Retailer Fifth & Pacific lowers full-year profit target

03 Oct '12

4 min read

Mr. McComb added, "We are executing a number of initiatives at Juicy to address these issues and improve profitability going forward. Key amongst these initiatives are plans to modify the allocation process to deliver more product to higher performing doors, moving excess inventory to the outlet channel sooner to improve sell-through, new merchandising and pricing strategies in the retail stores-including the enhanced regionalization of merchandise-and significant cost reduction and globalization of organizational roles within the Juicy brand. Despite this obviously disappointing reduction in the current outlook for the Juicy brand, we expect that we will be able to achieve our long term targets for the brand as we believe we have an appropriate plan to correct these merchandising-related issues."

Mr. McComb concluded, "Our initiative to outsource our distribution function from our Ohio distribution center has encountered some start up issues that will delay our expected timeline for closing our Ohio facility. We have delayed the migration of product out of Ohio to the related third party logistics facility. As a result, we currently expect that we will continue to ship some goods from our Ohio distribution center for the near term to mitigate the risk of late deliveries. The expenses associated with this delay in 2012 are expected to be in the range of $2 to $4 million and are included in our revised outlook."

Fifth & Pacific Companies, Inc. designs and markets a portfolio of retail-based, premium, global lifestyle brands including Juicy Couture, kate spade, and Lucky Brand. In addition, the Adelington Design Group, a private brand jewelry design and development group, markets brands through department stores and serves jcpenney via exclusive supplier agreements for the Liz Claiborne and Monet jewelry lines and Kohl's via an exclusive supplier agreement for Dana Buchman jewelry.

Fifth & Pacific Companies Inc

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