Revenue Sinks At Liz Claiborne

The red ink at Liz Claiborne (LIZ) spread during the third quarter as the apparel company was slammed by a worse-than-expected 24% drop in sales.

Liz Claiborne lost $90.5 million, or 96 cents a share, last quarter, compared to a loss of $68.7 million, or 73 cents per share, in the same period of 2008. Excluding one-time items, the company lost 43 cents a share, missing analysts’ expectations for a loss of 20 cents.

Last quarter, Liz Claiborne’s revenue sank 24% to $769.6 million, also under the Street’s view of $799 million. The parent of Lucky Brands said its same-store sales fell 13% last quarter.

"Our financial results in the third quarter reflect some early signs of turning around underperforming businesses,” CEO William McComb said in a statement.

The apparel company said it expects same-store sales to be flat overall in its Juicy Couture, Lucky and Kate Spade brands during the fourth quarter. However, Liz Claiborne projected a 10% drop in Mexx brand.

While McComb said he expects “the retail environment to demonstrate sustained volatility throughout the fourth quarter,” he added, “we are posting significantly improved comparable store sales” so far during the quarter.

Shares of Liz Claiborne, which have surged 111% year-to-date, slumped to $5.30 in pre-market trading after closing at $5.48 on Tuesday.