Liz Claiborne sees healthy growth in direct to consumer biz

30 Jul '11

4 min read

Liz Claiborne Inc announced earnings for the second quarter of 2011. For the second quarter of 2011 on a GAAP basis, the loss from continuing operations was ($88) million, or ($0.93) per share, compared to a loss from continuing operations of ($77) million, or ($0.81) per share, for the second quarter of 2010.

Adjusted loss per share from continuing operations for the second quarter was ($0.34), compared to an adjusted loss per share from continuing operations of ($0.16) for the second quarter of 2010 (inclusive of losses of ($0.04) per share in the second quarter of 2011 and gains of $0.12 per share in the second quarter of 2010, primarily resulting from the impact of changes in foreign currency exchange rates on our eurobond).

Net sales for the second quarter were $556 million, an increase of $19 million, or 3.5%, from the comparable 2010 period. Excluding the impact of a $37 million decrease in net sales of brands that have been licensed or exited, a significant portion of which was associated with our Liz Claiborne family of brands as we transitioned to the licensing model under the arrangements with JCPenney in the US and Puerto Rico and with QVC, net sales increased $56 million, or 10.3%. The impact of changes in foreign currency exchange rates in our international businesses increased net sales by $19 million in the second quarter of 2011.

For the first half of 2011, the Company recorded a loss from continuing operations of ($172) million, or ($1.82) per share, compared to a loss from continuing operations for the first half of 2010 of ($132) million, or ($1.40) per share. Adjusted loss per share from continuing operations in the first half of 2011 was ($0.90) compared to an adjusted loss per share from continuing operations of ($0.48) in the first half of 2010 (inclusive of (losses) of ($0.19) per share in the first half of 2011 and gains of $0.27 per share in the first half of 2010, primarily resulting from the impact of changes in foreign currency exchange rates on our eurobond).

Net sales for the first half of 2011 were approximately $1.069 billion, a decrease of $52 million, or 4.6%, from the comparable 2010 period. Excluding the impact of a $95 million decline in net sales related to brands that have been licensed or exited, a significant portion of which was associated with a decrease in sales of our Liz Claiborne family of brands as we transitioned to the licensing model under the arrangements with JCPenney in the US and Puerto Rico and with QVC, net sales increased $43 million, or 3.8%.

William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said: "Adjusted EBITDA,excluding foreign currency transaction losses, of $6 million in the second quarter increased $14 million compared to the second quarter of 2010, and was in line with our previously stated outlook. We continue to forecast adjusted EBITDA,excluding foreign currency transaction gains or losses, in the range of $100to $120 million for fiscal 2011."

More Liz Claiborne Inc News... More Apparel/Garments News - United States Of America...