As we wrote earlier this week on Seeking Alpha [Liz Claiborne Transformation Complete: A Look at Whats Left], the transformation at Liz Claiborne (LIZ) is now complete. CEO William McComb went on CNBC this morning to discuss the transformation and the remaining brands.
LIZ remains one of the top picks in our Opportunistic portfolios and especially in the retail sector. Most investors have not caught on that LIZ just turned into a growth company with great comps from kate spade and Lucky Brands. Juicy Couture is still struggling, but any turn around would just 'juice' the growth profile anymore. Not to mention, LIZ dramatically reduced the capital structure by using the proceeds from the sell of Liz Claiborne and various other brands to reduce the outstanding debt.
Those 100% comps at kate spade are just mind blowing. Investors might just eat that up.
Our pick for the new name is still Lucky spade!
Disclsoure: Long LIZ. Please review the disclaimer page for more details.