• Q2 losses widen to $89.9m
  • Revenues rose 17.7% to $282m 
  • Gains in both Direct Brands segments   

Despite booking a wider loss in its second quarter, apparel seller Liz Claiborne Inc has reaffirmed its full-year targets thanks to climbing sales at its Juicy Couture, Kate Spade and Lucky Brand labels.

For the quarter to 2 July, the company reported a net loss of $89.9m or $0.95 per share, compared with $86.8m or $0.92 per share, in the same period last year.

Net sales were up 3.5% to $556m, with gains in its domestic-based Direct Brands and international-based Direct Brands segments slightly offset by a decline in its Partnered Brands unit.

Revenues rose 17.7% to $282m in the domestic-based Direct Brands segment, with Juicy Couture sales up 4.7% to $117m, Kate Spade up 63.8% to $68m, and Lucky Brand rising 12.5% to $97m. But operating loss in this division widened to $24m from $13m.

In the international-based Direct Brands unit, sales rose 10.8% to $180m, with growth at both the Mexx Europe wholesale and Mexx Canada retail businesses partially offset by a drop in Mexx Europe retail. Operating losses widened to $25m from $24m.

The company's Partnered Brands, which includes the Liz Claiborne lines as well as family of Dana Buchman, Kensie, Mac & Jac, and licensed DKNY labels, saw sales tumble 30.6% to $93m. This was blamed on changes in licensing agreements with JC Penney and QVC, as well as moves to license out or exit several brands. Operating losses narrowed to $17m from