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)