10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 2, 2011

OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 1-10746

THE JONES GROUP INC.
(Exact name of registrant as specified in its charter)

Pennsylvania (State or other jurisdiction of incorporation or organization)	06-0935166 (I.R.S. Employer Identification No.)
1411 Broadway New York, New York (Address of principal executive offices)	10018 (Zip Code)

(212) 642-3860
(Registrant's telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [X] Accelerated filer [   ] Non-accelerated filer [   ] Smaller reporting company [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [   ] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class of Common Stock
$.01 par value Outstanding at July 28, 2011
85,946,646

THE JONES GROUP INC.

Index		Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
	Consolidated Balance Sheets     July 2, 2011, July 3, 2010 and December 31, 2010	3
	Consolidated Statements of Operations     Fiscal Quarters and Six Months ended July 2, 2011 and July 3, 2010	4
	Consolidated Statements of Changes in Equity     Fiscal Six Months ended July 2, 2011 and July 3, 2010	5
	Consolidated Statements of Cash Flows     Fiscal Six Months ended July 2, 2011 and July 3, 2010	6
	Notes to Consolidated Financial Statements	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		28
Item 3. Quantitative and Qualitative Disclosures About Market Risk		39
Item 4. Controls and Procedures		41
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		41
Item 2. Issuer Purchases of Equity Securities		41
Item 5. Other Information		42
Item 6. Exhibits		42
Signatures		43
Exhibit Index		44

DEFINITIONS

        As used in this Report, unless the context requires otherwise, "Jones," "our," "us" and "we" means The Jones Group Inc. and consolidated subsidiaries, "GRI" means GRI Group Limited, "FASB" means the Financial Accounting Standards Board, "ASC" means the "FASB Accounting Standards Codification^TM", "ASU" means "Accounting Standards Update" and "SEC" means the United States Securities and Exchange Commission.       

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

The Jones Group Inc. 
Consolidated Balance Sheets
(All amounts in millions, except per share data)
  

			July 2, 2011			July 3, 2010			December 31, 2010
ASSETS			(Unaudited	)		(Unaudited	)
CURRENT ASSETS:
	Cash and cash equivalents	$	146.4		$	133.2		$	200.8
	Accounts receivable		378.3			380.7			345.6
	Inventories, primarily finished goods		523.2			414.9			465.9
	Prepaid and refundable income taxes		11.5			9.0			18.7
	Deferred taxes		26.2			25.9			28.0
	Prepaid expenses and other current assets		44.3			33.3			32.1
	TOTAL CURRENT ASSETS		1,129.9			997.0			1,091.1
PROPERTY, PLANT AND EQUIPMENT, at cost, less accumulated depreciation and amortization of $579.6, $549.2 and $553.1			270.2			241.4			226.4
GOODWILL			258.9			161.8			161.8
OTHER INTANGIBLES, at cost, less accumulated amortization			947.3			778.3			726.7
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATE			43.6			40.1			40.2
OTHER ASSETS			109.1			89.3			86.2
	TOTAL ASSETS	$	2,759.0		$	2,307.9		$	2,332.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
	Current portion of long-term debt and capital lease obligations	$	1.9		$	2.2		$	1.8
	Current portion of acquisition consideration payable		23.0			10.3			14.1
	Accounts payable		230.2			200.6			213.4
	Income taxes payable		0.4			0.2			-
	Accrued employee compensation and benefits		39.2			40.5			49.3
	Accrued expenses and other current liabilities		103.3			75.7			93.1
	TOTAL CURRENT LIABILITIES		398.0			329.5			371.7
NONCURRENT LIABILITIES:
	Long-term debt		825.4			503.8			509.9
	Obligations under capital leases		24.3			26.0			25.2
	Deferred taxes		74.9			2.7			0.3
	Income taxes payable		8.7			9.2			6.3
	Acquisition consideration payable		206.7			196.2			201.3
	Other noncurrent liabilities		79.1			79.4			79.4
	TOTAL NONCURRENT LIABILITIES		1,219.1			817.3			822.4
	TOTAL LIABILITIES		1,617.1			1,146.8			1,194.1
COMMITMENTS AND CONTINGENCIES			-			-			-
EQUITY:
	Preferred stock, $.01 par value - shares authorized 1.0;  none issued		-			-			-
	Common stock, $.01 par value - shares authorized 200.0; issued 85.9, 158.5 and 86.4		0.9			1.6			0.9
	Additional paid-in capital		539.4			1,372.7			541.9
	Retained earnings		611.3			1,620.5			603.8
	Accumulated other comprehensive loss		(9.9	)		(7.5	)		(8.4	)
	Treasury stock, 71.4 shares at July 3, 2010, at cost		-			(1,826.3	)		-
	TOTAL JONES STOCKHOLDERS' EQUITY		1,141.7			1,161.0			1,138.2
	Noncontrolling interest		0.2			0.1			0.1
	TOTAL EQUITY		1,141.9			1,161.1			1,138.3
	TOTAL LIABILITIES AND EQUITY	$	2,759.0		$	2,307.9		$	2,332.4

See accompanying notes to consolidated financial statements

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The Jones Group Inc. 
Consolidated Statements of Operations (Unaudited) 
(All amounts in millions, except per share data) 

	Fiscal Quarter Ended				Fiscal Six Months Ended
		July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Net sales	$	876.7	$	849.0	$	1,825.7	$	1,725.2
Licensing income		10.4		10.3		22.5		21.3
Other revenues		0.3		0.3		0.5		0.4
Total revenues		887.4		859.6		1,848.7		1,746.9
Cost of goods sold		564.3		542.4		1,194.9		1,103.5
Gross profit		323.1		317.2		653.8		643.4
Selling, general and administrative expenses		278.2		261.9		547.7		511.8
Operating income		44.9		55.3		106.1		131.6
Interest income		0.3		0.4		0.4		0.8
Interest expense and financing costs		37.3		14.7		58.6		27.1
Equity in income (loss) of unconsolidated affiliate		0.7		-		2.0		(1.8	)
Income before provision for income taxes		8.6		41.0		49.9		103.5
Provision for income taxes		3.2		15.2		18.7		38.3
Net income		5.4		25.8		31.2		65.2
Less: income attributable to noncontrolling interest		0.2		0.1		0.4		0.3
Income attributable to Jones	$	5.2	$	25.7	$	30.8	$	64.9
Earnings per common share attributable to Jones
Basic	$	0.06	$	0.30	$	0.37	$	0.75
Diluted		0.06		0.30		0.36		0.75
Weighted average shares outstanding
Basic		81.7		82.2		81.9		82.1
Diluted		83.2		82.7		83.3		82.6
Dividends declared per share	$	0.05	$	0.05	$	0.10	$	0.10

See accompanying notes to consolidated financial statements

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The Jones Group Inc. 
Consolidated Statements of Changes in Equity (Unaudited)
(All amounts in millions, except per share data)

		Number of common shares outstanding			Total equity			Common stock		Additional paid-in capital			Retained earnings			Accumulated other comprehensive loss			Treasury stock			Non-controlling interest
Balance, January 1, 2010		85.4		$	1,092.5		$	1.6	$	1,360.3		$	1,564.4		$	(7.6	)	$	(1,826.3	)	$	0.1
Fiscal six months ended July 3, 2010:
Comprehensive income:
	Net income	-			65.2			-		-			64.9			-			-			0.3
	Change in fair value of cash flow hedges	-			0.1			-		-			-			0.1			-			-
	Reclassification adjustment for hedge gains and losses included in net income	-			0.2			-		-			-			0.2			-			-
	Foreign currency translation adjustments	-			(0.2	)		-		-			-			(0.2	)		-			-
	Total comprehensive income				65.3
Issuance of restricted stock to employees, net of forfeitures		1.7			-			-		-			-			-			-			-
Exercise of employee stock options		-			0.6			-		0.6			-			-			-			-
Amortization expense in connection with employee stock options and restricted stock		-			13.7			-		13.7			-			-			-			-
Distributions to noncontrolling interest		-			(0.3	)		-		-			-			-			-			(0.3	)
Tax effects from vesting of restricted stock and exercise of employee stock options		-			(1.5	)		-		(1.5	)		-			-			-			-
Tax effects of expired employee stock options		-			(0.4	)		-		(0.4	)		-			-			-			-
Dividends on common stock ($0.10 per share)		-			(8.8	)		-		-			(8.8	)		-			-			-
Balance, July 3, 2010		87.1		$	1,161.1		$	1.6	$	1,372.7		$	1,620.5		$	(7.5	)	$	(1,826.3	)	$	0.1
Balance, January 1, 2011		86.4		$	1,138.3		$	0.9	$	541.9		$	603.8		$	(8.4	)	$	-		$	0.1
Fiscal six months ended July 2, 2011:
Comprehensive income:
	Net income	-			31.2			-		-			30.8			-			-			0.4
	Change in fair value of cash flow hedges, net of $0.2 tax benefit	-			(0.4	)		-		-			-			(0.4	)		-			-
	Reclassification adjustment for hedge gains and losses included in net income, net of $0.2 tax benefit	-			0.3			-		-			-			0.3			-			-
	Foreign currency translation adjustments	-			(1.4	)		-		-			-			(1.4	)		-			-
	Total comprehensive income				29.7
Issuance of restricted stock to employees, net of forfeitures		1.7						-		-			-			-			-			-
Amortization expense in connection with restricted stock		-			11.1			-		11.1			-			-			-			-
Distributions to noncontrolling interest		-			(0.3	)		-		-			-			-			-			(0.3	)
Tax effects from vesting of restricted stock		-			0.9			-		0.9			-			-			-			-
Tax effects of expired employee stock options		-			(1.2	)		-		(1.2	)		-			-			-			-
Treasury stock acquired		(2.2	)		(28.0	)		-		(13.3	)		(14.7	)		-			-			-
Dividends on common stock ($0.10 per share)		-			(8.7	)		-		-			(8.7	)		-			-			-
Other		-			0.1			-		-			0.1			-			-			-
Balance, July 2, 2011		85.9		$	1,141.9		$	0.9	$	539.4		$	611.3		$	(9.9	)	$	-		$	0.2

See accompanying notes to consolidated financial statements

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The Jones Group Inc. 
Consolidated Statements of Cash Flows (Unaudited) 
(All amounts in millions)
  

			Fiscal Six Months Ended
				July 2, 2011			July 3, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	31.2		$	65.2
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
	Amortization of employee stock options and restricted stock			11.1			13.7
	Depreciation and other amortization			38.5			44.2
	Impairment losses on property, plant and equipment			2.9			2.1
	Adjustments to acquisition consideration payable			25.3			5.2
	Equity in (income) loss of unconsolidated affiliate			(2.0	)		1.8
	Provision for (recovery of) losses on accounts receivable			0.3			(0.3	)
	Deferred taxes			13.5			8.2
	Fair value adjustments related to interest rate swaps and cap			1.9			2.6
	Write-off of deferred financing fees			1.9			-
	Other items, net			2.9			0.2
	Changes in operating assets and liabilities:
		Accounts receivable		(12.4	)		(55.5	)
		Inventories		(2.8	)		(20.0	)
		Prepaid expenses and other current assets		(5.0	)		(5.8	)
		Other assets		(4.4	)		(16.9	)
		Accounts payable		(13.3	)		12.1
		Income taxes payable/prepaid income taxes		9.9			(8.2	)
		Accrued expenses and other current liabilities		(29.2	)		(16.1	)
		Acquisition consideration payable		(4.8	)		-
		Other liabilities		0.1			(6.5	)
		Total adjustments		34.4			(39.2	)
	Net cash provided by operating activities			65.6			26.0
CASH FLOWS FROM INVESTING ACTIVITIES:
	Capital expenditures			(49.5	)		(16.3	)
	Acquisition of KG Group Holdings Limited, net of cash acquired			(143.1	)		-
	Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired			-			(159.3	)
	Acquisition of Moda Nicola International, LLC			-			(14.4	)
	Other			-			0.1
	Net cash used in investing activities			(192.6	)		(189.9	)
CASH FLOWS FROM FINANCING ACTIVITIES:
	Issuance of 6.875% Senior Notes due 2019			300.0			-
	Debt issuance costs			(6.8	)		-
	Costs related to secured revolving credit agreement			(2.9	)		(7.2	)
	Cash distributions to selling members of Stuart Weitzman, LLC			-			(19.0	)
	Repayment of acquired debt of KG Group Holdings Limited			(174.1	)		-
	Dividends paid			(8.5	)		(8.6	)
	Acquisition of treasury stock			(28.0	)		-
	Payments of acquisition consideration payable			(6.2	)		(0.7	)
	Other items, net			0.3			(1.1	)
	Net cash provided by (used in) financing activities			73.8			(36.6	)
EFFECT OF EXCHANGE RATES ON CASH				(1.2	)		0.3
NET DECREASE IN CASH AND CASH EQUIVALENTS				(54.4	)		(200.2	)
CASH AND CASH EQUIVALENTS, BEGINNING				200.8			333.4
CASH AND CASH EQUIVALENTS, ENDING			$	146.4		$	133.2

See accompanying notes to consolidated financial statements

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THE JONES GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

BASIS OF PRESENTATION

        The consolidated financial statements include the accounts of The Jones Group Inc. and its subsidiaries. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the requirements of Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the footnotes thereto included within our Annual Report on Form 10-K.

        In our opinion, the information presented reflects all adjustments necessary for a fair statement of interim results. All such adjustments are of a normal and recurring nature. The foregoing interim results are not necessarily indicative of the results of operations for the full year ending December 31, 2011.

        Distribution costs. Our cost of sales may not be comparable to those of other entities, since some entities include all of the costs associated with their distribution functions in cost of sales while we include these costs in selling, general and administrative ("SG&A") expenses. Distribution costs included in SG&A expenses for the fiscal quarters ended July 2, 2011 and July 3, 2010 were $21.9 million and $26.8 million, respectively. Distribution costs included in SG&A expenses for the fiscal six months ended July 2, 2011 and July 3, 2010 were $47.0 million and $52.2 million, respectively.

EARNINGS PER SHARE

        The computation of basic and diluted earnings per share is as follows:  

(In millions, except per share amounts)	Fiscal Quarter Ended						Fiscal Six Months Ended
		July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Net income	$	5.4		$	25.8		$	31.2		$	65.2
Less: income attributable to noncontrolling interest		(0.2	)		(0.1	)		(0.4	)		(0.3	)
Income attributable to Jones		5.2			25.7			30.8			64.9
Less: income allocated to participating securities		(0.2	)		(1.2	)		(0.8	)		(3.0	)
Income available to common stockholders of Jones	$	5.0		$	24.5		$	30.0		$	61.9
Weighted average shares outstanding - basic		81.7			82.2			81.9			82.1
Effect of dilutive employee stock options and restricted stock		1.5			0.5			1.4			0.5
Weighted average shares outstanding - diluted		83.2			82.7			83.3			82.6
Earnings per common share attributable to Jones
Basic	$	0.06		$	0.30		$	0.37		$	0.75
Diluted		0.06			0.30			0.36			0.75

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ACQUISITIONS

Moda Nicola International, LLC

On February 4, 2010, we acquired 100% of the membership interests in Moda Nicola International, LLC ("Moda"), a privately-held designer, marketer and wholesaler of women's contemporary eveningwear and sportswear, and owner of the Robert Rodriguez Collection, for $35.7 million. Under the terms of the agreement, we made cash payments of $14.4 million to the selling members of Moda. We deferred $2.5 million of the purchase price, with payment subject to an indemnification holding period as set forth in the acquisition agreement. The selling members of Moda are also entitled to receive future cash payments upon achievement of certain financial targets set within the agreement for the years 2011 through 2014. At the acquisition date, we recorded an acquisition consideration liability for $18.8 million, based on projected revenues and gross margins of the acquired business and a discount factor based on an estimated weighted average cost of capital. Adjustments to this liability are recorded as an SG&A expense in our domestic wholesale sportswear segment. At July 2, 2011, the liability was $16.4 million, with $(6.5) million and $5.1 million recorded as SG&A expenses during the fiscal six months ended July 2, 2011 and July 3, 2010, respectively.

        We pursued the acquisition of Moda to increase our presence in the contemporary apparel market and to further develop a business portfolio with significant growth opportunities. Moda is reported as part of our domestic wholesale sportswear segment.

        The following table summarizes the fair values of the assets acquired and liabilities assumed from Moda on February 4, 2010.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Current assets		$	3.2
Property, plant and equipment			0.2
Intangible assets:
Goodwill			6.6
Customer relationships	120		7.9
Trademarks	240		17.0
Covenants not to compete	59		0.2
Order backlog	3		1.7
Total assets acquired			36.8
Current liabilities			1.1
Total purchase price		$	35.7

        The fair value of receivables acquired from Moda was $2.2 million, with gross contractual amounts receivable amounting to $2.7 million.

        The acquisition resulted in the recognition of $6.6 million of goodwill, which is expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the acquisition, such as manufacturing and supply chain work process improvements and the elimination of redundant corporate overhead for shared services and governance, the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as footwear.

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        The following table provides total revenues and results of operations from the acquired Moda business included in our results for the fiscal quarter and six months ended July 3, 2010 subsequent to the acquisition.

(In millions)		Fiscal Quarter Ended July 3, 2010		Fiscal Six Months Ended July 3, 2010
Total revenues	$	2.1	$	6.5
Loss before provision for income taxes		6.1		6.7

Stuart Weitzman Holdings, LLC

        On June 2, 2010, we acquired 55% of the membership interests in Stuart Weitzman Holdings, LLC ("SWH"), a privately-held designer and manufacturer of women's salon footwear and accessories under the Stuart Weitzman label. SWH markets its products in fine specialty and department stores worldwide and in its own chain of retail stores in the U.S. and abroad.

        Under the terms of the agreement, the acquisition will occur in two stages. We made an initial cash payment of $180.3 million for a 55% interest in SWH. The purchase of the remaining 45% will occur on December 31, 2012. The remaining purchase price will be determined under a formula set forth in the agreement, which is based upon the financial results of SWH from 2010 through 2012. We recorded all SWH's identifiable assets, SWH's liabilities assumed and the noncontrolling interest at fair value under the acquisition method. Due to our obligation to purchase the remaining 45% interest, the noncontrolling interest is classified as a liability, with adjustments to the liability recorded as interest expense. We recorded a liability of $181.8 million for the initial value of the projected payments for the remaining 45% interest, based on probability-weighted projected earnings before interest, taxes, depreciation and amortization (as defined in the agreement) of the acquired business and cash distributions that are required by the agreement to be disbursed for 2010 through 2012, using a discount factor based on an estimated weighted average cost of capital. At July 2, 2011, the fair value of the liability was $211.8 million, with $31.8 million and $0.1 million recorded as interest expense and $11.0 million and $0.7 million of payments recorded during the fiscal six months ended July 2, 2011 and July 3, 2010, respectively.

        We pursued the acquisition of SWH to increase our presence in the contemporary footwear market and to further develop a business portfolio with significant growth opportunities. SWH's wholesale footwear business is reported in our domestic wholesale footwear and accessories and international wholesale segments, its retail business is reported in our domestic retail and international retail segments, and its licensing business is reported in our licensing, eliminations and other segment.

        The following table summarizes the fair values of the assets acquired and liabilities assumed from SWH on June 2, 2010.

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(In millions)	Weighted-average amortization life (in months)		Fair Value
Cash		$	21.0
Accounts receivable			20.1
Inventories			18.9
Other current assets			1.5
Property, plant and equipment			19.4
Intangible assets:
Trademarks			154.1
Goodwill			115.1
Customer relationships	120		20.2
Covenant not to compete	55		3.5
Order backlog	9		10.5
Favorable lease agreements	139		6.1
Licensing agreements	55		3.6
Other noncurrent assets			0.7
Total assets acquired			394.7
Cash distributions payable			19.0
Current liabilities			10.6
Unfavorable lease agreements	73		2.7
Other long-term liabilities			0.3
Total liabilities assumed			32.6
Total purchase price		$	362.1

        The gross contractual accounts receivable acquired from SWH was $24.4 million.

        The acquisition resulted in the recognition of $115.1 million of goodwill, which is expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the acquisition, such as the elimination of redundant corporate overhead for shared services and governance, the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as apparel.

        The following table provides total revenues and results of operations from the acquired SWH business included in our results for the fiscal quarter and six months ended July 3, 2010 subsequent to the acquisition.

(In millions)		Fiscal Quarter and Six Months Ended July 3, 2010
Total revenues	$	21.7
Loss before provision for income taxes		2.8

KG Group Holdings Limited

        On June 2, 2011, we acquired 100% of the equity interests in KG Group Holdings Limited ("Kurt Geiger"), a privately-held wholesaler and retailer of luxury footwear and accessories, for $150.0 million in cash and the assumption of $174.1 million of debt, which was immediately repaid. Kurt Geiger markets products under four of its own brands - Kurt Geiger, KG by Kurt Geiger, Carvela, and Miss KG - and over 100 other luxury brands in more than 200 retail locations, including concessions in Europe's leading department stores, including Harrods, Selfridges, Liberty, House of Fraser, Fenwick John Lewis and Brown Thomas, as well as company-operated stores.

        Approximately $10.2 million of the purchase price payable to certain selling shareholders who are senior managers of Kurt Geiger has been rolled over into 5% Loan Notes (the "Loan Notes"), which are payable in approximately four years and are subject to forfeiture in the event of termination of

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employment under certain circumstances. This amount will be recorded as compensation expense over the term of the Loan Notes and is not reported as a component of the cost of the acquisition.

        We pursued the acquisition of Kurt Geiger to increase our international presence and further extend our reach into the designer footwear business. Kurt Geiger will serve as our hub in Europe. Kurt Geiger's wholesale footwear business is reported in our international wholesale segment and its retail business is reported in our international retail segment.

        The following table summarizes the fair values of the assets acquired and liabilities assumed from Kurt Geiger on June 2, 2011.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Cash		$	6.9
Accounts receivable			19.7
Inventories			55.1
Other current assets			9.5
Property, plant and equipment			27.0
Intangible assets:
Trademarks - nonamortized			95.1
Trademarks - amortized	120		0.1
Goodwill			99.3
Customer relationships	232		125.7
Order backlog	9		2.8
Favorable lease agreements	99		6.8
Total assets acquired			448.0
Accounts payable			30.6
Other current liabilities			28.5
Long-term debt			174.1
Unfavorable lease agreements	100		0.2
Deferred taxes			64.6
Total liabilities assumed			298.0
Total purchase price		$	150.0

        The gross contractual accounts receivable acquired from Kurt Geiger was $19.8 million.

        The acquisition resulted in the recognition of $99.3 million of goodwill, which is not expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the leveraging of the combined networks of partners, infrastructure and strong department store relationships to expand product distribution worldwide, as well as the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as apparel.

        The following table provides total revenues and results of operations from the acquired Kurt Geiger business included in our results for the fiscal quarter and six months ended July 2, 2011 subsequent to the acquisition.

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(In millions)		Fiscal Quarter and Six Months Ended July 2, 2011
Total revenues	$	37.3
Loss before provision for income taxes		6.2

        The following table provides pro forma total revenues and results of operations for the fiscal quarters and six months ended July 2, 2011 and July 3, 2010 as if Moda and SWH had been acquired on January 1, 2009 and Kurt Geiger had been acquired on January 1, 2010. The unaudited pro forma results reflect certain adjustments related to the acquisitions, such as amortization expense on intangible assets acquired from Moda, SWH and Kurt Geiger resulting from the fair valuation of assets acquired. The pro forma results do not include any anticipated cost synergies or other effects of the planned integration of Moda, SWH or Kurt Geiger. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed at the indicated dates, nor are they indicative of the future operating results of the combined companies.

(In millions, except per share amounts)	Fiscal Quarter Ended				Fiscal Six Months Ended
		July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Total revenues	$	942.6	$	956.3	$	1,978.9	$	1,960.5
Net income		9.1		28.5		28.3		67.5
Earnings per common share attributable to Jones
Basic		0.11		0.33		0.33		0.78
Diluted		0.10		0.33		0.33		0.78

        The pro forma earnings for the fiscal quarter and six months ended July 3, 2010 were adjusted to exclude $4.5 million and $5.6 million, respectively, of acquisition-related expenses related to the acquisitions of Moda and SWH incurred during the respective periods and $2.9 million and $4.3 million, respectively, of nonrecurring expense related to the fair value of acquisition-date order backlogs. The pro forma earnings for the fiscal quarter and six months ended July 2, 2011 were adjusted to exclude $4.9 million of acquisition-related expenses incurred related to the acquisition of Kurt Geiger and $0.5 million of nonrecurring expense related to the fair value of Kurt Geiger acquisition-date order backlogs. The pro forma earnings for the fiscal quarter and six months ended July 3, 2010 were adjusted to include $0.9 million and $2.5 million, respectively, of nonrecurring expense related to the fair value of Kurt Geiger acquisition-date order backlogs.

Acquisition Expenses

        During the fiscal six months ended July 3, 2010, pretax charges totaling $0.6 million and $5.0 million were recorded for legal expenses and other costs related to the Moda and SWH acquisitions, respectively. During the fiscal six months ended July 2, 2011, pretax charges totaling $4.9 million were recorded for legal expenses and other costs related to the Kurt Geiger acquisition. These charges, which were expensed in accordance with the accounting guidance for business combinations, were recorded as SG&A costs in our licensing, other and eliminations segment.

ACCOUNTS RECEIVABLE

        Accounts receivable consist of the following:

(In millions)		July 2, 2011		July 3, 2010			December 31, 2010
Trade accounts receivable	$	409.2		408.5		$	374.1
Allowances for doubtful accounts, returns, discounts and co-op advertising		(30.9	)	(27.8	)		(28.5	)
	$	378.3		380.7		$	345.6

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        Due to our 25% ownership interest in GRI, GRI is deemed to be a related party. Included in accounts receivable are amounts due from GRI in the amount of $14.6 million, $35.6 million and $25.4 million at July 2, 2011, July 3, 2010 and December 31, 2010, respectively. Net revenues from GRI amounted to $26.5 million and $32.0 million for the fiscal six months ended July 2, 2011 and July 3, 2010, respectively. On July 23, 2009, we converted $10.0 million of the outstanding GRI accounts receivable to a three-year interest-bearing convertible note. GRI has the option, during the 90-day period that begins when the audited financial statements for the GRI fiscal year ending January 31, 2011 become available (or such shorter period that ends on the maturity date of the note), to convert the note into common shares of GRI at a conversion rate based on the greater of eight times the net income of GRI for such fiscal year, or an appraised value determined as of that date.

ACCRUED RESTRUCTURING COSTS

Jewelry

        During 2009, we decided to discontinue the domestic manufacturing, product development and sourcing activities of our jewelry business, and also announced the closing of our jewelry distribution center during 2010. We accrued $0.2 million of termination benefits and associated employee costs and $2.2 million of lease termination costs in the fiscal six months ended July 3, 2010 and we accrued $0.1 million of lease termination costs in the fiscal six months ended July 2, 2011. These costs are reported as SG&A expenses in the domestic wholesale footwear and accessories segment.

        The details of the jewelry restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total jewelry restructuring
Balance, January 1, 2010	$	2.9		$	-		$	2.9
Additions		0.2			2.2			2.4
Payments and reductions		(1.2	)		-			(1.2	)
Balance, July 3, 2010	$	1.9		$	2.2		$	4.1
Balance, January 1, 2011	$	1.3		$	2.3		$	3.6
Additions		-			0.1			0.1
Payments and reductions		(1.3	)		(0.6	)		(1.9	)
Balance, July 2, 2011	$	-		$	1.8		$	1.8

        We utilized $1.2 million and $1.3 million of the termination benefits accrual in each of the fiscal six months ended July 3, 2010 and July 2, 2011, respectively (relating to full or partial severance for 16 and 43 employees, respectively). The net accrual of $4.1 million at July 3, 2010 is reported as $2.4 million of accrued expenses and other current liabilities and $1.7 million of other noncurrent liabilities. The net accrual of $1.8 million at July 2, 2011 is reported as $0.4 million of accrued expenses and other current liabilities and $1.4 million of other noncurrent liabilities.

Texas Warehouse

        On December 1, 2009, we announced the closing of warehouse facilities in Socorro, Texas. We accrued $3.4 million of termination benefits and associated employee costs for 220 employees, of which $0.3 million was recorded in the fiscal six months ended July 3, 2010. We also recorded $2.6 million and $0.1 million of lease obligation costs relating to the warehouse in the fiscal six months ended July 3, 2010 and July 2, 2011, respectively. These costs are reported as SG&A expenses in the domestic wholesale jeanswear segment. The closing was substantially completed by the end of April 2010.

        The details of the Texas warehouse restructuring accruals are as follows:

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(In millions)		One-time termination benefits			Lease obligations			Total Texas warehouse restructuring
Balance, January 1, 2010	$	3.1		$	-		$	3.1
Additions		0.3			2.6			2.9
Payments and reductions		(2.9	)		(0.2	)		(3.1	)
Balance, July 3, 2010	$	0.5		$	2.4		$	2.9
Balance, January 1, 2011	$	-		$	4.1		$	4.1
Additions		-			0.1			0.1
Payments and reductions		-			(2.3	)		(2.3	)
Balance, July 2, 2011	$	-		$	1.9		$	1.9

        During the fiscal six months ended July 3, 2010, $2.9 million of the accruals relating to termination benefits were utilized (relating to partial or full severance for 216 employees). The net accruals of $2.9 million and $1.9 million at July 3, 2010 and July 2, 2011, respectively, are reported as accrued expenses and other current liabilities.

Other Restructurings

        Moderate Apparel Restructuring. In connection with the exit from and reorganization of certain moderate apparel product lines, we decided to close certain New York offices, and on October 9, 2007, we announced the closing of warehouse facilities in Goose Creek, South Carolina. Prior to 2010, we recorded $2.0 million of lease obligation costs as selling, general and administrative expenses in our domestic wholesale jeanswear segment relating to one of the warehouse facilities. During the fiscal six months ended July 3, 2010, we reversed $1.3 million of lease obligation costs as SG&A expenses in our domestic wholesale jeanswear segment due to a sublease of one of the warehouse facilities.

        Retail Stores. We continue to review our retail operations for underperforming locations. As a result of this review, we have decided to close retail locations that no longer provide strategic benefits. During the fiscal six months ended July 3, 2010 and July 2, 2011, we closed 102 and 63 locations, respectively, and anticipate closing additional locations in 2011. Total termination benefits and associated employee costs are expected to be $8.1 million for approximately 1,425 employees, including both store employees and administrative support personnel. We recorded $0.5 million employee termination costs in the fiscal six months ended July 2, 2011. In connection with our decision to close these stores, we reviewed the associated long-term assets for impairments. As a result of this review, we recorded $2.1 million and $2.5 million of impairment losses during the fiscal six months ended July 3, 2010 and July 2, 2011, respectively, on leasehold improvements and furniture and fixtures located in the stores to be closed. These costs are reported as SG&A expenses in our domestic retail segment.

        California Restructuring. On February 15, 2011, we announced the closing of our Commerce, California design facility. In connection with this closing, we accrued $0.5 million of termination benefits and associated employee costs for 17 employees. These costs are reported as SG&A expenses in our domestic wholesale jeanswear segment.

        The details of these restructuring accruals are as follows:

(In millions)		Moderate restructuring			Retail stores			California restructuring
Balance, January 1, 2010	$	2.0		$	1.9		$	-
Reversals		(1.3	)		-			-
Payments and reductions		(0.3	)		(0.7	)		-
Balance, July 3, 2010	$	0.4		$	1.2		$	-
Balance, January 1, 2011	$	0.3		$	2.2		$	-
Additions		-			0.5			0.5
Payments and reductions		(0.1	)		(1.9	)		(0.2	)
Balance, July 2, 2011	$	0.2		$	0.8		$	0.3

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        During the fiscal six months ended July 3, 2010 and July 2, 2011, $0.7 million and $2.1 million of the termination benefits accrual were utilized (relating to partial or full severance for 377 and 273 employees, respectively). The net accrual of $1.6 million at July 3, 2010 is reported as $1.3 million of accrued expenses and other current liabilities and $0.3 million of other noncurrent liabilities. The net accrual of $1.3 million at July 2, 2011 is reported as $1.2 million of accrued expenses and other current liabilities and $0.1 million of other noncurrent liabilities.

GOODWILL

        The following table presents, by segment and in total, changes in the carrying amount of goodwill for the fiscal six months ended July 3, 2010 and July 2, 2011. With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments (see "Segment Information"). As a result, we have reallocated goodwill based on the current segment structure and have restated the goodwill by segment for all periods presented.

(In millions)		Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear			Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale			International Retail			Total
Balance, January 1, 2010
Goodwill	$	40.1	$	519.2		$	813.2		$	120.6		$	-		$	-		$	1,493.1
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		40.1		-			-			-			-			-			40.1
Acquisition of Moda		6.6		-			-			-			-			-			6.6
Acquisition of SWH		-		-			59.8			-			55.3			-			115.1
Balance, July 3, 2010
Goodwill		46.7		519.2			873.0			120.6			55.3			-			1,614.8
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	59.8		$	-		$	55.3		$	-		$	161.8
Balance, December 31, 2010
Goodwill	$	46.7	$	519.2		$	873.0		$	120.6		$	55.3		$	-		$	1,614.8
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		46.7		-			59.8			-			55.3			-			161.8
Acquisition of Kurt Geiger		-		-			-			-			45.8			53.5			99.3
Foreign currency translation effects		-		-			-			-			(1.0	)		(1.2	)		(2.2	)
Balance, July 2, 2011
Goodwill		46.7		519.2			873.0			120.6			100.1			52.3			1,711.9
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	59.8		$	-		$	100.1		$	52.3		$	258.9

FAIR VALUES

        ASC Subtopic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 outlines a valuation framework, creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements, and details the disclosures that are required for items measured at fair value. We are permitted to choose to measure many financial instruments and certain other items at fair value, although we did not elect the fair value measurement option for any of our financial assets or liabilities. Our financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, which are as follows:

• Level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date;
   
• Level 2 - inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.),

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and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and

• Level 3 - unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing assets or liabilities based on the best information available.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

        We have certain financial assets and liabilities that are required to be measured at fair value. These include:

• the assets and liabilities of The Jones Group Inc. Deferred Compensation Plan (the "Rabbi Trust"), which represent deferred employee compensation invested in mutual funds and which fall within Level 1 of the fair value hierarchy;
• deferred director fees, which represent phantom units of our common stock that have a fair value based on the market price of our common stock and which fall within Level 1 of the fair value hierarchy;
• foreign currency forward contracts and options, which have fair values based on observable inputs including foreign exchange forward and spot rates and which fall within Level 2 of the fair value hierarchy;
• interest rate swaps and cap, which have fair values based on observable inputs including yield curves and LIBOR rates and which fall within Level 2 of the fair value hierarchy;
• long-term debt that is hedged by interest rate swaps as a fair-value hedge and which falls within Level 2 of the fair value hierarchy; and
• consideration liabilities recorded as a result of the acquisition of Moda and SWH, which have fair values based on our projections of financial results and cash flows for the acquired business and a discount factor based on our weighted average cost of capital, and which fall within Level 3 of the fair value hierarchy.

        In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis at July 3, 2010, December 31, 2010 and July 2, 2011.

(In millions)
Description	Classification		Total Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
July 3, 2010:
Rabbi Trust assets	Prepaid expenses and other current assets	$	8.3	$	8.3	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.2		-		0.2		-
Interest rate swaps	Other long-term assets		2.8		-		2.8		-
Interest rate cap	Other long-term assets		1.3		-		1.3		-
	Total assets	$	12.6	$	8.3	$	4.3	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	8.3	$	8.3	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		1.1		1.1		-		-
Acquisition consideration	Current portion of acquisition consideration payable		10.3		-		-		10.3
5.125% Senior Notes die 2014	Long-term debt		253.8		-		253.8		-
Acquisition consideration	Acquisition consideration payable, net of current portion		194.8		-		-		194.8
	Total liabilities	$	468.3	$	9.4	$	253.8	$	205.1

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(In millions)
Description	Classification		Total Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
December 31, 2010:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.1	$	9.1	$	-	$	-
Interest rate cap	Other long-term assets		1.3		-		1.3		-
	Total assets	$	10.4	$	9.1	$	1.3	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	9.1	$	9.1	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Accrued expenses and other current liabilities		0.5		-		0.5		-
Interest rate swaps	Other long-term liabilities		0.6		-		0.6		-
Deferred director fees	Accrued expenses and other current liabilities		1.2		1.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		14.1		-		-		14.1
5.125% Senior Notes due 2014	Long-term debt		260.0		-		260.0		-
Acquisition consideration	Acquisition consideration payable, net of current portion		199.8		-		-		199.8
	Total liabilities	$	485.3	$	10.3	$	261.1	$	213.9
July 2, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.5	$	9.5	$	-	$	-
British Pound - Euro forward contracts	Other current assets		0.1		-		0.1		-
Interest rate swaps	Other long-term assets		5.1		-		5.1		-
Interest rate cap	Other long-term assets		0.6		-		0.6		-
	Total assets	$	15.3	$	9.5	$	5.8	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	9.5	$	9.5	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Accrued expenses and other current liabilities		0.6		-		0.6		-
Acquisition consideration	Current portion of acquisition consideration payable		21.5		-		-		21.5
5.125% Senior Notes due 2014	Long-term debt		261.2		-		261.2		-
Hedged portion of 6.875% Senior Notes due 2019	Long-term debt		154.4		-		154.4		-
Acquisition consideration	Acquisition consideration payable, net of current portion		206.7		-		-		206.7
	Total liabilities	$	653.9	$	9.5	$	416.2	$	228.2

        The following table presents the changes in Level 3 contingent consideration liability for the fiscal six months ended July 3, 2010 and July 2, 2011.

(In millions)		Acquisition of Moda			Acquisition of SWH			Total Acquisition Consideration Payable
Beginning balance, January 1, 2010	$	-		$	-		$	-
Acquisition		18.8			181.8			200.6
Payments		-			(0.7	)		(0.7	)
Total adjustments included in earnings		5.1			0.1			5.2
Balance, July 3, 2010	$	23.9		$	181.2		$	205.1
Beginning balance, January 1, 2011	$	22.9		$	191.0		$	213.9
Payments		-			(11.0	)		(11.0	)
Total adjustments included in earnings		(6.5	)		31.8			25.3
Balance, July 2, 2011	$	16.4		$	211.8		$	228.2

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

        In accordance with the fair value hierarchy described above, the following table shows the fair value of our non-financial assets and liabilities that were required to be measured at fair value on a nonrecurring basis at July 3, 2010 and July 2, 2011, and the total losses recorded as a result of the remeasurement process.

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(In millions)			Fair Value Measurements Using
Description		Carrying Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total losses recorded for the fiscal six months
At July 3, 2010:
Property and equipment	$	-	$	-	$	-	$	-	$	2.1
At July 2, 2011:
Property and equipment		-		-		-		-		2.5
Transportation equipment		1.0		0.6		-		-		0.4

        During the fiscal six months ended July 3, 2010 and July 2, 2011, property and equipment utilized in our retail operations with a carrying amount of $2.1 million and $2.5 million, respectively, were written down to a fair value of zero, primarily as a result of our decision to close underperforming retail locations. These losses were recorded as SG&A expenses in the domestic retail segment. We consider long-term assets utilized in a retail location to be impaired when a pattern of operating losses at the location indicate that future operating losses are probable and that the resulting cash flows will not be sufficient to recover the carrying value of the associated long-term assets. During the fiscal six months ended July 2, 2011, we determined that certain transportation equipment with a carrying value of $1.0 million had a fair value of $0.6 million based on quoted market prices. The loss of $0.4 million was recorded as SG&A expenses in the licensing, other and eliminations segment.

Financial Instruments

        As a result of our global operating and financing activities, we are exposed to changes in interest rates and foreign currency exchange rates which may adversely affect results of operations and financial condition. In seeking to minimize the risks and/or costs associated with such activities, we manage exposure to changes in interest rates and foreign currency exchange rates through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The instruments eligible for utilization include forward, option and swap agreements. We do not use financial instruments for trading or other speculative purposes. At July 2, 2011, we had outstanding foreign exchange contracts to exchange Canadian Dollars for a total notional value of US$10.3 million at a weighted-average exchange rate of 1.02 maturing through November 2011 and to exchange British Pounds for Euros for a total notional value of €2.4 million at a weighted-average exchange rate of 1.15 maturing through September 2011. We also had options to exchange British Pounds for U.S. Dollars for a notional value of $2.5 million at an exchange rate of 1.47 through September of 2011.

        At July 2, 2011, July 3, 2010 and December 31, 2010, the fair values of cash and cash equivalents, receivables and accounts payable approximated their carrying values due to the short-term nature of these instruments. The fair value of the note receivable from GRI approximates the $10.0 million carrying value as it is a variable-rate instrument. The estimated fair values of other financial instruments subject to fair value disclosures, determined based on broker quotes or quoted market prices or exchange rates for the same or similar instruments, and the related carrying amounts are as follows:

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(In millions)	July 2, 2011						July 3, 2010				December 31, 2010
	Carrying Amount			Fair Value			Carrying Amount		Fair Value		Carrying Amount			Fair Value
Long-term debt, including current portion	$	825.5		$	749.6		$	503.9	$	447.2	$	510.0		$	459.4
Interest rate swaps, net asset (liability)		5.1			5.1			2.8		2.8		(0.6	)		(0.6	)
Interest rate cap, net asset		0.6			0.6			1.3		1.3		1.3			1.3
Canadian Dollar - U.S. Dollar forward contracts, net asset (liability)		(0.6	)		(0.6	)		0.2		0.2		(0.5	)		(0.5	)
British Pound - Euro forward contracts, net asset		0.1			0.1			-		-		-			-

        Financial instruments expose us to counterparty credit risk for nonperformance and to market risk for changes in interest and currency rates. We manage exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor the amount of credit exposure. Our financial instrument counterparties are substantial investment or commercial banks with significant experience with such instruments.

CREDIT FACILITIES

        We have a secured revolving credit agreement expiring on April 28, 2016 (the "Credit Facility") with several lending institutions to borrow an aggregate principal amount of up to $650 million. On April 28, 2011, we completed an amendment and restatement of our Credit Facility. The amended and restated terms and conditions provide for an extension of the maturity date from May 13, 2015 to April 28, 2016. The amendment and restatement also provides for, among other things, the following changes to the Credit Facility: (1) a split of the Credit Facility into a $350 million U.S. commitment which may be drawn by the U.S. borrowers as revolving loans or letters of credit in U.S. dollars, and a $300 million international commitment which may be drawn by the U.S. borrowers or by any Canadian or European borrowers as revolving loans or letters of credit in Euros, sterling, Canadian dollars, or U.S. dollars; (2) reductions in the interest rate spreads and commitment fees payable under the Credit Facility; (3) the addition of separate borrowing bases in each relevant European country, similar to the U.S. borrowing base (with variations in accordance with local law or practice); (4) changes in the U.S. borrowing base eligibility criteria for inventory in or in transit to Canada; (5) an increase in the cap on swingline loans; (6) reductions in the various availability levels below which (x) dominion periods are triggered, and (y) the borrowers must comply with certain financial and other covenants; (7) increases in various debt baskets, including a lifting of limits on the general unsecured debt basket and on unsecured and secured debt incurred by non-U.S. subsidiaries that are not loan parties, an increase in the general lien basket, and the addition of a new lien basket for financings secured by intellectual property; (8) increases in various investments baskets and the addition of a new investments basket; (9) an increase in the general asset sales basket; and (10) reductions in the various thresholds to be met before we can make restricted payments or can prepay our bonds maturing in 2014.

        Borrowings under the Credit Facility may be used to refinance existing indebtedness, to make certain investments (including acquisitions), and for general corporate purposes in the ordinary course of business. Such borrowings bear interest either based on the alternate base rate, as defined in the Credit Facility, or based on Eurocurrency rates, each with a margin that depends on the availability remaining under the Credit Facility. The Credit Facility contains customary events of default.

        Availability under the Credit Facility is determined with reference to a borrowing base consisting of a percentage of eligible inventory, accounts receivable, credit card receivables and licensee receivables, minus reserves determined by the joint collateral agents. At July 2, 2011, we had no cash borrowings and $26.3 million of letters of credit outstanding, and our remaining availability was $456.4 million. If availability under the Credit Facility falls below a stated level, we will be required to comply with a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative and negative

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covenants that, among other things, will limit or restrict our ability to (1) incur indebtedness, (2) create liens, (3) merge, consolidate, liquidate or dissolve, (4) make investments (including acquisitions), loans or advances, (5) sell assets, (6) enter into sale and leaseback transactions, (7) enter into swap agreements, (8) make certain restricted payments (including dividends and other payments in respect of capital stock), (9) enter into transactions with affiliates, (10) enter into restrictive agreements, and (11) amend material documents. The Credit Facility is secured by a first priority lien on substantially all of our personal property.

        SWH has a $1.5 million unsecured borrowing facility with a lending institution that expires on October 1, 2011 and is renewable on an annual basis, under which no cash borrowings and $1.1 million in letters of credit were outstanding at July 2, 2011. Cash borrowings under this facility bear interest based on either the prevailing prime rate or the prevailing LIBOR rate plus 300 basis points. SWH also has a €0.3 million variable-rate unsecured borrowing facility with a European lending institution that expires in March 2012 and is renewable on an annual basis, under which no amounts were outstanding at July 2, 2011.

LONG-TERM DEBT

        In March 2011, we issued $300.0 million of 6.875% Senior Notes due 2019 (the "2019 Notes"). Net proceeds were $293.3 million, of which $45.0 million was used to repay amounts then outstanding under our secured revolving credit agreement. In connection with the issuance of the 2019 Notes, we entered into three interest rate swap transactions to effectively convert $150 million of the 2019 Notes to variable-rate debt. For more information, see "Derivatives."

DERIVATIVES

        We recognize all derivatives as either assets or liabilities on the balance sheet and measure those instruments at fair value. Additionally, the fair value adjustments will affect either equity or net income, depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity.

Interest Rate Swaps and Caps

        On May 27, 2010, we entered into three interest rate swap transactions to effectively convert the entire amount of our $250 million fixed-rate 5.125% Senior Notes due 2014 (the "2014 Notes") to variable-rate debt. Under the terms of the transactions, we were required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (that are reset on the 15th day of each calendar quarter) plus 2.92%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 5.125%. Concurrently, we also entered into an interest rate cap, at a cost of $2.7 million, which limits our three-month LIBOR rate exposure to 5.0%. The swap and cap transactions had an effective date of June 1, 2010 and a termination date of November 15, 2014, the date the 2014 Notes mature. On October 18, 2010, we de-designated the hedging relationship between the swaps and the 2014 Notes and received $10.2 million upon termination of the swaps. The related fair market valuation adjustment to the 2014 Notes will be amortized as a reduction of interest expense over the remaining life of the 2014 Notes.

        On December 14, 2010, we entered into three interest rate swap transactions to effectively convert the entire amount of the 2014 Notes to variable-rate debt. Under the terms of the transactions, we are required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.46%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 5.125%. The swap transactions have an effective date of December 17, 2010 and a termination date of November 15, 2014, the date the 2014 Notes mature.

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        On March 3, 2011, we entered into three interest rate swap transactions to effectively convert $150 million of our 2019 Notes to variable-rate debt. Under the terms of the transactions, we are required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.73%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 6.875%. The swap transactions have an effective date of March 7, 2011 and a termination date of March 15, 2019, the date the 2019 Notes mature.

        The swap transactions were designated as hedges of the fair value of the related notes. The fair values of the swaps are recorded either as an asset or a liability, with changes in their fair values recorded through interest expense. The changes in fair value of the notes related to the hedged portion of the notes are also recorded through interest expense. As these changes in fair value will not exactly offset each other, the net effect on earnings represents the ineffectiveness of the hedging instruments. We evaluate effectiveness under the "long haul" method of accounting. The interest rate cap has not been designated as a hedging instrument; as a result, all changes in the fair value of the cap are recorded through interest expense.

        We recorded a net increase of $1.2 million in interest expense related to the ineffectiveness of the swaps and a $0.7 million increase in interest expense related to changes in the fair value of the cap during the fiscal six months ended July 2, 2011.  We recorded a net increase of $1.2 million in interest expense related to the ineffectiveness of the swaps and a $1.4 million increase in interest expense related to changes in the fair value of the cap during the fiscal six months ended July 3, 2010.

Foreign Currency Forward Contracts

        We use foreign currency forward contracts for the specific purpose of hedging the exposure to variability in forecasted cash flows associated primarily with inventory purchases. Fair values of foreign currency forward contracts are calculated by comparing each agreement's contractual exchange rate with the currency exchange forward and spot rates at the reporting date.

        We have outstanding forward contracts to exchange Canadian Dollars for U.S. Dollars and British Pounds for Euros, and options to exchange British Pounds for U.S. Dollars. The Canadian Dollar - U.S. Dollar contracts are designated as cash flow hedges, as the principal terms of the contracts are the same as the underlying forecasted foreign currency cash flows. Therefore, changes in the fair value of these forward contracts should be highly effective in offsetting changes in the expected foreign currency cash flows. Changes in the fair value of these contracts are recorded in accumulated other comprehensive income, net of related tax effects, with the corresponding asset or liability recorded in the balance sheet. Amounts recorded in accumulated other comprehensive income are reflected in current-period earnings when the hedged transaction affects earnings. The British Pound contracts have not been designated as cash flow hedges; therefore, changes in the fair value of these forward contracts are recorded as SG&A expenses.

        Since the foreign currency derivatives we use in our risk management strategies are highly effective hedges because all the critical terms of the derivative instruments match those of the hedged item, we record no ineffectiveness related to our cash flow hedges. If foreign currency exchange rates do not change from their July 2, 2011 amounts, we estimate that any reclassifications from other comprehensive income to earnings within the next 12 months will not be material.

        The U.S. Dollar notional amounts of our Canadian Dollar - U.S. Dollar forward exchange contracts outstanding at July 2, 2011, July 3, 2010 and December 31, 2010 were $10.3 million, $6.3 million and $20.3 million, respectively. The Euro notional amounts of our British Pound - Euro forward exchange contracts outstanding at July 2, 2011 were €2.4 million. The U.S. Dollar notional amounts of our British Pound - U.S. Dollar exchange options outstanding at July 2, 2011 were $2.5 million.

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Fair Values of Derivative Instruments

(In millions)		July 2, 2011			July 3, 2010			December 31, 2010
		Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments
	Interest rate swap contracts	Other long-term assets	$	5.1	Other long-term assets	$	2.8		$	-
	Foreign exchange contracts			-	Prepaid expenses and other current assets		0.2			-
	Total derivative assets		$	5.1		$	3.0		$	-
	Interest rate swap contracts		$	-		$	-	Other long-term liabilities	$	0.6
	Foreign exchange contracts	Accrued expenses and other current liabilities		0.6			-	Accrued expenses and other current liabilities		0.5
	Total derivative liabilities		$	0.6		$	-		$	1.1
Derivatives not designated as hedging instruments
	Foreign exchange contracts	Prepaid expenses and other current assets	$	0.1		$	-		$	-
	Interest rate cap contract	Other long-term assets		0.6	Other long-term assets		1.3	Other long-term assets		1.3
	Total derivative assets		$	0.7		$	1.3		$	1.3

Effect of Derivatives on the Statement of Operations - Derivatives Designated as Hedging Instruments

(In millions)	Location of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income	Amount of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income
Derivate type			Fiscal Six Months Ended July 2, 2011			Fiscal Six Months Ended July 3, 2010
Interest rate swap contracts	Interest expense	$	(1.2	)	$	(1.2	)

(In millions)	Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income			Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income
Derivative type	Fiscal Six Months Ended July 2, 2011	Fiscal Six Months Ended July 3, 2010	Location of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income	Fiscal Six Months Ended July 2, 2011	Fiscal Six Months Ended July 3, 2010

Canadian Dollar - U.S. Dollar forward contracts $ (0.6 ) $ 0.1 Cost of sales $ (0.4 )  $ (0.2 ) 

Effect of Derivatives on the Statement of Operations - Derivatives Not Designated as Hedging Instruments

(In millions)	Location of Pretax Gain (Loss) Recognized in Income	Amount of Pretax Gain (Loss) Recognized in Income
Derivate type			Fiscal Six Months Ended July 2, 2011			Fiscal Six Months Ended July 3, 2010
British Pound - Euro forward contracts	Selling, general and administrative expenses	$	0.1		$	-
Interest rate cap contract	Interest expense	$	(0.7	)	$	(1.4	)

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STATEMENT OF CASH FLOWS

Fiscal Six Months Ended		July 2, 2011			July 3, 2010
(In millions)
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	21.0		$	19.5
Net income tax (refunds) payments		(7.4	)		36.6
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees		26.2			27.6
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger		10.2			-
Acquisition consideration payable recorded for acquisition of Moda		-			18.8
Acquisition consideration payable recorded for acquisition of SWH		-			181.8

EQUITY METHOD INVESTMENTS

        On June 20, 2008, we acquired a 10% equity interest in GRI, an international accessories and apparel brand management and retail-distribution network, for $20.2 million. On June 24, 2009, we increased our equity interest to 25% for an additional $15.2 million. The selling shareholders of GRI are entitled to receive an additional cash payment equaling 60% of the amount of GRI's fiscal year 2011 net income that exceeds a certain threshold. GRI is the exclusive licensee of several of our brands in Asia, including Nine West, Anne Klein New York, AK Anne Klein, Easy Spirit, Enzo Angiolini and Joan & David. GRI also distributes other women's apparel, shoes and accessory brands. See "Accounts Receivable" for additional information regarding GRI.

PENSION PLANS

Components of Net Periodic Benefit Cost

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
		July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Interest cost	$	0.7		$	0.7		$	1.3		$	1.3
Expected return on plan assets		(0.7	)		(0.6	)		(1.3	)		(1.2	)
Amortization of net loss		0.4			0.4			0.9			0.8
Net periodic benefit cost	$	0.4		$	0.5		$	0.9		$	0.9

Employer Contributions

        During the fiscal six months ended July 2, 2011, we contributed $1.0 million to our defined benefit pension plans. We anticipate contributing a total of $4.8 million during 2011.

SEGMENT INFORMATION

        We identify operating segments based on, among other things, differences in products sold and the way our management organizes the components of our business for purposes of allocating resources and assessing performance. With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments to better reflect our expanding international operations. Our operations are now comprised of six reportable segments: domestic wholesale sportswear, domestic wholesale jeanswear, domestic wholesale footwear and accessories, domestic retail, international wholesale and international retail. Segment revenues are generated from the sale of apparel, footwear and accessories through wholesale channels and our own retail locations. The wholesale segments include wholesale operations with third party department and other retail stores, the retail segments include operations by

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our own stores, concession locations and e-commerce web sites, and income and expenses related to trademarks, licenses and general corporate functions are reported under "licensing, other and eliminations."

        We define segment income as operating income before net interest expense, goodwill impairment charges, gains or losses on sales of subsidiaries, equity in earnings of unconsolidated affiliates and income taxes. Sales and transfers between segments generally are recorded at cost and treated as transfers of inventory, which are not reviewed when evaluating segment performance. The wholesale segments allocate to the retail segments a portion of their SG&A costs related to the inventory transferred to those divisions where the retail operations benefit from those costs.

        Summarized below are our revenues, income and total assets by reportable segment for the fiscal quarter and six months ended July 2, 2011 and restated revenues, income and total assets by reportable segment for the fiscal quarter and six months ended July 3, 2010. We are an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, we do not represent that these segments, if operated independently, would report the operating profit and other financial information shown below.

(In millions)			Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear		Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale		International Retail		Licensing, Other & Eliminations			Consolidated
For the fiscal quarter ended July 2, 2011
	Revenues	$	203.0	$	189.1	$	188.4		$	166.5		$	76.6	$	53.4	$	10.4		$	887.4
	Segment income (loss)	$	22.3	$	11.9	$	(2.4	)	$	4.9		$	9.5	$	3.5	$	(4.8	)		44.9
	Net interest expense																			(37.0	)
	Equity in income of unconsoldiated affiliate																			0.7
	Income before provision for income taxes																		$	8.6
For the fiscal quarter ended July 3, 2010
	Revenues	$	219.6	$	189.3	$	193.6		$	165.0		$	69.3	$	12.5	$	10.3		$	859.6
	Segment income	$	21.1	$	13.2	$	12.9		$	1.1		$	7.2	$	3.1	$	(3.3	)		55.3
	Net interest expense																			(14.3	)
	Income before provision for income taxes																		$	41.0
For the fiscal six months ended July 2, 2011
	Revenues	$	471.7	$	424.6	$	409.0		$	301.7		$	155.7	$	63.6	$	22.4		$	1,848.7
	Segment income (loss)	$	53.1	$	39.9	$	15.6		$	(18.0	)	$	18.8	$	1.9	$	(5.2	)		106.1
	Net interest expense																			(58.2	)
	Equity in income of unconsoldiated affiliate																			2.0
	Income before provision for income taxes																		$	49.9
For the fiscal six months ended July 3, 2010
	Revenues	$	491.6	$	410.8	$	391.2		$	299.3		$	112.6	$	20.1	$	21.3		$	1,746.9
	Segment income (loss)	$	65.1	$	49.5	$	34.0		$	(19.8	)	$	9.3	$	2.3	$	(8.8	)		131.6
	Net interest expense																			(26.3	)
	Equity in loss of unconsoldiated affiliate																			(1.8	)
	Income before provision for income taxes																		$	103.5
Total Assets
	July 2, 2011	$	1,060.8	$	671.2	$	939.0		$	268.8		$	230.7	$	409.8	$	(821.3	)	$	2,759.0
	July 3, 2010		666.9		608.2		865.3			217.5			183.1		32.1		(265.2	)		2,307.9

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

        Certain of our subsidiaries function as co-issuers (fully and unconditionally guaranteed on a joint and several basis) of the outstanding debt of The Jones Group Inc. ("Jones"), including Jones Apparel Group, USA, Inc. ("Jones USA"), Jones Apparel Group Holdings, Inc. ("Jones Holdings") and JAG Footwear, Accessories and Retail Corporation ("JAG Footwear").

        The following condensed consolidating balance sheets, statements of operations and statements of cash flows for the "Issuers" (consisting of Jones and Jones USA, Jones Holdings, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Separate financial statements and other disclosures concerning Jones are not presented as Jones has no independent operations or assets. There are no contractual restrictions on distributions from Jones USA, Jones Holdings or JAG Footwear to Jones.

Condensed Consolidating Balance Sheets
(In millions)

		July 2, 2011											December 31, 2010
			Issuers			Others		Elim- inations			Cons- olidated			Issuers			Others		Elim- inations			Cons- olidated
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents	$	91.0		$	55.4	$	-		$	146.4		$	163.0		$	37.8	$	-		$	200.8
	Accounts receivable		200.5			177.8		-			378.3			210.2			135.4		-			345.6
	Inventories		291.7			231.7		(0.2	)		523.2			289.4			176.5		-			465.9
	Prepaid and refundable income taxes		10.0			0.2		1.3			11.5			3.3			0.1		15.3			18.7
	Deferred taxes		11.6			14.6		-			26.2			15.1			12.9		-			28.0
	Prepaid expenses and other current assets		24.6			19.7		-			44.3			22.1			10.0		-			32.1
	TOTAL CURRENT ASSETS		629.4			499.4		1.1			1,129.9			703.1			372.7		15.3			1,091.1
Property, plant and equipment - net			75.0			195.2		-			270.2			75.1			151.3		-			226.4
Due from affiliates			-			1,457.6		(1,457.6	)		-			-			1,512.4		(1,512.4	)		-
Goodwill			46.7			212.2		-			258.9			46.7			115.1		-			161.8
Other intangibles - net			7.3			940.0		-			947.3			7.7			719.0		-			726.7
Deferred taxes			85.3			-		(85.3	)		-			84.2			-		(84.2	)		-
Investments in and loans to affiliates			3,000.8			43.6		(3,000.8	)		43.6			2,677.5			40.2		(2,677.5	)		40.2
Other assets			90.4			18.7		-			109.1			68.7			17.5		-			86.2
	TOTAL ASSETS	$	3,934.9		$	3,366.7	$	(4,542.6	)	$	2,759.0		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
	Current portion of long-term debt and capital lease obligations	$	-		$	1.9	$	-		$	1.9		$	-		$	1.8	$	-		$	1.8
	Current portion of acquisition consideration payable		21.6			1.4		-			23.0			14.1			-		-			14.1
	Accounts payable		136.2			94.0		-			230.2			145.9			67.5		-			213.4
	Income taxes payable		9.3			9.4		(18.3	)		0.4			-			4.4		(4.4	)		-
	Accrued expenses and other current liabilities		73.7			68.8		-			142.5			85.5			56.9		-			142.4
	TOTAL CURRENT LIABILITIES		240.8			175.5		(18.3	)		398.0			245.5			130.6		(4.4	)		371.7
NONCURRENT LIABILITIES:
	Long-term debt		825.2			0.2		-			825.4			509.7			0.2		-			509.9
	Obligations under capital leases		-			24.3		-			24.3			-			25.2		-			25.2
	Deferred taxes		-			147.8		(72.9	)		74.9			-			72.1		(71.8	)		0.3
	Income taxes payable		8.7			-		-			8.7			6.3			-		-			6.3
	Acquisition consideration payable		206.7			-		-			206.7			199.9			1.4		-			201.3
	Due to affiliates		1,457.6			-		(1,457.6	)		-			1,512.4			-		(1,512.4	)		-
	Other		60.0			19.1		-			79.1			57.0			22.4		-			79.4
	TOTAL NONCURRENT LIABILITIES		2,558.2			191.4		(1,530.5	)		1,219.1			2,285.3			121.3		(1,584.2	)		822.4
	TOTAL LIABILITIES		2,799.0			366.9		(1,548.8	)		1,617.1			2,530.8			251.9		(1,588.6	)		1,194.1
EQUITY:
	Common stock and additional paid-in capital		540.3			2,340.5		(2,340.5	)		540.3			542.8			2,096.2		(2,096.2	)		542.8
	Retained earnings		605.5			655.1		(649.3	)		611.3			597.8			574.9		(568.9	)		603.8
	Accumulated other comprehensive (loss) income		(9.9	)		4.0		(4.0	)		(9.9	)		(8.4	)		5.1		(5.1	)		(8.4	)
	Total Jones stockholders' equity		1,135.9			2,999.6		(2,993.8	)		1,141.7			1,132.2			2,676.2		(2,670.2	)		1,138.2
	Noncontrolling interest		-			0.2		-			0.2			-			0.1		-			0.1
	TOTAL EQUITY		1,135.9			2,999.8		(2,993.8	)		1,141.9			1,132.2			2,676.3		(2,670.2	)		1,138.3
	TOTAL LIABILITIES AND EQUITY	$	3,934.9		$	3,366.7	$	(4,542.6	)	$	2,759.0		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4

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Condensed Consolidating Statements of Operations
(In millions)

	Fiscal Quarter Ended July 2, 2011											Fiscal Quarter Ended July 3, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	557.3		$	324.1		$	(4.7	)	$	876.7	$	606.1		$	246.1		$	(3.2	)	$	849.0
Licensing income		0.1			10.3			-			10.4		-			10.3			-			10.3
Other revenues		0.3			-			-			0.3		0.3			-			-			0.3
Total revenues		557.7			334.4			(4.7	)		887.4		606.4			256.4			(3.2	)		859.6
Cost of goods sold		356.3			210.2			(2.2	)		564.3		375.7			167.7			(1.0	)		542.4
Gross profit		201.4			124.2			(2.5	)		323.1		230.7			88.7			(2.2	)		317.2
Selling, general and administrative expenses		227.2			53.3			(2.3	)		278.2		231.2			33.2			(2.5	)		261.9
Operating (loss) income		(25.8	)		70.9			(0.2	)		44.9		(0.5	)		55.5			0.3			55.3
Net interest expense (income) and financing costs		38.0			(1.0	)		-			37.0		15.7			(1.4	)		-			14.3
Equity in income (loss) of unconsolidated affiliate		-			0.7			-			0.7		-			-			-			-
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(63.8	)		72.6			(0.2	)		8.6		(16.2	)		56.9			0.3			41.0
(Benefit) provision for income taxes		(17.5	)		20.7			-			3.2		(2.8	)		18.1			(0.1	)		15.2
Equity in earnings of subsidiaries		51.5			-			(51.5	)		-		38.9			-			(38.9	)		-
Net income		5.2			51.9			(51.7	)		5.4		25.5			38.8			(38.5	)		25.8
Less: income attributable to noncontrolling interest		-			0.2			-			0.2		-			0.1			-			0.1
Income attributable to Jones	$	5.2		$	51.7		$	(51.7	)	$	5.2	$	25.5		$	38.7		$	(38.5	)	$	25.7

	Fiscal Six Months Ended July 2, 2011											Fiscal Six Months Ended July 3, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,174.9		$	660.3		$	(9.5	)	$	1,825.7	$	1,232.1		$	499.9		$	(6.8	)	$	1,725.2
Licensing income		0.1			22.4			-			22.5		-			21.3			-			21.3
Other revenues		0.5			-			-			0.5		0.4			-			-			0.4
Total revenues		1,175.5			682.7			(9.5	)		1,848.7		1,232.5			521.2			(6.8	)		1,746.9
Cost of goods sold		764.5			434.1			(3.7	)		1,194.9		766.9			338.5			(1.9	)		1,103.5
Gross profit		411.0			248.6			(5.8	)		653.8		465.6			182.7			(4.9	)		643.4
Selling, general and administrative expenses		447.9			105.4			(5.6	)		547.7		455.2			61.6			(5.0	)		511.8
Operating (loss) income		(36.9	)		143.2			(0.2	)		106.1		10.4			121.1			0.1			131.6
Net interest expense (income) and financing costs		60.6			(2.4	)		-			58.2		29.1			(2.8	)		-			26.3
Equity in income (loss) of unconsolidated affiliate		-			2.0			-			2.0		-			(1.8	)		-			(1.8	)
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(97.5	)		147.6			(0.2	)		49.9		(18.7	)		122.1			0.1			103.5
(Benefit) provision for income taxes		(23.4	)		42.1			-			18.7		(0.3	)		38.7			(0.1	)		38.3
Equity in earnings of subsidiaries		105.0			-			(105.0	)		-		83.4			-			(83.4	)		-
Net income		30.9			105.5			(105.2	)		31.2		65.0			83.4			(83.2	)		65.2
Less: income attributable to noncontrolling interest		-			0.4			-			0.4		-			0.3			-			0.3
Income attributable to Jones	$	30.9		$	105.1		$	(105.2	)	$	30.8	$	65.0		$	83.1		$	(83.2	)	$	64.9

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Condensed Consolidating Statements of Cash Flows
(In millions)

		Fiscal Six Months Ended July 2, 2011												Fiscal Six Months Ended July 3, 2010
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash provided by operating activities		$	21.3		$	57.8		$	(13.5	)	$	65.6		$	11.1		$	15.7		$	(0.8	)	$	26.0
Cash flows from investing activities:
	Capital expenditures		(24.5	)		(25.0	)		-			(49.5	)		(6.0	)		(10.3	)		-			(16.3	)
	Acquisition of KG Group Holdings Limited, net of cash acquired		(150.0	)		6.9			-			(143.1	)		-			-			-			-
	Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired		-			-			-			-			(180.3	)		21.0			-			(159.3	)
	Acquisition of Moda Nicola International, LLC		-			-			-			-			(14.4	)		-			-			(14.4	)
	Other		-			-			-			-			-			0.1			-			0.1
	Net cash (used in) provided by investing activities		(174.5	)		(18.1	)		-			(192.6	)		(200.7	)		10.8			-			(189.9	)
Cash flows from financing activities:
	Issuance of 6.875% Senior Notes due 2019		300.0			-			-			300.0			-			-			-			-
	Debt issuance costs		(6.8	)		-			-			(6.8	)		-			-			-			-
	Costs related to revolving credit agreement		(2.9	)		-						(2.9	)		(7.2	)		-			-			(7.2	)
	Repayment of acquired debt of KG Group Holdings Limited		(174.1	)		-			-			(174.1	)		-			-			-			-
	Cash distributions to selling members of Stuart Weitzman Holdings, LLC		-			-			-			-			-			(19.0	)		-			(19.0	)
	Dividends paid		(8.5	)		(13.5	)		13.5			(8.5	)		(8.6	)		(0.8	)		0.8			(8.6	)
	Acquisition of treasury stock		(28.0	)		-			-			(28.0	)		-			-			-			-
	Payments of acquisition consideration payable		-			(6.2	)		-			(6.2	)		-			(0.7	)		-			(0.7	)
	Proceeds from exercise of employee stock options		-			-			-			-			0.6			-			-			0.6
	Other items, net		1.5			(1.2	)		-			0.3			-			(1.7	)		-			(1.7	)
	Net cash provided by (used in) financing activities		81.2			(20.9	)		13.5			73.8			(15.2	)		(22.2	)		0.8			(36.6	)
Effect of exchange rates on cash			-			(1.2	)		-			(1.2	)		-			0.3			-			0.3
Net (decrease) increase in cash and cash equivalents			(72.0	)		17.6			-			(54.4	)		(204.8	)		4.6			-			(200.2	)
Cash and cash equivalents, beginning			163.0			37.8			-			200.8			322.1			11.3			-			333.4
Cash and cash equivalents, ending		$	91.0		$	55.4		$	-		$	146.4		$	117.3		$	15.9		$	-		$	133.2

NEW ACCOUNTING STANDARDS

        In April 2011, FASB issued ASU 2011-02, "Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring." ASU 2011-02 provides amendments to Topic 310 to clarify which loan modifications constitute troubled debt restructurings. It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment loss and for disclosure of troubled debt restructurings. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption. Early adoption is permitted. The adoption of ASU No. 2011-02 will not have an impact on our results of operations or our financial position.

       In May 2011, FASB issued ASU No. 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." ASU 2011-04 amends Topic 820 to provide common fair value measurement and disclosure requirements in U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and International Financial Reporting Standards. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements, as well as providing guidance on how fair value should be applied where its use is already required or permitted by other standards within U.S. GAAP. ASU No. 2011-04 is to be applied prospectively, and early adoption is not permitted. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. The adoption of ASU No. 2011-04 is not expected to have a material impact on our results of operations or our financial position.

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        In June 2011, FASB issued ASU 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income." ASU 2011-05 eliminates the option that permits the presentation of other comprehensive income in the statement of changes in equity and requires presenting components of net income and comprehensive income in either a one-statement approach with totals for both net income and comprehensive income, or a two-statement approach where a statement presenting the components of net income and total net income must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income. For public companies, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should be applied retrospectively. Early adoption is permitted.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

        The following discussion provides information and analysis of our results of operations for the 13 and 26 week periods ended July 2, 2011 (hereinafter referred to as the "second fiscal quarter of 2011" and the "first fiscal six months of 2011," respectively) and July 3, 2010 (hereinafter referred to as the "second fiscal quarter of 2010" and the "first fiscal six months of 2010," respectively) and our liquidity and capital resources. The following discussion and analysis should be read in conjunction with our Consolidated Financial Statements included elsewhere herein.

Executive Overview

        We design, contract for the manufacture of and market a broad range of women's collection sportswear, suits and dresses, casual sportswear and jeanswear for women and children, women's footwear and accessories and men's jeanswear. We sell our products through a broad array of distribution channels, including better specialty and department stores and mass merchandisers, primarily in the United States, Canada and Europe. We also operate our own network of retail and factory outlet stores and several e-commerce web sites. In addition, we license the use of several of our brand names to select manufacturers and distributors of women's and men's apparel and accessories worldwide.

        During 2011 to date, the following significant events took place:

• on February 1, 2011, we announced the launch of "Shoelaborations^TM," a creative platform that seeks talented individuals doing original work in their unique artistic areas and allows them the opportunity to collaborate on a rotating basis with Nine West;
• on March 7, 2011, we announced that we successfully issued $300 million of 6.875% Senior Notes due 2019;
• on April 28, 2011, we announced an amendment and extension of our existing $650 million senior credit facility to provide for additional international subfacilities and a decrease in fees and interest rates to current market rates and to extend the maturity date to April 28, 2016;
• on June 2, 2011, we announced that we had acquired KG Group Holdings Limited ("Kurt Geiger"), Europe's largest luxury footwear retailer; and
• on July 11, 2011, we announced that we had entered into an exclusive, worldwide license agreement with Philip Simon Brands Group, Inc. for the creation, production, marketing and global distribution of a fashion sneaker collection under the Nine West brand.

Retail store closings

        We continue to review our domestic retail operations for underperforming locations. As a result of this review, we have decided to close retail locations that no longer provide strategic and/or financial benefits. During 2009 and 2010, we closed 99 and 191 locations, respectively. We closed 63 locations during the first fiscal six months of 2011, and we anticipate closing additional locations in 2011 and 2012. We accrued $0.5 million of employee termination costs in the fiscal six months ended July 2, 2011. In connection with our decision to close these stores, we reviewed the associated long-term assets for impairments. As a result of this review, we recorded $2.1 million and $2.5 million of impairment losses during the fiscal six months ended July 3, 2010 and July 2, 2011, respectively, on leasehold improvements

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and furniture and fixtures located in the stores to be closed. These costs are reported as selling, general and administrative ("SG&A") expenses in our domestic retail segment.

Critical Accounting Policies

        Several of our accounting policies involve significant or complex judgements and uncertainties and require us to make certain critical accounting estimates. We consider an accounting estimate to be critical if it requires us to make assumptions about matters that were highly uncertain at the time the estimate was made. The estimates with the greatest potential effect on our results of operations and financial position include the collectibility of accounts receivable, the recovery value of obsolete or overstocked inventory and the fair values of goodwill, intangible assets with indefinite lives and acquisition consideration liabilities. Estimates related to accounts receivable and inventory affect our domestic wholesale better sportswear, domestic wholesale jeanswear, domestic wholesale footwear and accessories, domestic retail, international wholesale and international retail segments. Estimates related to goodwill affect our domestic wholesale sportswear, domestic wholesale footwear and accessories, international wholesale and international retail segments. Estimates related to intangible assets with indefinite lives affect our domestic footwear and accessories, international wholesale, international retail and licensing, other and eliminations segments. Estimates related to our acquisition consideration liabilities affect our domestic wholesale sportswear and our domestic wholesale footwear and accessories segments.

        For accounts receivable, we estimate the net collectibility, considering both historical and anticipated trends of trade discounts and co-op advertising deductions given to our customers, allowances we provide to our retail customers to flow goods through the retail channels, and the possibility of non-collection due to the financial position of our customers. For inventory, we estimate the amount of goods that we will not be able to sell in the normal course of business and write down the value of these goods to the recovery value expected to be realized through off-price channels. Historically, actual results in these areas have not been materially different than our estimates, and we do not anticipate that our estimates and assumptions are likely to materially change in the future. However, if we incorrectly anticipate trends or unexpected events occur, our results of operations could be materially affected.

        We test our goodwill and our indefinite-lived trademarks for impairment on an annual basis (during our fourth fiscal quarter) and between annual tests if an event occurs or circumstances change that would reduce the fair value of an asset below its carrying value. These tests utilize discounted cash flow models to estimate fair values. These cash flow models involve several assumptions. Changes in our assumptions could materially impact our fair value estimates, and material impairment losses could result where the estimated fair values of these assets become less than their carrying amounts. Assumptions critical to our fair value estimates are: (i) discount rates used to derive the present value factors used in determining the fair value of the reporting units and trademarks; (ii) royalty rates used in our trademark valuations; (iii) projected average revenue growth rates used in the reporting unit and trademark models; and (iv) projected long-term growth rates used in the derivation of terminal values. These and other assumptions are impacted by economic conditions and expectations of management and will change in the future based on period-specific facts and circumstances.

        Acquisition consideration liabilities are recorded as a result of acquisitions, where a portion of the purchase price is payable at the end of a specific future period, with the amount of payment based on the financial results of the acquired business during that period. The fair values of acquisition consideration liabilities are based on probability-weighted projections of the financial results of the acquired business and a discount factor based on our weighted average cost of capital. Changes in our assumptions could materially impact our fair value estimates, and material gains and losses could result where the estimated fair value of these liabilities differ from their carrying amounts.

Changes to Operating Segments

        With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments to better reflect our expanding international operations. Our operations are now comprised of six reportable segments: domestic wholesale sportswear, domestic wholesale jeanswear, domestic

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wholesale footwear and accessories, domestic retail, international wholesale and international retail. Prior period information has been revised to conform to this presentation.

Results of Operations

Statements of Operations Stated in Dollars and as a Percentage of Total Revenues

(In millions)	Fiscal Quarter Ended								Fiscal Six Months Ended
	July 2, 2011				July 3, 2010				July 2, 2011				July 3, 2010
Net sales	$	876.7	98.8	%	$	849.0	98.8	%	$	1,825.7	98.8	%	$	1,725.2		98.8	%
Licensing income		10.4	1.2			10.3	1.2			22.5	1.2			21.3		1.2
Other revenues		0.3	0.0			0.3	0.0			0.5	0.0			0.4		0.0
Total revenues		887.4	100.0			859.6	100.0			1,848.7	100.0			1,746.9		100.0
Cost of goods sold		564.3	63.6			542.4	63.1			1,194.9	64.6			1,103.5		63.2
Gross profit		323.1	36.4			317.2	36.9			653.8	35.4			643.4		36.8
Selling, general and administrative expenses		278.2	31.4			261.9	30.5			547.7	29.6			511.8		29.3
Operating income		44.9	5.1			55.3	6.4			106.1	5.7			131.6		7.5
Net interest expense and financing costs		37.0	4.2			14.3	1.7			58.2	3.1			26.3		1.5
Equity in income (loss) of unconsolidated affiliate		0.7	0.1			-	-			2.0	0.1			(1.8	)	(0.1	)
Income before provision for income taxes		8.6	1.0			41.0	4.8			49.9	2.7			103.5		5.9
Provision for income taxes		3.2	0.4			15.2	1.8			18.7	1.0			38.3		2.2
Net income		5.4	0.6			25.8	3.0			31.2	1.7			65.2		3.7
Less: income attributable to noncontrolling interest		0.2	0.0			0.1	0.0			0.4	0.0			0.3		0.0
Income attributable to Jones	$	5.2	0.6	%	$	25.7	3.0	%	$	30.8	1.7	%	$	64.9		3.7	%

Percentage totals may not add due to rounding.

Fiscal Quarter Ended July 2, 2011 Compared with Fiscal Quarter Ended July 3, 2010

        Revenues. Total revenues for the second fiscal quarter of 2011 were $887.4 million, compared with $859.6 million for the second fiscal quarter of 2010, an increase of 3.2%. Revenues by segment were as follows:

(In millions)		Second Fiscal Quarter of 2011		Second Fiscal Quarter of 2010		Increase (Decrease	)	Percent Change
Domestic wholesale sportswear	$	203.0	$	219.6	$	(16.6	)	(7.6	%)
Domestic wholesale jeanswear		189.1		189.3		(0.2	)	(0.1	)
Domestic wholesale footwear and accessories		188.4		193.6		(5.2	)	(2.7	)
Domestic retail		166.5		165.0		1.5		0.9
International wholesale		76.6		69.3		7.3		10.5
International retail		53.4		12.5		40.9		327.2
Licensing and other		10.4		10.3		0.1		1.0
Total revenues	$	887.4	$	859.6	$	27.8		3.2	%

        Domestic wholesale sportswear revenues decreased $16.6 million, primarily due to decreased revenues in our Jones New York-related product lines (due to lower customer orders resulting from product performance trends at the retail level and the discontinuance of our Jones New York Suit product line due to product performance at retail) as well as decreased shipments of our Evan-Picone and Kasper product lines (due to product performance at retail). These decreases were partially offset by increased revenues in our Anne Klein and Robert Rodriguez product lines due to positive product performance at retail.

        Domestic wholesale jeanswear revenues decreased $0.2 million, primarily due to reduced shipments of our Gloria Vanderbilt product line (due to the timing of shipments and a reduction in replenishment

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program shipments compared with the prior period's high replenishment volume) and our Energie product line (due to the challenging retail climate in the moderate junior tops business as well as product assortment issues), partially offset by increased shipments of our l.e.i. product line due to the timing of shipments and increased shipments of our Jessica Simpson and Nine West Jeans product lines due to positive product performance at retail.

        Domestic wholesale footwear and accessories revenues decreased $5.2 million, primarily due to decreased shipments of our Easy Spirit product line due to weakness in the athletic and toning categories across the industry, decreased shipments of our Bandolino and Nine West product lines due to product performance at retail and decreased shipments of our licensed Dockers^(R) products due to a major customer discontinuing the product line. These decreases were partially offset by an additional $14.4 million in sales of the acquired Stuart Weitzman product line and increased shipments of our AK Anne Klein product line due to improved and more trend-right product and our Boutique 9 product line due to product performance at retail due to key seasonal trend-right products.

        Domestic retail revenues increased $1.5 million. Revenue increases from a 6.6% increase in comparable store sales ($9.3 million) resulting from positive product performance and $8.2 million related to the acquired Stuart Weitzman stores were largely offset by a net $16.0 million reduction in revenues primarily related to our program to close underperforming locations. We began the current quarter with 723 retail locations and had a net decrease of 20 locations to end the period with 703 locations, compared with 837 locations at the end of the prior period. Our comparable e-commerce business sales increased 10.6% ($1.6 million), our comparable footwear store sales increased 4.9% ($4.4 million) and our comparable apparel store sales increased 9.5% ($3.3 million). Comparable stores are locations (including e-commerce sites) that have been open for a full year, are not scheduled to close in the current period and are not scheduled for an expansion or downsize by more than 25% or relocation to a different street or mall.

        International wholesale revenues increased $7.3 million, primarily due to $8.9 million from the acquisition of Stuart Weitzman Holdings, LLC ("SWH"), $4.2 million of initial shipments of Jones New York product lines in our Mexican wholesale program, $2.3 million from the acquisition of Kurt Geiger and $1.5 million increase in our Canadian business (including a $0.7 million favorable effect of exchange rates between the U.S. and Canadian Dollars), offset by a $9.6 million decrease in our Nine West international business due to the timing of shipments to Asia, a decrease in shipments to our Dubai licensee resulting from the licensee's efforts to reduce inventory levels and the effects of the acquisition of Kurt Geiger.

        International retail revenues increased $40.9 million, primarily due to $35.0 million from the acquisition of Kurt Geiger, $4.0 million of initial sales of Jones New York products in our Spanish retail business, $1.7 million from the acquisition of SWH and a $0.2 million increase in our Canadian business (primarily from a $0.7 million favorable effect of exchange rates between the U.S. and Canadian Dollars partially offset by a $0.5 million reduction in revenues as the result of fewer units sold). We began the period with 97 stores and added 197 with the acquisition of Kurt Geiger (of which 147 are concession locations), to end the period with 294 stores.

        Licensing and other revenues increased $0.1 million, primarily due to increased sales volume of our licensees.

        Gross Profit. The gross profit margins were 36.4% and 36.9% for the second fiscal quarters of 2011 and 2010, respectively.

        Domestic wholesale sportswear gross profit margins were 34.8% and 38.2% for the second fiscal quarters of 2011 and 2010, respectively. The decrease was largely due to higher raw material and labor costs as well as increased sales to off-price retailers at lower recovery rates.

        Domestic wholesale jeanswear gross profit margins were 22.8% and 25.4% for the second fiscal quarters of 2011 and 2010, respectively. The decrease was primarily due to higher raw material and labor costs, lower recoveries on the liquidation of excess inventories, and higher shipments of lower-margin brands such as l.e.i.

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        Domestic wholesale footwear and accessories gross profit margins were 30.5% and 31.8% for the second fiscal quarters of 2011 and 2010, respectively. The decrease was primarily due to higher levels of markdown assistance, higher production costs, higher levels of discounting to liquidate slow-moving inventory and lower recoveries on sales to off-price retailers, partially offset by the mix of products sold as a result of the addition of the Stuart Weitzman product line.

        Domestic retail gross profit margins were 53.9% and 54.3% for the second fiscal quarters of 2011 and 2010, respectively. The decrease was primarily due to increased promotional activity to clear slow-moving inventory, higher production costs and higher freight charges, partially offset by the mix of products sold as a result of the addition of the Stuart Weitzman locations.

        International wholesale gross profit margins were 29.4% and 23.7% for the second fiscal quarters of 2011 and 2010, respectively. The increase was primarily due to the mix of products sold as a result of the additions of the Stuart Weitzman business and the Mexican wholesale program.

        International retail gross profit margins were 54.5% and 59.2% for the second fiscal quarters of 2011 and 2010, respectively. The decrease was primarily due to the mix of products sold as a result of the acquisition of Kurt Geiger.

        Selling, General and Administrative Expenses. SG&A expenses were $278.2 million in the second fiscal quarter of 2011 and $261.9 million in the second fiscal quarter of 2010. The acquisition of SWH and Kurt Geiger added $7.3 million and $22.8 million in SG&A expenses to the second fiscal quarter of 2011, respectively.

        Domestic wholesale sportswear SG&A expenses decreased $14.5 million, primarily due to $10.6 million in adjustments to the Moda acquisition consideration liability, a $1.8 million reduction in advertising costs, a $0.9 million reduction in professional fees, a $0.6 million gain on the purchase of British Pounds related to the Kurt Geiger acquisition and $0.6 million of other net cost decreases.

        Domestic wholesale jeanswear SG&A expenses decreased $3.7 million, primarily due to a $4.0 million decrease in distribution costs, primarily related to costs incurred to shut down our Texas distribution facility in the prior period, a $0.7 million decrease in national advertising costs and a $0.4 million decrease in employee compensation costs, partially offset by a $0.6 million increase in administrative costs and $0.8 million of other net cost increases.

        Domestic wholesale footwear and accessories SG&A expenses increased $11.2 million, primarily due to a net $9.5 million increase in losses recorded related to future costs of leases on buildings we do not currently use, $3.0 million of expenses added as a result of the acquisition of SWH and a $0.9 million increase in administrative costs, partially offset by a $1.4 million decrease in employee compensation costs and $0.8 million of other net cost decreases.

        Domestic retail SG&A expenses decreased $3.6 million, primarily due to a $3.9 million reduction in salaries and benefits, a $2.9 million reduction in occupancy costs and a net $1.2 million reduction in other expenses, as a result of operating fewer stores in the current period, and a $1.9 million write-of of aged merchandise credits, partially offset by $6.3 million related to the stores acquired in the SWH acquisition.

        International wholesale SG&A expenses increased $3.8 million, primarily due to $1.4 million from the acquisition of SWH, $0.8 million related to our new Mexican wholesale program, $0.6 million from the acquisition of Kurt Geiger, a $0.6 million increase in costs in our Canadian business (primarily due to the unfavorable effect of exchange rate differences between the U.S. and Canadian Dollars) and a $0.4 million increase in our Nine West international business (primarily due to increases of $0.2 million in severance costs and $0.2 million in product development costs).

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        International retail SG&A expenses increased $21.3 million, primarily due to $15.4 million from the acquisition of Kurt Geiger, $4.5 million from our new Spanish retail business, $1.1 million from the acquisition of SWH and a net $0.3 increase in costs for our Canadian business (primarily due to a $0.2 million unfavorable effect of exchange rates between the U.S. and Canadian Dollars).

        SG&A expenses for the licensing, other and eliminations segment increased $1.8 million, primarily due to a $2.5 million unfavorable effect of exchange rate differences between the U.S. Dollar and the British Pound primarily related to an intercompany note, a $0.5 million increase in Board of Directors fees, a $0.4 increase in acquisition-related costs and $0.4 million of other net cost increases, partially offset by a $2.0 million reduction in employee compensation costs, primarily related to lower amortization of stock-based compensation.

        Operating Income. The resulting operating income for the second fiscal quarter of 2011 was $44.9 million, compared with $55.3 million for the second fiscal quarter of 2010, due to the factors described above.

        Net Interest Expense. Net interest expense increased $22.7 million, primarily due to a $22.9 million increase in interest recorded on the SWH acquisition consideration liability and a $0.1 million reduction in interest income, partially offset by a $0.2 million reduction of interest and financing costs from our amended revolving secured credit facility. Interest expense was also impacted by a net $5.2 million decrease in interest expense from our interest rate swaps and cap, largely offset by a $5.1 million increase resulting from the issuance of our 6.875% Senior Notes on March 7, 2011.

        Income Taxes. The effective income tax rate was 37.5% and 37.0% for the second fiscal quarters of 2011 and 2010, respectively. The increase is primarily due to the impact of the foreign income tax differential in the second fiscal quarter of 2011, compared with the second fiscal quarter of 2010.

        Net Income and Earnings Per Share. Net income was $5.4 million in the second fiscal quarter of 2011, compared with $25.8 million in the second fiscal quarter of 2010. Diluted earnings per share for the second fiscal quarter of 2011 was $0.06, compared with $0.30 for the second fiscal quarter of 2010, with 0.6% more diluted shares outstanding.

Fiscal Six Months Ended July 2, 2011 Compared with Fiscal Six Months Ended July 3, 2010

        Revenues. Total revenues for the first fiscal six months of 2011 were $1.8 billion, compared with $1.7 billion for the first fiscal six months of 2010, an increase of 5.8%. Revenues by segment were as follows:

(In millions)		First Fiscal Six Months of 2011		First Fiscal Six Months of 2010		Increase (Decrease	)	Percent Change
Domestic wholesale sportswear	$	471.7	$	491.6	$	(19.9	)	(4.0	%)
Domestic wholesale jeanswear		424.6		410.8		13.8		3.4
Domestic wholesale footwear and accessories		409.0		391.2		17.8		4.6
Domestic retail		301.7		299.3		2.4		0.8
International wholesale		155.7		112.6		43.1		38.3
International retail		63.6		20.1		43.5		216.4
Licensing and other		22.4		21.3		1.1		5.2
Total revenues	$	1,848.7	$	1,746.9	$	101.8		5.8	%

        Domestic wholesale sportswear revenues decreased $19.9 million, primarily due to decreased revenues in our Jones New York-related product lines (due to lower customer orders resulting from product performance trends and the discontinuance of our Jones New York Suit product line due to product performance at retail) as well as decreased shipments of our Evan-Picone product line (due to a greater proportion of off-price sales) and our Kasper product line (due to product performance at retail). These decreases were partially offset by increased revenues in our Anne Klein and Robert Rodriguez product lines due to positive product performance at retail.

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        Domestic wholesale jeanswear revenues increased $13.8 million, primarily due to increased shipments of our l.e.i. product line, primarily due to the timing of shipments, and our Jessica Simpson product line, which was launched in the second fiscal quarter of 2010. Nearly all product lines experienced increased shipments due to positive product performance at retail except for Gloria Vanderbilt (due to the timing of shipments and a reduction in replenishment program shipments compared with the prior period's high replenishment volume) and Energie (due to the challenging retail climate in the moderate tops business as well as product assortment issues).

        Domestic wholesale footwear and accessories revenues increased $17.8 million, primarily due to $39.7 million of additional sales of the acquired Stuart Weitzman product line and increased shipments of our AK Anne Klein product line, due to improved and more trend-right product, and our Boutique 9 product line, due to product performance at retail related to key seasonal trend-right products. These increases were partially offset by decreased shipments of our Easy Spirit product line due to weakness in the athletic and toning categories across the industry, decreased shipments of our Bandolino and Nine West product lines due to product performance at retail, and decreased shipments of our licensed Dockers^(R) products due to a major customer discontinuing the product line.

        Domestic retail revenues increased $2.4 million. Revenue increases of $20.6 million related to the acquired Stuart Weitzman stores and a 4.4% increase in comparable store sales ($11.1 million) resulting from positive product performance were partially offset by a net $29.3 million reduction in revenues primarily related to our program to close underperforming locations. We began 2011 with 759 retail locations and had a net decrease of 56 locations to end the period with 703 locations, compared with 837 locations at the end of the prior period. Our comparable e-commerce business sales increased 17.4% ($4.9 million), our comparable footwear store sales increased 1.5% ($2.4 million) and our comparable apparel store sales increased 6.1% ($3.8 million).

        International wholesale revenues increased $43.1 million, primarily due to $31.5 million from the acquisition of SWH, $8.7 million of initial shipments of Jones New York products in our Mexican wholesale program, $2.3 million from the acquisition of Kurt Geiger and $3.4 million increase in our Canadian business (including a $1.4 million favorable effect of exchange rates between the U.S. and Canadian Dollars). These increases were partially offset by a net $2.8 million decrease in our Nine West international business revenues due to the timing of shipments to Asia, a decrease in shipments to our Dubai licensee resulting from the licensee's efforts to reduce inventory levels and the effects of the acquisition of Kurt Geiger, partially offset by increased shipments to our licensees in Canada, Central America and Turkey.

        International retail revenues increased by $43.5 million, primarily due to $35.0 million from the acquisition of Kurt Geiger, $4.5 million of initial sales of Jones New York products in our Spanish retail business, $3.4 million from the acquisition of SWH and a $0.6 million increase in our Canadian business (primarily from a $1.1 million favorable effect of exchange rates between the U.S. and Canadian Dollars offset by a $0.5 million reduction in revenues as the result of lower average unit selling prices). We began the period with 44 stores and added 197 with the acquisition of Kurt Geiger (of which 147 are concession locations) and 53 concession locations for our new Spanish retail business, to end the period with 294 stores.

        Licensing and other revenues increased $1.1 million, primarily due to increased sales volume of our licensees and $0.1 million of SWH licensing revenues not present in the prior year.

        Gross Profit. The gross profit margins were 35.4% and 36.8% for the first fiscal six months of 2011 and 2010, respectively.

        Domestic wholesale sportswear gross profit margins were 34.5% and 38.1% for the first fiscal six months of 2011 and 2010, respectively. The decrease was largely due to higher raw material and labor costs, as well as increased sales to off-price retailers.

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        Domestic wholesale jeanswear gross profit margins were 24.6% and 27.9% for the first fiscal six months of 2011 and 2010, respectively. The decrease was primarily due to higher raw material and labor costs and lower recoveries on the liquidation of excess inventories.

        Domestic wholesale footwear and accessories gross profit margins were 30.8% and 31.8% for the first fiscal six months of 2011 and 2010, respectively. The decrease was primarily due to higher levels of markdown assistance, higher production costs, higher levels of discounting to liquidate slow-moving inventory and lower recoveries on sales to off-price retailers, partially offset by the mix of products sold as a result of the addition of the Stuart Weitzman product line.

        Domestic retail gross profit margins were 51.4% and 52.7% for the first fiscal six months of 2011 and 2010, respectively. The decrease was primarily due to increased promotional activity to clear slow-moving inventory and higher production costs, partially offset by the mix of products sold as a result of the addition of the Stuart Weitzman locations.

        International wholesale gross profit margins were 31.0% and 24.1% for the first fiscal six months of 2011 and 2010, respectively. The increase was primarily due to the mix of products sold as a result of the additions of the Stuart Weitzman business and the Mexican wholesale program.

        International retail gross profit margins were 53.6% and 54.2% for the first fiscal six months of 2011 and 2010, respectively. The decrease was primarily due to the mix of products sold as a result of the acquisition of Kurt Geiger.

        Selling, General and Administrative Expenses. SG&A expenses were $547.7 million in the first fiscal six months of 2011 and $511.8 million in the first fiscal six months of 2010. The acquisitions of SWH and Kurt Geiger added $25.3 million and $22.8 million in SG&A expenses to the first fiscal six months of 2011 and 2010, respectively.

        Domestic wholesale sportswear SG&A expenses decreased $12.5 million, primarily due to $11.6 million in adjustments to the Moda acquisition consideration liability, a $0.9 million reduction in professional fees, a $0.6 million gain on the purchase of British Pounds related to the Kurt Geiger acquisition and $2.7 million of other net cost decreases, partially offset by a $1.4 million increase in compensation costs due to a higher employee headcount, a $1.2 million increase in samples expense and a $0.7 million increase in advertising costs.

        Domestic wholesale jeanswear SG&A expenses decreased $0.4 million, primarily due to a $5.0 million decrease in distribution costs, primarily related to costs incurred to shut down our Texas distribution facility in the prior period, and a $1.3 million decrease in national advertising costs, partially offset by a $1.5 million increase in employee compensation costs, a $1.3 million increase relating to the closure of a South Carolina distribution facility in the prior period, a $1.2 million increase in administrative costs, a $0.7 million increase in royalty expenses and $1.2 million of other net cost increases.

        Domestic wholesale footwear and accessories SG&A expenses increased $20.0 million, primarily due to a net $9.5 million increase in losses recorded related to future costs of leases on buildings we do not currently use, $8.1 million of expenses added as a result of the acquisition of SWH, a $1.7 million increase in administrative costs, a $1.2 million increase in severance costs and $0.1 million of other net cost increases, partially offset by a $0.6 million decrease in employee compensation costs.

        Domestic retail SG&A expenses decreased $4.3 million, primarily due to an $8.8 million reduction in salaries and benefits, a $7.3 million reduction in occupancy costs, a $1.8 million reduction in depreciation expense and $2.2 million of other net cost reductions, as a result of operating fewer stores in the current period, and a $1.9 million write-of of aged merchandise credits, partially offset by $14.5 million related to the stores acquired in the SWH acquisition, a $2.2 million increase in distribution costs and a $1.0 million increase in marketing expenses, primarily related to our e-commerce business.

        International wholesale SG&A expenses increased $11.7 million, primarily due to $5.1 million from the acquisition of SWH, $1.6 million related to our new Mexican wholesale program, $0.6 million from

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the acquisition of Kurt Geiger, a $2.7 million increase in costs in our Canadian business (primarily due to a $1.2 million unfavorable effect of exchange rate differences between the U.S. and Canadian Dollars and $0.8 million of severance costs) and a $1.7 million increase in our Nine West international business (primarily due to increases of $0.8 million in severance costs, $0.4 million in product development costs and $0.3 million in marketing costs).

        International retail SG&A expenses increased $23.6 million, primarily due to $15.4 million from the acquisition of Kurt Geiger, $5.6 million from our new Spanish retail business, $2.4 million from the acquisition of SWH and a net $0.2 million increase in costs for our Canadian business (primarily due to the unfavorable effect of exchange rates between the U.S. and Canadian Dollars).

        SG&A expenses for the licensing, other and eliminations segment decreased $2.2 million, primarily due to a $3.5 million reduction in employee compensation costs (primarily related to lower amortization of stock-based compensation), a $0.7 million decrease in acquisition costs and $0.5 million of other net cost decreases, partially offset by a $2.5 million unfavorable effect of exchange rate differences between the U.S. Dollar and the British Pound, primarily related to an intercompany note.

        Operating Income. The resulting operating income for the first fiscal six months of 2011 was $106.1 million, compared with $131.6 million for the first fiscal six months of 2010, due to the factors described above.

        Net Interest Expense. Net interest expense increased $31.9 million, primarily due to $31.8 million of interest recorded on the SWH acquisition consideration liability, a $0.4 million reduction in interest income and $0.1 million of other net increases, partially offset by a $2.2 million reduction of interest and financing costs from our amended revolving secured credit facility. Interest expense was also impacted by a $6.6 million increase resulting from the issuance of our 6.875% Senior Notes on March 7, 2011 and a net $4.8 million decrease from our interest rate swaps and cap.

        Income Taxes. The effective income tax rate was 37.5% and 37.0% for the first fiscal six months of 2011 and 2010, respectively. The increase is primarily due to the impact of the foreign income tax differential in the first fiscal six months of 2011 compared with the first fiscal six months of 2010.

        Net Income and Earnings Per Share. Net income was $31.2 million in the first fiscal six months of 2011, compared with $65.2 million in the first fiscal six months of 2010. Diluted earnings per share for the first fiscal six months of 2011 was $0.36, compared with $0.75 for the first fiscal six months of 2010, with 0.8% more diluted shares outstanding.

Liquidity and Capital Resources

        Our principal capital requirements have been for working capital needs, capital expenditures, dividend payments, acquisition funding and repurchases of our common stock on the open market. We have historically relied on internally generated funds, trade credit, bank borrowings and the issuance of notes to finance our operations. We currently fund our operations primarily through cash generated by operating activities, and rely on our revolving credit facility for the issuance of trade letters of credit for the purchases of inventory and for cash borrowings as needed. As of July 2, 2011, total cash and cash equivalents were $146.4 million, a decrease of $54.4 million from the $200.8 million reported as of December 31, 2010.

        Cash flows from operating activities provided $65.6 million and $26.0 million in the first fiscal six months of 2011 and 2010, respectively. The change from the prior period was primarily due to changes in working capital. Accounts receivable increased less in the current period primarily due to the timing of shipments and collections compared with the prior period. Inventory increased less in the current period primarily due to the timing of receipts. Accounts payable increased in the current period compared to a decrease in the prior period primarily due to the timing of inventory and related payments. We also paid $24.4 million of accrued Kurt Geiger interest subsequent to the acquisition.

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        Cash flows from investing activities used $192.6 million and $189.9 million in the first fiscal six months of 2011 and 2010, respectively, for the purchases of property and equipment in both periods and the acquisitions of Kurt Geiger in 2011 and Moda and SWH in 2010.

        Cash flows from financing activities provided $73.8 million in the first fiscal six months of 2011, primarily as the result of the issuance of $300.0 million of 6.875% Senior Notes due 2019 (the "2019 Notes"). Uses of cash during this period were primarily for the repayment of acquired Kurt Geiger debt, debt issuance and financing costs, the repurchase of our common stock, the payment of dividends and payments related to the acquisition consideration payable from the SWH acquisition.

        In March 2011, we issued the 2019 Notes. Net proceeds were $293.3 million, of which $45.0 million was used to repay amounts then outstanding under our secured revolving credit agreement.

        Cash flows from financing activities used $36.6 million in the first fiscal six months of 2010, primarily for distributions to the former owners of SWH, the payment of dividends and principal payments on capitalized leases.

        We repurchased 2.2 million shares of our common stock for $28.0 million on the open market during the first fiscal six months of 2011 and no common stock during the first fiscal six months of 2010. As of July 2, 2011, $265.4 million of Board authorized repurchases was still available. We may make additional share repurchases in the future depending on, among other things, market conditions and our financial condition.

        We have a secured revolving credit agreement expiring on April 28, 2016 (the "Credit Facility") with several lending institutions to borrow an aggregate principal amount of up to $650 million. On April 28, 2011, we completed an amendment and restatement of our Credit Facility. The amended and restated terms and conditions provide for an extension of the maturity date from May 13, 2015 to April 28, 2016. The amendment and restatement also provides for, among other things, the following changes to the Credit Facility: (1) a split of the Credit Facility into a $350 million U.S. commitment which may be drawn by the U.S. borrowers as revolving loans or letters of credit in U.S. dollars, and a $300 million international commitment which may be drawn by the U.S. borrowers or by any Canadian or European borrowers as revolving loans or letters of credit in Euros, sterling, Canadian dollars, or U.S. dollars; (2) reductions in the interest rate spreads and commitment fees payable under the Credit Facility; (3) the addition of separate borrowing bases in each relevant European country, similar to the U.S. borrowing base (with variations in accordance with local law or practice); (4) changes in the U.S. borrowing base eligibility criteria for inventory in or in transit to Canada; (5) an increase in the cap on swingline loans; (6) reductions in the various availability levels below which (x) dominion periods are triggered, and (y) the borrowers must comply with certain financial and other covenants; (7) increases in various debt baskets, including a lifting of limits on the general unsecured debt basket and on unsecured and secured debt incurred by non-U.S. subsidiaries that are not loan parties, an increase in the general lien basket, and the addition of a new lien basket for financings secured by intellectual property; (8) increases in various investments baskets and the addition of a new investments basket; (9) an increase in the general asset sales basket; and (10) reductions in the various thresholds to be met before we can make restricted payments or can prepay our bonds maturing in 2014.

        Borrowings under the Credit Facility may be used to refinance existing indebtedness, to make certain investments (including acquisitions), and for general corporate purposes in the ordinary course of business. Such borrowings bear interest either based on the alternate base rate, as defined in the Credit Facility, or based on Eurocurrency rates, each with a margin that depends on the availability remaining under the Credit Facility. The Credit Facility contains customary events of default.

        Availability under the Credit Facility is determined with reference to a borrowing base consisting of a percentage of eligible inventory, accounts receivable, credit card receivables and licensee receivables, minus reserves determined by the joint collateral agents. At July 2, 2011, we had no cash borrowings and $26.3 million of letters of credit outstanding, and our remaining availability was $456.4 million. If availability under the Credit Facility falls below a stated level, we will be required to comply with a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative and negative

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covenants that, among other things, will limit or restrict our ability to (1) incur indebtedness, (2) create liens, (3) merge, consolidate, liquidate or dissolve, (4) make investments (including acquisitions), loans or advances, (5) sell assets, (6) enter into sale and leaseback transactions, (7) enter into swap agreements, (8) make certain restricted payments (including dividends and other payments in respect of capital stock), (9) enter into transactions with affiliates, (10) enter into restrictive agreements, and (11) amend material documents. The Credit Facility is secured by a first priority lien on substantially all of our personal property.

        SWH has a $1.5 million unsecured borrowing facility with a lending institution that expires on October 1, 2011 and is renewable on an annual basis, under which no cash borrowings and $1.1 million in letters of credit were outstanding at July 2, 2011. Cash borrowings under this facility bear interest based on either the prevailing prime rate or the prevailing LIBOR rate plus 300 basis points. SWH also has a €0.3 million variable-rate unsecured borrowing facility with a European lending institution that expires in March 2012 and is renewable on an annual basis, under which no amounts were outstanding at July 2, 2011.

        On July 27, 2011, we announced that our Board of Directors had declared a quarterly cash dividend of $0.05 per share to all common stockholders of record as of August 12, 2011 for payment on August 26, 2011.

Economic Outlook
        The uncertain economic and political environments have resulted in fluctuating consumer confidence. Rising energy, gasoline and other prices are reducing consumers' discretionary income. This may lead to reduced consumer spending from recent experience, which could affect our net sales and our future profitability. Reduced consumer spending, combined with rising costs related to changes in foreign exchange rates, increasing labor costs (primarily in Asia), commodity prices and increasing transportation costs, may reduce our gross profit margins from present levels. We may be limited in our ability to increase our selling prices to offset rising costs. Should the consumer not accept higher retail prices for our products, these rising costs would have a material adverse effect on our business.

        Our products are manufactured in many foreign countries, including China, Brazil and Spain. Due to the current and expected future economic relationship between the United States and China, we may experience increased risk related to changes in foreign currency exchange rates should China allow the Yuan to rise in value against the Dollar. We may also experience increased risk related to changes in foreign currency rates between the Euro, British Pound and the Dollar due to economic conditions in Europe. Should either of these occur, increased production costs for our goods manufactured in China and Spain could result.

        When adverse economic conditions exist in the United States or abroad, we may experience increased risk related to the collectibility of our accounts receivable, and we may increase our provision for doubtful accounts in the future should any of our wholesale customers experience significant financial difficulties. If such conditions lead to defaults that are individually or cumulatively significant, we could experience a material adverse impact on our financial condition, results of operations and/or liquidity.

        The economic turmoil in the credit markets over the past several years and the negative effects of the economic environment on our business may negatively impact our ability to borrow funds in the future. However, we believe that available cash and cash equivalents, funds generated by operations and the Credit Facility will provide the financial resources sufficient to meet our foreseeable working capital, dividend, capital expenditure and stock repurchase requirements and fund our contractual obligations and our acquisition liabilities and commitments. Although there can be no assurances, we believe that the participating banks will be willing and able to loan funds to us in accordance with their legal obligations under the Credit Facility.

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New Accounting Standards

        In April 2011, FASB issued ASU 2011-02, "Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring." ASU 2011-02 provides amendments to Topic 310 to clarify which loan modifications constitute troubled debt restructurings. It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment loss and for disclosure of troubled debt restructurings. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption. Early adoption is permitted. The adoption of ASU No. 2011-02 will not have an impact on our results of operations or our financial position.

        In May 2011, FASB issued ASU No. 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." ASU 2011-04 amends Topic 820 to provide common fair value measurement and disclosure requirements

in U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and International Financial Reporting Standards. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements, as well as providing guidance on how fair value should be applied where its use is already required or permitted by other standards within U.S. GAAP. ASU No. 2011-04 is to be applied prospectively, and early adoption is not permitted. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. The adoption of ASU No. 2011-04 is not expected to have a material impact on our results of operations or our financial position.

        In June 2011, FASB issued ASU 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income." ASU 2011-05 eliminates the option that permits the presentation of other comprehensive income in the statement of changes in equity and requires presenting components of net income and comprehensive income in either a one-statement approach with totals for both net income and comprehensive income, or a two-statement approach where a statement presenting the components of net income and total net income must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income. For public companies, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should be applied retrospectively. Early adoption is permitted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market Risk Sensitive Instruments

        We are exposed to the impact of interest rate changes, foreign currency fluctuations, and changes in the market value of our fixed rate long-term debt. We manage this exposure through regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Our policy allows the use of derivative financial instruments for identifiable market risk exposures, including interest rate and foreign currency fluctuations. We do not enter into derivative financial contracts for trading or other speculative purposes. The following quantitative disclosures were derived using quoted market prices, yields and theoretical pricing models obtained through independent pricing sources for the same or similar types of financial instruments, taking into consideration the underlying terms, such as the coupon rate, term to maturity and imbedded call options. Certain items such as lease contracts, insurance contracts, and obligations for pension and other post-retirement benefits were not included in the analysis. For further information see "Derivatives" and "Financial Instruments" in the Notes to Consolidated Financial Statements.

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Interest Rates

        Our primary interest rate exposures relate to the fair value of our fixed rate long-term debt and interest expense related to our revolving credit facility.

        At July 2, 2011, the fair value of our fixed rate debt was $749.6 million. On that date, the potential decrease in fair value of our fixed rate long-term debt instruments resulting from a hypothetical 10% adverse change in interest rates was approximately $68.1 million.

        Our primary interest rate exposures on variable rate credit facilities are with respect to United States and Canadian short-term rates. Cash borrowings under these facilities bear interest at rates that vary with changes in prevailing market rates. At July 2, 2011, we had $651.9 million in variable rate credit facilities, under which no cash borrowings and $26.3 million of letters of credit were outstanding.

        At July 2, 2011, we had outstanding interest rate swaps to convert our $250 million 5.125% Senior Notes due 2014 (the "2014 Notes") and $150 million of our $300 million 6.875% Senior Notes due 2019 (the "2019 Notes") to variable-rate debt and an interest rate cap to limit our exposure to increases in the variable rates of our interest rate swaps on the 2014 Notes.

        Under the terms of the swap contracts related to the 2014 Notes, we are required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.46%, and the counterparties are obligated to make semiannual fixed-rate payments to us of 5.125%. We also entered into an interest rate cap, at a cost of $2.7 million, which limits our three-month LIBOR rate exposure to 5.0%. These swap and cap transactions have a termination date of November 15, 2014, the date the 2014 Notes mature.

        Under the terms of the swap contracts related to the 2019 Notes, we are required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.73%, and the counterparties are obligated to make semiannual fixed-rate payments to us of 6.875%. These swap transactions have a termination date of March 15, 2019, the date the 2019 Notes mature.

        At July 2, 2011, the fair value of the interest rate swaps was an asset of $5.1 million and the fair value of the interest rate cap was an asset of $0.6 million.

Foreign Currency Exchange Rates

        We are exposed to market risk related to changes in foreign currency exchange rates. Our products have historically been purchased from foreign manufacturers in pre-set United States dollar prices. With the acquisition of SWH and Kurt Geiger, we also purchase certain products in Euros. We also have assets, liabilities and intercompany accounts denominated in certain foreign currencies that generate exchange gains and losses as exchange rates change. To date, we generally have not been materially adversely affected by fluctuations in exchange rates.

        At July 2, 2011, we had outstanding foreign exchange contracts to exchange Canadian Dollars for a total notional value of US$10.3 million at a weighted-average exchange rate of 1.02 maturing through November 2011 and to exchange British Pounds for Euros for a total notional value of €2.4 million at a weighted-average exchange rate of 1.15 maturing through September 2011. We also had options to exchange British Pounds for U.S. Dollars for a notional value of $2.5 million at an exchange rate of 1.47 through September of 2011. The fair value of these contracts at July 2, 2011 was a net $0.5 million unrealized loss. We believe that these financial instruments should not subject us to undue risk due to foreign exchange movements, because gains and losses on these contracts should offset losses and gains on the assets, liabilities, and transactions being hedged. We are exposed to credit-related losses if the counterparty to a financial instrument fails to perform its obligation. However, we do not expect the counterparties, which presently have high credit ratings, to fail to meet their obligations.

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Item 4. Controls and Procedures

        As required by Exchange Act Rule 13a-15(b), we carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based upon this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that both our disclosure controls and procedures and our internal controls and procedures are designed to provide and are effective in providing reasonable assurance in timely alerting them to material information required to be included in our periodic SEC filings and ensuring that information required to be disclosed by us in these periodic filings is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that our internal controls are effective in ensuring that our financial statements are fairly presented in conformity with generally accepted accounting principles.

        We have made changes to our internal controls and procedures over financial reporting to address the implementation of SAP, an enterprise resource planning ("ERP") system. SAP will integrate our operational and financial systems and expand the functionality of our financial reporting processes. We began the process of implementing SAP throughout The Jones Group Inc. and our consolidated subsidiaries during the fourth quarter of 2006. During the second fiscal quarter of 2011, no additional businesses were converted to this system. We have adequately controlled the transition to the new processes and controls, with no negative impact to our internal control environment. We expect to continue the implementation of this system to all locations over a multi-year period. As the phased implementation occurs, we will experience changes in internal control over financial reporting each quarter. We expect this ERP system to further advance our control environment by automating manual processes, improving management visibility and standardizing processes as its full capabilities are utilized.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

        We have been named as a defendant in various actions and proceedings arising from our ordinary business activities. Although the amount of any liability that could arise with respect to these actions cannot be accurately predicted, in our opinion, any such liability will not have a material adverse financial effect on us.

Item 2. Issuer Purchase of Equity Securities

        The following table sets forth the repurchases of our common stock for the fiscal quarter ended July 2, 2011.

Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Unit)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 3, 2011 to April 30, 2011	-	-	-	$283,429,384
May 1, 2011 to May 28, 2011	1,018,400	$12.77	1,018,400	$270,423,828
May 29, 2011 to  July 2, 2011	436,603	$11.49	436,603	$265,405,884
Total	1,455,003	$12.39	1,455,003	$265,405,884

- 41 -

        These purchases were made under a program announced on September 6, 2007 for $500.0 million. This program has no expiration date.

Item 5. Other information

STATEMENT REGARDING FORWARD-LOOKING DISCLOSURE

        This Report includes, and incorporates by reference, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding our 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 our expectations or beliefs concerning future events that involve risks and uncertainties, including:

• those associated with the effect of national, regional and international economic conditions;
• lowered levels of consumer spending resulting from a general economic downturn or lower levels of consumer confidence;
• the tightening of the credit markets and our ability to obtain capital on satisfactory terms;

• given the uncertain economic environment, the possible unwillingness of committed lenders to meet their obligations to lend to borrowers, in general;
• he performance of our products within the prevailing retail environment;
• customer acceptance of both new designs and newly-introduced product lines;
• our reliance on a few department store groups for large portions of our business;
• our ability to identify acquisition candidates and, in a competitive environment for such acquisitions, acquire such businesses on reasonable financial and other terms;
• the integration of the organizations and operations of any acquired business into our existing organization and operations;
• consolidation of our retail customers;
• financial difficulties encountered by our customers;
• the effects of vigorous competition in the markets in which we operate;
• our ability to attract and retain qualified executives and other key personnel;
• our reliance on independent foreign manufacturers, including political instability in countries where contractors and suppliers are located;
• changes in the costs of raw materials, labor, advertising and transportation, including the impact such changes may have on the pricing of our products and the resulting impact on consumer acceptance of our products at higher price points;
• our ability to successfully implement new operational and financial computer systems; and
• our ability to secure and protect trademarks and other intellectual property rights.

        All statements other than statements of historical facts included in this Report, including, without limitation, the statements under "Management's Discussion and Analysis of Financial Condition and Results of Operations," are forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. Important factors that could cause actual results to differ materially from our expectations ("Cautionary Statements") are disclosed in this Report in conjunction with the forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements. We do not undertake to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise.

Item 6. Exhibits

    See Exhibit Index.

- 42 -

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

THE JONES GROUP INC.
(Registrant)

Date: July 29, 2011 By          /s/ Wesley R. Card
WESLEY R. CARD
Chief Executive Officer

By          /s/ John T. McClain
JOHN T. McCLAIN
Chief Financial Officer

- 43 -

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
10.1*	Amendment No. 1 to Amended and Restated Credit Agreement, dated as of July 12, 2011, by and among The Jones Group Inc., the other borrowers and subsidiaries party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian administrative agent, J.P. Morgan Europe Limited as European administrative agent and European collateral agent, JPMorgan Chase Bank, N.A. as U.S. collateral agent, Citibank, N.A., as syndication agent, and Bank of America, N.A., Wells Fargo Bank, National Association and SunTrust Bank, as documentation agents.
31*	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32o	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase.
101.LAB*	XBRL Taxonomy Extension Label Linkbase.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase.

____________
* Filed herewith.
^o Furnished herewith.

- 44 -

EX-10

Exhibit 10.1

AMENDMENT NO. 1
TO
AMENDED AND RESTATED CREDIT AGREEMENT

        AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of July 12, 2011 (this "Agreement"), among THE JONES GROUP INC. (the "Company"), JONES APPAREL GROUP HOLDINGS, INC., JONES APPAREL GROUP USA, INC., JAG FOOTWEAR, ACCESSORIES AND RETAIL CORPORATION, JONES INVESTMENT CO. INC., JONES JEANSWEAR GROUP, INC., NINE WEST DEVELOPMENT CORPORATION and JONES JEWELRY GROUP, INC., as the U.S. Borrowers, JONES APPAREL GROUP CANADA, LP, as Canadian Borrower (together with the U.S. Borrowers, the "Borrowers"), the various Subsidiaries of the Company parties hereto, the Lenders parties hereto, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the "Administrative Agent"), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as administrative agent for the International Revolving Lenders (in such capacity, the "Canadian Administrative Agent") and J.P. MORGAN EUROPE LIMITED, as administrative agent for the International Revolving Lenders (in such capacity, the "European Administrative Agent").

W I T N E S S E T H:

        WHEREAS, the Borrowers, the Lenders, the Administrative Agent, the Canadian Administrative Agent and the European Administrative Agent are parties to the Amended and Restated Credit Agreement, dated as of April 28, 2011 (the "Credit Agreement");

        WHEREAS, the Borrowers have requested that certain amendments be made to the Credit Agreement on the terms set forth herein; and

        WHEREAS, the Lenders are willing, subject to the terms and conditions hereinafter set forth, to consent and agree to such amendments;

        NOW, THEREFORE, in consideration of the agreements herein contained, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

        SECTION 1.1 Certain Definitions. The following terms (whether or not underscored) when used in this Agreement shall have the following meanings:

"Administrative Agent" is defined in the preamble.

"Agreement" is defined in the preamble.

"Borrowers" is defined in the preamble.

"Canadian Administrative Agent" is defined in the preamble.

"Company" is defined in the preamble.

"Credit Agreement" is defined in the first recital.

"Effective Date" is defined in Section 5.1.

"European Administrative Agent" is defined in the preamble.

        SECTION 1.2 Other Definitions. Unless otherwise defined or the context otherwise requires, terms used herein (including in the preamble and recitals hereto) have the meanings provided for in the Credit Agreement.

ARTICLE II

AMENDMENTS

        Effective on (and subject to the occurrence of) the Effective Date, the Credit Agreement is amended as follows:

                SECTION 2.1 Amendments to Section 2.06(a) of the Credit Agreement.

        Section 2.06(a) of the Credit Agreement is amended and restated in its entirety as follows:

        "(a) General. Subject to the terms and conditions set forth herein, the Borrower Representative may request the issuance of Letters of Credit denominated in Dollars, Canadian Dollars or an LC Alternative Currency (in the case of U.S. Letters of Credit), Canadian Dollars (in the case of Canadian Letters of Credit) and Dollars, Sterling, Euros or an LC Alternative Currency (in the case of European Letters of Credit) for its own account or for the account of another Borrower, in a form reasonably acceptable to each Applicable Administrative Agent, and the applicable U.S. Issuing Bank (in the case of U.S. Letters of Credit), the applicable Canadian Issuing Bank (in the case of Canadian Letters of Credit) or the applicable European Issuing Bank (in the case of European Letters of Credit), at any time and from time to time during the Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrowers to, or entered into by the Borrowers with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control."

                SECTION 2.2 Amendments to Section 2.06(b) of the Credit Agreement.

        Section 2.06(b) of the Credit Agreement is amended and restated in its entirety as follows:

        "(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower Representative shall hand deliver or facsimile (or transmit by electronic communication, if arrangements for doing so have been approved by the applicable U.S. Issuing Bank (in the case of U.S. Letters of Credit), the applicable Canadian

2

Issuing Bank (in the case of Canadian Letters of Credit) or the applicable European Issuing Bank (in the case of European Letters of Credit)) to (1) the applicable U.S. Issuing Bank (in the case of U.S. Letters of Credit), the applicable Canadian Issuing Bank (in the case of Canadian Letters of Credit) or the applicable European Issuing Bank (in the case of European Letters of Credit) and (2) the Administrative Agent (in the case of U.S. Letters of Credit), the Canadian Administrative Agent with a copy to the Administrative Agent (in the case of Canadian Letters of Credit) and the European Administrative Agent (in the case of European Letters of Credit) with a copy to the Administrative Agent, in each case prior to 9:00 a.m., Local Time, at least three Business Days prior to the requested date of issuance, amendment, renewal or extension, a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the currency in which such Letter of Credit will be denominated (which (x) shall be Dollars, Canadian Dollars or any LC Alternative Currency in the case of U.S. Letters of Credit, (y) shall be Dollars or Canadian Dollars in the case of Canadian Letters of Credit and (z) shall be Dollars, Sterling, Euros or any LC Alternative Currency in the case of European Letters of Credit), the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit, which notice shall, in the case of any European Letter of Credit, attach thereto the form of Letter of Credit to be issued that has been agreed to by the European Administrative Agent. If requested by the applicable Issuing Bank, the applicable Borrower also shall submit a letter of credit application on such Issuing Bank's standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrowers shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the aggregate LC Exposure shall not exceed $350,000,000, (ii) the Standby LC Exposure shall not exceed $50,000,000, (iii) the Commercial LC Exposure shall not exceed $350,000,000, (iv) the LC Exposure on account of Commercial Letters of Credit and Standby Letters of Credit denominated in an LC Alternative Currency that are issued pursuant to the U.S. Commitment shall not exceed $150,000,000, (v) the International A LC Exposure shall not exceed $10,000,000, (vi) the International B LC Exposure shall not exceed $40,000,000, (vii) the Standby LC Exposure with respect to all the International A Borrowers shall not exceed $2,000,000, (viii) the Standby LC Exposure with respect to all the International B Borrowers shall not exceed $8,000,000, (ix) the Commercial LC Exposure with respect to all the International A Borrowers shall not exceed $8,000,000, (x) the Commercial LC Exposure with respect to all the International B Borrowers shall not exceed $32,000,000 and (viii) the Borrowers shall be in compliance with the Revolving Exposure Limitations."

                SECTION 2.3 Amendments to Section 2.06(i) of the Credit Agreement.

        Section 2.06(i) of the Credit Agreement is amended and restated in its entirety as follows:

        "(i) Interim Interest. If any Issuing Bank shall make any LC Disbursement, then, unless the Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrowers reimburse such LC

3

Disbursement, (i) in the case of LC Disbursements in respect of U.S. Letters of Credit or Canadian Letters of Credit made in Dollars, at the rate per annum then applicable to ABR Loans, (ii) in the case of an LC Disbursement in respect of Canadian Letters of Credit made in Canadian Dollars, at the rate per annum then applicable to Canadian Prime Rate Loans, and (iii) in the case of an LC Disbursement in respect of European Letters of Credit or any U.S. Letters of Credit made in an LC Alternative Currency, at the Overnight LIBO Rate plus the Overnight LIBO Spread as set forth in the definition of "Applicable Rate"; provided that, if the Borrowers fail to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(e) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Revolving Lender to the extent of such payment."

ARTICLE III

REPRESENTATIONS AND WARRANTIES

        In order to induce the Lenders to approve all of the amendments that are provided for in Article II, each Borrower hereby (a) represents and warrants that (i) each of the representations and warranties of the Loan Parties contained in the Credit Agreement and in the other Loan Documents is true and correct in all material respects as of the date hereof as if made on the date hereof (except, if any such representation and warranty relates to an earlier date, such representation and warranty is true and correct in all material respects as of such earlier date); and (ii) both immediately before and after giving effect to the provisions of this Agreement no Default or Event of Default has occurred and is continuing; and (b) agrees that the incorrectness in any material respect of any representation and warranty contained in the preceding clause (a) shall constitute an immediate Event of Default. Without limiting the foregoing, each Borrower hereby (i) ratifies and confirms all of the terms, covenants and conditions set forth in the Loan Documents and hereby agrees that it remains liable to the Administrative Agent and the Lenders in accordance with the terms, covenants and conditions set forth in the Loan Documents, and all Liens on the Collateral created pursuant to the Collateral Documents continue unimpaired and in full force and effect, and (ii) waives all defenses, claims, counterclaims, rights of recoupment or set-off against any of its Obligations as provided in the Loan Documents.

ARTICLE IV

ACKNOWLEDGMENT OF LOAN GUARANTORS

        By executing this Agreement, each Loan Guarantor hereby confirms and agrees that each Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Effective Date each reference therein to the Credit Agreement shall refer to the Credit Agreement after giving effect to this Agreement. Without limiting the foregoing, each such Loan Guarantor waives all defenses, claims, counterclaims, rights of recoupment or set-off with respect to any of such Loan Guarantor's Obligations as provided in the Loan Documents.

4

ARTICLE V

CONDITIONS TO EFFECTIVENESS; EXPIRATION; CONDITION SUBSEQUENT

                SECTION 5.1 Effective Date. This Agreement shall become effective on such date (herein called the "Effective Date") when the conditions set forth in this Section have been satisfied.

                SECTION 5.1.1 Execution of Agreement. The Administrative Agent shall have received counterparts of this Agreement duly executed and delivered on behalf of the Borrowers, the Loan Guarantors, the Administrative Agent and all the Lenders.

                SECTION 5.1.2 Representations and Warranties. The representations and warranties made by the Borrowers pursuant to Article III shall be true and correct as of the Effective Date.

ARTICLE VI

MISCELLANEOUS

                SECTION 6.1 Cross-References. References in this Agreement to any Article or Section are, unless otherwise specified, to such Article or Section of this Agreement.

                SECTION 6.2 Loan Document Pursuant to the Credit Agreement. This Agreement is a Loan Document executed pursuant to the Credit Agreement. Except as expressly provided for herein, all of the representations, warranties, terms, covenants and conditions contained in the Credit Agreement and each other Loan Document shall remain unamended or otherwise unmodified and in full force and effect.

                SECTION 6.3 Limitation of Amendments. The amendments set forth in Article II shall be limited precisely as provided for herein and shall not be deemed to be a waiver of, amendment of, consent to or modification of any other term or provision of the Credit Agreement or of any term or provision of any other Loan Document or of any transaction or further or future action on the part of any Borrower or any other Loan Party which would require the consent of any of the Lenders under the Credit Agreement or any other Loan Document.

                SECTION 6.4 Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.

                SECTION 6.5 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

                SECTION 6.6 Further Assurances. Each Borrower shall execute and deliver, and shall cause each other Loan Party to execute and deliver, from time to time in favor of the Administrative Agent and the Lenders such documents, agreements, certificates and other instruments as shall be necessary or advisable to effect the purposes of this Agreement.

5

                SECTION 6.7 Costs and Expenses. The Borrowers agree to pay all reasonable costs and expenses of the Administrative Agent (including the reasonable fees and out-of-pocket expenses of legal counsel of the Administrative Agent) that are incurred in connection with the execution and delivery of this Agreement and the other agreements and documents entered into in connection herewith.

                SECTION 6.8 GOVERNING LAW; WAIVER OF JURY TRIAL; ENTIRE AGREEMENT. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH PERSON A PARTY HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY AGREEMENT OR DOCUMENT ENTERED INTO IN CONNECTION HEREWITH. THIS AGREEMENT CONSTITUTES THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDES ANY PRIOR AGREEMENT, WRITTEN OR ORAL, WITH RESPECT HERETO.

6

                IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

BORROWERS:
THE JONES GROUP INC.,
a Pennsylvania corporation
JONES APPAREL GROUP HOLDINGS, INC.,
a Delaware corporation
JONES APPAREL GROUP USA, INC.,
a Delaware corporation
JAG FOOTWEAR, ACCESSORIES AND RETAIL CORPORATION,
a New Jersey corporation
JONES INVESTMENT CO. INC.,
a Delaware corporation
NINE WEST DEVELOPMENT CORPORATION, a Delaware corporation
JONES JEANSWEAR GROUP, INC.,
a New York corporation
JONES JEWELRY GROUP, INC.,
a Rhode Island corporation

By  /s/ Joseph T. Donnalley
     Name: Joseph T. Donnalley
     In his capacity as officer for each aforenamed Borrower
     as set forth opposite such Borrower on Schedule I
     attached hereto

JONES APPAREL GROUP CANADA, LP,
an Ontario Limited Partnership

By: JONES CANADA, INC., its General Partner

By  /s/ Roger Flores
     Name: Roger Flores
     Title: Vice President of Finance

LOAN GUARANTORS:
JONES DISTRIBUTION CORPORATION,
a Delaware corporation
JONES MANAGEMENT SERVICE
COMPANY,
a Delaware corporation
JONES HOLDING, INC.,
a Delaware corporation

By  /s/ Joseph T. Donnalley
     Name: Joseph T. Donnalley
     In his capacity as officer for each aforenamed Guarantor
     as set forth opposite such Guarantor on Schedule I
     attached hereto

JPMORGAN CHASE BANK, N.A., as Revolving
Lender, Issuing Bank and Administrative Agent
 

By  /s/ Donna M. DiForio
     Name: Donna M. DiForio
     Title: Vice PResident
 

JPMORGAN CHASE BANK, N.A., TORONTO
BRANCH, as International Revolving Lender,
Issuing Bank and Canadian Administrative Agent

By  /s/ Auggie Marchetti
     Name: Auggie Marchetti
     Title: Vice President & Region Manager

J. P. MORGAN EUROPE LIMITED, as European
Administrative Agent

By  /s/ Tim Jacob
     Name: Tim Jacob
     Title: Senior Vice President

GENERAL ELECTRIC CAPITAL
CORPORATION, as a Revolving Lender

By  /s/ Philip F. Carfora
     Name: Philip F. Carfora
     Title: Duly Authorized Signatory

CITIBANK, N.A., as a Revolving Lender and
Issuing Bank

By  /s/ Michael Smolow
     Name: Michael Smolow
     Title: Vice President
 

BANK OF AMERICA, N.A., as a Revolving
Lender

By  /s/ David Vega
     Name: David Vega
     Title: Managing Director
 

BANK OF AMERICA, N.A.(acting through its
Canada Branch), as Canadian Lender

By  /s/ Medina Sales de Andrade
     Name: Medina Sales de Andrade
     Title: Vice President

WELLS FARGO BANK, NATIONAL
ASSOCIATION, as a Revolving Lender and
Issuing Bank

By  /s/ Reza Sabahi
     Name: Reza Sabahi
     Title: Authorized Signatory

CIT BANK, as a Revolving Lender

By  /s/ Benjamin Haslam
     Name: Benjamin Haslam
     Title: Authorized Signatory

PNC BANK, NATIONAL ASSOCIATION as a
Revolving Lender

By  /s/ Robert T. Orzechowski
     Name: Robert T. Orzechowski
     Title: Vice President

U.S. BANK NATIONAL ASSOCIATION, as a
Revolving Lender

By  /s/ Jeffrey S. Gruender
     Name: Jeffrey S. Gruender
     Title: Vice President

CAPITAL ONE LEVERAGE FINANCE CORP.,
as a Revolving Lender

By  /s/ Ron Walker
     Name: Ron Walker
     Title: Senior Vice President

HSBC BANK USA, N.A., as a Revolving Lender

By  /s/ Kysha A. Pierre-Louis
     Name: Kysha A. Pierre-Louis
     Title: Vice President


ROYAL BANK OF CANADA, as a Revolving
Lender

By  /s/ John Flores
     Name: John Flores
     Title: Authorized Signatory

GOLDMAN SACHS LENDING PARTNERS
LLC, as a Revolving Lender

By  /s/ Lauren Day
     Name: Lauren Day
     Title: Authorized Signatory

SCHEDULE I

BORROWER/LOAN GUARANTOR	FINANCIAL OFFICER NAME & TITLE
JONES APPAREL GROUP USA, INC.	Joseph Donnalley Treasurer
THE JONES GROUP INC.	Joseph Donnalley Treasurer and Senior Vice President, Corporate Taxation and Risk Management
JONES APPAREL GROUP HOLDINGS, INC.	Joseph Donnalley Treasurer
JAG FOOTWEAR, ACCESSORIES AND RETAIL CORPORATION	Joseph Donnalley Vice President and Treasurer
JONES INVESTMENT CO. INC.	Joseph Donnalley Vice President/Finance, Treasurer and Assistant Secretary
NINE WEST DEVELOPMENT CORPORATION	Joseph Donnalley Vice President/Finance, Treasurer and Assistant Secretary
JONES JEANSWEAR GROUP, INC.	Joseph Donnalley Vice President and Treasurer
JONES JEWELRY GROUP, INC.	Joseph Donnalley Treasurer
JONES DISTRIBUTION CORPORATION	Joseph Donnalley Vice President and Treasurer
JONES MANAGEMENT SERVICE COMPANY	Joseph Donnalley Vice President/Finance, Treasurer and Assistant Secretary
JONES HOLDING, INC.	Joseph Donnalley Vice President and Treasurer

EX-31

EXHIBIT 31

CERTIFICATIONS

I, Wesley R. Card, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The Jones Group Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
		(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
		(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 29, 2011
 

/s/ Wesley R. Card
Wesley R. Card
Chief Executive Officer

I, John T. McClain, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The Jones Group Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
		(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
		(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 29, 2011
 

/s/ John T. McClain
John T. McClain
Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

    I, Wesley R. Card, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of The Jones Group Inc. on Form 10-Q for the fiscal quarter ended July 2, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of The Jones Group Inc.

By: /s/ Wesley R. Card

Name: Wesley R. Card
Title: Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to The Jones Group Inc. and will be retained by Jones Apparel Group, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

    I, John T. McClain, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of The Jones Group Inc. on Form 10-Q for the fiscal quarter ended July 2, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of The Jones Group Inc.

By: /s/ John T. McClain

Name: John T. McClain
Title: Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to The Jones Group Inc. and will be retained by The Jones Group Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document And Entity Information (USD $)	6 Months Ended
	Jul. 02, 2011	Jul. 28, 2011	Jul. 03, 2010
Entity Registrant Name	JONES GROUP INC
Entity Central Index Key	0000874016
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,270,031,824
Entity Common Stock, Shares Outstanding		85,946,646
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 02, 2011

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ACQUISITIONS

6 Months Ended

Jul. 02, 2011

Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

Moda Nicola International, LLC

On February 4, 2010, we acquired 100% of the membership interests in Moda Nicola International, LLC ("Moda"), a privately-held designer, marketer and wholesaler of women's contemporary eveningwear and sportswear, and owner of the Robert Rodriguez Collection, for $35.7 million. Under the terms of the agreement, we made cash payments of $14.4 million to the selling members of Moda. We deferred $2.5 million of the purchase price, with payment subject to an indemnification holding period as set forth in the acquisition agreement. The selling members of Moda are also entitled to receive future cash payments upon achievement of certain financial targets set within the agreement for the years 2011 through 2014. At the acquisition date, we recorded an acquisition consideration liability for $18.8 million, based on projected revenues and gross margins of the acquired business and a discount factor based on an estimated weighted average cost of capital. Adjustments to this liability are recorded as an SG&A expense in our domestic wholesale sportswear segment. At July 2, 2011, the liability was $16.4 million, with $(6.5) million and $5.1 million recorded as SG&A expenses during the fiscal six months ended July 2, 2011 and July 3, 2010, respectively.

        We pursued the acquisition of Moda to increase our presence in the contemporary apparel market and to further develop a business portfolio with significant growth opportunities. Moda is reported as part of our domestic wholesale sportswear segment.

        The following table summarizes the fair values of the assets acquired and liabilities assumed from Moda on February 4, 2010.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Current assets		$	3.2
Property, plant and equipment			0.2
Intangible assets:
Goodwill			6.6
Customer relationships	120		7.9
Trademarks	240		17.0
Covenants not to compete	59		0.2
Order backlog	3		1.7
Total assets acquired			36.8
Current liabilities			1.1
Total purchase price		$	35.7

        The fair value of receivables acquired from Moda was $2.2 million, with gross contractual amounts receivable amounting to $2.7 million.

        The acquisition resulted in the recognition of $6.6 million of goodwill, which is expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the acquisition, such as manufacturing and supply chain work process improvements and the elimination of redundant corporate overhead for shared services and governance, the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as footwear.

        The following table provides total revenues and results of operations from the acquired Moda business included in our results for the fiscal quarter and six months ended July 3, 2010 subsequent to the acquisition.

(In millions)		Fiscal Quarter Ended July 3, 2010		Fiscal Six Months Ended July 3, 2010
Total revenues	$	2.1	$	6.5
Loss before provision for income taxes		6.1		6.7

Stuart Weitzman Holdings, LLC

        On June 2, 2010, we acquired 55% of the membership interests in Stuart Weitzman Holdings, LLC ("SWH"), a privately-held designer and manufacturer of women's salon footwear and accessories under the Stuart Weitzman label. SWH markets its products in fine specialty and department stores worldwide and in its own chain of retail stores in the U.S. and abroad.

        Under the terms of the agreement, the acquisition will occur in two stages. We made an initial cash payment of $180.3 million for a 55% interest in SWH. The purchase of the remaining 45% will occur on December 31, 2012. The remaining purchase price will be determined under a formula set forth in the agreement, which is based upon the financial results of SWH from 2010 through 2012. We recorded all SWH's identifiable assets, SWH's liabilities assumed and the noncontrolling interest at fair value under the acquisition method. Due to our obligation to purchase the remaining 45% interest, the noncontrolling interest is classified as a liability, with adjustments to the liability recorded as interest expense. We recorded a liability of $181.8 million for the initial value of the projected payments for the remaining 45% interest, based on probability-weighted projected earnings before interest, taxes, depreciation and amortization (as defined in the agreement) of the acquired business and cash distributions that are required by the agreement to be disbursed for 2010 through 2012, using a discount factor based on an estimated weighted average cost of capital. At July 2, 2011, the fair value of the liability was $211.8 million, with $31.8 million and $0.1 million recorded as interest expense and $11.0 million and $0.7 million of payments recorded during the fiscal six months ended July 2, 2011 and July 3, 2010, respectively.

        We pursued the acquisition of SWH to increase our presence in the contemporary footwear market and to further develop a business portfolio with significant growth opportunities. SWH's wholesale footwear business is reported in our domestic wholesale footwear and accessories and international wholesale segments, its retail business is reported in our domestic retail and international retail segments, and its licensing business is reported in our licensing, eliminations and other segment.

        The following table summarizes the fair values of the assets acquired and liabilities assumed from SWH on June 2, 2010.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Cash		$	21.0
Accounts receivable			20.1
Inventories			18.9
Other current assets			1.5
Property, plant and equipment			19.4
Intangible assets:
Trademarks			154.1
Goodwill			115.1
Customer relationships	120		20.2
Covenant not to compete	55		3.5
Order backlog	9		10.5
Favorable lease agreements	139		6.1
Licensing agreements	55		3.6
Other noncurrent assets			0.7
Total assets acquired			394.7
Cash distributions payable			19.0
Current liabilities			10.6
Unfavorable lease agreements	73		2.7
Other long-term liabilities			0.3
Total liabilities assumed			32.6
Total purchase price		$	362.1

        The gross contractual accounts receivable acquired from SWH was $24.4 million.

        The acquisition resulted in the recognition of $115.1 million of goodwill, which is expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the acquisition, such as the elimination of redundant corporate overhead for shared services and governance, the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as apparel.

        The following table provides total revenues and results of operations from the acquired SWH business included in our results for the fiscal quarter and six months ended July 3, 2010 subsequent to the acquisition.

(In millions)		Fiscal Quarter and Six Months Ended July 3, 2010
Total revenues	$	21.7
Loss before provision for income taxes		2.8

KG Group Holdings Limited

        On June 2, 2011, we acquired 100% of the equity interests in KG Group Holdings Limited ("Kurt Geiger"), a privately-held wholesaler and retailer of luxury footwear and accessories, for $150.0 million in cash and the assumption of $174.1 million of debt, which was immediately repaid. Kurt Geiger markets products under four of its own brands - Kurt Geiger, KG by Kurt Geiger, Carvela, and Miss KG - and over 100 other luxury brands in more than 200 retail locations, including concessions in Europe's leading department stores, including Harrods, Selfridges, Liberty, House of Fraser, Fenwick John Lewis and Brown Thomas, as well as company-operated stores.

        Approximately $10.2 million of the purchase price payable to certain selling shareholders who are senior managers of Kurt Geiger has been rolled over into 5% Loan Notes (the "Loan Notes"), which are payable in approximately four years and are subject to forfeiture in the event of termination of employment under certain circumstances. This amount will be recorded as compensation expense over the term of the Loan Notes and is not reported as a component of the cost of the acquisition.

        We pursued the acquisition of Kurt Geiger to increase our international presence and further extend our reach into the designer footwear business. Kurt Geiger will serve as our hub in Europe. Kurt Geiger's wholesale footwear business is reported in our international wholesale segment and its retail business is reported in our international retail segment.

        The following table summarizes the fair values of the assets acquired and liabilities assumed from Kurt Geiger on June 2, 2011.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Cash		$	6.9
Accounts receivable			19.7
Inventories			55.1
Other current assets			9.5
Property, plant and equipment			27.0
Intangible assets:
Trademarks - nonamortized			95.1
Trademarks - amortized	120		0.1
Goodwill			99.3
Customer relationships	232		125.7
Order backlog	9		2.8
Favorable lease agreements	99		6.8
Total assets acquired			448.0
Accounts payable			30.6
Other current liabilities			28.5
Long-term debt			174.1
Unfavorable lease agreements	100		0.2
Deferred taxes			64.6
Total liabilities assumed			298.0
Total purchase price		$	150.0

        The gross contractual accounts receivable acquired from Kurt Geiger was $19.8 million.

        The acquisition resulted in the recognition of $99.3 million of goodwill, which is not expected to be deductible for tax purposes. Goodwill largely consists of expected synergies resulting from the leveraging of the combined networks of partners, infrastructure and strong department store relationships to expand product distribution worldwide, as well as the acquired assembled workforce, which does not qualify as an amortizable intangible asset, and the potential for product extensions, such as apparel.

        The following table provides total revenues and results of operations from the acquired Kurt Geiger business included in our results for the fiscal quarter and six months ended July 2, 2011 subsequent to the acquisition.

(In millions)		Fiscal Quarter and Six Months Ended July 2, 2011
Total revenues	$	37.3
Loss before provision for income taxes		6.2

        The following table provides pro forma total revenues and results of operations for the fiscal quarters and six months ended July 2, 2011 and July 3, 2010 as if Moda and SWH had been acquired on January 1, 2009 and Kurt Geiger had been acquired on January 1, 2010. The unaudited pro forma results reflect certain adjustments related to the acquisitions, such as amortization expense on intangible assets acquired from Moda, SWH and Kurt Geiger resulting from the fair valuation of assets acquired. The pro forma results do not include any anticipated cost synergies or other effects of the planned integration of Moda, SWH or Kurt Geiger. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed at the indicated dates, nor are they indicative of the future operating results of the combined companies.

(In millions, except per share amounts)	Fiscal Quarter Ended				Fiscal Six Months Ended
		July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Total revenues	$	942.6	$	956.3	$	1,978.9	$	1,960.5
Net income		9.1		28.5		28.3		67.5
Earnings per common share attributable to Jones
Basic		0.11		0.33		0.33		0.78
Diluted		0.10		0.33		0.33		0.78

        The pro forma earnings for the fiscal quarter and six months ended July 3, 2010 were adjusted to exclude $4.5 million and $5.6 million, respectively, of acquisition-related expenses related to the acquisitions of Moda and SWH incurred during the respective periods and $2.9 million and $4.3 million, respectively, of nonrecurring expense related to the fair value of acquisition-date order backlogs. The pro forma earnings for the fiscal quarter and six months ended July 2, 2011 were adjusted to exclude $4.9 million of acquisition-related expenses incurred related to the acquisition of Kurt Geiger and $0.5 million of nonrecurring expense related to the fair value of Kurt Geiger acquisition-date order backlogs. The pro forma earnings for the fiscal quarter and six months ended July 3, 2010 were adjusted to include $0.9 million and $2.5 million, respectively, of nonrecurring expense related to the fair value of Kurt Geiger acquisition-date order backlogs.

Acquisition Expenses

        During the fiscal six months ended July 3, 2010, pretax charges totaling $0.6 million and $5.0 million were recorded for legal expenses and other costs related to the Moda and SWH acquisitions, respectively. During the fiscal six months ended July 2, 2011, pretax charges totaling $4.9 million were recorded for legal expenses and other costs related to the Kurt Geiger acquisition. These charges, which were expensed in accordance with the accounting guidance for business combinations, were recorded as SG&A costs in our licensing, other and eliminations segment.

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ACCOUNTS RECEIVABLE

6 Months Ended

Jul. 02, 2011

Accounts Receivable [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

        Accounts receivable consist of the following:

(In millions)		July 2, 2011		July 3, 2010			December 31, 2010
Trade accounts receivable	$	409.2		408.5		$	374.1
Allowances for doubtful accounts, returns, discounts and co-op advertising		(30.9	)	(27.8	)		(28.5	)
	$	378.3		380.7		$	345.6

        Due to our 25% ownership interest in GRI, GRI is deemed to be a related party. Included in accounts receivable are amounts due from GRI in the amount of $14.6 million, $35.6 million and $25.4 million at July 2, 2011, July 3, 2010 and December 31, 2010, respectively. Net revenues from GRI amounted to $26.5 million and $32.0 million for the fiscal six months ended July 2, 2011 and July 3, 2010, respectively. On July 23, 2009, we converted $10.0 million of the outstanding GRI accounts receivable to a three-year interest-bearing convertible note. GRI has the option, during the 90-day period that begins when the audited financial statements for the GRI fiscal year ending January 31, 2011 become available (or such shorter period that ends on the maturity date of the note), to convert the note into common shares of GRI at a conversion rate based on the greater of eight times the net income of GRI for such fiscal year, or an appraised value determined as of that date.

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ACCRUED RESTRUCTURING COSTS

6 Months Ended

Jul. 02, 2011

Restructuring and Related Activities [Abstract]

ACCRUED RESTRUCTURING COSTS

ACCRUED RESTRUCTURING COSTS

Jewelry

        During 2009, we decided to discontinue the domestic manufacturing, product development and sourcing activities of our jewelry business, and also announced the closing of our jewelry distribution center during 2010. We accrued $0.2 million of termination benefits and associated employee costs and $2.2 million of lease termination costs in the fiscal six months ended July 3, 2010 and we accrued $0.1 million of lease termination costs in the fiscal six months ended July 2, 2011. These costs are reported as SG&A expenses in the domestic wholesale footwear and accessories segment.

        The details of the jewelry restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total jewelry restructuring
Balance, January 1, 2010	$	2.9		$	-		$	2.9
Additions		0.2			2.2			2.4
Payments and reductions		(1.2	)		-			(1.2	)
Balance, July 3, 2010	$	1.9		$	2.2		$	4.1
Balance, January 1, 2011	$	1.3		$	2.3		$	3.6
Additions		-			0.1			0.1
Payments and reductions		(1.3	)		(0.6	)		(1.9	)
Balance, July 2, 2011	$	-		$	1.8		$	1.8

        We utilized $1.2 million and $1.3 million of the termination benefits accrual in each of the fiscal six months ended July 3, 2010 and July 2, 2011, respectively (relating to full or partial severance for 16 and 43 employees, respectively). The net accrual of $4.1 million at July 3, 2010 is reported as $2.4 million of accrued expenses and other current liabilities and $1.7 million of other noncurrent liabilities. The net accrual of $1.8 million at July 2, 2011 is reported as $0.4 million of accrued expenses and other current liabilities and $1.4 million of other noncurrent liabilities.

Texas Warehouse

        On December 1, 2009, we announced the closing of warehouse facilities in Socorro, Texas. We accrued $3.4 million of termination benefits and associated employee costs for 220 employees, of which $0.3 million was recorded in the fiscal six months ended July 3, 2010. We also recorded $2.6 million and $0.1 million of lease obligation costs relating to the warehouse in the fiscal six months ended July 3, 2010 and July 2, 2011, respectively. These costs are reported as SG&A expenses in the domestic wholesale jeanswear segment. The closing was substantially completed by the end of April 2010.

        The details of the Texas warehouse restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total Texas warehouse restructuring
Balance, January 1, 2010	$	3.1		$	-		$	3.1
Additions		0.3			2.6			2.9
Payments and reductions		(2.9	)		(0.2	)		(3.1	)
Balance, July 3, 2010	$	0.5		$	2.4		$	2.9
Balance, January 1, 2011	$	-		$	4.1		$	4.1
Additions		-			0.1			0.1
Payments and reductions		-			(2.3	)		(2.3	)
Balance, July 2, 2011	$	-		$	1.9		$	1.9

        During the fiscal six months ended July 3, 2010, $2.9 million of the accruals relating to termination benefits were utilized (relating to partial or full severance for 216 employees). The net accruals of $2.9 million and $1.9 million at July 3, 2010 and July 2, 2011, respectively, are reported as accrued expenses and other current liabilities.

Other Restructurings

        Moderate Apparel Restructuring. In connection with the exit from and reorganization of certain moderate apparel product lines, we decided to close certain New York offices, and on October 9, 2007, we announced the closing of warehouse facilities in Goose Creek, South Carolina. Prior to 2010, we recorded $2.0 million of lease obligation costs as selling, general and administrative expenses in our domestic wholesale jeanswear segment relating to one of the warehouse facilities. During the fiscal six months ended July 3, 2010, we reversed $1.3 million of lease obligation costs as SG&A expenses in our domestic wholesale jeanswear segment due to a sublease of one of the warehouse facilities.

        Retail Stores. We continue to review our retail operations for underperforming locations. As a result of this review, we have decided to close retail locations that no longer provide strategic benefits. During the fiscal six months ended July 3, 2010 and July 2, 2011, we closed 102 and 63 locations, respectively, and anticipate closing additional locations in 2011. Total termination benefits and associated employee costs are expected to be $8.1 million for approximately 1,425 employees, including both store employees and administrative support personnel. We recorded $0.5 million employee termination costs in the fiscal six months ended July 2, 2011. In connection with our decision to close these stores, we reviewed the associated long-term assets for impairments. As a result of this review, we recorded $2.1 million and $2.5 million of impairment losses during the fiscal six months ended July 3, 2010 and July 2, 2011, respectively, on leasehold improvements and furniture and fixtures located in the stores to be closed. These costs are reported as SG&A expenses in our domestic retail segment.

        California Restructuring. On February 15, 2011, we announced the closing of our Commerce, California design facility. In connection with this closing, we accrued $0.5 million of termination benefits and associated employee costs for 17 employees. These costs are reported as SG&A expenses in our domestic wholesale jeanswear segment.

        The details of these restructuring accruals are as follows:

(In millions)		Moderate restructuring			Retail stores			California restructuring
Balance, January 1, 2010	$	2.0		$	1.9		$	-
Reversals		(1.3	)		-			-
Payments and reductions		(0.3	)		(0.7	)		-
Balance, July 3, 2010	$	0.4		$	1.2		$	-
Balance, January 1, 2011	$	0.3		$	2.2		$	-
Additions		-			0.5			0.5
Payments and reductions		(0.1	)		(1.9	)		(0.2	)
Balance, July 2, 2011	$	0.2		$	0.8		$	0.3

        During the fiscal six months ended July 3, 2010 and July 2, 2011, $0.7 million and $2.1 million of the termination benefits accrual were utilized (relating to partial or full severance for 377 and 273 employees, respectively). The net accrual of $1.6 million at July 3, 2010 is reported as $1.3 million of accrued expenses and other current liabilities and $0.3 million of other noncurrent liabilities. The net accrual of $1.3 million at July 2, 2011 is reported as $1.2 million of accrued expenses and other current liabilities and $0.1 million of other noncurrent liabilities.

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GOODWILL

6 Months Ended

Jul. 02, 2011

Goodwill [Abstract]

GOODWILL

GOODWILL

        The following table presents, by segment and in total, changes in the carrying amount of goodwill for the fiscal six months ended July 3, 2010 and July 2, 2011. With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments (see "Segment Information"). As a result, we have reallocated goodwill based on the current segment structure and have restated the goodwill by segment for all periods presented.

(In millions)		Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear			Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale			International Retail			Total
Balance, January 1, 2010
Goodwill	$	40.1	$	519.2		$	813.2		$	120.6		$	-		$	-		$	1,493.1
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		40.1		-			-			-			-			-			40.1
Acquisition of Moda		6.6		-			-			-			-			-			6.6
Acquisition of SWH		-		-			59.8			-			55.3			-			115.1
Balance, July 3, 2010
Goodwill		46.7		519.2			873.0			120.6			55.3			-			1,614.8
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	59.8		$	-		$	55.3		$	-		$	161.8
Balance, December 31, 2010
Goodwill	$	46.7	$	519.2		$	873.0		$	120.6		$	55.3		$	-		$	1,614.8
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		46.7		-			59.8			-			55.3			-			161.8
Acquisition of Kurt Geiger		-		-			-			-			45.8			53.5			99.3
Foreign currency translation effects		-		-			-			-			(1.0	)		(1.2	)		(2.2	)
Balance, July 2, 2011
Goodwill		46.7		519.2			873.0			120.6			100.1			52.3			1,711.9
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	59.8		$	-		$	100.1		$	52.3		$	258.9

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FAIR VALUES

6 Months Ended

Jul. 02, 2011

Fair Values [Abstract]

FAIR VALUES

FAIR VALUES

        ASC Subtopic 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 outlines a valuation framework, creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements, and details the disclosures that are required for items measured at fair value. We are permitted to choose to measure many financial instruments and certain other items at fair value, although we did not elect the fair value measurement option for any of our financial assets or liabilities. Our financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, which are as follows:

• Level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date;
• Level 2 - inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); andLevel 3 - unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing assets or liabilities based on the best information available.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

        We have certain financial assets and liabilities that are required to be measured at fair value. These include:

• the assets and liabilities of The Jones Group Inc. Deferred Compensation Plan (the "Rabbi Trust"), which represent deferred employee compensation invested in mutual funds and which fall within Level 1 of the fair value hierarchy;
• deferred director fees, which represent phantom units of our common stock that have a fair value based on the market price of our common stock and which fall within Level 1 of the fair value hierarchy;
• foreign currency forward contracts and options, which have fair values based on observable inputs including foreign exchange forward and spot rates and which fall within Level 2 of the fair value hierarchy;
• interest rate swaps and cap, which have fair values based on observable inputs including yield curves and LIBOR rates and which fall within Level 2 of the fair value hierarchy;
• long-term debt that is hedged by interest rate swaps as a fair-value hedge and which falls within Level 2 of the fair value hierarchy; and
• consideration liabilities recorded as a result of the acquisition of Moda and SWH, which have fair values based on our projections of financial results and cash flows for the acquired business and a discount factor based on our weighted average cost of capital, and which fall within Level 3 of the fair value hierarchy.

        In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis at July 3, 2010, December 31, 2010 and July 2, 2011.

(In millions)
Description	Classification		Total Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
July 3, 2010:
Rabbi Trust assets	Prepaid expenses and other current assets	$	8.3	$	8.3	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.2		-		0.2		-
Interest rate swaps	Other long-term assets		2.8		-		2.8		-
Interest rate cap	Other long-term assets		1.3		-		1.3		-
	Total assets	$	12.6	$	8.3	$	4.3	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	8.3	$	8.3	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		1.1		1.1		-		-
Acquisition consideration	Current portion of acquisition consideration payable		10.3		-		-		10.3
5.125% Senior Notes die 2014	Long-term debt		253.8		-		253.8		-
Acquisition consideration	Acquisition consideration payable, net of current portion		194.8		-		-		194.8
	Total liabilities	$	468.3	$	9.4	$	253.8	$	205.1
December 31, 2010:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.1	$	9.1	$	-	$	-
Interest rate cap	Other long-term assets		1.3		-		1.3		-
	Total assets	$	10.4	$	9.1	$	1.3	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	9.1	$	9.1	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Accrued expenses and other current liabilities		0.5		-		0.5		-
Interest rate swaps	Other long-term liabilities		0.6		-		0.6		-
Deferred director fees	Accrued expenses and other current liabilities		1.2		1.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		14.1		-		-		14.1
5.125% Senior Notes due 2014	Long-term debt		260.0		-		260.0		-
Acquisition consideration	Acquisition consideration payable, net of current portion		199.8		-		-		199.8
	Total liabilities	$	485.3	$	10.3	$	261.1	$	213.9
July 2, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.5	$	9.5	$	-	$	-
British Pound - Euro forward contracts	Other current assets		0.1		-		0.1		-
Interest rate swaps	Other long-term assets		5.1		-		5.1		-
Interest rate cap	Other long-term assets		0.6		-		0.6		-
	Total assets	$	15.3	$	9.5	$	5.8	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	9.5	$	9.5	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Accrued expenses and other current liabilities		0.6		-		0.6		-
Acquisition consideration	Current portion of acquisition consideration payable		21.5		-		-		21.5
5.125% Senior Notes due 2014	Long-term debt		261.2		-		261.2		-
Hedged portion of 6.875% Senior Notes due 2019	Long-term debt		154.4		-		154.4		-
Acquisition consideration	Acquisition consideration payable, net of current portion		206.7		-		-		206.7
	Total liabilities	$	653.9	$	9.5	$	416.2	$	228.2

        The following table presents the changes in Level 3 contingent consideration liability for the fiscal six months ended July 3, 2010 and July 2, 2011.

(In millions)		Acquisition of Moda			Acquisition of SWH			Total Acquisition Consideration Payable
Beginning balance, January 1, 2010	$	-		$	-		$	-
Acquisition		18.8			181.8			200.6
Payments		-			(0.7	)		(0.7	)
Total adjustments included in earnings		5.1			0.1			5.2
Balance, July 3, 2010	$	23.9		$	181.2		$	205.1
Beginning balance, January 1, 2011	$	22.9		$	191.0		$	213.9
Payments		-			(11.0	)		(11.0	)
Total adjustments included in earnings		(6.5	)		31.8			25.3
Balance, July 2, 2011	$	16.4		$	211.8		$	228.2

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

        In accordance with the fair value hierarchy described above, the following table shows the fair value of our non-financial assets and liabilities that were required to be measured at fair value on a nonrecurring basis at July 3, 2010 and July 2, 2011, and the total losses recorded as a result of the remeasurement process.

(In millions)			Fair Value Measurements Using
Description		Carrying Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total losses recorded for the fiscal six months
At July 3, 2010:
Property and equipment	$	-	$	-	$	-	$	-	$	2.1
At July 2, 2011:
Property and equipment		-		-		-		-		2.5
Transportation equipment		1.0		0.6		-		-		0.4

        During the fiscal six months ended July 3, 2010 and July 2, 2011, property and equipment utilized in our retail operations with a carrying amount of $2.1 million and $2.5 million, respectively, were written down to a fair value of zero, primarily as a result of our decision to close underperforming retail locations. These losses were recorded as SG&A expenses in the domestic retail segment. We consider long-term assets utilized in a retail location to be impaired when a pattern of operating losses at the location indicate that future operating losses are probable and that the resulting cash flows will not be sufficient to recover the carrying value of the associated long-term assets. During the fiscal six months ended July 2, 2011, we determined that certain transportation equipment with a carrying value of $1.0 million had a fair value of $0.6 million based on quoted market prices. The loss of $0.4 million was recorded as SG&A expenses in the licensing, other and eliminations segment.

Financial Instruments

        As a result of our global operating and financing activities, we are exposed to changes in interest rates and foreign currency exchange rates which may adversely affect results of operations and financial condition. In seeking to minimize the risks and/or costs associated with such activities, we manage exposure to changes in interest rates and foreign currency exchange rates through our regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The instruments eligible for utilization include forward, option and swap agreements. We do not use financial instruments for trading or other speculative purposes. At July 2, 2011, we had outstanding foreign exchange contracts to exchange Canadian Dollars for a total notional value of US$10.3 million at a weighted-average exchange rate of 1.02 maturing through November 2011 and to exchange British Pounds for Euros for a total notional value of €2.4 million at a weighted-average exchange rate of 1.15 maturing through September 2011. We also had options to exchange British Pounds for U.S. Dollars for a notional value of $2.5 million at an exchange rate of 1.47 through September of 2011.

        At July 2, 2011, July 3, 2010 and December 31, 2010, the fair values of cash and cash equivalents, receivables and accounts payable approximated their carrying values due to the short-term nature of these instruments. The fair value of the note receivable from GRI approximates the $10.0 million carrying value as it is a variable-rate instrument. The estimated fair values of other financial instruments subject to fair value disclosures, determined based on broker quotes or quoted market prices or exchange rates for the same or similar instruments, and the related carrying amounts are as follows:

(In millions)	July 2, 2011						July 3, 2010				December 31, 2010
	Carrying Amount			Fair Value			Carrying Amount		Fair Value		Carrying Amount			Fair Value
Long-term debt, including current portion	$	825.5		$	749.6		$	503.9	$	447.2	$	510.0		$	459.4
Interest rate swaps, net asset (liability)		5.1			5.1			2.8		2.8		(0.6	)		(0.6	)
Interest rate cap, net asset		0.6			0.6			1.3		1.3		1.3			1.3
Canadian Dollar - U.S. Dollar forward contracts, net asset (liability)		(0.6	)		(0.6	)		0.2		0.2		(0.5	)		(0.5	)
British Pound - Euro forward contracts, net asset		0.1			0.1			-		-		-			-

        Financial instruments expose us to counterparty credit risk for nonperformance and to market risk for changes in interest and currency rates. We manage exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor the amount of credit exposure. Our financial instrument counterparties are substantial investment or commercial banks with significant experience with such instruments.

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CREDIT FACILITIES

6 Months Ended

Jul. 02, 2011

Credit Facilities [Abstract]

CREDIT FACILITIES

CREDIT FACILITIES

        We have a secured revolving credit agreement expiring on April 28, 2016 (the "Credit Facility") with several lending institutions to borrow an aggregate principal amount of up to $650 million. On April 28, 2011, we completed an amendment and restatement of our Credit Facility. The amended and restated terms and conditions provide for an extension of the maturity date from May 13, 2015 to April 28, 2016. The amendment and restatement also provides for, among other things, the following changes to the Credit Facility: (1) a split of the Credit Facility into a $350 million U.S. commitment which may be drawn by the U.S. borrowers as revolving loans or letters of credit in U.S. dollars, and a $300 million international commitment which may be drawn by the U.S. borrowers or by any Canadian or European borrowers as revolving loans or letters of credit in Euros, sterling, Canadian dollars, or U.S. dollars; (2) reductions in the interest rate spreads and commitment fees payable under the Credit Facility; (3) the addition of separate borrowing bases in each relevant European country, similar to the U.S. borrowing base (with variations in accordance with local law or practice); (4) changes in the U.S. borrowing base eligibility criteria for inventory in or in transit to Canada; (5) an increase in the cap on swingline loans; (6) reductions in the various availability levels below which (x) dominion periods are triggered, and (y) the borrowers must comply with certain financial and other covenants; (7) increases in various debt baskets, including a lifting of limits on the general unsecured debt basket and on unsecured and secured debt incurred by non-U.S. subsidiaries that are not loan parties, an increase in the general lien basket, and the addition of a new lien basket for financings secured by intellectual property; (8) increases in various investments baskets and the addition of a new investments basket; (9) an increase in the general asset sales basket; and (10) reductions in the various thresholds to be met before we can make restricted payments or can prepay our bonds maturing in 2014.

        Borrowings under the Credit Facility may be used to refinance existing indebtedness, to make certain investments (including acquisitions), and for general corporate purposes in the ordinary course of business. Such borrowings bear interest either based on the alternate base rate, as defined in the Credit Facility, or based on Eurocurrency rates, each with a margin that depends on the availability remaining under the Credit Facility. The Credit Facility contains customary events of default.

        Availability under the Credit Facility is determined with reference to a borrowing base consisting of a percentage of eligible inventory, accounts receivable, credit card receivables and licensee receivables, minus reserves determined by the joint collateral agents. At July 2, 2011, we had no cash borrowings and $26.3 million of letters of credit outstanding, and our remaining availability was $456.4 million. If availability under the Credit Facility falls below a stated level, we will be required to comply with a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative and negative covenants that, among other things, will limit or restrict our ability to (1) incur indebtedness, (2) create liens, (3) merge, consolidate, liquidate or dissolve, (4) make investments (including acquisitions), loans or advances, (5) sell assets, (6) enter into sale and leaseback transactions, (7) enter into swap agreements, (8) make certain restricted payments (including dividends and other payments in respect of capital stock), (9) enter into transactions with affiliates, (10) enter into restrictive agreements, and (11) amend material documents. The Credit Facility is secured by a first priority lien on substantially all of our personal property.

        SWH has a $1.5 million unsecured borrowing facility with a lending institution that expires on October 1, 2011 and is renewable on an annual basis, under which no cash borrowings and $1.1 million in letters of credit were outstanding at July 2, 2011. Cash borrowings under this facility bear interest based on either the prevailing prime rate or the prevailing LIBOR rate plus 300 basis points. SWH also has a €0.3 million variable-rate unsecured borrowing facility with a European lending institution that expires in March 2012 and is renewable on an annual basis, under which no amounts were outstanding at July 2, 2011.

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LONG-TERM DEBT

6 Months Ended

Jul. 02, 2011

Long-Term Debt [Abstract]]

Long-Term Debt [Text Block]

LONG-TERM DEBT

        In March 2011, we issued $300.0 million of 6.875% Senior Notes due 2019 (the "2019 Notes"). Net proceeds were $293.3 million, of which $45.0 million was used to repay amounts then outstanding under our secured revolving credit agreement. In connection with the issuance of the 2019 Notes, we entered into three interest rate swap transactions to effectively convert $150 million of the 2019 Notes to variable-rate debt. For more information, see "Derivatives."

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DERIVATIVES

6 Months Ended

Jul. 02, 2011

Derivatives [Abstract]

DERIVATIVES

DERIVATIVES

        We recognize all derivatives as either assets or liabilities on the balance sheet and measure those instruments at fair value. Additionally, the fair value adjustments will affect either equity or net income, depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity.

Interest Rate Swaps and Caps

        On May 27, 2010, we entered into three interest rate swap transactions to effectively convert the entire amount of our $250 million fixed-rate 5.125% Senior Notes due 2014 (the "2014 Notes") to variable-rate debt. Under the terms of the transactions, we were required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (that are reset on the 15th day of each calendar quarter) plus 2.92%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 5.125%. Concurrently, we also entered into an interest rate cap, at a cost of $2.7 million, which limits our three-month LIBOR rate exposure to 5.0%. The swap and cap transactions had an effective date of June 1, 2010 and a termination date of November 15, 2014, the date the 2014 Notes mature. On October 18, 2010, we de-designated the hedging relationship between the swaps and the 2014 Notes and received $10.2 million upon termination of the swaps. The related fair market valuation adjustment to the 2014 Notes will be amortized as a reduction of interest expense over the remaining life of the 2014 Notes.

        On December 14, 2010, we entered into three interest rate swap transactions to effectively convert the entire amount of the 2014 Notes to variable-rate debt. Under the terms of the transactions, we are required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.46%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 5.125%. The swap transactions have an effective date of December 17, 2010 and a termination date of November 15, 2014, the date the 2014 Notes mature.

        On March 3, 2011, we entered into three interest rate swap transactions to effectively convert $150 million of our 2019 Notes to variable-rate debt. Under the terms of the transactions, we are required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.73%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 6.875%. The swap transactions have an effective date of March 7, 2011 and a termination date of March 15, 2019, the date the 2019 Notes mature.

        The swap transactions were designated as hedges of the fair value of the related notes. The fair values of the swaps are recorded either as an asset or a liability, with changes in their fair values recorded through interest expense. The changes in fair value of the notes related to the hedged portion of the notes are also recorded through interest expense. As these changes in fair value will not exactly offset each other, the net effect on earnings represents the ineffectiveness of the hedging instruments. We evaluate effectiveness under the "long haul" method of accounting. The interest rate cap has not been designated as a hedging instrument; as a result, all changes in the fair value of the cap are recorded through interest expense.

        We recorded a net increase of $1.2 million in interest expense related to the ineffectiveness of the swaps and a $0.7 million increase in interest expense related to changes in the fair value of the cap during the fiscal six months ended July 2, 2011.  We recorded a net increase of $1.2 million in interest expense related to the ineffectiveness of the swaps and a $1.4 million increase in interest expense related to changes in the fair value of the cap during the fiscal six months ended July 3, 2010.

Foreign Currency Forward Contracts

        We use foreign currency forward contracts for the specific purpose of hedging the exposure to variability in forecasted cash flows associated primarily with inventory purchases. Fair values of foreign currency forward contracts are calculated by comparing each agreement's contractual exchange rate with the currency exchange forward and spot rates at the reporting date.

        We have outstanding forward contracts to exchange Canadian Dollars for U.S. Dollars and British Pounds for Euros, and options to exchange British Pounds for U.S. Dollars. The Canadian Dollar - U.S. Dollar contracts are designated as cash flow hedges, as the principal terms of the contracts are the same as the underlying forecasted foreign currency cash flows. Therefore, changes in the fair value of these forward contracts should be highly effective in offsetting changes in the expected foreign currency cash flows. Changes in the fair value of these contracts are recorded in accumulated other comprehensive income, net of related tax effects, with the corresponding asset or liability recorded in the balance sheet. Amounts recorded in accumulated other comprehensive income are reflected in current-period earnings when the hedged transaction affects earnings. The British Pound contracts have not been designated as cash flow hedges; therefore, changes in the fair value of these forward contracts are recorded as SG&A expenses.

        Since the foreign currency derivatives we use in our risk management strategies are highly effective hedges because all the critical terms of the derivative instruments match those of the hedged item, we record no ineffectiveness related to our cash flow hedges. If foreign currency exchange rates do not change from their July 2, 2011 amounts, we estimate that any reclassifications from other comprehensive income to earnings within the next 12 months will not be material.

        The U.S. Dollar notional amounts of our Canadian Dollar - U.S. Dollar forward exchange contracts outstanding at July 2, 2011, July 3, 2010 and December 31, 2010 were $10.3 million, $6.3 million and $20.3 million, respectively. The Euro notional amounts of our British Pound - Euro forward exchange contracts outstanding at July 2, 2011 were €2.4 million. The U.S. Dollar notional amounts of our British Pound - U.S. Dollar exchange options outstanding at July 2, 2011 were $2.5 million.

Fair Values of Derivative Instruments

(In millions)		July 2, 2011			July 3, 2010			December 31, 2010
		Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments
	Interest rate swap contracts	Other long-term assets	$	5.1	Other long-term assets	$	2.8		$	-
	Foreign exchange contracts			-	Prepaid expenses and other current assets		0.2			-
	Total derivative assets		$	5.1		$	3.0		$	-
	Interest rate swap contracts		$	-		$	-	Other long-term liabilities	$	0.6
	Foreign exchange contracts	Accrued expenses and other current liabilities		0.6			-	Accrued expenses and other current liabilities		0.5
	Total derivative liabilities		$	0.6		$	-		$	1.1
Derivatives not designated as hedging instruments
	Foreign exchange contracts	Prepaid expenses and other current assets	$	0.1		$	-		$	-
	Interest rate cap contract	Other long-term assets		0.6	Other long-term assets		1.3	Other long-term assets		1.3
	Total derivative assets		$	0.7		$	1.3		$	1.3

Effect of Derivatives on the Statement of Operations - Derivatives Designated as Hedging Instruments

(In millions)	Location of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income	Amount of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income
Derivate type			Fiscal Six Months Ended July 2, 2011			Fiscal Six Months Ended July 3, 2010
Interest rate swap contracts	Interest expense	$	(1.2	)	$	(1.2	)

(In millions)	Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income			Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income
Derivative type	Fiscal Six Months Ended July 2, 2011	Fiscal Six Months Ended July 3, 2010	Location of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income	Fiscal Six Months Ended July 2, 2011	Fiscal Six Months Ended July 3, 2010

Canadian Dollar - U.S. Dollar forward contracts $ (0.6 ) $ 0.1 Cost of sales $ (0.4 )  $ (0.2 ) 

Effect of Derivatives on the Statement of Operations - Derivatives Not Designated as Hedging Instruments

(In millions)	Location of Pretax Gain (Loss) Recognized in Income	Amount of Pretax Gain (Loss) Recognized in Income
Derivate type			Fiscal Six Months Ended July 2, 2011			Fiscal Six Months Ended July 3, 2010
British Pound - Euro forward contracts	Selling, general and administrative expenses	$	0.1		$	-
Interest rate cap contract	Interest expense	$	(0.7	)	$	(1.4	)

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STATEMENT OF CASH FLOWS

6 Months Ended

Jul. 02, 2011

Statement of Cash Flows Disclosure [Abstract]

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

Fiscal Six Months Ended		July 2, 2011			July 3, 2010
(In millions)
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	21.0		$	19.5
Net income tax (refunds) payments		(7.4	)		36.6
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees		26.2			27.6
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger		10.2			-
Acquisition consideration payable recorded for acquisition of Moda		-			18.8
Acquisition consideration payable recorded for acquisition of SWH		-			181.8

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EQUITY METHOD INVESTMENTS

6 Months Ended

Jul. 02, 2011

Equity Method Investments [Abstract]

EQUITY-METHOD INVESTMENTS

EQUITY METHOD INVESTMENTS

        On June 20, 2008, we acquired a 10% equity interest in GRI, an international accessories and apparel brand management and retail-distribution network, for $20.2 million. On June 24, 2009, we increased our equity interest to 25% for an additional $15.2 million. The selling shareholders of GRI are entitled to receive an additional cash payment equaling 60% of the amount of GRI's fiscal year 2011 net income that exceeds a certain threshold. GRI is the exclusive licensee of several of our brands in Asia, including Nine West, Anne Klein New York, AK Anne Klein, Easy Spirit, Enzo Angiolini and Joan & David. GRI also distributes other women's apparel, shoes and accessory brands. See "Accounts Receivable" for additional information regarding GRI.

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Consolidated Balance Sheets (Unaudited) (USD $) In Millions	6 Months Ended		12 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010
CURRENT ASSETS:
Cash and cash equivalents	$ 146.4	$ 133.2	$ 200.8
Accounts receivable	378.3	380.7	345.6
Inventories, primarily finished goods	523.2	414.9	465.9
Prepaid and refundable income taxes	11.5	9.0	18.7
Deferred taxes	26.2	25.9	28.0
Prepaid expenses and other current assets	44.3	33.3	32.1
TOTAL CURRENT ASSETS	1,129.9	997.0	1,091.1
PROPERTY, PLANT AND EQUIPMENT, at cost, less accumulated depreciation and amortization of $579.6, $549.2 and $553.1	270.2	241.4	226.4
GOODWILL	258.9	161.8	161.8
OTHER INTANGIBLES, at cost, less accumulated amortization	947.3	778.3	726.7
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATE	43.6	40.1	40.2
OTHER ASSETS	109.1	89.3	86.2
TOTAL ASSETS	2,759.0	2,307.9	2,332.4
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	1.9	2.2	1.8
Current portion of acquisition consideration payable	23.0	10.3	14.1
Accounts payable	230.2	200.6	213.4
Income taxes payable - Current	0.4	0.2	0
Accrued employee compensation and benefits	39.2	40.5	49.3
Accrued expenses and other current liabilities	103.3	75.7	93.1
TOTAL CURRENT LIABILITIES	398.0	329.5	371.7
NONCURRENT LIABILITIES:
Long-term debt	825.4	503.8	509.9
Obligations under capital leases	24.3	26.0	25.2
Deferred taxes	74.9	2.7	0.3
Income taxes payable	8.7	9.2	6.3
Acquisition consideration payable	206.7	196.2	201.3
Other noncurrent liabilities	79.1	79.4	79.4
TOTAL NONCURRENT LIABILITIES	1,219.1	817.3	822.4
TOTAL LIABILITIES	1,617.1	1,146.8	1,194.1
COMMITMENTS AND CONTINGENCIES
EQUITY:
Preferred stock, $.01 par value - shares authorized 1.0; none issued	0	0	0
Common stock, $.01 par value - shares authorized 200.0; issued 85.9, 158.5 and 86.4	0.9	1.6	0.9
Additional paid-in capital	539.4	1,372.7	541.9
Retained earnings	611.3	1,620.5	603.8
Accumulated other comprehensive loss	(9.9)	(7.5)	(8.4)
Treasury stock, 71.4 shares at July 3, 2010, at cost	0	(1,826.3)	0
TOTAL JONES STOCKHOLDERS' EQUITY	1,141.7	1,161.0	1,138.2
Noncontrolling interest	0.2	0.1	0.1
TOTAL EQUITY	1,141.9	1,161.1	1,138.3
TOTAL LIABILITIES AND EQUITY	$ 2,759.0	$ 2,307.9	$ 2,332.4

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PENSION PLANS

6 Months Ended

Jul. 02, 2011

Pension Plans [Abstract]

PENSION PLANS

PENSION PLANS

Components of Net Periodic Benefit Cost

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
		July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Interest cost	$	0.7		$	0.7		$	1.3		$	1.3
Expected return on plan assets		(0.7	)		(0.6	)		(1.3	)		(1.2	)
Amortization of net loss		0.4			0.4			0.9			0.8
Net periodic benefit cost	$	0.4		$	0.5		$	0.9		$	0.9

Employer Contributions

        During the fiscal six months ended July 2, 2011, we contributed $1.0 million to our defined benefit pension plans. We anticipate contributing a total of $4.8 million during 2011.

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SEGMENT INFORMATION

6 Months Ended

Jul. 02, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

        We identify operating segments based on, among other things, differences in products sold and the way our management organizes the components of our business for purposes of allocating resources and assessing performance. With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments to better reflect our expanding international operations. Our operations are now comprised of six reportable segments: domestic wholesale sportswear, domestic wholesale jeanswear, domestic wholesale footwear and accessories, domestic retail, international wholesale and international retail. Segment revenues are generated from the sale of apparel, footwear and accessories through wholesale channels and our own retail locations. The wholesale segments include wholesale operations with third party department and other retail stores, the retail segments include operations by our own stores, concession locations and e-commerce web sites, and income and expenses related to trademarks, licenses and general corporate functions are reported under "licensing, other and eliminations."

        We define segment income as operating income before net interest expense, goodwill impairment charges, gains or losses on sales of subsidiaries, equity in earnings of unconsolidated affiliates and income taxes. Sales and transfers between segments generally are recorded at cost and treated as transfers of inventory, which are not reviewed when evaluating segment performance. The wholesale segments allocate to the retail segments a portion of their SG&A costs related to the inventory transferred to those divisions where the retail operations benefit from those costs.

        Summarized below are our revenues, income and total assets by reportable segment for the fiscal quarter and six months ended July 2, 2011 and restated revenues, income and total assets by reportable segment for the fiscal quarter and six months ended July 3, 2010. We are an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, we do not represent that these segments, if operated independently, would report the operating profit and other financial information shown below.

(In millions)			Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear		Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale		International Retail		Licensing, Other & Eliminations			Consolidated
For the fiscal quarter ended July 2, 2011
	Revenues	$	203.0	$	189.1	$	188.4		$	166.5		$	76.6	$	53.4	$	10.4		$	887.4
	Segment income (loss)	$	22.3	$	11.9	$	(2.4	)	$	4.9		$	9.5	$	3.5	$	(4.8	)		44.9
	Net interest expense																			(37.0	)
	Equity in income of unconsoldiated affiliate																			0.7
	Income before provision for income taxes																		$	8.6
For the fiscal quarter ended July 3, 2010
	Revenues	$	219.6	$	189.3	$	193.6		$	165.0		$	69.3	$	12.5	$	10.3		$	859.6
	Segment income	$	21.1	$	13.2	$	12.9		$	1.1		$	7.2	$	3.1	$	(3.3	)		55.3
	Net interest expense																			(14.3	)
	Income before provision for income taxes																		$	41.0
For the fiscal six months ended July 2, 2011
	Revenues	$	471.7	$	424.6	$	409.0		$	301.7		$	155.7	$	63.6	$	22.4		$	1,848.7
	Segment income (loss)	$	53.1	$	39.9	$	15.6		$	(18.0	)	$	18.8	$	1.9	$	(5.2	)		106.1
	Net interest expense																			(58.2	)
	Equity in income of unconsoldiated affiliate																			2.0
	Income before provision for income taxes																		$	49.9
For the fiscal six months ended July 3, 2010
	Revenues	$	491.6	$	410.8	$	391.2		$	299.3		$	112.6	$	20.1	$	21.3		$	1,746.9
	Segment income (loss)	$	65.1	$	49.5	$	34.0		$	(19.8	)	$	9.3	$	2.3	$	(8.8	)		131.6
	Net interest expense																			(26.3	)
	Equity in loss of unconsoldiated affiliate																			(1.8	)
	Income before provision for income taxes																		$	103.5
Total Assets
	July 2, 2011	$	1,060.8	$	671.2	$	939.0		$	268.8		$	230.7	$	409.8	$	(821.3	)	$	2,759.0
	July 3, 2010		666.9		608.2		865.3			217.5			183.1		32.1		(265.2	)		2,307.9

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

6 Months Ended

Jul. 02, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

        Certain of our subsidiaries function as co-issuers (fully and unconditionally guaranteed on a joint and several basis) of the outstanding debt of The Jones Group Inc. ("Jones"), including Jones Apparel Group, USA, Inc. ("Jones USA"), Jones Apparel Group Holdings, Inc. ("Jones Holdings") and JAG Footwear, Accessories and Retail Corporation ("JAG Footwear").

        The following condensed consolidating balance sheets, statements of operations and statements of cash flows for the "Issuers" (consisting of Jones and Jones USA, Jones Holdings, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Separate financial statements and other disclosures concerning Jones are not presented as Jones has no independent operations or assets. There are no contractual restrictions on distributions from Jones USA, Jones Holdings or JAG Footwear to Jones.

Condensed Consolidating Balance Sheets

(In millions)

		July 2, 2011											December 31, 2010
			Issuers			Others		Elim- inations			Cons- olidated			Issuers			Others		Elim- inations			Cons- olidated
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents	$	91.0		$	55.4	$	-		$	146.4		$	163.0		$	37.8	$	-		$	200.8
	Accounts receivable		200.5			177.8		-			378.3			210.2			135.4		-			345.6
	Inventories		291.7			231.7		(0.2	)		523.2			289.4			176.5		-			465.9
	Prepaid and refundable income taxes		10.0			0.2		1.3			11.5			3.3			0.1		15.3			18.7
	Deferred taxes		11.6			14.6		-			26.2			15.1			12.9		-			28.0
	Prepaid expenses and other current assets		24.6			19.7		-			44.3			22.1			10.0		-			32.1
	TOTAL CURRENT ASSETS		629.4			499.4		1.1			1,129.9			703.1			372.7		15.3			1,091.1
Property, plant and equipment - net			75.0			195.2		-			270.2			75.1			151.3		-			226.4
Due from affiliates			-			1,457.6		(1,457.6	)		-			-			1,512.4		(1,512.4	)		-
Goodwill			46.7			212.2		-			258.9			46.7			115.1		-			161.8
Other intangibles - net			7.3			940.0		-			947.3			7.7			719.0		-			726.7
Deferred taxes			85.3			-		(85.3	)		-			84.2			-		(84.2	)		-
Investments in and loans to affiliates			3,000.8			43.6		(3,000.8	)		43.6			2,677.5			40.2		(2,677.5	)		40.2
Other assets			90.4			18.7		-			109.1			68.7			17.5		-			86.2
	TOTAL ASSETS	$	3,934.9		$	3,366.7	$	(4,542.6	)	$	2,759.0		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
	Current portion of long-term debt and capital lease obligations	$	-		$	1.9	$	-		$	1.9		$	-		$	1.8	$	-		$	1.8
	Current portion of acquisition consideration payable		21.6			1.4		-			23.0			14.1			-		-			14.1
	Accounts payable		136.2			94.0		-			230.2			145.9			67.5		-			213.4
	Income taxes payable		9.3			9.4		(18.3	)		0.4			-			4.4		(4.4	)		-
	Accrued expenses and other current liabilities		73.7			68.8		-			142.5			85.5			56.9		-			142.4
	TOTAL CURRENT LIABILITIES		240.8			175.5		(18.3	)		398.0			245.5			130.6		(4.4	)		371.7
NONCURRENT LIABILITIES:
	Long-term debt		825.2			0.2		-			825.4			509.7			0.2		-			509.9
	Obligations under capital leases		-			24.3		-			24.3			-			25.2		-			25.2
	Deferred taxes		-			147.8		(72.9	)		74.9			-			72.1		(71.8	)		0.3
	Income taxes payable		8.7			-		-			8.7			6.3			-		-			6.3
	Acquisition consideration payable		206.7			-		-			206.7			199.9			1.4		-			201.3
	Due to affiliates		1,457.6			-		(1,457.6	)		-			1,512.4			-		(1,512.4	)		-
	Other		60.0			19.1		-			79.1			57.0			22.4		-			79.4
	TOTAL NONCURRENT LIABILITIES		2,558.2			191.4		(1,530.5	)		1,219.1			2,285.3			121.3		(1,584.2	)		822.4
	TOTAL LIABILITIES		2,799.0			366.9		(1,548.8	)		1,617.1			2,530.8			251.9		(1,588.6	)		1,194.1
EQUITY:
	Common stock and additional paid-in capital		540.3			2,340.5		(2,340.5	)		540.3			542.8			2,096.2		(2,096.2	)		542.8
	Retained earnings		605.5			655.1		(649.3	)		611.3			597.8			574.9		(568.9	)		603.8
	Accumulated other comprehensive (loss) income		(9.9	)		4.0		(4.0	)		(9.9	)		(8.4	)		5.1		(5.1	)		(8.4	)
	Total Jones stockholders' equity		1,135.9			2,999.6		(2,993.8	)		1,141.7			1,132.2			2,676.2		(2,670.2	)		1,138.2
	Noncontrolling interest		-			0.2		-			0.2			-			0.1		-			0.1
	TOTAL EQUITY		1,135.9			2,999.8		(2,993.8	)		1,141.9			1,132.2			2,676.3		(2,670.2	)		1,138.3
	TOTAL LIABILITIES AND EQUITY	$	3,934.9		$	3,366.7	$	(4,542.6	)	$	2,759.0		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended July 2, 2011											Fiscal Quarter Ended July 3, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	557.3		$	324.1		$	(4.7	)	$	876.7	$	606.1		$	246.1		$	(3.2	)	$	849.0
Licensing income		0.1			10.3			-			10.4		-			10.3			-			10.3
Other revenues		0.3			-			-			0.3		0.3			-			-			0.3
Total revenues		557.7			334.4			(4.7	)		887.4		606.4			256.4			(3.2	)		859.6
Cost of goods sold		356.3			210.2			(2.2	)		564.3		375.7			167.7			(1.0	)		542.4
Gross profit		201.4			124.2			(2.5	)		323.1		230.7			88.7			(2.2	)		317.2
Selling, general and administrative expenses		227.2			53.3			(2.3	)		278.2		231.2			33.2			(2.5	)		261.9
Operating (loss) income		(25.8	)		70.9			(0.2	)		44.9		(0.5	)		55.5			0.3			55.3
Net interest expense (income) and financing costs		38.0			(1.0	)		-			37.0		15.7			(1.4	)		-			14.3
Equity in income (loss) of unconsolidated affiliate		-			0.7			-			0.7		-			-			-			-
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(63.8	)		72.6			(0.2	)		8.6		(16.2	)		56.9			0.3			41.0
(Benefit) provision for income taxes		(17.5	)		20.7			-			3.2		(2.8	)		18.1			(0.1	)		15.2
Equity in earnings of subsidiaries		51.5			-			(51.5	)		-		38.9			-			(38.9	)		-
Net income		5.2			51.9			(51.7	)		5.4		25.5			38.8			(38.5	)		25.8
Less: income attributable to noncontrolling interest		-			0.2			-			0.2		-			0.1			-			0.1
Income attributable to Jones	$	5.2		$	51.7		$	(51.7	)	$	5.2	$	25.5		$	38.7		$	(38.5	)	$	25.7

	Fiscal Six Months Ended July 2, 2011											Fiscal Six Months Ended July 3, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,174.9		$	660.3		$	(9.5	)	$	1,825.7	$	1,232.1		$	499.9		$	(6.8	)	$	1,725.2
Licensing income		0.1			22.4			-			22.5		-			21.3			-			21.3
Other revenues		0.5			-			-			0.5		0.4			-			-			0.4
Total revenues		1,175.5			682.7			(9.5	)		1,848.7		1,232.5			521.2			(6.8	)		1,746.9
Cost of goods sold		764.5			434.1			(3.7	)		1,194.9		766.9			338.5			(1.9	)		1,103.5
Gross profit		411.0			248.6			(5.8	)		653.8		465.6			182.7			(4.9	)		643.4
Selling, general and administrative expenses		447.9			105.4			(5.6	)		547.7		455.2			61.6			(5.0	)		511.8
Operating (loss) income		(36.9	)		143.2			(0.2	)		106.1		10.4			121.1			0.1			131.6
Net interest expense (income) and financing costs		60.6			(2.4	)		-			58.2		29.1			(2.8	)		-			26.3
Equity in income (loss) of unconsolidated affiliate		-			2.0			-			2.0		-			(1.8	)		-			(1.8	)
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(97.5	)		147.6			(0.2	)		49.9		(18.7	)		122.1			0.1			103.5
(Benefit) provision for income taxes		(23.4	)		42.1			-			18.7		(0.3	)		38.7			(0.1	)		38.3
Equity in earnings of subsidiaries		105.0			-			(105.0	)		-		83.4			-			(83.4	)		-
Net income		30.9			105.5			(105.2	)		31.2		65.0			83.4			(83.2	)		65.2
Less: income attributable to noncontrolling interest		-			0.4			-			0.4		-			0.3			-			0.3
Income attributable to Jones	$	30.9		$	105.1		$	(105.2	)	$	30.8	$	65.0		$	83.1		$	(83.2	)	$	64.9

Condensed Consolidating Statements of Cash Flows

(In millions)

		Fiscal Six Months Ended July 2, 2011												Fiscal Six Months Ended July 3, 2010
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash provided by operating activities		$	21.3		$	57.8		$	(13.5	)	$	65.6		$	11.1		$	15.7		$	(0.8	)	$	26.0
Cash flows from investing activities:
	Capital expenditures		(24.5	)		(25.0	)		-			(49.5	)		(6.0	)		(10.3	)		-			(16.3	)
	Acquisition of KG Group Holdings Limited, net of cash acquired		(150.0	)		6.9			-			(143.1	)		-			-			-			-
	Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired		-			-			-			-			(180.3	)		21.0			-			(159.3	)
	Acquisition of Moda Nicola International, LLC		-			-			-			-			(14.4	)		-			-			(14.4	)
	Other		-			-			-			-			-			0.1			-			0.1
	Net cash (used in) provided by investing activities		(174.5	)		(18.1	)		-			(192.6	)		(200.7	)		10.8			-			(189.9	)
Cash flows from financing activities:
	Issuance of 6.875% Senior Notes due 2019		300.0			-			-			300.0			-			-			-			-
	Debt issuance costs		(6.8	)		-			-			(6.8	)		-			-			-			-
	Costs related to revolving credit agreement		(2.9	)		-						(2.9	)		(7.2	)		-			-			(7.2	)
	Repayment of acquired debt of KG Group Holdings Limited		(174.1	)		-			-			(174.1	)		-			-			-			-
	Cash distributions to selling members of Stuart Weitzman Holdings, LLC		-			-			-			-			-			(19.0	)		-			(19.0	)
	Dividends paid		(8.5	)		(13.5	)		13.5			(8.5	)		(8.6	)		(0.8	)		0.8			(8.6	)
	Acquisition of treasury stock		(28.0	)		-			-			(28.0	)		-			-			-			-
	Payments of acquisition consideration payable		-			(6.2	)		-			(6.2	)		-			(0.7	)		-			(0.7	)
	Proceeds from exercise of employee stock options		-			-			-			-			0.6			-			-			0.6
	Other items, net		1.5			(1.2	)		-			0.3			-			(1.7	)		-			(1.7	)
	Net cash provided by (used in) financing activities		81.2			(20.9	)		13.5			73.8			(15.2	)		(22.2	)		0.8			(36.6	)
Effect of exchange rates on cash			-			(1.2	)		-			(1.2	)		-			0.3			-			0.3
Net (decrease) increase in cash and cash equivalents			(72.0	)		17.6			-			(54.4	)		(204.8	)		4.6			-			(200.2	)
Cash and cash equivalents, beginning			163.0			37.8			-			200.8			322.1			11.3			-			333.4
Cash and cash equivalents, ending		$	91.0		$	55.4		$	-		$	146.4		$	117.3		$	15.9		$	-		$	133.2

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NEW ACCOUNTING STANDARDS

6 Months Ended

Jul. 02, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

New Accounting Standards

NEW ACCOUNTING STANDARDS

        In April 2011, FASB issued ASU 2011-02, "Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring." ASU 2011-02 provides amendments to Topic 310 to clarify which loan modifications constitute troubled debt restructurings. It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment loss and for disclosure of troubled debt restructurings. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption. Early adoption is permitted. The adoption of ASU No. 2011-02 will not have an impact on our results of operations or our financial position.

       In May 2011, FASB issued ASU No. 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs." ASU 2011-04 amends Topic 820 to provide common fair value measurement and disclosure requirements in U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and International Financial Reporting Standards. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements, as well as providing guidance on how fair value should be applied where its use is already required or permitted by other standards within U.S. GAAP. ASU No. 2011-04 is to be applied prospectively, and early adoption is not permitted. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. The adoption of ASU No. 2011-04 is not expected to have a material impact on our results of operations or our financial position.

        In June 2011, FASB issued ASU 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income." ASU 2011-05 eliminates the option that permits the presentation of other comprehensive income in the statement of changes in equity and requires presenting components of net income and comprehensive income in either a one-statement approach with totals for both net income and comprehensive income, or a two-statement approach where a statement presenting the components of net income and total net income must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income. For public companies, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and should be applied retrospectively. Early adoption is permitted.

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jul. 02, 2011

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

        The computation of basic and diluted earnings per share is as follows:  

(In millions, except per share amounts)	Fiscal Quarter Ended						Fiscal Six Months Ended
		July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Net income	$	5.4		$	25.8		$	31.2		$	65.2
Less: income attributable to noncontrolling interest		(0.2	)		(0.1	)		(0.4	)		(0.3	)
Income attributable to Jones		5.2			25.7			30.8			64.9
Less: income allocated to participating securities		(0.2	)		(1.2	)		(0.8	)		(3.0	)
Income available to common stockholders of Jones	$	5.0		$	24.5		$	30.0		$	61.9
Weighted average shares outstanding - basic		81.7			82.2			81.9			82.1
Effect of dilutive employee stock options and restricted stock		1.5			0.5			1.4			0.5
Weighted average shares outstanding - diluted		83.2			82.7			83.3			82.6
Earnings per common share attributable to Jones
Basic	$	0.06		$	0.30		$	0.37		$	0.75
Diluted		0.06			0.30			0.36			0.75

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ACQUISITIONS (Tables)

6 Months Ended

Jul. 02, 2011

Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition

        The following table summarizes the fair values of the assets acquired and liabilities assumed from Moda on February 4, 2010.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Current assets		$	3.2
Property, plant and equipment			0.2
Intangible assets:
Goodwill			6.6
Customer relationships	120		7.9
Trademarks	240		17.0
Covenants not to compete	59		0.2
Order backlog	3		1.7
Total assets acquired			36.8
Current liabilities			1.1
Total purchase price		$	35.7

        The following table summarizes the fair values of the assets acquired and liabilities assumed from SWH on June 2, 2010.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Cash		$	21.0
Accounts receivable			20.1
Inventories			18.9
Other current assets			1.5
Property, plant and equipment			19.4
Intangible assets:
Trademarks			154.1
Goodwill			115.1
Customer relationships	120		20.2
Covenant not to compete	55		3.5
Order backlog	9		10.5
Favorable lease agreements	139		6.1
Licensing agreements	55		3.6
Other noncurrent assets			0.7
Total assets acquired			394.7
Cash distributions payable			19.0
Current liabilities			10.6
Unfavorable lease agreements	73		2.7
Other long-term liabilities			0.3
Total liabilities assumed			32.6
Total purchase price		$	362.1

        The following table summarizes the fair values of the assets acquired and liabilities assumed from Kurt Geiger on June 2, 2011.

(In millions)	Weighted-average amortization life (in months)		Fair Value
Cash		$	6.9
Accounts receivable			19.7
Inventories			55.1
Other current assets			9.5
Property, plant and equipment			27.0
Intangible assets:
Trademarks - nonamortized			95.1
Trademarks - amortized	120		0.1
Goodwill			99.3
Customer relationships	232		125.7
Order backlog	9		2.8
Favorable lease agreements	99		6.8
Total assets acquired			448.0
Accounts payable			30.6
Other current liabilities			28.5
Long-term debt			174.1
Unfavorable lease agreements	100		0.2
Deferred taxes			64.6
Total liabilities assumed			298.0
Total purchase price		$	150.0

Total revenues and results of operations subsequent to acquisition

        The following table provides total revenues and results of operations from the acquired Moda business included in our results for the fiscal quarter and six months ended July 3, 2010 subsequent to the acquisition.

(In millions)		Fiscal Quarter Ended July 3, 2010		Fiscal Six Months Ended July 3, 2010
Total revenues	$	2.1	$	6.5
Loss before provision for income taxes		6.1		6.7

        The following table provides total revenues and results of operations from the acquired SWH business included in our results for the fiscal quarter and six months ended July 3, 2010 subsequent to the acquisition.

(In millions)		Fiscal Quarter and Six Months Ended July 3, 2010
Total revenues	$	21.7
Loss before provision for income taxes		2.8

        The following table provides total revenues and results of operations from the acquired Kurt Geiger business included in our results for the fiscal quarter and six months ended July 2, 2011 subsequent to the acquisition.

(In millions)		Fiscal Quarter and Six Months Ended July 2, 2011
Total revenues	$	37.3
Loss before provision for income taxes		6.2

        The following table provides pro forma total revenues and results of operations for the fiscal quarters and six months ended July 2, 2011 and July 3, 2010 as if Moda and SWH had been acquired on January 1, 2009 and Kurt Geiger had been acquired on January 1, 2010. The unaudited pro forma results reflect certain adjustments related to the acquisitions, such as amortization expense on intangible assets acquired from Moda, SWH and Kurt Geiger resulting from the fair valuation of assets acquired. The pro forma results do not include any anticipated cost synergies or other effects of the planned integration of Moda, SWH or Kurt Geiger. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed at the indicated dates, nor are they indicative of the future operating results of the combined companies.

(In millions, except per share amounts)	Fiscal Quarter Ended				Fiscal Six Months Ended
		July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Total revenues	$	942.6	$	956.3	$	1,978.9	$	1,960.5
Net income		9.1		28.5		28.3		67.5
Earnings per common share attributable to Jones
Basic		0.11		0.33		0.33		0.78
Diluted		0.10		0.33		0.33		0.78

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ACCOUNTS RECEIVABLE (Tables)

6 Months Ended

Jul. 02, 2011

Accounts Receivable [Abstract]

Schedule of accounts receivable

        Accounts receivable consist of the following:

(In millions)		July 2, 2011		July 3, 2010			December 31, 2010
Trade accounts receivable	$	409.2		408.5		$	374.1
Allowances for doubtful accounts, returns, discounts and co-op advertising		(30.9	)	(27.8	)		(28.5	)
	$	378.3		380.7		$	345.6

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ACCRUED RESTRUCTURING COSTS (Tables)

6 Months Ended

Jul. 02, 2011

Restructuring and Related Activities [Abstract]

Details of Jewelry Restructuring

        The details of the jewelry restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total jewelry restructuring
Balance, January 1, 2010	$	2.9		$	-		$	2.9
Additions		0.2			2.2			2.4
Payments and reductions		(1.2	)		-			(1.2	)
Balance, July 3, 2010	$	1.9		$	2.2		$	4.1
Balance, January 1, 2011	$	1.3		$	2.3		$	3.6
Additions		-			0.1			0.1
Payments and reductions		(1.3	)		(0.6	)		(1.9	)
Balance, July 2, 2011	$	-		$	1.8		$	1.8

Details of Texas Warehouse Restructuring

        The details of the Texas warehouse restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total Texas warehouse restructuring
Balance, January 1, 2010	$	3.1		$	-		$	3.1
Additions		0.3			2.6			2.9
Payments and reductions		(2.9	)		(0.2	)		(3.1	)
Balance, July 3, 2010	$	0.5		$	2.4		$	2.9
Balance, January 1, 2011	$	-		$	4.1		$	4.1
Additions		-			0.1			0.1
Payments and reductions		-			(2.3	)		(2.3	)
Balance, July 2, 2011	$	-		$	1.9		$	1.9

Details of Other Restructurings

        The details of these restructuring accruals are as follows:

(In millions)		Moderate restructuring			Retail stores			California restructuring
Balance, January 1, 2010	$	2.0		$	1.9		$	-
Reversals		(1.3	)		-			-
Payments and reductions		(0.3	)		(0.7	)		-
Balance, July 3, 2010	$	0.4		$	1.2		$	-
Balance, January 1, 2011	$	0.3		$	2.2		$	-
Additions		-			0.5			0.5
Payments and reductions		(0.1	)		(1.9	)		(0.2	)
Balance, July 2, 2011	$	0.2		$	0.8		$	0.3

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GOODWILL (Tables)

6 Months Ended

Jul. 02, 2011

Goodwill [Abstract]

Schedule of Goodwill

        The following table presents, by segment and in total, changes in the carrying amount of goodwill for the fiscal six months ended July 3, 2010 and July 2, 2011. With the addition of Kurt Geiger on June 2, 2011, we have redefined our reportable operating segments (see "Segment Information"). As a result, we have reallocated goodwill based on the current segment structure and have restated the goodwill by segment for all periods presented.

(In millions)		Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear			Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale			International Retail			Total
Balance, January 1, 2010
Goodwill	$	40.1	$	519.2		$	813.2		$	120.6		$	-		$	-		$	1,493.1
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		40.1		-			-			-			-			-			40.1
Acquisition of Moda		6.6		-			-			-			-			-			6.6
Acquisition of SWH		-		-			59.8			-			55.3			-			115.1
Balance, July 3, 2010
Goodwill		46.7		519.2			873.0			120.6			55.3			-			1,614.8
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	59.8		$	-		$	55.3		$	-		$	161.8
Balance, December 31, 2010
Goodwill	$	46.7	$	519.2		$	873.0		$	120.6		$	55.3		$	-		$	1,614.8
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		46.7		-			59.8			-			55.3			-			161.8
Acquisition of Kurt Geiger		-		-			-			-			45.8			53.5			99.3
Foreign currency translation effects		-		-			-			-			(1.0	)		(1.2	)		(2.2	)
Balance, July 2, 2011
Goodwill		46.7		519.2			873.0			120.6			100.1			52.3			1,711.9
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	59.8		$	-		$	100.1		$	52.3		$	258.9

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FAIR VALUES (Tables)

6 Months Ended

Jul. 02, 2011

Fair Values [Abstract]

Fair value of financial instruments

        In accordance with the fair value hierarchy described above, the following table shows the fair value of our financial assets and liabilities that are required to be measured at fair value on a recurring basis at July 3, 2010, December 31, 2010 and July 2, 2011.

(In millions)
Description	Classification		Total Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
July 3, 2010:
Rabbi Trust assets	Prepaid expenses and other current assets	$	8.3	$	8.3	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.2		-		0.2		-
Interest rate swaps	Other long-term assets		2.8		-		2.8		-
Interest rate cap	Other long-term assets		1.3		-		1.3		-
	Total assets	$	12.6	$	8.3	$	4.3	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	8.3	$	8.3	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		1.1		1.1		-		-
Acquisition consideration	Current portion of acquisition consideration payable		10.3		-		-		10.3
5.125% Senior Notes die 2014	Long-term debt		253.8		-		253.8		-
Acquisition consideration	Acquisition consideration payable, net of current portion		194.8		-		-		194.8
	Total liabilities	$	468.3	$	9.4	$	253.8	$	205.1
December 31, 2010:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.1	$	9.1	$	-	$	-
Interest rate cap	Other long-term assets		1.3		-		1.3		-
	Total assets	$	10.4	$	9.1	$	1.3	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	9.1	$	9.1	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Accrued expenses and other current liabilities		0.5		-		0.5		-
Interest rate swaps	Other long-term liabilities		0.6		-		0.6		-
Deferred director fees	Accrued expenses and other current liabilities		1.2		1.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		14.1		-		-		14.1
5.125% Senior Notes due 2014	Long-term debt		260.0		-		260.0		-
Acquisition consideration	Acquisition consideration payable, net of current portion		199.8		-		-		199.8
	Total liabilities	$	485.3	$	10.3	$	261.1	$	213.9
July 2, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.5	$	9.5	$	-	$	-
British Pound - Euro forward contracts	Other current assets		0.1		-		0.1		-
Interest rate swaps	Other long-term assets		5.1		-		5.1		-
Interest rate cap	Other long-term assets		0.6		-		0.6		-
	Total assets	$	15.3	$	9.5	$	5.8	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	9.5	$	9.5	$	-	$	-
Canadian Dollar - U.S. Dollar forward contracts	Accrued expenses and other current liabilities		0.6		-		0.6		-
Acquisition consideration	Current portion of acquisition consideration payable		21.5		-		-		21.5
5.125% Senior Notes due 2014	Long-term debt		261.2		-		261.2		-
Hedged portion of 6.875% Senior Notes due 2019	Long-term debt		154.4		-		154.4		-
Acquisition consideration	Acquisition consideration payable, net of current portion		206.7		-		-		206.7
	Total liabilities	$	653.9	$	9.5	$	416.2	$	228.2

Changes in Level 3 contingent consideration liability

        The following table presents the changes in Level 3 contingent consideration liability for the fiscal six months ended July 3, 2010 and July 2, 2011.

(In millions)		Acquisition of Moda			Acquisition of SWH			Total Acquisition Consideration Payable
Beginning balance, January 1, 2010	$	-		$	-		$	-
Acquisition		18.8			181.8			200.6
Payments		-			(0.7	)		(0.7	)
Total adjustments included in earnings		5.1			0.1			5.2
Balance, July 3, 2010	$	23.9		$	181.2		$	205.1
Beginning balance, January 1, 2011	$	22.9		$	191.0		$	213.9
Payments		-			(11.0	)		(11.0	)
Total adjustments included in earnings		(6.5	)		31.8			25.3
Balance, July 2, 2011	$	16.4		$	211.8		$	228.2

Fair value of non-financial assets and liabilities

        In accordance with the fair value hierarchy described above, the following table shows the fair value of our non-financial assets and liabilities that were required to be measured at fair value on a nonrecurring basis at July 3, 2010 and July 2, 2011, and the total losses recorded as a result of the remeasurement process.

(In millions)			Fair Value Measurements Using
Description		Carrying Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total losses recorded for the fiscal six months
At July 3, 2010:
Property and equipment	$	-	$	-	$	-	$	-	$	2.1
At July 2, 2011:
Property and equipment		-		-		-		-		2.5
Transportation equipment		1.0		0.6		-		-		0.4

Estimated fair values of other financial instruments by balance sheet location

        At July 2, 2011, July 3, 2010 and December 31, 2010, the fair values of cash and cash equivalents, receivables and accounts payable approximated their carrying values due to the short-term nature of these instruments. The fair value of the note receivable from GRI approximates the $10.0 million carrying value as it is a variable-rate instrument. The estimated fair values of other financial instruments subject to fair value disclosures, determined based on broker quotes or quoted market prices or exchange rates for the same or similar instruments, and the related carrying amounts are as follows:

(In millions)	July 2, 2011						July 3, 2010				December 31, 2010
	Carrying Amount			Fair Value			Carrying Amount		Fair Value		Carrying Amount			Fair Value
Long-term debt, including current portion	$	825.5		$	749.6		$	503.9	$	447.2	$	510.0		$	459.4
Interest rate swaps, net asset (liability)		5.1			5.1			2.8		2.8		(0.6	)		(0.6	)
Interest rate cap, net asset		0.6			0.6			1.3		1.3		1.3			1.3
Canadian Dollar - U.S. Dollar forward contracts, net asset (liability)		(0.6	)		(0.6	)		0.2		0.2		(0.5	)		(0.5	)
British Pound - Euro forward contracts, net asset		0.1			0.1			-		-		-			-

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Millions, except Per Share data	Jul. 02, 2011	Dec. 31, 2010	Jul. 03, 2010
ASSETS
PROPERTY, PLANT AND EQUIPMENT, accumulated depreciation and amortization	$ 579.6	$ 553.1	$ 549.2
EQUITY:
Preferred stock, par value	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized	1.0	1.0	1.0
Preferred stock, shares issued	0	0	0
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	200.0	200.0	200.0
Common stock, shares issued	85.9	86.4	158.5
Treasury stock, shares	0	0	71.4

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DERIVATIVES (Tables)

6 Months Ended

Jul. 02, 2011

Derivatives [Abstract]

Fair Values of Derivative Instruments

Fair Values of Derivative Instruments

(In millions)		July 2, 2011			July 3, 2010			December 31, 2010
		Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments
	Interest rate swap contracts	Other long-term assets	$	5.1	Other long-term assets	$	2.8		$	-
	Foreign exchange contracts			-	Prepaid expenses and other current assets		0.2			-
	Total derivative assets		$	5.1		$	3.0		$	-
	Interest rate swap contracts		$	-		$	-	Other long-term liabilities	$	0.6
	Foreign exchange contracts	Accrued expenses and other current liabilities		0.6			-	Accrued expenses and other current liabilities		0.5
	Total derivative liabilities		$	0.6		$	-		$	1.1
Derivatives not designated as hedging instruments
	Foreign exchange contracts	Prepaid expenses and other current assets	$	0.1		$	-		$	-
	Interest rate cap contract	Other long-term assets		0.6	Other long-term assets		1.3	Other long-term assets		1.3
	Total derivative assets		$	0.7		$	1.3		$	1.3

Effect of Derivatives on the Statement of Operations

Effect of Derivatives on the Statement of Operations - Derivatives Designated as Hedging Instruments

(In millions)	Location of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income	Amount of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income
Derivate type			Fiscal Six Months Ended July 2, 2011			Fiscal Six Months Ended July 3, 2010
Interest rate swap contracts	Interest expense	$	(1.2	)	$	(1.2	)

(In millions)	Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income			Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income
Derivative type	Fiscal Six Months Ended July 2, 2011	Fiscal Six Months Ended July 3, 2010	Location of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income	Fiscal Six Months Ended July 2, 2011	Fiscal Six Months Ended July 3, 2010

Canadian Dollar - U.S. Dollar forward contracts $ (0.6 ) $ 0.1 Cost of sales $ (0.4 )  $ (0.2 ) 

Effect of Derivatives on the Statement of Operations - Derivatives Not Designated as Hedging Instruments

(In millions)	Location of Pretax Gain (Loss) Recognized in Income	Amount of Pretax Gain (Loss) Recognized in Income
Derivate type			Fiscal Six Months Ended July 2, 2011			Fiscal Six Months Ended July 3, 2010
British Pound - Euro forward contracts	Selling, general and administrative expenses	$	0.1		$	-
Interest rate cap contract	Interest expense	$	(0.7	)	$	(1.4	)

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STATEMENT OF CASH FLOWS (Tables)

6 Months Ended

Jul. 02, 2011

Statement of Cash Flows Disclosure [Abstract]

Schedule of Cash Flow Supplemental Disclosures and Part Noncash Acquisitions

STATEMENT OF CASH FLOWS

Fiscal Six Months Ended		July 2, 2011			July 3, 2010
(In millions)
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	21.0		$	19.5
Net income tax (refunds) payments		(7.4	)		36.6
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees		26.2			27.6
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger		10.2			-
Acquisition consideration payable recorded for acquisition of Moda		-			18.8
Acquisition consideration payable recorded for acquisition of SWH		-			181.8

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PENSION PLANS (Tables)

6 Months Ended

Jul. 02, 2011

Pension Plans [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
		July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Interest cost	$	0.7		$	0.7		$	1.3		$	1.3
Expected return on plan assets		(0.7	)		(0.6	)		(1.3	)		(1.2	)
Amortization of net loss		0.4			0.4			0.9			0.8
Net periodic benefit cost	$	0.4		$	0.5		$	0.9		$	0.9

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jul. 02, 2011

Segment Information [Abstract]

Segment information

        Summarized below are our revenues, income and total assets by reportable segment for the fiscal quarter and six months ended July 2, 2011 and restated revenues, income and total assets by reportable segment for the fiscal quarter and six months ended July 3, 2010. We are an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, we do not represent that these segments, if operated independently, would report the operating profit and other financial information shown below.

(In millions)			Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear		Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale		International Retail		Licensing, Other & Eliminations			Consolidated
For the fiscal quarter ended July 2, 2011
	Revenues	$	203.0	$	189.1	$	188.4		$	166.5		$	76.6	$	53.4	$	10.4		$	887.4
	Segment income (loss)	$	22.3	$	11.9	$	(2.4	)	$	4.9		$	9.5	$	3.5	$	(4.8	)		44.9
	Net interest expense																			(37.0	)
	Equity in income of unconsoldiated affiliate																			0.7
	Income before provision for income taxes																		$	8.6
For the fiscal quarter ended July 3, 2010
	Revenues	$	219.6	$	189.3	$	193.6		$	165.0		$	69.3	$	12.5	$	10.3		$	859.6
	Segment income	$	21.1	$	13.2	$	12.9		$	1.1		$	7.2	$	3.1	$	(3.3	)		55.3
	Net interest expense																			(14.3	)
	Income before provision for income taxes																		$	41.0
For the fiscal six months ended July 2, 2011
	Revenues	$	471.7	$	424.6	$	409.0		$	301.7		$	155.7	$	63.6	$	22.4		$	1,848.7
	Segment income (loss)	$	53.1	$	39.9	$	15.6		$	(18.0	)	$	18.8	$	1.9	$	(5.2	)		106.1
	Net interest expense																			(58.2	)
	Equity in income of unconsoldiated affiliate																			2.0
	Income before provision for income taxes																		$	49.9
For the fiscal six months ended July 3, 2010
	Revenues	$	491.6	$	410.8	$	391.2		$	299.3		$	112.6	$	20.1	$	21.3		$	1,746.9
	Segment income (loss)	$	65.1	$	49.5	$	34.0		$	(19.8	)	$	9.3	$	2.3	$	(8.8	)		131.6
	Net interest expense																			(26.3	)
	Equity in loss of unconsoldiated affiliate																			(1.8	)
	Income before provision for income taxes																		$	103.5
Total Assets
	July 2, 2011	$	1,060.8	$	671.2	$	939.0		$	268.8		$	230.7	$	409.8	$	(821.3	)	$	2,759.0
	July 3, 2010		666.9		608.2		865.3			217.5			183.1		32.1		(265.2	)		2,307.9

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION (Tables)

6 Months Ended

Jul. 02, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Financial Statements

        The following condensed consolidating balance sheets, statements of operations and statements of cash flows for the "Issuers" (consisting of Jones and Jones USA, Jones Holdings, JAG Footwear, which are all our subsidiaries that act as co-issuers and co-obligors) and the "Others" (consisting of all of our other subsidiaries, excluding all obligor subsidiaries) have been prepared using the equity method of accounting in accordance with the requirements for presentation of such information. Separate financial statements and other disclosures concerning Jones are not presented as Jones has no independent operations or assets. There are no contractual restrictions on distributions from Jones USA, Jones Holdings or JAG Footwear to Jones.

Condensed Consolidating Balance Sheets

(In millions)

		July 2, 2011											December 31, 2010
			Issuers			Others		Elim- inations			Cons- olidated			Issuers			Others		Elim- inations			Cons- olidated
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents	$	91.0		$	55.4	$	-		$	146.4		$	163.0		$	37.8	$	-		$	200.8
	Accounts receivable		200.5			177.8		-			378.3			210.2			135.4		-			345.6
	Inventories		291.7			231.7		(0.2	)		523.2			289.4			176.5		-			465.9
	Prepaid and refundable income taxes		10.0			0.2		1.3			11.5			3.3			0.1		15.3			18.7
	Deferred taxes		11.6			14.6		-			26.2			15.1			12.9		-			28.0
	Prepaid expenses and other current assets		24.6			19.7		-			44.3			22.1			10.0		-			32.1
	TOTAL CURRENT ASSETS		629.4			499.4		1.1			1,129.9			703.1			372.7		15.3			1,091.1
Property, plant and equipment - net			75.0			195.2		-			270.2			75.1			151.3		-			226.4
Due from affiliates			-			1,457.6		(1,457.6	)		-			-			1,512.4		(1,512.4	)		-
Goodwill			46.7			212.2		-			258.9			46.7			115.1		-			161.8
Other intangibles - net			7.3			940.0		-			947.3			7.7			719.0		-			726.7
Deferred taxes			85.3			-		(85.3	)		-			84.2			-		(84.2	)		-
Investments in and loans to affiliates			3,000.8			43.6		(3,000.8	)		43.6			2,677.5			40.2		(2,677.5	)		40.2
Other assets			90.4			18.7		-			109.1			68.7			17.5		-			86.2
	TOTAL ASSETS	$	3,934.9		$	3,366.7	$	(4,542.6	)	$	2,759.0		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
	Current portion of long-term debt and capital lease obligations	$	-		$	1.9	$	-		$	1.9		$	-		$	1.8	$	-		$	1.8
	Current portion of acquisition consideration payable		21.6			1.4		-			23.0			14.1			-		-			14.1
	Accounts payable		136.2			94.0		-			230.2			145.9			67.5		-			213.4
	Income taxes payable		9.3			9.4		(18.3	)		0.4			-			4.4		(4.4	)		-
	Accrued expenses and other current liabilities		73.7			68.8		-			142.5			85.5			56.9		-			142.4
	TOTAL CURRENT LIABILITIES		240.8			175.5		(18.3	)		398.0			245.5			130.6		(4.4	)		371.7
NONCURRENT LIABILITIES:
	Long-term debt		825.2			0.2		-			825.4			509.7			0.2		-			509.9
	Obligations under capital leases		-			24.3		-			24.3			-			25.2		-			25.2
	Deferred taxes		-			147.8		(72.9	)		74.9			-			72.1		(71.8	)		0.3
	Income taxes payable		8.7			-		-			8.7			6.3			-		-			6.3
	Acquisition consideration payable		206.7			-		-			206.7			199.9			1.4		-			201.3
	Due to affiliates		1,457.6			-		(1,457.6	)		-			1,512.4			-		(1,512.4	)		-
	Other		60.0			19.1		-			79.1			57.0			22.4		-			79.4
	TOTAL NONCURRENT LIABILITIES		2,558.2			191.4		(1,530.5	)		1,219.1			2,285.3			121.3		(1,584.2	)		822.4
	TOTAL LIABILITIES		2,799.0			366.9		(1,548.8	)		1,617.1			2,530.8			251.9		(1,588.6	)		1,194.1
EQUITY:
	Common stock and additional paid-in capital		540.3			2,340.5		(2,340.5	)		540.3			542.8			2,096.2		(2,096.2	)		542.8
	Retained earnings		605.5			655.1		(649.3	)		611.3			597.8			574.9		(568.9	)		603.8
	Accumulated other comprehensive (loss) income		(9.9	)		4.0		(4.0	)		(9.9	)		(8.4	)		5.1		(5.1	)		(8.4	)
	Total Jones stockholders' equity		1,135.9			2,999.6		(2,993.8	)		1,141.7			1,132.2			2,676.2		(2,670.2	)		1,138.2
	Noncontrolling interest		-			0.2		-			0.2			-			0.1		-			0.1
	TOTAL EQUITY		1,135.9			2,999.8		(2,993.8	)		1,141.9			1,132.2			2,676.3		(2,670.2	)		1,138.3
	TOTAL LIABILITIES AND EQUITY	$	3,934.9		$	3,366.7	$	(4,542.6	)	$	2,759.0		$	3,663.0		$	2,928.2	$	(4,258.8	)	$	2,332.4

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended July 2, 2011											Fiscal Quarter Ended July 3, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	557.3		$	324.1		$	(4.7	)	$	876.7	$	606.1		$	246.1		$	(3.2	)	$	849.0
Licensing income		0.1			10.3			-			10.4		-			10.3			-			10.3
Other revenues		0.3			-			-			0.3		0.3			-			-			0.3
Total revenues		557.7			334.4			(4.7	)		887.4		606.4			256.4			(3.2	)		859.6
Cost of goods sold		356.3			210.2			(2.2	)		564.3		375.7			167.7			(1.0	)		542.4
Gross profit		201.4			124.2			(2.5	)		323.1		230.7			88.7			(2.2	)		317.2
Selling, general and administrative expenses		227.2			53.3			(2.3	)		278.2		231.2			33.2			(2.5	)		261.9
Operating (loss) income		(25.8	)		70.9			(0.2	)		44.9		(0.5	)		55.5			0.3			55.3
Net interest expense (income) and financing costs		38.0			(1.0	)		-			37.0		15.7			(1.4	)		-			14.3
Equity in income (loss) of unconsolidated affiliate		-			0.7			-			0.7		-			-			-			-
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(63.8	)		72.6			(0.2	)		8.6		(16.2	)		56.9			0.3			41.0
(Benefit) provision for income taxes		(17.5	)		20.7			-			3.2		(2.8	)		18.1			(0.1	)		15.2
Equity in earnings of subsidiaries		51.5			-			(51.5	)		-		38.9			-			(38.9	)		-
Net income		5.2			51.9			(51.7	)		5.4		25.5			38.8			(38.5	)		25.8
Less: income attributable to noncontrolling interest		-			0.2			-			0.2		-			0.1			-			0.1
Income attributable to Jones	$	5.2		$	51.7		$	(51.7	)	$	5.2	$	25.5		$	38.7		$	(38.5	)	$	25.7

	Fiscal Six Months Ended July 2, 2011											Fiscal Six Months Ended July 3, 2010
		Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,174.9		$	660.3		$	(9.5	)	$	1,825.7	$	1,232.1		$	499.9		$	(6.8	)	$	1,725.2
Licensing income		0.1			22.4			-			22.5		-			21.3			-			21.3
Other revenues		0.5			-			-			0.5		0.4			-			-			0.4
Total revenues		1,175.5			682.7			(9.5	)		1,848.7		1,232.5			521.2			(6.8	)		1,746.9
Cost of goods sold		764.5			434.1			(3.7	)		1,194.9		766.9			338.5			(1.9	)		1,103.5
Gross profit		411.0			248.6			(5.8	)		653.8		465.6			182.7			(4.9	)		643.4
Selling, general and administrative expenses		447.9			105.4			(5.6	)		547.7		455.2			61.6			(5.0	)		511.8
Operating (loss) income		(36.9	)		143.2			(0.2	)		106.1		10.4			121.1			0.1			131.6
Net interest expense (income) and financing costs		60.6			(2.4	)		-			58.2		29.1			(2.8	)		-			26.3
Equity in income (loss) of unconsolidated affiliate		-			2.0			-			2.0		-			(1.8	)		-			(1.8	)
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(97.5	)		147.6			(0.2	)		49.9		(18.7	)		122.1			0.1			103.5
(Benefit) provision for income taxes		(23.4	)		42.1			-			18.7		(0.3	)		38.7			(0.1	)		38.3
Equity in earnings of subsidiaries		105.0			-			(105.0	)		-		83.4			-			(83.4	)		-
Net income		30.9			105.5			(105.2	)		31.2		65.0			83.4			(83.2	)		65.2
Less: income attributable to noncontrolling interest		-			0.4			-			0.4		-			0.3			-			0.3
Income attributable to Jones	$	30.9		$	105.1		$	(105.2	)	$	30.8	$	65.0		$	83.1		$	(83.2	)	$	64.9

Condensed Consolidating Statements of Cash Flows

(In millions)

		Fiscal Six Months Ended July 2, 2011												Fiscal Six Months Ended July 3, 2010
			Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash provided by operating activities		$	21.3		$	57.8		$	(13.5	)	$	65.6		$	11.1		$	15.7		$	(0.8	)	$	26.0
Cash flows from investing activities:
	Capital expenditures		(24.5	)		(25.0	)		-			(49.5	)		(6.0	)		(10.3	)		-			(16.3	)
	Acquisition of KG Group Holdings Limited, net of cash acquired		(150.0	)		6.9			-			(143.1	)		-			-			-			-
	Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired		-			-			-			-			(180.3	)		21.0			-			(159.3	)
	Acquisition of Moda Nicola International, LLC		-			-			-			-			(14.4	)		-			-			(14.4	)
	Other		-			-			-			-			-			0.1			-			0.1
	Net cash (used in) provided by investing activities		(174.5	)		(18.1	)		-			(192.6	)		(200.7	)		10.8			-			(189.9	)
Cash flows from financing activities:
	Issuance of 6.875% Senior Notes due 2019		300.0			-			-			300.0			-			-			-			-
	Debt issuance costs		(6.8	)		-			-			(6.8	)		-			-			-			-
	Costs related to revolving credit agreement		(2.9	)		-						(2.9	)		(7.2	)		-			-			(7.2	)
	Repayment of acquired debt of KG Group Holdings Limited		(174.1	)		-			-			(174.1	)		-			-			-			-
	Cash distributions to selling members of Stuart Weitzman Holdings, LLC		-			-			-			-			-			(19.0	)		-			(19.0	)
	Dividends paid		(8.5	)		(13.5	)		13.5			(8.5	)		(8.6	)		(0.8	)		0.8			(8.6	)
	Acquisition of treasury stock		(28.0	)		-			-			(28.0	)		-			-			-			-
	Payments of acquisition consideration payable		-			(6.2	)		-			(6.2	)		-			(0.7	)		-			(0.7	)
	Proceeds from exercise of employee stock options		-			-			-			-			0.6			-			-			0.6
	Other items, net		1.5			(1.2	)		-			0.3			-			(1.7	)		-			(1.7	)
	Net cash provided by (used in) financing activities		81.2			(20.9	)		13.5			73.8			(15.2	)		(22.2	)		0.8			(36.6	)
Effect of exchange rates on cash			-			(1.2	)		-			(1.2	)		-			0.3			-			0.3
Net (decrease) increase in cash and cash equivalents			(72.0	)		17.6			-			(54.4	)		(204.8	)		4.6			-			(200.2	)
Cash and cash equivalents, beginning			163.0			37.8			-			200.8			322.1			11.3			-			333.4
Cash and cash equivalents, ending		$	91.0		$	55.4		$	-		$	146.4		$	117.3		$	15.9		$	-		$	133.2

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BASIS OF PRESENTATION (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Basis of Presentation [Abstract]
Distribution costs included in SG&A expenses	$ 21.9	$ 26.8	$ 47.0	$ 52.2

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EARNINGS PER SHARE (Details) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Earnings Per Share [Abstract]
Net income	$ 5.4	$ 25.8	$ 31.2	$ 65.2
Less: income attributable to noncontrolling interest	(0.2)	(0.1)	(0.4)	(0.3)
Income attributable to Jones	5.2	25.7	30.8	64.9
Less: income allocated to participating securities	(0.2)	(1.2)	(0.8)	(3.0)
Income available to common stockholders of Jones	$ 5.0	$ 24.5	$ 30.0	$ 61.9
Weighted-average common shares outstanding - basic	81.7	82.2	81.9	82.1
Effect of dilutive employee stock options and restricted stock	1.5	0.5	1.4	0.5
Weighted-average common shares and share equivalents outstanding - diluted	83.2	82.7	83.3	82.6
Earnings per share attributable to Jones
Basic	$ 0.06	$ 0.30	$ 0.37	$ 0.75
Diluted	$ 0.06	$ 0.30	$ 0.36	$ 0.75

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ACQUISITIONS (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended						3 Months Ended	6 Months Ended			6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended			3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011 Customer Relationships [Member] Moda [Member] Integer	Jul. 02, 2011 Trademarks [Member] Moda [Member] Integer	Jul. 02, 2011 Noncompete Agreements [Member] Moda [Member] Integer	Jul. 02, 2011 Order or Production Backlog [Member] Moda [Member] Integer	Jul. 03, 2010 Moda [Member]	Jul. 02, 2011 Moda [Member]	Jul. 03, 2010 Moda [Member]	Feb. 04, 2010 Moda [Member]	Jul. 02, 2011 Customer Relationships [Member] SWH [Member] Integer	Jul. 02, 2011 Noncompete Agreements [Member] SWH [Member] Integer	Jul. 02, 2011 Order or Production Backlog [Member] SWH [Member] Integer	Jul. 02, 2011 Order or Production Backlog [Member] SWH [Member] Integer	Jul. 02, 2011 Licensing Agreements [Member] SWH [Member] Integer	Jul. 02, 2011 Licensing Agreements [Member] SWH [Member] Integer	Jul. 02, 2011 Favorable Lease Agreements [Member] SWH [Member] Integer	Jul. 02, 2011 Favorable Lease Agreements [Member] SWH [Member] Integer	Jul. 02, 2011 Unfavorable Lease Agreements [Member] SWH [Member] Integer	Jul. 02, 2011 Unfavorable Lease Agreements [Member] SWH [Member] Integer	Jul. 03, 2010 SWH [Member]	Jul. 02, 2011 SWH [Member]	Jul. 03, 2010 SWH [Member]	Jun. 02, 2010 SWH [Member]	Jul. 02, 2011 Customer Relationships [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Customer Relationships [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Trademarks [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Trademarks [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Order or Production Backlog [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Order or Production Backlog [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Favorable Lease Agreements [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Favorable Lease Agreements [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Unfavorable Lease Agreements [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Unfavorable Lease Agreements [Member] Kurt Geiger [Member] Integer	Jul. 02, 2011 Kurt Geiger [Member]	Jul. 03, 2010 Kurt Geiger [Member]	Jul. 02, 2011 Kurt Geiger [Member]	Jul. 03, 2010 Kurt Geiger [Member]	Jun. 02, 2011 Kurt Geiger [Member]	Jul. 03, 2010 Moda and SWH [Member]	Jul. 03, 2010 Moda and SWH [Member]
Business Acquisition [Line Items]
Cash																										$ 21.0															$ 6.9
Accounts receivable																										20.1															19.7
Inventories																										18.9															55.1
Other current assets																										1.5															9.5
Current assets												3.2
Property, plant and equipment												0.2														19.4															27.0
Intangible assets:
Goodwill												6.6														115.1															99.3
Customer relationships												7.9														20.2															125.7
Trademarks - nonamortized																																									95.1
Trademarks - amortized												17.0														154.1															0.1
Covenants not to compete												0.2														3.5
Order backlog												1.7														10.5															2.8
Favorable lease agreements																										6.1															6.8
Licensing agreements																										3.6
Other noncurrent assets																										0.7
Total assets acquired												36.8														394.7															448.0
Accounts payable																																									30.6
Current liabilities												1.1														10.6															28.5
Cash distributions payable																										19.0
Long-term debt																																									174.1
Unfavorable lease agreements																										2.7															0.2
Other long-term liabilities																										0.3
Deferred taxes																																									64.6
Total liabilities assumed																										32.6															298.0
Total purchase price												35.7														362.1															150.0
Total revenues included in results since acquisition	942.6	956.3	1,978.9	1,960.5					2.1		6.5												21.7		21.7												37.3		37.3
Income (loss) before provision for income taxes included in results since acquisition	9.1	28.5	28.3	67.5					(6.1)		(6.7)												(2.8)		(2.8)												(6.2)		(6.2)
Business Acquisition, Percentage of Voting Interests Acquired (in hundredths)												100.00%														55.00%															100.00%
Business Acquisition, Cost of Acquired Entity, Cash Paid												14.4														180.3
Business Acquisition, Amount of Purchase Price Deferred												2.5
Acquisition consideration liability												18.8														181.8
Business Combination, Acquired Receivables, Fair Value												2.2
Business Combination, Acquired Receivables, Gross Contractual Amount												2.7														24.4															19.8
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Amount												6.6														115.1
Business Acquisition, Percentage of Voting Interests Remaining to be Acquired																										45.00%
Acquisition contingent consideration liability at fair value										16.4														211.8
Changes in liability recorded as expense in period										(6.5)	5.1
Interest expense on contingent liability																								31.8	0.1
Amount of principal payments on acquisition																								11.0	0.7
Business combination, pro forma information [Abstract]
Pro forma total revenues	942.6	956.3	1,978.9	1,960.5					2.1		6.5												21.7		21.7												37.3		37.3
Pro forma net income	9.1	28.5	28.3	67.5					(6.1)		(6.7)												(2.8)		(2.8)												(6.2)		(6.2)
Earnings per share attributable to Jones
Basic, pro forma effect	$ 0.11	$ 0.33	$ 0.33	$ 0.78
Diluted, pro forma effect	$ 0.10	$ 0.33	$ 0.33	$ 0.78
Acquisition-related expenses excluded from pro forma earnings																																					4.9		4.9			4.5	5.6
Nonrecurring expense related to the fair value of acquisition date order backlogs excluded from pro forma earnings																																					0.5	(0.9)	0.5	(2.5)		2.9	4.3
Legal expenses and other transactions related to acquisition											0.6														5.0														4.9
Amount of purchase price payable rolled over into Loan Note to senior managers of KG																																					$ 10.2		$ 10.2
Interest rate on Loan Note to senior managers of KG																																					5.00%		5.00%
Years until maturity of Loan Notes to senior managers of KG																																					four years		four years
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization life (in months)					120	240	59	3					120	55	9	9	55	55	139	139	73	73					232	232	120	120	9	9	99	99	100	100

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ACCOUNTS RECEIVABLE (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010	Jul. 23, 2009
Accounts Receivable Details [Abstract]
Ownership interest in GRI (in hundredths)	25.00%
Accounts receivable amounts due from GRI	$ 14.6	$ 35.6	$ 25.4
Net revenues from GRI	26.5	32.0
Outstanding GRI accounts receivable converted to note				10.0
Interest-bearing convertible note maturity range, end				three years
Length of option period to convert note				90 day period that begins when the audited financial statements for the GRI fiscal year endind January 31 2011 become available
GRI fiscal year end date used to calculate option period for converting not into common shares of GRI				January 31, 2011
Number of times net income of GRI to on which to base conversion rate				eight times
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	409.2	408.5	374.1
Allowances for doubtful accounts, returns, discounts and co-op advertising	(30.9)	(27.8)	(28.5)
Trade accounts receivable, net	$ 378.3	$ 380.7	$ 345.6

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ACCRUED RESTRUCTURING COSTS (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended						6 Months Ended								12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended		12 Months Ended	6 Months Ended
	Jul. 02, 2011 One-time Termination Benefits [Member] Jewelry [Member]	Jul. 03, 2010 One-time Termination Benefits [Member] Jewelry [Member]	Jul. 03, 2010 One-time Termination Benefits [Member] Texas Warehouse [Member]	Jul. 02, 2011 One-time Termination Benefits [Member] Texas Warehouse [Member]	Dec. 31, 2010 One-time Termination Benefits [Member] Texas Warehouse [Member]	Dec. 01, 2009 One-time Termination Benefits [Member] Texas Warehouse [Member]	Jul. 02, 2011 Lease Obligations [Member] Jewelry [Member]	Jul. 03, 2010 Lease Obligations [Member] Jewelry [Member]	Jul. 02, 2011 Lease Obligations [Member] Texas Warehouse [Member]	Jul. 03, 2010 Lease Obligations [Member] Texas Warehouse [Member]	Jul. 02, 2011 Jewelry [Member] Integer	Jul. 03, 2010 Jewelry [Member] Integer	Jul. 02, 2011 Moderate Apparel [Member]	Jul. 03, 2010 Moderate Apparel [Member]	Dec. 31, 2009 Moderate Apparel [Member]	Jul. 02, 2011 Texas Warehouse [Member]	Jul. 03, 2010 Texas Warehouse [Member] Integer	Dec. 31, 2009 Texas Warehouse [Member] Integer	Jul. 02, 2011 Retail Stores [Member] Integer	Jul. 03, 2010 Retail Stores [Member] Integer	Dec. 31, 2011 Retail Stores [Member] Integer	Jul. 02, 2011 California [Member] Integer	Jul. 02, 2011 Other Restructurings [Member] Integer	Jul. 03, 2010 Other Restructurings [Member] Integer
Restructuring Reserve [Line Items]
Balance	$ 1.3	$ 2.9	$ 3.1	$ 0	$ 0	$ 3.4	$ 2.3	$ 0	$ 4.1	$ 0	$ 3.6	$ 2.9	$ 0.3	$ 2.0		$ 4.1	$ 3.1		$ 2.2	$ 1.9	$ 2.2	$ 0
Net reversal														(1.3)
Additions	0	0.2	0.3				0.1	2.2	0.1	2.6	0.1	2.4	0		2.0	0.1	2.9		0.5			0.5
Payments and reductions	(1.3)	(1.2)	(2.9)				(0.6)	0	(2.3)	(0.2)	(1.9)	(1.2)	(0.1)	(0.3)		(2.3)	(3.1)		(1.9)	(0.7)		(0.2)	(2.1)	(0.7)
Balance	0	1.9	0.5	0	0	3.4	1.8	2.2	1.9	2.4	1.8	4.1	0.2	0.4	2.0	1.9	2.9	3.1	0.8	1.2		0.3	1.3	1.6
Number of employees receiving termination benefits											43	16					216	220			1,425	17
Net accrual reported as accrued expenses and other current liabilities											0.4	2.4				1.9	2.9						1.2	1.3
Net accrual reported as other noncurrent liabilities											1.4	1.7											0.1	0.3
Number of retail stores closed																			59	102			273	377
Impairment losses recorded																			2.5	2.1
Expected total termination benefits and associated employee costs																					$ 8.1

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Consolidated Statements of Operations (Unaudited) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Statement of Operations [Abstract]
Net sales	$ 876.7	$ 849.0	$ 1,825.7	$ 1,725.2
Licensing income	10.4	10.3	22.5	21.3
Other revenues	0.3	0.3	0.5	0.4
Total revenues	887.4	859.6	1,848.7	1,746.9
Cost of goods sold	564.3	542.4	1,194.9	1,103.5
Gross profit	323.1	317.2	653.8	643.4
Selling, general and administrative expenses	278.2	261.9	547.7	511.8
Operating income	44.9	55.3	106.1	131.6
Interest income	0.3	0.4	0.4	0.8
Interest expense and financing costs	37.3	14.7	58.6	27.1
Equity in income (loss) of unconsolidated affiliate	0.7	0	2.0	(1.8)
Income before provision for income taxes	8.6	41.0	49.9	103.5
Provision for income taxes	3.2	15.2	18.7	38.3
Net income	5.4	25.8	31.2	65.2
Less: income attributable to noncontrolling interest	0.2	0.1	0.4	0.3
Income attributable to Jones	$ 5.2	$ 25.7	$ 30.8	$ 64.9
Earnings per common share attributable to Jones
Basic	$ 0.06	$ 0.30	$ 0.37	$ 0.75
Diluted	$ 0.06	$ 0.30	$ 0.36	$ 0.75
Weighted average common share and share equivalents outstanding
Basic	81.7	82.2	81.9	82.1
Diluted	83.2	82.7	83.3	82.6
Dividends declared per share	$ 0.05	$ 0.05	$ 0.10	$ 0.10

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GOODWILL (Details) (USD $) In Millions	6 Months Ended				6 Months Ended				6 Months Ended				6 Months Ended								6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010	Dec. 31, 2009	Jul. 02, 2011 International Wholesale [Member]	Jul. 03, 2010 International Wholesale [Member]	Dec. 31, 2010 International Wholesale [Member]	Dec. 31, 2009 International Wholesale [Member]	Jul. 02, 2011 International Retail [Member]	Dec. 31, 2010 International Retail [Member]	Jul. 03, 2010 International Retail [Member]	Dec. 31, 2009 International Retail [Member]	Jul. 03, 2010 Domestic Wholesale Sportswear [Member]	Jul. 02, 2011 Domestic Wholesale Sportswear [Member]	Dec. 31, 2010 Domestic Wholesale Sportswear [Member]	Dec. 31, 2009 Domestic Wholesale Sportswear [Member]	Jul. 02, 2011 Domestic Wholesale Jeanswear [Member]	Dec. 31, 2010 Domestic Wholesale Jeanswear [Member]	Jul. 03, 2010 Domestic Wholesale Jeanswear [Member]	Dec. 31, 2009 Domestic Wholesale Jeanswear [Member]	Jul. 03, 2010 Domestic Wholesale Footwear & Accessories [Member]	Jul. 02, 2011 Domestic Wholesale Footwear & Accessories [Member]	Dec. 31, 2010 Domestic Wholesale Footwear & Accessories [Member]	Dec. 31, 2009 Domestic Wholesale Footwear & Accessories [Member]	Jul. 02, 2011 Domestic Retail [Member]	Dec. 31, 2010 Domestic Retail [Member]	Jul. 03, 2010 Domestic Retail [Member]	Dec. 31, 2009 Domestic Retail [Member]	Mar. 31, 2009 Domestic Retail [Member]
Goodwill [Line Items]
Goodwill	$ 1,711.9	$ 1,614.8	$ 1,614.8	$ 1,493.1	$ 100.1	$ 55.3	$ 55.3	$ 0	$ 52.3	$ 0	$ 0	$ 0	$ 46.7	$ 46.7	$ 46.7	$ 40.1	$ 519.2	$ 519.2	$ 519.2	$ 519.2	$ 873.0	$ 873.0	$ 873.0	$ 813.2	$ 120.6	$ 120.6	$ 120.6	$ 120.6
Accumulated impairment losses	(1,453.0)	(1,453.0)	(1,453.0)	(1,453.0)													(519.2)	(519.2)	(519.2)	(519.2)	(813.2)	(813.2)	(813.2)	(813.2)	(120.6)	(120.6)	(120.6)	(120.6)
Net goodwill	258.9	161.8	161.8		100.1	55.3	55.3	0	52.3	0	0	0	46.7	46.7	46.7	40.1	0	0	0	0	59.8	59.8	59.8	0	0	0	0		0
Acquisition of Moda		6.6											6.6
Acquisition of SWH		115.1				55.3															59.8
Acquisition of Kurt Geiger	99.3				45.8				53.5
Foreign currency translation effects	$ (2.2)				$ (1.0)				$ (1.2)

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FAIR VALUES (Details) In Millions, unless otherwise specified																					6 Months Ended
	Jul. 02, 2011 USD ($)	Dec. 31, 2010 USD ($)	Jul. 03, 2010 USD ($)	Jul. 02, 2011 Estimate of Fair Value, Fair Value Disclosure [Member] Canadian Dollar contracts maturing through November 2011 [Member] USD ($)	Jul. 02, 2011 Fair Value, Inputs, Level 1 [Member] Estimate of Fair Value, Fair Value Disclosure [Member] USD ($)	Jul. 02, 2011 Estimate of Fair Value, Fair Value Disclosure [Member] USD ($)	Dec. 31, 2010 Estimate of Fair Value, Fair Value Disclosure [Member] USD ($)	Jul. 03, 2010 Estimate of Fair Value, Fair Value Disclosure [Member] USD ($)	Jul. 02, 2011 Fair Value, Inputs, Level 1 [Member] USD ($)	Dec. 31, 2010 Fair Value, Inputs, Level 1 [Member] USD ($)	Jul. 03, 2010 Fair Value, Inputs, Level 1 [Member] USD ($)	Jul. 02, 2011 Fair Value, Inputs, Level 2 [Member] USD ($)	Dec. 31, 2010 Fair Value, Inputs, Level 2 [Member] USD ($)	Jul. 03, 2010 Fair Value, Inputs, Level 2 [Member] USD ($)	Jul. 02, 2011 Fair Value, Inputs, Level 3 [Member] USD ($)	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member] USD ($)	Jul. 03, 2010 Fair Value, Inputs, Level 3 [Member] USD ($)	Jul. 02, 2011 Carrying Amount [Member] USD ($)	Dec. 31, 2010 Carrying Amount [Member] USD ($)	Jul. 03, 2010 Carrying Amount [Member] USD ($)	Jul. 02, 2011 Moda [Member] Contingent consideration liability [Member] USD ($)	Jul. 03, 2010 Moda [Member] Contingent consideration liability [Member] USD ($)	Jul. 02, 2011 SWH [Member] Contingent consideration liability [Member] USD ($)	Jul. 03, 2010 SWH [Member] Contingent consideration liability [Member] USD ($)	Jul. 02, 2011 Contingent consideration liability [Member] USD ($)	Jul. 03, 2010 Contingent consideration liability [Member] USD ($)	Jul. 02, 2011 Carrying (Reported) Amount, Fair Value Disclosure [Member] USD ($)	Dec. 31, 2010 Carrying (Reported) Amount, Fair Value Disclosure [Member] USD ($)	Jul. 03, 2010 Carrying (Reported) Amount, Fair Value Disclosure [Member] USD ($)	Jul. 02, 2011 Change During Period, Fair Value Disclosure [Member] USD ($)	Jul. 03, 2010 Change During Period, Fair Value Disclosure [Member] USD ($)	Jul. 02, 2011 British Pound for Euro contracts maturing through September 2011 [Member] EUR (€)	Jul. 02, 2011 British Pound for US Dollar contracts maturing through September 2011 [Member] USD ($)
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Rabbi Trust assets included in prepaid expenses and other current assets	$ 9.5	$ 9.1	$ 8.3						$ 9.5	$ 9.1	$ 8.3
Canadian Dollar - U.S. Dollar forward contracts included in prepaid expenses and other current assets	0	0	0.2									0	0	0.2						0.2
British Pound - Euro forward contracts included in other long-term assets	0.1	0	0									0.1	0	0				0.1
Interest rate cap included in other long-term assets	0.6	1.3	1.3									0.6	1.3	1.3				0.6	1.3	1.3
Interest rate swaps included in other long-term assets	5.1	0	2.8									5.1	0	2.8				5.1		2.8
Total assets	15.3	10.4	12.6						9.5	9.1	8.3	5.8	1.3	4.3
Rabbi trust liabilities included in accrued employee compensation and benefits	9.5	9.1	8.3						9.5	9.1	8.3
Canadian dollar - U.S. dollar forward contracts included in accrued expenses and other current liabilities	0.6	0.5	0									0.6	0.5	0				0.6	0.5
Interest rate swaps included in other long-term liabilities	0	0.6	0									0	0.6	0					0.6
Deferred director fees included in accrued expenses and other current liabilities	0	1.2	1.1						0	1.2	1.1
Current portion of acquisition consideration payable	21.5	14.1	10.3												21.5	14.1	10.3
5.125 senior notes due included in long-term debt	261.2	260.0	253.8									261.2	260.0	253.8
Hedged portion of 6.875% Senior Notes due 2019 included in long-term debt	154.4	0	0									154.4	0	0
Acquisition consideration payable, net of current portion	206.7	199.8	194.8												206.7	199.8	194.8
Total liabilities	653.9	485.3	468.3						9.5	10.3	9.4	416.2	261.1	253.8	228.2	213.9	205.1
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Acquisition consideration payable, net of current portion	206.7	201.3																			22.9	0	191.0	0	213.9	0
Acquisition																						18.8		181.8		200.6
Total adjustments included in earnings																					(6.5)	5.1	31.8	0.1	25.3	5.2
Payments																					0	0	(11.0)	(0.7)	(11.0)	(0.7)
Contingent consideration, at fair value	206.7	201.3																			16.4	23.9	211.8	181.2	228.2	205.1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Property and equipment, fair value disclosure																											0		0	(2.5)	(2.1)
Transportation equipment, fair value disclosure					0.6																						1.0			(0.4)
Long-term debt, including current portion						749.6	459.4	447.2																			825.5	510.0	503.9
Fair value of note receivable from GRI						10.0	10.0	10.0																			10.0	10.0	10.0
Notional amounts of foreign currency forward exchange contracts maturing at various dates through 2011				$ 10.3																												€ 2.4	$ 2.5
Weighted-average exchange rate on foreign currency forward contracts				1.02000																												1.15000	1.47000

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CREDIT FACILITIES (Details) In Millions	Jul. 02, 2011 USD ($)	Jul. 02, 2011 US Lending Institution [Member] Stuart Weitzman Holdings, LLC [Member] USD ($)	Jul. 02, 2011 US Lending Institution [Member] Stuart Weitzman Holdings, LLC [Member] EUR (€)
Line of Credit Facility [Line Items]
Maximum aggregate principal amount	$ 650.0
Letters of credit outstanding	26.3
Remaining availability for borrowings	456.4
U.S. commitment drawable by U.S. borrowers as revolving loans or letters of credit	350.0
International commitmentdrawable by U.S., Canadian, or European borrowers as revolving loans or letters of credit	300.0
Rate on $1.5 million unsecured borrowing facility		Prime rate or prevailing LIBOR rate plus 300 basis points	Prime rate or prevailing LIBOR rate plus 300 basis points
Unsecured borrowing facility		1.5
Unsecured borrowing facility, letters of credit outstanding		1.1
Variable-rate unsecured borrowing facility, maximum aggregate principal			€ 0.3

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LONG-TERM DEBT (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jul. 02, 2011
Long-Term Debt [Abstract]]
Senior Notes due 2019	$ 300.0
Proceeds from Issuance of Long-term Debt	293.3
Senior Notes due 2019, stated rate	6.875%
Number of interest rate swap transactions	three
Proceeds used to repay amounts then outstanding under secured revolving credit agreement	45.0
Amount of 2019 Notes converted to variable-rate debt	$ 150.0

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DERIVATIVES (Details) In Millions, unless otherwise specified				6 Months Ended	12 Months Ended	6 Months Ended							6 Months Ended									6 Months Ended					6 Months Ended
	Jul. 02, 2011 USD ($)	Dec. 31, 2010 USD ($)	Jul. 03, 2010 USD ($)	Jul. 02, 2011 Interest Rate Swaps on 2014 Notes [Member] USD ($)	Dec. 31, 2010 Interest Rate Swaps on 2014 Notes [Member] USD ($)	Jul. 02, 2011 Interest Rate Swaps on 2019 Notes [Member] USD ($)	Jul. 02, 2011 Additional Swaps on 2014 Notes [Member]	Jul. 02, 2011 Canadian Dollar- U.S. forward exchange contracts [Member] USD ($)	Dec. 31, 2010 Canadian Dollar- U.S. forward exchange contracts [Member] USD ($)	Jul. 03, 2010 Canadian Dollar- U.S. forward exchange contracts [Member] USD ($)	Jul. 02, 2011 Canadian Dollar - U. S. Dollar forward contracts [Member] EUR (€)	Jul. 02, 2011 Canadian Dollar - U. S. Dollar forward contracts [Member] USD ($)	Jul. 02, 2011 Interest Rate Swap Contracts [Member] Designated [Member] Interest Expense [Member] USD ($)	Jul. 03, 2010 Interest Rate Swap Contracts [Member] Designated [Member] Interest Expense [Member] USD ($)	Dec. 31, 2010 Interest Rate Swap Contracts [Member] Other Long-term Liabilities [Member] USD ($)	Jul. 02, 2011 Interest Rate Swap Contracts [Member] Other Long Term Assets [Member] USD ($)	Jul. 03, 2010 Interest Rate Swap Contracts [Member] Other Long Term Assets [Member] USD ($)	Jul. 02, 2011 Foreign Exchange Contract [Member] Accrued Expenses and Other Current Liabilities [Member] USD ($)	Dec. 31, 2010 Foreign Exchange Contract [Member] Accrued Expenses and Other Current Liabilities [Member] USD ($)	Jul. 02, 2011 Foreign Exchange Contract [Member] Prepaid expenses and other current assets [Member] USD ($)	Jul. 03, 2010 Foreign Exchange Contract [Member] Prepaid expenses and other current assets [Member] USD ($)	Jul. 02, 2011 Interest Rate Cap Contract [Member] Nondesignated [Member] Interest Expense [Member] USD ($)	Jul. 03, 2010 Interest Rate Cap Contract [Member] Nondesignated [Member] Interest Expense [Member] USD ($)	Jul. 02, 2011 Interest Rate Cap Contract [Member] Other Long Term Assets [Member] USD ($)	Dec. 31, 2010 Interest Rate Cap Contract [Member] Other Long Term Assets [Member] USD ($)	Jul. 03, 2010 Interest Rate Cap Contract [Member] Other Long Term Assets [Member] USD ($)	Jul. 02, 2011 Canadian Dollar - U. S. Dollar forward contracts [Member] Designated [Member] Cost of Sales [Member] USD ($)	Jul. 03, 2010 Canadian Dollar - U. S. Dollar forward contracts [Member] Designated [Member] Cost of Sales [Member] USD ($)	Jul. 02, 2011 British Pound - Euro forward contracts [Member] Nondesignated [Member] Selling, general and administrative expenses [Member] USD ($)
Derivative [Line Items]
Number of interest rate swap transactions	three			three		three	three
Amount of hedged item related to derivative				$ 250.0		$ 150.0		$ 10.3	$ 20.3	$ 6.3	€ 2.4	$ 2.5
Fixed interest rate related to derivative				5.125%		6.875%	5.125%
Variable interest rate related to derivative				three-month LIBOR rates (that are reset on the 15th day of each calendar quarter) plus 2.92%		three-month LIBOR rates (which reset on the 15th day of each calendar quarter) plus 3.73%	three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.46%
Cost of interest rate cap				2.7
Interest rate cap				5.00%
Amount received upon termination of swaps					10.2
Derivatives, Fair Value [Line Items]
Fair Value, liabilities, designated as hedging	0.6	1.1													0.6			0.6	0.5
Foreign currency exchange contracts, net liability	0.6	0.5	0
Fair Value, assets, not designated as hedging	0.7	1.3	1.3																	0.1				0.6	1.3	1.3
Fair value, assets, designated as hedging	5.1		3.0													5.1	2.8				0.2
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax Gain (Loss) due to Ineffectiveness Recognized in Income													(1.2)	(1.2)
Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income																											(0.6)	0.1
Amount of Pretax Gain (Loss) Reclassified from Other Comprehensive Income into Income																											(0.4)	(0.2)
Amount of Pretax Gain (Loss) Recognized in Income																						$ (0.7)	$ (1.4)						$ 0.1

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STATEMENT OF CASH FLOWS (Details) (USD $) In Millions	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010
Cash paid (received) during the period for:
Interest	$ 21.0	$ 19.5
Net income tax (refunds) payments	(7.4)	36.6
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees	26.2	27.6
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger	10.2	0
Moda [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Acquisition consideration payable recorded	0	18.8
SWH [Member]
Noncash or Part Noncash Acquisitions [Line Items]
Acquisition consideration payable recorded	$ 0	$ 181.8

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EQUITY METHOD INVESTMENTS (Details) (USD $) In Millions, unless otherwise specified	Jun. 24, 2009	Jun. 20, 2008
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Initial Ownership Percentage (in hundredths)		10.00%
Equity Method Investment, Initial Cost		$ 20.2
Equity Method Investment, Ownership Percentage (in hundredths)	25.00%
Equity Method Investment, Additional Investment Cost	$ 15.2
Contingent additional cash payment percentage of net income over threshold (in hundredths)	60.00%

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PENSION PLANS (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 0.7	$ 0.7	$ 1.3	$ 1.3
Expected return on plan assets	(0.7)	(0.6)	(1.3)	(1.2)
Amortization of net loss	0.4	0.4	0.9	0.8
Net periodic benefit cost	0.4	0.5	0.9	0.9
Employer contribution to defined benefit pension plans			1.0
Anticipated employer contributions in fiscal year	$ 4.8		$ 4.8

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SEGMENT INFORMATION (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011 Integer	Jul. 03, 2010	Dec. 31, 2010
Segment Reporting Information [Line Items]
Total revenues	$ 887.4	$ 859.6	$ 1,848.7	$ 1,746.9
Segment income (loss)	44.9	55.3	106.1	131.6
Net interest expense	(37.0)	(14.3)	(58.2)	(26.3)
Equity in income (loss) of unconsolidated affiliate	0.7	0	2.0	(1.8)
Income before provision for income taxes, segments	8.6	41.0	49.9	103.5
Number of reportable segments			6
Income before provision for income taxes	8.6	41.0	49.9	103.5
Assets	2,759.0	2,307.9	2,759.0	2,307.9	2,332.4
Licensing, Other and Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenues	10.4	10.3	22.4	21.3
Segment income (loss)	(4.8)	(3.3)	(5.2)	(8.8)
Assets	(821.3)	(265.2)	(821.3)	(265.2)
International Wholesale [Member]
Segment Reporting Information [Line Items]
Total revenues	76.6	69.3	155.7	112.6
Segment income (loss)	9.5	7.2	18.8	9.3
Assets	230.7	183.1	230.7	183.1
International Retail [Member]
Segment Reporting Information [Line Items]
Total revenues	53.4	12.5	63.6	20.1
Segment income (loss)	3.5	3.1	1.9	2.3
Assets	409.8	32.1	409.8	32.1
Domestic Wholesale Sportswear [Member]
Segment Reporting Information [Line Items]
Total revenues	203.0	219.6	471.7	491.6
Segment income (loss)	22.3	21.1	53.1	65.1
Assets	1,060.8	666.9	1,060.8	666.9
Domestic Wholesale Jeanswear [Member]
Segment Reporting Information [Line Items]
Total revenues	189.1	189.3	424.6	410.8
Segment income (loss)	11.9	13.2	39.9	49.5
Assets	671.2	608.2	671.2	608.2
Domestic Wholesale Footwear & Accessories [Member]
Segment Reporting Information [Line Items]
Total revenues	188.4	193.6	409.0	391.2
Segment income (loss)	(2.4)	13.2	15.6	34.4
Assets	939.0	865.3	939.0	865.3
Domestic Retail [Member]
Segment Reporting Information [Line Items]
Total revenues	166.5	165.0	301.7	299.3
Segment income (loss)	4.9	0.8	(18.0)	(20.1)
Assets	$ 268.8	$ 217.5	$ 268.8	$ 217.5

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010	Jul. 02, 2011	Jul. 03, 2010	Dec. 31, 2010	Dec. 31, 2009
CURRENT ASSETS:
Cash and cash equivalents	$ 146.4	$ 133.2	$ 146.4	$ 133.2
Accounts receivable	378.3	380.7	378.3	380.7	345.6
Inventories	523.2	414.9	523.2	414.9	465.9
Prepaid and refundable income taxes	11.5	9.0	11.5	9.0	18.7
Deferred taxes	26.2	25.9	26.2	25.9	28.0
Prepaid expenses and other current assets	44.3	33.3	44.3	33.3	32.1
TOTAL CURRENT ASSETS	1,129.9	997.0	1,129.9	997.0	1,091.1
Property, plant and equipment - net	270.2	241.4	270.2	241.4	226.4
Goodwill	258.9	161.8	258.9	161.8	161.8
Other intangibles - net	947.3	778.3	947.3	778.3	726.7
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATE	43.6	40.1	43.6	40.1	40.2
OTHER ASSETS	109.1	89.3	109.1	89.3	86.2
TOTAL ASSETS	2,759.0	2,307.9	2,759.0	2,307.9	2,332.4
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	1.9	2.2	1.9	2.2	1.8
Current portion of acquisition consideration payable	23.0		23.0		14.1
Accounts payable	230.2	200.6	230.2	200.6	213.4
Accrued expenses and other current liabilities	142.5		142.5		142.4
Income taxes payable - Current	0.4	0.2	0.4	0.2	0
TOTAL CURRENT LIABILITIES	398.0	329.5	398.0	329.5	371.7
NONCURRENT LIABILITIES:
Long-term debt	825.4	503.8	825.4	503.8	509.9
Obligations under capital leases	24.3	26.0	24.3	26.0	25.2
Deferred taxes	74.9	2.7	74.9	2.7	0.3
Income taxes payable	8.7	9.2	8.7	9.2	6.3
Acquisition consideration payable	206.7		206.7		201.3
Other	79.1	79.4	79.1	79.4	79.4
TOTAL NONCURRENT LIABILITIES	1,219.1	817.3	1,219.1	817.3	822.4
TOTAL LIABILITIES	1,617.1	1,146.8	1,617.1	1,146.8	1,194.1
EQUITY:
Common stock and additional paid-in capital	540.3		540.3		542.8
Retained earnings	611.3	1,620.5	611.3	1,620.5	603.8
Accumulated other comprehensive (loss) income	(9.9)	(7.5)	(9.9)	(7.5)	(8.4)
Treasury stock	0	1,826.3	0	1,826.3	0
Total Jones stockholders' equity	1,141.7	1,161.0	1,141.7	1,161.0	1,138.2
Noncontrolling interest	0.2	0.1	0.2	0.1	0.1
TOTAL EQUITY	1,141.9	1,161.1	1,141.9	1,161.1	1,138.3	1,092.5
TOTAL LIABILITIES AND EQUITY	2,759.0	2,307.9	2,759.0	2,307.9	2,332.4
Condensed Consolidating Statements of Operations [Abstract]
Net sales	876.7	849.0	1,825.7	1,725.2
Licensing income	10.4	10.3	22.5	21.3
Other revenues	0.3	0.3	0.5	0.4
Total revenues	887.4	859.6	1,848.7	1,746.9
Cost of goods sold	564.3	542.4	1,194.9	1,103.5
Gross profit	323.1	317.2	653.8	643.4
Selling, general and administrative expenses	278.2	261.9	547.7	511.8
Operating income	44.9	55.3	106.1	131.6
Net interest expense (income) and financing costs	37.0	14.3	58.2	26.3
Equity in income (loss) of unconsolidated affiliate	0.7	0	2.0	(1.8)
(Loss) income before provision (benefit) for income taxes and equity in earnings of subsidiaries	8.6	41.0	49.9	103.5
Provision (benefit) for income taxes	3.2	15.2	18.7	38.3
Net income	5.4	25.8	31.2	65.2
Less: income attributable to noncontrolling interest	0.2	0.1	0.4	0.3
Income attributable to Jones	5.2	25.7	30.8	64.9
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash (used in) provided by operating activities			65.6	26.0
Cash flows from investing activities:
Capital expenditures			(49.5)	(16.3)
Acquisition of KG Group Holdings Limited, net of cash acquired			(143.1)	0
Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired			0	(159.3)
Acquisition of Moda Nicola International, LLC			0	(14.4)
Other			0	0.1
Net cash used in investing activities			(192.6)	(189.9)
Cash flows from financing activities:
Issuance of 6.875% Senior Notes due 2019			300.0	0
Debt issuance costs			(6.8)	0
Costs related to secured revolving credit agreement			(2.9)	(7.2)
Repayment of acquired debt of KG Group Holdings Limited			(174.1)	0
Cash distributions to selling members of Stuart Weitzman, LLC			0	(19.0)
Dividends paid			(8.5)	(8.6)
Acquisition of treasury stock			(28.0)	0
Payments of acquisition consideration payable			(6.2)	(0.7)
Proceeds from exercise of employee stock options				0.6
Other items, net			0.3	(1.7)
Net cash provided by (used in) financing activities			73.8	(36.6)
Effect of exchange rates on cash			(1.2)	0.3
Net increase (decrease) in cash and cash equivalents			(54.4)	(200.2)
Cash and cash equivalents, beginning			200.8	333.4
Cash and cash equivalents, ending	146.4	133.2	146.4	133.2
Consolidation, Eliminations [Member]
CURRENT ASSETS:
Inventories	(0.2)		(0.2)		0
Prepaid and refundable income taxes	1.3		1.3		15.3
TOTAL CURRENT ASSETS	1.1		1.1		15.3
Due from affiliates	(1,457.6)		(1,457.6)		(1,512.4)
Deferred taxes	(85.3)		(85.3)		(84.2)
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATE	(3,000.8)		(3,000.8)		(2,677.5)
TOTAL ASSETS	(4,542.6)		(4,542.6)		(4,258.8)
CURRENT LIABILITIES:
Income taxes payable	(18.3)		(18.3)		(4.4)
TOTAL CURRENT LIABILITIES	(18.3)		(18.3)		(4.4)
NONCURRENT LIABILITIES:
Deferred taxes	(72.9)		(72.9)		(71.8)
Due to affiliates	(1,457.6)		(1,457.6)		(1,512.4)
TOTAL NONCURRENT LIABILITIES	(1,530.5)		(1,530.5)		(1,584.2)
TOTAL LIABILITIES	(1,548.8)		(1,548.8)		(1,588.6)
EQUITY:
Common stock and additional paid-in capital	(2,340.5)		(2,340.5)		(2,096.2)
Retained earnings	(649.3)		(649.3)		(568.9)
Accumulated other comprehensive (loss) income	(4.0)		(4.0)		(5.1)
Total Jones stockholders' equity	(2,993.8)		(2,993.8)		(2,670.2)
TOTAL EQUITY	(2,993.8)		(2,993.8)		(2,670.2)
TOTAL LIABILITIES AND EQUITY	(4,542.6)		(4,542.6)		(4,258.8)
Condensed Consolidating Statements of Operations [Abstract]
Net sales	(4.7)	(3.2)	(9.5)	(6.8)
Total revenues	(4.7)	(3.2)	(9.5)	(6.8)
Cost of goods sold	(2.2)	(1.0)	(3.7)	(1.9)
Gross profit	(2.5)	(2.2)	(5.8)	(4.9)
Selling, general and administrative expenses	(2.3)	(2.5)	(5.6)	(5.0)
Operating income	(0.2)	0.3	(0.2)	0.1
(Loss) income before provision (benefit) for income taxes and equity in earnings of subsidiaries	(0.2)	0.3	(0.2)	0.1
Provision (benefit) for income taxes	0	(0.1)	0	(0.1)
Equity in earnings of subsidiaries	(51.5)	(38.9)	(105.0)	(83.4)
Net income	(51.7)	(38.5)	(105.2)	(83.2)
Income attributable to Jones	(51.7)	(38.5)	(105.2)	(83.2)
Cash flows from financing activities:
Dividends paid			13.5	0.8
Net cash provided by (used in) financing activities			13.5	0.8
Issuers [Member]
CURRENT ASSETS:
Cash and cash equivalents	91.0	117.3	91.0	117.3
Accounts receivable	200.5		200.5		210.2
Inventories	291.7		291.7		289.4
Prepaid and refundable income taxes	10.0		10.0		3.3
Deferred taxes	11.6		11.6		15.1
Prepaid expenses and other current assets	24.6		24.6		22.1
TOTAL CURRENT ASSETS	629.4		629.4		703.1
Property, plant and equipment - net	75.0		75.0		75.1
Goodwill	46.7		46.7		46.7
Other intangibles - net	7.3		7.3		7.7
Deferred taxes	85.3		85.3		84.2
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATE	3,000.8		3,000.8		2,677.5
OTHER ASSETS	90.4		90.4		68.7
TOTAL ASSETS	3,934.9		3,934.9		3,663.0
CURRENT LIABILITIES:
Current portion of acquisition consideration payable	21.6		21.6		14.1
Accounts payable	136.2		136.2		145.9
Income taxes payable	9.3		9.3		0
Accrued expenses and other current liabilities	73.7		73.7		85.5
TOTAL CURRENT LIABILITIES	240.8		240.8		245.5
NONCURRENT LIABILITIES:
Long-term debt	825.2		825.2		509.7
Income taxes payable	8.7		8.7		6.3
Acquisition consideration payable	206.7		206.7		199.9
Due to affiliates	1,457.6		1,457.6		1,512.4
Other	60.0		60.0		57.0
TOTAL NONCURRENT LIABILITIES	2,558.2		2,558.2		2,285.3
TOTAL LIABILITIES	2,799.0		2,799.0		2,530.8
EQUITY:
Common stock and additional paid-in capital	540.3		540.3		542.8
Retained earnings	605.5		605.5		597.8
Accumulated other comprehensive (loss) income	(9.9)		(9.9)		(8.4)
Total Jones stockholders' equity	1,135.9		1,135.9		1,132.2
TOTAL EQUITY	1,135.9		1,135.9		1,132.2
TOTAL LIABILITIES AND EQUITY	3,934.9		3,934.9		3,663.0
Condensed Consolidating Statements of Operations [Abstract]
Net sales	557.3	606.1	1,174.9	1,232.1
Licensing income	0.1	0	0.1	0
Other revenues	0.3	0.3	0.5	0.4
Total revenues	557.7	606.4	1,175.5	1,232.5
Cost of goods sold	356.3	375.7	764.5	766.9
Gross profit	201.4	230.7	411.0	465.6
Selling, general and administrative expenses	227.2	231.2	447.9	455.2
Operating income	(25.8)	(0.5)	(36.9)	10.4
Net interest expense (income) and financing costs	38.0	15.7	60.6	29.1
(Loss) income before provision (benefit) for income taxes and equity in earnings of subsidiaries	(63.8)	(16.2)	(97.5)	(18.7)
Provision (benefit) for income taxes	(17.5)	(2.8)	(23.4)	(0.3)
Equity in earnings of subsidiaries	51.5	38.9	105.0	83.4
Net income	5.2	25.5	30.9	65.0
Income attributable to Jones	5.2	25.5	30.9	65.0
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash (used in) provided by operating activities			21.3	11.1
Cash flows from investing activities:
Capital expenditures			(24.5)	(6.0)
Acquisition of KG Group Holdings Limited, net of cash acquired			(150.0)	0
Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired			0	(180.3)
Acquisition of Moda Nicola International, LLC			0	(14.4)
Net cash used in investing activities			(174.5)	(200.7)
Cash flows from financing activities:
Issuance of 6.875% Senior Notes due 2019			300.0	0
Debt issuance costs			(6.8)	0
Costs related to secured revolving credit agreement			(2.9)	(7.2)
Repayment of acquired debt of KG Group Holdings Limited			(174.1)	0
Dividends paid			(8.5)	(8.6)
Acquisition of treasury stock			28.0	0
Proceeds from exercise of employee stock options			0	0.6
Other items, net			1.5	0
Net cash provided by (used in) financing activities			81.2	(15.2)
Net increase (decrease) in cash and cash equivalents			(72.0)	(204.8)
Cash and cash equivalents, beginning			163.0	322.1
Cash and cash equivalents, ending	91.0	117.3	91.0	117.3
Others [Member]
CURRENT ASSETS:
Cash and cash equivalents	55.4	15.9	55.4	15.9
Accounts receivable	177.8		177.8		135.4
Inventories	231.7		231.7		176.5
Prepaid and refundable income taxes	0.2		0.2		0.1
Deferred taxes	14.6		14.6		12.9
Prepaid expenses and other current assets	19.7		19.7		10.0
TOTAL CURRENT ASSETS	499.4		499.4		372.7
Property, plant and equipment - net	195.2		195.2		151.3
Due from affiliates	1,457.6		1,457.6		1,512.4
Goodwill	212.2		212.2		115.1
Other intangibles - net	940.0		940.0		719.0
INVESTMENT IN AND LOANS TO UNCONSOLIDATED AFFILIATE	43.6		43.6		40.2
OTHER ASSETS	18.7		18.7		17.5
TOTAL ASSETS	3,366.7		3,366.7		2,928.2
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	1.9		1.9		1.8
Current portion of acquisition consideration payable	1.4		1.4		0
Accounts payable	94.0		94.0		67.5
Income taxes payable	9.4		9.4		4.4
Accrued expenses and other current liabilities	68.8		68.8		56.9
TOTAL CURRENT LIABILITIES	175.5		175.5		130.6
NONCURRENT LIABILITIES:
Long-term debt	0.2		0.2		0.2
Obligations under capital leases	24.3		24.3		25.2
Deferred taxes	147.8		147.8		72.1
Acquisition consideration payable	0		0		1.4
Other	19.1		19.1		22.4
TOTAL NONCURRENT LIABILITIES	191.4		191.4		121.3
TOTAL LIABILITIES	366.9		366.9		251.9
EQUITY:
Common stock and additional paid-in capital	2,340.5		2,340.5		2,096.2
Retained earnings	655.1		655.1		574.9
Accumulated other comprehensive (loss) income	4.0		4.0		5.1
Total Jones stockholders' equity	2,999.6		2,999.6		2,676.2
Noncontrolling interest	0.2		0.2		0.1
TOTAL EQUITY	2,999.8		2,999.8		2,676.3
TOTAL LIABILITIES AND EQUITY	3,366.7		3,366.7		2,928.2
Condensed Consolidating Statements of Operations [Abstract]
Net sales	324.1	246.1	660.3	499.9
Licensing income	10.3	10.3	22.4	21.3
Total revenues	334.4	256.4	682.7	521.2
Cost of goods sold	210.2	167.7	434.1	338.5
Gross profit	124.2	88.7	248.6	182.7
Selling, general and administrative expenses	53.3	33.2	105.4	61.6
Operating income	70.9	55.5	143.2	121.1
Net interest expense (income) and financing costs	(1.0)	(1.4)	(2.4)	(2.8)
Equity in income (loss) of unconsolidated affiliate	0.7	0	2.0	(1.8)
(Loss) income before provision (benefit) for income taxes and equity in earnings of subsidiaries	72.6	56.9	147.6	122.1
Provision (benefit) for income taxes	20.7	18.1	42.1	38.7
Net income	51.9	38.8	105.5	83.4
Less: income attributable to noncontrolling interest	0.2	0.1	0.4	0.3
Income attributable to Jones	51.7	38.7	105.1	83.1
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash (used in) provided by operating activities			57.8	15.7
Cash flows from investing activities:
Capital expenditures			(25.0)	(10.3)
Acquisition of KG Group Holdings Limited, net of cash acquired			6.9	0
Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired			0	21.0
Other			0	0.1
Net cash used in investing activities			(18.1)	10.8
Cash flows from financing activities:
Cash distributions to selling members of Stuart Weitzman, LLC			0	(19.0)
Dividends paid			(13.5)	(0.8)
Payments of acquisition consideration payable			6.2	0.7
Other items, net			(1.2)	(1.7)
Net cash provided by (used in) financing activities			(20.9)	(22.2)
Effect of exchange rates on cash			(1.2)	0.3
Net increase (decrease) in cash and cash equivalents			17.6	4.6
Cash and cash equivalents, beginning			37.8	11.3
Cash and cash equivalents, ending	$ 55.4	$ 15.9	$ 55.4	$ 15.9

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Consolidated Statements of Changes in Equity (Unaudited) (USD $) In Millions	Total USD ($)	Common Stock [Member] USD ($)	Additional Paid-in Capital [Member] USD ($)	Retained Earnings [Member] USD ($)	Accumulated Other Comprehensive Income [Member] USD ($)	Treasury Stock [Member] USD ($)	Noncontrolling Interest [Member] USD ($)	Capital Units [Member]
Beginning Balance at Dec. 31, 2009	$ 1,092.5	$ 1.6	$ 1,360.3	$ 1,564.4	$ (7.6)	$ (1,826.3)	$ 0.1
Beginning Balance, Shares at Dec. 31, 2009								85.4
Comprehensive income:
Net income	65.2			64.9			0.3
Reclassification adjustment for hedge gains and losses included in net income	0.2				0.2
Foreign currency translation adjustments	(0.2)				(0.2)
Change in fair value of cash flow hedges	0.1				0.1
Total comprehensive income	65.3
Issuance of restricted stock to employees, net of forfeitures (in shares)								1.7
Amortization expense in connection with employee stock options and restricted stock	13.7		13.7
Tax effects from vesting of restricted stock	(1.5)		(1.5)
Tax effects of expired employee stock options	(0.4)		(0.4)
Dividends on common stock ($0.10 per share)	(8.8)			(8.8)
Exercise of employee stock options	0.6		0.6
Distributions to noncontrolling interest	(0.3)						(0.3)
Ending Balance at Jul. 03, 2010	1,161.1	1.6	1,372.7	1,620.5	(7.5)	(1,826.3)	0.1
Ending Balance, Shares at Jul. 03, 2010								87.1
Beginning Balance at Dec. 31, 2010	1,138.3	0.9	541.9	603.8	(8.4)	0	0.1
Beginning Balance, Shares at Dec. 31, 2010								86.4
Comprehensive income:
Net income	31.2			30.8			0.4
Reclassification adjustment for hedge gains and losses included in net income	0.3				0.3
Foreign currency translation adjustments	(1.4)				(1.4)
Change in fair value of cash flow hedges	(0.4)				(0.4)
Total comprehensive income	29.7
Issuance of restricted stock to employees, net of forfeitures (in shares)								1.7
Amortization expense in connection with employee stock options and restricted stock	11.1		11.1
Tax effects from vesting of restricted stock	0.9		0.9
Tax effects of expired employee stock options	(1.2)		(1.2)
Treasury stock acquired	(28.0)		(13.3)	(14.7)
Treasury stock acquired (in shares)								(2.2)
Dividends on common stock ($0.10 per share)	(8.7)			(8.7)
Other	0.1			0.1
Distributions to noncontrolling interest	(0.3)						(0.3)
Ending Balance at Jul. 02, 2011	$ 1,141.9	$ 0.9	$ 539.4	$ 611.3	$ (9.9)	$ 0	$ 0.2
Ending Balance, Shares at Jul. 02, 2011								85.9

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Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) (USD $) In Millions, except Per Share data	6 Months Ended
	Jul. 02, 2011
Comprehensive income:
Tax (benefit) provision on change in fair value of cash flow hedges	$ (0.2)
Tax (benefit) provision on reclassification adjustment for hedge gains and losses included in net income	$ (0.2)
Dividends declared per share	$ 0.10

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions	6 Months Ended
	Jul. 02, 2011	Jul. 03, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 31.2	$ 65.2
Adjustments to reconcile net income to net cash used in operating activities, net of acquisitions:
Amortization of employee stock options and restricted stock	11.1	13.7
Depreciation and other amortization	38.5	44.2
Impairment losses on property, plant and equipment	2.9	2.1
Adjustments to acquisition consideration payable	25.3	5.2
Equity in (income) loss of unconsolidated affiliate	(2.0)	1.8
Provision for (recovery of) losses on accounts receivable	0.3	(0.3)
Deferred taxes	13.5	8.2
Fair value adjustments related to interest rate swaps and cap	1.9	2.6
Write-off of deferred financing fees	1.9	0
Other items, net	2.9	0.2
Changes in operating assets and liabilities:
Accounts receivable	(12.4)	(55.5)
Inventories	(2.8)	(20.0)
Prepaid expenses and other current assets	(5.0)	(5.8)
Other assets	(4.4)	(16.9)
Accounts payable	(13.3)	12.1
Income taxes payable/prepaid income taxes	9.9	(8.2)
Accrued expenses and other current liabilities	(29.2)	(16.1)
Acquisition consideration payable	(4.8)	0
Other liabilities	0.1	(6.5)
Total adjustments	34.4	(39.2)
Net cash provided by operating activities	65.6	26.0
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(49.5)	(16.3)
Acquisition of KG Group Holdings Limited, net of cash acquired	(143.1)	0
Acquisition of Stuart Weitzman Holdings, LLC, net of cash acquired	0	(159.3)
Acquisition of Moda Nicola International, LLC	0	(14.4)
Other	0	0.1
Net cash used in investing activities	(192.6)	(189.9)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of 6.875% Senior Notes due 2019	300.0	0
Debt issuance costs	(6.8)	0
Costs related to secured revolving credit agreement	(2.9)	(7.2)
Cash distributions to selling members of Stuart Weitzman, LLC	0	(19.0)
Repayment of acquired debt of KG Group Holdings Limited	(174.1)	0
Dividends paid	(8.5)	(8.6)
Payments of acquisition consideration payable	(6.2)	(0.7)
Acquisition of treasury stock	(28.0)	0
Other items, net	0.3	(1.1)
Net cash provided by (used in) financing activities	73.8	(36.6)
EFFECT OF EXCHANGE RATES ON CASH	(1.2)	0.3
Net increase (decrease) in cash and cash equivalents	(54.4)	(200.2)
Cash and cash equivalents, beginning	200.8	333.4
Cash and cash equivalents, ending	$ 146.4	$ 133.2

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BASIS OF PRESENTATION

6 Months Ended

Jul. 02, 2011

Basis of Presentation [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

        The consolidated financial statements include the accounts of The Jones Group Inc. and its subsidiaries. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and in accordance with the requirements of Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements included herein should be read in conjunction with the consolidated financial statements and the footnotes thereto included within our Annual Report on Form 10-K.

        In our opinion, the information presented reflects all adjustments necessary for a fair statement of interim results. All such adjustments are of a normal and recurring nature. The foregoing interim results are not necessarily indicative of the results of operations for the full year ending December 31, 2011.

        Distribution costs. Our cost of sales may not be comparable to those of other entities, since some entities include all of the costs associated with their distribution functions in cost of sales while we include these costs in selling, general and administrative ("SG&A") expenses. Distribution costs included in SG&A expenses for the fiscal quarters ended July 2, 2011 and July 3, 2010 were $21.9 million and $26.8 million, respectively. Distribution costs included in SG&A expenses for the fiscal six months ended July 2, 2011 and July 3, 2010 were $47.0 million and $52.2 million, respectively.

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EARNINGS PER SHARE

6 Months Ended

Jul. 02, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

        The computation of basic and diluted earnings per share is as follows:  

(In millions, except per share amounts)	Fiscal Quarter Ended						Fiscal Six Months Ended
		July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Net income	$	5.4		$	25.8		$	31.2		$	65.2
Less: income attributable to noncontrolling interest		(0.2	)		(0.1	)		(0.4	)		(0.3	)
Income attributable to Jones		5.2			25.7			30.8			64.9
Less: income allocated to participating securities		(0.2	)		(1.2	)		(0.8	)		(3.0	)
Income available to common stockholders of Jones	$	5.0		$	24.5		$	30.0		$	61.9
Weighted average shares outstanding - basic		81.7			82.2			81.9			82.1
Effect of dilutive employee stock options and restricted stock		1.5			0.5			1.4			0.5
Weighted average shares outstanding - diluted		83.2			82.7			83.3			82.6
Earnings per common share attributable to Jones
Basic	$	0.06		$	0.30		$	0.37		$	0.75
Diluted		0.06			0.30			0.36			0.75