Liz Claiborne 3Q earnings fall

NEW YORK Liz Claiborne today anounced that 2007 third quarter diluted earnings per share were 33 cents compared to diluted EPS of 93 cents for the third quarter 2006. Net sales for the third quarter 2007 were $1.263 billion, a decrease of 3.9% from the comparable 2006 period.

For the nine months of 2007, diluted earnings per share were 62 cents compared to diluted EPS of $1.75 for the comparable 2006 period. Net sales for the nine months of 2007 were $3.455 billion, a decrease of 1.3% from the comparable 2006 period.

William McComb, ceo of Liz Claiborne, said: "The initiatives identified in the turnaround of Liz Claiborne are fundamentally on track. While third quarter 2007 results are tough to look at, particularly compared to last year, they are consistent with what we forecasted back in May when we announced the significant changes in our earnings outlook for 2007."

McComb added, "There's no question the macroeconomic headwinds will pose ongoing pressure during our turnaround, and to the retail industry at large. However, we remain confident in our strategy of focusing on powerful brands with strong direct-to-consumer paths, while improving our legacy wholesale businesses and aggressively managing our cost structure. We will maintain our financial flexibility while prudently executing our plan." ."

For fiscal 2007, the company is projecting net sales to be down low single digits compared to fiscal 2006, an adjusted operating margin in the range of 6.8% to 7.1% and adjusted EPS in the range of $1.70 to $1.80, down from a range of $1.90 to $2.00.