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Claiborne Girds for Challenging '09

NEW YORK CITY-With fourth-quarter sales declines in the low double digits, the apparel retailer adjusts its expenses accordingly.

By Paul Bubny | Updated on March 04, 2009

NEW YORK CITY-Liz Claiborne Inc. took a net loss of $828.9 million in the fourth quarter ended Jan. 3 and anticipates that this year will bring more of the same, the apparel maker and retailer reported on Wednesday. The quarterly loss was deepened to $8.36 per share by $683 million in goodwill impairment charges.

The Q4 numbers accounted for much of the company’s 2008 net loss of $952 million, up from a full-year net loss of $373 million in 2007, according to financial statements. CEO William McComb notes in a statement that the Q4 operating environment was “extraordinarily difficult as consumer spending was further impacted by deteriorating economic conditions.”

Comparable-store sales for the company’s Juicy Couture, Lucky Brand and Kate Spade were each in the negative mid-teens while comps for Mexx, the international retail segment, were negative 12%. “The highly promotional retail environment also negatively impacted margins in both our retail and wholesale businesses,” McComb says in a statement.

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