Liz Claiborne Inc. took whopping goodwill write-downs of $451 million in the quarter ending Dec. 29, which drove the group to a fourth-quarter loss of $435.7 million, or $4.55 a share, compared with net profits of $73.2 million in the fourth quarter of 2006.
"The company had accumulated significant goodwill balances in this segment in recent years resulting from its focus on acquisitions during that period," said Claiborne, which has spent the last year reviewing its brand portfolio. "Actual and projected performance and cash flows in this segment, as well as the impact of the sale or planned sale, licensing or closure of the brands under strategic review, no longer supported this goodwill balance."
Excluding the write-down for the brands the company has sold and other primarily wholesale brands it continues to own, results for the quarter were consistent with the losses the firm warned of a month ago.
At that time, Claiborne estimated losses per share would be in the range of 90 cents to $1.
Sales for the quarter slipped 3 percent to $1.21 billion from $1.25 billion, as 20 percent losses in partnered brands offset the 18 percent gains in the direct brands segment, which includes Juicy Couture.
"The fourth quarter proved to be very difficult for our partnered brands segment," said chief executive officer William L. McComb. "We made great progress managing inventories, but markdown pressure was significant. Our sales to Macy's department stores now represent less than 10 percent of our total net sales, and we have taken significant steps to improve this business by announcing the design initiatives with Isaac Mizrahi for the Liz Claiborne brand and John Bartlett for the Claiborne men's business, both for 2009. We've also taken action to improve the sales and earnings engine in partnered brands for 2009 through the announcement of the Dana Buchman launch at Kohl's."
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia