Liz Drops 12% After Hours Following Guidance Update (LIZ)

Shares of Liz Claiborne, Inc. (NYSE: LIZ) are falling out of bed in the after-hours trade today. Currently shares are off by 12.17%, trading at $6.06. LIZ closed the regular session lower by 2.27%, trading at $6.90.

The company announced preliminary Q4 guidance; where it originally were looking for an $80 million increase in adjusted operating income in the second half of 2010, it now expects adjusted operating loss for the fourth quarter to improve by $0 to $10 million versus a year ago, and as a result, a second half increase in adjusted operating income in the range of $40 to $50 million.

William L. McComb, Chief Executive Officer of Liz Claiborne Inc., said, “2010 was a year of substantial change in our business. We finished the year with an improved second half adjusted operating income and improved adjusted gross profit margin but a very tough month in December depressed our ability to hit our goals for Juicy Couture, Lucky Brand, and Mexx Europe.”

“We will return with a full report on the quarter and year end overview on the scheduled February 17th conference call; at that time we will provide a view of our performance targets for 2011 and how our story will unfold through 2012."

Liz Claiborne, Inc., incorporated in January 1976, designs and markets a global portfolio of retail-based brands, including JUICY COUTURE, KATE SPADE, LUCKY BRAND and MEXX.

The company also has a group of department store-based brands with consumer franchises, including the LIZ CLAIBORNE and MONET families of brands, MAC & JAC, KENSIE and DANA BUCHMAN and the licensed DKNY JEANS, DKNY ACTIVE and DKNY MENS brands.