Liz Claiborne sales tumble 29 per centWednesday, 13 May 2009
Sales tumbled 29 percent to $779.7 million from $1.1 billion in the 2008 quarter. The loss was worse than Wall Street expected. Analysts polled by Thomson Reuters expected a loss of 23 cents per share on $884.3 million in sales. Excluding an $88 million drop related to brands or certain brand activities and a drop of $41 million related to the effects of foreign currency exchange rates, sales fell 17 percent, the company said.
Company officials said low store traffic coupled with a highly promotional retail environment resulted in same-store sales decreases of 22 percent at the company's Juicy Couture brand, 18 percent at Lucky Brand, 27 percent at Kate Spade and 7 percent at Mexx.
By the third quarter, the company said it expects results to improve, with an adjusted operating profit to follow for the fourth quarter.
Image: Lucky Brand Jeans logo