Home / Knowledge / News / Apparel/Garments / Liz Claiborne posts $52mn loss in Q1

Liz Claiborne posts $52mn loss in Q1

27
Apr '12
Liz Claiborne Inc. announced earnings for the first quarter of 2012. For the first quarter of 2012 on a GAAP basis, loss from continuing operations was ($52) million, or ($0.51) per share, compared to a loss from continuing operations of ($53) million, or ($0.56) per share, for the first quarter of 2011.

Net sales from continuing operations for the first quarter of 2012 were $317 million, a decrease of $14 million, or 4.1% from the first quarter of 2011, reflecting (i) an increase in sales in our kate spade and Lucky Brand segments; and (ii) a decline in sales in our Juicy Couture and Adelington Design Group & Other segments, including a $50 million decrease in sales associated with brands that have been sold or exited but not accounted for as discontinued operations.

Gross profit as a percentage of net sales was 56.5% in the first quarter of 2012, compared to 53.3% in the comparable 2011 period, primarily reflecting improved full price sell through of our brands overall and a higher percentage of direct-to-consumer sales which run at a higher gross profit rate than the Company average, partially offset by the impact of higher raw material costs in the first quarter of 2012 compared to 2011.

Selling, general & administrative expenses ("SG&A") were $212 million, or 66.9% of net sales in the first quarter of 2012, compared to $197 million, or 59.6% of net sales in the first quarter of 2011.

The $15 million increase in SG&A compared to the first quarter of 2011 primarily reflected a $25 million increase in expenses related to growth initiatives (new retail stores, e-commerce and marketing), and a $6 million increase in streamlining expenses (the majority of which was related to the planned closure of our Ohio distribution center), partially offset by a $13 million decrease in expenses primarily associated with our Adelington Design Group & Other Segment.

In the first quarter of 2011, we incurred $3 million of SG&A in our former International-Based Direct Brands segment related to allocated SG&A that could not be reported as discontinued operations.

Operating loss was ($33) million ((10.4%) of net sales) in the first quarter of 2012 compared to an operating loss of ($21) million ((6.2%) of net sales) in the first quarter of 2011. Adjusted operating loss in the first quarter of 2012 was ($22) million ((6.9%) of adjusted net sales) compared to adjusted operating loss of ($16) million ((4.9%) of net sales) in 2011.

William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said: "Adjusted EBITDA, excluding foreign currency transaction losses, of ($1) million in the first quarter was in line with our recently-provided outlook. We continue to improve our balance sheet as we ended the quarter with net debt of $317 million, a decrease of $381 million compared to the first quarter of 2011.

“We further strengthened our capital structure with the exchange in early April of $23 million of our 6% Convertible Notes for 6.5 million shares of stock. For fiscal 2012, we continue to forecast adjusted EBITDA, excluding foreign currency transaction gains or losses, in the range of $125 to $140 million."

Click here to read more details:

Liz Claiborne Inc


Must ReadView All

Pic: Shutterstock

Textiles | On 15th Feb 2020

Morocco to revise FTA with Turkey

Turkey has agreed to review its free trade agreement with Morocco,...

Pic: Shutterstock

Textiles | On 15th Feb 2020

German, Italian investors interested in investing in Pak

German and Italian investors and manufacturers have evinced keen...

Pic: Nike

Apparel/Garments | On 15th Feb 2020

Nike employs distributors in Brazil, Argentina, Chile

Nike has entered into strategic distributor deals for its Nike Brand...

Interviews View All

Sanjay Yagnik, Maa Tex Speciality

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Thomas Ong P S, NanoTextile

Thomas Ong P S
NanoTextile

Malaysian company NanoTextile Sdn Bhd taps into the potentials of...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search