MIRA INFORM REPORT

 

 

 

Report Date :

30.07.2008

 

IDENTIFICATION DETAILS

 

Name :

LIZ CLAIBORNE INC

 

 

Registered Office :

1441 Broadway, New York, NY 10018,

 

 

Country :

United States

 

 

Financials (as on) :

29.12.2007

 

 

Date of Incorporation :

04.02.1981

 

 

Legal Form :

Company quoted on the NYSE Stock Exchange under the symbol “LIZ”

 

 

Line of Business :

Retails Women’s and Men’s Accessories.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1,000,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

 

 

 

 

REQUIRED CREDIT

 

 

ADVISED CREDIT

 

 

MAXIMUM

 

 

 

1,000,000 USD

 

 

GEOPOLITICS

 

 

POLITICAL DATA

 

 

ECONOMIC DATA

FORM OF GOVERNMENT

 

ECONOMIC RISK

Federal

 


None

 

CURRENCY

 

BRANCH SITUATION

 

USD

 

Competitive

 


IDENTIFICATION

 

 

Company Name:

 
 

 LIZ CLAIBORNE, INC.

 

 

 

Address:

 

 

1441 Broadway,
New York, NY 10018,
United States 

 

Phone:

 

Facsimile:

 

ID:

 

State:

 

 

 

Managers:

 

+ 1 (212) 354-4900

 

+ 1 (212) 626-3416

 

0911577

 

Delaware

 

 

 

William L. McComb, Chief Executive Officer

 

Date founded:

 

 

04/02/1981


 

Company quoted on the NYSE Stock Exchange under the symbol “LIZ”

 

94,782,920 shares

 

1.00 USD per Share

 

 

16,400 employees

 

Legal form:

 

Stock:

 

Value:

 

 

Staff:

Business: 

Retails women’s and men’s accessories.

 

BANKS

 

Bank of America

Wells Fargo

 

 

BUSINESS

 

Liz Claiborne, Inc. engages in the design, marketing, and retail of a range of apparel, accessories, and fragrance products worldwide.

 

It offers women's, men's, and children's contemporary apparel, denim and casual sportswear, intimate apparel, classic career and casual apparel for women, activewear, and streetwear apparel. The company also provides various accessories, including jewelry, handbags, and fragrances, as well as bath and body-care products. Liz Claiborne, Inc. offers its products under the primary brands, including KATE SPADE, JUICY COUTURE, LUCKY BRAND JEANS, and MEXX.

 

In addition, it sells its products under its wholesale-based brands comprising AXCESS, CLAIBORNE, CONCEPTS BY CLAIBORNE, DANA BUCHMAN, ENYCE, KENSIE, LIZ & CO., LIZ CLAIBORNE, MAC & JAC, MARVELLA, MONET, NARCISO RODRIGUEZ, TRIFARI, and VILLAGER; licensed brands, such as DKNY JEANS and DKNY ACTIVE; and non-direct fragrance brands, including CLAIBORNE, CURVE, LIZ CLAIBORNE, and USHER. As of December 29, 2007, the company operated a total of 433 specialty retail stores, including 284 in the United States and 149 primarily in western Europe and Canada; and 350 outlet stores comprising 213 in the United States and 137 primarily in western Europe and Canada.

 

It also engages in e-commerce and licensing operations relating to its various retail and wholesale brands. Liz Claiborne was founded in 1976 and is based in New York, New York.

 

 

SHAREHOLDERS – SUBSIDIARIES – MANAGERS

 

The directors of the company are:

 

William L. McComb, Chief Executive Officer,

 

Andrew C. Warren, Chief Financial Officer,

 

Michael Scarpa, Chief Operating Officer.

 

 

The major direct holders are:

 

-CHARRON PAUL R.,

 

-MCCOMB WILLIAM L.,

 

-TIERNEY PAUL E.,

 

-SCARPA MICHAEL.

 

 

FINANCIALS – COMMERCIAL TRENDS AND FORECAST

 

The company is quoted on the NYSE Stock Exchange under the symbol “LIZ”.

 

Sales for the year 2007 are in the range of USD 4,577,251,000.

 

We notice losses of USD 372,798,000.

 

 

All numbers are in thousands USD.

 

Annual Income Statement:

 

 

PERIOD ENDING

29-Dec-07

30-Dec-06

31-Dec-05

Total Revenue

4,577,251  

4,994,318  

4,847,753  

Cost of Revenue

2,411,525  

2,606,853  

2,549,396  

 

Gross Profit

2,165,726  

2,387,465  

2,298,357  

 

 

Operating Expenses

 

Research Development

-  

-  

-  

 

Selling General and Administrative

2,104,420  

1,951,388  

1,773,627  

 

Non Recurring

487,119  

-  

(610)

 

Others

-  

-  

-  

 

 

 

Total Operating Expenses

-  

-  

-  

 

 

 

Operating Income or Loss

(425,813)

436,077  

525,340  

 

 

 

 

Income from Continuing Operations

 

 

Total Other Income/Expenses Net

(4,459)

6,570  

(2,264)

 

 

Earnings Before Interest And Taxes

(430,272)

441,434  

523,076  

 

 

Interest Expense

42,188  

34,898  

31,798  

 

 

Income Before Tax

(472,460)

406,536  

491,278  

 

 

Income Tax Expense

(102,440)

151,851  

173,912  

 

 

Minority Interest

-  

(1,213)

-  

 

 

 

 

Net Income From Continuing Ops

(370,020)

254,685  

317,366  

 

 

 

 

Non-recurring Events

 

 

Discontinued Operations

(2,778)

-  

-  

 

 

Extraordinary Items

-  

-  

-  

 

 

Effect Of Accounting Changes

-  

-  

-  

 

 

Other Items

-  

-  

-  

 

Net Income

(372,798)

254,685  

317,366  

 

Preferred Stock And Other Adjustments

-  

-  

-  

 

 

 

Net Income Applicable To Common Shares

($372,798)

$254,685  

$317,366  

 

 

Annual Balance Sheet

 

PERIOD ENDING

29-Dec-07

30-Dec-06

31-Dec-05

 

Assets

Current Assets

 

Cash And Cash Equivalents

205,401  

185,645  

328,527  

 

Short Term Investments

328  

9,451  

14,638  

 

Net Receivables

543,448  

559,639  

463,537  

 

Inventory

606,139  

593,445  

536,296  

 

Other Current Assets

209,525  

121,937  

113,539  

 

Total Current Assets

1,564,841  

1,470,117  

1,456,537  

Long Term Investments

-  

-  

-  

Property Plant and Equipment

580,733  

581,992  

494,693  

Goodwill

677,852  

1,007,859  

858,565  

Intangible Assets

347,119  

413,962  

332,017  

Accumulated Amortization

-  

-  

-  

Other Assets

22,477  

21,838  

10,224  

Deferred Long Term Asset Charges

75,445  

-  

-  

 

Total Assets

3,268,467  

3,495,768  

3,152,036  

 

Liabilities

Current Liabilities

 

Accounts Payable

715,594  

651,656  

548,648  

 

Short/Current Long Term Debt

50,828  

22,266  

48,729  

 

Other Current Liabilities

3,963  

-  

10,362  

 

Total Current Liabilities

770,385  

673,922  

607,739  

Long Term Debt

836,883  

570,469  

417,833  

Other Liabilities

140,764  

63,565  

66,692  

Deferred Long Term Liability Charges

1,111  

54,571  

54,170  

Minority Interest

3,760  

3,260  

2,896  

Negative Goodwill

-  

-  

-  

 

Total Liabilities

1,752,903  

1,365,787  

1,149,330  

 

Stockholders' Equity

Misc Stocks Options Warrants

-  

-  

-  

Redeemable Preferred Stock

-  

-  

-  

Preferred Stock

-  

-  

-  

Common Stock

176,437  

176,437  

176,437  

Retained Earnings

2,948,085  

3,354,081  

3,122,487  

Treasury Stock

(1,880,534)

(1,593,954)

(1,450,169)

Capital Surplus

296,158  

249,573  

187,689  

Other Stockholder Equity

(24,582)

(56,156)

(33,738)

 

Total Stockholder Equity

1,515,564  

2,129,981  

2,002,706  

 

Net Tangible Assets

$490,593  

$708,160  

$812,124  

 

 

 

There is no legal filling listed with the District Court.

 

There are several UCC files in favor of banks and financial institutions listed with the Secretary of State of Delaware.

 

 

RATING

 

Local credit bureau gave a correct credit rate.

 

The Company is in “good standing”.

This means that all local and federal taxes were paid on due date.

 

-        The cash flow is correct.

 

-        Payments are made on a regular basis.

 

Our final opinion

 

This is a large company working worldwide.

 

A credit line may be considered.

 

 

SUMMARY

 

 

FINANCIAL SUMMARY

 

 

DEBT COLLECTIONS AND PAYMENTS

PROFITABILITY

 

INDEBTNESS

 

CASH

 

Losses

 

Medium

 

Correct

PUBLIC

 

PAYMENTS

 

 

See Details Above

 

Regular

 

 

ADVISED CREDIT

 

 

1,000,000 USD

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 42.47

UK Pound

1

Rs. 84.00

Euro

1

Rs. 66.14

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions