Liz Claiborne brand update, Reuters
I am hoping Phillips-Van Heusen, not Macy's, will be the Ellen Tracy or Dana Buchman buyer. Macy's simply doesn't make ET/DB's plus lines readily available in Bloomingdale's, which is Macy's upscale channel.
ET and DB used to be available in the Newport Beach and Century City Shops for Women; I had credit card bills to prove it.
Liz Claiborne brands seen as good buys for some
Thu Jul 12, 2007 2:45PM EDT
By Martinne Geller
NEW YORK, July 12 (Reuters) - Names of potential bidders for Liz Claiborne Inc.'s (LIZ.N:
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The brands, with estimated 2007 sales of about $800 million, could either be sold, discontinued or licensed to retailers or third-party operators, according to the company, whose eponymous founder died last month at age 78 after a battle with cancer.
The move had been expected as part of a make-over being instituted by Chief Executive Officer William McComb, who came on board less than a year ago. He is aiming to shift the company's focus from wholesale to retail by expanding a few high-growth brands and shedding many others.
Clothing designer Liz Claiborne, who started the company in 1976 with her husband and two partners, retired in 1989.
Credit Suisse analyst Michael Exstein said the possible Liz divestitures could present unique opportunities for apparel retailers, especially department stores, as they look for ways to differentiate themselves in a very competitive environment.
He said licensing companies such as Iconix Brand Group Inc. (ICON.O:
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Robert D'Loren, chief executive of NexCen, said the company, which manages brands such as The Athlete's Foot and Bill Blass, has been contacted by strategic partners to jointly consider potential opportunities with the Liz brands.
"NexCen is in an aggressive acquisition mode," D'Loren said in an e-mailed statement. "It will not overlook any market opportunities."
Iconix spokeswoman Maria Dolgetta said the company is always looking for acquisitions but declined to comment specifically on the Liz brands.
On the retail front, Credit Suisse's Exstein wrote that Macy's Inc. (M.N:
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"For a retailer like Wal-Mart, which continues to struggle to offer an apparel brand that resonates with its core consumer, buying an established brand such as Emma James could be a way to create relevancy with the customer," Exstein wrote in a research note.
"For other retailers, such as Macy's, that already offer brands such as Ellen Tracy, buying the brand outright could be a way to fully control the product distribution and create a competitive advantage by making the line an exclusive, thus taking the product away from competitors," Exstein wrote.
"Kohl's Corp. (KSS.N:
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Other exclusive lines that Liz is reviewing include First Issue, sold by Sears Holdings Corp. (SHLD.O:
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Melissa Otto, an analyst at WR Hambrecht & Co., pointed to Calvin Klein owner Phillips-Van Heusen Corp. (PVH.N:
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"We think Dana Buchman, Ellen Tracy and Sigrid Olsen would be complementary to PVH's IZOD and Calvin Klein women's lines that target a classic, affluent older consumer," Otto wrote in a research note. She also said those brands would give Phillips-Van Heusen exposure to customers who shop at high-end stores such as those operated by Nordstrom Inc. (JWN.N:
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"Additionally we think PVH's core wholesale, retail and Calvin Klein business initiatives are focused and running well, making the timing appropriate for new acquisitions," Otto said.
Macy's, J.C. Penney and Sears declined to comment, while Wal-Mart, Phillips-Van Heusen, Li & Fung, Kohl's and Dillard's were not immediately available.
Liz Claiborne said on Wednesday it expects to announce results of the review and formal plans for the brands by the second quarter of 2008. (Additional reporting by Sarah Coffey in New York, Karen Jacobs in Atlanta and Alexandria Sage in Los Angeles)
