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Liz achieves SG&A expense levels well below expectations
06 Aug '10
5 min read
“At the same time, Mexx Europe posted considerable losses in the quarter--en route to its own product re-launch this Fall as well, orchestrated by a new management team. We also recently announced that we are exiting our Liz Claiborne branded outlet stores in the United States and Puerto Rico and expect this action to eliminate the meaningful operating losses generated by these stores when this action is anticipated to be completed by early 2011."
Mr. McComb continued, "During the quarter, we continued to strengthen our balance sheet which reflects total debt of $590 million, a $128 million decrease compared to the second quarter of 2009. Our inventories are in excellent shape, as evidenced by the 20% reduction in the quarter compared to last year.
“We also saw a continuation of the positive trend in expense management as we once again achieved expense levels well below expectations. Cash flow from continuing operating activities was $150 million for the latest twelve months, including the receipt of $168 million in net income tax refunds, resulting in availability of $195 million under our revolving credit facility at the end of the quarter."
Mr. McComb concluded, "Looking forward, we continue to expect a meaningful improvement in second half operating results compared to the year ago period, although we remain cautious about the consumer given overall economic conditions. We have the product, inventory, and marketing initiatives that should enable us to post growth in sales and margin at Juicy, Lucky and kate spade.
“In our Partnered Brands segment, product associated with the new Liz Claiborne brand franchise licensing models with JCPenney and QVC hits the market this month and we are optimistic about how it will perform. Finally, at Mexx Europe, overall wholesale bookings for the fourth quarter were up slightly compared to last year, and we eagerly await consumer feedback on the new product assortments arriving in Mexx Europe retail stores this month."
Click here for more details
Mr. McComb continued, "During the quarter, we continued to strengthen our balance sheet which reflects total debt of $590 million, a $128 million decrease compared to the second quarter of 2009. Our inventories are in excellent shape, as evidenced by the 20% reduction in the quarter compared to last year.
“We also saw a continuation of the positive trend in expense management as we once again achieved expense levels well below expectations. Cash flow from continuing operating activities was $150 million for the latest twelve months, including the receipt of $168 million in net income tax refunds, resulting in availability of $195 million under our revolving credit facility at the end of the quarter."
Mr. McComb concluded, "Looking forward, we continue to expect a meaningful improvement in second half operating results compared to the year ago period, although we remain cautious about the consumer given overall economic conditions. We have the product, inventory, and marketing initiatives that should enable us to post growth in sales and margin at Juicy, Lucky and kate spade.
“In our Partnered Brands segment, product associated with the new Liz Claiborne brand franchise licensing models with JCPenney and QVC hits the market this month and we are optimistic about how it will perform. Finally, at Mexx Europe, overall wholesale bookings for the fourth quarter were up slightly compared to last year, and we eagerly await consumer feedback on the new product assortments arriving in Mexx Europe retail stores this month."
Click here for more details
Liz Claiborne Inc
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