Liz Claiborne Q2 Earnings Plummet
NEW YORK – Liz Claiborne’s reported earnings of $0.13 for the second quarter of 2007, a steep drop from $0.38 for the same time last year as the company tries to remake itself into a smaller, leaner operation under new CEO William McComb. However, the results were better than analysts expectations, with big increases at Lucky and Juicy Couture, and 6% growth at the much larger Mexx brand and stores.
The company, which recently announced that it will divide its brands into two groups, and shed up to 16 of its well-known brands, is in transition, as it will be putting most of its future resources into four names that it believes have the best potential for growth – Kate Spade, Juicy Couture, Lucky Brand Jeans, and Mexx.
The fate of the remaining brands, including Dana Buchman, Ellen Tracy, Enyce, Laundry, and Sigrid Olsen remains in doubt as bidders try to decide the value and potential of names that CEO McComb has decided to not fit into his corporate strategy of fewer brands and more company-owned retail outlets. He recently stated that he believes that at least 14 of the brands will successfully find new homes.
