By:By:

Chantal Pare Chantal Pare

Andrew GrantAndrew Grant

Ulrick ErilusUlrick Erilus

David David FoxFox

Liz Claiborne Inc.Liz Claiborne Inc.

““Designs and markets an extensive range of Designs and markets an extensive range of woman’s fashion apparel and accessories, woman’s fashion apparel and accessories, with versatile collections appropriate to with versatile collections appropriate to wearing occasions ranging from casual to wearing occasions ranging from casual to dressy. The company also designs and dressy. The company also designs and markets men’s apparel and furnishings, as markets men’s apparel and furnishings, as well as fragrances for women and men.” well as fragrances for women and men.”

source: Liz Claiborne Annual Reportsource: Liz Claiborne Annual Report

Presentation OutlinePresentation Outline

HistoryHistory Financial AnalysisFinancial Analysis CompetitorsCompetitors Product LinesProduct Lines SWOT AnalysisSWOT Analysis SubsidiariesSubsidiaries Core CompetenciesCore Competencies IssuesIssues StrategiesStrategies UpdateUpdate

HISTORY: The 70’s & 80’s HISTORY: The 70’s & 80’s

1976- Company Founded1976- Company Founded 1981- Went Public At $19/ share1981- Went Public At $19/ share 1985- Expansion into Men’s Clothing1985- Expansion into Men’s Clothing 1986- Joint Venture With Avon1986- Joint Venture With Avon 1988- Regained Full Rights From 1988- Regained Full Rights From

Avon ElizabethAvon Elizabeth 1989- Knit Sportswear Line1989- Knit Sportswear Line

HISTORY: The 90’SHISTORY: The 90’S

1990 - Established Shoe Division1990 - Established Shoe Division 1992 - Acquired Crazy Horse, Russ 1992 - Acquired Crazy Horse, Russ

Togs, & Togs, & Red Horse Red Horse 1993 - Earnings Plunged 42%, 1993 - Earnings Plunged 42%,

Sportswear Sportswear Collections Fell, Collections Fell, Consolidated Suit Consolidated Suit and and Dress DivisionDress Division

1995 - Introduced a New Line of 1995 - Introduced a New Line of Bedding & Bedding & Accessories Accessories

FINANCIAL ANALYSISFINANCIAL ANALYSIS

Net Sales ($Billions)

1997 1996

VF Corporation $5.220 $4.360Liz Claiborne $2.218 $2.145Jones Apparel Group, Inc. $1.387 $1.034

Sources: Income Statemements

FINANCIAL ANALISISFINANCIAL ANALISIS

FINANCIAL STRENGTHFINANCIAL STRENGTH

Current RatioCurrent RatioMost Recent Quarter

1997

VF Corporation $2.090Liz Claiborne $3.230Jones Apparel Group, Inc. $4.000

Sources: Income Statemements

FINANCIAL ANALISISFINANCIAL ANALISIS

FINANCIAL STRENGTHFINANCIAL STRENGTH

Total Debt/ Equity RatioTotal Debt/ Equity RatioMost Recent Quarter

1997

Liz Claiborne 0.000Jones Apparel Group, Inc. 0.060VF Corporation 0.280

Sources: Income Statemements

COMPETITORCOMPETITORSS

Jones Apparel Jones Apparel GroupGroup

ChausChaus

Evan PiconeEvan Picone

JH CollectiblesJH Collectibles

VF CorporationVF Corporation

PRODUCT LINESPRODUCT LINES

Women’s Women’s Men’sMen’s AccessoriesAccessories Home Home

FurnishingsFurnishings EyewearEyewear

JewelryJewelry FootwearFootwear HandbagsHandbags FragrancesFragrances CosmeticsCosmetics

SWOT ANALYSISSWOT ANALYSIS

STRENGTHSSTRENGTHS

Brand RecognitionBrand Recognition Understanding Customer NeedsUnderstanding Customer Needs ““SURF”SURF” New Product LinesNew Product Lines Advertising Scheme Advertising Scheme Product Diversification StrategyProduct Diversification Strategy Tailor to Changing Needs Preferences Tailor to Changing Needs Preferences

and Lifestylesand Lifestyles

WEAKNESSESWEAKNESSES

Changing Consumer NeedsChanging Consumer Needs Highly Competitive MarketHighly Competitive Market Long Lead Time Bringing New Long Lead Time Bringing New

Styles to MarketStyles to Market Clothing Line is Complete Success Clothing Line is Complete Success

or Costly Mistakeor Costly Mistake

OPPORTUNITESOPPORTUNITES

Overseas MarketsOverseas Markets Worldwide AdvertisingWorldwide Advertising Entering the Large Size Consumer Entering the Large Size Consumer

MarketMarket Designing Mix- and- Match OutfitsDesigning Mix- and- Match Outfits Men’s SportswearMen’s Sportswear

THREATSTHREATS

Key CompetitorsKey Competitors Strict Government RegulationsStrict Government Regulations Changing Shopping PatternsChanging Shopping Patterns Quota Restrictions Quota Restrictions

SUBSIDIARIESSUBSIDIARIES

WOMEN’S APPAREL, COSMETICS & WOMEN’S APPAREL, COSMETICS & ACCESSORIESACCESSORIES

CollectionCollection Crazy HorseCrazy Horse ElisabethElisabeth Liz & Co.Liz & Co. Dana BuchmanDana Buchman Liz ClaiborneLiz Claiborne

LizsportLizsport LizwearLizwear The VillagerThe Villager RussRuss Vivid (Fragrance)Vivid (Fragrance) Realities Realities

(Fragrance)(Fragrance)

CORE COMPETENCESCORE COMPETENCES

Systems Updated Retail Feedback Systems Updated Retail Feedback (SURF)(SURF)

Product DiversificationProduct Diversification StreamliningStreamlining Extending Seasonal MarketsExtending Seasonal Markets Continual Product DevelopingContinual Product Developing

ISSUESISSUES

Fashion RisksFashion Risks Long Lead TimeLong Lead Time Maintaining Customer & Brand Maintaining Customer & Brand

LoyaltyLoyalty

STRATEGIESSTRATEGIES

Product DifferentiationProduct Differentiation Horizontal IntegrationHorizontal Integration Market PenetrationMarket Penetration Product DevelopmentProduct Development

UPDATEUPDATE

Net Sales IncreaseNet Sales Increase EPSEPS President/CEOPresident/CEO New Perfume LineNew Perfume Line Acquired DKNYAcquired DKNY Liz Claiborne FoundationLiz Claiborne Foundation Realigned SourcingRealigned Sourcing