Clothing Designer Liz Claiborne Announce 2nd Quarter Loss

Monday 25th of August 2008 04:09:39 PM

Clothing Designer Liz Claiborne Announce 2nd Quarter Loss

The Liz Claiborne clothing line has been a force to reckon with in the fashion industry. Lately though, the designs have been lacklustre and the sales reflect the lack of consumer interest. The company has several clothing lines considered to be premium including Kate Spade, Lucky Brand Jeans and Juicy Couture. But the company has recently sold off less popular brands. The sales of these lesser brands in conjunction with the declining sales in department stores led to a second quarter loss.

The news that the popular clothing retailer had to post a second quarter loss equivalent to 25 cents a share was not taken lightly by the fashion industry. The highly competitive nature of fashion retailing means a company cannot afford to let its image or styling slip. Liz Claiborne lost $23.2 million the second quarter of 2008 whereas the company had earned $13.6 million the second quarter of 2007. The company lost money despite a major expense cutback in several areas of the income statement.

In recognition of the fact the creative design of the Liz Claiborne clothing line needs an overhaul, the company has hired a new head designer. Isaac Misrahi was lured away from Target to re-design women's apparel and accessories. His first designs will appear in September. Liz Claiborne sells both men's and women's clothing. The clothing includes tees and tops, skirts, sweaters, pants and shorts. A variety of t-shirts are offered for sale ranging from plain or White T-Shirts to colourful printed tees.

The revenue increases at Liz Claiborne have been in the direct brands. The Kate Spade, Lucky Brand, Mexx and Juicy Couture brand sales figures have climbed significantly. The company also has partnerships for segmented clothing lines including DKNY jeans and the Monet brands. With the addition of Mr. Misrahi to Liz Claiborne, it's hoped the fashion empire will be able to restore its vigorous women's apparel sales.