In the same release the company denied reports that it is considering the sale of individual divisions. One rumor was that the firm was possibly selling its Nine West shoe and accessories business.

At Merrill Lynch's Retailing Leaders Conference here yesterday, Peter Boneparth, Jones' chief executive officer, stressed that his firm would not sell itself off in parts and that discussions to sell the company were in part based on the investor "climate." "It's obviously been an ongoing discussion for a long period of time," he said. "I think our board is very focused in maximizing shareholder value."

Part of the climate Boneparth could have been referring to is the large amount of private equity recently going into the acquisition of retail companies. The Sports Authority, Neiman Marcus and Toys "R" Us are some of the larger retailers that have been taken private over the last few years at premium prices.