Earnings Preview: Liz Claiborne

| About: Kate Spade (KATE)

Liz Claiborne (LIZ) is expected to report Q4 earnings before the market open on Wednesday, March 4 with a conference call scheduled for 10:00 am ET.


Analysts are looking for a loss of (5c) on revenue of $994.86M. The consensus range is (15c)-19c for EPS, and revenue of $887M-$1.12B, according to First Call.

Analyst Views

In January, Liz Claiborne lowered its Q4 EPS guidance to (15c)-0c from 19c-24c. The company also announced additional cost reduction initiatives in response to the highly uncertain economic environment, including the elimination of approximately 725 positions or 8% of its U.S. workforce, the closing of its distribution center in Mt. Pocono, PA, and the suspension of merit pay increases for all employees. The company also has hired Isaac Mizrahi as creative director in an attempt to revive its namesake brand. The retailer ended Q4 with total debt of about $745M, below the guided range of $750M-$775M.

Citigroup analyst Kate McShane recently wrote that the company continues to make "positive steps" with a recent credit amendment which should drive "modest savings going forward." However, she believes that the company's turnaround efforts in a difficult environment and her estimate for further declines in its businesses in 2009 will "keep the stock trading in a tight range over the next 12 months."

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Tagged: , Textile - Apparel Clothing, Earnings
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