JC Penney stores in the United States and Puerto Rico are going exclusive with Liz Claiborne Inc’s namesake brand and celebrity designer Isaac Mizrahi will sell his upscale Liz Claiborne New York line only on QVC, a TV shopping network.

The moves from Liz Claiborne were seen by some as a downward shift to mass-market retail channels and came as department store orders for Liz Claiborne’s products have fallen during what has become the longest recession since the Great Depression.

Analysts said the JC Penney deal is more lucrative for Liz Claiborne and signals the end of a decades-long relationship between Liz’s main brand and the Macy’s department store chain – which didn’t exactly go quietly.

“The Liz Claiborne brand has sold poorly in recent years and has continued to decline. As a result, we could not justify expanding it at Macy’s,” a Macy’s spokesman said.

JC Penney is known in the United States for stressing affordability and discounts while higher-end department stores like Nordstrom or Saks carry more designer merchandise and higher price tags. Macy’s tends to be somewhere in the middle of the two extremes, but lately has been discounting aggressively and focusing on everyday values.

Liz Claiborne, which recently hired a turnaround firm, said its “bold steps” would  “further the revitalization” of the Liz Claiborne brand and “significantly alter its earnings trajectory.”

The agreement with JC Penney begins in August 2010. The Liz Claiborne New York line will partner with QVC after this year’s holiday season.

Mizrahi is no stranger to the small screen — or the silver screen. The outspoken designer currently is co-hosting Bravo’s “The Fashion Show” and was the subject of the 1995 documentary film “Unzipped.” 

While Mizrahi is not the first celebrity to pitch products on a home shopping channel, he did break new ground in 2003 with his exclusive women’s apparel and accessory line for Target.

His QVC show called “Isaac Mizrahi Live!” debuts in December and will sell Liz Claiborne New York apparel, accessories and home goods.

(Photo/Reuters)

Tim Gunn lovers, alert! An apparel line under the name of fashion’s favorite is not entirely out of the question. So says chief executive of Liz Claiborne, the apparel giant that now employs Gunn as its chief creative officer.
    
Liz Claiborne Chief Executive William McComb, attending the Reuters Global Retail Summit, was asked whether a Tim Gunn-branded apparel line could ever be in the stars.

“I do, and obviously we would be the ones to do it,” responded McComb.
    
The strength of Gunn — who skyrocketed to fame through television’s popular “Project Runway” reality series  – is his impeccable eye, McComb said.
    
“Tim is not a designer. He does not design. What he would bring to the table is the common sense edit of how to build a wardrobe,” said McComb.
    
“He could do the black dress, the white top, the work pants … it would be not necessarily high faloutin’ fashion, but really smart.”
    
And so we wait in anticipation.  Read Reuters’ Liz Claiborne story here.
    
In the meantime, don’t expect a celebrity designer smack-down between Gunn and Liz Claiborne’s new creative designer, Isaac Mizrahi.
    
“They’re friends, they knew each other from Parsons,” said McComb, referring to the prestigious New York design school. “I would characterize it as very warm, very engaging, very friendly.”

So……how about a Gunn-Mizrahi line?

(Photo: Reuters)

Isaac Mizrahi, the ebullient fashion designer tapped by Liz Claiborne Inc to resuscitate its namesake sportswear line, seems to have worked his magic again, according to early analyst and retailer reviews.

The designer, who starred in the 1995 movie “Unzipped” and started the cheap chic trend favored by his former employer Target Corp, was named creative director of the Liz Claiborne brand in January and his first collection for the brand will hit stores in the Spring.

While most reporters are still in the dark, analysts and retailers have seen the line and have given it the thumbs-up.

Credit Suisse analyst Omar Saad, who attended last week’s analyst preview of the Spring 2009 Liz Claiborne line, wrote in a research note on Monday that it exceeded his generally high expectations. It also increases the likelihood of a successful turnaround in that struggling brand, whose sales are now roughly half what they were at their peak, Saad said.

“We thought the spring line preview, which featured everything from work attire and sportswear to athletic apparel and cocktail dresses, was well merchandised and boasted a modern (but not too edgy) feel that should resonate with the Liz core consumer,” wrote Saad.

Saad said he liked the bright color palette, unexpected details on many of the garments and the new “LC” logo, which is being used as a print on button-down shirts, swimsuits and handbags.  

Women’s Wear Daily recently obtained sketches of the clothes, which revealed safari-inspired outfits, dresses with bold stripes, plaids and polka dots, and floral leggings that matched the lining on a trench coat.

The fashion industry publication also cited executives from the brand’s department store clients.

Macy’s Chief Executive Terry Lundgren said “it looked great”, while Bon-Ton Stores’ President Tony Buccina said the new product “makes you smile,” according to WWD.

The clothes may be fun and new, but Credit Suisse’s Saad noted that the weak state of the current economy makes this a difficult time to execute such a complex restructuring and turn-around. And that is something that even the magic of Mizrahi may not be able to fix.

(Photo: Reuters)    

Check out the other discounter.
 
The wisdom in the struggling U.S. economy is that discounters are doing well as consumers trade down to try to save some money. It has worked for Wal-Mart, which saw first quarter profit rise 7 percent, while same-store sales rose 2.9 percent.
 
Not so much for Target, though.
 
That discount retailer today posted a 7.5 percent decline in net income for the quarter and its same-store sales dipped 0.7 percent and were weaker than the company had expected.
 
For a time, Target attracted customers with an approach that became known as “cheap chic,” with designers like Isaac Mizrahi developing exclusive clothing lines for it. At the same time, Wal-Mart has stumbled with its own attempts to upgrade its apparel offerings.
 
But even before the economy went south, Wal-Mart refocused on offering lower-priced value, a move that has helped the company in an economy that many say is in a recession.
 
Meanwhile, sales are falling short of Target’s target. And  Mizrahi has left to become creative director at Liz Claiborne.
 
Right now, it looks like the dog days for Target, while Wal-Mart sports a smiley face.
 
Also in the basket:
 
Home Depot posts quarterly loss 
 
Saks Inc posts higher quarterly profit 
 

(Photo: Reuters)