Showing posts with label LIZ Earnings. Show all posts
Showing posts with label LIZ Earnings. Show all posts

Wednesday, 16 February 2011

Liz Claiborne, Inc (LIZ)

Liz Claiborne is due to report results on Thursday 17th February 2010. Current valuation on $3bn of sales is some $480m. This is very cheap given their brands and potential for revenue growth.

The main issue I have is the incompetent Chief Executive Officer, William L. McComb . Since he took office he has destroyed around $3-4bn worth of value in this company, whilst also earning $10-15m in the process. During the downturn he did not pro-actively cut costs and the company continues to leak money. He is unable to manage this company because he is incompetent.

I will be watching for his departure. A more competent leader can take the helm and turn this company around.

The brands this company has are superb however the current board particularly the CEO have destroyed the value of the company.

About Me

I try and work a broadly market neutral strategy and based purely on fundamentals and my gut feel.