Liz Claiborne Inc. (LIZ, Financial) filed Quarterly Report for the period ended 2012-03-31.
Liz Claiborne has a market cap of $1.31 billion; its shares were traded at around $13.745 with and P/S ratio of 0.9.
Net sales for the first three months of 2012 were $317.1 million, a decrease of $13.6 million, or 4.1%, compared to net sales for the first three months of 2011. Excluding the impact of a $49.7 million decline in net sales related to brands that have been exited, net sales increased $36.1 million, or 10.9%. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
We recorded a loss from continuing operations of $51.7 million in the first three months of 2012, as compared to a loss from continuing operations of $53.0 million in the first three months of 2011. The period-over-period change primarily reflected: (i) a decrease in Other expense, net, which included foreign currency transaction losses of $2.2 million and $21.3 million in the first quarter of 2012 and 2011, respectively (see Financial Position, Liquidity and Capital Resources Hedging Activities); (ii) an increase in gross profit; (iii) an increase in Selling, general & administrative expenses (SG&A); and (iv) a loss on extinguishment of debt.
We ended the first three months of 2012 with a net debt position (total debt less cash and marketable securities) of $317.1 million as compared to $697.6 million at the end of the first three months of 2011. The $380.5 million decrease in our net debt primarily reflected: (i) the receipt of $470.7 million primarily from sales transactions (including $20.0 million received from JCPenney, which is refundable under certain circumstances); (ii) the repurchase of 268.5 million euro aggregate principal amount of our Euro Notes, partially offset by the issuance of the Senior Notes; (iii) the conversion of $20.8 million of our Convertible Notes into 6,163,221 shares of our common stock; and (iv) the funding of $77.8 million of capital and in-store shop expenditures over the last 12 months, including $23.0 million to purchase our Ohio distribution center. We also generated $109.6 million in cash from continuing operations over the past 12 months.
Net sales for the first quarter of 2012 were $317.1 million, a decrease of $13.6 million, or 4.1%, when compared to the first quarter of 2011. Excluding the impact of a $49.7 million decline in net sales related to brands that have been exited, net sales increased $36.1 million, or 10.9%. The decrease in net sales due to brands that have been exited related principally to the conclusion of: (i) wholesale sales in early 2012 for the former licensed DKNY® Jeans family of brands; (ii) AXCESS wholesale sales in Fall 2011; and (iii) licensing revenues related to the LIZ CLAIBORNE family of brands and the DANA BUCHMAN brand, due to the sales of the trademark rights for such brands in the fourth quarter of 2011. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
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Liz Claiborne has a market cap of $1.31 billion; its shares were traded at around $13.745 with and P/S ratio of 0.9.
Highlight of Business Operations:
The Companys equity in earnings of its equity investees was $0.1 million and $0.3 million in the first quarter of 2012 and 2011, respectively. As of March 31, 2012, December 31, 2011 and April 2, 2011, the Company recorded $21.0 million, $19.1 million and $13.7 million, respectively, related to its investments in equity investees, which was included in Other assets on the accompanying Condensed Consolidated Balance Sheets.Net sales for the first three months of 2012 were $317.1 million, a decrease of $13.6 million, or 4.1%, compared to net sales for the first three months of 2011. Excluding the impact of a $49.7 million decline in net sales related to brands that have been exited, net sales increased $36.1 million, or 10.9%. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
We recorded a loss from continuing operations of $51.7 million in the first three months of 2012, as compared to a loss from continuing operations of $53.0 million in the first three months of 2011. The period-over-period change primarily reflected: (i) a decrease in Other expense, net, which included foreign currency transaction losses of $2.2 million and $21.3 million in the first quarter of 2012 and 2011, respectively (see Financial Position, Liquidity and Capital Resources Hedging Activities); (ii) an increase in gross profit; (iii) an increase in Selling, general & administrative expenses (SG&A); and (iv) a loss on extinguishment of debt.
We ended the first three months of 2012 with a net debt position (total debt less cash and marketable securities) of $317.1 million as compared to $697.6 million at the end of the first three months of 2011. The $380.5 million decrease in our net debt primarily reflected: (i) the receipt of $470.7 million primarily from sales transactions (including $20.0 million received from JCPenney, which is refundable under certain circumstances); (ii) the repurchase of 268.5 million euro aggregate principal amount of our Euro Notes, partially offset by the issuance of the Senior Notes; (iii) the conversion of $20.8 million of our Convertible Notes into 6,163,221 shares of our common stock; and (iv) the funding of $77.8 million of capital and in-store shop expenditures over the last 12 months, including $23.0 million to purchase our Ohio distribution center. We also generated $109.6 million in cash from continuing operations over the past 12 months.
Net sales for the first quarter of 2012 were $317.1 million, a decrease of $13.6 million, or 4.1%, when compared to the first quarter of 2011. Excluding the impact of a $49.7 million decline in net sales related to brands that have been exited, net sales increased $36.1 million, or 10.9%. The decrease in net sales due to brands that have been exited related principally to the conclusion of: (i) wholesale sales in early 2012 for the former licensed DKNY® Jeans family of brands; (ii) AXCESS wholesale sales in Fall 2011; and (iii) licensing revenues related to the LIZ CLAIBORNE family of brands and the DANA BUCHMAN brand, due to the sales of the trademark rights for such brands in the fourth quarter of 2011. Net sales increased in our KATE SPADE and LUCKY BRAND segments, partially offset by a decline in net sales within our JUICY COUTURE segment.
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