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Most would agree that Liz Claiborne itself is somewhat of a brand but one that still can be used for a base fashion business. The company recently licensed the label to JC Penney (JCP), who will work it for five or ten years and possibly call it its own in time. This transaction shifts a chunk of the business to a royalty model, which will mean lower revenues but much better profits and less working capital. In other words, it should improve ROIC from here. Management is doing some other things to reduce lower margin and loss making segments of the business as well, and outlined some of this in its most recent investor conference call.
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