Liz Claiborne Widens Loss; Plans More Cuts

Liz Claiborne widens its loss in the second-quarter and plans more cost cuts.
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Liz Claiborne


? Not so lucky. The apparel maker posted a bigger-than-expected loss in its second-quarter due to weak sales at its Juicy Couture, Kate Spade and Lucky Brand chains.

During the quarter, the company recorded a loss of $82.1 million, or 87 cents a share, compared with a loss of $23.2 million, or 25 cents, in the year-ago period.

Excluding items, the loss was 48 cents, missing analysts' forecast of a loss of 39 cents.

Sales tumbled 29% to $684 million, as same-store sales at Juicy, Kate Spade and Lucky declined between 15% and 25%.

Liz is trying to climb out of its hole through greater and greater acts of attrition. The company said it plans to save another $100 million by further consolidating its distribution center, outsourcing certain jobs, cutting more support and production staff and closing stores at its Mexx business.

Most of these plans are expected to be completed by the end of the year.

Shares of the company fell 1.5% to $4.02 in morning trading.

-- Reported by Jeanine Poggi in New York.

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