Liz Claiborne (NYSE: LIZ) will sell 16 of its 36 brands in a move that will cut [subscription required] about $800 million of the company's $5 billion revenue.

The move is very risky. The company believes that by moving out of brands that have modest profits it can focus more on its core brands. A difficult environment in department-store sales is behind the company's thinking for focusing on a fewer number of product lines.

To get around problems with slow department-store sales, the company will also open 300 of its own outlets by 2010.

The Wall Street Journal, however, points out that the brands Liz will cut are not necessarily the slowest growing brands. The company has not said whether they are less profitable than the ones to be retained or not.

That is why the strategy may make little sense. Having a larger number of brands would appear to give the company more leverage at the retail level.

Well, perhaps the management knows something Wall Street does not know. Earnings over the next couple of quarters will bear watching.

Douglas A. McIntyre is a partner at 24/7 Wall St.