Investor Presentation

October 8, 2009

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Big News

LIZ CLAIBORNE INC. UNVEILS MAJOR NEW DISTRIBUTION

STRATEGY FOR THE LIZ CLAIBORNE BRAND FRANCHISE

Liz Claiborne New York, designed by

JCPenney to become the Isaac Mizrahi, to exit the department
exclusive department store store channel and move to QVC®
destination for the Liz
Claiborne and Claiborne brands ring
r t n e
in the United States and Puerto
y e a rs pa ime to
Rico c c e ssful it was t
u d
o v ery s e decide evel.”
A f t er tw ney, w n e xt l c . CEO
“ Pe n t h e I n
with
JC
k e it t o l ai borne
t a Liz C
m b ,
L . McCo
iam
-Will
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Partnered Brands: Key Goals

• Stabilize sales decline

• Segment financial goals emphasize capital efficiency, profitability, and

consistency…versus sales growth alone

• Rewrite the operating model to create “win/win”

ƒ Leverage and benefit from the strengths of respective partners
ƒ Establish new models that align goals around achieving mutual growth
and profitability

• Reduce channel conflict

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Partnered Brands: Key Events

February 2007
at JCPenney

February 2009
by Isaac Mizrahi

February 2009
at Kohl’s

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JCPenney Deal Terms
• JCP becomes exclusive department store partner in U.S. and Puerto Rico for
all categories of Liz Claiborne, Liz & Co., Claiborne and Concepts by
Claiborne labels

• Year 1 begins 8/1/2010; up to a 10 year term with purchase option for

brand rights in the U.S. upon receipt of certain consents after year five

• LCI to design and co-merchandise, JCP to co-merchandise, source,

plan/allocate, distribute and market

• LCI will receive a licensing fee as a % of sales plus gross profit sharing with
guaranteed annual minimum royalties

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Building on Liz & Co Success at JCP
Consistent Growth since Launch Strong Performance at Retail
CURRENT “Liz & Co. and Concepts by Claiborne are
perfect examples of how offering the right
Liz & Co – 1,091 doors designer branded merchandise to customers
Doors
Concepts – 944 doors supports and further differentiates JCPenney as
the department store destination.”
Ken Hicks, President & Chief Merchandising Officer
CURRENT Analyst Meeting – 4/17/2007

Liz & Co Concepts

Missy Tailored Clothing “The Liz & Co. introduction's gone very, very
Petite Sportswear well -- above our expectation.”
Mike Ullman, CEO
Woman Big & Tall
Q1 Earnings Call – 5/15/2008
Outerwear Outerwear
Categories Intimates Accessories
Sleepwear Furnishings “We have a strong brand, Liz & Co. from Liz
Handbags Underwear Claiborne … so we’re able to give our
customer … great value, great style, and great
Jewelry quality…”
Sunglasses Ken Hicks, President & Chief Merchandising Officer
Luggage Sanford Bernstein Conference – 5/27/09

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JCPenney Research Highlights

“Our research shows that the Liz Claiborne brand is perfectly aligned with our
customers and our ability to execute the brand’s expansion successfully.”

“Within the women’s clothing category, Liz

Claiborne is known almost universally among
consumers. The next most mentioned brand did
“Almost two-thirds of consumers have
not experience even half the awareness level as
purchased women’s apparel from the Liz
Liz Claiborne.”
Claiborne family of brands, with over a
third of consumers having done so in the
past year. Collectively, the Liz Claiborne
family of brands is the most purchased
brand of women’s clothing.”
“Wherever customers were shopping for the Liz
Claiborne brand, they were loyal to the brand, and
would be willing to shop elsewhere in order to
acquire it.”

“We see this brand exclusivity as another way to grow our customer base and take
market share from our competitors.”

Source: JCP Proprietary Research.

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JCPenney: The Right Partner for Liz Claiborne
Brand Management
• Strong brand marketers … Sephora drawing
important consumer
• Demographic profile well aligned with Liz
Claiborne consumer
• Significant marketing spend … JCP Rewards
increases visits
• Clear messaging on everyday value and price
reassurance
Operations
• Highly functional, process driven retailer
with strong systems
• Over 50 years of direct sourcing
experience and long supplier relationships
• Leading edge proprietary technology
results in improved merchandise flow and
cycle time reduction
Source: JCP Website.
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Multi-Channel Distribution
• Dominant mall presence
• Growing off-mall presence
(currently 126 locations; 80-90% of new
stores in this format)
• jcp.com leadership and innovation …
accelerated investment in digital platform
• Nation’s largest general merchandise
catalog business
Financial
• Inventory flow expertise
• Investing growth capital … sound capital
allocation choices
• Solid financial / capital structure
• Focus on reducing costs with process
improvements
QVC Deal Terms
• QVC has rights to use LCNY brand with Isaac Mizrahi as creative
director on any apparel, accessories, or home category

• LCNY product at QVC will have higher-end styling and quality

• Multi-year agreement beginning August 2010 with renewal rights

• LCI receives royalty on net sales with guaranteed annual minimum

royalties

• QVC and Isaac Mizrahi design, merchandise and source; LCI provides
brand management oversight

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QVC: A Showcase for Isaac and LCNY

• Engaging, differentiated format allows Isaac Mizrahi to showcase the

brand

• Leading global, multimedia retailer with approximately $7 billion in sales

• Currently reaches 167 million homes worldwide

• Research shows that customer profile is well aligned with LCNY

customer

• QVC.com - $1.6 billion in sales and growing at a double-digit rate

• Offers differentiated customer value proposition

ƒ Loyal customer base with 88% retention rate

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LCNY Outlets & International

• LCI will continue to operate the 93 LCNY outlet stores, featuring LCNY
product

• LCI retains the rights to market and distribute LCNY , Liz Claiborne, Liz &
Co., Claiborne and Concepts by Claiborne labels outside of the U.S. and
Puerto Rico

LCNY Outlets LCNY Key International Markets

Spain

Mexico

Canada

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 JCPenney Kohl’s

QVC, LCNY Outlets Macy’s, Dillard’s,

& International Bon-Ton & Belk

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Substantial Benefits to LCI
Old
• Challenging revenue and earnings model
New
• Predictable revenue and earnings model with
projected significant year 1 swing to
profitability
ƒ Receive % of retail sales
ƒ Gross profit sharing at JCP
ƒ Guaranteed minimums

• Significant working capital commitment and • Capital efficiencies: leverage key strengths of
inventory risk partners, JCP & QVC will merchandise and
source the product and own the inventory

• Extensive support staff • Limited support staff (LCI will only design and
co-merchandise at JCP & LCI will only provide
brand management oversight at QVC)

• Financial volatility from upfront discounts, • Partnership aligns incentives to maximize

end of season markdowns, and returns with gross profit, with minimums that provide LCI
no downside protection downside earnings protection

• Highly incompatible distribution strategy due • Strength of being a proprietary brand

to channel conflict ƒ JCP & QVC represent distinct and
exclusive channels of distribution
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Financial Impact
• We expect the adjusted P&L for the Liz Claiborne wholesale brand
franchise to shift from a meaningful loss in 2009 to a targeted adjusted
operating profit in 2010

• The shift from a traditional wholesale model will lower annualized net
sales on a pro-forma basis by approximately $300 million … replaced by
royalty revenue

• Accelerates achieving adjusted operating margin target for Partnered

Brands of 6-8%

• Balance sheet and cash flow benefits

ƒ Cash flow positive deal due to significant shift to profitability, minimal
working capital requirements and no capital expenditures
ƒ Significant reduction in working capital reduces financing
requirements
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Appendix

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Disclaimer
• Statements contained in this presentation (or incorporated by reference into this presentation), in future filings by
us with the Securities and Exchange Commission (“the SEC”), in our press releases, and in oral statements made
by, or with the approval of, our authorized personnel, that relate to the Company’s future performance or future
events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements
are indicated by words or phrases such as “intend,” “anticipate,” “plan,” “estimate,” “project,” “expect,” “we
believe,” “we are optimistic that we can,” “current visibility indicates that we forecast” or “currently envisions”
and similar phrases. Forward-looking statements include statements regarding, among other items:
• (a) our ability to continue to have the liquidity necessary, through cash flows from operations and availability
under our amended and extended credit facility, which may be adversely impacted by a number of factors,
including the level of our operating cash flows, our ability to maintain established levels of availability under, and
to comply with the financial and other covenants included in our amended and extended credit facility and the
borrowing base requirement in our amended and extended credit facility that limits the amount of borrowings we
may make based on a formula of, among other things, eligible accounts receivable and inventory;
• (b) general economic conditions in the United States, Europe and other parts of the world;
• (c) lower levels of consumer confidence, consumer spending and purchases of discretionary items, including
fashion apparel and related products, such as ours;
• (d) continued restrictions in the credit and capital markets, which would impair our ability to access additional
sources of liquidity, if needed;
• (e) changes in the cost of raw materials, labor, advertising and transportation;
• (f) our dependence on a limited number of large U.S. department store customers, and the risk of consolidations,
restructurings, bankruptcies, changes in our brand relationships and other ownership changes in the retail industry
and financial difficulties at our larger department store customers;
• (g) our ability to successfully implement our long-term strategic plans;
• (h) our ability to affect a turnaround of our MEXX Europe business;

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Disclaimer (continued)
• (i) our ability to respond to constantly changing consumer demands and tastes and fashion trends, across
multiple product lines, shopping channels and geographies; our ability to attract and retain talented, highly
qualified executives, and maintain satisfactory relationships with our employees, both union and non-union;
• (j) our ability to adequately establish, defend and protect our trademarks and other proprietary rights;
• (k) our ability to successfully develop or acquire new product lines or enter new markets or product categories,
and risks related to such new lines, markets or categories;
• (l) risks associated with the implementation of the licensing arrangements with JC Penney Corporation, Inc. and
QVC discussed in this presentation including, without limitation, our ability to efficiently change our
operational model and infrastructure as a result of such licensing arrangements, our ability to continue a good
working relationship with those licensees and possible changes in our other brand relationships or relationships
with other retailers as a result;
• (m) the impact of the highly competitive nature of the markets within which we operate, both within the
United States and abroad;
• (n) our reliance on independent foreign manufacturers, including the risk of their failure to comply with safety
standards or our policies regarding labor practices;
• (p) risks associated with our agreement with Li & Fung, which results in a single foreign buying agent for
substantially all of our products;
• (q) our international operations are subject to a variety of legal, regulatory, political and economic risks,
including risks relating to the importation and exportation of product;
• (r) our ability to adapt to and compete effectively in the current quota environment in which general quota has
expired on apparel products but political activity seeking to re-impose quota has been initiated or threatened;
and
• (s) our exposure to domestic and foreign currency fluctuations.

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Disclaimer (continued)
• The forward-looking statements are based on current expectations only and are not guarantees of future
performance, and are subject to certain risks, uncertainties and assumptions, including those described in
“Item 1A. Risk Factors” in our Quarterly Report filed on Form 10-Q, dated August 12, 2009 as well as in our
2008 Annual Report on Form 10-K. The Company may change its intentions, beliefs or expectations at any time
and without notice, based upon any change in the Company’s assumptions or otherwise. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may
vary materially from those anticipated, estimated or projected. In addition, some factors are beyond our
control. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

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