"Pressures in the wholesale channel, as discussed during our first quarter conference call, continued to negatively impact the performance of our Partnered Brands segment during the second quarter."
"We are in the process of implementing a number of initiatives to improve results in Partnered Brands, including narrowing our portfolio, enhancing our product offerings, and working together with key partners to better meet the needs of today's consumer."
Mr. McComb continued, "As outlined on July 11, we have realigned our organizational and management structure to seize the concept of 'brand' and place it at the center of our operations, better capitalize on our best growth opportunities, aggressively manage our cost structure and ultimately deliver improved return on invested capital and strong EPS growth for Liz Claiborne Inc shareholders."
"We are also progressing with our cost reduction initiatives, the majority of which will be implemented by the end of October, enabling us to achieve $100 million in savings for fiscal 2008."
"This strategy is aimed at maximizing the potential of our most powerful, sustaining properties while addressing the headwinds in the wholesale channel, and we are pleased by our initial progress - including the interest we have garnered in the 16 brands we placed under strategic review."
Mr. McComb concluded, "With a talented and energized management team in place, we are excited about the new direction of the company and the opportunity to transform Liz Claiborne Inc. into a stronger, leaner, brand- driven enterprise capable of achieving enhanced top and bottom-line results in the future."
The Company will sponsor a conference call on July 31, 2007 at 10:00 am EDT to discuss its second quarter 2007 results.
marketing@alchempro.com
