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Liz Claiborne poised for Mizrahi-led revival

Zac Bissonnette — Fri, 22 Aug 2008 16:30:00 EST

Filed under: Marketing and Advertising, Liz Claiborne (LIZ)

I've been expressing my long-term bullishness on Liz Claiborne, Inc. (NYSE: LIZ) since the company announced that Isaac Mizrahi would be taking over as creative director for its flagship brand. The stock is down a little since that announcement back in January, but with the re-launch under Mizrahi's direction scheduled to hit stores in February, investors could start bearing the fruits of that deal soon.

A piece (subscription required) in yesterday's Wall Street Journal looked at Mizrahi and his plans for the Liz Claiborne brand, which has seen its sales decline by about 50% so far this decade: "The collection includes modern styles like cork-covered high heels and oversize tote bags in soft neutrals, metallics and bright colors, according to two people who were there. The designs also incorporate an updated Liz Claiborne logo."

Goldman Sachs analyst Benjamin Rowbotham called the relaunch "the single most important issue" for the company, and Liz Claiborne has reportedly given Mizrahi a rare level of creative freedom in reviving its brand.

Liz Claiborne has struggled of late, even more so than the industry at large, but remember: Mizrahi made Target Corporation (NYSE: TGT) a cool place to shop for clothes. With the stock trading in the bargain basement, Mizrahi's new collection offers savvy investors tremendous upside potential.

Liz Claiborne poised for Mizrahi-led revival originally appeared on BloggingStocks on Fri, 22 Aug 2008 16:30:00 EST. Please see our terms for use of feeds.

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Liz Claiborne looks interesting. Two words: Isaac Mizrahi

Zac Bissonnette — Fri, 15 Aug 2008 14:42:00 EST

Filed under: Liz Claiborne (LIZ)

Shares of Liz Claiborne (NYSE: LIZ) tumbled this week on an even weaker than expected second quarter earnings report, but the stock has since moved back to where it was before the release. Still: it's trading at $14.85, compared with the $40+ per share it was fetching in early 2007.

Suffice it to say, investors are skeptical about the company's prospects for a turnaround. The company said it expects to earn $1.40-$1.50 per share for 2008 so the price/earnings ratio is in the 10-range.

But there could be reason to expect tremendous upside over the long-term: back in January, the company signed legendary designer Isaac Mizrahi. At the time, I wrote that "If anyone can save the struggling fashion house, it's the man they just signed to be creative director of the company's flagship brand: Isaac Mizrahi. You can be sure he didn't come cheap, but he's just what they need. After all, this is the guy who actually managed to make Target (NYSE: TGT) a cool place to shop for clothes."

Continue reading Liz Claiborne looks interesting. Two words: Isaac Mizrahi

Liz Claiborne looks interesting. Two words: Isaac Mizrahi originally appeared on BloggingStocks on Fri, 15 Aug 2008 14:42:00 EST. Please see our terms for use of feeds.

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Another reason why the economy may not benefit from stimulus checks

Jonathan Berr — Wed, 25 Jun 2008 10:44:00 EST

Filed under: Target Corp. (TGT), Coach Inc (COH), Economic Data, Recession

Some people waiting for their economic stimulus checks may be in for a shock.

According to USA Today, about $2 billion in payments from 1.8 million checks are being confiscated from people who owe child support, student loans and back taxes. Taxpayers get letters from the government explaining why their bank accounts are not being stimulated and so far few have complained, according to a Treasury Department official quoted by the newspaper.

I am all for making sure that children get the financial support they deserve. People also should not be able to dodge student loan payments or tax bills. The government, though, cannot impose a one-size-fits-all solution. For instance, what if someone is laid off and is already behind in their bills? The economic stimulus is supposed to help people in need, right?

Though the economic stimulus checks have helped boost retail sales, investors should keep their expectations in check. Many of the people I know are using their stimulus checks to pay bills, not buy big-screen televisions. A good portion of my stimulus is going right back to Uncle Sam for taxes I need to pay for being self-employed. That's another rant for another time.

Continue reading Another reason why the economy may not benefit from stimulus checks

Another reason why the economy may not benefit from stimulus checks originally appeared on BloggingStocks on Wed, 25 Jun 2008 10:44:00 EST. Please see our terms for use of feeds.

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Liz Claiborne signs a legend: Isaac Mizrahi

Zac Bissonnette — Wed, 16 Jan 2008 09:18:00 EST

Filed under: Good news, Marketing and Advertising, Target Corp. (TGT), Liz Claiborne (LIZ)

It's been awhile since shareholders of Liz Claiborne (NYSE: LIZ) have had any good news. In the past year, the company's stock has declined from north of $45 per share to Monday's closing price of $16.40: the lowest the stock has traded since 1998.

If anyone can save the struggling fashion house, it's the man they just signed to be creative director of the company's flagship brand: Isaac Mizrahi. You can be sure he didn't come cheap, but he's just what they need. After all, this is the guy who actually managed to make Target (NYSE: TGT) a cool place to shop for clothes.

Liz Claiborne has a lot of potential. In the press release announcing the signing, Mizrahi himself summed it up best: "Liz Claiborne is an American fashion icon. Her clothes were not only beautiful, not only smart, they were revolutionary. She invented separates, and invented an entirely new category in the department store. She made fashion friendly and accessible and in doing so she became every woman's best friend. These are all ideas I treasure and I'm honored to have the opportunity to build on this fantastic legacy and excited to reestablish the label as a must-have." (emphasis mine)

There are no sure things in fashion, but at a discount to its book value and a low price/earnings multiple, you have to like the chances of a Mizrahi-led Liz Claiborne line delivering value to shareholders for the first time in a long time.

Liz Claiborne signs a legend: Isaac Mizrahi originally appeared on BloggingStocks on Wed, 16 Jan 2008 09:18:00 EST. Please see our terms for use of feeds.

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