Liz Claiborne Tries On New Distribution Strategy

Liz Claiborne Inc. announces bold steps to further the revitalization of the Liz Claiborne brand franchise and to significantly alter its earnings trajectory. To accomplish this, the company entered into a long-term licensing agreement with J. C. Penney Company Inc., under which JCPenney will become the exclusive department store destination for all Liz Claiborne and Claiborne branded merchandise in the United States and Puerto Rico.

 

Commenting on the JCPenney strategic partnership, Liz Claiborne Inc. chief executive officer William L. McComb says: "After two very successful years partnering with JCPenney, we decided it was time to take it to the next level. By simplifying our model and working with them as our exclusive department store partner, we can reach the consumer and profitably manage the future of this iconic brand."

 

The other important element of this strategy is moving the distribution of the Liz Claiborne New York brand designed by Isaac Mizrahi to QVC. As a result of these agreements, the company expects the Liz Claiborne wholesale brand franchise to swing from a meaningful adjusted operating loss in 2009 to a targeted adjusted operating profit in 2010.

 

Regarding the move to QVC, McComb says: "In order for us to fully capitalize on the Liz Claiborne New York brand's vast equity with consumers, we needed to find a more productive distribution strategy. Given QVC's rich, brand-enhancing selling environment and its extremely consumer-centric culture, as well as its recent announcement to support the launch of the comprehensive lifestyle collection IsaacMizrahiLive!, QVC is ideal for Liz Claiborne New York."