Press Release

Jones Apparel Group and 7thOnline Find Success in a Visionary Assortment Planning Approach

New York, New York - November 1, 2005 - Jones Apparel Group, Inc. (NYSE: JNY) and 7thOnline, Inc., have successfully implemented a merchandising system to streamline the assortment planning processes for multiple divisions. The two companies began these collaborative efforts two years ago with a goal to drive sales and reduce costs through a more proactive and efficient assortment planning process. These initiatives have resulted in better matching of inventory to retailer demand, higher fill rates, additional revenue opportunities realized, and significantly reduced administrative costs and errors associated with the order management process. Given these positive results, Jones Apparel Group has expanded its usage of 7thOnline to additional product lines, including Anne Klein, Jones Collection, Jones Sport, and Polo Jeans.

Peter Boneparth, Chief Executive Officer, Jones Apparel Group, Inc., stated, "7thOnline's solutions effectively meet our infrastructure initiatives to increase profitability through superior operational execution, and our strategic visions are aligned in terms of technology direction. We believe that the assortment planning approach we have deployed will help us to deliver optimal store assortments and to attract and retain the consumer."

Jones Apparel Group utilizes 7thOnline's web-architected assortment planning solutions to develop and analyze visual and quantitative merchandise assortments. The platform enables users to share real-time plan information at any time, both internally with colleagues and externally with trading partners. Management benefits from a single access point for real-time plan information, from the widest organizational roll-up down to individual account activity, to drive better assortments and additional business. The system enables users to instantaneously aggregate production vs. demand data at any time prior to, during, and after market, which directs better selling and inventory decisions. Additionally, the administrative work of the Company's Account Executives is greatly reduced, enabling them to focus on customers and on product.

Paul Lanham, Chief Technology Officer, Jones Apparel Group, Inc., commented, "7thOnline has positively impacted assortment planning processes by streamlining operations, thereby providing more timely decision-making. With the visibility provided by 7thOnline's system, Jones Apparel Group users are able to identify business opportunities and challenges much earlier than was previously possible, allowing the team to react in an actionable timeframe. The end results are improved inventory management and better service to our retail customers."

Louise Chazen, President, 7thOnline, stated, "We are very pleased with the evolution of our partnership with Jones Apparel Group. Jones is a visionary leader in the industry, and our joint technology initiatives are taking assortment planning processes to a new level of accuracy, efficiency, and profitability."

About Jones Apparel Group, Inc. -- Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 company, is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. We also market directly to consumers through our chain of specialty retail and value-based stores, and operate the Barneys New York chain of luxury stores. Our nationally recognized brands include Jones New York, Evan-Picone, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Kasper, Anne Klein, Albert Nipon, Le Suit and Barneys New York. The Company also markets apparel under the Polo Jeans Company brand licensed from Polo Ralph Lauren Corporation, costume jewelry under the Tommy Hilfiger brand licensed from Tommy Hilfiger Licensing, Inc. and the Givenchy brand licensed from Givenchy Corporation and footwear under the Dockers Women brand licensed from Levi Strauss & Co. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. We primarily contract for the manufacture of our products through a worldwide network of quality manufacturers. We have capitalized on our nationally known brand names by entering into various licenses for several of our trademarks, including Jones New York, Evan-Picone, Anne Klein New York, Nine West, Gloria Vanderbilt and l.e.i., with select manufacturers of women's and men's products which we do not manufacture. For more than 30 years, we have built a reputation for excellence in product quality and value, and in operational execution.

Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding the Company's expected financial position, business and financing plans are forward-looking statements. The words "believes," "expects," "plans," "intends," "anticipates" and similar expressions identify forward-looking statements. Forward-looking statements also include representations of the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including:

  • those associated with the effect of national and regional economic conditions;
  • lowered levels of consumer spending resulting from a general economic downturn or lower levels of consumer confidence or generally reduced shopping activity caused by public safety concerns;
  • the performance of the Company's products within the prevailing retail environment;
  • customer acceptance of both new designs and newly-introduced product lines;
  • the Company's reliance on a few department store groups for large portions of the Company's business;
  • consolidation of the Company's retail customers;
  • financial difficulties encountered by customers;
  • the effects of vigorous competition in the markets in which the Company operates;
  • the Company's ability to identify acquisition candidates and acquire such businesses on reasonable financial and other terms, in an increasingly competitive environment for such acquisitions;
  • the integration of the organizations and operations of any acquired businesses into the Company's existing organization and operations;
  • the Company's reliance on independent foreign manufacturers;
  • changes in the costs of raw materials, labor and advertising;
  • the general inability to obtain higher wholesale prices for the Company's products that the Company has experienced for many years;
  • the uncertainties of sourcing associated with the new environment in which quota has been eliminated on apparel products while political pressure is building for the re-imposition of quotas in certain categories; and
  • the Company's ability to secure and protect trademarks and other intellectual property rights.


A further description of these risks and uncertainties and other important factors that could cause actual results to differ materially from the Company's expectations can be found in the Company's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2004, including, but not limited to, the Statement Regarding Forward-Looking Disclosure and the information concerning trends and risk factors included in Management's Discussion and Analysis of Financial Condition and Results of Operations therein, and in the Company's other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

About 7thOnline -- 7thOnline provides comprehensive inventory and assortment planning solutions specifically targeted to the unique planning, buying and ordering processes of the global apparel, footwear, and accessories community. 7thOnline's web-centric solution suite encompasses visual and quantitative merchandising and assortment planning tools, powerful analytical and optimization engines, and automatic order transmission capabilities in multiple formats. 7thOnline's collaborative capabilities enable real-time sharing of key business information, both internally between colleagues and externally with trading partners, resulting in better-matched supply and demand. Customer results include higher sell-thru and lower markdowns through better assortments at the door level, better inventory matching due to earlier supply/demand visibility, shorter cycle times due to the streamlined process, and reduced operational costs resulting from significantly reduced administrative tasks and error rates.


   Contact Us
Corporate Headquarters:
24 W 40th Street, 11th Floor
New York NY 10018
Tel:  800.775.7571
        212.997.1717
Fax: 212.997.1133
sales@7thonline.com
support@7thonline.com
info@7thonline.com
Contact Detail