Liz Claiborne quarterly earnings fall

NEW YORK Liz Claiborne Inc. announced today diluted earnings per share of 13 cents for the second quarter 2007 compared to diluted earnings per share of 38 cents for the second quarter 2006. Net sales for the second quarter 2007 were $1.13 billion, an increase of 0.5% from the comparable 2006 period.

For the six months of 2007, diluted earnings per share were 29 cents compared to diluted earnings per share of 83 cents for the comparable 2006 period. Net sales for the six months of 2007 were $2.28 billion, a decrease of 0.5% from the comparable 2006 period.

Net income in the second quarter of 2007 decreased to $14 million, or 1.2% of net sales, from $39 million, or 3.5% of net sales, in the second quarter of 2006. Net income in the six months of 2007 decreased to $30 million, or 1.3% of net sales, from $86 million, or 3.8% of net sales, in 2006.

The company is projecting net sales to be flat to down low single digits compared to fiscal 2006, adjusted operating margin in the range of 7.1% to 7.4% and adjusted earnings per share in the range of $1.90 - $2.00.