DOW JONES NEWSWIRES Liz Claiborne Inc. (LIZ) will suspend its quarterly cash dividend indefinitely in a move to save cash amid a tough holiday shopping season and weak consumer spending.
"While there is much going on in the economy that we have no control over, we are keenly focused on controlling those things that are within our power - inventories, accounts receivable, brand and strategy execution and generating free cash flow," Chief Executive Bill McComb said.
The suspension of the 5.625-cent dividend will save the company about $21 million a year.
Liz Claiborne has struggled to find its identity in recent years. A strategic review at the company has resulted in the sale of eight brands, including Ellen Tracy and Prana. The Dana Buchman line was licensed to Kohl's Corp. (KSS), and four other brands were discontinued or merged into other labels.
The company has focused on developing its "direct" brands - Kate Spade, Lucky Brand, Juicy Couture and Mexx - by beefing up their marketing and adding branded specialty stores.
Last month, the company reported swinging to a third-quarter net loss amid restructuring charges and a slump in sales as consumers cut back on discretionary spending.
Shares were flat at $3.03 in after-hours trading.
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; lauren.pollock@dowjones.com
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Publié le 16 Décembre 2008 Copyright © 2008 Dowjones