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current news

Liz Claiborne Cites Sales Drops

(Filed Under Financial and General Interest News). Following the October 8th announcement of exclusive licensing agreements with JCPenney and QVC beginning in 2010, Liz Claiborne Inc. reported predictably weak results during 2009’s first nine-month and third quarter periods. Nine-month net sales plunged 27.4 percent, to about $2.233 billion, from last year’s comparable period, while third quarter net sales dropped $24.2 percent, to $770 million.

The company primarily attributed the third quarter drop to significant decreases in its International-based direct brands and partnered brands’ segments net sales: (down 32.6 percent and 30.9 percent, respectively). The International-based direct brands segment consists of all operations of Mexx, the company’s international retail-based business. The partnered brands segment includes operations related to the company’s wholesale-based brands.

During the quarter, net sales for the domestic-based brand segment dropped 4.8 percent. The segment encompasses specialty retail, outlet, wholesale apparel, wholesale non-apparel, e-commerce and licensing for the Juicy Couture, Kate Spade and Lucky operating segments. Juicy Couture and Lucky reported net sale drops of 7.8 percent and 6.9 percent, respectively; however, Kate Spade’s net sales increased by 18 percent. All three segments cited drops in comparable store sales, with Juicy Couture dropping 13 percent, Kate Spade dropping three percent and Lucky Brand dropping 16 percent.

Liz Claiborne Inc. designs and markets a global portfolio of retail-based brands. For further information, call Robert J. Vill, vice president-finance and treasurer: (201) 295-7515.

more Financial and General Interest News >>

Published 11-04-2009 by Amanda Torres Price

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