Jones Group (NYSE:JNY) is extending its presence in the UAE with the launch of its first Kurt Geiger store in Abu Dhabi’s Marina Mall.  Kurt Geiger is one of the company’s emerging luxury shoe brands. We believe the move falls in line with Jones’ strategy of increasing its international footprint in fiscal 2012, and focusing exclusively on luxury brands while moving away from its value-based brands. Jones Apparel competes with brands like Liz Claiborne (NYSE:LIZ) and Phillips-Van Heusen (NYSE:PVH) as well as department store mainstays such as Polo Ralph Lauren (NYSE:RL) and store-owned private labels.
We have a Trefis price estimate for Jones Group at $13.99, which is roughly 10% above the current market price.
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New store expansion falls in-line with Jones’ near-term strategy
In its March 2012 investor presentation, the company announced international expansion as well as investment in its emerging luxury brands as its focus for the near term. Jones Group is focusing on organic growth in key international markets, and it’s investing in emerging luxury brands such as Kurt Geiger and Stuart Weitzman to drive this growth. Additionally, an increase in luxury revenues will help Jones improve its margins and fight cost-related pressures more effectively.
The latest Kurt Geiger store will open with the company’s new Spring Summer 2012 collection. Equipped with the very best of Kurt Geiger’s renowned three label brands: Kurt Geiger London, KG Kurt Geiger and Carvela, we expect the new Abu Dhabi store to be a major contributor to Kurt Geiger’s international revenues.Notes: