US: Liz Claiborne reduces Q1 loss
Author: just-style.com | 6 May 2010
- Q1 loss down to $72m
- Net sales down 21% to $608m
Liz Claiborne has revealed a first quarter net loss of US$72m compared to US$91m in 2009.
Net sales fell 21.5% to US$608m, a decrease of US$167m compared to the same period in 2009.
Excluding the impact of a US$52m decrease in net sales of the Liz Claiborne family of brands resulting from the transition to the licensing models under the JCPenney and QVC arrangements, net sales decreased US$115m or 14.8%.
The adjusted results for the first quarter 2010 and 2009 exclude the impact of expenses incurred in connection with the company's streamlining initiatives, brand-exiting activities and non-cash goodwill impairment charges.
"Our financial results in the first quarter were generally in-line with the guidance we provided in February," said Liz Claiborne CEO William McComb.
"We saw improved comp store sales and gross margins at Juicy Couture and kate spade in the quarter. In contrast, Lucky Brand is undergoing a significant merchandising and operational recalibration which negatively impacted first quarter results."
McComb added total debt was reduced to US$591m, a US$163m decrease compared to the first quarter of 2009. Inventories achieved a 28% reduction in the quarter compared to last year.
"At Juicy, Lucky, and kate, we continue to focus on growing our brand franchises through great product and marketing along with greater emphasis on direct to consumer and international channels of distribution," said McComb.
"In our partnered brands segment, we remain on track for a smooth transition in the third quarter to the new licensing models with JCPenney for our Liz Claiborne and Claiborne branded products and QVC for our LCNY branded products."
McComb remained cautious however, concerning Mexx Europe, which he noted "remains our biggest challenge and our biggest opportunity."
"We are seeing some early indications that Mexx is heading in the right direction, but overall visibility will remain low until the second half when new product assortments are in our retail stores and the consumer feedback loop begins," he said.
Companies: Claiborne, JCPenney
View next/previous articles
6 May 2010 -
6 May 2010 -
Currently reading -
US: Liz Claiborne reduces Q1 loss
6 May 2010 -
Related research
Datamonitor's Menswear in Australia industry profile is an essential resource for top-level data and analysis covering the Menswear industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends and ...
Global Department Store Retailing
This report provides comprehensive coverage of the global department store market with analysis segmented into Europe, North America, Japan and the Rest of the World. It provides regional market values, product shares, insight into the main regional ...
Related articles
There are currently no comments on this article
Be the first to comment on this article