Exhibit 99.1
Investor Relations Contact: Media Contact:
Robert J. Vill Jane Randel
Vice President, Treasury and Vice President, Public Relations
Investor Relations
Liz Claiborne Inc. Liz Claiborne Inc.
201.295.7515 212.626.3408
LIZ CLAIBORNE INC. POSTS RECORD 3rd QUARTER SALES AND EPS
---------------------------------------------------------
New York, NY October 30, 2003 - Liz Claiborne Inc. (NYSE:LIZ) announced today
diluted earnings per share of $0.89 for the third quarter 2003, an increase of
14.1%, compared to diluted EPS of $0.78 for the third quarter 2002. Net sales
for the third quarter 2003 were a record $1.174 billion, up 12.8% over the
comparable 2002 period.
The Company will sponsor a conference call today at 10:00 am EST to discuss its
third quarter 2003 results. This call will be webcast to the general public and
can be accessed via the Investor Relations section of the Liz Claiborne website
at www.lizclaiborneinc.com. An archive of the webcast will be available through
Thursday, November 21, 2003.
Paul R. Charron, Chairman and Chief Executive Officer, stated: "We are pleased
to report these solid third quarter results which were driven by the strength of
our balanced and diversified portfolio, disciplined execution of our strategies
and a continued focus on expense control and working capital management. Despite
the challenging environment, we were able to achieve higher than planned sales,
enabling us to exceed our EPS expectation. Our balance sheet and cash flow
positions remain strong at the end of the quarter, providing us with the
flexibility to continue to execute our portfolio diversification strategy.
Performance in the third quarter was driven primarily by the acquisitions of
Ellen Tracy and Juicy Couture, growth in our Mexx business and new product
initiatives in our Special Markets sector. Our Sigrid Olsen, Claiborne Men's,
Dana Buchman, Jewelry and Fashion Accessories businesses also made solid
contributions."
Mr. Charron concluded: "Looking forward, for the fourth quarter of 2003, we are
optimistic that we can achieve a sales increase of 4 - 6% and EPS in the range
of $0.63 - $0.66. For the full year 2003, we are adjusting our sales guidance
from an increase of 11 - 13% to an increase of 14 - 15% and our EPS guidance
from a range of $2.49 - $2.55 to a range of $2.52 - $2.55. For fiscal 2004, we
will plan our business in accordance with the challenging and unsettled retail
environment. Current visibility indicates that we forecast a sales increase of 3
- - 6% and EPS in the range of $2.65 - $2.72. All of these forward looking
statements exclude the impact of any future acquisitions or stock repurchases."
THIRD QUARTER RESULTS
- ---------------------
Net Sales
- ---------
Net sales for the third quarter of 2003 were a record $1.174 billion, an
increase of $133 million, or 12.8%, over net sales for the third quarter of
2002. The acquisitions of Ellen Tracy (acquired September 30, 2002) and Juicy
Couture (acquired April 7, 2003) added approximately $92 million in net sales
during the quarter. Approximately $33 million of the increase in the quarter was
due to the impact of foreign currency exchange rate fluctuations, primarily as a
result of the strengthening of the euro. Net sales results for our business
segments are provided below:
o Wholesale Apparel net sales increased $103 million, or 14.5%, to $814
------------------
million. This result was primarily due to the following:
- The inclusion of $88 million of sales of our recently acquired Ellen
Tracy and Juicy Couture businesses;
- A $22 million increase resulting from foreign currency exchange rate
fluctuations in our international businesses;
- A $7 million sales decrease primarily reflecting a 11.8% decrease in
our core Liz Claiborne businesses, partially offset by increases
reflecting continued growth in Mexx Europe (exclusive of foreign
currency exchange rate fluctuations) and the introduction of new
products in our Special Markets sector.
o Wholesale Non-Apparel net sales were up $2 million, or 1.3%, to $148
----------------------
million primarily due to increases in our Fashion Accessories and Jewelry
businesses, partially offset by a decrease in our Cosmetics business.
Increases resulting from foreign currency exchange rate fluctuations were
not material in this segment.
o Retail net sales increased $27 million, or 14.9%, to $205 million. The
------
increase reflected the following:
- The inclusion of $4 million reflecting sales from our recently
acquired Ellen Tracy business;
- An $11 million increase resulting from foreign currency exchange rate
fluctuations in our international businesses;
- A $12 million sales increase primarily driven by higher comparable
store sales and the addition of eight new stores over the last twelve
months in our Lucky Brand Dungarees specialty retail business, as well
as sales increases primarily due to the addition of nine net new
specialty retail and outlet stores in our Mexx Europe business. These
gains were partially offset by the decreases related to the strategic
decision to close our domestic Liz Claiborne specialty retail stores.
These closures were completed by the end of the second quarter of
2003.
Comparable store sales were up 0.6% in our Outlet business and down 2.1%
overall in our Specialty Retail business. We ended the quarter with a total
of 263 outlet stores, 227 specialty retail stores and 513 international
concession stores.
o Corporate net sales, consisting of licensing revenue, increased $1 million
---------
to $7 million as a result of the inclusion of revenues from new licenses as
well as growth in revenues from existing licenses.
Gross Profit
- ------------
Gross profit increased $62 million, or 13.6%, to $520 million in the third
quarter of 2003 over the third quarter of 2002. Gross profit as a percent of net
sales increased to 44.3% in 2003 from 44.0% in 2002. The increasing gross profit
rate reflected a continued focus on inventory management and lower sourcing
costs partially offset by higher than planned markdown assistance. The
acquisitions of Ellen Tracy and Juicy Couture as well as continued growth in our
Mexx Europe business contributed to the rate increase, as these businesses run
at higher gross profit rates than the Company average.
Selling, General & Administrative Expenses
- ------------------------------------------
Selling, General & Administrative expenses ("SG&A") increased $37 million, or
11.6%, to $357 million, in the third quarter of 2003 over the third quarter of
2002. These expenses as a percent of net sales decreased to 30.4% in 2003 from
30.7% in 2002. The lower SG&A rate primarily reflected the favorable impact of
Company-wide expense control initiatives, partially offset by the increased
proportion of expenses related to our Mexx Europe business, which runs at a
higher SG&A rate than the Company average.
Operating Income
- ----------------
Operating income for the third quarter of 2003 was $163 million, an increase of
$25 million, or 18.1%, over last year. Operating income as a percent of net
sales increased to 13.9% in 2003 compared to 13.3% in 2002. The increase was the
result of lower sourcing costs, Company-wide inventory management and expense
reductions, partially offset by additional retailer markdown assistance.
Operating income by business segment is provided below:
o Wholesale Apparel operating income increased $18 million to $118 million
------------------
(14.4% of net sales) in 2003 compared to $99 million (14.0% of net sales)
in 2002, principally reflecting the inclusion of our recently acquired
Ellen Tracy and Juicy Couture businesses and increased profits in our Mexx
business, partially offset by reduced profits in our core Liz Claiborne
business as a result of lower sales volume and additional markdown
assistance as well as reduced profits in our Special Markets business as a
result of additional markdown assistance.
o Wholesale Non-Apparel operating income was $19 million (13.1% of net sales)
---------------------
in 2003 compared to $17 million (11.9% of net sales) in 2002, principally
due to increases in our Fashion Accessories and Jewelry businesses.
o Retail operating income increased $3 million to $21 million (10.1% of net
------
sales) in 2003 compared to $18 million (9.9% of net sales) in 2002,
principally reflecting an increase in profits from our Lucky Brand
Dungarees and Mexx Europe retail stores, partially offset by startup costs
associated with the opening of our new Mexx USA and Sigrid Olsen stores.
o Corporate operating income, primarily consisting of licensing operating
---------
income, increased $2 million to $6 million.
Net Interest Expense
- --------------------
Net interest expense in the third quarter of 2003 was $8 million, compared to $6
million in 2002, both of which were principally related to borrowings incurred
to finance our strategic initiatives, including acquisitions. Foreign currency
exchange rate fluctuations accounted for the majority of the increase.
Net Income
- ----------
Net income increased in the third quarter of 2003 to $98 million, or 8.3% of net
sales, from $83 million in the third quarter of 2002, or 8.0% of net sales.
Diluted earnings per common share increased 14.1% to $0.89 in 2003, up from
$0.78 in 2002. Our average diluted shares outstanding increased by 3.0 million
shares in the third quarter of 2003 on a period-to-period basis, to 110.3
million, as a result of the exercise of stock options and the effect of dilutive
securities.
NINE MONTH RESULTS
- ------------------
Net Sales
- ---------
Net sales for the nine months of 2003 were a record $3.209 billion, an increase
of $486 million, or 17.8% over net sales for the nine months of 2002. The
acquisitions of Ellen Tracy and Juicy Couture and the inclusion of a full
nine-month's sales for our recently acquired Mexx Canada business (acquired July
9, 2002) added approximately $224 million in net sales for the nine months.
Approximately $105 million of the nine-month increase was due to the impact of
foreign currency exchange rate fluctuations, primarily as a result of the
strengthening of the euro. While the nine months of 2003 was comprised of 40
weeks, as compared to 39 weeks in 2002, we do not believe this extra week had a
material impact on our overall sales results for the nine months. Net sales
results for our business segments are provided below:
o Wholesale Apparel net sales increased $354 million, or 19.0%, to $2.212
------------------
billion. The increase was primarily due to the following:
- The inclusion of $181 million of sales of our recently acquired Ellen
Tracy and Juicy Couture businesses;
- A $63 million increase resulting from foreign currency exchange rate
fluctuations in our international businesses;
- A $110 million overall sales increase driven by continued growth in
our Mexx Europe business (excluding the impact of foreign currency
exchange rate fluctuations), increases in our Special Markets business
primarily reflecting the introduction of new products as well as
increases in our Sigrid Olsen business, partially offset by an
approximate 6.4% decrease in our core Liz Claiborne business.
o Wholesale Non-Apparel net sales were up $38 million, or 10.9%, to $386
----------------------
million primarily as a result of increases in our Jewelry and Handbags
businesses, partially offset by a sales decrease in our Cosmetics business.
Increases resulting from foreign currency exchange rate fluctuations were
not material in this segment.
o Retail net sales increased $87 million, or 17.3%, to $589 million. The
------
increase reflected the following:
- The inclusion of $36 million of sales from our recently acquired Ellen
Tracy business and a full nine-month's sales from our recently
acquired Mexx Canada business;
- A $38 million increase resulting from foreign currency exchange rate
fluctuations in our international businesses;
- A $13 million increase primarily due to the addition of new stores,
partially offset by the decreases related to the strategic decision to
close the domestic Liz Claiborne specialty stores (which were closed
by the end of the second quarter of 2003).
Comparable store sales overall were down 0.8% in our Specialty Retail
business and were down 2.0% in our Outlet business.
o Corporate net sales, consisting of licensing revenue, increased $7 million
---------
to $22 million as a result of the inclusion of revenues from new licenses
as well as growth in revenues from existing licenses.
Gross Profit
- ------------
Gross profit increased $225 million, or 19.1%, to $1.401 billion in the nine
months of 2003 over the nine months of 2002. Gross profit as a percent of net
sales increased to 43.7% in 2003 from 43.2% in 2002. The increasing gross profit
rate reflected a continued focus on inventory management and lower sourcing
costs partially offset by higher than planned promotional activity at retail
resulting in additional markdown assistance. The acquisitions of Ellen Tracy and
Juicy Couture also contributed to the rate increase, as these businesses run at
higher gross profit rates than the Company average.
Selling, General & Administrative Expenses
- ------------------------------------------
SG&A increased $167 million, or 18.8%, to $1.053 billion in the nine months of
2003. These expenses as a percent of net sales increased to 32.8% in 2003 from
32.5% in 2002. The higher SG&A rate primarily reflected the increased proportion
of expenses related to our Mexx Europe business, which runs at a higher SG&A
rate than the Company average, partially offset by the favorable impact of
Company-wide expense control initiatives.
Operating Income
- ----------------
Operating income for the nine months of 2003 was $349 million, an increase of
$58 million, or 20.0%, over last year. Operating income as a percent of net
sales increased to 10.9% in 2003 compared to 10.7% in 2002. Operating income by
business segment is provided below:
o Wholesale Apparel operating income increased $32 million to $249 million
------------------
(11.3% of net sales) in 2003 compared to $218 million (11.7% of net sales)
in 2002, principally reflecting the inclusion of our recently acquired
businesses and increased profits in our Sigrid Olsen, Mexx Europe and Men's
businesses, partially offset by reduced profits in our core Liz Claiborne
business.
o Wholesale Non-Apparel operating income increased $11 million to $35 million
---------------------
(9.2% of net sales) in 2003 compared to $24 million (7.0% of net sales) in
2002, principally due to increases in our Cosmetics and Jewelry businesses.
o Retail operating income increased $8 million to $49 million (8.2% of net
------
sales) in 2003 compared to $40 million (8.0% of net sales) in 2002,
principally reflecting increased gross profit rates in our outlet stores
and an increase in profits from our Mexx Europe retail stores, partially
offset by startup costs associated with the opening of our new Mexx USA and
Sigrid Olsen stores.
o Corporate operating income, primarily consisting of licensing operating
---------
income, increased $7 million to $15 million.
Net Interest Expense
- --------------------
Net interest expense in the nine months of 2003 was $23 million, compared to $18
million in 2002, both of which were principally related to borrowings incurred
to finance our strategic initiatives, including acquisitions. Foreign currency
exchange rate fluctuations accounted for the majority of the increase.
Net Income
- ----------
Net income increased in the nine months of 2003 to $207 million, or 6.4% of net
sales, from $173 million in the nine months of 2002, or 6.4% of net sales.
Diluted earnings per common share increased 16.7% to $1.89 in 2003, up from
$1.62 in 2002. Our average diluted shares outstanding increased by 2.2 million
shares in the nine months of 2003 on a period-to-period basis, to 109.3 million,
as a result of the exercise of stock options and the effect of dilutive
securities.
BALANCE SHEET AND CASH FLOW
- ---------------------------
We ended the third quarter of 2003 with $168 million in cash and marketable
securities, compared to $257 million at September 28, 2002, and with $453
million of debt outstanding compared to $454 million at September 28, 2002. This
$88 million increase in our net debt position is primarily attributable to the
2002 acquisition of Ellen Tracy, the current year acquisition of Juicy Couture,
additional payments made in connection with the acquisitions of Lucky Brand
Dungarees and Mexx Canada, the differences in working capital discussed below
and the foreign currency exchange translation on our Eurobond which added $64
million to our debt balance, partially offset by cash flow from operations on a
trailing twelve-month basis of $305 million. We ended the quarter with a record
$1.515 billion in stockholders equity, giving us a total debt to total capital
ratio of 23.0%.
Accounts receivable increased $47 million, or 8.6%, at October 4, 2003 compared
to September 28, 2002, primarily due to the acquisitions of Ellen Tracy and
Juicy Couture as well as an increase of $20 million attributable to foreign
currency exchange rate fluctuations. The quality of our accounts receivable
remains strong.
Inventories increased $53 million, or 11.1%, at October 4, 2003 compared to
September 28, 2002. The acquisitions of Ellen Tracy and Juicy Couture as well as
new lines of business were responsible for $36 million of the increase. Foreign
currency exchange rate fluctuations accounted for $22 million of the increase.
Our average inventory turnover rate increased to 4.8 times for the 12-month
period ended October 4, 2003 from 4.5 times for the 12-month period ended
September 28, 2002.
Net cash provided by operating activities was $15 million in the first nine
months of 2003, compared to $132 million provided in 2002. This $117 million
change in cash flow was primarily due to a $289 million use of cash for working
capital in 2003 compared to a $123 million use in 2002, driven primarily by
year-over-year changes in the accounts receivable and inventory balances
described above, partially offset by the increase in net income of $33 million
in the first nine months of 2003 from the first nine months of 2002.
Net cash used in investing activities was $179 million in the first nine months
of 2003, compared to $99 million in 2002. Net cash used in the first nine months
of 2003 primarily reflected $101 million in acquisition-related payments and $78
million in capital and in-store expenditures. Net cash used in the first nine
months of 2002 primarily reflected $74 million in capital and in-store
expenditures and $27 million for the purchase of Mexx Canada.
FORWARD OUTLOOK
- ---------------
For the fourth quarter of 2003, we are optimistic that we can achieve a sales
increase of 4 - 6% and EPS in the range of $0.63 - $0.66. For the full year
2003, we are adjusting our sales guidance from an increase of 11 - 13% to an
increase of 14 - 15% and our EPS guidance from a range of $2.49 - $2.55 to a
range of $2.52 - $2.55.
For fiscal 2004, we forecast a net sales increase of 3 - 6%, an operating margin
in the range of 11.2% - 11.4% and EPS in the range of $2.65 - $2.72.
o In our wholesale apparel segment, we expect fiscal 2004 net sales to
be in the range of flat to up low single digits, primarily driven by
increases in our Juicy Couture, Mexx Europe, DKNY licensed, Sigrid
Olsen and Lucky Brand businesses, offset by decreases in our core Liz
Claiborne and Special Markets businesses.
o In our wholesale non-apparel segment, we expect fiscal 2004 net sales
to increase in the range of the low to mid single digits, primarily
driven by increases from recent product launches as well as increases
in our Jewelry business.
o In our retail segment, we expect fiscal 2004 net sales to increase in
the range of the mid to upper teens, primarily driven by increases in
our Lucky Brand and Mexx Europe businesses as well as the conservative
rollout of the Mexx USA and Sigrid Olsen formats which were introduced
in the second half of fiscal 2003, partially offset by decreases
related to the fiscal 2003 closure of our domestic Liz Claiborne
specialty stores.
o In our corporate segment, we expect fiscal 2004 licensing revenue to
be in the $30 million range.
All of these forward-looking statements exclude the impact of any future
acquisitions or 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 Axcess, Bora Bora, Claiborne, Crazy Horse,
Curve, Dana Buchman, Elisabeth, Ellen Tracy, Emma James, First Issue, J.H.
Collectibles, Juicy Couture, Laundry by Shelli Segal, Liz Claiborne, Lucky
Brand, Mambo, Marvella, Mexx, Monet, Monet 2, Realities, Sigrid Olsen, Spark,
Trifari 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, as well as CITY DKNY(R) better women's sportswear in
the Western Hemisphere. The Company also has the exclusive license to produce
women's wear under the Kenneth Cole New York, Unlisted 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 2003 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 and the levels of customer traffic within department stores, malls and
other shopping and selling environments; 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; risks associated with acquisitions,
licensing and the entry into new markets, including risks relating to
integration of acquisitions, retaining and motivating key personnel of acquired
businesses and achieving projected or satisfactory levels of sales, profits
and/or return on investment; 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, legal and other conditions affecting foreign operations,
sourcing or international trade, including foreign currency exchange rate
fluctuations; risks associated with war, the threat of war and terrorist
activities; work stoppages by suppliers or service providers, such as the recent
West Coast port workers lock-out; risks relating to protecting and managing
intellectual property; 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 2002 Annual Report on Form 10-K,
including, without limitation, those set forth under the heading
"Business-Competition; Certain Risks" and under the heading "Statement Regarding
Forward-Looking Statements". 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.
Financial tables attached
LIZ CLAIBORNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(All amounts in thousands except per share data)
(Unaudited)
13 weeks ended 13 weeks ended 40 weeks ended 39 weeks ended
October 4, September 28, October 4, September 28,
2003 2002 2003 2002
---- ---- ---- ----
Net Sales $ 1,174,192 $ 1,041,200 $ 3,209,208 $ 2,723,610
Cost of Goods Sold 654,303 583,558 1,807,775 1,547,239
------------ ------------ ------------ ------------
Gross Profit 519,889 457,642 1,401,433 1,176,371
Selling, General & Administrative
Expenses 356,803 319,573 1,052,517 885,592
------------ ------------ ------------ ------------
Operating Income 163,086 138,069 348,916 290,779
Other (Expense) Income, net (1,804) (1,268) (2,360) (2,182)
Interest (Expense), net (7,866) (6,348) (22,689) (17,961)
------------ ------------ ------------ ------------
Income Before Provision
for Income Taxes 153,416 130,453 323,867 270,636
Income Tax Provision 55,537 46,963 117,240 97,429
------------ ------------ ------------ ------------
Net Income $ 97,879 $ 83,490 $ 206,627 $ 173,207
============ ============ ============ ============
Weighted Average Common Shares
Outstanding 107,959 105,862 107,187 105,447
Basic Earnings per Common
Share $0.91 $0.79 $1.93 $1.64
===== ===== ===== =====
Weighted Average Common Shares and
Share Equivalents Outstanding 110,325 107,329 109,275 107,035
Diluted Earnings per Common Share $0.89 $0.78 $1.89 $1.62
===== ===== ===== =====
Supplemental Information:
Dividends per Common Share (Rounded
to the nearest penny) $0.06 $0.06 $0.17 $0.17
===== ===== ===== =====
LIZ CLAIBORNE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(All dollar amounts in thousands)
(Unaudited)
October 4, September 28,
2003 2002
---- ----
Assets
- ------
Current Assets:
Cash and cash equivalents $ 120,571 $ 218,911
Marketable securities 47,603 37,618
Accounts receivable - trade, net 596,121 548,900
Inventories, net 529,443 476,361
Deferred income taxes 44,171 40,292
Other current assets 72,658 40,561
------------ ------------
Total Current Assets 1,410,567 1,362,643
------------ ------------
Property and Equipment - Net 400,701 372,200
Goodwill and Intangibles - Net 736,302 523,740
Other Assets 6,877 7,597
------------ ------------
Total Assets $ 2,554,447 $ 2,266,180
------------- ============ ============
Liabilities and Stockholders' Equity
- ------------------------------------
Current Liabilities $ 541,464 $ 520,707
Long-Term Debt 434,238 454,134
Other Non-Current Liabilities 7,734 5,478
Deferred Income Taxes 46,618 49,629
Commitments and Contingencies
Minority Interest 9,168 6,823
Stockholders' Equity 1,515,225 1,229,409
------------ ------------
Total Liabilities and Stockholders' Equity $ 2,554,447 $ 2,266,180
------------------------------------------ ============ ============
LIZ CLAIBORNE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All dollar amounts in thousands)
(Unaudited)
40 weeks ended 39 weeks ended
October 4, September 28,
2003 2002
---- ----
Cash Flows from Operating Activities:
Net income $ 206,627 $ 173,207
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 77,413 70,640
Deferred income taxes 10,719 8,373
Other - net 9,317 2,777
Change in current assets and liabilities, exclusive of
acquisitions:
(Increase) in accounts receivable - trade (212,085) (184,856)
(Increase) decrease in inventories (56,110) 24,151
(Increase) in other current assets (19,546) (159)
(Decrease) in accounts payable (12,672) (18,838)
(Decrease) increase in accrued expenses (5,095) 24,300
Increase in income taxes payable 16,756 32,389
------------ ------------
Net cash provided by operating activities 15,324 131,984
------------ ------------
Cash Flows from Investing Activities:
Purchases of investment instruments (64) (62)
Purchases of property and equipment (72,506) (65,939)
Payments for acquisitions (101,138) (26,517)
Payments for in-store merchandise shops (5,390) (7,602)
Other - net 424 966
------------ ------------
Net cash used in investing activities (178,674) (99,154)
------------ ------------
Cash Flows from Financing Activities:
(Payments for) proceeds from short-term debt (3,676) 242
Commercial paper - net 15,314 34,540
Proceeds from exercise of common stock options 39,100 28,398
Dividends paid (18,114) (17,819)
------------ ------------
Net cash provided by financing activities 32,624 45,361
------------ ------------
Effect of Exchange Rate Changes on Cash 11,773 13,085
------------ ------------
Net Change in Cash and Cash Equivalents (118,953) 91,276
Cash and Cash Equivalents at Beginning of Period 239,524 127,635
------------ ------------
Cash and Cash Equivalents at End of Period $ 120,571 $ 218,911
============ ============
LIZ CLAIBORNE, INC.
SEGMENT REPORTING
(All dollar amounts in thousands)
(Unaudited)
13 weeks ended 13 weeks ended 40 weeks ended 39 weeks ended
October 4, September 28, October 4, September 28,
2003 2002 2003 2002
---- ---- ---- ----
NET SALES:
Wholesale Apparel $ 814,406 $ 711,224 $ 2,211,945 $ 1,858,133
Wholesale Non-Apparel 147,703 145,848 386,269 348,174
Retail 204,909 178,382 588,630 501,782
Corporate 7,174 5,746 22,364 15,521
------------ ------------ ------------ ------------
Total net sales $ 1,174,192 $ 1,041,200 $ 3,209,208 $ 2,723,610
============ ============ ============ ============
OPERATING INCOME:
Wholesale Apparel $ 117,527 $ 99,466 $ 249,485 $ 217,825
Wholesale Non-Apparel 19,327 17,391 35,403 24,381
Retail 20,610 17,644 48,537 40,347
Corporate 5,622 3,568 15,491 8,226
------------ ------------ ------------ ------------
Total operating income $ 163,086 $ 138,069 $ 348,916 $ 290,779
============ ============ ============ ============