Jones Apparel Group Inc.’s stock price plummeted 12% after it reported a second quarter net loss of $47.1 million, including charges of $99.4 million for severance, restructuring and an ongoing review of its business. Sales slipped 2%–to $904 million, including an 8% drop in same-store sales.  The Bristol, Pa. apparel company, which also reduced its earnings projections for the year, announced that it favors the $900 million buyout offer for its Barneys New York unit from Fast Retailing Co. Ltd. of Japan over an $825 million bid from Dubai’s Istithmar.

Martha Stewart Living Omnimedia Inc., Manhattan, N.Y., reported a widened second quarter net loss of $6.7 million, compared to a $1.2 million loss in the year-earlier second quarter.  Sales were up 8%–to $73.4 million. The recent loss stemmed from expenses at its redesigned Web business, where the company had an operating loss of $2.1 million. Martha Stewart, which also faced a decline in sales of its products through Kmart, further warned that it will incur a loss in the current quarter.