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| Liz Claiborne to cut underperforming brands |
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| Friday, 13 July 2007 | |
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US conglomerateLiz Claiborne Inc is expected to announce on Wednesday it is to downsize its portfolio
of brands by almost half as the group struggles with sluggish department stores sales. The 16 brands under review represent $800m of its $5bn in annual revenue and could include Sigrid Olsen, Prana, Ellen Tracy, Dana Buchman, Mac & Jac, Kenzie, Intuitions, C&C California, Enyce, Laundry, Tint, Stamp 10, First Issue, Emma James, Tapemeasure and J.H. Collectibles, according to The Wall Street Journal, citing people close to the company.
High performing brands, such as Juicy Couture, Couture Couture, DKNY Jeans and Lucky Brand. The move comes just weeks after the death of founder Liz Claiborne and as the US apparel giant enters a new phase creating two distinct divisions - Direct Brands, handling the powerful fast-growth names sold through its own stores; and Partnered Brands for those more-mature brands that are mainly available in department stores, according to WGSN. To further reduce its dependence on department store sales and better track customers' buying patterns, the company plans to open 300 more of its own stores by 2010 and improve its e-commerce operations. |