'We expect to see sequential improvement in H2 results' – Liz CEO
13 Aug '09
5 min read
Liz Claiborne Inc announced earnings for the second quarter and first half of 2009. For the second quarter of 2009 and on a GAAP basis, the loss per share from continuing operations was ($0.82) compared to a loss per share from continuing operations of ($0.15) for the second quarter of 2008. Adjusted loss per share from continuing operations for the second quarter was ($0.48) (inclusive of a ($0.05) per share non-cash charge resulting from the impact of changes in foreign currency exchange rates on our eurobond) compared to adjusted diluted earnings per share ("EPS") from continuing operations of $0.11 for the second quarter of 2008.
Net sales from continuing operations for the second quarter were approximately $684 million, a decrease of $280 million, or 29.0%, from the comparable 2008 period. Excluding the impact of a $62 million decrease associated with brands or certain brand activities that have been licensed, closed or exited and have not been presented as part of discontinued operations and fluctuations in foreign currency exchange rates, which reduced net sales by $33 million, net sales decreased $185 million, or 19.2%.
For the first half of 2009, we recorded an operating loss of ($140) million compared to an operating loss of ($34) million in 2008. Adjusted operating loss in the first half of 2009 was ($89) million compared to adjusted operating income of $75 million in 2008. The Company recorded a loss from continuing operations in the first half of 2009 of ($164) million, or ($1.75) per share, compared to a loss from continuing operations in 2008 of ($21) million, or ($0.23) per share. Adjusted loss per share from continuing operations in the first half of 2009 was ($0.86) compared to adjusted diluted EPS from continuing operations of $0.45 in 2008.
Net sales from continuing operations for the first half of 2009 were approximately $1.463 billion, a decrease of $595 million, or 28.9%, from the comparable 2008 period. Excluding the impact of a $150 million decrease associated with brands or certain brand activities that have been licensed, closed or exited and have not been presented as part of discontinued operations and fluctuations in foreign currency exchange rates, which reduced net sales by $110 million, net sales decreased $335 million, or 16.3%.
The adjusted results for the second quarter and first half of 2009 and 2008 exclude the impact of expenses incurred in connection with the Company's streamlining and brand-exiting activities and non-cash goodwill impairment charges. The Company believes that the adjusted results for the second quarter and first half of 2009 and 2008 represent a more meaningful presentation of its historical operations and financial performance since these results provide period to period comparisons that are consistent and more easily understood. The attached tables, captioned "Reconciliation of Non-GAAP Financial Information", provide a full reconciliation of actual results to the adjusted results.
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