les show all entries as a percentage of total revenue for the year which can alert the reader to differences much quicker than raw dollar amount data. For year ended 1998, Liz Claiborne posted much higher total revenues than Jones Apparel Group, an $ 850 million difference. While Lizs gross profit exceeded that of Jones by almost 5 percent, due to high expenses and restructuring, Liz Claibornes operating income was about 5 percent less than Jones Apparel Groups: 10.17 percent to 15.54 percent respectively. After taxes were considered, Jones recognized a higher percentage of net income than did Liz: 9.19 percent to 6.68 percent respectively.The biggest factor for Liz Claiborne in the year ended 1998 (1/2/99) was a fourth quarter restructuring charge in its wholesale operations. The charge would be used to cover the costs of closing 30 stores and cutting 400 jobs. (DNR, 2/24/99). The charge caused fourth quarter earnings to drop 36.5 percent. Sweeping markdowns did not help Lizs bottom line either. For the year, however, earnings fell only one percent, held at bay by price control. Id. Acquisition of an ownership interest in Segrets, Inc., a licensing agreement with Randa Corporation for Claiborne Neckwear, regular quarterly cash dividends paid, and a purchase of $22 million in common stock as part of a repurchase program occurred during the year. (PR Newswire, 2/22/99). Jones Apparel Group reported a net income increase of 27 percent and a total revenue increase of 21 percent over 1997. (PR Newswire, 2/10/99). The company held stronger shipping in its Lifestyle Collection category, and better Polo Jeans Co. sales boosted revenues. The company sees its portfolio expansion into strong brand names and focusing product lines to different consumer segments as catalysts to its growth. Id. Jones also reported a pleasant change in career sportswear sales led to better numbers. Id. The income statements of Jones Apparel...
