Exhibit 99.1
Investor Relations Contact: Media Contact:
Robert J. Vill Jane Randel
Vice President, Treasury Vice President,
and Investor Relations Public Relations
Liz Claiborne Inc. Liz Claiborne Inc.
201.295.7515 212.626.3408
LIZ CLAIBORNE INC. POSTS RECORD 2nd QUARTER 2001 SALES AND EPS
New York, NY July 19, 2001 - Liz Claiborne Inc. (NYSE:LIZ) announced
today diluted earnings per share of $0.62 for the second quarter 2001, an
increase of 6.9% compared to diluted EPS of $0.58 for the second quarter 2000.
Net sales for the second quarter 2001 were $727.0 million, up 9.9% over the
comparable 2000 period. Year to date, excluding the impact of a special
investment gain in 2000 of $3.0 million or $0.03 per share on an after-tax
basis, diluted EPS was $1.49, an increase of 8.0% compared to diluted EPS of
$1.38 for the first six months of 2000. Net sales were a record $1.554 billion
for the first six months of 2001 compared to $1.471 billion for the comparable
2000 period, a 5.6% increase.
Paul R. Charron, Chairman and Chief Executive Officer, stated: "We are
pleased to report our second quarter results, which represent Liz Claiborne's
twenty-second consecutive quarter of sales growth and our twenty-sixth
consecutive quarter of growth in earnings per share (before restructuring
charges and special investment gains). We continued the execution of our
multi-brand, multi-channel diversification strategy in the second quarter with
the announcement of our acquisition of Mexx Group B.V., a pan-European fashion
apparel and accessories company based in the Netherlands."
Mr. Charron continued: "Our ability to successfully execute this
strategy enabled us to achieve our second quarter sales and EPS levels despite
the continuing significant challenges of the current macroeconomic and retail
environments. For fiscal 2001, we reaffirm our previous guidance, remaining
optimistic that we can achieve a 12.5% to 14.5% sales increase and a 12.5% to
14.5% increase in EPS, excluding last year's restructuring charges and special
investment gain or any future stock repurchases. For the third quarter of 2001,
we are optimistic that we can achieve sales and EPS increases in the mid teens,
excluding the impact of last year's restructuring charges and special investment
gain or any future stock repurchases. For the fourth quarter of 2001, we are
optimistic that we can achieve a low twenty percent sales increase and an EPS
increase in the mid teens, excluding the impact of last year's restructuring
charges and special investment gain or any future stock repurchases."
Liz Claiborne Inc. designs and markets an extensive range of women's
and men's fashion apparel and accessories appropriate to wearing occasions
ranging from casual to dressy. The Company also markets fragrances for women and
men. Liz Claiborne Inc.'s brands include - Claiborne, Crazy Horse, Curve, Dana
Buchman, Elisabeth, Emma James, First Issue, Laundry by
- more -
Shelli Segal, Liz Claiborne, Lucky Brand, Meg Allen, Mexx, Monet, Russ, Sigrid
Olsen and Villager. In addition, Liz Claiborne Inc. holds the exclusive,
long-term license to produce and sell men's and women's collections of DKNY(R)
Jeans and DKNY(R) Active in the Western Hemisphere, as well as CITY DKNY(R)
better women's sportswear. The Company also has the exclusive license to produce
and sell women's sportswear under the Kenneth Cole New York, Unlisted.com and
Reaction Kenneth Cole brand names.
Statements contained herein that relate to the Company's future
performance, including, without limitation, statements with respect to the
Company's anticipated results of operations or level of business for 2001 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 subject to certain
risks, uncertainties and assumptions. 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. Among the factors that could cause actual results to materially
differ include changes in regional, national, and global micro and
macro-economic conditions, including the levels of consumer confidence and
spending; risks related to retailer and consumer acceptance of the Company's
products; risks associated with competition and the marketplace, including the
financial condition of, and consolidations, restructurings and other ownership
changes in, the apparel (and related products) industry and the retail industry,
the introduction of new products or pricing changes by the Company's
competitors, the Company's ability to effectively remain competitive with
respect to product, value and service; risks associated with the Company's
dependence on sales to a limited number of large department store customers,
including risks related to customer requirements for vendor margin support, and
those related to extending credit to customers; the Company's ability to
correctly balance the level of its commitments with actual orders; the Company's
ability to effectively distribute its product within its targeted markets;
uncertainties relating to the Company's ability to successfully implement its
growth strategies, integrate acquisitions, maintain product licenses, or
successfully launch new products and lines; risks associated with the entry into
new markets, either through internal development activities or acquisitions;
risks associated with the possible inability of the Company's unaffiliated
manufacturers to manufacture and deliver products in a timely manner, to meet
quality standards or to comply with the Company's policies regarding labor
practices; risks associated with changes in social, political, economic and
other conditions affecting foreign operations and sourcing, including currency
rate fluctuations; and such other economic, competitive, governmental and
technological factors affecting the Company's operations, markets, products,
services and prices as are set forth in our 2000 Annual Report on Form 10-K,
including, without limitation, those set forth under the heading
"Business-Competition; Certain Risks". The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
The Company will sponsor a conference call today at 10:00 am EDT to
discuss its second quarter 2001 results. This call will be webcast to the
general public and can be accessed at www.vcall.com or via the Liz Claiborne
website at www.lizclaiborne.com.
Financial table attached
LIZ CLAIBORNE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
06/30/2001 07/01/2000 06/30/2001 07/01/2000
---------- ---------- ---------- ----------
Net Sales $727,035 $661,667 $1,553,685 $1,471,126
Cost of Goods Sold 418,796 393,913 922,584 900,498
------- ------- ------- -------
Gross Profit 308,239 267,754 631,101 570,628
Selling, General & Administrative
Expenses 250,019 214,802 495,180 443,331
------- ------- ------- -------
Operating Income 58,220 52,952 135,921 127,297
Other (Expense) Income, net (1,335) 19 (2,286) 2,318
Interest (Expense), net (6,156) (3,827) (11,812) (7,828)
------- ------- -------- -------
Income Before Provision
for Income Taxes 50,729 49,144 121,823 121,787
Income Tax Provision 18,262 17,692 43,856 43,843
------ ------ ------ ------
Net Income $32,467 $31,452 $77,967 $77,944
======= ======= ======= =======
Weighted Average Common Shares
Outstanding 52,116 54,049 51,868 54,510
Basic Earnings per Common
Share $0.62 $0.58 $1.50 $1.43
===== ===== ===== =====
Weighted Average Common Shares and
Share Equivalents Outstanding 52,626 54,525 52,436 54,910
Diluted Earnings per Common Share $0.62 $0.58 $1.49 $1.42
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Supplemental Information:
Diluted Earnings per Common Share
Excluding Special Investment Gain $0.62 $0.58 $1.49 $1.38
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Dividends per Common Share (Rounded
to the nearest penny) $0.11 $0.11 $0.23 $0.23
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