Blog: Liz Claiborne splits in two
Leonie Barrie | 25 June 2007
Liz Claiborne has made no secret of the fact it’s reviewing its operations, and the company reorganisation announced last week is perhaps a taste of what’s to come when the full appraisal is completed next month. The decision to split into two segments – a retail-based division and a wholesale-based division – is also a hint at how CEO William L McComb might be hoping transform Liz Claiborne’s business model seven months after taking control at the helm.
The split seems to shake out the company’s desirable and undesirable holdings: its investment-worthy “power brands” like Juicy Couture, Lucky Brand and Sigrid Olsen versus the apparently less-desirable group that includes the company’s namesake label, Dana Buchman, Ellen Tracy, and DKNY Jeans and DKNY Active.
Liz Claiborne has been in the doldrums for six quarters of declining earnings, with the latest first-quarter profit posted in May dropping 65% as a result of department store consolidation and order cut backs on its poorer performing apparel lines. A clearer vision of the company’s structure is expected to be revealed at its Investor’s Day meeting on 11 July. Not only is the future of the more than 40 brands that make up the company’s portfolio likely to be outlined in more detail, but much-rumoured measures like job cuts and other cost-control initiatives could well be announced.
But it’s important to remember that any turnaround plan won’t have an immediate impact on the bottom line, and will certainly take time to implement – with an acceleration in earnings still likely to be a number of years away.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- Vietnam grows share of US apparel imports in 2016
- "Power of the many" drives change at Otto Group
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Kohl's, L Brands
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- Macy's will "do the right thing", says Lundgren
- VF Corp sees Q4 and FY earnings tumble
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022