Liz Claiborne Inc. (New York) announced net sales from continuing operations for the second quarter declined 29 percent. Among its brands, the company saw comparable store sales drop 17 percent at Juicy Couture, 23 percent at Lucky Brand, 15 percent at Kate Spade and 12 percent at Mexx.
"Our financial results in the second quarter reflect the continuing challenges of turning around under performing businesses in the current recessionary environment as consumer spending and mall traffic, although not deteriorating further, remained at depressed levels compared to last year,” says ceo William McComb.
He adds that the company expects third quarter same-store sales to be down 15 to 25 percent among its brands. As a result, the company announced an additional $100 million in anticipated cost reduction, which is on top of the $70 million program it executed in the first quarter. Among the streamlining activities are distribution center consolidation, outsourcing of certain corporate functions, consolidation of support and production staff at the brand level and store closures in our Mexx business. The majority of the actions will be completed by the end of the year.