Despite an increase in sales, Liz Claiborne Inc. saw its earnings fall both for its fourth quarter and year due to streamlining costs.
For the quarter ending Dec. 30, Claiborne’s net income dropped 6.6 percent to $73.2 million from $78.3 million. Its diluted earnings per share fell to 71 cents from 74 cents. Excluding the charge of 23 cents per share for restructuring expenses, Claiborne earned 94 cents per diluted share — in line with company estimates.
Buoyed by its acquisition of Kate Spade, Claiborne’s sales jumped 10.8 percent to $1.33 billion from $1.20 billion in the corresponding quarter in 2005.
For the full fiscal year, earnings fell just shy of 20 percent to $254.7 million from $317.4 million in fiscal year 2005. Diluted earnings per share gained a nickel to $2.99 from $2.94. Sales for the fiscal year increased 3 percent to $4.99 billion from $4.85 billion.
The apparel giant said it is ceasing to provide quarterly earnings guidance, but that after completing an ongoing review of restructuring operations in July, it will issue earnings guidance for fiscal year 2007.
For complete coverage see tomorrow’s issue of WWD.