The Jones Group (NYSE:JNY) recently announced the appointment of Kathy Nedorostek to the newly created position of Group President, Global Footwear and Accessories, effective mid-October. ((Jones Group appoints Kathy Nedorostek as Group President, Global Footwear and Accessories, Source: Jones Group’s IR)) Nedorostek joins Jones Group from Coach Inc. (NYSE:COH) where she served as President of North America Wholesale and Global Licensing since 2003 and played an integral role in the brand’s development.
We believe that by hiring Kathy Nedorostek Jones’ will continue to focus on growth and expansion of its footwear and accessories business. Jones Group 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.
Jones’ Focus on Footwear and Accessories
The domestic wholesale footwear and accessories business contribute roughly 20% to Trefis price estimate for Jones Group’s stock. Additionally, footwear & accessories business also contribute a lion’s share to Jones’ international retail and wholesale business, which together represent nearly 23% of Jones’ stock value.
Apart from the total value contributed by footwear and accessories, the business segment is also one of the highest growing segments for Jones Group in recent years. A quick scan of Jones’ last three years financial figures easily establishes that the growth in footwear & accessories segment has been strikingly higher than that in apparel and jeanswear, two of the other major business segments for Jones Group. Additionally, the majority of the company’s recent acquisitions such as Stuart Weitzman, Kurt Geiger and Brian Atwood Designs have been in the footwear and accessories segment only, which again establishes the high focus of Jones Group on the growth of footwear and accessories.
We believe Kathy Nedorostek will help press this focus on footwear and accessories. Nedorostek comes to Jones with a rich leadership experience in Coach Inc., where she was instrumental in driving Coach’s market share gains in North American department and specialty stores for its handbags and accessories business segment. Additionally, with the success of Natori Company and cK Calvin Klein Shoes & Bags to her credit, the current outlook in the market is that the inclusion of Nedorostek can provide a significant impetus to Jones’ footwear and accessories business.