaSalle


Jones Apparel considering buyout
By Jennifer Waters, MarketWatch
Last Update: 12:04 PM ET Mar 21, 2006

CHICAGO (MarketWatch) -- Jones Apparel Group Inc., the parent of such ubiquitous designer brands ranging from Gloria Vanderbilt to Barneys New York, said Tuesday that it is considering putting itself on the block.

The Bristol, Pa.-based retail group said, however, that it has no plans to get rid of any of its various businesses or divisions.

Jones Apparel shares surged more than 15% to a 52-week high of $35.50.

In a brief statement, Jones Apparel said there can be no assurance that a sale will occur. Also, the company said it has no intention of disclosing any other information until the board either approves a sale or decides it won't sell the group.

Jones Apparel has had a string of disappointing earnings performances in recent quarters, prompting it to reorganize its operations. The company -- which was formed over more than three decades of acquiring individual brands and licenses of apparel, footwear and accessories -- has seen profits shrink the last two years, and analysts expect this year's results to fall as well, according to Thomson First Call. However, they are forecasting an increase in income in fiscal 2007.

Last year, the company reported earnings of $274.3 million on sales of $5.07 billion.
Last week, Women's Wear Daily, the retail trade magazine, reported that Jones Apparel was considering a sale of its Nine West shoe division.