Liz Keeps Growing Chains

NEW YORK CITY-Liz Claiborne plans to expand its specialty retail division to 100 to 125 stores annually for the foreseeable future despite a tough fourth quarter and planned streamlining of its overall business. The company could eventually support 1,400 domestic specialty stores in seven chains and possibly up to 2,000, up from its current total of 338, says Paul Charron, the company’s chairman and chief executive officer.

After reporting an earnings-per-share drop during its Q4, to 74 cents from 75 cents during the same year-ago period, Charron announced that the company will lay off 500 people and close 20 stores in its non-growth chains. Those moves should result in a savings of between $60 million and $65 million next year and help with the company’s acquisition and retail growth strategy, he says.

In the near term, the Liz chain that will see the biggest growth is 105-store Lucky Brand jeans chain, which is forecast of 35 to 40 US openings this year, as well as three to five in Europe (on top of its two units in the continent) and its first two in Canada. Its Sigrid Olsen chain, with 45 units, will come in second this year with 20 to 25 openings as well as two in Canada.