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Bank of America & Merrill Lynch Consumer ConferenceMarch 11, 2009



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Statements contained in this presentation that relate to future events or the Company's future performance, including, without limitation, statements with respect to the Company's anticipated results of operations or level of business for 2008 or any other future period, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations only and are not guarantees of future performance, and are subject to certain risks, uncertainties and assumptions. These forward looking statements are based on current expectations and are subject to the qualifications set out in the Company’s 2008 Annual Report on Form 10-K for the period ended January 3 2009, including, without limitation, those set forth under the headings "Risk Factors" and "Statement Regarding Forward-Looking Disclosure."

Please note that in this presentation, projected SG&A for 2009 is presented on an adjusted basis.

The Company believes that the adjusted guidance provided in this presentation provides a more meaningful representation of its projected operations and financial performance and will allow for a more meaningful comparison with historical results.

Adjusted guidance excludes the impact of expenses incurred in connection with the Company’s streamlining activities, the loss on disposal of discontinued operations and the results of discontinued operations as well as the impact of any acquisitions, divestitures or share repurchases.

Safe Harbor Statement



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Mexx WholesaleApparel

Jewelry Handbags Retail Outlet Licensing Int'l Sourcing Cosmetics

* For illustrative purposes only. Not drawn to scale.

Lucky

Juicy

Lucky Lucky

Kate

Liz Brand

DKNY Jeans

Monet MonetMonet

Monet

Monet

Monet Monet Monet

LuckyLucky Lucky Lucky Lucky

Juicy Juicy

Juicy Juicy Juicy JuicyJuicy

Kate Kate

Kate Kate KateKate

KateLiz Brand Liz Brand

Liz Brand

Liz Brand

Liz Brand Liz Brand Liz Brand

DKNY Jeans DKNY Jeans

DKNY Jeans

DKNY Jeans

DKNY Jeans DKNY Jeans DKNY Jeans

KensieKensie

Kensie

SigridSigrid

Sigrid

Sigrid

Sigrid

Sigrid Sigrid Sigrid

OtherBrands

OtherBrands

OtherBrands

OtherBrands

OtherBrands

OtherBrands Other

BrandsOtherBrandsDana

BuchmanDana

BuchmanDana

Buchman

DanaBuchman

DanaBuchman

EllenTracy

EllenTracy

EllenTracy

EllenTracy

EllenTracy

Prana Prana

Enyce

LaundryLaundry

LaundryLaundry

EnyceEnyce

C&CC&C

C&C

Emma James Emma James

Lucky

Liz Brand

DKNY Jeans

Monet

Juicy

Kate

Kensie

Sigrid

OtherBrandsDana

Buchman

EllenTracy

Prana

Enyce

Laundry

C&C

Emma James

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From a Channel-Focused Structure to a…



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LuckyBrand

JuicyCouture

KateSpade

Mexx LizClaiborne

DKNYJeans

Monet Kensie Mid-Tier

* For illustrative purposes only. Not drawn to scale.

Domestic-BasedDirect Brands

WholesaleApparel

WholesaleApparel

WholesaleApparel

WholesaleApparel

WholesaleApparel

WholesaleApparel

WholesaleApparel

WholesaleApparel

WholesaleApparelNon-

ApparelNon-

ApparelNon-

ApparelNon-

ApparelNon-

ApparelNon-

ApparelNon-

Apparel

Non-Apparel

Non-Apparel

Retail Retail Retail Retail Retail Retail Retail

Outlet

Licensing

Sourcing

Outlet Outlet Outlet Outlet Outlet Outlet

Licensing Licensing Licensing Licensing Licensing Licensing

Int’l Int’l Int’l Int’l Int’l Int’l Int’l

Sourcing Sourcing Sourcing Sourcing Sourcing Sourcing

Sourcing Sourcing

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Int’l-BasedDirect Brands Partnered Brands

…Brand-Centric, Monobrand Organization



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2009 Operating Priorities

•Cash Flow and Liquidity

•Brand Execution

•Cost Management

•Mexx Turnaround

•Liz Claiborne New York



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Cash Flow and LiquidityExtended bank facility through May 2011

Reduced FY09 capex to $60 - $70M

Suspended $21M annual dividend

Received $90M tax refund

Signed $75M Li & Fung sourcing deal

Converted $40M of trade LCs to open account to expandrevolver availability

Exceeded $265M committed cost reduction plan

Pursue additional cost reduction initiatives

Improve inventory/working capital turns

Monetize owned real estate portfolio

Synchronize payment terms with manufacturing vendorsfrom 15 to 30 days

Completed

Completed

Completed

Completed

Completed

Completed

Completed

Ongoing

Ongoing

In-process

In-process



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Brand Execution

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• Juicy: Expand role of intimates and loungewear; discontinue men’s

• Lucky: Nearly double tops assortment; new entry price T-shirt programs

• Kate: Launch apparel in Fall and further expand jewelry

Assortment andMix Shifts

Price PointRecalibration

InventoryManagement

“Capital Light”Growth

Traffic-DrivingPromotions

• Juicy: Increase opening price fashion items by 40% this Fall

• Lucky: Increase $99 opening price point denim offering to 25% of denim inventory

• Kate: Grow concentration of key price point items between $195 and $395

• Conservative planning for Summer and Fall

• Teams incentivized to manage inventory turns

• Juicy: Tracksuit promotions to drive traffic

• Lucky: Cross-ruff product categories for added value

• Juicy: Greece, Mexico, and travel retail

• Lucky: Launch footwear at wholesale via license

• Kate: Expansion in Japan and travel retail



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Li & Fung Partnership

• Entered into a long-term, exclusive Buying Agency Agreement

• Li & Fung will act as the primary global sourcing agent for all brands in the LCI portfolio with the exception of jewelry

• Liz Far East will close 5 offices

• Approximately 250 positions will transfer to Li & Fung and 225 will be eliminated

• Li & Fung pays to LCI at closing $75 million in cash and an additional payment of $8 million to offset the restructuring expenses associated with the transaction

• Going forward, LCI will pay a buying agency commission based on the cost of its product purchases through Li & Fung

• Best-in-class systems, management and talent

• Access to a broader network of more global manufacturing partners

• Improved speed-to-market models

• Enhanced going-in gross margins beginning Holiday 2009 and beyond

• G&A cost neutral ex restructuring costs

• Cash positive

Overview Strategic Rationale



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Two-Year Cost Management Trend

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2007 2009

$1,886M

$1,630M

($19M)

($342M)

Corporate and Partnered

Brands SG&A Actions

Domestic-BasedDirect Brands

Retail Expansion

& Investment• Eliminated 2,675 global positions

• Delayered management

• Closed 6 DCs

• Fragrance licensing deal

• 140+ new stores

• Retail infrastructure

• Marketing

$200M

FX Effect

($95M)

International-Based

Direct Brands

ExceedingExpectation

of $265M



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•Mexx historically operated at mid-single digit operating margin

•Cost structure out of line

•Product value declined

Quest for higher margins to offset volume declines

Styling shifted from “twisted” to “minimalist”

•Undisciplined distribution growth

•Outdated sourcing capabilities

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Update on Turnaround2009 OutlookUpdate on Turnaround

• Another year of transition Operating profit at breakeven Rationalization of distributionExtensive inventory clearance in 1H09Additional cost reductions

• Clarify and elevate brand position by 2H09

• New product to hit in Fall 2009European, contemporary “Twisted”More emotional – forever young and sexy

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• Building talent Key hires include Chief Merchandise Officer, Chief Financial Officer, VP Sourcing, VP Eastern Europe and VP Retail OperationsSearch underway for CEO and Chief Marketing Officer

• Building capabilitiesImproved costing, speed to market and calendar adherence with Li & Fung

• Reduced approximately 250 positions in the past two years

• Eliminated sub-scale businessesClosed UK retail storesShut down Wellbeing (sports/yoga category)Rationalized retail partner store formats



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1313



1414



1515



1616



1717



1818



1919

Shops



2020

Shops



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2009 Operating Assumptions

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• Challenging 4Q08 conditions continue through FY09

Comp Store Sales

―1Q – 3Q: Down 15 – 25% for all brands

―4Q: Comps flatten as we anniversary the sharp downturn that began in September 2008

Operating Margin

―1Q: Extremely difficult operating loss

―2Q – 4Q: Improvement in each successive quarter as cost reductions flow through

―2H09: Modest margin expansion from improving sell-through rates on Liz Claiborne New York and adapted assortments, pricing and promotional strategies in all brands

―Gross margin accretion from Li & Fung deal beginning Holiday 2009

• Carefully manage our liquidity position and focus on maximizing our availability under our bank credit facility



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Q&A



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Appendix



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Sales by Brand

$4.0B

Mexx30%

Juicy15%

Lucky12%

Kate 3%

Liz ClaiborneBrand1

17%

Other Liz Family Brands2 9%

Other Partnered

Brands3

10%

Sales by Channel

1 Liz Claiborne Brand includes: wholesale apparel, accessories, jewelry, outlet, international and e-commerce2 Other Liz Family Brands include: Liz&Co., Concepts, Claiborne, Axcess, Tint (incorporated into Liz&Co.) and Stamp 10 (incorporated into Axcess) 3 Other Partnered Brands include: DKNY Jeans Group, Monet Family, mac & jac, and kensie 4 Sold/exited brands not included in discontinued operations

Partnered BrandsDomesticWholesale

29%

DomesticRetail19%

InternationalRetail18%

InternationalWholesale

17% Licensing2%

Domestic-Based Direct

Brands DomesticWholesale

15%

$4.0B

Sold/Exited Brands4

4%

2008 Sales Breakdown



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4Q08 Retail Key Performance Indicators

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Traffic (4%) (10%) (10%)

Conversion 7% 22% 7%

UPT 11% 6% 7%

AUR (27%) (26%) (18%)

ADT (19%) (21%) (12%)



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Bank of America & Merrill Lynch Consumer ConferenceMarch 11, 2009

bank of america & merrill lynch consumer conference...

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