Jones Apparel Group

Jones Apparel Group is one of the publicly traded companies having a good stock performance result. Jones Apparel Group is a fortune 500 stock listed company trading under JNY.

Jones Apparel Group, Inc.reported results for the fourth quarter and full year 2005. Since the fourth quarter of 2004 revenues are increased from 1,082.9 million dollars to 1,221.0 million. 

 

Earnings per share were 0.48 dollars for the fourth quarter of 2005, as compared to 0.28 dollars for the fourth quarter of 2004. Earnings per share were 2.30 dollars for the full year 2005, as compared to 2.39 dollars for the full year 2004. Excluding the impact of expenses related to the Company's restructuring and strategic operating initiatives, earnings per share were 0.51 dollars and 2.48 dollars for the fourth quarter and full year 2005, respectively. These results included a 5.7 dollars million reversal of income tax accruals resulting from the favorable resolution of various foreign and state income tax audits.

Inventory levels of the company at December 31, 2005 were 650.0 million dollars, compared to 664.2 million dollars at December 31, 2004. The company generated full year operating cash flow of 427.4 million dollars and debt to total capitalization ratio at December 31, 2005 was 30.1 percent. As of December 31, the company had 129.5 million dollars of short-term borrowings and 273.4 dollars million of outstanding letters of credit against 1.75 dollars billion of committed bank lines, allowing it continued significant financial flexibility.

During the quarter, Jones Apparel Group repurchased common stock totaling 35.9 million dollars or 1.25 million shares, resulting in 2005 full year common stock repurchases of 235.2 million dollars or 7.6 million shares. At December 31, 2005, 56.2 million dollars remained available for repurchase under previous authorizations by the Company's Board of Directors. On February 14, 2005, the Board authorized an additional 250 million dollars for future stock repurchases.

Growth strategy for 2006 and beyond is to continue company’s strategic partnership with their wholesale customers. Further, the company will continue to explore their own vertical retail opportunities through Barney’s flagship and co-op concept stores, as well as their own footwear and ready to wear stores. It is also planning to continue opening store locations under new concepts, such as Anne Klein, and to introduce accessories store locations during 2006.

Jones Apparel Group will get their targeted success and future growth in future which is definitely beneficial to their customers.