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.
Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....
As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
- Rana Plaza four years on – Timeline of change
- Using worker surveys to drive supply chain change
- Trump and Brexit get a dose of pragmatism
- Where does VF supply chain sit in growth strategy?
- Investment continues in Ethiopia clothing sector
- Inditex, Adidas and Patagonia top ethical report
- Calls for supply chain transparency standard
- US textile industry applauds Trump executive order
- Amazon wins on-demand apparel manufacturing patent
- US Q1 in brief – Steve Madden, Skechers
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Myanmar - ISA Country Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts