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Liz plans 50% decrease in capital expenditures in 2009

27
Oct '08
Liz Claiborne Inc pre-announced an expected range of earnings for the third quarter and first nine months of 2008. For the third quarter of 2008, the Company expects to report a loss per share from continuing operations of ($0.08) - ($0.14) compared to diluted earnings per share ("EPS") from continuing operations of $0.33 for the third quarter of 2007.

The Company is confirming its adjusted diluted EPS from continuing operations range for the third quarter of 2008 of $0.37 - $0.42 compared to adjusted diluted EPS from continuing operations of $0.60 for the third quarter of 2007. Net sales from continuing operations for the third quarter of 2008 were approximately $1.015 billion, a decrease of 15.9% from the comparable 2007 period.

For the first nine months of 2008, the Company expects to report a loss per share from continuing operations of ($0.30) - ($0.36) compared to diluted EPS from continuing operations of $0.48 for the first nine months of 2007.

Adjusted diluted EPS for the first nine months of 2008 are currently estimated to be in the range of $0.81 - $0.86 compared to adjusted diluted EPS from continuing operations of $0.94 for the first nine months of 2007. These estimated results include the $0.09 per share benefit from the reclassification of the first half of 2008 results of the Enyce and Narciso Rodriguez brands to discontinued operations. Net sales from continuing operations for the nine months 2008 were approximately $3.074 billion, a decrease of 6.0% from the comparable 2007 period.

Adjusted diluted EPS for the full year 2008 are currently estimated to be in the range of $1.00 - $1.10 compared to previous adjusted diluted EPS guidance of $1.40 - $1.50.

The estimated adjusted results for the third quarter and first nine months of 2008 and 2007 and the adjusted projected full year 2008 results on a continuing operations basis exclude the impact of expenses incurred in connection with the Company's streamlining initiatives and brand-exiting activities.

The third quarter and first nine months estimated results are preliminary and subject to the Company's completion of its quarterly closing process, including its tax review, and its annual goodwill and impairment review, and the customary review by its external auditors. Accordingly, such estimated results are subject to change.

The Company believes that the adjusted results for the third quarter and first nine months of 2008 and 2007 and the adjusted projected results for fiscal 2008 represent a more meaningful presentation of its historical and estimated operations and financial performance since these results provide period to period comparisons that are consistent and more easily understood.

William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said: "For the third quarter of 2008, we are pre-announcing our adjusted EPS from continuing operations in the range of $0.37 to $0.42, which is in-line with the guidance provided in August, primarily driven by better than forecasted expense controls which offset a challenging top line. However, we began to see real changes in spending patterns in our stores in September, and we saw our department store partners dramatically increase promotional activity at the same time.”


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