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 June 30, 2012

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 o

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 o

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.

Large accelerated filer  x   Accelerated filer  o   Non-accelerated filer  o   Smaller reporting company  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes   o   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 26, 2012 80,284,435

THE JONES GROUP INC.

Index	Page No.
PART I.FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
June 30, 2012, July 2, 2011 and December 31, 2011		3
Consolidated Statements of Operations
Fiscal Quarters and Six Months ended June 30, 2012 and July 2, 2011		4
Consolidated Statements of Comprehensive Income
Fiscal Quarters and Six Months ended June 30, 2012 and July 2, 2011		5
Consolidated Statements of Changes in Equity
Fiscal Six Months ended June 30, 2012 and July 2, 2011		6
Consolidated Statements of Cash Flows
Fiscal Six Months ended June 30, 2012 and July 2, 2011		7
Notes to Consolidated Financial Statements		8
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations		26
Item 3.  Quantitative and Qualitative Disclosures About Market Risk		37
Item 4.  Controls and Procedures		38
PART II.  OTHER INFORMATION
Item 1.  Legal Proceedings		38
Item 2.  Issuer Purchases of Equity Securities		38
Item 5.  Other Information		39
Item 6.  Exhibits		39
Signatures		40
Exhibit Index		41

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^™", "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)

		June 30, 2012			July 2, 2011		December 31, 2011
ASSETS		(Unaudited)			(Unaudited)
Current assets:
Cash and cash equivalents	$	277.1		$	146.4		$	238.8
Accounts receivable		327.2			378.3			339.6
Inventories, primarily finished goods		467.5			523.2			491.1
Prepaid and refundable income taxes		1.4			11.5			11.9
Deferred taxes		27.7			26.2			26.4
Loan to unconsolidated affiliate		-			-			10.0
Prepaid expenses and other current assets		59.1			44.3			37.7
Total current assets		1,160.0			1,129.9			1,155.5
Property, plant and equipment, at cost, less accumulated depreciation and amortization of $590.2, $579.6 and $605.4		271.4			270.2			271.4
Goodwill		256.3			258.9			255.3
Other intangibles, at cost, less accumulated amortization		891.8			947.3			897.4
Investment in and loan to unconsolidated affiliate		38.4			43.6			35.6
Other assets		91.0			109.1			100.1
Total assets	$	2,708.9		$	2,759.0		$	2,715.3
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations	$	2.1		$	1.9		$	2.0
Current portion of acquisition consideration payable		216.7			23.0			194.1
Accounts payable		232.7			230.2			236.2
Income taxes payable		4.6			0.4			1.4
Accrued employee compensation and benefits		36.4			39.2			45.3
Accrued expenses and other current liabilities		98.7			103.3			101.0
Total current liabilities		591.2			398.0			580.0
Long-term debt		834.2			825.4			831.4
Obligations under capital leases		22.3			24.3			23.3
Deferred taxes		69.6			74.9			73.4
Income taxes payable		0.5			8.7			6.7
Acquisition consideration payable		4.8			206.7			17.7
Other noncurrent liabilities		112.4			79.1			93.4
Total liabilities		1,635.0			1,617.1			1,625.9
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 80.2, 85.9 and 81.0		0.8			0.9			0.8
Additional paid-in capital		521.3			539.4			521.8
Retained earnings		579.8			611.3			596.2
Accumulated other comprehensive loss		(28.3	)		(9.9	)		(29.6	)
Total Jones stockholders' equity		1,073.6			1,141.7			1,089.2
Noncontrolling interest		0.3			0.2			0.2
Total equity		1,073.9			1,141.9			1,089.4
Total liabilities and equity	$	2,708.9		$	2,759.0		$	2,715.3

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
		June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Net sales	$	844.3	$	876.7	$	1,767.7	$	1,825.7
Licensing income		10.2		10.4		22.5		22.5
Other revenues		0.3		0.3		0.5		0.5
Total revenues		854.8		887.4		1,790.7		1,848.7
Cost of goods sold		528.6		564.3		1,121.1		1,194.9
Gross profit		326.2		323.1		669.6		653.8
Selling, general and administrative expenses		304.5		278.2		607.7		547.7
Operating income		21.7		44.9		61.9		106.1
Interest income		0.2		0.3		0.4		0.4
Interest expense and financing costs		9.0		37.3		51.9		58.6
Equity in income of unconsolidated affiliate		0.4		0.7		1.3		2.0
Income before provision for income taxes		13.3		8.6		11.7		49.9
Provision for income taxes		4.9		3.2		4.3		18.7
Net income		8.4		5.4		7.4		31.2
Less: income attributable to noncontrolling interest		0.3		0.2		0.5		0.4
Income attributable to Jones	$	8.1	$	5.2	$	6.9	$	30.8
Earnings per common share attributable to Jones
Basic	$	0.11	$	0.06	$	0.09	$	0.37
Diluted		0.10		0.06		0.09		0.36
Weighted average shares outstanding
Basic		75.2		81.7		75.7		81.9
Diluted		76.0		83.2		77.5		83.3
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 COMPREHENSIVE INCOME (UNAUDITED)

(ALL AMOUNTS IN MILLIONS)

	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012		July 2, 2011
Net income	$	8.4		$	5.4		$	7.4	$	31.2
Other comprehensive income (loss):
Change in fair value of cash flow hedges, net of $(0.1), $0.0, $(0.1) and $0.2 tax (provision) benefit		0.2			(0.1	)		0.1		(0.4	)
Reclassification adjustment for hedge gains and losses included in net income, net of  $0.1, $0.0 and $0.1 tax benefit		-			0.2			0.1		0.3
Foreign currency translation adjustments		(8.2	)		(4.6	)		1.1		(1.4	)
Total other comprehensive (loss) income		(8.0	)		(4.5	)		1.3		(1.5	)
Comprehensive income	$	0.4		$	0.9		$	8.7	$	29.7

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 comp-rehensive loss			Non-controlling interest
Balance,  January 1, 2011	86.4	$	1,138.3		$	0.9	$	541.9		$	603.8		$	(8.4	)	$	0.1
Comprehensive income	-		29.7			-		-			30.8			(1.5	)		0.4
Issuance of restricted stock to employees, net of forfeitures	1.7		-			-		-			-			-			-
Amortization of 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	)		-			-			-
Repurchase of common shares	(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
Balance,  January 1, 2012	81.0	$	1,089.4		$	0.8	$	521.8		$	596.2		$	(29.6	)	$	0.2
Comprehensive income	-		8.7			-		-			6.9			1.3			0.5
Issuance of restricted stock to employees, net of forfeitures	2.2		-			-		-			-			-			-
Amortization of restricted stock	-		13.3			-		13.3			-			-			-
Distributions to noncontrolling interest	-		(0.4	)		-		-			-			-			(0.4	)
Tax effects from vesting of restricted stock	-		1.5			-		1.5			-			-			-
Tax effects of expired employee stock options	-		(1.5	)		-		(1.5	)		-			-			-
Repurchase of common shares	(3.0	)	(29.2	)		-		(13.8	)		(15.4	)		-			-
Dividends on common stock ($0.10 per share)	-		(8.1	)		-		-			(8.1	)		-			-
Other	-		0.2			-		-			0.2			-			-
Balance, June 30, 2012	80.2	$	1,073.9		$	0.8	$	521.3		$	579.8		$	(28.3	)	$	0.3

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
	June 30, 2012			July 2, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	7.4		$	31.2
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
Amortization of restricted stock		13.3			11.1
Depreciation and other amortization		44.5			38.5
Impairment losses		0.4			2.9
Adjustments to acquisition consideration payable		19.4			25.3
Equity in income of unconsolidated affiliate		(1.3	)		(2.0	)
Deferred taxes		(7.4	)		13.5
Fair value adjustments related to interest rate swaps and cap		1.4			1.9
Write-off of deferred financing fees		-			1.9
Other items, net		2.4			3.2
Changes in operating assets and liabilities:
Accounts receivable		22.2			(12.4	)
Inventories		24.1			(2.8	)
Prepaid expenses and other current assets		(21.1	)		(5.0	)
Other assets		8.1			(4.4	)
Accounts payable		(3.8	)		(13.3	)
Income taxes payable/prepaid income taxes		6.7			9.9
Accrued expenses and other current liabilities		(10.6	)		(29.2	)
Acquisition consideration payable		(0.8	)		(4.8	)
Other liabilities		19.1			0.1
Total adjustments		116.6			34.4
Net cash provided by operating activities		124.0			65.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(38.2	)		(49.5	)
Contingent consideration paid related to investment in GRI		(3.5	)		-
Acquisition of KG Group Holdings Limited, net of cash acquired		-			(143.1	)
Other		(0.1	)		-
Net cash used in investing activities		(41.8	)		(192.6	)
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		(0.3	)		(2.9	)
Repayment of acquired debt of KG Group Holdings Limited		-			(174.1	)
Dividends paid		(7.9	)		(8.5	)
Repurchases of common stock		(29.0	)		(28.0	)
Payments of acquisition consideration payable		(7.5	)		(6.2	)
Other items, net		1.0			0.3
Net cash (used in) provided by financing activities		(43.7	)		73.8
EFFECT OF EXCHANGE RATES ON CASH		(0.2	)		(1.2	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		38.3			(54.4	)
CASH AND CASH EQUIVALENTS, BEGINNING		238.8			200.8
CASH AND CASH EQUIVALENTS, ENDING	$	277.1		$	146.4

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, 2012.

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 June 30, 2012 and July 2, 2011 were $21.1 million and $21.9 million, respectively.  Distribution costs included in SG&A expenses for the fiscal six months ended June 30, 2012 and July 2, 2011 were $44.7 million and $47.0 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
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Net income	$	8.4	$	5.4	$	7.4	$	31.2
Less: income attributable to noncontrolling interest		0.3		0.2		0.5		0.4
Income attributable to Jones		8.1		5.2		6.9		30.8
Less: income allocated to participating securities		0.2		0.2		-		0.8
Income available to common stockholders of Jones	$	7.9	$	5.0	$	6.9	$	30.0
Weighted-average shares outstanding - basic		75.2		81.7		75.7		81.9
Effect of dilutive employee restricted stock		0.8		1.5		1.8		1.4
Weighted-average shares outstanding - diluted		76.0		83.2		77.5		83.3
Earnings per common share attributable to Jones
Basic	$	0.11	$	0.06	$	0.09	$	0.37
Diluted		0.10		0.06		0.09		0.36

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ACQUISITIONS

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 following the transaction.  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 is 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.

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The following table provides pro forma total revenues and results of operations for the fiscal quarter ended July 2, 2011 as if 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 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 Kurt Geiger.  Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on January 1, 2010, nor are they indicative of the future operating results of the combined companies.

(In millions, except per share amounts)	Fiscal Quarter Ended July 2, 2011		Fiscal Six Months Ended July 2, 2011
Total revenues	$	942.6	$	1,978.9
Net income		8.9		28.1
Earnings per share attributable to Jones
Basic	$	0.10	$	0.33
Diluted		0.10		0.32

The pro forma earnings for the fiscal quarter and six months ended July 2, 2011 were adjusted to exclude $4.7 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.

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 were entitled to receive an additional cash payment equaling 60% of the amount of GRI's fiscal year 2011 net income that exceeded a certain threshold, and on June 21, 2012, we made a cash payment to them of $3.5 million in satisfaction of the obligation.  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.

ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

	June 30, 2012			July 2, 2011			December 31, 2011
(In millions)
Trade accounts receivable	$	352.6		$	409.2		$	367.9
Allowances for doubtful accounts, returns, discounts and co-op advertising		(25.4	)		(30.9	)		(28.3	)
	$	327.2		$	378.3		$	339.6

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 $17.1 million, $14.6 million and $19.7 million at June 30, 2012, July 2, 2011 and December 31, 2011, respectively.  Net revenues from GRI amounted to $29.4 million and $26.5 million for the fiscal six months ended June 30, 2012 and July 2, 2011, respectively.  On April 23, 2009, we converted $10.0 million of the outstanding GRI accounts receivable to a three-year interest-bearing convertible note.  This note was repaid on April 20, 2012.

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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 $0.1 million and $0.2 million of lease termination costs in the fiscal six months ended July 2, 2011 and June 30, 2012, respectively.  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, 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
Balance, January 1, 2012	$	-		$	1.5		$	1.5
Additions		-			0.2			0.2
Payments and reductions		-			(0.2	)		(0.2	)
Balance, June 30, 2012	$	-		$	1.5		$	1.5

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.  The net accrual of $1.5 million at June 30, 2012 is reported as $0.4 million of accrued expenses and other current liabilities and $1.1 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.  We also recorded $7.4 million of lease obligation costs relating to the warehouse.  These costs are reported as SG&A expenses in the domestic wholesale jeanswear segment.  The closing was substantially completed by the end of July 2010.

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

(In millions)	Lease obligations
Balance, January 1, 2011	$	4.1
Additions		0.1
Payments and reductions		(2.3	)
Balance, July 2, 2011	$	1.9
Balance, January 1, 2012	$	0.9
Payments and reductions		(0.1	)
Balance, June 30, 2012	$	0.8

The net accruals of $1.9 million at July 2, 2011 and $0.8 million at June 30, 2012 are reported as accrued expenses and other current liabilities.

Retail Stores

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 benefits.  During the first fiscal six months of 2011 and 2012, we closed 61 and 70 locations, respectively, and we anticipate closing additional locations in 2012.  Total termination benefits and associated employee costs are

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expected to be $11.1 million for approximately 2,167 employees, including both store employees and administrative support personnel.  We recorded $0.5 million and $1.9 million of employee termination costs in the fiscal six months ended July 2, 2011 and June 30, 2012, respectively.  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 $2.5 million and $0.4 million of impairment losses during the fiscal six months ended July 2, 2011 and June 30, 2012, 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.

The details of the retail store restructuring accruals are as follows:

(In millions)	One-time termination benefits
Balance, January 1, 2011	$	2.2
Additions		0.5
Payments and reductions		(1.9	)
Balance, July 2, 2011	$	0.8
Balance, January 1, 2012	$	1.3
Additions		1.9
Payments and reductions		(1.3	)
Balance, June 30, 2012	$	1.9

The net accrual of $0.8 million at July 2, 2011 is reported as accrued expenses and other current liabilities.  The net accrual of $1.9 million at June 30, 2012 is reported as $1.7 million of accrued expenses and other current liabilities and $0.2 million of other noncurrent liabilities.

GOODWILL

The following table presents, by segment and in total, the carrying amount of goodwill for the fiscal quarters ended July 2, 2011 and June 30, 2012.

(In millions)	Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear			Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale			International Retail			Total
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
Balance, December 31, 2011
Goodwill	$	46.7	$	519.2		$	859.8		$	120.6		$	111.6		$	50.4		$	1,708.3
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		46.7		-			46.6			-			111.6			50.4			255.3
Foreign currency translation effects		-		-			-			-			0.5			0.5			1.0
Balance, June 30, 2012
Goodwill		46.7		519.2			859.8			120.6			112.1			50.9			1,709.3
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	46.6		$	-		$	112.1		$	50.9		$	256.3

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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); 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 or had 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, which have fair values calculated by comparing foreign exchange forward rates to the contract rates discounted at our incremental borrowing rate,   which fall within Level 2 of the fair value hierarchy;

· interest rate swap and cap contracts, which have or had fair values calculated by comparing current yield curves and LIBOR rates to the stated contract rates adjusted for estimated risk of counterparty nonperformance,  which fall within Level 2 of the fair value hierarchy;

· long-term debt that was hedged by interest rate swaps as a fair-value hedge, calculated by comparing current yield curves and LIBOR rates to the stated contract rates of the associated interest rate swaps, which falls within Level 2 of the fair value hierarchy; and

· consideration liabilities recorded as a result of the acquisition of Moda Nicola International, LLC ("Moda") and Stuart Weitzman Holdings, LLC ("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 2, 2011, December 31, 2011 and June 30, 2012.

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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 unobserv-able inputs (Level 3)
July 2, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.5	$	9.5	$	-	$	-
British Pound - Euro forward contracts	Prepaid expenses and 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
December 31, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	7.5	$	7.5	$	-	$	-
Interest rate swaps	Other long-term assets		5.5		-		5.5		-
Interest rate cap	Other long-term assets		0.2		-		0.2		-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Total assets		$	13.3	$	7.5	$	5.8	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	7.5	$	7.5	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		0.2		0.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		192.7		-		-		192.7
5.125% Senior Notes  due 2014	Long-term debt		263.0		-		263.0		-
Acquisition consideration	Acquisition consideration payable, net of current portion		17.7		-		-		17.7
Total liabilities		$	481.1	$	7.7	$	263.0	$	210.4
June 30, 2012:
Rabbi Trust assets	Prepaid expenses and other current assets	$	8.0	$	8.0	$	-	$	-
British Pound- U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Total assets		$	8.2	$	8.0	$	0.2	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	8.0	$	8.0	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		0.2		0.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		216.7		-		-		216.7
Acquisition consideration	Acquisition consideration payable, net of current portion		4.8		-		-		4.8
Total liabilities		$	229.7	$	8.2	$	-	$	221.5

The following table presents the changes in Level 3 contingent consideration liability for the fiscal six months ended July 2, 2011 and June 30, 2012.

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(In millions)	Acquisition of Moda			Acquisition of SWH			Total Acquisition Consideration Payable
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
Beginning balance, January 1, 2012	$	14.8		$	195.6		$	210.4
Payments		(3.5	)		(4.8	)		(8.3	)
Total adjustments included in earnings		(4.1	)		23.5			19.4
Balance, June 30, 2012	$	7.2		$	214.3		$	221.5

The following table represents quantitative information about the Level 3 contingent consideration liability measurements at June 30, 2012.

(In millions)	Fair Value at June 30, 2012		Valuation technique	Unobservable inputs	Range (Weighted Average)
Acquisition of Moda	$	7.2	Discounted projection of financial results	Net sales growth Gross margin multiplier Discount rate	-32% - +10% (-3.0%) 1.63 - 1.70 (1.68) 11.7%
Acquisition of SWH	$	214.3	Discounted projection of financial results and future cash flow	EBITDA (1) growth EBITDA (1) multiplier Discount rate	-18% - +22% (2.1%) 8.0 - 9.0 (8.3) 11.7%

(1) - Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in the acquisition agreement.

The valuation processes for the contingent consideration liabilities are based on the associated acquisition agreements.  Our inputs include probability-weighted projections of financial results and cash flows for the acquired business and a discount rate based on our weighted average cost of capital.  We internally calculate the estimated liability using projected financial information provided by the operating divisions.

The significant unobservable inputs used in the fair value measurement of the Moda contingent consideration liability are net sales growth, a gross margin multiplier (as defined in the acquisition agreement) and a discount factor.  An increase in the net sales or gross margin multiplier inputs would increase the fair value of the liability, while an increase in the discount rate would decrease the fair value of the liability.  There is no interrelationship between the unobservable inputs.  Changes in the fair value of the Moda contingent consideration liability are reported as adjustments to SG&A expenses in the domestic wholesale sportswear segment.

The significant unobservable inputs used in the fair value measurement of the SWH contingent consideration liability are probability-weighted projected EBITDA growth, the EBITDA multiplier (as defined in the acquisition agreement) and a discount rate.  An increase to the EBITDA growth or multiplier would increase the fair value of the liability, while an increase in the discount rate would decrease the fair value of the liability.  The EBITDA multiplier is based on the achieved level of EBITDA.  There is no interrelationship between the discount rate to the other unobservable inputs.  Changes in the fair value of the contingent consideration liability for SWH are reported as adjustments to interest expense.

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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 2, 2011 and June 30, 2012, 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 unobserv-able inputs (Level 3)		Total losses recorded for the fiscal six months
At July 2, 2011:
Property and equipment	$	-	$	-	$	-	$	-	$	2.5
Transportation equipment		0.6		0.6		-		-		0.4
At June 30, 2012:
Property and equipment		-		-		-		-		0.4

During the fiscal six months ended July 2, 2011 and June 30, 2012, property and equipment utilized in our retail operations with a carrying amount of $2.5 million and $0.4 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 quarter 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 June 30, 2012, we had outstanding foreign exchange contracts to exchange Canadian Dollars for a total notional value of US$10.2 million at a weighted-average exchange rate of 1.00 maturing through November 2012 and to exchange £3 million for U.S. Dollars at an exchange rate of 1.61 maturing in December 2012.

At June 30, 2012, July 2, 2011 and December 31, 2011, 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 estimated fair values of other financial instruments subject to fair value disclosures were valued using market comparable inputs.  These inputs include broker quotes, quoted market prices, interest rates and exchange rates for the same or similar instruments.  The fair value and related carrying amounts for items not disclosed elsewhere are as follows:

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(In millions)	June 30, 2012						July 2, 2011				December 31, 2011
	Fair Value Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Senior Notes, including hedged items recorded at fair value		1	$	824.4	$	732.5	$	815.3	$	740.5	$	821.7	$	692.6
Other long-term debt, including current portion		2		9.9		8.7		10.3		9.1		9.8		8.2
Note receivable from GRI		2		-		-		10.0		10.0		10.0		10.0
Other notes receivable		2		2.8		1.7		-		-		-		-

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.  The terms and conditions of our Credit Facility provide for, among other things: (1) a $350 million U.S. commitment which may be drawn by the U.S. borrowers as revolving loans in U.S. Dollars or letters of credit in Canadian Dollars, U.S. Dollars, or an "LC Alternative Currency" (namely Euros, sterling, or any other currency acceptable to the lenders); and (2) 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 Canadian Dollars, U.S. Dollars, or an LC Alternative Currency.  Up to the entire amount of the Credit Facility is available for cash borrowings, with an overall sublimit of up to $350 million for all letters of credit.  All of the overall $350 million sublimit may be used for trade letters of credit; and within that overall sublimit, there are additional sublimits, including (but not limited to) $50 million for standby letters of credit and $150 million for letters of credit under the U.S. commitment denominated in an LC Alternative Currency.

        Borrowings under the Credit Facility may be used to refinance certain 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 June 30, 2012, we had no cash borrowings and $16.3 million of letters of credit outstanding, and our remaining availability was $381.6 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, 2012 and is renewable on an annual basis, under which no cash borrowings and $1.1 million in letters of credit were outstanding at June 30, 2012.  Cash borrowings under this facility bear interest based

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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 2013 and is renewable on an annual basis, under which no amounts were outstanding at June 30, 2012.

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 the Credit Facility.  In connection with the issuance of the 2019 Notes, we had three outstanding 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 Cap

On December 14, 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 (which are reset on the 15^th 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 had an effective date of December 17, 2010 and a termination date of November 15, 2014, the date the 2014 Notes mature.  On June 8, 2012, we de-designated the hedging relationship between the swaps and the 2014 Notes and received $5.7 million upon termination of the swaps.  The related fair market valuation adjustment to the 2014 Notes is being amortized as a reduction of interest expense over the remaining life of the 2014 notes.

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 were required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15^th 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 had an effective date of March 7, 2011 and a termination date of March 15, 2019, the date the 2019 Notes mature.  On August 3, 2011 we de-designated the hedging relationship between the swaps and the 2019 Notes and received $8.1 million upon termination of the swaps.  The related fair market valuation adjustment to the 2019 Notes will be amortized as a reduction of interest expense over the remaining life of the 2019 Notes.

On March 19, 2012, 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 were required to make semiannual variable-rate payments to the counterparties calculated based on one-month LIBOR rates (which were reset on the 15^th day of each calendar quarter) plus 5.195%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 6.875%.  The swap transactions had an effective date of March 21, 2012 and a termination date of March 15, 2019, the date the 2019 Notes mature.  On May 31, 2012, we de-designated the hedging relationship between the swaps and the 2019 Notes and received $3.5 million upon termination of the swaps.  The related fair market valuation adjustment to the 2019 Notes is being amortized as a reduction of interest expense over the remaining life of the 2019 Notes.

We also have outstanding an interest rate cap that was used in conjunction with the interest rate swaps on the 2014 Notes to limit our floating rate exposure.  The cap limits our three-month LIBOR rate exposure to 5.0%.  The cap has a termination date of November 15, 2014.

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The swap transactions were designated as hedges of the fair value of the related notes.  The fair values of the swaps were 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 were also recorded through interest expense.  As these changes in fair value did not exactly offset each other, the net effect on earnings represented 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 net (decreases) increases in interest expense related to the ineffectiveness of the swaps and the changes in the fair value of the cap as follows.

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012		July 2, 2011
Interest rate swaps	$	(0.2	)	$	(0.9	)	$	1.3	$	1.2
Interest rate cap		-			0.5			0.2		0.7
Net (decrease) increase in interest expense	$	(0.2	)	$	(0.4	)	$	1.5	$	1.9

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 rate at the reporting date.

We currently have outstanding forward contracts to exchange Canadian Dollars for U.S. Dollars.  These 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.

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 June 30, 2012 amounts, we estimate that any reclassifications from other comprehensive income to earnings within the next 12 months will not be material.

The notional amounts of our foreign exchange contracts outstanding at June 30, 2012, July 2, 2011 and December 31, 2011 are as follows.

(In millions)	Notional Amounts
	June 30, 2012		July 2, 2011		December 31, 2011
Canadian Dollar - U.S. Dollar forward exchange contracts	US$10.2		US$10.3		US$5.3
British Pound - Euro forward exchange contracts		-		€2.4		-
British Pound - U.S. Dollar exchange options		-	US$2.5			-
British Pound - U.S. Dollar forward exchange contracts		£3.0		-		-

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Fair Values of Derivative Instruments

(In millions)	June 30, 2012			July 2, 2011			December 31, 2011
	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	$	5.5
Foreign exchange contracts	Prepaid expenses and other current assets		0.1			-	Prepaid expenses and other current assets		0.1
Total derivative assets		$	0.1		$	5.1		$	5.6
Foreign exchange contracts				Accrued expenses and other current liabilities	$	0.6
Total derivative liabilities					$	0.6
Derivatives not designated as hedging instruments
Foreign exchange contracts	Prepaid expenses and other current assets	$	0.1	Prepaid expenses and other current assets	$	0.1		$	-
Interest rate cap contract			-	Other long-term assets		0.6	Other long-term assets		0.2
Total derivative assets		$	0.1		$	0.7		$	0.2

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

(In millions)		Amount of Pretax (Loss) due to Ineffectiveness Recognized in Income
Derivative type	Location of Pretax (Loss) due to Ineffectiveness Recognized in Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
Interest rate swap contracts	Interest expense		$	(1.3	)		$	(1.2	)

(In millions)	Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income								Amount of Pretax (Loss) Reclassified from Other Comprehensive Income into Income
Derivative type	Fiscal Six Months Ended June 30, 2012			Fiscal Six Months Ended July 2, 2011				Location of Pretax (Loss) Reclassified from Other Comprehensive Income into Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
Canadian Dollar - U.S. Dollar forward contracts		$	0.2		$	(0.6	)	Cost of sales		$	(0.1	)		$	(0.4	)

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

(In millions)		Amount of Pretax Gain (Loss) Recognized in Income
Derivative type	Location of Pretax (Loss) Recognized in Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
British Pound - Euro forward contracts	Selling, general and administrative expenses		$	-			$	0.1
Interest rate cap contract	Interest expense			(0.2	)			(0.7	)

- 20 -

STATEMENT OF CASH FLOWS

Fiscal Six Months Ended	June 30, 2012		July 2, 2011
(In millions)
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	26.0	$	21.0
Net income tax payments (refunds)		1.1		(7.4	)
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees		20.8		26.2
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger		-		10.2

PENSION PLANS

Components of Net Periodic Benefit Cost

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
Interest cost	$	0.6		$	0.7		$	1.2		$	1.3
Expected return on plan assets		(0.7	)		(0.7	)		(1.3	)		(1.3	)
Amortization of net loss		0.6			0.4			1.1			0.9
Net periodic benefit cost	$	0.5		$	0.4		$	1.0		$	0.9

Employer Contributions

During the fiscal six months ended June 30, 2012, we contributed $1.1 million to our defined benefit pension plan.  We anticipate contributing a total of $6.5 million during 2012.

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.  Our operations are 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.

- 21 -

Summarized below are our revenues and income by reportable segment for the fiscal quarters and six months ended June 30, 2012 and July 2, 2011.  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 & Access-ories			Domestic Retail			International Wholesale		International Retail			Licensing, Other & Eliminations			Consolidated
For the fiscal quarter ended June 30, 2012
Revenues	$	174.8	$	151.0	$	195.5		$	150.6		$	75.4	$	97.3		$	10.2		$	854.8
Segment income (loss)	$	8.9	$	7.0	$	(1.6	)	$	(3.0	)	$	9.7	$	3.7		$	(3.0	)		21.7
Net interest expense																				(8.8	)
Equity in income of unconsolidated affiliate																				0.4
Income before provision for income taxes																			$	13.3
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 unconsolidated affiliate																				0.7
Income before provision for income taxes																			$	8.6
For the fiscal six months ended June 30, 2012
Revenues	$	408.4	$	335.8	$	421.3		$	278.7		$	148.8	$	175.2		$	22.5		$	1,790.7
Segment income (loss)	$	32.2	$	23.6	$	16.7		$	(25.4	)	$	19.6	$	(1.3	)	$	(3.5	)		61.9
Net interest expense																				(51.5	)
Equity in income of unconsolidated affiliate																				1.3
Income before provision for income taxes																			$	11.7
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 unconsolidated affiliate																				2.0
Income before provision for income taxes																			$	49.9

- 22 -

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, statements of consolidated comprehensive income 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)

	June 30, 2012												December 31, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
ASSETS
Current assets:
Cash and cash equivalents	$	210.6		$	66.5		$	-		$	277.1		$	195.8		$	43.0		$	-		$	238.8
Accounts receivable		173.0			154.2			-			327.2			182.9			156.7			-			339.6
Inventories		258.7			210.1			(1.3	)		467.5			270.5			220.9			(0.3	)		491.1
Prepaid and refundable income taxes		16.8			3.9			(19.3	)		1.4			5.3			4.9			1.7			11.9
Deferred taxes		14.5			13.2			-			27.7			13.2			13.2			-			26.4
Prepaid expenses and other current assets		37.5			21.6			-			59.1			21.5			26.2			-			47.7
Total current assets		711.1			469.5			(20.6	)		1,160.0			689.2			464.9			1.4			1,155.5
Property, plant and equipment		60.0			211.4			-			271.4			64.9			206.5			-			271.4
Due from affiliates		-			288.3			(288.3	)		-			-			1,604.4			(1,604.4	)		-
Goodwill		46.7			209.6			-			256.3			46.7			208.6			-			255.3
Other intangibles		6.4			885.4			-			891.8			6.9			890.5			-			897.4
Deferred taxes		92.3			-			(92.3	)		-			80.6			-			(80.6	)		-
Investments in and loan to subsidiaries		1,713.9			38.4			(1,713.9	)		38.4			3,047.9			35.6			(3,047.9	)		35.6
Other assets		70.2			20.8			-			91.0			79.3			20.8			-			100.1
Total assets	$	2,700.6		$	2,123.4		$	(2,115.1	)	$	2,708.9		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations	$	-		$	2.1		$	-		$	2.1		$	-		$	2.0		$	-		$	2.0
Current portion of acquisition consideration payable		216.7			-			-			216.7			192.7			1.4			-			194.1
Accounts payable		130.2			102.5			-			232.7			139.7			96.5			-			236.2
Income taxes payable		16.6			27.6			(39.6	)		4.6			11.2			8.3			(18.1	)		1.4
Accrued expenses and other current liabilities		71.3			63.8			-			135.1			79.0			67.3			-			146.3
Total current liabilities		434.8			196.0			(39.6	)		591.2			422.6			175.5			(18.1	)		580.0
Long-term debt		834.1			0.1			-			834.2			831.3			0.1			-			831.4
Obligations under capital leases		-			22.3			-			22.3			-			23.3			-			23.3
Income taxes payable		0.5			-			-			0.5			6.7			-			-			6.7
Deferred taxes		-			167.9			(98.3	)		69.6			-			160.0			(86.6	)		73.4
Acquisition consideration payable		4.8			-			-			4.8			17.7			-			-			17.7
Due to affiliates		288.3			-			(288.3	)		-			1,604.4			-			(1,604.4	)		-
Other		87.8			24.6			-			112.4			67.7			25.7			-			93.4
Total liabilities		1,650.3			410.9			(426.2	)		1,635.0			2,950.4			384.6			(1,709.1	)		1,625.9
Equity:
Common stock and additional paid-in capital		522.1			947.8			(947.8	)		522.1			522.6			2,352.4			(2,352.4	)		522.6
Retained earnings		556.5			771.7			(748.4	)		579.8			572.1			704.3			(680.2	)		596.2
Accumulated other comprehensive (loss) income		(28.3	)		(7.3	)		7.3			(28.3	)		(29.6	)		(10.2	)		10.2			(29.6	)
Total Jones stockholders' equity		1,050.3			1,712.2			(1,688.9	)		1,073.6			1,065.1			3,046.5			(3,022.4	)		1,089.2
Noncontrolling interest		-			0.3			-			0.3			-			0.2			-			0.2
Total equity		1,050.3			1,712.5			(1,688.9	)		1,073.9			1,065.1			3,046.7			(3,022.4	)		1,089.4
Total liabilities and equity	$	2,700.6		$	2,123.4		$	(2,115.1	)	$	2,708.9		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3

- 23 -

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended June 30, 2012											Fiscal Quarter Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	516.6		$	333.7		$	(6.0	)	$	844.3	$	557.3		$	324.1		$	(4.7	)	$	876.7
Licensing income		-			10.2			-			10.2		0.1			10.3			-			10.4
Other revenues		0.3			-			-			0.3		0.3			-			-			0.3
Total revenues		516.9			343.9			(6.0	)		854.8		557.7			334.4			(4.7	)		887.4
Cost of goods sold		333.8			198.6			(3.8	)		528.6		356.3			210.2			(2.2	)		564.3
Gross profit		183.1			145.3			(2.2	)		326.2		201.4			124.2			(2.5	)		323.1
Selling, general and administrative expenses		216.2			90.3			(2.0	)		304.5		227.2			53.3			(2.3	)		278.2
Operating (loss) income		(33.1	)		55.0			(0.2	)		21.7		(25.8	)		70.9			(0.2	)		44.9
Net interest expense (income) and financing costs		9.2			(0.4	)		-			8.8		38.0			(1.0	)		-			37.0
Equity in income of unconsolidated affiliate		-			0.4			-			0.4		-			0.7			-			0.7
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(42.3	)		55.8			(0.2	)		13.3		(63.8	)		72.6			(0.2	)		8.6
(Benefit) provision for income taxes		(12.2	)		17.1			-			4.9		(17.5	)		20.7			-			3.2
Equity in earnings of subsidiaries		38.4			-			(38.4	)		-		51.5			-			(51.5	)		-
Net income		8.3			38.7			(38.6	)		8.4		5.2			51.9			(51.7	)		5.4
Less: income attributable to noncontrolling interest		-			0.3			-			0.3		-			0.2			-			0.2
Income attributable to Jones	$	8.3		$	38.4		$	(38.6	)	$	8.1	$	5.2		$	51.7		$	(51.7	)	$	5.2

	Fiscal Six Months Ended June 30, 2012											Fiscal Six Months Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,087.2		$	693.3		$	(12.8	)	$	1,767.7	$	1,174.9		$	660.3		$	(9.5	)	$	1,825.7
Licensing income		-			22.5			-			22.5		0.1			22.4			-			22.5
Other revenues		0.5			-			-			0.5		0.5			-			-			0.5
Total revenues		1,087.7			715.8			(12.8	)		1,790.7		1,175.5			682.7			(9.5	)		1,848.7
Cost of goods sold		711.1			417.5			(7.5	)		1,121.1		764.5			434.1			(3.7	)		1,194.9
Gross profit		376.6			298.3			(5.3	)		669.6		411.0			248.6			(5.8	)		653.8
Selling, general and administrative expenses		422.8			189.1			(4.2	)		607.7		447.9			105.4			(5.6	)		547.7
Operating (loss) income		(46.2	)		109.2			(1.1	)		61.9		(36.9	)		143.2			(0.2	)		106.1
Net interest expense (income) and financing costs		52.4			(0.9	)		-			51.5		60.6			(2.4	)		-			58.2
Equity in income of unconsolidated affiliate		-			1.3			-			1.3		-			2.0			-			2.0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(98.6	)		111.4			(1.1	)		11.7		(97.5	)		147.6			(0.2	)		49.9
(Benefit) provision for income taxes		(28.1	)		32.8			(0.4	)		4.3		(23.4	)		42.1			-			18.7
Equity in earnings of subsidiaries		78.3			-			(78.3	)		-		105.0			-			(105.0	)		-
Net income		7.8			78.6			(79.0	)		7.4		30.9			105.5			(105.2	)		31.2
Less: income attributable to noncontrolling interest		-			0.5			-			0.5		-			0.4			-			0.4
Income attributable to Jones	$	7.8		$	78.1		$	(79.0	)	$	6.9	$	30.9		$	105.1		$	(105.2	)	$	30.8

- 24 -

Condensed Consolidating Statements of Other Comprehensive Income

(In millions)

	Fiscal Quarter Ended June 30, 2012												Fiscal Quarter Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net income	$	8.3		$	38.7		$	(38.6	)	$	8.4		$	5.2		$	51.9		$	(51.7	)	$	5.4
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.2			0.2			(0.2	)		0.2			(0.1	)		(0.1	)		0.1			(0.1	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		-			-			-			-			0.2			0.2			(0.2	)		0.2
Foreign currency translation adjustments		(8.2	)		(8.2	)		8.2			(8.2	)		(4.6	)		(4.6	)		4.6			(4.6	)
Total other comprehensive income		(8.0	)		(8.0	)		8.0			(8.0	)		(4.5	)		(4.5	)		4.5			(4.5	)
Comprehensive income	$	0.3		$	30.7		$	(30.6	)	$	0.4		$	0.7		$	47.4		$	(47.2	)	$	0.9

	Fiscal Six Months Ended June 30, 2012									Fiscal Six Months Ended July 2, 2011
	Issuers		Others		Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net income	$	7.8	$	78.6	$	(79.0	)	$	7.4	$	30.9		$	105.5		$	(105.2	)	$	31.2
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.1		0.1		(0.1	)		0.1		(0.4	)		(0.4	)		0.4			(0.4	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		0.1		0.1		(0.1	)		0.1		0.3			0.3			(0.3	)		0.3
Foreign currency translation adjustments		1.1		1.1		(1.1	)		1.1		(1.4	)		(1.4	)		1.4			(1.4	)
Total other comprehensive income		1.3		1.3		(1.3	)		1.3		(1.5	)		(1.5	)		1.5			(1.5	)
Comprehensive income	$	9.1	$	79.9	$	(80.3	)	$	8.7	$	29.4		$	104.0		$	(103.7	)	$	29.7

Condensed Consolidating Statements of Cash Flows

(In millions)

	Fiscal Six Months Ended June 30, 2012												Fiscal Six Months Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash provided by operating activities	$	58.7		$	71.2		$	(5.9	)	$	124.0		$	21.3		$	57.8		$	(13.5	)	$	65.6
Cash flows from investing activities:
Capital expenditures		(9.0	)		(29.2	)		-			(38.2	)		(24.5	)		(25.0	)		-			(49.5	)
Contingent consideration paid related to investment in GRI		-			(3.5	)		-			(3.5	)		-			-			-			-
Acquisition of KG Group Holdings Limited, net of cash acquired		-			-			-			-			(150.0	)		6.9			-			(143.1	)
Other		-			(0.1	)		-			(0.1	)		-			-			-			-
Net cash used in investing activities		(9.0	)		(32.8	)		-			(41.8	)		(174.5	)		(18.1	)		-			(192.6	)
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		(0.3	)		-			-			(0.3	)		(2.9	)		-			-			(2.9	)
Repayment of acquired debt of KG Group Holdings Limited		-			-			-			-			(174.1	)		-			-			(174.1	)
Dividends paid		(7.9	)		(5.9	)		5.9			(7.9	)		(8.5	)		(13.5	)		13.5			(8.5	)
Repurchase of common shares		(29.0	)		-			-			(29.0	)		(28.0	)		-			-			(28.0	)
Payments of acquisition consideration payable		-			(7.5	)		-			(7.5	)		-			(6.2	)		-			(6.2	)
Other items, net		2.3			(1.3	)		-			1.0			1.5			(1.2	)		-			0.3
Net cash (used in) provided by financing activities		(34.9	)		(14.7	)		5.9			(43.7	)		81.2			(20.9	)		13.5			73.8
Effect of exchange rates on cash		-			(0.2	)		-			(0.2	)		-			(1.2	)		-			(1.2	)
Net increase (decrease) in cash and cash equivalents		14.8			23.5			-			38.3			(72.0	)		17.6			-			(54.4	)
Cash and cash equivalents, beginning		195.8			43.0			-			238.8			163.0			37.8			-			200.8
Cash and cash equivalents, ending	$	210.6		$	66.5		$	-		$	277.1		$	91.0		$	55.4		$	-		$	146.4

SUBSEQUENT EVENTS

On July 2, 2012, we acquired an 80% interest in Brian Atwood-related intellectual property from BA Holding Group, Inc., BKA International, Inc. and Brian Atwood, we acquired 100% of the equity interests in Atwood Italia S.r.l., and we acquired certain assets and assumed certain liabilities of Brian Atwood, Ltd.  The purchase price was $5.0 million.  Acquisition-related expenses incurred during the fiscal six months ended June 30, 2012 were $0.6 million.  This acquisition will be reported as part of our international wholesale and licensing, eliminations and other segments.

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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 June 30, 2012 (hereinafter referred to as the "second fiscal quarter of 2012" and "the first fiscal six months of 2012," respectively) and July 2, 2011 (hereinafter referred to as the "second fiscal quarter of 2011" and "the first fiscal six months of 2011," 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 and women's and men's footwear and accessories.  We sell our products through a broad array of distribution channels, including better specialty stores, 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 2012 to date, the following significant events took place:

· on February 17, 2012, we announced the creation of The Jones Group Fashion Office to support the growth of core and emerging brands, and

· on July 2, 2012, we acquired an 80% interest in Brian Atwood-related intellectual property from BA Holding Group, Inc., BKA International, Inc. and Brian Atwood, we acquired 100% of the equity interests in Atwood Italia S.r.l., and we acquired certain assets and assumed certain liabilities of Brian Atwood, Ltd.

Retail Store Closings

We continue to review our domestic retail operations for underperforming locations.  As a result of these reviews, we have decided to close retail locations that no longer provide strategic benefits.  During the first six months of 2012 and 2011, we closed 70 and 61 locations, respectively, and we anticipate closing additional locations in 2012.  We accrued $1.9 million and $0.5 million of termination benefits and associated employee costs during the first fiscal six months of 2012 and 2011, respectively.  In connection with our decision to close these stores, we reviewed the associated long-term assets for impairments.  As a result of these reviews, we recorded $0.4 million and $2.5 million of impairment losses in the first fiscal six months of 2012 and 2011, respectively, on leasehold improvements and furniture and fixtures located in the stores to be closed.  These costs are reported as selling, general and administrative ("SG&A") expenses in the 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 and acquisition consideration liabilities.  Estimates related to accounts receivable and inventory affect all of our reportable 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 affect all of our segments.  Estimates related to our acquisition consideration liabilities affect our domestic wholesale sportswear segment and our interest expense.

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

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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.  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 could 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.  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 liabilities; (ii) gross margin or earnings before interest, taxes, depreciation and amortization ("EBITDA") multipliers as specified in the associated acquisition agreements; and (iii) estimated ranges of sales or EBITDA growth.  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.

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
	June 30, 2012				July 2, 2011				June 30, 2012				July 2, 2011
Net sales	$	844.3	98.8	%	$	876.7	98.8	%	$	1,767.7	98.7	%	$	1,825.7	98.8	%
Licensing income		10.2	1.2			10.4	1.2			22.5	1.3			22.5	1.2
Other revenues		0.3	0.0			0.3	0.0			0.5	0.0			0.5	0.0
Total revenues		854.8	100.0			887.4	100.0			1,790.7	100.0			1,848.7	100.0
Cost of goods sold		528.6	61.8			564.3	63.6			1,121.1	62.6			1,194.9	64.6
Gross profit		326.2	38.2			323.1	36.4			669.6	37.4			653.8	35.4
Selling, general and administrative expenses		304.5	35.6			278.2	31.4			607.7	33.9			547.7	29.6
Operating income		21.7	2.5			44.9	5.1			61.9	3.5			106.1	5.7
Net interest expense and financing costs		8.8	1.0			37.0	4.2			51.5	2.9			58.2	3.1
Equity in income of unconsolidated affiliate		0.4	0.0			0.7	0.1			1.3	0.1			2.0	0.1
Income before provision for income taxes		13.3	1.6			8.6	1.0			11.7	0.7			49.9	2.7
Provision for income taxes		4.9	0.6			3.2	0.4			4.3	0.2			18.7	1.0
Net income		8.4	1.0			5.4	0.6			7.4	0.4			31.2	1.7
Less: income attributable to noncontrolling interest		0.3	0.0			0.2	0.0			0.5	0.0			0.4	0.0
Income attributable to Jones	$	8.1	0.9	%	$	5.2	0.6	%	$	6.9	0.4	%	$	30.8	1.7	%

Percentage totals may not add due to rounding.

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Fiscal Quarter Ended June 30, 2012 Compared with Fiscal Quarter Ended July 2, 2011

Revenues.  Total revenues for the second fiscal quarter of 2012 were $854.8 million, compared with $887.4 million for the second fiscal quarter of 2011, a decrease of 3.7%.  Revenues by segment were as follows:

(In millions)	Second Fiscal Quarter of 2012		Second Fiscal Quarter of 2011		Increase (Decrease		)	Percent Change
Domestic wholesale sportswear	$	174.8	$	203.0	$	(28.2	)		(13.9	%)
Domestic wholesale jeanswear		151.0		189.1		(38.1	)		(20.1	)
Domestic wholesale footwear and accessories		195.5		188.4		7.1			3.8
Domestic retail		150.6		166.5		(15.9	)		(9.5	)
International wholesale		75.4		76.6		(1.2	)		(1.6	)
International retail		97.3		53.4		43.9			82.2
Licensing and other		10.2		10.4		(0.2	)		(1.9	)
Total revenues	$	854.8	$	887.4	$	(32.6	)		(3.7	%)

Domestic wholesale sportswear revenues decreased $28.2 million, primarily due to decreased revenues in our Jones New York- and Anne Klein-related sportswear product lines (resulting from reduced shipments to lower-performing retail doors), our Joneswear product lines (resulting from a change in retail strategy at J.C. Penney Company, Inc. ("Penney's")) and our Le Suit and Kasper suit product lines (resulting from poor product performance at the retail level).  These decreases were partially offset by increased revenues in our Kasper suit separates and sportswear lines, as well as in our Rachel Roy product line (resulting from positive product performance at the retail level).

Domestic wholesale jeanswear revenues decreased $38.1 million, primarily due to reduced shipments of our l.e.i. product line (resulting from a change in retail strategy at Wal-Mart Stores Inc. ("Walmart") which resulted in lower shipments of jeanswear replenishment product), our Gloria Vanderbilt and Erika product lines (resulting from the change in Penney's retail strategy), our Grane jeanswear line (resulting from poor product performance at the retail level) and our Energie product line (resulting from the challenging retail climate in the moderate junior tops business as well as product assortment issues).  These decreases were partially offset by increased shipments of our Jessica Simpson product lines (resulting from positive product performance at the retail level and new product extensions).

Domestic wholesale footwear and accessories revenues increased $7.1 million, primarily due to increased shipments of our handbag and jewelry product lines (resulting from positive performance at the retail level for our AK Anne Klein handbags and jewelry, Nine West handbags and jewelry, and Jones New York and Givenchy jewelry), the initial launch of our B Brian Atwood footwear product line, increased shipments of our Easy Spirit, Enzo Angiolini, and Circa Joan & David footwear product lines (resulting from positive performance at the retail level), and increased shipments of our Bandolino and Jones New York footwear lines to off-price and club retailers.  These increases were partially offset by reduced shipments of our Mootsies Tootsies product line (resulting from the decision of a wholesale customer to exit the brand), our Nine West and Stuart Weitzman footwear product lines (attributable to the timing of shipments), and our Boutique 9 footwear product lines (resulting from poor performance at the retail level), and by the conversion of our children's footwear product lines to a licensed business.

Domestic retail revenues decreased $15.9 million.  Revenue decreases were primarily the result of a 4.5% decrease in comparable store sales ($6.7 million) resulting from poor product performance, primarily in the ready-to-wear stores, and a net $9.2 million reduction in revenues primarily related to our program to close underperforming locations.  We began the current quarter with 633 retail locations and had a net decrease of 26 locations to end the quarter with 607 locations, compared with 703 locations at the end of the prior period.  Our comparable apparel store sales decreased 10.1% ($3.9 million), our comparable e-commerce business sales decreased 10.6% ($1.8 million), and our comparable footwear store sales decreased 1.1% ($1.0 million).  Comparable stores are locations (including e-commerce sites)

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that have been open for a full year and are not scheduled to close, be expanded or downsized by more than 25% or relocated to a different street or mall in the current period.

International wholesale revenues decreased $1.2 million, primarily due to a $1.5 million decrease in our Nine West international business (attributable to the timing of product shipments to our licensed distributor in Asia and the effect of sales to Kurt Geiger in the prior period (as these revenues are now recorded as intercompany sales, partially offset by increased sales to our licensed distributor in the Middle East), a $0.5 million decrease in our Canadian business (resulting from reduced sales of our Anne Klein products and from the timing of shipments), a $0.8 million decrease in our Stuart Weitzman European business (resulting from decreased shipments to Western European stores, partially offset by increased shipments to franchisee stores), and a $0.8 million reduction in our Jones New York shipments to Mexico (resulting from poor performance at the retail level). These decreases were partially offset by $2.4 million of sales in the current period resulting from the acquisition of Kurt Geiger.

International retail revenues increased $43.9 million, primarily due to $43.8 million of sales resulting from the acquisition of Kurt Geiger and a $0.7 million increase in sales in our Canadian and Stuart Weitzman European retail locations (resulting from higher average realized selling prices).  These increases were partially offset by a $0.6 million reduction in sales of our Jones New York products in our Spanish retail locations.  We began the current quarter with 320 international stores and had a net increase of two locations to end the quarter with 322 stores, compared with 294 locations at the end of the prior period.

Licensing and other revenues decreased $0.2 million, primarily due to overall decreased sales volume of our licensees.

Gross Profit.  The gross profit margins were 38.2% and 36.4% for the second fiscal quarters of 2012 and 2011, respectively.

Domestic wholesale sportswear gross profit margins were 34.6% and 34.8% for the second fiscal quarters of 2012 and 2011, respectively.  The decrease was due to slightly higher levels of markdown assistance granted to our customers and the mix of products sold.

Domestic wholesale jeanswear gross profit margins were 24.2% and 22.8% for the second fiscal quarters of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold.

Domestic wholesale footwear and accessories gross profit margins were 29.3% and 30.5% for the second fiscal quarters of 2012 and 2011, respectively.  The decrease was primarily due to higher levels of markdown assistance in all of the footwear and accessories product lines and higher product costs, which were partially offset by price increases, and an increase due to the mix of products sold.

Domestic retail gross profit margins were 55.3% and 53.9% for the second fiscal quarters of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold as well as lower levels of promotional activity and lower freight costs.

International wholesale gross profit margins were 31.4% and 29.4% for the second fiscal quarters of 2012 and 2011, respectively.  The increase was primarily due the mix of products sold resulting from the acquisition of Kurt Geiger and the mix of product sold to our international distributors of Nine West products in the current period.

International retail gross profit margins were 55.8% and 54.5% for the second fiscal quarters of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold as a result of the acquisition of Kurt Geiger, partially offset by higher product costs for our Canadian retail business.

Selling, General and Administrative Expenses.  SG&A expenses were $304.5 million and $278.2 million in the second fiscal quarters of 2012 and 2011, respectively.  The acquisition of Kurt Geiger added a net $21.3 million in SG&A expenses to the second fiscal quarter of 2012.

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Domestic wholesale sportswear SG&A expenses increased $3.3 million, primarily due to a $1.0 million reduction in the acquisition consideration payable related to the acquisition of Moda Nicola International, LLC ("Moda") compared with a $6.3 million reduction in the prior period, a $0.6 million gain on the British Pound in the prior period, a $0.3 million increase in severance expense and a $0.3 million increase in depreciation and amortization expense.  These increases were partially offset by a $1.6 million decrease in compensation expense resulting from reduced headcount, a $0.9 million planned reduction in advertising and marketing expenses and a decrease of $0.7 million in samples expense.

Domestic wholesale jeanswear SG&A expenses decreased $1.6 million, primarily due to a $2.5 million decrease in distribution expense resulting from a decrease in the number of units sold and a $0.6 million reduction in compensation expense resulting from reduced headcount.  These decreases were partially offset by a $0.9 million increase in lease termination costs relating to one of our unused warehouses, resulting from a subtenant's early termination of the lease, a $0.4 million increase in advertising expenses and a $0.2 million increase in our royalties payable under the Jessica Simpson license.

Domestic wholesale footwear and accessories SG&A expenses decreased $0.9 million, primarily due to a $3.7 million decrease in losses recorded related to future costs of leases on buildings we do not currently use, a $0.7 million decrease in compensation expenses, a $0.5 million decrease in depreciation expense resulting from assets becoming fully depreciated, and $0.1 million of other net decreases.  These decreases were partially offset by a $1.6 million increase in advertising expenses, a $1.6 million increase in severance expense, $0.5 million in showroom and rent expenses for new space added for Stuart Weitzman productsand $0.4 million attributable to the timing of samples expenses.

Domestic retail SG&A expenses increased $1.4 million, primarily due to a $3.4 million increase in administrative expenses and costs for services provided by other supporting business units, a $1.9 million write-off of settled merchandise credits in the prior period, $1.2 million of operating and rent expenses for new Stuart Weitzman locations, a $1.1 million increase in severance expense and $0.4 million of other net increases.  These increases were partially offset by a $3.1 million reduction in occupancy and depreciation expenses, a $1.4 million reduction in salaries and benefits and a $0.6 million reduction in credit and debit card fees (primarily resulting from a reduction in interchange fees charged by our banks), a $0.8 million reduction in advertising expenses and a $0.7 million decrease in store-related impairment losses compared with the prior period.

International wholesale SG&A expenses increased $1.0 million, primarily due to a $1.0 million increase in foreign currency expense resulting from the unfavorable exchange rates between the Euro and U.S. Dollar, a $0.8 million increase in advertising expenses for our Stuart Weitzman brand, $0.6 million in higher compensation costs and $0.5 million of expenses resulting from the acquisition of Kurt Geiger.  These increases were partially offset by a $1.1 million decrease in costs for services provided by other supporting business units, a net $0.6 million decrease in our Nine West international business (primarily due to $0.2 million in severance expense in the prior period and lower administrative expenses of $0.3 million and lower advertising expenses of $0.1 million in the current period) and $0.2 million of other net decreases.

International retail SG&A expenses increased $25.0 million, primarily due to a $24.8 million increase resulting from the acquisition of Kurt Geiger, a $0.7 million increase in costs for services provided by other supporting business units and $0.3 million in other net increases.  These increases are partially offset by a $0.8 million decrease in costs from our Spanish retail business due to lower concession fees and warehousing costs.

SG&A expenses for the licensing, other and eliminations segment decreased $1.9 million, primarily due to $4.7 million in acquisition-related expenses for Kurt Geiger recorded in the prior period.  This decrease was partially offset by a $1.8 million increase in compensation expense, primarily related to higher amortization of stock-based compensation, a $0.6 million net effect of unfavorable exchange rate differences between the U.S. Dollar and the British Pound and Canadian Dollar, a $0.3 million reduction in advertising contribution payments from our licensees and $0.1 million in other net increases.

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Operating Income.  The resulting operating income for the second fiscal quarter of 2012 was $21.7 million, compared with $44.9 million for the second fiscal quarter of 2011, due to the factors described above.

Net Interest Expense. Net interest expense decreased $28.2 million, resulting from a $27.2 million change in interest relating to the Stuart Weitzman Holdings, LLC ("SWH") acquisition consideration liability (primarily resulting from changes in the estimated payments to be made under the acquisition agreement) and a $2.0 million decrease in expenses related to our secured revolving credit agreement, partially offset by a net $0.7 million increase in interest expense from the effects of our interest rate swaps and cap and $0.3 million of other net increases.

Income Taxes.  The effective income tax rate was 37.0% and 37.5% for the second fiscal quarters of 2012 and 2011, respectively.  The decrease is primarily due to the impact of a foreign tax benefit on lower pre-tax income in the second fiscal quarter of 2012 compared with the second fiscal quarter of 2011.

Net Income and Earnings Per Share.  Net income was $8.4 million in the second fiscal quarter of 2012, compared with net income of $5.4 million in the second fiscal quarter of 2011.  Diluted earnings per share for the second fiscal quarter of 2012 was $0.10, compared with diluted earnings per share of $0.06 for the second fiscal quarter of 2011, with 8.7% fewer diluted shares outstanding.

Fiscal Six Months Ended June 30, 2012 Compared with Fiscal Six Months Ended July 2, 2011

Revenues.  Total revenues for the first fiscal six months of 2012 were $1.79 billion, compared with $1.85 billion for the first fiscal six months of 2011, a decrease of 3.1%.  Revenues by segment were as follows:

(In millions)	First Fiscal Six Months of 2012		First Fiscal Six Months of 2011		Increase (Decrease		)	Percent Change
Domestic wholesale sportswear	$	408.4	$	471.7	$	(63.3	)		(13.4	%)
Domestic wholesale jeanswear		335.8		424.6		(88.8	)		(20.9	)
Domestic wholesale footwear and accessories		421.3		409.0		12.3			3.0
Domestic retail		278.7		301.7		(23.0	)		(7.6	)
International wholesale		148.8		155.7		(6.9	)		(4.4	)
International retail		175.2		63.6		111.6			175.5
Licensing and other		22.5		22.4		0.1			0.4
Total revenues	$	1,790.7	$	1,848.7	$	(58.0	)		(3.1	%)

Domestic wholesale sportswear revenues decreased $63.3 million, primarily due to decreased revenues in our Jones New York- and Anne Klein-related sportswear product lines (resulting from reduced shipments to lower-performing retail doors), our Joneswear product lines (resulting from a change in retail strategy at Penney's) and our Le Suit and Kasper suit product lines (resulting from poor product performance at the retail level).  These decreases were partially offset by increased revenues in our Kasper suit separates and sportswear lines and our Rachel Roy product line (resulting from positive product performance at the retail level) and initial shipments of our AK Anne Klein dress line.

Domestic wholesale jeanswear revenues decreased $88.8 million, primarily due to reduced shipments of our l.e.i. product line (resulting from a change in retail strategy at Walmart which resulted in lower shipments of jeanswear replenishment product), our Gloria Vanderbilt and Erika product lines (resulting from the change in Penney's retail strategy), our Bandolino product line (resulting from a change in retail strategy of a major customer), our Grane product line (resulting from poor product performance at the retail level) and our Energie product line (resulting from the challenging retail climate in the moderate junior tops business as well as product assortment issues).  These decreases were partially offset by increased shipments of our Jessica Simpson product lines (resulting from positive product performance at the retail level and new product extensions).

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Domestic wholesale footwear and accessories revenues increased $12.3 million, primarily due to increased shipments of our handbag and jewelry product lines (resulting from positive performance at the retail level for our AK Anne Klein handbags and jewelry, Napier jewelry and Nine West handbags and jewelry), the initial launch of our B Brian Atwood footwear product line and increased shipments of our Easy Spirit, Enzo Angiolini, Circa Joan & David, AK Anne Klein, Rachel Roy and Sam & Libby footwear product lines (resulting from positive performance at the retail level).  These increases were partially offset by reduced shipments of our Mootsies Tootsies product line (resulting from the decision of a wholesale customer to exit the brand), our Nine West footwear product lines (resulting from a decision to reduce the brand's penetration in off-price retail locations) and our Boutique 9 footwear product lines (resulting from poor performance at the retail level) and by the conversion of our children's footwear product lines to a licensed business.

Domestic retail revenues decreased $23.0 million.  Revenue decreases were primarily the result of a 2.0% decrease in comparable store sales ($5.4 million), resulting from reduced e-commerce sales and poor product performance in our ready-to-wear stores, and a net $17.6 million reduction in revenues primarily related to our program to close underperforming locations.  We began the current period with 672 retail locations and had a net decrease of 65 locations to end the period with 607 locations, compared with 703 locations at the end of the prior period.  Our comparable footwear store sales increased 1.7% ($2.8 million), our comparable e-commerce business sales decreased 12.2% ($4.3 million) and our comparable apparel store sales decreased 6.0% ($3.9 million).

International wholesale revenues decreased $6.9 million, primarily due to a $5.5 million decrease in our Nine West international business (attributable to the timing of product shipments due to factory delays and production schedules and the effect of the sales to Kurt Geiger in the prior period, as these revenues are now recorded as intercompany sales), a $3.7 million decrease in our Canadian business (resulting from reduced sales of our Anne Klein and Jones New York products), a $0.6 million effect of unfavorable exchange rate differences between the Canadian Dollar and the U.S. Dollar, a $3.6 million decrease in our Stuart Weitzman European business (primarily in Italy, Western Europe and the United Kingdom, partially offset by an increase in shipments to franchisee stores), and a $1.7 million reduction in our Jones New York shipments to Mexico (resulting from poor performance at the retail level). These decreases were partially offset by $7.6 million of sales resulting from the acquisition of Kurt Geiger and increased sales to our licensed distributor in the Middle East.

International retail revenues increased $111.6 million, primarily due to $107.4 million of sales resulting from the acquisition of Kurt Geiger, a $3.2 million increase in sales of our Jones New York products in our Spanish retail locations (which began operations in March 2011) and a $1.0 million increase in sales in our Canadian and Stuart Weitzman European retail locations (resulting from higher average realized selling prices).  We began the current period with 315 stores and had a net increase of seven locations to end the period with 322 stores, compared with 294 locations at the end of the prior period.

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

Gross Profit.  The gross profit margins were 37.4% and 35.4% for the first fiscal six months of 2012 and 2011, respectively.

Domestic wholesale sportswear gross profit margins were 34.8% and 34.5% for the first fiscal six months of 2012 and 2011, respectively.  The increase was largely due to slightly higher realized selling prices, as well as lower levels of sales (with improved margins) to off-price retailers.

Domestic wholesale jeanswear gross profit margins were 25.3% and 24.6% for the first fiscal six months of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold.

Domestic wholesale footwear and accessories gross profit margins were 30.4% and 30.8% for the first fiscal six months of 2012 and 2011, respectively.  The decrease was primarily due to higher sales to off-

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price retailers and the timing of markdown assistance in all of the footwear and accessories product lines, partially offset by an increase due to the mix of products sold.

Domestic retail gross profit margins were 53.0% and 51.4% for the first fiscal six months of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold as well as lower levels of promotional activity and lower freight costs.

International wholesale gross profit margins were 32.5% and 31.0% for the first fiscal six months of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold resulting from the acquisition of Kurt Geiger and changes in pricing strategies and higher average selling prices in our Canadian business.

International retail gross profit margins were 54.7% and 53.6% for the first fiscal six months of 2012 and 2011, respectively.  The increase was primarily due to the mix of products sold as a result of the acquisition of Kurt Geiger and lower levels of promotional activity in our Canadian retail stores.

Selling, General and Administrative Expenses.  SG&A expenses were $607.7 million and $547.7 million in the first fiscal six months of 2012 and 2011, respectively.  The acquisition of Kurt Geiger added a net $57.2 million in SG&A expenses to the first fiscal six months of 2012.

Domestic wholesale sportswear SG&A expenses increased $0.3 million, primarily due to a $5.5 million increase in severance expense, a $4.1 million decrease in the acquisition consideration payable related to the acquisition of Moda compared with a $6.5 million decrease in the prior period, a $1.9 million increase in reimbursements for services provided to other supporting business units, a $0.6 million gain on the British Pound in the prior period and $0.1 million of other net increases.  These increases were partially offset by a $5.3 million planned reduction in advertising and marketing expenses, a $3.2 million decrease in compensation expense resulting from reduced headcount and a decrease of $1.7 million in samples expense.

Domestic wholesale jeanswear SG&A expenses decreased $3.1 million, primarily due to a $5.3 million decrease in distribution expense resulting from a decrease in the number of units sold, a $1.7 million reduction in compensation expense resulting from reduced headcount and a $0.5 million reduction in severance expense.  These decreases were partially offset by a $1.1 million increase in advertising expense, a $1.0 million increase in samples expense, a $0.9 million increase in lease termination costs relating to one of our unused warehouses, resulting from a subtenant's early termination of the lease, a $0.5 million favorable use tax settlement in the prior period, a $0.5 million increase in administrative expenses and $0.4 million of other net increases.

Domestic wholesale footwear and accessories SG&A expenses increased $0.7 million, primarily due to a $3.8 million increase in advertising expenses, a $1.9 million increase in severance expense, a $1.2 million increase in administrative costs and $0.9 million in showroom and rent expenses for new space added for Stuart Weitzman products.  These increases were partially offset by a $3.7 million decrease in losses recorded related to future costs of leases on buildings we do not currently use, a $1.3 million decrease in compensation expenses resulting from reduced headcount, a $0.9 million decrease in depreciation expense resulting from the assets becoming fully depreciated, a $0.4 million reduction in professional fees, a $0.3 million reduction in distribution costs and $0.5 million of other net decreases.

Domestic retail SG&A expenses decreased $0.1 million, primarily due to a $5.0 million reduction in occupancy and depreciation expenses, a $3.0 million reduction in salaries and benefits and a $1.1 million reduction in credit and debit card fees (primarily resulting from a reduction in interchange fees charged by our banks), a $0.8 million reduction in advertising expenses and a $2.1 million decrease in store-related impairment losses compared with the prior period.  These decreases were partially offset by a $4.7 million increase in costs for services provided by other supporting business units, a $3.2 million increase in operating and rent expenses for new Stuart Weitzman locations, a $1.9 million write-off of settled merchandise credits in the prior period, a $1.7 million increase in severance expense and $0.4 million of other net increases.

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International wholesale SG&A expenses decreased $0.7 million, primarily due to a $3.5 million decrease in costs for services provided by other supporting business units and $1.8 million in lower severance expense.  These decreases were partially offset by $1.8 million of expenses resulting from the acquisition of Kurt Geiger, a $1.5 million increase in foreign currency expense due to the unfavorable exchange rates between the Euro and U.S. Dollar, a $1.0 million increase in advertising expenses for our Stuart Weitzman brand and $0.3 million of other net increases.

International retail SG&A expenses increased $65.0 million, primarily due to a $61.7 million increase resulting from the acquisition of Kurt Geiger, $1.4 million related to our Spanish retail business (which began operations in March 2011), a net $1.6 million increase in expenses in our Canadian business (resulting from higher costs for services provided by other supporting business units and higher salary expenses), and $0.3 million of other net increases.

SG&A expenses for the licensing, other and eliminations segment decreased $2.1 million, primarily due to $4.7 million in acquisition-related expenses for Kurt Geiger in the prior period and a $2.8 million effect of favorable exchange rate differences between the U.S. Dollar and the British Pound and Canadian Dollar.  These decreases were partially offset by a $4.0 million increase in compensation expense, primarily related to higher amortization of stock-based compensation, and a $1.4 million reduction in advertising contribution payments from our licensees in the current period.

Operating Income.  The resulting operating income for the first fiscal six months of 2012 was $61.9 million, compared with $106.1 million for the first fiscal six months of 2011, due to the factors described above.

Net Interest Expense. Net interest expense decreased $6.7 million, resulting from an $8.3 million change in interest relating to the SWH acquisition consideration liability (primarily resulting from changes in the estimated payments to be made under the acquisition agreement), a $2.5 million decrease in expenses related to our secured revolving credit agreement and a net $0.1 million decrease in interest expense from the effects of our interest rate swaps and cap, partially offset by a $3.6 million increase resulting from the issuance of our 2019 Notes on March 7, 2011 and $0.6 million of other net increases.

Income Taxes.  The effective income tax rate was 37.0% and 37.5% for the first fiscal six months of 2012 and 2011, respectively.  The decrease is primarily due to the impact of a foreign tax benefit on lower pre-tax income in the first fiscal six months of 2012 compared with the first fiscal six months of 2011.

Net Income and Earnings Per Share.  Net income was $7.4 million in the first fiscal six months of 2012, compared with net income of $31.2 million in the first fiscal six months of 2011.  Diluted earnings per share for the first fiscal six months of 2012 was $0.09, compared with diluted earnings per share of $0.36 for the first fiscal six months of 2011, with 7.0% fewer 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 June 30, 2012, total cash and cash equivalents were $238.8 million, an increase of $38.3 million from the $277.1 million reported as of December 31, 2011.

Cash flows from operating activities provided $124.0 million and $65.6 million in the first fiscal six months of 2012 and 2011, respectively.  The change from the prior period was primarily due to changes in working capital and net income.  Accounts receivable decreased in the current period compared with an increase in the prior period primarily due to lower levels of wholesale shipments in the current period.  Inventories decreased in the current period compared with an increase in the prior period, primarily due

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to lower levels of projected wholesale sales.  We also paid $24.4 million of accrued Kurt Geiger interest subsequent to the acquisition in the prior period.

Cash flows from investing activities used $41.8 million and $192.6 million in the first fiscal six months of 2012 and 2011, respectively, primarily for the purchases of property and equipment in both periods and the acquisition of Kurt Geiger in 2011.

Cash flows from financing activities used $43.7 million in the first fiscal six months of 2012, primarily for repurchases of our common stock, the payment of dividends and payments related to acquisition consideration liabilities.

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 our 2019 Notes.  Uses of cash during this period were primarily for 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 liabilities.

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.

We repurchased approximately 3.0 million shares of our common stock for $29.0 million on the open market during the first fiscal six months 2012 and 2.2 million shares of our common stock for $28.0 million on the open market during the first fiscal six months 2011.  As of June 30, 2012, $186.5 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.  The terms and conditions of our Credit Facility provide for, among other things: (1) a $350 million U.S. commitment which may be drawn by the U.S. borrowers as revolving loans in U.S. Dollars or letters of credit in Canadian Dollars, U.S. Dollars, or an "LC Alternative Currency" (namely Euros, sterling, or any other currency acceptable to the lenders); and (2) 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 Canadian Dollars, U.S. Dollars, or an LC Alternative Currency.  Up to the entire amount of the Credit Facility is available for cash borrowings, with an overall sublimit of up to $350 million for all letters of credit.  All of the overall $350 million sublimit may be used for trade letters of credit; and within that overall sublimit, there are additional sublimits, including (but not limited to) $50 million for standby letters of credit and $150 million for letters of credit under the U.S. commitment denominated in an LC Alternative Currency.

        Borrowings under the Credit Facility may be used to refinance certain 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 June 30, 2012, we had no cash borrowings and $16.3 million of letters of credit outstanding, and our remaining availability was $381.6 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

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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, 2012 and is renewable on an annual basis, under which no cash borrowings and $1.1 million in letters of credit were outstanding at June 30, 2012.  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 2013 and is renewable on an annual basis, under which no amounts were outstanding at June 30, 2012.

On July 25, 2012, 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 10, 2012 for payment on August 24, 2012.

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, which could affect our net sales and our future profitability.  Our recent acquisitions have increased our presence within the European Union, where the current highly uncertain economic and political conditions may lead to reduced consumer spending in those countries as well.

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 compensate for a loss of revenues or 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, Spain and Italy.  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 continue 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, Spain and Italy 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.

New Accounting Standards

There have been no new accounting standards issued by the FASB during 2012 through the date of this filing that would have an effect on our results of operation or financial position.

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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.

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 June 30, 2012, the fair value of our fixed rate debt was $732.5 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 $67.4 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 June 30, 2012, we had $651.8 million in variable rate credit facilities, under which no cash borrowings and $17.4 million of letters of credit were outstanding.

At June 30, 2012, we had an outstanding an interest rate cap that was used in conjunction with the interest rate swaps on the 2014 Notes to limit our floating rate exposure.  The cap limits our three-month LIBOR rate exposure to 5.0%.  The cap has a termination date of November 15, 2014.  At June 30, 2012, the cap had no fair value.

Foreign Currency Exchange Rates

We are exposed to market risk related to changes in foreign currency exchange rates.  Our products are primarily purchased from foreign manufacturers in pre-set United States Dollar prices, although we also purchase certain products in Euros and Pounds.  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 June 30, 2012, we had outstanding foreign exchange contracts to exchange Canadian Dollars for a total notional value of US$10.2 million at a weighted-average exchange rate of 1.00 maturing through November 2012 and to exchange £3 million for U.S. Dollars at an exchange rate of 1.61 maturing in December 2012.  The fair value of these contracts at June 30, 2012 was a $0.2 million unrealized gain.  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 counterparty, which presently has a high credit rating, to fail to meet its 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 2012, 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.  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 June 30, 2012.

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 2, 2012 to April 28, 2012		165,575	$	11.42		165,575	$	204,564,236
April 29, 2012 to May 26, 2012		1,779,405	$	9.95		1,779,405	$	186,856,704
May 26, 2012 to June 30, 2012		42,627	$	9.38		42,627	$	186,456,711
Total		1,987,607	$	10.06		1,987,607	$	186,456,711

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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;

· the 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 information 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.

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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 27, 2012

By          /s/ Wesley R. Card

WESLEY R. CARD

Chief Executive Officer

By         /s/ John T. McClain

JOHN T. McCLAIN

Chief Financial Officer

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EXHIBIT INDEX

10.1*	The Jones Group Inc. Severance Plan, as amended, and Summary Plan Description.
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.
32♦	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.

♦ Furnished herewith.

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EX-10

EXHIBIT 10.1

THE JONES GROUP INC.
SEVERANCE PLAN AND
SUMMARY PLAN DESCRIPTION

Effective May 31, 2006
(amended April 19, 2012)

PURPOSE OF THE PLAN

The purpose of The Jones Group Inc. Severance Plan ("Plan") is to provide severance benefits to eligible employees whose employment with The Jones Group Inc. (the "Company") and all U.S. domestic Subsidiaries and Affiliates of the Company is terminated involuntarily under the conditions described below.

Except as otherwise provided herein or by the Company in writing after the effective date hereof, this Plan (i) is the sole arrangement of the Company regarding Severance-type benefits to eligible employees and (ii) replaces and supersedes all prior plans, programs, understandings and arrangements providing Severance-type benefits to eligible employees.

Notwithstanding anything to the contrary in this Plan, if an employee is eligible for Severance-type benefits under an employment or other written agreement with the Employer providing for Severance-type benefits ("Alternative Benefits"), such employee shall remain and be eligible for those benefits; provided , that if the amount of Severance-type benefits to which an employee may be entitled under such agreement providing for Alternative Benefits would be greater in the aggregate than the benefits which the Employee would otherwise be eligible to receive under this Plan, then the employee shall not receive benefits under this Plan but instead shall be entitled to receive such Alternative Benefits.

This document contains the official text of the Plan.

DEFINITIONS

Affiliate of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person.

Company means The Jones Group Inc.

Designated Termination Date means the date specified by an Employer as an employee's last day of active work.

Employer means the Company and all U.S. Subsidiaries and Affiliates of the Company (which shall include Stuart Weitzman Holdings, LLC and its U.S. Subsidiaries and Affiliates effective January 1, 2013).

Person means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization or other entity.

Plan Administrator means the Company or such other person or committee appointed from time to time by the Company to administer the Plan.

Severance-type benefits means post-termination compensation under any employment agreement or other written agreement between the Employer and the employee or other plan or arrangement maintained by the Employer, other than compensation that is paid solely as consideration for a covenant not to compete with the Employer.

Subsidiary of any person means another person, an amount of the voting securities, other voting rights or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body or, if there are no such voting interests, more than 50% of the equity interest of which is owned directly or indirectly by such first person.

WARN means the Worker Adjustment and Retraining Notification Act.

ELIGIBLE EMPLOYEES

The benefits under this Plan are limited to corporate employees, as well as retail employees employed by JAG Footwear, Accessories and Retail Corporation at the level of District Sales Manager or above, in all instances who are classified by an Employer as regular full-time employees and whose regular place of employment is within the United States. Notwithstanding anything to the contrary, union employees are not eligible under this Plan.

INVOLUNTARY TERMINATION OF EMPLOYMENT

• Involuntary Termination

An employee will be eligible for severance benefits under this Plan only if the Plan Administrator, in its sole discretion, determines that the employee's employment has been terminated involuntarily for any of the following reasons:

• Reduction in staff or layoff.
• Position elimination.
• Closure of a business unit.
• Organization restructuring.
• Such other circumstances as the Plan Administrator deems appropriate for the payment of severance benefits.

An employee who terminates employment for any reason prior to his or her Designated Termination Date will not be considered to have terminated employment involuntarily unless (i) his or her Employer provides otherwise in writing, or (ii) he or she has been notified that his or her employment is being terminated due to a reduction in staff or layoff requiring notice under federal or state WARN. Such an employee is, however, required to provide two (2) weeks' prior notice if electing to terminate employment on a date prior to his or her Designated Termination Date.

• Termination of Employment Not Eligible for Severance Benefits

Unless the Company provides otherwise in writing, an employee will not be eligible for severance benefits if the Plan Administrator, in its sole discretion, determines that the employee's employment is terminated for any of the following reason

2

• Resignation or other voluntary termination of employment.
• Failure to return to work upon the expiration of an authorized leave of absence.
• Death or disability.
• Termination for cause or for behavior prejudicial to the Employer, as determined by the Plan Administrator in its sole discretion.
• Termination for gross misconduct or violation of company policy.
• Termination for poor performance.

An employee who terminates employment for any reason prior to his or her Designated Termination Date will not be considered to have terminated employment involuntarily unless (i) his or her Employer provides otherwise in writing, or (ii) he or she has been notified that his or her employment is being terminated due to a reduction in staff or layoff requiring notice under federal or state WARN. Such an employee is, however, required to provide two (2) weeks' prior notice if electing to terminate employment on a date prior to his or her Designated Termination Date.

• Other Employment Offer

Unless the Company provides otherwise in writing, or except as expressly provided in this Plan, an employee will not be eligible to receive benefits under this Plan if the Plan Administrator, in its sole discretion, determines that any of the following events has occurred prior to the employee's Designated Termination Date:

• The employee has been offered, but has refused to accept, a suitable position with the Company or any of its Subsidiaries or Affiliates; OR
• The employee's employment is being terminated in connection with a sale or transfer, merger, establishment of a joint venture, or other corporate transaction, and the employee has been offered a suitable position by the successor employer; OR
• The employee's employment is being terminated in connection with the "outsourcing" of operational functions and he or she has been offered a suitable position by the outsourcing vendor.

CONDITIONS FOR PAYMENT OF SEVERANCE BENEFITS

An employee who is involuntarily terminated will not receive severance benefits under this Plan unless the Plan Administrator, in its sole discretion, determines that the employee has satisfied all of the following conditions:

• Work Until Last Day Designated

The employee must continue to be actively at work through his or her Designated Termination Date or such earlier date as may be specified by his or her Employer in writing, unless the employee is absent due to vacation, temporary layoff, or an approved absence from work (including leave under the Family and Medical Leave Act).

This section does not apply to employees whose employment is being terminated due to a reduction in force or layoff requiring notice under federal or state WARN. Such employees are required, however, to provide two (2) weeks' prior notice.

3

• Execution of Release and Other Separation Documents

The employee must execute and deliver to the Company, within the period of time specified by the Company, an agreement in a form satisfactory to the Company containing a general release of claims in favor of the Company and such other terms and provisions as may be determined by the Company in its sole discretion.

• Return of Company Property and Settlement of Expenses

The employee must return all company property and satisfactorily settle all expenses owed to the Company and any of its Subsidiaries or Affiliates.

SEVERANCE BENEFITS

The severance benefits to be provided to an eligible employee will be determined in accordance with the Severance Benefit Guidelines attached to this Plan subject to the reductions set forth below; provided, that the Company has the right, in its sole discretion, and on a case-by case basis, to determine the amount of severance benefits to be provided to an eligible employee.

• Reduction for Other Severance Benefits

In the event that an employee

• is entitled to receive Severance-type benefits under another plan or arrangement maintained by the Employer, or
   

• is covered by an employment agreement or other written agreement with the Employer providing for Severance-type benefits,

then the severance benefits payable to the employee under this Plan will be reduced by the amount of Severance-type benefits payable to the employee under such other plan, arrangement or agreement, unless the Company provides otherwise in writing. For the avoidance of doubt, if the Severance-type benefits payable under such other plan, arrangement or agreement are greater in the aggregate than the severance benefits payable to the employee under this Plan, then the employee shall not receive benefits under this Plan, and shall instead receive the Severance-type benefits under such other plan, arrangement or agreement.

REEMPLOYMENT

The following rules apply if an employee is reemployed by the Company or any of its Subsidiaries, Affiliates or successors.

• Right to Terminate Benefits

Notwithstanding anything in this Plan to the contrary, in the event that an employee is reemployed before the completion of the scheduled payment of severance benefits, then an Employer shall have the right to terminate the benefits payable under this Plan at any time.

4

• Repayment of Severance Pay

In the event that an employee is offered reemployment within thirty (30) days after payment of his or her severance pay has commenced and subsequently accepts reemployment, then the employee shall repay to the Company the full amount of severance pay that he or she has received under this Plan.

RIGHT TO TERMINATE BENEFITS

Notwithstanding anything in this Plan to the contrary, in the event that the Plan Administrator determines that an employee has breached any of the terms and conditions set forth in any agreement executed by the employee as a condition to receiving benefits under this Plan, including, but not limited to, the general release of claims, then the Company shall have the right to terminate the benefits payable under this Plan at any time.

GENERAL RULES

• Right to Withhold Taxes

The Company shall withhold such amounts from payments under this Plan as it determines necessary to fulfill any federal, state, or local wage or compensation withholding requirements.

• No Right to Continued Employment

Neither the Plan nor any action taken with respect to it shall confer upon any person the right to continue in the employ of the Company or any of its Subsidiaries or Affiliates.

• Benefits Non-Assignable

Benefits under the Plan may not be anticipated, assigned or alienated.

• Unfunded Plan

The Company will make all payments under the Plan, and pay all expenses of the Plan, from its general assets. Nothing contained in this Plan shall give any eligible employee any right, title or interest in any property of the Company or any of its Affiliates nor shall it create any trust relationship.

• Governing Laws and Time Limit for Beginning Legal Actions

The provisions of the Plan shall be construed, administered and enforced according to applicable federal law and, where appropriate, the laws of the State of New York without reference to its conflict of laws rules and without regard to any rule of any jurisdiction that would result in the application of the law of another jurisdiction.

No action relating to this Plan or any release or other agreement entered into with respect to this Plan may be brought later than the earlier of second anniversary of the termination of employment or other event giving rise to the claim.

• Severability

The provisions of the Plan are severable. If any provision of the Plan is deemed legally or factually invalid or unenforceable to any extent or in any application, then the remainder of

5

the provisions of the Plan, except to such extent or in such application, shall not be affected, and each and every provision of the Plan shall be valid and enforceable to the fullest extent and in the broadest application permitted by law.

• Section Headings

Section headings are used herein for convenience of reference only and shall not affect the meaning of any provision of this Plan.

ADMINISTRATION OF THE PLAN

The Plan Administrator shall have sole authority and discretion to administer and construe the terms of this Plan, subject to applicable requirements of law. Without limiting the generality of the foregoing, the Plan Administrator shall have complete discretionary authority to carry out the following powers and duties:

• To make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan;
   
• To interpret the Plan, its interpretation thereof to be final and conclusive on all persons claiming benefits under the Plan;
   
• To decide all questions, including without limitation, issues of fact, concerning the Plan, including the eligibility of any person to participate in, and receive benefits under, the Plan; and
   
• To appoint such agents, counsel, accountants, consultants and other persons as may be required to assist in administering the Plan.

CLAIMS PROCEDURE

The Plan Administrator reviews and authorizes payment of severance benefits for those employees who qualify under the provisions of the Plan. No claim forms need be submitted. Questions regarding payment of the severance benefits should be directed to Vice President, Benefits or the Plan Administrator.

If an employee feels he or she is not receiving severance benefits which are due, the employee should file a written claim for the benefits with a Vice President in the Human Resources Department. A decision on whether to grant or deny the claim will be made within 90 days following receipt of the claim. If more than 90 days is required to render a decision, the employee will be notified in writing of the reasons for delay. In any event, however, a decision to grant or deny a claim will be made by not later than 180 days following the initial receipt of the claim.

If the claim is denied in whole or in part, the employee will receive a written explanation of the specific reasons for the denial, including a reference to the Plan provisions on which the denial is based.

If the employee wishes to appeal this denial, the employee may write within 60 days after receipt of the notification of denial. The claim will then be reviewed by the Plan Administrator and the employee will receive written notice of the final decision within 60 days after the request .

6

for review. If more than 60 days is required to render a decision, the employee will be notified in writing of the reasons for delay before the end of the initial 60 day period. In any event, however, the employee will receive a written notice of the final decision within 120 days after the request for review.

AMENDMENT AND TERMINATION

The Company may amend, modify or terminate this Plan with respect to any employee or group of employees at any time pursuant to a writing executed by any duly authorized officer of the Company. Such amendment, modification or termination will be effective with respect to employees who have not received notice of a Designated Termination Date on the date such amendment is executed.

STATEMENT OF ERISA RIGHTS

As a participant in this Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to:

• Receive Information About Your Plan and Benefits

Examine, without charge, at the plan administrator's office and at other specified locations all documents governing the plan and a copy of the latest annual report (Form 5500 Series) required to be filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

Obtain, upon written request to the plan administrator, copies of documents governing the operation of the plan and copies of the latest annual report (Form 5500 Series), if any required, and updated summary plan description. The administrator may make a reasonable charge for the copies.

Receive a summary of the plan's annual financial report. The plan administrator is required by law to furnish each participant with a copy of this summary annual report.

• Prudent Actions by Plan Fiduciaries

In addition to creating rights for plan participants ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your plan, called "fiduciaries" of the plan, have a duty to do so prudently and in the interest of you and other plan participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

• Enforce Your Rights

If your claim for a severance benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within thirty (30) days, you may file suit in a Federal court. In such a case, the

7

court may require the plan administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. If it should happen that plan fiduciaries misuse the plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

• Assistance with Your Questions

If you have any questions about your plan, you should contact the plan administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the plan administrator, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

ADDITIONAL INFORMATION

Plan Sponsor:	The Jones Group Inc. 180 Rittenhouse Circle Keystone Park Bristol, Pennsylvania 19007 (215) 785-4000
Employer Identification Number (EIN):	06-0935166
Plan Name:	The Jones Group Inc. Severance Plan
Type of Plan:	Welfare benefit plan - severance pay
Plan Year:	Calendar year
Plan Number:	550
Plan Administrator:	Executive Vice President of Human Resources The Jones Group Inc. 180 Rittenhouse Circle Keystone Park Bristol, Pennsylvania 19007

Agent for Service of Legal Process: Plan Administrator

8

THE JONES GROUP INC. SEVERANCE PLAN
SEVERANCE BENEFIT GUIDELINES

Effective as of April 19, 2012

EMPLOYEES BELOW VICE PRESIDENT

An employee may elect to receive either the severance benefits described in OPTION ONE or OPTION TWO below. The election must be made within the time period, and in accordance with the procedures, specified by the Plan Administrator.

• OPTION ONE - Severance Pay and Payment of Cost for COBRA Coverage

• Severance Pay

Years of Service	Amount of Severance Pay
Less than 20 years	2 weeks of Base Pay for each Year of Service Minimum of 2 weeks of Base Pay Maximum of 26 weeks of Base Pay
20 or more years	52 weeks of Base Pay

The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.

• Continued Group Health Benefit Coverage - Payment of Cost for COBRA Coverage

If the employee elects to continue coverage under the Company's group health benefits plan in accordance with the COBRA continuation coverage requirements, the employee will be required to pay only a portion of the full cost for COBRA coverage during the period equal to the number of weeks used in calculating the amount of the employee's severance pay under this Plan.

• The COBRA coverage cost to be paid by the employee during this severance period will be the same as the amount paid by active employees for the same group health benefits coverage.

9

After the end of the severance period, the employee, if eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.

• OPTION TWO - Severance Pay ONLY

2 weeks of Base Pay for each Year of Service

• Minimum of 2 weeks of Base Pay
• NO maximum

The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.

• Definitions

For purposes of determining the amount of severance pay -

• Base Paymeans the employee's regular rate of salary (determined on a weekly basis) payable immediately preceding his or her date of termination. Base Pay does not include discretionary bonuses, other variable compensation, or extra pay.
   
• Years of Service means an employee's full and partial years of employment beginning as of the later of (a) his or her most recent date of hire by an Employer or (b) his or her first day of work following a break in service of thirty (30) days or more, until his or her last day of active employment. A partial year of employment will be rounded up to the next highest year.

10

THE JONES GROUP INC. SEVERANCE PLAN
SEVERANCE BENEFIT GUIDELINES

Effective as of May 31, 2006

VICE PRESIDENTS AND ABOVE BUT BELOW
THE LEVEL OF EXECUTIVE VICE PRESIDENT

• Severance Pay

• Amount of Severance Pay

Years of Service	Amount of Severance Pay
Less than 5 years	3 months of Base Pay
5 to 9 years	6 months of Base Pay
10 or more years	12 months of Base Pay

For purposes of determining the amount of severance pay -

• Base Pay means the employee's regular rate of salary (determined on a monthly basis) payable immediately preceding his or her date of termination. Base Pay does not include discretionary bonuses, other variable compensation, or extra pay.
   

• Years of Service means an employee's full and partial years of employment beginning as of the later of (a) his or her most recent date of hire by an Employer or (b) his or her first day of work following a break in service of thirty (30) days or more, until his or her last day of active employment. A partial year of employment will be rounded up to the next highest year.

• Payment of Severance Pay

The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.

• Continued Group Health Benefit Coverage - Payment of Cost for COBRA Coverage

If the employee elects to continue coverage under the Company's group health benefits plan in accordance with the COBRA continuation coverage requirements, the employee will be required to pay only a portion of the full cost for COBRA coverage during the period equal to the number of weeks used in calculating the amount of the employee's severance pay under this Plan.

11

• The COBRA coverage cost to be paid by the employee during this severance period will be the same as the amount paid by active employees for the same group health benefits coverage.

After the end of the severance period, the employee, if eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.
 

12

THE JONES GROUP INC. SEVERANCE PLAN
SEVERANCE BENEFIT GUIDELINES

Effective as of May 31, 2006

EXECUTIVE VICE PRESIDENTS AND ABOVE

• Severance Pay

• Amount of Severance Pay

Years of Service	Amount of Severance Pay
Less than 5 years	3 months of Base Pay
5 to 9 years	6 months of Base Pay
10 to 19 years	12 months of Base Pay
20 or more years	18 months of Base Pay

For purposes of determining the amount of severance pay -

• Base Pay means the employee's regular rate of salary (determined on a monthly basis) payable immediately preceding his or her date of termination. Base Pay does not include discretionary bonuses, other variable compensation, or extra pay.
   
• Years of Service means an employee's full and partial years of employment beginning as of the later of (a) his or her most recent date of hire by an Employer or (b) his or her first day of work following a break in service of thirty (30) days or more, until his or her last day of active employment. A partial year of employment will be rounded up to the next highest year.

• Payment of Severance Pay

The Company shall pay the severance pay in a single lump sum as soon as practicable after the later of the employee's last day of employment or the date on which the employee's separation agreement and general release becomes effective, provided that if the employee satisfies all of the conditions for payment, then in no event will payment be made later than the March 15th of the calendar year following the calendar year in which the employee's last day of employment occurred.

• Continued Group Health Benefit Coverage - Payment of Cost for COBRA Coverage

If the employee elects to continue coverage under the Company's group health benefits plan in accordance with the COBRA continuation coverage requirements, the employee will be required to pay only a portion of the full cost for COBRA coverage during the period equal to the number of weeks used in calculating the amount of the employee's severance pay under this Plan, or, if earlier, until the expiration of COBRA coverage.

13

• The COBRA coverage cost to be paid by the employee during this severance period will be the same as the amount paid by active employees for the same group health benefits coverage.

After the end of the severance period, the employee, if eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.

• Outplacement

As determined by the Company.

14

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 27, 2012
 

/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 27, 2012
 

/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 June 30, 2012 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 June 30, 2012 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.

XML

ACQUISITIONS (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended					3 Months Ended	6 Months Ended
	Jun. 30, 2012 Customer Relationships [Member]	Jun. 30, 2012 Trademarks [Member]	Jun. 30, 2012 Order or Production Backlog [Member]	Jun. 30, 2012 Favorable Lease Agreements [Member]	Jun. 30, 2012 Unfavorable Lease Agreements [Member]	Jul. 02, 2011 Kurt Geiger [Member]	Jul. 02, 2011 Kurt Geiger [Member]	Jun. 02, 2011 Kurt Geiger [Member]
Business Acquisition [Line Items]
Percentage of equity interests acquired								100.00%
Cost of acquired entity, Cash Paid								$ 150.0
Amount of purchase price payable rolled over into Loan Note to senior managers of KG								10.2
Interest rate on Loan Note to senior managers of KG								5.00%
Description of Acquired Entity							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.
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								0.1
Goodwill								99.3
Customer relationships								125.7
Order backlog								2.8
Favorable lease agreements								6.8
Total assets acquired								448.0
Accounts payable								30.6
Other current liabilities								28.5
Long-term debt								174.1
Unfavorable lease agreements								0.2
Deferred taxes								64.6
Total liabilities assumed								298.0
Total purchase price								150.0
Gross contractual accounts receivable acquired								19.8
Business combination, pro forma information [Abstract]
Pro forma total revenues						942.6	1,978.9
Pro forma net income						8.9	28.1
Earnings per share attributable to Jones
Basic, pro forma effect						$ 0.10	$ 0.33
Diluted, pro forma effect						$ 0.10	$ 0.32
Acquisition-related expenses excluded from pro forma earnings						4.7	4.7
Nonrecurring Expense Related To Fair Value Of Acquisition Date Order Backlogs Excluded From Pro Forma Earnings						$ 0.5	$ 0.5
Acquired Finite-Lived Intangible Assets
Amortization life (in months)	232	120	9	99	100

XML

SUBSEQUENT EVENTS (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 02, 2012
Atwood Italia S.r.l. [Member]
Business Acquisition [Line Items]
Percentage of equity interests acquired		100.00%
Brian Atwood-related intellectual property [Member]
Business Acquisition [Line Items]
Percentage of equity interests acquired		80.00%
Brian Atwood [Member]
Business Acquisition [Line Items]
Cost of acquired entity, Cash Paid		$ 5.0
Legal expenses and other transactions related to acquisition	$ 0.6

XML

DERIVATIVES Part I (Details) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended																		12 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2012 USD ($)	Jul. 02, 2011 USD ($)	Jun. 30, 2012 USD ($)	Jul. 02, 2011 USD ($)	Mar. 07, 2011	Jun. 30, 2012 Designated as Hedging Instrument [Member] USD ($)	Dec. 31, 2011 Designated as Hedging Instrument [Member] USD ($)	Jul. 02, 2011 Designated as Hedging Instrument [Member] USD ($)	Jun. 30, 2012 Not Designated as Hedging Instrument [Member] USD ($)	Dec. 31, 2011 Not Designated as Hedging Instrument [Member] USD ($)	Jul. 02, 2011 Not Designated as Hedging Instrument [Member] USD ($)	Dec. 31, 2011 Interest Rate Swap Contracts [Member] Other Long Term Assets [Member] Designated as Hedging Instrument [Member] USD ($)	Jul. 02, 2011 Interest Rate Swap Contracts [Member] Other Long Term Assets [Member] Designated as Hedging Instrument [Member] USD ($)	Jul. 02, 2011 Foreign Exchange Contract [Member] Accrued Expenses and Other Current Liabilities [Member] Designated as Hedging Instrument [Member] USD ($)	Jun. 30, 2012 Foreign Exchange Contract [Member] Prepaid expenses and other current assets [Member] Designated as Hedging Instrument [Member] USD ($)	Dec. 31, 2011 Foreign Exchange Contract [Member] Prepaid expenses and other current assets [Member] Designated as Hedging Instrument [Member] USD ($)	Jun. 30, 2012 Foreign Exchange Contract [Member] Prepaid expenses and other current assets [Member] Not Designated as Hedging Instrument [Member] USD ($)	Jul. 02, 2011 Foreign Exchange Contract [Member] Prepaid expenses and other current assets [Member] Not Designated as Hedging Instrument [Member] USD ($)	Dec. 31, 2011 Interest Rate Cap Contract [Member] Other Long Term Assets [Member] Not Designated as Hedging Instrument [Member] USD ($)	Jul. 02, 2011 Interest Rate Cap Contract [Member] Other Long Term Assets [Member] Not Designated as Hedging Instrument [Member] USD ($)	Dec. 31, 2010 Interest Rate Swaps on 2014 Notes [Member] USD ($)	Dec. 17, 2010 Interest Rate Swaps on 2014 Notes [Member] USD ($)	Jun. 30, 2012 Interest Rate Swaps on 2019 Notes [Member] USD ($)	Dec. 31, 2011 Interest Rate Swaps on 2019 Notes [Member] USD ($)	Mar. 21, 2012 Interest Rate Swaps on 2019 Notes [Member] USD ($)	Mar. 07, 2011 Interest Rate Swaps on 2019 Notes [Member] USD ($)	Jun. 30, 2012 British Pound - U.S. Dollar Forward Exchange Contracts [Member] GBP (£)	Jul. 02, 2011 British Pound - U.S. Dollar Exchange Options [Member] USD ($)	Jun. 30, 2012 Canadian Dollar- U.S. forward exchange contracts [Member] USD ($)	Dec. 31, 2011 Canadian Dollar- U.S. forward exchange contracts [Member] USD ($)	Jul. 02, 2011 Canadian Dollar- U.S. forward exchange contracts [Member] USD ($)	Jul. 02, 2011 British Pound - Euro forward exchange contract [Member] EUR (€)
Derivative [Line Items]
Number of interest rate swap transactions					3																	3			3	3
Amount of hedged item related to derivative																						$ 250			$ 150	$ 150
Fixed interest rate related to derivative																						5.125%			6.875%	6.875%
Variable interest rate related to derivative																					three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.46%		one-month LIBOR rates (which were reset on the 15th day of each calendar quarter) plus 5.195%	based on three-month LIBOR rates (which are reset on the 15th day of each calendar quarter) plus 3.73%
Interest rate cap																						5.00%
Amount received upon termination of swaps																					5.7		3.5	8.1
Change in interest expense related to ineffectiveness of swap	(0.2)	(0.9)	1.3	1.2
Change in interest expense related to changes in the fair value of interest rate cap	0	0.5	0.2	0.7
Net (decrease) increase in interest expense	(0.2)	(0.4)	1.5	1.9
Notional amounts of foreign exchange contracts outstanding																											3.0	2.5	10.2	5.3	10.3	2.4
Derivatives, Fair Value [Line Items]
Total derivative assets						0.1	5.6	5.1	0.1	0.2	0.7	5.5	5.1		0.1	0.1	0.1	0.1	0.2	0.6
Total derivative liabilities								$ 0.6						$ 0.6

XML

CREDIT FACILITIES (Details) In Millions, unless otherwise specified	Jun. 30, 2012 USD ($)	Jun. 30, 2012 European Lending Institution [Member] Stuart Weitzman Holdings, LLC [Member] EUR (€)	Jun. 30, 2012 Lending Institution [Member] Stuart Weitzman Holdings, LLC [Member] USD ($)
Line of Credit Facility [Line Items]
Maximum aggregate principal amount	$ 650
U.S. commitment drawable by U.S. borrowers as revolving loans or letters of credit	350
International commitment drawable by U.S., Canadian, or European borrowers as revolving loans or letters of credit	300
Maximum available for all letters of credit	350
Maximum available for trade letters of credit	350
Maximum available for standby letters of credit	50
Line Of Credit Facility Maximum Availability For Letters Of Credit Under US Commitment Denominated In Alternative Currency	150
Remaining availability for borrowings	381.6
Letters Of Credit Outstanding	16.3
Rate on $1.5 million unsecured borrowing facility			prevailing prime rate or the 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

XML

STATEMENT OF CASH FLOWS (Tables)

6 Months Ended

Jun. 30, 2012

Supplemental disclosures of cash flow information:

Schedule of Cash Flow Supplemental Disclosures and Part Noncash Acquisitions

STATEMENT OF CASH FLOWS

Fiscal Six Months Ended	June 30, 2012		July 2, 2011
(In millions)
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	26.0	$	21.0
Net income tax payments (refunds)		1.1		(7.4	)
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees		20.8		26.2
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger		-		10.2

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2012

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS [Text Block]

SUBSEQUENT EVENTS

On July 2, 2012, we acquired an 80% interest in Brian Atwood-related intellectual property from BA Holding Group, Inc., BKA International, Inc. and Brian Atwood, we acquired 100% of the equity interests in Atwood Italia S.r.l., and we acquired certain assets and assumed certain liabilities of Brian Atwood, Ltd.  The purchase price was $5.0 million.  Acquisition-related expenses incurred during the fiscal six months ended June 30, 2012 were $0.6 million.  This acquisition will be reported as part of our international wholesale and licensing, eliminations and other segments.

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STATEMENT OF CASH FLOWS (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011
Cash paid (received) during the period for:
Interest	$ 26.0	$ 21.0
Net income tax payments (refunds)	1.1	(7.4)
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees	20.8	26.2
Kurt Geiger [Member]
Supplemental disclosures of non-cash investing and financing activities:
Note payable and deferred compensation recorded related to acquisition	$ 0	$ 10.2

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ACCRUED RESTRUCTURING COSTS (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011
Jewelry [Member]
Restructuring Reserve [Roll Forward]
Balance	$ 1.5	$ 3.6
Additions	0.2	0.1
Payments and reductions	(0.2)	(1.9)
Balance	1.5	1.8
Net accrual reported as accrued expenses and other current liabilities	0.4	0.4
Net accrual reported as other noncurrent liabilities	1.1	1.4
Jewelry [Member] | One-time Termination Benefits [Member]
Restructuring Reserve [Roll Forward]
Balance	0	1.3
Additions	0	0
Payments and reductions	0	(1.3)
Balance	0	0
Jewelry [Member] | Lease Obligations [Member]
Restructuring Reserve [Roll Forward]
Balance	1.5	2.3
Additions	0.2	0.1
Payments and reductions	(0.2)	(0.6)
Balance	1.5	1.8
Texas Warehouse [Member]
Restructuring Reserve [Roll Forward]
Number of employees receiving termination benefits	220
One-time termination benefits and associated employee costs	3.4
Lease obligation costs	7.4
Texas Warehouse [Member] | Lease Obligations [Member]
Restructuring Reserve [Roll Forward]
Balance	0.9	4.1
Additions		0.1
Payments and reductions	(0.1)	(2.3)
Balance	0.8	1.9
Net accrual reported as accrued expenses and other current liabilities	0.8	1.9
Retail Stores [Member]
Restructuring Reserve [Roll Forward]
Number of retail stores closed	70	61
Retail Stores [Member] | One-time Termination Benefits [Member]
Restructuring Reserve [Roll Forward]
Balance	1.3	2.2
Additions	1.9	0.5
Payments and reductions	(1.3)	(1.9)
Balance	1.9	0.8
Net accrual reported as accrued expenses and other current liabilities	1.7	0.8
Net accrual reported as other noncurrent liabilities	0.2
Expected total termination benefits and associated employee costs	11.1
Expected number of terminated employees to receive termination benefits	2,167
Impairment losses recorded	$ 0.4	$ 2.5

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BASIS OF PRESENTATION (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Distribution costs included in SG&A expenses	$ 21.1	$ 21.9	$ 44.7	$ 47.0

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SEGMENT INFORMATION (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Segment Reporting Information [Line Items]
Number of reportable segments	6		6
Revenues	$ 854.8	$ 887.4	$ 1,790.7	$ 1,848.7
Segment income (loss)	21.7	44.9	61.9	106.1
Net interest expense	(8.8)	(37.0)	(51.5)	(58.2)
Equity in income of unconsolidated affiliate	0.4	0.7	1.3	2.0
Income before provision for income taxes	13.3	8.6	11.7	49.9
Licensing, Other and Eliminations [Member]
Segment Reporting Information [Line Items]
Revenues	10.2	10.4	22.5	22.4
Segment income (loss)	(3.0)	(4.8)	(3.5)	(5.2)
International Wholesale [Member]
Segment Reporting Information [Line Items]
Revenues	75.4	76.6	148.8	155.7
Segment income (loss)	9.7	9.5	19.6	18.8
International Retail [Member]
Segment Reporting Information [Line Items]
Revenues	97.3	53.4	175.2	63.6
Segment income (loss)	3.7	3.5	(1.3)	1.9
Domestic Wholesale Sportswear [Member]
Segment Reporting Information [Line Items]
Revenues	174.8	203.0	408.4	471.7
Segment income (loss)	8.9	22.3	32.2	53.1
Domestic Wholesale Jeanswear [Member]
Segment Reporting Information [Line Items]
Revenues	151.0	189.1	335.8	424.6
Segment income (loss)	7.0	11.9	23.6	39.9
Domestic Wholesale Footwear & Accessories [Member]
Segment Reporting Information [Line Items]
Revenues	195.5	188.4	421.3	409.0
Segment income (loss)	(1.6)	(2.4)	16.7	15.6
Domestic Retail [Member]
Segment Reporting Information [Line Items]
Revenues	150.6	166.5	278.7	301.7
Segment income (loss)	$ (3.0)	$ 4.9	$ (25.4)	$ (18.0)

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LONG-TERM DEBT (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jul. 02, 2011	Mar. 07, 2011
Long-Term Debt [Abstract]]
Senior Notes due 2019		$ 300.0
Senior Notes due 2019, stated rate		6.875%
Proceeds from Issuance of Long-term Debt	293.3
Proceeds used to repay amounts then outstanding under secured revolving credit agreement	45.0
Number of interest rate swap transactions		3
Amount of 2019 Notes converted to variable-rate debt		$ 150

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 7.4	$ 31.2
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
Amortization of restricted stock	13.3	11.1
Depreciation and other amortization	44.5	38.5
Impairment losses	0.4	2.9
Adjustments to acquisition consideration payable	19.4	25.3
Equity in income of unconsolidated affiliate	(1.3)	(2.0)
Deferred taxes	(7.4)	13.5
Fair value adjustments related to interest rate swaps and cap	1.4	1.9
Write-off of deferred financing fees	0	1.9
Other items, net	2.4	3.2
Changes in operating assets and liabilities:
Accounts receivable	22.2	(12.4)
Inventories	24.1	(2.8)
Prepaid expenses and other current assets	(21.1)	(5.0)
Other assets	8.1	(4.4)
Accounts payable	(3.8)	(13.3)
Income taxes payable/ prepaid income taxes	6.7	9.9
Accrued expenses and other current liabilities	(10.6)	(29.2)
Acquisition consideration payable	(0.8)	(4.8)
Other liabilities	19.1	0.1
Total adjustments	116.6	34.4
Net cash provided by operating activities	124.0	65.6
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(38.2)	(49.5)
Contingent consideration paid related to investment in GRI	(3.5)	0
Acquisition of KG Group Holdings Limited, net of cash acquired	0	(143.1)
Other	(0.1)	0
Net cash used in investing activities	(41.8)	(192.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of 6.875% Senior Notes due 2019	0	300.0
Debt issuance costs	0	(6.8)
Costs related to secured revolving credit agreement	(0.3)	(2.9)
Repayment of acquired debt of KG Group Holdings Limited	0	(174.1)
Dividends paid	(7.9)	(8.5)
Repurchases of common stock	(29)	(28)
Payments of acquisition consideration payable	(7.5)	(6.2)
Other items, net	1.0	0.3
Net cash (used in) provided by financing activities	(43.7)	73.8
EFFECT OF EXCHANGE RATES ON CASH	(0.2)	(1.2)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	38.3	(54.4)
CASH AND CASH EQUIVALENTS, BEGINNING	238.8	200.8
CASH AND CASH EQUIVALENTS, ENDING	$ 277.1	$ 146.4

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GOODWILL (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Jun. 30, 2012	Jul. 02, 2011
Goodwill [Line Items]
Goodwill Gross	$ 1,708.3	$ 1,614.8	$ 1,709.3	$ 1,711.9
Accumulated impairment losses	(1,453.0)	(1,453.0)	(1,453.0)	(1,453.0)
Net goodwill	255.3	161.8	256.3	258.9
Acquisition of Kurt Geiger		99.3
Foreign currency translation effects	1.0	(2.2)
International Wholesale [Member]
Goodwill [Line Items]
Goodwill Gross	111.6	55.3	112.1	100.1
Accumulated impairment losses	0	0	0	0
Net goodwill	111.6	55.3	112.1	100.1
Acquisition of Kurt Geiger		45.8
Foreign currency translation effects	0.5	(1.0)
International Retail [Member]
Goodwill [Line Items]
Goodwill Gross	50.4	0	50.9	52.3
Accumulated impairment losses	0	0	0	0
Net goodwill	50.4	0	50.9	52.3
Acquisition of Kurt Geiger		53.5
Foreign currency translation effects	0.5	(1.2)
Domestic Wholesale Sportswear [Member]
Goodwill [Line Items]
Goodwill Gross	46.7	46.7	46.7	46.7
Accumulated impairment losses	0	0	0	0
Net goodwill	46.7	46.7	46.7	46.7
Acquisition of Kurt Geiger		0
Foreign currency translation effects	0	0
Domestic Wholesale Jeanswear [Member]
Goodwill [Line Items]
Goodwill Gross	519.2	519.2	519.2	519.2
Accumulated impairment losses	(519.2)	(519.2)	(519.2)	(519.2)
Net goodwill	0	0	0	0
Acquisition of Kurt Geiger		0
Foreign currency translation effects	0	0
Domestic Wholesale Footwear & Accessories [Member]
Goodwill [Line Items]
Goodwill Gross	859.8	873.0	859.8	873.0
Accumulated impairment losses	(813.2)	(813.2)	(813.2)	(813.2)
Net goodwill	46.6	59.8	46.6	59.8
Acquisition of Kurt Geiger		0
Foreign currency translation effects	0	0
Domestic Retail [Member]
Goodwill [Line Items]
Goodwill Gross	120.6	120.6	120.6	120.6
Accumulated impairment losses	(120.6)	(120.6)	(120.6)	(120.6)
Net goodwill	0	0	0	0
Acquisition of Kurt Geiger		0
Foreign currency translation effects	$ 0	$ 0

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ACCRUED RESTRUCTURING COSTS (Tables)

6 Months Ended

Jun. 30, 2012

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, 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
Balance, January 1, 2012	$	-		$	1.5		$	1.5
Additions		-			0.2			0.2
Payments and reductions		-			(0.2	)		(0.2	)
Balance, June 30, 2012	$	-		$	1.5		$	1.5

Details of Texas Warehouse Restructuring

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

(In millions)	Lease obligations
Balance, January 1, 2011	$	4.1
Additions		0.1
Payments and reductions		(2.3	)
Balance, July 2, 2011	$	1.9
Balance, January 1, 2012	$	0.9
Payments and reductions		(0.1	)
Balance, June 30, 2012	$	0.8

Details of Retail Stores Restructurings

The details of the retail store restructuring accruals are as follows:

(In millions)	One-time termination benefits
Balance, January 1, 2011	$	2.2
Additions		0.5
Payments and reductions		(1.9	)
Balance, July 2, 2011	$	0.8
Balance, January 1, 2012	$	1.3
Additions		1.9
Payments and reductions		(1.3	)
Balance, June 30, 2012	$	1.9

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ACCOUNTS RECEIVABLE (Tables)

6 Months Ended

Jun. 30, 2012

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Schedule of accounts receivable

Accounts receivable consist of the following:

	June 30, 2012			July 2, 2011			December 31, 2011
(In millions)
Trade accounts receivable	$	352.6		$	409.2		$	367.9
Allowances for doubtful accounts, returns, discounts and co-op advertising		(25.4	)		(30.9	)		(28.3	)
	$	327.2		$	378.3		$	339.6

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FAIR VALUES Part I (Details) (USD $) In Millions, unless otherwise specified							6 Months Ended
	Jun. 30, 2012 Contingent consideration liability [Member] Moda [Member]	Jun. 30, 2012 Contingent consideration liability [Member] SWH [Member]		Jun. 30, 2012 Fair Value, Measurements, Recurring [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member]	Jun. 30, 2012 Fair Value, Measurements, Recurring [Member] Contingent consideration liability [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member] Contingent consideration liability [Member]	Jun. 30, 2012 Fair Value, Measurements, Recurring [Member] Contingent consideration liability [Member] Moda [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member] Contingent consideration liability [Member] Moda [Member]	Jun. 30, 2012 Fair Value, Measurements, Recurring [Member] Contingent consideration liability [Member] SWH [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member] Contingent consideration liability [Member] SWH [Member]	Jun. 30, 2012 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 1 [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 1 [Member]	Jun. 30, 2012 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 2 [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 2 [Member]	Jun. 30, 2012 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 3 [Member]	Jul. 02, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Rabbi Trust assets included in prepaid expenses and other current assets				$ 8.0	$ 7.5	$ 9.5							$ 8.0	$ 7.5	$ 9.5	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
British Pound - Euro forward contracts included in prepaid expenses and other current assets						0.1									0			0.1			0
British Pound - U.S. Dollar forward contracts included in prepaid expenses and other current assets				0.1									0			0.1			0
Canadian Dollar - U.S. Dollar forward contracts included in prepaid expenses and other current assets				0.1	0.1								0	0		0.1	0.1		0	0
Interest rate swaps included in other long-term assets					5.5	5.1								0	0		5.5	5.1		0	0
Interest rate cap included in other long-term assets					0.2	0.6								0	0		0.2	0.6		0	0
Total assets				8.2	13.3	15.3							8.0	7.5	9.5	0.2	5.8	5.8	0	0	0
Rabbi trust liabilities included in accrued employee compensation and benefits				8.0	7.5	9.5							8.0	7.5	9.5	0	0	0	0	0	0
Canadian dollar - U.S. dollar forward contracts included in accrued expenses and other current liabilities						0.6									0			0.6			0
Deferred director fees included in accrued expenses and other current liabilities				0.2	0.2								0.2	0.2		0	0		0	0
Current portion of acquisition consideration payable				216.7	192.7	21.5							0	0	0	0	0	0	216.7	192.7	21.5
5.125 senior notes due included in long-term debt					263.0	261.2								0	0		263.0	261.2		0	0
Hedged portion of 6.875% Senior Notes due 2019 included in long-term debt						154.4									0			154.4			0
Acquisition consideration payable, net of current portion				4.8	17.7	206.7							0	0	0	0	0	0	4.8	17.7	206.7
Total liabilities				229.7	481.1	653.9							8.2	7.7	9.5	0	263.0	416.2	221.5	210.4	228.2
Contingent consideration, at fair value [Roll Forward]
Contingent consideration, at fair value							210.4	213.9	14.8	22.9	195.6	191.0
Payments							(8.3)	(11.0)	(3.5)	0	(4.8)	(11.0)
Total adjustments included in earnings							19.4	25.3	(4.1)	(6.5)	23.5	31.8
Contingent consideration, at fair value							$ 221.5	$ 228.2	$ 7.2	$ 16.4	$ 214.3	$ 211.8
Quantitative Information About Level 3 Measurements [Abstract]
Net sales growth, minimum	(32.00%)
Net sales growth, maximum	10.00%
Net sales growth, weighted average	(3.00%)
Gross margin multiplier, minimum	1.63
Gross margin multiplier, maximum	1.70
Gross margin multiplier, weighted average	1.68
EBITDA growth, minimum		(18.00%)	[1]
EBITDA growth, maximum		22.00%	[1]
EBITDA growth, weighted average		2.10%	[1]
EBITDA multiplier, minimum		8.0	[1]
EBITDA multiplier, maximum		9.0	[1]
EBITDA mutliplier, weighted average		8.3	[1]
Discount rate	11.70%	11.70%

[1] Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in the acquisition agreement.

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GOODWILL (Tables)

6 Months Ended

Jun. 30, 2012

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

(In millions)	Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear			Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale			International Retail			Total
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
Balance, December 31, 2011
Goodwill	$	46.7	$	519.2		$	859.8		$	120.6		$	111.6		$	50.4		$	1,708.3
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		46.7		-			46.6			-			111.6			50.4			255.3
Foreign currency translation effects		-		-			-			-			0.5			0.5			1.0
Balance, June 30, 2012
Goodwill		46.7		519.2			859.8			120.6			112.1			50.9			1,709.3
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	46.6		$	-		$	112.1		$	50.9		$	256.3

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FAIR VALUES (Tables)

6 Months Ended

Jun. 30, 2012

FAIR VALUES [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

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 2, 2011, December 31, 2011 and June 30, 2012.

(In millions) Description	Classification	Total Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobserv-able inputs (Level 3)
July 2, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.5	$	9.5	$	-	$	-
British Pound - Euro forward contracts	Prepaid expenses and 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
December 31, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	7.5	$	7.5	$	-	$	-
Interest rate swaps	Other long-term assets		5.5		-		5.5		-
Interest rate cap	Other long-term assets		0.2		-		0.2		-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Total assets		$	13.3	$	7.5	$	5.8	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	7.5	$	7.5	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		0.2		0.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		192.7		-		-		192.7
5.125% Senior Notes  due 2014	Long-term debt		263.0		-		263.0		-
Acquisition consideration	Acquisition consideration payable, net of current portion		17.7		-		-		17.7
Total liabilities		$	481.1	$	7.7	$	263.0	$	210.4
June 30, 2012:
Rabbi Trust assets	Prepaid expenses and other current assets	$	8.0	$	8.0	$	-	$	-
British Pound- U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Total assets		$	8.2	$	8.0	$	0.2	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	8.0	$	8.0	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		0.2		0.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		216.7		-		-		216.7
Acquisition consideration	Acquisition consideration payable, net of current portion		4.8		-		-		4.8
Total liabilities		$	229.7	$	8.2	$	-	$	221.5

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 2, 2011 and June 30, 2012.

(In millions)	Acquisition of Moda			Acquisition of SWH			Total Acquisition Consideration Payable
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
Beginning balance, January 1, 2012	$	14.8		$	195.6		$	210.4
Payments		(3.5	)		(4.8	)		(8.3	)
Total adjustments included in earnings		(4.1	)		23.5			19.4
Balance, June 30, 2012	$	7.2		$	214.3		$	221.5

Quantitative information about Level 3 contingent consideration liability measurements

The following table represents quantitative information about the Level 3 contingent consideration liability measurements at June 30, 2012.

(In millions)	Fair Value at June 30, 2012		Valuation technique	Unobservable inputs	Range (Weighted Average)
Acquisition of Moda	$	7.2	Discounted projection of financial results	Net sales growth Gross margin multiplier Discount rate	-32% - +10% (-3.0%) 1.63 - 1.70 (1.68) 11.7%
Acquisition of SWH	$	214.3	Discounted projection of financial results and future cash flow	EBITDA (1) growth EBITDA (1) multiplier Discount rate	-18% - +22% (2.1%) 8.0 - 9.0 (8.3) 11.7%

(1) - Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in the acquisition agreement.

The valuation processes for the contingent consideration liabilities are based on the associated acquisition agreements.  Our inputs include probability-weighted projections of financial results and cash flows for the acquired business and a discount rate based on our weighted average cost of capital.  We internally calculate the estimated liability using projected financial information provided by the operating divisions.

The significant unobservable inputs used in the fair value measurement of the Moda contingent consideration liability are net sales growth, a gross margin multiplier (as defined in the acquisition agreement) and a discount factor.  An increase in the net sales or gross margin multiplier inputs would increase the fair value of the liability, while an increase in the discount rate would decrease the fair value of the liability.  There is no interrelationship between the unobservable inputs.  Changes in the fair value of the Moda contingent consideration liability are reported as adjustments to SG&A expenses in the domestic wholesale sportswear segment.

The significant unobservable inputs used in the fair value measurement of the SWH contingent consideration liability are probability-weighted projected EBITDA growth, the EBITDA multiplier (as defined in the acquisition agreement) and a discount rate.  An increase to the EBITDA growth or multiplier would increase the fair value of the liability, while an increase in the discount rate would decrease the fair value of the liability.  The EBITDA multiplier is based on the achieved level of EBITDA.  There is no interrelationship between the discount rate to the other unobservable inputs.  Changes in the fair value of the contingent consideration liability for SWH are reported as adjustments to interest expense.

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 2, 2011 and June 30, 2012, 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 unobserv-able inputs (Level 3)		Total losses recorded for the fiscal six months
At July 2, 2011:
Property and equipment	$	-	$	-	$	-	$	-	$	2.5
Transportation equipment		0.6		0.6		-		-		0.4
At June 30, 2012:
Property and equipment		-		-		-		-		0.4

Estimated fair values of other financial instruments by balance sheet location

At June 30, 2012, July 2, 2011 and December 31, 2011, 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 estimated fair values of other financial instruments subject to fair value disclosures were valued using market comparable inputs.  These inputs include broker quotes, quoted market prices, interest rates and exchange rates for the same or similar instruments.  The fair value and related carrying amounts for items not disclosed elsewhere are as follows:

(In millions)	June 30, 2012						July 2, 2011				December 31, 2011
	Fair Value Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Senior Notes, including hedged items recorded at fair value		1	$	824.4	$	732.5	$	815.3	$	740.5	$	821.7	$	692.6
Other long-term debt, including current portion		2		9.9		8.7		10.3		9.1		9.8		8.2
Note receivable from GRI		2		-		-		10.0		10.0		10.0		10.0
Other notes receivable		2		2.8		1.7		-		-		-		-

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Consolidated Statements of Changes in Equity (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Comprehensive loss:
Dividends on common stock (in dollars per share)	$ 0.05	$ 0.05	$ 0.10	$ 0.10

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DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives [Abstract]

Change in interest expense related to derivatives [Table Text Block]

We recorded net (decreases) increases in interest expense related to the ineffectiveness of the swaps and the changes in the fair value of the cap as follows.

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012		July 2, 2011
Interest rate swaps	$	(0.2	)	$	(0.9	)	$	1.3	$	1.2
Interest rate cap		-			0.5			0.2		0.7
Net (decrease) increase in interest expense	$	(0.2	)	$	(0.4	)	$	1.5	$	1.9

Notional amounts of foreign exchange contracts outstanding [Table Text Block]

The notional amounts of our foreign exchange contracts outstanding at June 30, 2012, July 2, 2011 and December 31, 2011 are as follows.

(In millions)	Notional Amounts
	June 30, 2012		July 2, 2011		December 31, 2011
Canadian Dollar - U.S. Dollar forward exchange contracts	US$10.2		US$10.3		US$5.3
British Pound - Euro forward exchange contracts		-		€2.4		-
British Pound - U.S. Dollar exchange options		-	US$2.5			-
British Pound - U.S. Dollar forward exchange contracts		£3.0		-		-

Fair Values of Derivative Instruments

Fair Values of Derivative Instruments

(In millions)	June 30, 2012			July 2, 2011			December 31, 2011
	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	$	5.5
Foreign exchange contracts	Prepaid expenses and other current assets		0.1			-	Prepaid expenses and other current assets		0.1
Total derivative assets		$	0.1		$	5.1		$	5.6
Foreign exchange contracts				Accrued expenses and other current liabilities	$	0.6
Total derivative liabilities					$	0.6
Derivatives not designated as hedging instruments
Foreign exchange contracts	Prepaid expenses and other current assets	$	0.1	Prepaid expenses and other current assets	$	0.1		$	-
Interest rate cap contract			-	Other long-term assets		0.6	Other long-term assets		0.2
Total derivative assets		$	0.1		$	0.7		$	0.2

Effect of Derivatives on the Statement of Operations

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

(In millions)		Amount of Pretax (Loss) due to Ineffectiveness Recognized in Income
Derivative type	Location of Pretax (Loss) due to Ineffectiveness Recognized in Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
Interest rate swap contracts	Interest expense		$	(1.3	)		$	(1.2	)

(In millions)	Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income								Amount of Pretax (Loss) Reclassified from Other Comprehensive Income into Income
Derivative type	Fiscal Six Months Ended June 30, 2012			Fiscal Six Months Ended July 2, 2011				Location of Pretax (Loss) Reclassified from Other Comprehensive Income into Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
Canadian Dollar - U.S. Dollar forward contracts		$	0.2		$	(0.6	)	Cost of sales		$	(0.1	)		$	(0.4	)

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

(In millions)		Amount of Pretax Gain (Loss) Recognized in Income
Derivative type	Location of Pretax (Loss) Recognized in Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
British Pound - Euro forward contracts	Selling, general and administrative expenses		$	-			$	0.1
Interest rate cap contract	Interest expense			(0.2	)			(0.7	)

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EQUITY METHOD INVESTMENTS (Details) (GRI [Member], USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 24, 2009	Jun. 20, 2008
GRI [Member]
Equity Method Investments
Initial Ownership Percentage			10.00%
Initial Cost			$ 20.2
Ownership Percentage		25.00%
Additional Investment Cost		15.2
Contingent additional cash payment percentage of net income over threshold		60.00%
Payment of contingent liability to affiliate	$ 3.5

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011	Dec. 31, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash and cash equivalents	$ 277.1	$ 146.4	$ 277.1	$ 146.4
Accounts receivable	327.2	378.3	327.2	378.3	339.6
Inventories	467.5	523.2	467.5	523.2	491.1
Prepaid and refundable income taxes	1.4	11.5	1.4	11.5	11.9
Deferred taxes	27.7	26.2	27.7	26.2	26.4
Prepaid expenses and other current assets	59.1		59.1		47.7
Total current assets	1,160.0	1,129.9	1,160.0	1,129.9	1,155.5
Property, plant and equipment	271.4	270.2	271.4	270.2	271.4
Due from affiliates	0		0		0
Goodwill	256.3	258.9	256.3	258.9	255.3	161.8
Other intangibles	891.8	947.3	891.8	947.3	897.4
Deferred taxes	0		0		0
Investments in and loan to subsidiaries	38.4	43.6	38.4	43.6	35.6
Other assets	91.0	109.1	91.0	109.1	100.1
Total assets	2,708.9	2,759.0	2,708.9	2,759.0	2,715.3
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	2.1	1.9	2.1	1.9	2.0
Current portion of acquisition consideration payable	216.7		216.7		194.1
Accounts payable	232.7	230.2	232.7	230.2	236.2
Income taxes payable	4.6	0.4	4.6	0.4	1.4
Accrued expenses and other current liabilities	135.1		135.1		146.3
Total current liabilities	591.2	398.0	591.2	398.0	580.0
Noncurrent liabilities:
Long-term debt	834.2	825.4	834.2	825.4	831.4
Obligations under capital leases	22.3	24.3	22.3	24.3	23.3
Income taxes payable	0.5	8.7	0.5	8.7	6.7
Deferred taxes	69.6	74.9	69.6	74.9	73.4
Acquisition consideration payable	4.8	206.7	4.8	206.7	17.7
Due to affiliates	0		0		0
Other	112.4	79.1	112.4	79.1	93.4
Total liabilities	1,635.0	1,617.1	1,635.0	1,617.1	1,625.9
EQUITY:
Common stock and additional paid-in capital	522.1		522.1		522.6
Retained earnings	579.8	611.3	579.8	611.3	596.2
Accumulated other comprehensive (loss) income	(28.3)	(9.9)	(28.3)	(9.9)	(29.6)
Total Jones stockholders' equity	1,073.6	1,141.7	1,073.6	1,141.7	1,089.2
Noncontrolling interest	0.3	0.2	0.3	0.2	0.2
Total equity	1,073.9	1,141.9	1,073.9	1,141.9	1,089.4	1,138.3
Total liabilities and equity	2,708.9	2,759.0	2,708.9	2,759.0	2,715.3
Condensed Consolidating Statements of Operations [Abstract]
Net sales	844.3	876.7	1,767.7	1,825.7
Licensing income	10.2	10.4	22.5	22.5
Other revenues	0.3	0.3	0.5	0.5
Total revenues	854.8	887.4	1,790.7	1,848.7
Cost of goods sold	528.6	564.3	1,121.1	1,194.9
Gross profit	326.2	323.1	669.6	653.8
Selling, general and administrative expenses	304.5	278.2	607.7	547.7
Segment income (loss)	21.7	44.9	61.9	106.1
Net interest expense (income) and financing costs	8.8	37.0	51.5	58.2
Equity in income of unconsolidated affiliate	0.4	0.7	1.3	2.0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries	13.3	8.6	11.7	49.9
(Benefit) provision for income taxes	4.9	3.2	4.3	18.7
Equity in earnings of subsidiaries	0	0	0	0
Net income	8.4	5.4	7.4	31.2
Less: income attributable to noncontrolling interest	0.3	0.2	0.5	0.4
Income attributable to Jones	8.1	5.2	6.9	30.8
Condensed Consolidating Statements of Other Comprehensive Income [Abstract]
Net income	8.4	5.4	7.4	31.2
Other comprehensive income (loss):
Change in fair value of cash flow hegdes, net of tax	0.2	(0.1)	0.1	(0.4)
Reclassification adjustment for hedge gains and losses included in net income, net of tax	0	0.2	0.1	0.3
Foreign currency translation adjustments	(8.2)	(4.6)	1.1	(1.4)
Total other comprehensive income	(8.0)	(4.5)	1.3	(1.5)
Comprehensive income	0.4	0.9	8.7	29.7
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash provided by operating activities			124.0	65.6
Cash flows from investing activities:
Capital expenditures			(38.2)	(49.5)
Contingent consideration paid related to investment in GRI			(3.5)	0
Acquisition of KG Group Holdings Limited, net of cash acquired			0	(143.1)
Other			(0.1)	0
Net cash used in investing activities			(41.8)	(192.6)
Cash flows from financing activities:
Issuance of 6.875% Senior Notes due 2019			0	300.0
Debt issuance costs			0	(6.8)
Costs related to secured revolving credit agreement			(0.3)	(2.9)
Repayment of acquired debt of KG Group Holdings Limited			0	(174.1)
Dividends paid			(7.9)	(8.5)
Repurchase of of common shares			(29)	(28)
Payments of acquisition consideration payable			(7.5)	(6.2)
Other items, net			1.0	0.3
Net cash (used in) provided by financing activities			(43.7)	73.8
Effect of exchange rates on cash			(0.2)	(1.2)
Net increase (decrease) in cash and cash equivalents			38.3	(54.4)
CASH AND CASH EQUIVALENTS, BEGINNING			238.8	200.8
CASH AND CASH EQUIVALENTS, ENDING	277.1	146.4	277.1	146.4
Eliminations [Member]
CURRENT ASSETS:
Cash and cash equivalents	0	0	0	0
Accounts receivable	0		0		0
Inventories	(1.3)		(1.3)		(0.3)
Prepaid and refundable income taxes	(19.3)		(19.3)		1.7
Deferred taxes	0		0		0
Prepaid expenses and other current assets	0		0		0
Total current assets	(20.6)		(20.6)		1.4
Property, plant and equipment	0		0		0
Due from affiliates	(288.3)		(288.3)		(1,604.4)
Goodwill	0		0		0
Other intangibles	0		0		0
Deferred taxes	(92.3)		(92.3)		(80.6)
Investments in and loan to subsidiaries	(1,713.9)		(1,713.9)		(3,047.9)
Other assets	0		0		0
Total assets	(2,115.1)		(2,115.1)		(4,731.5)
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	0		0		0
Current portion of acquisition consideration payable	0		0		0
Accounts payable	0		0		0
Income taxes payable	(39.6)		(39.6)		(18.1)
Accrued expenses and other current liabilities	0		0		0
Total current liabilities	(39.6)		(39.6)		(18.1)
Noncurrent liabilities:
Long-term debt	0		0		0
Obligations under capital leases	0		0		0
Income taxes payable	0		0		0
Deferred taxes	(98.3)		(98.3)		(86.6)
Acquisition consideration payable	0		0		0
Due to affiliates	(288.3)		(288.3)		(1,604.4)
Other	0		0		0
Total liabilities	(426.2)		(426.2)		(1,709.1)
EQUITY:
Common stock and additional paid-in capital	(947.8)		(947.8)		(2,352.4)
Retained earnings	(748.4)		(748.4)		(680.2)
Accumulated other comprehensive (loss) income	7.3		7.3		10.2
Total Jones stockholders' equity	(1,688.9)		(1,688.9)		(3,022.4)
Noncontrolling interest	0		0		0
Total equity	(1,688.9)		(1,688.9)		(3,022.4)
Total liabilities and equity	(2,115.1)		(2,115.1)		(4,731.5)
Condensed Consolidating Statements of Operations [Abstract]
Net sales	(6.0)	(4.7)	(12.8)	(9.5)
Licensing income	0	0	0	0
Other revenues	0	0	0	0
Total revenues	(6.0)	(4.7)	(12.8)	(9.5)
Cost of goods sold	(3.8)	(2.2)	(7.5)	(3.7)
Gross profit	(2.2)	(2.5)	(5.3)	(5.8)
Selling, general and administrative expenses	(2.0)	(2.3)	(4.2)	(5.6)
Segment income (loss)	(0.2)	(0.2)	(1.1)	(0.2)
Net interest expense (income) and financing costs	0	0	0	0
Equity in income of unconsolidated affiliate	0	0	0	0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries	(0.2)	(0.2)	(1.1)	(0.2)
(Benefit) provision for income taxes	0	0	(0.4)	0
Equity in earnings of subsidiaries	(38.4)	(51.5)	(78.3)	(105.0)
Net income	(38.6)	(51.7)	(79.0)	(105.2)
Less: income attributable to noncontrolling interest	0	0	0	0
Income attributable to Jones	(38.6)	(51.7)	(79.0)	(105.2)
Condensed Consolidating Statements of Other Comprehensive Income [Abstract]
Net income	(38.6)	(51.7)	(79.0)	(105.2)
Other comprehensive income (loss):
Change in fair value of cash flow hegdes, net of tax	(0.2)	0.1	(0.1)	0.4
Reclassification adjustment for hedge gains and losses included in net income, net of tax	0	(0.2)	(0.1)	(0.3)
Foreign currency translation adjustments	8.2	4.6	(1.1)	1.4
Total other comprehensive income	8.0	4.5	(1.3)	1.5
Comprehensive income	(30.6)	(47.2)	(80.3)	(103.7)
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash provided by operating activities			(5.9)	(13.5)
Cash flows from investing activities:
Capital expenditures			0	0
Contingent consideration paid related to investment in GRI			0	0
Acquisition of KG Group Holdings Limited, net of cash acquired			0	0
Other			0	0
Net cash used in investing activities			0	0
Cash flows from financing activities:
Issuance of 6.875% Senior Notes due 2019			0	0
Debt issuance costs			0	0
Costs related to secured revolving credit agreement			0	0
Repayment of acquired debt of KG Group Holdings Limited			0	0
Dividends paid			5.9	13.5
Repurchase of of common shares			0	0
Payments of acquisition consideration payable			0	0
Other items, net			0	0
Net cash (used in) provided by financing activities			5.9	13.5
Effect of exchange rates on cash			0	0
Net increase (decrease) in cash and cash equivalents			0	0
CASH AND CASH EQUIVALENTS, BEGINNING			0	0
CASH AND CASH EQUIVALENTS, ENDING	0	0	0	0
Issuers [Member]
CURRENT ASSETS:
Cash and cash equivalents	210.6	91.0	210.6	91.0
Accounts receivable	173.0		173.0		182.9
Inventories	258.7		258.7		270.5
Prepaid and refundable income taxes	16.8		16.8		5.3
Deferred taxes	14.5		14.5		13.2
Prepaid expenses and other current assets	37.5		37.5		21.5
Total current assets	711.1		711.1		689.2
Property, plant and equipment	60.0		60.0		64.9
Due from affiliates	0		0		0
Goodwill	46.7		46.7		46.7
Other intangibles	6.4		6.4		6.9
Deferred taxes	92.3		92.3		80.6
Investments in and loan to subsidiaries	1,713.9		1,713.9		3,047.9
Other assets	70.2		70.2		79.3
Total assets	2,700.6		2,700.6		4,015.5
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	0		0		0
Current portion of acquisition consideration payable	216.7		216.7		192.7
Accounts payable	130.2		130.2		139.7
Income taxes payable	16.6		16.6		11.2
Accrued expenses and other current liabilities	71.3		71.3		79.0
Total current liabilities	434.8		434.8		422.6
Noncurrent liabilities:
Long-term debt	834.1		834.1		831.3
Obligations under capital leases	0		0		0
Income taxes payable	0.5		0.5		6.7
Deferred taxes	0		0		0
Acquisition consideration payable	4.8		4.8		17.7
Due to affiliates	288.3		288.3		1,604.4
Other	87.8		87.8		67.7
Total liabilities	1,650.3		1,650.3		2,950.4
EQUITY:
Common stock and additional paid-in capital	522.1		522.1		522.6
Retained earnings	556.5		556.5		572.1
Accumulated other comprehensive (loss) income	(28.3)		(28.3)		(29.6)
Total Jones stockholders' equity	1,050.3		1,050.3		1,065.1
Noncontrolling interest	0		0		0
Total equity	1,050.3		1,050.3		1,065.1
Total liabilities and equity	2,700.6		2,700.6		4,015.5
Condensed Consolidating Statements of Operations [Abstract]
Net sales	516.6	557.3	1,087.2	1,174.9
Licensing income	0	0.1	0	0.1
Other revenues	0.3	0.3	0.5	0.5
Total revenues	516.9	557.7	1,087.7	1,175.5
Cost of goods sold	333.8	356.3	711.1	764.5
Gross profit	183.1	201.4	376.6	411.0
Selling, general and administrative expenses	216.2	227.2	422.8	447.9
Segment income (loss)	(33.1)	(25.8)	(46.2)	(36.9)
Net interest expense (income) and financing costs	9.2	38.0	52.4	60.6
Equity in income of unconsolidated affiliate	0	0	0	0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries	(42.3)	(63.8)	(98.6)	(97.5)
(Benefit) provision for income taxes	(12.2)	(17.5)	(28.1)	(23.4)
Equity in earnings of subsidiaries	38.4	51.5	78.3	105.0
Net income	8.3	5.2	7.8	30.9
Less: income attributable to noncontrolling interest	0	0	0	0
Income attributable to Jones	8.3	5.2	7.8	30.9
Condensed Consolidating Statements of Other Comprehensive Income [Abstract]
Net income	8.3	5.2	7.8	30.9
Other comprehensive income (loss):
Change in fair value of cash flow hegdes, net of tax	0.2	(0.1)	0.1	(0.4)
Reclassification adjustment for hedge gains and losses included in net income, net of tax	0	0.2	0.1	0.3
Foreign currency translation adjustments	(8.2)	(4.6)	1.1	(1.4)
Total other comprehensive income	(8.0)	(4.5)	1.3	(1.5)
Comprehensive income	0.3	0.7	9.1	29.4
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash provided by operating activities			58.7	21.3
Cash flows from investing activities:
Capital expenditures			(9.0)	(24.5)
Contingent consideration paid related to investment in GRI			0	0
Acquisition of KG Group Holdings Limited, net of cash acquired			0	(150.0)
Other			0	0
Net cash used in investing activities			(9.0)	(174.5)
Cash flows from financing activities:
Issuance of 6.875% Senior Notes due 2019			0	300.0
Debt issuance costs			0	(6.8)
Costs related to secured revolving credit agreement			(0.3)	(2.9)
Repayment of acquired debt of KG Group Holdings Limited			0	(174.1)
Dividends paid			(7.9)	(8.5)
Repurchase of of common shares			(29)	(28)
Payments of acquisition consideration payable			0	0
Other items, net			2.3	1.5
Net cash (used in) provided by financing activities			(34.9)	81.2
Effect of exchange rates on cash			0	0
Net increase (decrease) in cash and cash equivalents			14.8	(72.0)
CASH AND CASH EQUIVALENTS, BEGINNING			195.8	163.0
CASH AND CASH EQUIVALENTS, ENDING	210.6	91.0	210.6	91.0
Others [Member]
CURRENT ASSETS:
Cash and cash equivalents	66.5	55.4	66.5	55.4
Accounts receivable	154.2		154.2		156.7
Inventories	210.1		210.1		220.9
Prepaid and refundable income taxes	3.9		3.9		4.9
Deferred taxes	13.2		13.2		13.2
Prepaid expenses and other current assets	21.6		21.6		26.2
Total current assets	469.5		469.5		464.9
Property, plant and equipment	211.4		211.4		206.5
Due from affiliates	288.3		288.3		1,604.4
Goodwill	209.6		209.6		208.6
Other intangibles	885.4		885.4		890.5
Deferred taxes	0		0		0
Investments in and loan to subsidiaries	38.4		38.4		35.6
Other assets	20.8		20.8		20.8
Total assets	2,123.4		2,123.4		3,431.3
CURRENT LIABILITIES:
Current portion of long-term debt and capital lease obligations	2.1		2.1		2.0
Current portion of acquisition consideration payable	0		0		1.4
Accounts payable	102.5		102.5		96.5
Income taxes payable	27.6		27.6		8.3
Accrued expenses and other current liabilities	63.8		63.8		67.3
Total current liabilities	196.0		196.0		175.5
Noncurrent liabilities:
Long-term debt	0.1		0.1		0.1
Obligations under capital leases	22.3		22.3		23.3
Income taxes payable	0		0		0
Deferred taxes	167.9		167.9		160.0
Acquisition consideration payable	0		0		0
Due to affiliates	0		0		0
Other	24.6		24.6		25.7
Total liabilities	410.9		410.9		384.6
EQUITY:
Common stock and additional paid-in capital	947.8		947.8		2,352.4
Retained earnings	771.7		771.7		704.3
Accumulated other comprehensive (loss) income	(7.3)		(7.3)		(10.2)
Total Jones stockholders' equity	1,712.2		1,712.2		3,046.5
Noncontrolling interest	0.3		0.3		0.2
Total equity	1,712.5		1,712.5		3,046.7
Total liabilities and equity	2,123.4		2,123.4		3,431.3
Condensed Consolidating Statements of Operations [Abstract]
Net sales	333.7	324.1	693.3	660.3
Licensing income	10.2	10.3	22.5	22.4
Other revenues	0	0	0	0
Total revenues	343.9	334.4	715.8	682.7
Cost of goods sold	198.6	210.2	417.5	434.1
Gross profit	145.3	124.2	298.3	248.6
Selling, general and administrative expenses	90.3	53.3	189.1	105.4
Segment income (loss)	55.0	70.9	109.2	143.2
Net interest expense (income) and financing costs	(0.4)	(1.0)	(0.9)	(2.4)
Equity in income of unconsolidated affiliate	0.4	0.7	1.3	2.0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries	55.8	72.6	111.4	147.6
(Benefit) provision for income taxes	17.1	20.7	32.8	42.1
Equity in earnings of subsidiaries	0	0	0	0
Net income	38.7	51.9	78.6	105.5
Less: income attributable to noncontrolling interest	0.3	0.2	0.5	0.4
Income attributable to Jones	38.4	51.7	78.1	105.1
Condensed Consolidating Statements of Other Comprehensive Income [Abstract]
Net income	38.7	51.9	78.6	105.5
Other comprehensive income (loss):
Change in fair value of cash flow hegdes, net of tax	0.2	(0.1)	0.1	(0.4)
Reclassification adjustment for hedge gains and losses included in net income, net of tax	0	0.2	0.1	0.3
Foreign currency translation adjustments	(8.2)	(4.6)	1.1	(1.4)
Total other comprehensive income	(8.0)	(4.5)	1.3	(1.5)
Comprehensive income	30.7	47.4	79.9	104.0
Condensed Consolidating Statements Of Cash Flows [Abstract]
Net cash provided by operating activities			71.2	57.8
Cash flows from investing activities:
Capital expenditures			(29.2)	(25.0)
Contingent consideration paid related to investment in GRI			(3.5)	0
Acquisition of KG Group Holdings Limited, net of cash acquired			0	6.9
Other			(0.1)	0
Net cash used in investing activities			(32.8)	(18.1)
Cash flows from financing activities:
Issuance of 6.875% Senior Notes due 2019			0	0
Debt issuance costs			0	0
Costs related to secured revolving credit agreement			0	0
Repayment of acquired debt of KG Group Holdings Limited			0	0
Dividends paid			(5.9)	(13.5)
Repurchase of of common shares			0	0
Payments of acquisition consideration payable			(7.5)	(6.2)
Other items, net			(1.3)	(1.2)
Net cash (used in) provided by financing activities			(14.7)	(20.9)
Effect of exchange rates on cash			(0.2)	(1.2)
Net increase (decrease) in cash and cash equivalents			23.5	17.6
CASH AND CASH EQUIVALENTS, BEGINNING			43.0	37.8
CASH AND CASH EQUIVALENTS, ENDING	$ 66.5	$ 55.4	$ 66.5	$ 55.4

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Consolidated Balance Sheets (Unaudited) (USD $) In Millions, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jul. 02, 2011
Current assets:
Cash and cash equivalents	$ 277.1	$ 238.8	$ 146.4
Accounts receivable	327.2	339.6	378.3
Inventories, primarily finished goods	467.5	491.1	523.2
Prepaid and refundable income taxes	1.4	11.9	11.5
Deferred taxes	27.7	26.4	26.2
Loan to unconsolidated affiliate	0	10.0	0
Prepaid expenses and other current assets	59.1	37.7	44.3
Total current assets	1,160.0	1,155.5	1,129.9
Property, plant and equipment, at cost, less accumulated depreciation and amortization of $590.2, $579.6 and $605.4	271.4	271.4	270.2
Goodwill	256.3	255.3	258.9
Other intangibles, at cost, less accumulated amortization	891.8	897.4	947.3
Investment in and loan to unconsolidated affiliate	38.4	35.6	43.6
Other assets	91.0	100.1	109.1
Total assets	2,708.9	2,715.3	2,759.0
Current Liabilities:
Current portion of long-term debt and capital lease obligations	2.1	2.0	1.9
Current portion of acquisition consideration payable	216.7	194.1	23.0
Accounts payable	232.7	236.2	230.2
Income taxes payable	4.6	1.4	0.4
Accrued employee compensation and benefits	36.4	45.3	39.2
Accrued expenses and other current liabilities	98.7	101.0	103.3
Total current liabilities	591.2	580.0	398.0
Noncurrent liabilities:
Long-term debt	834.2	831.4	825.4
Obligations under capital leases	22.3	23.3	24.3
Deferred taxes	69.6	73.4	74.9
Income taxes payable	0.5	6.7	8.7
Acquisition consideration payable	4.8	17.7	206.7
Other noncurrent liabilities	112.4	93.4	79.1
Total liabilities	1,635.0	1,625.9	1,617.1
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 80.2, 85.9 and 81.0	0.8	0.8	0.9
Additional paid-in capital	521.3	521.8	539.4
Retained earnings	579.8	596.2	611.3
Accumulated other comprehensive loss	(28.3)	(29.6)	(9.9)
Total Jones stockholders' equity	1,073.6	1,089.2	1,141.7
Noncontrolling interest	0.3	0.2	0.2
Total equity	1,073.9	1,089.4	1,141.9
Total liabilities and equity	$ 2,708.9	$ 2,715.3	$ 2,759.0

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FAIR VALUES, Part II (Details) In Millions, unless otherwise specified												6 Months Ended
	Jun. 30, 2012 Fair Value, Inputs, Level 1 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jul. 02, 2011 Fair Value, Inputs, Level 1 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jun. 30, 2012 Fair Value, Inputs, Level 2 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jul. 02, 2011 Fair Value, Inputs, Level 2 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jun. 30, 2012 Carrying (Reported) Amount, Fair Value Disclosure [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Dec. 31, 2011 Carrying (Reported) Amount, Fair Value Disclosure [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jul. 02, 2011 Carrying (Reported) Amount, Fair Value Disclosure [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Dec. 31, 2010 Carrying (Reported) Amount, Fair Value Disclosure [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jul. 02, 2011 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 1 [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jun. 30, 2012 Change During Period, Fair Value Disclosure [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jul. 02, 2011 Change During Period, Fair Value Disclosure [Member] Fair Value, Measurements, Nonrecurring [Member] USD ($)	Jun. 30, 2012 Canadian Dollar contracts maturing through November 2012 [Member] USD ($)	Jun. 30, 2012 British Pound for US Dollar contracts maturing through December 2012 [Member] GBP (£)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Property and equipment, fair value disclosure								$ 0.4		$ 2.5
Transportation equipment, fair value disclosure									0.6	1.0	0.6
Senior Notes, including hedged items recorded at fair value	732.5	692.6	740.5				824.4	821.7	815.3
Other long-term debt, including current portion				8.7	8.2	9.1	9.9	9.8	10.3
Note receivable from GRI				0	10.0	10.0	0	10.0	10.0
Other notes receivable				1.7	0	0	2.8	0	0
Notional amounts of foreign exchange contracts outstanding														10.2	3.0
Weighted-average exchange rate on foreign currency forward contracts														1.00
Derivative, Forward Exchange Rate															1.61
Fair value loss on property and equipment utilized in retail operations												0.4	2.5
Fair value loss on transportation equipment													$ 0.4

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Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Other comprehensive income (loss):
Tax benefit (provision), Change in fair value of cash flow hedges	$ (0.1)	$ 0	$ (0.1)	$ 0.2
Tax benefit, Reclassification adjustment for hedge gains and losses included in net income		$ 0.1	$ 0	$ 0.1

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized below are our revenues and income by reportable segment for the fiscal quarters and six months ended June 30, 2012 and July 2, 2011.  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 & Access-ories			Domestic Retail			International Wholesale		International Retail			Licensing, Other & Eliminations			Consolidated
For the fiscal quarter ended June 30, 2012
Revenues	$	174.8	$	151.0	$	195.5		$	150.6		$	75.4	$	97.3		$	10.2		$	854.8
Segment income (loss)	$	8.9	$	7.0	$	(1.6	)	$	(3.0	)	$	9.7	$	3.7		$	(3.0	)		21.7
Net interest expense																				(8.8	)
Equity in income of unconsolidated affiliate																				0.4
Income before provision for income taxes																			$	13.3
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 unconsolidated affiliate																				0.7
Income before provision for income taxes																			$	8.6
For the fiscal six months ended June 30, 2012
Revenues	$	408.4	$	335.8	$	421.3		$	278.7		$	148.8	$	175.2		$	22.5		$	1,790.7
Segment income (loss)	$	32.2	$	23.6	$	16.7		$	(25.4	)	$	19.6	$	(1.3	)	$	(3.5	)		61.9
Net interest expense																				(51.5	)
Equity in income of unconsolidated affiliate																				1.3
Income before provision for income taxes																			$	11.7
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 unconsolidated affiliate																				2.0
Income before provision for income taxes																			$	49.9

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PENSION PLANS

6 Months Ended

Jun. 30, 2012

Compensation And Retirement Disclosure [Abstract]

PENSION PLANS

PENSION PLANS

Components of Net Periodic Benefit Cost

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
Interest cost	$	0.6		$	0.7		$	1.2		$	1.3
Expected return on plan assets		(0.7	)		(0.7	)		(1.3	)		(1.3	)
Amortization of net loss		0.6			0.4			1.1			0.9
Net periodic benefit cost	$	0.5		$	0.4		$	1.0		$	0.9

Employer Contributions

During the fiscal six months ended June 30, 2012, we contributed $1.1 million to our defined benefit pension plan.  We anticipate contributing a total of $6.5 million during 2012.

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed consolidating financial information of co-issuers of outstanding debt and others [Table Text Block]

The following condensed consolidating balance sheets, statements of operations, statements of consolidated comprehensive income 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)

	June 30, 2012												December 31, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
ASSETS
Current assets:
Cash and cash equivalents	$	210.6		$	66.5		$	-		$	277.1		$	195.8		$	43.0		$	-		$	238.8
Accounts receivable		173.0			154.2			-			327.2			182.9			156.7			-			339.6
Inventories		258.7			210.1			(1.3	)		467.5			270.5			220.9			(0.3	)		491.1
Prepaid and refundable income taxes		16.8			3.9			(19.3	)		1.4			5.3			4.9			1.7			11.9
Deferred taxes		14.5			13.2			-			27.7			13.2			13.2			-			26.4
Prepaid expenses and other current assets		37.5			21.6			-			59.1			21.5			26.2			-			47.7
Total current assets		711.1			469.5			(20.6	)		1,160.0			689.2			464.9			1.4			1,155.5
Property, plant and equipment		60.0			211.4			-			271.4			64.9			206.5			-			271.4
Due from affiliates		-			288.3			(288.3	)		-			-			1,604.4			(1,604.4	)		-
Goodwill		46.7			209.6			-			256.3			46.7			208.6			-			255.3
Other intangibles		6.4			885.4			-			891.8			6.9			890.5			-			897.4
Deferred taxes		92.3			-			(92.3	)		-			80.6			-			(80.6	)		-
Investments in and loan to subsidiaries		1,713.9			38.4			(1,713.9	)		38.4			3,047.9			35.6			(3,047.9	)		35.6
Other assets		70.2			20.8			-			91.0			79.3			20.8			-			100.1
Total assets	$	2,700.6		$	2,123.4		$	(2,115.1	)	$	2,708.9		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations	$	-		$	2.1		$	-		$	2.1		$	-		$	2.0		$	-		$	2.0
Current portion of acquisition consideration payable		216.7			-			-			216.7			192.7			1.4			-			194.1
Accounts payable		130.2			102.5			-			232.7			139.7			96.5			-			236.2
Income taxes payable		16.6			27.6			(39.6	)		4.6			11.2			8.3			(18.1	)		1.4
Accrued expenses and other current liabilities		71.3			63.8			-			135.1			79.0			67.3			-			146.3
Total current liabilities		434.8			196.0			(39.6	)		591.2			422.6			175.5			(18.1	)		580.0
Long-term debt		834.1			0.1			-			834.2			831.3			0.1			-			831.4
Obligations under capital leases		-			22.3			-			22.3			-			23.3			-			23.3
Income taxes payable		0.5			-			-			0.5			6.7			-			-			6.7
Deferred taxes		-			167.9			(98.3	)		69.6			-			160.0			(86.6	)		73.4
Acquisition consideration payable		4.8			-			-			4.8			17.7			-			-			17.7
Due to affiliates		288.3			-			(288.3	)		-			1,604.4			-			(1,604.4	)		-
Other		87.8			24.6			-			112.4			67.7			25.7			-			93.4
Total liabilities		1,650.3			410.9			(426.2	)		1,635.0			2,950.4			384.6			(1,709.1	)		1,625.9
Equity:
Common stock and additional paid-in capital		522.1			947.8			(947.8	)		522.1			522.6			2,352.4			(2,352.4	)		522.6
Retained earnings		556.5			771.7			(748.4	)		579.8			572.1			704.3			(680.2	)		596.2
Accumulated other comprehensive (loss) income		(28.3	)		(7.3	)		7.3			(28.3	)		(29.6	)		(10.2	)		10.2			(29.6	)
Total Jones stockholders' equity		1,050.3			1,712.2			(1,688.9	)		1,073.6			1,065.1			3,046.5			(3,022.4	)		1,089.2
Noncontrolling interest		-			0.3			-			0.3			-			0.2			-			0.2
Total equity		1,050.3			1,712.5			(1,688.9	)		1,073.9			1,065.1			3,046.7			(3,022.4	)		1,089.4
Total liabilities and equity	$	2,700.6		$	2,123.4		$	(2,115.1	)	$	2,708.9		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended June 30, 2012											Fiscal Quarter Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	516.6		$	333.7		$	(6.0	)	$	844.3	$	557.3		$	324.1		$	(4.7	)	$	876.7
Licensing income		-			10.2			-			10.2		0.1			10.3			-			10.4
Other revenues		0.3			-			-			0.3		0.3			-			-			0.3
Total revenues		516.9			343.9			(6.0	)		854.8		557.7			334.4			(4.7	)		887.4
Cost of goods sold		333.8			198.6			(3.8	)		528.6		356.3			210.2			(2.2	)		564.3
Gross profit		183.1			145.3			(2.2	)		326.2		201.4			124.2			(2.5	)		323.1
Selling, general and administrative expenses		216.2			90.3			(2.0	)		304.5		227.2			53.3			(2.3	)		278.2
Operating (loss) income		(33.1	)		55.0			(0.2	)		21.7		(25.8	)		70.9			(0.2	)		44.9
Net interest expense (income) and financing costs		9.2			(0.4	)		-			8.8		38.0			(1.0	)		-			37.0
Equity in income of unconsolidated affiliate		-			0.4			-			0.4		-			0.7			-			0.7
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(42.3	)		55.8			(0.2	)		13.3		(63.8	)		72.6			(0.2	)		8.6
(Benefit) provision for income taxes		(12.2	)		17.1			-			4.9		(17.5	)		20.7			-			3.2
Equity in earnings of subsidiaries		38.4			-			(38.4	)		-		51.5			-			(51.5	)		-
Net income		8.3			38.7			(38.6	)		8.4		5.2			51.9			(51.7	)		5.4
Less: income attributable to noncontrolling interest		-			0.3			-			0.3		-			0.2			-			0.2
Income attributable to Jones	$	8.3		$	38.4		$	(38.6	)	$	8.1	$	5.2		$	51.7		$	(51.7	)	$	5.2

	Fiscal Six Months Ended June 30, 2012											Fiscal Six Months Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,087.2		$	693.3		$	(12.8	)	$	1,767.7	$	1,174.9		$	660.3		$	(9.5	)	$	1,825.7
Licensing income		-			22.5			-			22.5		0.1			22.4			-			22.5
Other revenues		0.5			-			-			0.5		0.5			-			-			0.5
Total revenues		1,087.7			715.8			(12.8	)		1,790.7		1,175.5			682.7			(9.5	)		1,848.7
Cost of goods sold		711.1			417.5			(7.5	)		1,121.1		764.5			434.1			(3.7	)		1,194.9
Gross profit		376.6			298.3			(5.3	)		669.6		411.0			248.6			(5.8	)		653.8
Selling, general and administrative expenses		422.8			189.1			(4.2	)		607.7		447.9			105.4			(5.6	)		547.7
Operating (loss) income		(46.2	)		109.2			(1.1	)		61.9		(36.9	)		143.2			(0.2	)		106.1
Net interest expense (income) and financing costs		52.4			(0.9	)		-			51.5		60.6			(2.4	)		-			58.2
Equity in income of unconsolidated affiliate		-			1.3			-			1.3		-			2.0			-			2.0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(98.6	)		111.4			(1.1	)		11.7		(97.5	)		147.6			(0.2	)		49.9
(Benefit) provision for income taxes		(28.1	)		32.8			(0.4	)		4.3		(23.4	)		42.1			-			18.7
Equity in earnings of subsidiaries		78.3			-			(78.3	)		-		105.0			-			(105.0	)		-
Net income		7.8			78.6			(79.0	)		7.4		30.9			105.5			(105.2	)		31.2
Less: income attributable to noncontrolling interest		-			0.5			-			0.5		-			0.4			-			0.4
Income attributable to Jones	$	7.8		$	78.1		$	(79.0	)	$	6.9	$	30.9		$	105.1		$	(105.2	)	$	30.8

Condensed Consolidating Statements of Other Comprehensive Income

(In millions)

	Fiscal Quarter Ended June 30, 2012												Fiscal Quarter Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net income	$	8.3		$	38.7		$	(38.6	)	$	8.4		$	5.2		$	51.9		$	(51.7	)	$	5.4
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.2			0.2			(0.2	)		0.2			(0.1	)		(0.1	)		0.1			(0.1	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		-			-			-			-			0.2			0.2			(0.2	)		0.2
Foreign currency translation adjustments		(8.2	)		(8.2	)		8.2			(8.2	)		(4.6	)		(4.6	)		4.6			(4.6	)
Total other comprehensive income		(8.0	)		(8.0	)		8.0			(8.0	)		(4.5	)		(4.5	)		4.5			(4.5	)
Comprehensive income	$	0.3		$	30.7		$	(30.6	)	$	0.4		$	0.7		$	47.4		$	(47.2	)	$	0.9

	Fiscal Six Months Ended June 30, 2012									Fiscal Six Months Ended July 2, 2011
	Issuers		Others		Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net income	$	7.8	$	78.6	$	(79.0	)	$	7.4	$	30.9		$	105.5		$	(105.2	)	$	31.2
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.1		0.1		(0.1	)		0.1		(0.4	)		(0.4	)		0.4			(0.4	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		0.1		0.1		(0.1	)		0.1		0.3			0.3			(0.3	)		0.3
Foreign currency translation adjustments		1.1		1.1		(1.1	)		1.1		(1.4	)		(1.4	)		1.4			(1.4	)
Total other comprehensive income		1.3		1.3		(1.3	)		1.3		(1.5	)		(1.5	)		1.5			(1.5	)
Comprehensive income	$	9.1	$	79.9	$	(80.3	)	$	8.7	$	29.4		$	104.0		$	(103.7	)	$	29.7

Condensed Consolidating Statements of Cash Flows

(In millions)

	Fiscal Six Months Ended June 30, 2012												Fiscal Six Months Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash provided by operating activities	$	58.7		$	71.2		$	(5.9	)	$	124.0		$	21.3		$	57.8		$	(13.5	)	$	65.6
Cash flows from investing activities:
Capital expenditures		(9.0	)		(29.2	)		-			(38.2	)		(24.5	)		(25.0	)		-			(49.5	)
Contingent consideration paid related to investment in GRI		-			(3.5	)		-			(3.5	)		-			-			-			-
Acquisition of KG Group Holdings Limited, net of cash acquired		-			-			-			-			(150.0	)		6.9			-			(143.1	)
Other		-			(0.1	)		-			(0.1	)		-			-			-			-
Net cash used in investing activities		(9.0	)		(32.8	)		-			(41.8	)		(174.5	)		(18.1	)		-			(192.6	)
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		(0.3	)		-			-			(0.3	)		(2.9	)		-			-			(2.9	)
Repayment of acquired debt of KG Group Holdings Limited		-			-			-			-			(174.1	)		-			-			(174.1	)
Dividends paid		(7.9	)		(5.9	)		5.9			(7.9	)		(8.5	)		(13.5	)		13.5			(8.5	)
Repurchase of common shares		(29.0	)		-			-			(29.0	)		(28.0	)		-			-			(28.0	)
Payments of acquisition consideration payable		-			(7.5	)		-			(7.5	)		-			(6.2	)		-			(6.2	)
Other items, net		2.3			(1.3	)		-			1.0			1.5			(1.2	)		-			0.3
Net cash (used in) provided by financing activities		(34.9	)		(14.7	)		5.9			(43.7	)		81.2			(20.9	)		13.5			73.8
Effect of exchange rates on cash		-			(0.2	)		-			(0.2	)		-			(1.2	)		-			(1.2	)
Net increase (decrease) in cash and cash equivalents		14.8			23.5			-			38.3			(72.0	)		17.6			-			(54.4	)
Cash and cash equivalents, beginning		195.8			43.0			-			238.8			163.0			37.8			-			200.8
Cash and cash equivalents, ending	$	210.6		$	66.5		$	-		$	277.1		$	91.0		$	55.4		$	-		$	146.4

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SUPPLEMENTAL CONDENSED FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2012

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, statements of consolidated comprehensive income 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)

	June 30, 2012												December 31, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
ASSETS
Current assets:
Cash and cash equivalents	$	210.6		$	66.5		$	-		$	277.1		$	195.8		$	43.0		$	-		$	238.8
Accounts receivable		173.0			154.2			-			327.2			182.9			156.7			-			339.6
Inventories		258.7			210.1			(1.3	)		467.5			270.5			220.9			(0.3	)		491.1
Prepaid and refundable income taxes		16.8			3.9			(19.3	)		1.4			5.3			4.9			1.7			11.9
Deferred taxes		14.5			13.2			-			27.7			13.2			13.2			-			26.4
Prepaid expenses and other current assets		37.5			21.6			-			59.1			21.5			26.2			-			47.7
Total current assets		711.1			469.5			(20.6	)		1,160.0			689.2			464.9			1.4			1,155.5
Property, plant and equipment		60.0			211.4			-			271.4			64.9			206.5			-			271.4
Due from affiliates		-			288.3			(288.3	)		-			-			1,604.4			(1,604.4	)		-
Goodwill		46.7			209.6			-			256.3			46.7			208.6			-			255.3
Other intangibles		6.4			885.4			-			891.8			6.9			890.5			-			897.4
Deferred taxes		92.3			-			(92.3	)		-			80.6			-			(80.6	)		-
Investments in and loan to subsidiaries		1,713.9			38.4			(1,713.9	)		38.4			3,047.9			35.6			(3,047.9	)		35.6
Other assets		70.2			20.8			-			91.0			79.3			20.8			-			100.1
Total assets	$	2,700.6		$	2,123.4		$	(2,115.1	)	$	2,708.9		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations	$	-		$	2.1		$	-		$	2.1		$	-		$	2.0		$	-		$	2.0
Current portion of acquisition consideration payable		216.7			-			-			216.7			192.7			1.4			-			194.1
Accounts payable		130.2			102.5			-			232.7			139.7			96.5			-			236.2
Income taxes payable		16.6			27.6			(39.6	)		4.6			11.2			8.3			(18.1	)		1.4
Accrued expenses and other current liabilities		71.3			63.8			-			135.1			79.0			67.3			-			146.3
Total current liabilities		434.8			196.0			(39.6	)		591.2			422.6			175.5			(18.1	)		580.0
Long-term debt		834.1			0.1			-			834.2			831.3			0.1			-			831.4
Obligations under capital leases		-			22.3			-			22.3			-			23.3			-			23.3
Income taxes payable		0.5			-			-			0.5			6.7			-			-			6.7
Deferred taxes		-			167.9			(98.3	)		69.6			-			160.0			(86.6	)		73.4
Acquisition consideration payable		4.8			-			-			4.8			17.7			-			-			17.7
Due to affiliates		288.3			-			(288.3	)		-			1,604.4			-			(1,604.4	)		-
Other		87.8			24.6			-			112.4			67.7			25.7			-			93.4
Total liabilities		1,650.3			410.9			(426.2	)		1,635.0			2,950.4			384.6			(1,709.1	)		1,625.9
Equity:
Common stock and additional paid-in capital		522.1			947.8			(947.8	)		522.1			522.6			2,352.4			(2,352.4	)		522.6
Retained earnings		556.5			771.7			(748.4	)		579.8			572.1			704.3			(680.2	)		596.2
Accumulated other comprehensive (loss) income		(28.3	)		(7.3	)		7.3			(28.3	)		(29.6	)		(10.2	)		10.2			(29.6	)
Total Jones stockholders' equity		1,050.3			1,712.2			(1,688.9	)		1,073.6			1,065.1			3,046.5			(3,022.4	)		1,089.2
Noncontrolling interest		-			0.3			-			0.3			-			0.2			-			0.2
Total equity		1,050.3			1,712.5			(1,688.9	)		1,073.9			1,065.1			3,046.7			(3,022.4	)		1,089.4
Total liabilities and equity	$	2,700.6		$	2,123.4		$	(2,115.1	)	$	2,708.9		$	4,015.5		$	3,431.3		$	(4,731.5	)	$	2,715.3

Condensed Consolidating Statements of Operations

(In millions)

	Fiscal Quarter Ended June 30, 2012											Fiscal Quarter Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	516.6		$	333.7		$	(6.0	)	$	844.3	$	557.3		$	324.1		$	(4.7	)	$	876.7
Licensing income		-			10.2			-			10.2		0.1			10.3			-			10.4
Other revenues		0.3			-			-			0.3		0.3			-			-			0.3
Total revenues		516.9			343.9			(6.0	)		854.8		557.7			334.4			(4.7	)		887.4
Cost of goods sold		333.8			198.6			(3.8	)		528.6		356.3			210.2			(2.2	)		564.3
Gross profit		183.1			145.3			(2.2	)		326.2		201.4			124.2			(2.5	)		323.1
Selling, general and administrative expenses		216.2			90.3			(2.0	)		304.5		227.2			53.3			(2.3	)		278.2
Operating (loss) income		(33.1	)		55.0			(0.2	)		21.7		(25.8	)		70.9			(0.2	)		44.9
Net interest expense (income) and financing costs		9.2			(0.4	)		-			8.8		38.0			(1.0	)		-			37.0
Equity in income of unconsolidated affiliate		-			0.4			-			0.4		-			0.7			-			0.7
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(42.3	)		55.8			(0.2	)		13.3		(63.8	)		72.6			(0.2	)		8.6
(Benefit) provision for income taxes		(12.2	)		17.1			-			4.9		(17.5	)		20.7			-			3.2
Equity in earnings of subsidiaries		38.4			-			(38.4	)		-		51.5			-			(51.5	)		-
Net income		8.3			38.7			(38.6	)		8.4		5.2			51.9			(51.7	)		5.4
Less: income attributable to noncontrolling interest		-			0.3			-			0.3		-			0.2			-			0.2
Income attributable to Jones	$	8.3		$	38.4		$	(38.6	)	$	8.1	$	5.2		$	51.7		$	(51.7	)	$	5.2

	Fiscal Six Months Ended June 30, 2012											Fiscal Six Months Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net sales	$	1,087.2		$	693.3		$	(12.8	)	$	1,767.7	$	1,174.9		$	660.3		$	(9.5	)	$	1,825.7
Licensing income		-			22.5			-			22.5		0.1			22.4			-			22.5
Other revenues		0.5			-			-			0.5		0.5			-			-			0.5
Total revenues		1,087.7			715.8			(12.8	)		1,790.7		1,175.5			682.7			(9.5	)		1,848.7
Cost of goods sold		711.1			417.5			(7.5	)		1,121.1		764.5			434.1			(3.7	)		1,194.9
Gross profit		376.6			298.3			(5.3	)		669.6		411.0			248.6			(5.8	)		653.8
Selling, general and administrative expenses		422.8			189.1			(4.2	)		607.7		447.9			105.4			(5.6	)		547.7
Operating (loss) income		(46.2	)		109.2			(1.1	)		61.9		(36.9	)		143.2			(0.2	)		106.1
Net interest expense (income) and financing costs		52.4			(0.9	)		-			51.5		60.6			(2.4	)		-			58.2
Equity in income of unconsolidated affiliate		-			1.3			-			1.3		-			2.0			-			2.0
(Loss) income before (benefit) provision for income taxes and equity in earnings of subsidiaries		(98.6	)		111.4			(1.1	)		11.7		(97.5	)		147.6			(0.2	)		49.9
(Benefit) provision for income taxes		(28.1	)		32.8			(0.4	)		4.3		(23.4	)		42.1			-			18.7
Equity in earnings of subsidiaries		78.3			-			(78.3	)		-		105.0			-			(105.0	)		-
Net income		7.8			78.6			(79.0	)		7.4		30.9			105.5			(105.2	)		31.2
Less: income attributable to noncontrolling interest		-			0.5			-			0.5		-			0.4			-			0.4
Income attributable to Jones	$	7.8		$	78.1		$	(79.0	)	$	6.9	$	30.9		$	105.1		$	(105.2	)	$	30.8

Condensed Consolidating Statements of Other Comprehensive Income

(In millions)

	Fiscal Quarter Ended June 30, 2012												Fiscal Quarter Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net income	$	8.3		$	38.7		$	(38.6	)	$	8.4		$	5.2		$	51.9		$	(51.7	)	$	5.4
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.2			0.2			(0.2	)		0.2			(0.1	)		(0.1	)		0.1			(0.1	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		-			-			-			-			0.2			0.2			(0.2	)		0.2
Foreign currency translation adjustments		(8.2	)		(8.2	)		8.2			(8.2	)		(4.6	)		(4.6	)		4.6			(4.6	)
Total other comprehensive income		(8.0	)		(8.0	)		8.0			(8.0	)		(4.5	)		(4.5	)		4.5			(4.5	)
Comprehensive income	$	0.3		$	30.7		$	(30.6	)	$	0.4		$	0.7		$	47.4		$	(47.2	)	$	0.9

	Fiscal Six Months Ended June 30, 2012									Fiscal Six Months Ended July 2, 2011
	Issuers		Others		Elim- inations			Cons- olidated		Issuers			Others			Elim- inations			Cons- olidated
Net income	$	7.8	$	78.6	$	(79.0	)	$	7.4	$	30.9		$	105.5		$	(105.2	)	$	31.2
Other comprehensive income:
Change in fair value of cash flow hedges, net of tax		0.1		0.1		(0.1	)		0.1		(0.4	)		(0.4	)		0.4			(0.4	)
Reclassification adjustment for hedge gains and losses included in net income, net of tax		0.1		0.1		(0.1	)		0.1		0.3			0.3			(0.3	)		0.3
Foreign currency translation adjustments		1.1		1.1		(1.1	)		1.1		(1.4	)		(1.4	)		1.4			(1.4	)
Total other comprehensive income		1.3		1.3		(1.3	)		1.3		(1.5	)		(1.5	)		1.5			(1.5	)
Comprehensive income	$	9.1	$	79.9	$	(80.3	)	$	8.7	$	29.4		$	104.0		$	(103.7	)	$	29.7

Condensed Consolidating Statements of Cash Flows

(In millions)

	Fiscal Six Months Ended June 30, 2012												Fiscal Six Months Ended July 2, 2011
	Issuers			Others			Elim- inations			Cons- olidated			Issuers			Others			Elim- inations			Cons- olidated
Net cash provided by operating activities	$	58.7		$	71.2		$	(5.9	)	$	124.0		$	21.3		$	57.8		$	(13.5	)	$	65.6
Cash flows from investing activities:
Capital expenditures		(9.0	)		(29.2	)		-			(38.2	)		(24.5	)		(25.0	)		-			(49.5	)
Contingent consideration paid related to investment in GRI		-			(3.5	)		-			(3.5	)		-			-			-			-
Acquisition of KG Group Holdings Limited, net of cash acquired		-			-			-			-			(150.0	)		6.9			-			(143.1	)
Other		-			(0.1	)		-			(0.1	)		-			-			-			-
Net cash used in investing activities		(9.0	)		(32.8	)		-			(41.8	)		(174.5	)		(18.1	)		-			(192.6	)
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		(0.3	)		-			-			(0.3	)		(2.9	)		-			-			(2.9	)
Repayment of acquired debt of KG Group Holdings Limited		-			-			-			-			(174.1	)		-			-			(174.1	)
Dividends paid		(7.9	)		(5.9	)		5.9			(7.9	)		(8.5	)		(13.5	)		13.5			(8.5	)
Repurchase of common shares		(29.0	)		-			-			(29.0	)		(28.0	)		-			-			(28.0	)
Payments of acquisition consideration payable		-			(7.5	)		-			(7.5	)		-			(6.2	)		-			(6.2	)
Other items, net		2.3			(1.3	)		-			1.0			1.5			(1.2	)		-			0.3
Net cash (used in) provided by financing activities		(34.9	)		(14.7	)		5.9			(43.7	)		81.2			(20.9	)		13.5			73.8
Effect of exchange rates on cash		-			(0.2	)		-			(0.2	)		-			(1.2	)		-			(1.2	)
Net increase (decrease) in cash and cash equivalents		14.8			23.5			-			38.3			(72.0	)		17.6			-			(54.4	)
Cash and cash equivalents, beginning		195.8			43.0			-			238.8			163.0			37.8			-			200.8
Cash and cash equivalents, ending	$	210.6		$	66.5		$	-		$	277.1		$	91.0		$	55.4		$	-		$	146.4

XML

Consolidated Statements of Changes in Equity (USD $) In Millions	Total USD ($)	Common Stock [Member] USD ($)	Additional Paid-in Capital [Member] USD ($)	Retained Earnings [Member] USD ($)	Accumulated Other Comprehensive Income [Member] USD ($)	Noncontrolling Interest [Member] USD ($)	Capital Units [Member]
Balance at Dec. 31, 2010	$ 1,138.3	$ 0.9	$ 541.9	$ 603.8	$ (8.4)	$ 0.1
Balance (in shares) at Dec. 31, 2010							86.4
Comprehensive income	29.7	0	0	30.8	(1.5)	0.4
Issuance of restricted stock to employees, net of forfeitures (in shares)							1.7
Amortization of restricted stock	11.1	0	11.1	0	0	0
Distributions to noncontrolling interest	(0.3)	0	0	0	0	(0.3)
Tax effects from vesting of restricted stock	0.9	0	0.9	0	0	0
Tax effects of expired employee stock options	(1.2)	0	(1.2)	0	0	0
Repurchase of common shares	(28.0)	0	(13.3)	(14.7)	0	0
Repurchase of common shares (in shares)							(2.2)
Dividends on common stock ($0.10 per share)	(8.7)	0	0	(8.7)	0	0
Other	0.1	0	0	0.1	0	0
Balance at Jul. 02, 2011	1,141.9	0.9	539.4	611.3	(9.9)	0.2
Balance (in shares) at Jul. 02, 2011							85.9
Balance at Dec. 31, 2011	1,089.4	0.8	521.8	596.2	(29.6)	0.2
Balance (in shares) at Dec. 31, 2011							81.0
Comprehensive income	8.7	0	0	6.9	1.3	0.5
Issuance of restricted stock to employees, net of forfeitures (in shares)							2.2
Amortization of restricted stock	13.3	0	13.3	0	0	0
Distributions to noncontrolling interest	(0.4)	0	0	0	0	(0.4)
Tax effects from vesting of restricted stock	1.5	0	1.5	0	0	0
Tax effects of expired employee stock options	(1.5)	0	(1.5)	0	0	0
Repurchase of common shares	(29.2)	0	(13.8)	(15.4)	0	0
Repurchase of common shares (in shares)							(3.0)
Dividends on common stock ($0.10 per share)	(8.1)	0	0	(8.1)	0	0
Other	0.2	0	0	0.2	0	0
Balance at Jun. 30, 2012	$ 1,073.9	$ 0.8	$ 521.3	$ 579.8	$ (28.3)	$ 0.3
Balance (in shares) at Jun. 30, 2012							80.2

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jul. 02, 2011
ASSETS
Property, plant and equipment, accumulated depreciation and amortization	$ 590.2	$ 605.4	$ 579.6
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	80.2	81.0	85.9

XML

FAIR VALUES

6 Months Ended

Jun. 30, 2012

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); 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 or had 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, which have fair values calculated by comparing foreign exchange forward rates to the contract rates discounted at our incremental borrowing rate,   which fall within Level 2 of the fair value hierarchy;

· interest rate swap and cap contracts, which have or had fair values calculated by comparing current yield curves and LIBOR rates to the stated contract rates adjusted for estimated risk of counterparty nonperformance,  which fall within Level 2 of the fair value hierarchy;

· long-term debt that was hedged by interest rate swaps as a fair-value hedge, calculated by comparing current yield curves and LIBOR rates to the stated contract rates of the associated interest rate swaps, which falls within Level 2 of the fair value hierarchy; and

· consideration liabilities recorded as a result of the acquisition of Moda Nicola International, LLC ("Moda") and Stuart Weitzman Holdings, LLC ("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 2, 2011, December 31, 2011 and June 30, 2012.

(In millions) Description	Classification	Total Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobserv-able inputs (Level 3)
July 2, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	9.5	$	9.5	$	-	$	-
British Pound - Euro forward contracts	Prepaid expenses and 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
December 31, 2011:
Rabbi Trust assets	Prepaid expenses and other current assets	$	7.5	$	7.5	$	-	$	-
Interest rate swaps	Other long-term assets		5.5		-		5.5		-
Interest rate cap	Other long-term assets		0.2		-		0.2		-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Total assets		$	13.3	$	7.5	$	5.8	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	7.5	$	7.5	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		0.2		0.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		192.7		-		-		192.7
5.125% Senior Notes  due 2014	Long-term debt		263.0		-		263.0		-
Acquisition consideration	Acquisition consideration payable, net of current portion		17.7		-		-		17.7
Total liabilities		$	481.1	$	7.7	$	263.0	$	210.4
June 30, 2012:
Rabbi Trust assets	Prepaid expenses and other current assets	$	8.0	$	8.0	$	-	$	-
British Pound- U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Canadian Dollar - U.S. Dollar forward contracts	Prepaid expenses and other current assets		0.1		-		0.1		-
Total assets		$	8.2	$	8.0	$	0.2	$	-
Rabbi Trust liabilities	Accrued employee compensation and benefits	$	8.0	$	8.0	$	-	$	-
Deferred director fees	Accrued expenses and other current liabilities		0.2		0.2		-		-
Acquisition consideration	Current portion of acquisition consideration payable		216.7		-		-		216.7
Acquisition consideration	Acquisition consideration payable, net of current portion		4.8		-		-		4.8
Total liabilities		$	229.7	$	8.2	$	-	$	221.5

The following table presents the changes in Level 3 contingent consideration liability for the fiscal six months ended July 2, 2011 and June 30, 2012.

(In millions)	Acquisition of Moda			Acquisition of SWH			Total Acquisition Consideration Payable
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
Beginning balance, January 1, 2012	$	14.8		$	195.6		$	210.4
Payments		(3.5	)		(4.8	)		(8.3	)
Total adjustments included in earnings		(4.1	)		23.5			19.4
Balance, June 30, 2012	$	7.2		$	214.3		$	221.5

The following table represents quantitative information about the Level 3 contingent consideration liability measurements at June 30, 2012.

(In millions)	Fair Value at June 30, 2012		Valuation technique	Unobservable inputs	Range (Weighted Average)
Acquisition of Moda	$	7.2	Discounted projection of financial results	Net sales growth Gross margin multiplier Discount rate	-32% - +10% (-3.0%) 1.63 - 1.70 (1.68) 11.7%
Acquisition of SWH	$	214.3	Discounted projection of financial results and future cash flow	EBITDA (1) growth EBITDA (1) multiplier Discount rate	-18% - +22% (2.1%) 8.0 - 9.0 (8.3) 11.7%

(1) - Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in the acquisition agreement.

The valuation processes for the contingent consideration liabilities are based on the associated acquisition agreements.  Our inputs include probability-weighted projections of financial results and cash flows for the acquired business and a discount rate based on our weighted average cost of capital.  We internally calculate the estimated liability using projected financial information provided by the operating divisions.

The significant unobservable inputs used in the fair value measurement of the Moda contingent consideration liability are net sales growth, a gross margin multiplier (as defined in the acquisition agreement) and a discount factor.  An increase in the net sales or gross margin multiplier inputs would increase the fair value of the liability, while an increase in the discount rate would decrease the fair value of the liability.  There is no interrelationship between the unobservable inputs.  Changes in the fair value of the Moda contingent consideration liability are reported as adjustments to SG&A expenses in the domestic wholesale sportswear segment.

The significant unobservable inputs used in the fair value measurement of the SWH contingent consideration liability are probability-weighted projected EBITDA growth, the EBITDA multiplier (as defined in the acquisition agreement) and a discount rate.  An increase to the EBITDA growth or multiplier would increase the fair value of the liability, while an increase in the discount rate would decrease the fair value of the liability.  The EBITDA multiplier is based on the achieved level of EBITDA.  There is no interrelationship between the discount rate to the other unobservable inputs.  Changes in the fair value of the contingent consideration liability for SWH are reported as adjustments to interest expense.

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 2, 2011 and June 30, 2012, 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 unobserv-able inputs (Level 3)		Total losses recorded for the fiscal six months
At July 2, 2011:
Property and equipment	$	-	$	-	$	-	$	-	$	2.5
Transportation equipment		0.6		0.6		-		-		0.4
At June 30, 2012:
Property and equipment		-		-		-		-		0.4

During the fiscal six months ended July 2, 2011 and June 30, 2012, property and equipment utilized in our retail operations with a carrying amount of $2.5 million and $0.4 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 quarter 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 June 30, 2012, we had outstanding foreign exchange contracts to exchange Canadian Dollars for a total notional value of US$10.2 million at a weighted-average exchange rate of 1.00 maturing through November 2012 and to exchange £3 million for U.S. Dollars at an exchange rate of 1.61 maturing in December 2012.

At June 30, 2012, July 2, 2011 and December 31, 2011, 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 estimated fair values of other financial instruments subject to fair value disclosures were valued using market comparable inputs.  These inputs include broker quotes, quoted market prices, interest rates and exchange rates for the same or similar instruments.  The fair value and related carrying amounts for items not disclosed elsewhere are as follows:

(In millions)	June 30, 2012						July 2, 2011				December 31, 2011
	Fair Value Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Senior Notes, including hedged items recorded at fair value		1	$	824.4	$	732.5	$	815.3	$	740.5	$	821.7	$	692.6
Other long-term debt, including current portion		2		9.9		8.7		10.3		9.1		9.8		8.2
Note receivable from GRI		2		-		-		10.0		10.0		10.0		10.0
Other notes receivable		2		2.8		1.7		-		-		-		-

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.

XML

Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2012	Jul. 26, 2012	Jul. 02, 2011
Document and Entity Information [Abstract]
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			$ 921,543,946
Entity Common Stock, Shares Outstanding		80,284,435
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012

XML

CREDIT FACILITIES

6 Months Ended

Jun. 30, 2012

Line Of Credit Facility [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.  The terms and conditions of our Credit Facility provide for, among other things: (1) a $350 million U.S. commitment which may be drawn by the U.S. borrowers as revolving loans in U.S. Dollars or letters of credit in Canadian Dollars, U.S. Dollars, or an "LC Alternative Currency" (namely Euros, sterling, or any other currency acceptable to the lenders); and (2) 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 Canadian Dollars, U.S. Dollars, or an LC Alternative Currency.  Up to the entire amount of the Credit Facility is available for cash borrowings, with an overall sublimit of up to $350 million for all letters of credit.  All of the overall $350 million sublimit may be used for trade letters of credit; and within that overall sublimit, there are additional sublimits, including (but not limited to) $50 million for standby letters of credit and $150 million for letters of credit under the U.S. commitment denominated in an LC Alternative Currency.

        Borrowings under the Credit Facility may be used to refinance certain 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 June 30, 2012, we had no cash borrowings and $16.3 million of letters of credit outstanding, and our remaining availability was $381.6 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, 2012 and is renewable on an annual basis, under which no cash borrowings and $1.1 million in letters of credit were outstanding at June 30, 2012.  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 2013 and is renewable on an annual basis, under which no amounts were outstanding at June 30, 2012.

XML

Consolidated Statements of Operations (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Statement of Operations
Net sales	$ 844.3	$ 876.7	$ 1,767.7	$ 1,825.7
Licensing income	10.2	10.4	22.5	22.5
Other revenues	0.3	0.3	0.5	0.5
Total revenues	854.8	887.4	1,790.7	1,848.7
Cost of goods sold	528.6	564.3	1,121.1	1,194.9
Gross profit	326.2	323.1	669.6	653.8
Selling, general and administrative expenses	304.5	278.2	607.7	547.7
Operating income	21.7	44.9	61.9	106.1
Interest income	0.2	0.3	0.4	0.4
Interest expense and financing costs	9.0	37.3	51.9	58.6
Equity in income of unconsolidated affiliate	0.4	0.7	1.3	2.0
Income before provision for income taxes	13.3	8.6	11.7	49.9
Provision for income taxes	4.9	3.2	4.3	18.7
Net income	8.4	5.4	7.4	31.2
Less: income attributable to noncontrolling interest	0.3	0.2	0.5	0.4
Income attributable to Jones	$ 8.1	$ 5.2	$ 6.9	$ 30.8
Earnings Per Common Share Attributable To Jones
Basic	$ 0.11	$ 0.06	$ 0.09	$ 0.37
Diluted	$ 0.10	$ 0.06	$ 0.09	$ 0.36
Weighted average shares outstanding
Basic	75.2	81.7	75.7	81.9
Diluted	76.0	83.2	77.5	83.3
Dividends declared per share	$ 0.05	$ 0.05	$ 0.10	$ 0.10

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ACQUISITIONS

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITIONS

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 following the transaction.  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 is 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)		FairValue
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 pro forma total revenues and results of operations for the fiscal quarter ended July 2, 2011 as if 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 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 Kurt Geiger.  Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on January 1, 2010, nor are they indicative of the future operating results of the combined companies.

(In millions, except per share amounts)	Fiscal Quarter Ended July 2, 2011		Fiscal Six Months Ended July 2, 2011
Total revenues	$	942.6	$	1,978.9
Net income		8.9		28.1
Earnings per share attributable to Jones
Basic	$	0.10	$	0.33
Diluted		0.10		0.32

The pro forma earnings for the fiscal quarter and six months ended July 2, 2011 were adjusted to exclude $4.7 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.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE [Text Block]

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
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Net income	$	8.4	$	5.4	$	7.4	$	31.2
Less: income attributable to noncontrolling interest		0.3		0.2		0.5		0.4
Income attributable to Jones		8.1		5.2		6.9		30.8
Less: income allocated to participating securities		0.2		0.2		-		0.8
Income available to common stockholders of Jones	$	7.9	$	5.0	$	6.9	$	30.0
Weighted-average shares outstanding - basic		75.2		81.7		75.7		81.9
Effect of dilutive employee restricted stock		0.8		1.5		1.8		1.4
Weighted-average shares outstanding - diluted		76.0		83.2		77.5		83.3
Earnings per common share attributable to Jones
Basic	$	0.11	$	0.06	$	0.09	$	0.37
Diluted		0.10		0.06		0.09		0.36

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

Segment Reporting [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.  Our operations are 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 and income by reportable segment for the fiscal quarters and six months ended June 30, 2012 and July 2, 2011.  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 & Access-ories			Domestic Retail			International Wholesale		International Retail			Licensing, Other & Eliminations			Consolidated
For the fiscal quarter ended June 30, 2012
Revenues	$	174.8	$	151.0	$	195.5		$	150.6		$	75.4	$	97.3		$	10.2		$	854.8
Segment income (loss)	$	8.9	$	7.0	$	(1.6	)	$	(3.0	)	$	9.7	$	3.7		$	(3.0	)		21.7
Net interest expense																				(8.8	)
Equity in income of unconsolidated affiliate																				0.4
Income before provision for income taxes																			$	13.3
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 unconsolidated affiliate																				0.7
Income before provision for income taxes																			$	8.6
For the fiscal six months ended June 30, 2012
Revenues	$	408.4	$	335.8	$	421.3		$	278.7		$	148.8	$	175.2		$	22.5		$	1,790.7
Segment income (loss)	$	32.2	$	23.6	$	16.7		$	(25.4	)	$	19.6	$	(1.3	)	$	(3.5	)		61.9
Net interest expense																				(51.5	)
Equity in income of unconsolidated affiliate																				1.3
Income before provision for income taxes																			$	11.7
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 unconsolidated affiliate																				2.0
Income before provision for income taxes																			$	49.9

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LONG-TERM DEBT

6 Months Ended

Jun. 30, 2012

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 the Credit Facility.  In connection with the issuance of the 2019 Notes, we had three outstanding 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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ACCRUED RESTRUCTURING COSTS

6 Months Ended

Jun. 30, 2012

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 $0.1 million and $0.2 million of lease termination costs in the fiscal six months ended July 2, 2011 and June 30, 2012, respectively.  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, 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
Balance, January 1, 2012	$	-		$	1.5		$	1.5
Additions		-			0.2			0.2
Payments and reductions		-			(0.2	)		(0.2	)
Balance, June 30, 2012	$	-		$	1.5		$	1.5

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.  The net accrual of $1.5 million at June 30, 2012 is reported as $0.4 million of accrued expenses and other current liabilities and $1.1 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.  We also recorded $7.4 million of lease obligation costs relating to the warehouse.  These costs are reported as SG&A expenses in the domestic wholesale jeanswear segment.  The closing was substantially completed by the end of July 2010.

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

(In millions)	Lease obligations
Balance, January 1, 2011	$	4.1
Additions		0.1
Payments and reductions		(2.3	)
Balance, July 2, 2011	$	1.9
Balance, January 1, 2012	$	0.9
Payments and reductions		(0.1	)
Balance, June 30, 2012	$	0.8

The net accruals of $1.9 million at July 2, 2011 and $0.8 million at June 30, 2012 are reported as accrued expenses and other current liabilities.

Retail Stores

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 benefits.  During the first fiscal six months of 2011 and 2012, we closed 61 and 70 locations, respectively, and we anticipate closing additional locations in 2012.  Total termination benefits and associated employee costs are expected to be $11.1 million for approximately 2,167 employees, including both store employees and administrative support personnel.  We recorded $0.5 million and $1.9 million of employee termination costs in the fiscal six months ended July 2, 2011 and June 30, 2012, respectively.  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 $2.5 million and $0.4 million of impairment losses during the fiscal six months ended July 2, 2011 and June 30, 2012, 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.

The details of the retail store restructuring accruals are as follows:

(In millions)	One-time termination benefits
Balance, January 1, 2011	$	2.2
Additions		0.5
Payments and reductions		(1.9	)
Balance, July 2, 2011	$	0.8
Balance, January 1, 2012	$	1.3
Additions		1.9
Payments and reductions		(1.3	)
Balance, June 30, 2012	$	1.9

The net accrual of $0.8 million at July 2, 2011 is reported as accrued expenses and other current liabilities.  The net accrual of $1.9 million at June 30, 2012 is reported as $1.7 million of accrued expenses and other current liabilities and $0.2 million of other noncurrent liabilities.

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EQUITY METHOD INVESTMENTS

6 Months Ended

Jun. 30, 2012

Equity Method Investments And Joint Ventures [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 were entitled to receive an additional cash payment equaling 60% of the amount of GRI's fiscal year 2011 net income that exceeded a certain threshold, and on June 21, 2012, we made a cash payment to them of $3.5 million in satisfaction of the obligation.  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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ACCOUNTS RECEIVABLE

6 Months Ended

Jun. 30, 2012

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

	June 30, 2012			July 2, 2011			December 31, 2011
(In millions)
Trade accounts receivable	$	352.6		$	409.2		$	367.9
Allowances for doubtful accounts, returns, discounts and co-op advertising		(25.4	)		(30.9	)		(28.3	)
	$	327.2		$	378.3		$	339.6

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 $17.1 million, $14.6 million and $19.7 million at June 30, 2012, July 2, 2011 and December 31, 2011, respectively.  Net revenues from GRI amounted to $29.4 million and $26.5 million for the fiscal six months ended June 30, 2012 and July 2, 2011, respectively.  On April 23, 2009, we converted $10.0 million of the outstanding GRI accounts receivable to a three-year interest-bearing convertible note.  This note was repaid on April 20, 2012.

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GOODWILL

6 Months Ended

Jun. 30, 2012

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

The following table presents, by segment and in total, the carrying amount of goodwill for the fiscal quarters ended July 2, 2011 and June 30, 2012.

(In millions)	Domestic Wholesale Sportswear		Domestic Wholesale Jeanswear			Domestic Wholesale Footwear & Accessories			Domestic Retail			International Wholesale			International Retail			Total
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
Balance, December 31, 2011
Goodwill	$	46.7	$	519.2		$	859.8		$	120.6		$	111.6		$	50.4		$	1,708.3
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill		46.7		-			46.6			-			111.6			50.4			255.3
Foreign currency translation effects		-		-			-			-			0.5			0.5			1.0
Balance, June 30, 2012
Goodwill		46.7		519.2			859.8			120.6			112.1			50.9			1,709.3
Accumulated impairment losses		-		(519.2	)		(813.2	)		(120.6	)		-			-			(1,453.0	)
Net goodwill	$	46.7	$	-		$	46.6		$	-		$	112.1		$	50.9		$	256.3

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PENSION PLANS (Tables)

6 Months Ended

Jun. 30, 2012

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012			July 2, 2011
Interest cost	$	0.6		$	0.7		$	1.2		$	1.3
Expected return on plan assets		(0.7	)		(0.7	)		(1.3	)		(1.3	)
Amortization of net loss		0.6			0.4			1.1			0.9
Net periodic benefit cost	$	0.5		$	0.4		$	1.0		$	0.9

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PENSION PLANS (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 0.6	$ 0.7	$ 1.2	$ 1.3
Expected return on plan assets	(0.7)	(0.7)	(1.3)	(1.3)
Amortization of net loss	0.6	0.4	1.1	0.9
Net periodic benefit cost	0.5	0.4	1.0	0.9
Employer contribution to defined benefit pension plans			1.1
Anticipated employer contributions in fiscal year	$ 6.5		$ 6.5

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STATEMENT OF CASH FLOWS

6 Months Ended

Jun. 30, 2012

Supplemental disclosures of cash flow information:

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS

Fiscal Six Months Ended	June 30, 2012		July 2, 2011
(In millions)
Supplemental disclosures of cash flow information:
Cash paid (received) during the period for:
Interest	$	26.0	$	21.0
Net income tax payments (refunds)		1.1		(7.4	)
Supplemental disclosures of non-cash investing and financing activities:
Restricted stock issued to employees		20.8		26.2
Note payable and deferred compensation recorded related to acquisition of Kurt Geiger		-		10.2

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share Basic And Diluted Table [Text Block]

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
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Net income	$	8.4	$	5.4	$	7.4	$	31.2
Less: income attributable to noncontrolling interest		0.3		0.2		0.5		0.4
Income attributable to Jones		8.1		5.2		6.9		30.8
Less: income allocated to participating securities		0.2		0.2		-		0.8
Income available to common stockholders of Jones	$	7.9	$	5.0	$	6.9	$	30.0
Weighted-average shares outstanding - basic		75.2		81.7		75.7		81.9
Effect of dilutive employee restricted stock		0.8		1.5		1.8		1.4
Weighted-average shares outstanding - diluted		76.0		83.2		77.5		83.3
Earnings per common share attributable to Jones
Basic	$	0.11	$	0.06	$	0.09	$	0.37
Diluted		0.10		0.06		0.09		0.36

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DERIVATIVES, Part II (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011
Interest Rate Swap Contracts [Member] | Designated as Hedging Instrument [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax (Loss) due to Ineffectiveness Recognized in Income	$ (1.3)	$ (1.2)
Interest Rate Cap Contract [Member] | Not Designated as Hedging Instrument [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax Gain (Loss) Recognized in Income	(0.2)	(0.7)
Canadian Dollar - U. S. Dollar forward contracts [Member] | Designated as Hedging Instrument [Member] | Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income	0.2	(0.6)
Amount of Pretax (Loss) Reclassified from Other Comprehensive Income into Income	(0.1)	(0.4)
British Pound - Euro forward contracts [Member] | Not Designated as Hedging Instrument [Member] | Selling, general and administrative expenses [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Pretax Gain (Loss) Recognized in Income	$ 0	$ 0.1

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ACCOUNTS RECEIVABLE (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Dec. 31, 2011	Apr. 23, 2009
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 352.6	$ 409.2	$ 367.9
Allowances for doubtful accounts, returns, discounts and co-op advertising	(25.4)	(30.9)	(28.3)
Trade accounts receivable, net	327.2	378.3	339.6
Ownership interest in GRI (in hundredths)	25.00%
Accounts receivable amounts due from GRI	17.1	14.6	19.7
Net revenues from GRI	29.4	26.5
Outstanding GRI accounts receivable converted to note				$ 10
Interest-bearing convertible note maturity range, end				three-year

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Consolidated Statements of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Statement of Comprehensive Income [Abstract]
Net income	$ 8.4	$ 5.4	$ 7.4	$ 31.2
Other comprehensive income (loss):
Change in fair value of cash flow hedges, net of $(0.1), $0.0, $(0.1) and $0.2 tax (provision) benefit	0.2	(0.1)	0.1	(0.4)
Reclassification adjustment for hedge gains and losses included in net income, net of $0.1, $0.0 and $0.1 tax benefit	0	0.2	0.1	0.3
Foreign currency translation adjustments	(8.2)	(4.6)	1.1	(1.4)
Total other comprehensive (loss) income	(8.0)	(4.5)	1.3	(1.5)
Comprehensive income	$ 0.4	$ 0.9	$ 8.7	$ 29.7

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2012

Organization Consolidation And Presentation Of Financial Statements [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, 2012.

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 June 30, 2012 and July 2, 2011 were $21.1 million and $21.9 million, respectively.  Distribution costs included in SG&A expenses for the fiscal six months ended June 30, 2012 and July 2, 2011 were $44.7 million and $47.0 million, respectively.

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ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

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)		FairValue
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

(In millions, except per share amounts)	Fiscal Quarter Ended July 2, 2011		Fiscal Six Months Ended July 2, 2011
Total revenues	$	942.6	$	1,978.9
Net income		8.9		28.1
Earnings per share attributable to Jones
Basic	$	0.10	$	0.33
Diluted		0.10		0.32

Pro Forma total revenues and results of operations

(In millions, except per share amounts)	Fiscal Quarter Ended July 2, 2011		Fiscal Six Months Ended July 2, 2011
Total revenues	$	942.6	$	1,978.9
Net income		8.9		28.1
Earnings per share attributable to Jones
Basic	$	0.10	$	0.33
Diluted		0.10		0.32

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EARNINGS PER SHARE (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Earnings Per Share [Abstract]
Net income	$ 8.4	$ 5.4	$ 7.4	$ 31.2
Less: income attributable to noncontrolling interest	0.3	0.2	0.5	0.4
Income attributable to Jones	8.1	5.2	6.9	30.8
Less: income allocated to participating securities	0.2	0.2	0	0.8
Income available to common stockholders of Jones	$ 7.9	$ 5.0	$ 6.9	$ 30.0
Weighted-average shares outstanding - basic	75.2	81.7	75.7	81.9
Effect of dilutive employee restricted stock	0.8	1.5	1.8	1.4
Weighted-average shares outstanding - diluted	76.0	83.2	77.5	83.3
Earnings per common share attributable to Jones
Basic	$ 0.11	$ 0.06	$ 0.09	$ 0.37
Diluted	$ 0.10	$ 0.06	$ 0.09	$ 0.36

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DERIVATIVES

6 Months Ended

Jun. 30, 2012

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 Cap

On December 14, 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 (which are reset on the 15^th 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 had an effective date of December 17, 2010 and a termination date of November 15, 2014, the date the 2014 Notes mature.  On June 8, 2012, we de-designated the hedging relationship between the swaps and the 2014 Notes and received $5.7 million upon termination of the swaps.  The related fair market valuation adjustment to the 2014 Notes is being amortized as a reduction of interest expense over the remaining life of the 2014 notes.

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 were required to make semiannual variable-rate payments to the counterparties calculated based on three-month LIBOR rates (which are reset on the 15^th 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 had an effective date of March 7, 2011 and a termination date of March 15, 2019, the date the 2019 Notes mature.  On August 3, 2011 we de-designated the hedging relationship between the swaps and the 2019 Notes and received $8.1 million upon termination of the swaps.  The related fair market valuation adjustment to the 2019 Notes will be amortized as a reduction of interest expense over the remaining life of the 2019 Notes.

On March 19, 2012, 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 were required to make semiannual variable-rate payments to the counterparties calculated based on one-month LIBOR rates (which were reset on the 15^th day of each calendar quarter) plus 5.195%, and the counterparties were obligated to make semiannual fixed-rate payments to us of 6.875%.  The swap transactions had an effective date of March 21, 2012 and a termination date of March 15, 2019, the date the 2019 Notes mature.  On May 31, 2012, we de-designated the hedging relationship between the swaps and the 2019 Notes and received $3.5 million upon termination of the swaps.  The related fair market valuation adjustment to the 2019 Notes is being amortized as a reduction of interest expense over the remaining life of the 2019 Notes.

We also have outstanding an interest rate cap that was used in conjunction with the interest rate swaps on the 2014 Notes to limit our floating rate exposure.  The cap limits our three-month LIBOR rate exposure to 5.0%.  The cap has a termination date of November 15, 2014.

The swap transactions were designated as hedges of the fair value of the related notes.  The fair values of the swaps were 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 were also recorded through interest expense.  As these changes in fair value did not exactly offset each other, the net effect on earnings represented 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 net (decreases) increases in interest expense related to the ineffectiveness of the swaps and the changes in the fair value of the cap as follows.

(In millions)	Fiscal Quarter Ended						Fiscal Six Months Ended
	June 30, 2012			July 2, 2011			June 30, 2012		July 2, 2011
Interest rate swaps	$	(0.2	)	$	(0.9	)	$	1.3	$	1.2
Interest rate cap		-			0.5			0.2		0.7
Net (decrease) increase in interest expense	$	(0.2	)	$	(0.4	)	$	1.5	$	1.9

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 rate at the reporting date.

We currently have outstanding forward contracts to exchange Canadian Dollars for U.S. Dollars.  These 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.

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 June 30, 2012 amounts, we estimate that any reclassifications from other comprehensive income to earnings within the next 12 months will not be material.

The notional amounts of our foreign exchange contracts outstanding at June 30, 2012, July 2, 2011 and December 31, 2011 are as follows.

(In millions)	Notional Amounts
	June 30, 2012		July 2, 2011		December 31, 2011
Canadian Dollar - U.S. Dollar forward exchange contracts	US$10.2		US$10.3		US$5.3
British Pound - Euro forward exchange contracts		-		€2.4		-
British Pound - U.S. Dollar exchange options		-	US$2.5			-
British Pound - U.S. Dollar forward exchange contracts		£3.0		-		-

Fair Values of Derivative Instruments

(In millions)	June 30, 2012			July 2, 2011			December 31, 2011
	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	$	5.5
Foreign exchange contracts	Prepaid expenses and other current assets		0.1			-	Prepaid expenses and other current assets		0.1
Total derivative assets		$	0.1		$	5.1		$	5.6
Foreign exchange contracts				Accrued expenses and other current liabilities	$	0.6
Total derivative liabilities					$	0.6
Derivatives not designated as hedging instruments
Foreign exchange contracts	Prepaid expenses and other current assets	$	0.1	Prepaid expenses and other current assets	$	0.1		$	-
Interest rate cap contract			-	Other long-term assets		0.6	Other long-term assets		0.2
Total derivative assets		$	0.1		$	0.7		$	0.2

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

(In millions)		Amount of Pretax (Loss) due to Ineffectiveness Recognized in Income
Derivative type	Location of Pretax (Loss) due to Ineffectiveness Recognized in Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
Interest rate swap contracts	Interest expense		$	(1.3	)		$	(1.2	)

(In millions)	Amount of Pretax Gain (Loss) Recognized in Other Comprehensive Income								Amount of Pretax (Loss) Reclassified from Other Comprehensive Income into Income
Derivative type	Fiscal Six Months Ended June 30, 2012			Fiscal Six Months Ended July 2, 2011				Location of Pretax (Loss) Reclassified from Other Comprehensive Income into Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
Canadian Dollar - U.S. Dollar forward contracts		$	0.2		$	(0.6	)	Cost of sales		$	(0.1	)		$	(0.4	)

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

(In millions)		Amount of Pretax Gain (Loss) Recognized in Income
Derivative type	Location of Pretax (Loss) Recognized in Income	Fiscal Six Months Ended June 30, 2012				Fiscal Six Months Ended July 2, 2011
British Pound - Euro forward contracts	Selling, general and administrative expenses		$	-			$	0.1
Interest rate cap contract	Interest expense			(0.2	)			(0.7	)