352363--3/13/2008--CLAIBORNE_LIZ_INC

related topics
{operation, international, foreign}
{competitive, industry, competition}
{product, market, service}
{condition, economic, financial}
{property, intellectual, protect}
{personnel, key, retain}
{customer, product, revenue}
{capital, credit, financial}
We cannot assure that we can attract and retain talented highly qualified executives, or maintain satisfactory relationships with our employees, both union and non-union. The success of our business depends on our ability to respond to constantly changing consumer demands and tastes and fashion trends, across multiple product lines, shopping channels and geographies. Our business could suffer if we cannot adequately establish, defend and protect our trademarks and other proprietary rights. Our success will depend on our ability to successfully develop or acquire new product lines or enter new markets or product categories. Our ability to continue to have the liquidity necessary, through cash flow from operations and financing, may be adversely impacted by a number of factors, including the downgrading of our credit rating. Risks Associated With Competition and the Marketplace The markets in which we operate are highly competitive, both within the United States and abroad. Our wholesale business is largely dependent on sales to a limited number of large U. S. department store customers, and our business could suffer as a result of consolidations, restructurings and other ownership changes in the retail industry. Our reliance on independent manufacturers could cause delay and loss and damage our reputation and customer relationships. Economic, Social, Political and Regulatory Risks General economic conditions, including a downturn in the economy, may affect consumer purchases of discretionary items and fashion and retail products, which could adversely affect our sales. Our business is exposed to domestic and foreign currency fluctuations. Our international operations, including manufacturing, are subject to a variety of legal, regulatory, political and economic risks, including risks relating to the importation and exportation of product.

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