Liz Claiborne plans more cost cuts amid widening loss

New York City Hurt by the recession and the drop in apparel spending, Liz Claiborne said Wednesday that its second-quarter loss widened to $82.1 million from $23.2 million a year ago. The company said it plans $100 million in additional cost cuts.

Sales in the quarter, ended July 4, plunged 29% to $683.8 million from $963.4 million, hurt in part by exiting some brands. Same-store sales fell 17% at Juicy Couture, 23% at Lucky Brand, 15% at Kate Spade and 12% at Mexx.

The additional cost cuts, on top of $70 million in the first quarter, will affect all business segments and corporate areas and focus primarily on further distribution center consolidation, outsourcing of certain corporate functions and consolidation of support and production staff at the brand level and stores in the company's Mexx unit.

Our results "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," chief executive William McComb said. "We are planning for the retail environment to remain fundamentally promotional."