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From the Wires
Liz Claiborne Inc. Reports 3rd Quarter and First Nine Months Results
- Reports Q3 Adjusted EPS from Continuing Operations Within Guided Range
By: PR Newswire
Nov. 10, 2008 05:18 PM
For the first nine months of 2008, the loss per share from continuing
operations was The Company is tightening its adjusted diluted EPS guidance for the full
year 2008 to a range of The Company believes that the adjusted results for the third quarter and first nine months of 2008 and 2007 and the adjusted projected results for fiscal 2008 represent a more meaningful presentation of its historical and estimated operations and financial performance since these results provide period to period comparisons that are consistent and more easily understood. The attached tables, captioned "Reconciliation of Non-GAAP Financial Information", provide a full reconciliation of actual results to the adjusted results. Mr. McComb continued, "We will continue our intense focus on controlling the controllables...inventory, accounts receivable, astute brand execution and generating free cash flow to pay down debt. In terms of product and brand execution, we've spent the past year developing outstanding product for this Spring--and although the environment will temper our results, we are as optimistic as we can be about how our brands will present at retail." Mr. McComb concluded, "We are confirming our recently updated fourth
quarter adjusted EPS from continuing operations guidance in the range of The Company will sponsor a conference call at OPERATING SUMMARY -- The Company aggregates its brand-based activities into two reporting segments as follows:
- The Direct Brands segment - consists of the specialty retail, outlet,
wholesale apparel, wholesale non-apparel (including accessories,
jewelry and handbags), e-commerce and licensing operations of the
Company's four retail-based brands: Mexx, Juicy Couture, Lucky Brand
and Kate Spade.
- The Partnered Brands segment - consists of the wholesale apparel,
wholesale non-apparel, outlet, specialty retail, e-commerce and
licensing operations of the Company's owned and licensed wholesale
based brands.
The results of the Company's former In the second quarter of 2008, the Company entered into an exclusive long-
term global licensing agreement for the manufacture, distribution and
marketing of its fragrance brands. Although we believe this arrangement
provides us the opportunity to realize more consistent and profitable results,
it will continue to negatively affect year over year net sales comparisons, as
we now earn a royalty fee based on the sales of our fragrance products by
-- Net sales from continuing operations for the third quarter of 2008 were
- Direct Brands segment net sales decreased 1.8% in the third quarter to
$617 million. Excluding the impact of licensing our fragrance
operations in the second quarter of 2008, net sales increased 1.7%.
- Partnered Brands segment net sales decreased $180 million, or 31.2%,
in the third quarter to $398 million, inclusive of a $159 million
decrease associated with brands or certain brand activities that have
been licensed, closed or exited and have not been presented as part of
discontinued operations.-- Net sales for our Direct Brands segment in the third quarter were as follows: - impact of changes in foreign currency exchange rates, net sales for
Mexx were $311 million, a 15.0% decrease compared to last year.
- Juicy Couture - $144 million, a 6.8% increase compared to last year.
Excluding the impact of licensing our fragrance operations in the
second quarter of 2008, net sales increased 20.0%.
- Lucky Brand - $111 million, a 2.3% increase compared to last year.
Excluding the impact of licensing our fragrance operations in the
second quarter of 2008, net sales increased 9.7%.
- Kate Spade - $29 million, a 47.0% increase compared to last year. -- Operating income in the third quarter was - Direct Brands segment operating income in the third quarter was $35
million (5.7% of net sales), compared to $87 million (13.8% of net
sales) in 2007. Direct Brands segment adjusted operating income in the
third quarter was $53 million (8.5% of adjusted net sales) compared to
$95 million (15.1% of adjusted net sales) in 2007.
- Partnered Brands segment operating loss in the third quarter was ($19)
million ((4.7)% of net sales), compared to an operating loss of ($16)
million ((2.8)% of net sales) in 2007. Partnered Brands segment
adjusted operating income in the third quarter was $9 million (2.3% of
adjusted net sales) compared to adjusted operating income of $19
million (3.3% of adjusted net sales) in 2007. -- Expenses associated with our streamlining and brand-exiting activities
were -- Inventories decreased 24.3% to -- Accounts receivable decreased 27.1% to -- Cash flow from continuing operating activities for the last twelve
months was -- We ended the quarter with
THIRD QUARTER RESULTS
Overall Results
Net sales from continuing operations for the third quarter of 2008 were
Gross profit as a percent of net sales was 49.3% in 2008 compared to 48.5% in the third quarter of 2007, principally reflecting an increased gross profit rate and an increased proportion of sales from our Direct Brands segment which runs at a higher gross profit rate than the company average, partially offset by a decreased gross profit rate in our Partnered Brands segment. Selling, general & administrative expenses ("SG&A") were -- a -- a -- a -- a -- a Operating income was Income taxes in the third quarter of 2008 decreased by Loss from continuing operations in the third quarter of 2008 was Net loss in the third quarter of 2008 was
Segment Highlights
Direct Brands Net sales in our Direct Brands segment in the third quarter were Net sales for Mexx were - We ended the quarter with 133 specialty stores, 99 outlets and 234
concessions, reflecting the net addition over the last 12 months of
15 outlet stores and the net closure of 4 specialty stores and 72
concessions;
- Average retail square footage in the third quarter was
approximately 1.450 million square feet, an 8% increase compared to
2007;
- Sales per square foot for comparable stores over the latest twelve
months was $458; and
- Comparable store sales decreased 13% in the third quarter,
reflecting decreases in our Mexx Europe and Mexx Canada businesses.
Net sales for Juicy Couture were - We ended the quarter with 56 specialty stores and 29 outlet stores,
reflecting the net addition over the last 12 months of 23 specialty
stores and 16 outlet stores;
- Average retail square footage in the third quarter was
approximately 287 thousand square feet, a 130% increase compared to
2007;
- Sales per square foot for comparable stores over the latest twelve
months was $1,214; and
- Comparable store sales increased 5% in the third quarter.
Net sales for Lucky Brand were - We ended the quarter with 187 specialty stores and 35 outlet
stores, reflecting the net addition over the last 12 months of 28
specialty stores and 25 outlet stores;
- Average retail square footage in the third quarter was
approximately 528 thousand square feet, a 38% increase compared to
2007;
- Sales per square foot for comparable stores over the latest twelve
months was $606; and
- Comparable store sales decreased 4% in the third quarter.
Net sales for - We ended the quarter with 41 specialty stores and 25 outlet stores,
reflecting the net addition over the last 12 months of 18 specialty
stores and 19 outlet stores;
- Average retail square footage in the third quarter was
approximately 124 thousand square feet, a 118% increase compared to
2007;
- Sales per square foot for comparable stores over the latest twelve
months was $729; and
- Comparable store sales decreased 13% in the third quarter.
Direct Brands segment operating income in the third quarter was Partnered Brands Net sales from continuing operations in our Partnered Brands segment
decreased - The Partnered Brands segment operating loss in the third quarter was
FIRST NINE MONTHS RESULTS
Overall Results
Net sales from continuing operations for the first nine months of 2008
were Net sales for our Direct Brands segment in the first nine months of 2008 were as follows: - Mexx - - Juicy Couture - - Lucky Brand - - Operating loss was Direct Brands segment operating income in the first nine months of 2008
was Partnered Brands segment operating loss in the first nine months of 2008
was Income taxes in the first nine months of 2008 decreased by Loss from continuing operations in the first nine months of 2008 was Net loss in the first nine months of 2008 was About Liz Claiborne Inc. Liz Claiborne Inc. designs and markets a global portfolio of retail-based
premium brands including Forward-Looking Statement Statements contained herein that relate to future events or the Company's
future performance, including, without limitation, statements with respect to
the Company's anticipated results of operations or level of business for 2008
or any other future period, are forward-looking statements within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are based on current expectations only and are not guarantees
of future performance, and are subject to certain risks, uncertainties and
assumptions. The Company may change its intentions, belief or expectations at
any time and without notice, based upon any change in the Company's
assumptions or otherwise. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those anticipated, estimated or projected. In
addition, some factors are beyond the Company's control. Among the factors
that could cause actual results to materially differ include: risks associated
with the current economic conditions, including the tightening of the credit
markets, reduction in consumer confidence and discretionary spending,
continued recessionary pressures in
LIZ CLAIBORNE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except per common share data)
(Unaudited)
Three Months Ended Three Months Ended
October 4, 2008 % of September 29, 2007 % of
(13 weeks) Sales (13 weeks) Sales
Net Sales $1,014,969 100.0% $1,206,719 100.0%
Cost of goods sold 514,615 50.7% 622,009 51.5%
Gross Profit 500,354 49.3% 584,710 48.5%
Selling, general
& administrative
expenses 474,115 46.7% 501,537 41.6%
Trademark
impairment 10,046 1.0% 12,300 1.0%
Operating Income 16,193 1.6% 70,873 5.9%
Other income
(expense), net 798 0.1% (1,519) (0.1)%
Interest expense,
net (12,050) (1.2)% (11,739) (1.0)%
Income Before Provision
for Income Taxes 4,941 0.5% 57,615 4.8%
Provision for
income taxes 14,360 1.4% 24,098 2.0%
(Loss) Income from
Continuing Operations (9,419) (0.9)% 33,517 2.8%
(Loss) income from
discontinued
operations, net
of tax (8,099) 2,002
Loss on disposal of
discontinued
operations, net
of tax (51,207) (2,468)
Net (Loss) Income $(68,725) $33,051
Earnings per Share:
Basic
(Loss) Income from
Continuing
Operations $(0.10) $0.33
(Loss) Income from
Discontinued
Operations (0.08) 0.02
Loss on Disposal
of Discontinued
Operations (0.55) (0.02)
Net (Loss) Income $(0.73) $0.33
Diluted
(Loss) Income from
Continuing
Operations $(0.10) $0.33
(Loss) Income from
Discontinued
Operations (0.08) 0.02
Loss on Disposal of
Discontinued
Operations (0.55) (0.02)
Net (Loss) Income $(0.73) $0.33
Weighted Average
Shares, Basic (1) 93,641 99,820
Weighted Average
Shares, Diluted (1) 93,641 100,700
Supplemental
Information:
Dividends Paid per
Common Share (Rounded
to the nearest penny) $0.06 $0.06
(1) Because the Company incurred a loss from continuing operations in 2008, all outstanding stock options and restricted shares are antidilutive. Accordingly, basic and diluted weighted average shares outstanding are equal for such period.
LIZ CLAIBORNE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except per common share data)
(Unaudited)
Nine Months Ended Nine Months Ended
October 4, 2008 % of September 29, 2007 % of
(40 weeks) Sales (39 weeks) Sales
Net Sales $3,073,773 100.0% $3,269,899 100.0%
Cost of
goods sold 1,586,358 51.6% 1,690,481 51.7%
Gross Profit 1,487,415 48.4% 1,579,418 48.3%
Selling, general &
administrative
expenses 1,495,280 48.6% 1,449,197 44.3%
Trademark
impairment 10,046 0.3% 12,300 0.4%
Operating (Loss)
Income (17,911) (0.6)% 117,921 3.6%
Other expense, net (2,875) (0.1)% (1,874) (0.1)%
Interest expense,
net (33,922) (1.1)% (30,126) (0.9)%
(Loss) Income Before
(Benefit) Provision
for Income Taxes (54,708) (1.8)% 85,921 2.6%
(Benefit) provision
for income taxes (23,692) (0.8)% 36,648 1.1%
(Loss) Income from
Continuing
Operations (31,016) (1.0)% 49,273 1.5%
(Loss) income from
discontinued
operations,
net of tax (26,789) 16,075
Loss on disposal
of discontinued
operations,
net of tax (65,104) (2,468)
Net (Loss) Income $(122,909) $62,880
Earnings per Share:
Basic
(Loss) Income from
Continuing
Operations $(0.33) $0.48
(Loss) Income from
Discontinued
Operations (0.29) 0.16
Loss on Disposal
of Discontinued
Operations (0.69) (0.02)
Net (Loss) Income $(1.31) $0.62
Diluted
(Loss) Income from
Continuing
Operations $(0.33) $0.48
(Loss) Income from
Discontinued
Operations (0.29) 0.16
Loss on Disposal
of Discontinued
Operations (0.69) (0.02)
Net (Loss) Income $(1.31) $0.62
Weighted Average
Shares, Basic (1) 93,608 101,157
Weighted Average
Shares, Diluted (1) 93,608 102,219
Supplemental
Information:
Dividends Paid per
Common Share (Rounded
to the nearest penny) $0.17 $0.17
(1) Because the Company incurred a loss from continuing operations in
2008, all outstanding stock options and restricted shares are antidilutive.
Accordingly, basic and diluted weighted average shares outstanding are equal
for such period.
LIZ CLAIBORNE INC.
CONSOLIDATED BALANCE SHEETS
(All amounts in thousands)
(Unaudited)
October 4, 2008 September 29, 2007
Assets
Current Assets:
Cash and cash equivalents $50,342 $111,634
Accounts receivable - trade, net 483,327 663,197
Inventories, net 549,270 725,802
Deferred income taxes 73,128 91,396
Other current assets 274,745 155,571
Assets held for sale 10,267 19,360
Total current assets 1,441,079 1,766,960
Property and Equipment, Net 590,070 583,343
Goodwill and Intangibles, Net 931,175 1,453,581
Deferred Income Taxes 31,297 -
Other Assets 20,773 21,890
Total Assets $3,014,394 $3,825,774
Liabilities and Stockholders' Equity
Current Liabilities:
Short term borrowings $61,807 $455,852
Other current liabilities 551,248 601,930
Total current liabilities 613,055 1,057,782
Long-Term Debt 912,046 520,749
Other Non-Current Liabilities 107,649 113,933
Deferred Income Taxes 363 71,821
Minority Interest 3,894 3,510
Stockholders' Equity 1,377,387 2,057,979
Total Liabilities and Stockholders'
Equity $3,014,394 $3,825,774
LIZ CLAIBORNE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)
(Unaudited)
Nine Months Ended
October 4, 2008 September 29, 2007
(40 Weeks) (39 Weeks)
Cash Flows from Operating Activities:
Net (loss) income $(122,909) $62,880
Adjustments to arrive at (loss)
income from continuing operations 91,893 (13,607)
(Loss) income from continuing
operations (31,016) 49,273
Adjustments to reconcile (loss)
income from continuing operations
to net cash used in operating
activities:
Depreciation and amortization 117,745 108,587
Trademark impairment 10,046 12,300
Streamlining initiatives; asset
write-down 2,805 -
Loss on asset disposals 14,991 18,141
Share-based compensation 11,738 16,171
Tax benefit on exercise of stock
options 7 5,603
Other, net (92) (858)
Changes in assets and liabilities,
exclusive of acquisitions:
Increase in accounts
receivable - trade, net (60,460) (146,777)
Increase in inventories, net (37,338) (131,810)
Increase in other current
and non-current assets (11,195) (6,421)
Increase in accounts payable 19,912 5,543
Decrease in accrued expenses (67,120) (43,513)
Net change in income tax assets
and liabilities (61,053) (13,645)
Net cash (used in) provided by
operating activities of
discontinued operations (26,763) 21,539
Net cash used in operating
activities (117,793) (105,867)
Cash Flows from Investing Activities:
Proceeds from disposition 21,252 -
Purchases of property and
equipment (141,681) (111,645)
Purchases of businesses and
payment of related debt (84,420) (34,313)
Payments for in-store merchandise
shops (5,793) (4,012)
Proceeds from sales of securities - 9,616
Proceeds from sale of property and
equipment - 1,410
Other, net (211) 472
Net cash provided by (used in)
investing activities of
discontinued operations 64,769 (16,584)
Net cash used in
investing activities (146,084) (155,056)
LIZ CLAIBORNE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(All amounts in thousands)
(Unaudited)
Nine Months Ended
October 4, 2008 September 29, 2007
(40 Weeks) (39 Weeks)
Cash Flows from Financing
Activities:
Short term borrowings, net 122,408 432,144
Principal payments under capital
lease obligations (3,128) (4,288)
Commercial paper, net - (82,075)
Proceeds from exercise of common
stock options 70 42,726
Purchase of common stock - (181,616)
Dividends paid (15,793) (17,102)
Excess tax benefit related to
share-based compensation - 2,410
Other, net (2,304) (1,076)
Net cash provided by
financing activities 101,253 191,123
Effect of exchange rate changes on
cash and cash equivalents 7,565 (4,211)
Net Change in Cash and Cash Equivalents (155,059) (74,011)
Cash and Cash Equivalents at
Beginning of Period 205,401 185,645
Cash and Cash Equivalents at End of
Period $50,342 $111,634
LIZ CLAIBORNE INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
(All amounts in thousands, except per common share data)
(Unaudited)
The following tables provide reconciliations of (Loss) Income from Continuing Operations to Income from Continuing Operations Excluding Streamlining Initiatives and Brand-Exiting Activities and Trademark Impairment and of Operating Income (Loss) to Income from Continuing Operations Excluding Streamlining Initiatives and Brand-Exiting Activities and Trademark Impairment.
Three Months Ended Nine Months Ended
October 4, September 29, October 4, September 29,
2008 2007 2008 2007
(13 weeks) (13 weeks) (40 weeks) (39 weeks)
(Loss) Income from
Continuing Operations $(9,419) $33,517 $(31,016) $49,273
Streamlining initiatives and
brand-exiting
activities(1) 35,533 31,013 144,470 61,761
Trademark impairment (2) 10,046 12,300 10,046 12,300
Benefit (provision) for
income taxes 190 (16,223) (45,517) (26,975)
Income from Continuing
Operations Excluding
Streamlining Initiatives
and Brand-Exiting
Activities and
Trademark Impairment $36,350 $60,607 $77,983 $96,359
Operating Income (Loss) $16,193 $70,873 $(17,911) $117,921
Streamlining initiatives and
brand-exiting
activities(1) 35,533 31,013 144,470 61,761
Trademark impairment (2) 10,046 12,300 10,046 12,300
Operating Income Excluding
Streamlining Initiatives and
Brand-Exiting Activities
and Trademark Impairment 61,772 114,186 136,605 191,982
Interest expense, net 12,050 11,739 33,922 30,126
Other (income) expense, net (798) 1,519 2,875 1,874
Provision for income taxes (14,170) (40,321) (21,825) (63,623)
Income from Continuing
Operations Excluding
Streamlining Initiatives
and Brand-Exiting
Activities and
Trademark Impairment $36,350 $60,607 $77,983 $96,359
Basic Earnings per Common
Share from Continuing
Operations Excluding
Streamlining Initiatives
and Brand-Exiting
Activities and Trademark
Impairment $0.39 $0.61 $0.83 $0.95
Diluted Earnings per Common
Share from Continuing
Operations Excluding
Streamlining Initiatives
and Brand-Exiting
Activities and Trademark
Impairment (3) $0.39 $0.60 $0.83 $0.94
(1) During the three and nine months ended
Three Months Ended Nine Months Ended
October September October September
4, 2008 29, 2007 4, 2008 29, 2007
(13 weeks) (13 weeks) (40 weeks) (39 weeks)
Payroll, lease
terminations
and asset write-downs $23,622 $21,328 $82,612 $48,698
Store closure and other
costs 11,911 9,685 61,858 13,063
$35,533 $31,013 $144,470 $61,761
(2) During 2008, the Company recorded a non-cash impairment charge of
(3) Amounts for the three and nine months ended
LIZ CLAIBORNE INC.
SEGMENT REPORTING
(All amounts in thousands)
(Unaudited)
Three Months Ended Three Months Ended
October 4, 2008 % to September 29, 2007 % to
(13 weeks) Total (13 weeks) Total
NET SALES:
Direct Brands $617,205 60.8% $628,705 52.1%
Partnered Brands 397,764 39.2% 578,014 47.9%
Total Net
Sales $1,014,969 100.0% $1,206,719 100.0%
Three Months Ended Three Months Ended
October 4, 2008 % to September 29, 2007 % to
(13 weeks) Sales (13 weeks) Sales
OPERATING INCOME:
Direct Brands $34,960 5.7% $87,046 13.8%
Partnered Brands (18,767) (4.7)% (16,173) (2.8)%
Total Operating
Income $16,193 1.6% $70,873 5.9%
Three Months Ended Three Months Ended
October 4, 2008 % to September 29, 2007 % to
(13 weeks) Total (13 weeks) Total
NET SALES:
Domestic $625,989 61.7% $788,058 65.3%
International 388,980 38.3% 418,661 34.7%
Total Net
Sales $1,014,969 100.0% $1,206,719 100.0%
Three Months Ended Three Months Ended
October 4, 2008 % to September 29, 2007 % to
(13 weeks) Sales (13 weeks) Sales
OPERATING INCOME:
Domestic $(5,976) (1.0)% $27,793 3.5%
International 22,169 5.7% 43,080 10.3%
Total Operating
Income $16,193 1.6% $70,873 5.9%
LIZ CLAIBORNE INC.
SEGMENT REPORTING
(All amounts in thousands)
(Unaudited)
Nine Months Ended Nine Months Ended
October 4, 2008 % to September 29, 2007 % to
(40 weeks) Total (39 weeks) Total
NET SALES:
Direct Brands $1,821,535 59.3% $1,608,376 49.2%
Partnered Brands 1,252,238 40.7% 1,661,523 50.8%
Total Net
Sales $3,073,773 100.0% $3,269,899 100.0%
Nine Months Ended Nine Months Ended
October 4, 2008 % to September 29, 2007 % to
(40 weeks) Sales (39 weeks) Sales
OPERATING (LOSS) INCOME:
Direct Brands $74,984 4.1% $166,870 10.4%
Partnered Brands (92,895) (7.4)% (48,949) (2.9)%
Total Operating
(Loss) Income $(17,911) (0.6)% $117,921 3.6%
Nine Months Ended Nine Months Ended
October 4, 2008 % to September 29, 2007 % to
(40 weeks) Total (39 weeks) Total
NET SALES:
Domestic $1,940,050 63.1% $2,184,873 66.8%
International 1,133,723 36.9% 1,085,026 33.2%
Total Net
Sales $3,073,773 100.0% $3,269,899 100.0%
Nine Months Ended Nine Months Ended
October 4, 2008 % to September 29, 2007 % to
(40 weeks) Sales (39 weeks) Sales
OPERATING (LOSS) INCOME:
Domestic $(54,821) (2.8)% $51,055 2.3%
International 36,910 3.3% 66,866 6.2%
Total Operating
(Loss) Income $(17,911) (0.6)% $117,921 3.6%
LIZ CLAIBORNE INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
SEGMENT REPORTING
(All amounts in thousands)
(Unaudited)
The following tables provide reconciliations of Net Sales to Adjusted Net
Sales, which excludes Store Closure and Brand-Exiting Activities and of
Operating Income (Loss) to Adjusted Operating Income, which excludes
Streamlining Initiatives and Brand-Exiting Activities and Trademark
Impairment.
Three Months Ended
October 4, 2008 (13 weeks)
Direct Partnered
Brands Brands Total
Net Sales:
As Reported $617,205 $397,764 $1,014,969
Store Closure and
Brand-Exiting Activities (1,820) 5,465 3,645
Adjusted Net Sales $615,385 $403,229 $1,018,614
Operating Income (Loss):
As Reported $34,960 $(18,767) $16,193
Trademark Impairment - 10,046 10,046
Streamlining Initiatives
and Brand-Exiting
Activities 17,595 17,938 35,533
Adjusted Operating Income $52,555 $9,217 $61,772
% of Adjusted Net Sales 8.5% 2.3% 6.1%
Three Months Ended
September 29, 2007 (13 weeks)
Direct Partnered
Brands Brands Total
Net Sales:
As Reported $628,705 $578,014 $1,206,719
Store Closure and
Brand-Exiting Activities - (1,930) (1,930)
Adjusted Net Sales $628,705 $576,084 $1,204,789
Operating Income (Loss):
As Reported $87,046 $(16,173) $70,873
Trademark Impairment - 12,300 12,300
Streamlining Initiatives
and Brand-Exiting
Activities 7,910 23,103 31,013
Adjusted Operating Income $94,956 $19,230 $114,186
% of Adjusted Net Sales 15.1% 3.3% 9.5%
LIZ CLAIBORNE INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
SEGMENT REPORTING
(All amounts in thousands)
(Unaudited)
The following tables provide reconciliations of Net Sales to Adjusted Net
Sales, which excludes Store Closure and Brand-Exiting Activities and of
Operating Income (Loss) to Adjusted Operating Income, which excludes
Streamlining Initiatives and Brand-Exiting Activities and Trademark
Impairment.
Nine Months Ended
October 4, 2008 (40 weeks)
Direct Partnered
Brands Brands Total
Net Sales:
As Reported $1,821,535 $1,252,238 $3,073,773
Store Closure and
Brand-Exiting Activities (7,552) (20,751) (28,303)
Adjusted Net Sales $1,813,983 $1,231,487 $3,045,470
Operating Income (Loss):
As Reported $74,984 $(92,895) $(17,911)
Trademark Impairment - 10,046 10,046
Streamlining Initiatives
and Brand-Exiting
Activities 43,868 100,602 144,470
Adjusted Operating Income $118,852 $17,753 $136,605
% of Adjusted Net Sales 6.6% 1.4% 4.5%
Nine Months Ended
September 29, 2007 (39 weeks)
Direct Partnered
Brands Brands Total
Net Sales:
As Reported $1,608,376 $1,661,523 $3,269,899
Store Closure and
Brand-Exiting Activities - (12,959) (12,959)
Adjusted Net Sales $1,608,376 $1,648,564 $3,256,940
Operating Income (Loss):
As Reported $166,870 $(48,949) $117,921
Trademark Impairment - 12,300 12,300
Streamlining Initiatives
and Brand-Exiting
Activities 13,810 47,951 61,761
Adjusted Operating Income $180,680 $11,302 $191,982
% of Adjusted Net Sales 11.2% 0.7% 5.9%
LIZ CLAIBORNE INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
SEGMENT REPORTING
(All amounts in thousands)
(Unaudited)
The following tables provide reconciliations of Net Sales to Adjusted Net
Sales, which excludes Store Closure and Brand-Exiting Activities and of
Operating (Loss) Income to Adjusted Operating Income, which excludes
Streamlining Initiatives and Brand-Exiting Activities and Trademark
Impairment.
Three Months Ended
October 4, 2008 (13 weeks)
Domestic International Total
Net Sales:
As Reported $625,989 $388,980 $1,014,969
Store Closure and
Brand-Exiting Activities 5,465 (1,820) 3,645
Adjusted Net Sales $631,454 $387,160 $1,018,614
Operating (Loss) Income:
As Reported $(5,976) $22,169 $16,193
Trademark Impairment 10,046 - 10,046
Streamlining Initiatives
and Brand-Exiting
Activities 19,106 16,427 35,533
Adjusted Operating Income $23,176 $38,596 $61,772
% of Adjusted Net Sales 3.7% 10.0% 6.1%
Three Months Ended
September 29, 2007 (13 weeks)
Domestic International Total
Net Sales:
As Reported $788,058 $418,661 $1,206,719
Store Closure and
Brand-Exiting Activities (1,930) - (1,930)
Adjusted Net Sales $786,128 $418,661 $1,204,789
Operating Income:
As Reported $27,793 $43,080 $70,873
Trademark Impairment 12,300 - 12,300
Streamlining Initiatives
and Brand-Exiting
Activities 21,984 9,029 31,013
Adjusted Operating Income $62,077 $52,109 $114,186
% of Adjusted Net Sales 7.9% 12.4% 9.5%
LIZ CLAIBORNE INC.
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
SEGMENT REPORTING
(All amounts in thousands)
(Unaudited)
The following tables provide reconciliations of Net Sales to Adjusted Net
Sales, which excludes Store Closure and Brand-Exiting Activities and of
Operating (Loss) Income to Adjusted Operating Income, which excludes
Streamlining Initiatives and Brand-Exiting Activities and Trademark
Impairment.
Nine Months Ended
October 4, 2008 (40 weeks)
Domestic International Total
Net Sales:
As Reported $1,940,050 $1,133,723 $3,073,773
Store Closure and
Brand-Exiting Activities (19,526) (8,777) (28,303)
Adjusted Net Sales $1,920,524 $1,124,946 $3,045,470
Operating (Loss) Income:
As Reported $(54,821) $36,910 $(17,911)
Trademark Impairment 10,046 - 10,046
Streamlining Initiatives
and Brand-Exiting
Activities 114,763 29,707 144,470
.
Adjusted Operating Income $69,988 $66,617 $136,605
% of Adjusted Net Sales 3.6% 5.9% 4.5%
Nine Months Ended
September 29, 2007 (39 weeks)
Domestic International Total
Net Sales:
As Reported $2,184,873 $1,085,026 $3,269,899
Store Closure and
Brand-Exiting Activities (12,959) - (12,959)
Adjusted Net Sales $2,171,914 $1,085,026 $3,256,940
Operating Income:
As Reported $51,055 $66,866 $117,921
Trademark Impairment 12,300 - 12,300
Streamlining Initiatives
and Brand-Exiting
Activities 45,739 16,022 61,761
Adjusted Operating Income $109,094 $82,888 $191,982
% of Adjusted Net Sales 5.0% 7.6% 5.9%
SOURCE Liz Claiborne Inc.
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