The Wall Street Journal-20080116-Liz Claiborne Taps Star Designer to Relight Brand
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Liz Claiborne Taps Star Designer to Relight Brand
Liz Claiborne Inc. hired celebrity designer Isaac Mizrahi as creative director to revive its flagship brand.
The Claiborne label, which millions of working women have worn since the 1970s, has been squeezed in recent years by department-store consolidation and changing consumer tastes. Mr. Mizrahi, who has designed a mainstream line for Target Corp., will be responsible for brand design and marketing of Liz Claiborne women's apparel and accessories that will hit department stores in early 2009.
Mr. Mizrahi's contract with Target was expiring, and the chain said yesterday that it is ending its five-year relationship with the 46- year-old designer, a pioneer of the concept of high fashion at low prices. Target will continue to sell the line, which includes everything from $50 cashmere sweaters to $100 wedding dresses, through the end of the year.
The appointment of Mr. Mizrahi, one of the most celebrated high-end designers of the 1990s who went on to appear in films and on stage, marks the boldest effort yet by Liz Claiborne to revive the brand founded by the late Ms. Claiborne and her husband Arthur Ortenberg. In an effort to attract younger, hipper consumers, the company overhauled the brand in 2006. Designer Richard Ostell, who was brought in as creative director, changed the fit and fabrics. An ad campaign called "Liz Is" was launched. But sales languished and the brand lacked what the company called "a clear and cohesive vision."
"Isaac is the Pied Piper of women over 35," William McComb, Liz Claiborne's chief executive, said in a phone interview. The Liz brand "deserves someone with the boldness, the voice and the reputation of Isaac Mizrahi," he said, adding that the designer signed a long-term contract of more than five years.
Mr. Mizrahi, who wasn't available to comment, said in a statement that he was honored to be able to build on the legacy of Ms. Claiborne, who was "an American fashion icon."
Last week, the company named menswear designer John Bartlett to take the helm of its Claiborne menswear label.
The Claiborne brand's sagging performance has weighed heavily on the company, which was once a darling of Wall Street. It built a portfolio of brands to reduce its reliance on its mature labels such as the Liz brand, but its efforts to diversify didn't shield the company from broad trends that have hurt midpriced department-store brands. Although it is no longer the company's largest brand, Liz Claiborne still generates 15% to 20% of its roughly $5 billion in annual sales. On Monday, its shares hit a 52-week low of $16.63. The announcement about Mr. Mizrahi was made after the market closed yesterday. In 4 p.m. New York Stock Exchange trading, the shares fell 56 cents to $16.40. After hours, shares slipped to $16.35
Mr. McComb, who took over as CEO last year, has been shedding brands to focus on growth. Last week, the company said it would sell its C&C California and Laundry by Design brands to Perry Ellis International, and discontinue its 50-store Sigrid Olsen brand.
Last spring, the company also launched Liz & Co., a moderate brand sold at J.C. Penney Co. stores. That move angered Macy's Inc., which sells the more upscale Liz Claiborne brand. Mr. McComb said he hopes Mr. Mizrahi will help distinguish the flagship brand from the Penney line.
For Target, the end of its partnership with Mr. Mizrahi is a mixed blessing. Apparel has been a slow seller at the discount chain in recent months amid a sluggish economy. After five years, the Mizrahi cachet at Target also has faded somewhat.
Still, Mr. Mizrahi has become part of the public face of Target, having appeared in TV commercials for the chain. Last year, sales of his line totaled more than $300 million, according to a person familiar with the situation.
The company said it has no specific plans to replace Mr. Mizrahi. Instead, it will continue bringing in apparel and accessories from internationally known designers on a limited-run basis.
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Ann Zimmerman contributed to this article.
