larger sizes and younger consumers, as well as a move toward jeanswear added industry depth to Jones Apparel Groups product lines. Id. What a difference a year can make. As these income statements show, numbers speak louder than words. For the second time, both companys total revenues have increased, but Jones Apparel Group is the standout. Revenues increased almost $ 1 billion dollars at Jones to $ 4.12 billion, a second year of remarkable increases. Liz broke the $ 3 billion dollar revenue mark that the company flirted with in 1999. Jones posted a higher gross profit and a markedly higher operating income thanks to another restructuring charge incurred by Liz Claiborne, the second of its type in three years. Jones showed a higher net income than did Liz Claiborne both as a percentage (7.29 percent compared to 5.94 percent) and as a dollar amount ($ 301 million compared to $ 184 million).Once again restructuring charges also hurt Liz Claibornes bottom line. The pre-tax $ 21 million charge was due to store closures, staff lay-offs, consolidation of real estate, and asset write-offs. (PR Newswire, 2/22/01). To offset some of the restructuring costs, Liz received nearly $ 9 million in income from a special investment. Id. The repurchase of $ 248 million shares of common stock was also cited as an attribute of the companys growth. The company opined that the numbers were even more satisfying considering the condition of the economy and the ever-changing retail sector. The company feels its continued diversification strategy is responsible for its increased growth in the industry. Id.Just as Liz Claiborne, Jones Apparel Group prefaced much of their comments with concern over the uncertainty in the economy, specifically the retail sector. (PR Newswire, 2/7/01) The Nine West Group acquisition has been a favorable one for Jones, giving them added market share in the better footwear market. Nine Wests expansion into t...
