Liz Claiborne CEO sees stability

By Martinne Geller

NEW YORK (Reuters) - Liz Claiborne Inc (LIZ.N) is not expecting a return to the days of freewheeling consumer spending to lift its business, but is instead revamping operations to perform well in a cautious environment its chief executive says is "the new normal."

"I'm probably consistent with some other voices who would characterize the environment as now stable -- not a continuing decline -- but stable at a very different level than we saw a year ago," said Chief Executive William McComb at the Reuters Global Retail Summit in New York.

McComb expects retail sales to remain under pressure for some time as even shoppers who can still afford to splurge are being more savvy about spending.

"It's not a matter of 'what can she afford to spend?' It's 'what's the price that she can get it at?'" McComb said, adding that "it applies to dust mops and dish soap and soup and over-the-counter medicine as it does to apparel and luxury goods."

Given this "new normal," McComb said companies must rethink everything from what they sell and for how much and what costs they have to where they operate and where they can make money.

"I definitely think the 'new normal' is going to evolve," McComb said. "I think it's a mistake to try to plan your business around waiting for a return to what it was. That's just not how fundamental change, big Darwinian change, occurs in the marketplace."

Regarding the company's forecast for same-store sales at its U.S. Lucky Brand, Juicy Couture and Kate Spade stores to fall 15 to 25 percent through the third quarter and then flattening in the fourth as comparisons ease, McComb said: "That point of view hasn't changed."

The company is planning for customer orders to be down about 20 percent throughout the rest of the year. And since orders are placed well in advance, McComb said the company would have a limited ability to ship more product during the end-of-year holiday season if business suddenly picked up.