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LIZ CLAIBORNE, INC., ANNOUNCES SALES AND EARNINGS

 NEW YORK, Oct. 18 /PRNewswire/ -- Samuel M. Miller, senior vice president - finance of Liz Claiborne, Inc. (NYSE: LIZ), today announced sales and earnings for the three and nine months ended Sept. 25, 1993. Net sales for the third quarter increased to $621,894,000 from $618,329,000 for the same quarter last year. Earnings per share were 47 cents compared to 77 cents per share for last year's third quarter. Net sales for the nine months were $1,660,156,000 compared to last year's nine months' sales of $1,647,854,000. Earnings per share were $1.37 compared to last year's nine months' earnings of $1.98 per share. Third quarter results contained an additional income tax provision of $1.8 million relating to a higher tax rate on income for the first nine months of 1993, which reduced earnings by 2 cents per share. Net income for the nine month period included a credit of $1.6 million (2 cents per share) relating to the cumulative effect of a change in the method of accounting for income taxes.
 Mr. Miller commented: "As previously anticipated, the circumstances of conservative buying by our retail customers, start-up investments (including new divisions, new stores and the launch of a new fragrance) and margin erosion as a result of lower sell throughs at regular price that negatively impacted our first half results continued through the third quarter and are expected to continue through the end of the year. In addition, a combination of recent developments including lower than anticipated bookings, the likely delay of Spring I shipments into 1994, higher markdowns in our retail businesses and the 1993 tax increase shall further negatively impact 1993 results. Accordingly, we now believe that 1993 full year earnings per share will be in the range of 40 percent lower than those of 1992."
 As previously announced, the board of directors has declared a regular cash dividend on the company's common stock at the rate of $0.1125 per share to be paid on Dec. 3, 1993, to stockholders of record at the close of business on Nov. 12, 1993. The declaration of any future dividends will be subject to the company's earnings, financial position, capital requirements and other relevant factors.
 With respect to the previously announced stock repurchase program, Mr. Miller noted that through Oct. 15, 1993, of the total of $350 million authorized, the company has purchased or committed to purchase approximately 10.0 million shares of common stock at an aggregate purchase price of approximately $311 million.
 LIZ CLAIBORNE, INC., AND SUBSIDIARIES
 Consolidated Statements Of Income
 (Unaudited)
 (Dollars in Thousands Except Per Share Data)
 Three Months Ended Nine Months Ended
 Sept. 25, Sept. 26, Sept. 25, Sept. 26,
 1993 1992 1993 1992
 Net Sales $621,894 $618,329 $1,660,156 $1,647,854
 Cost of Sales 412,613 389,112 1,078,963 1,019,624
 Gross Profit 209,281 229,217 581,193 628,230
 Selling, General
 & Administrative
 Expenses 151,337 133,167 419,311 383,108
 Operating Income 57,944 96,050 161,882 245,122
 Investment and Other
 Income, net 4,214 4,671 13,008 15,444
 Income before Provision
 for Income Taxes and
 Cumulative Effect of a
 Change in Accounting
 Principle 62,158 100,721 174,890 260,566
 Provision for
 Income Taxes 23,900 36,200 64,500 93,700
 Income before
 Cumulative Effect
 of a Change in
 Accounting
 Principle 38,258 64,521 110,390 166,866
 Cumulative Effect of
 a Change in the
 Method of Accounting
 for Income Taxes -- -- 1,643 --
 Net Income $ 38,258 $ 64,521 $ 112,033 $ 166,866
 Weighted Average
 Common Shares
 Outstanding 81,388,596 83,404,048 81,973,346 84,413,194
 Earnings per
 Common Share:
 Income before
 Cumulative Effect
 of a Change
 in Accounting
 Principle $0.47 $0.77 $1.35 $1.98
 Cumulative Effect
 of a Change in
 the Method of
 Accounting for
 Income Taxes -- -- $0.02 --
 Net Income $0.47 $0.77 $1.37 $1.98
 Dividends per
 Common Share
 (Rounded to the
 nearest penny) $0.11 $0.10 $0.33 $0.29
 -0- 10/18/93
 /CONTACT: Samuel M. Miller, senior vice president - finance of Liz Claiborne, Inc., 201-601-8500/
 (LIZ)


CO: Liz Claiborne, Inc. ST: New York IN: HOU SU: ERN

TW -- NY024 -- 3211 10/18/93 09:12 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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