Please note that statements made during this presentation that relate to the Company’s future performance are forward looking statements within the Private Securities Litigation Reform Act. These forward looking statements are based on current expectations and are subject to the qualifications set out in this morning’s press release, as well as in the Company’s 2006 Annual Report on Form 10-K under the heading “Risk Factors”.

Also, please note that during this presentation and in the company’s press release, projected Net Sales, Operating income, operating margins, cash flow from operations and EPS for 2007 and beyond are presented on an adjusted basis.

2007 guidance excludes the $.06 impact of expenses incurred as part of our streamlining initiatives in the first quarter and the projected $.14 to $.16 impact of streamlining expenses incurred in the second quarter, as well as any additional expenses we will incur as part of our streamlining initiatives during the rest of the fiscal year; and any additional income or expenses incurred in connection with the sale, licensing, or closure of the businesses under strategic review and the impact of any future acquisitions.

Guidance for 2008 and beyond excludes the brands currently under strategic review, any additional expenses we will incur as part of our streamlining initiatives going forward and any additional income or expense incurred in connection with the sale, licensing, or closure of the businesses under strategic review, as well as the impact of any acquisitions.

The company believes that the adjusted guidance provided during this presentation and in the company’s press release provides a more meaningful presentation of its projected operations and financial performance and will allow for a more meaningful comparison with historical results. BUILDING POWERFUL BRANDS Agenda

Designed To Win: LCI’s Long-Term Growth Strategy Bill McComb, Chief Executive Officer

Direct Brands: An Engine for Growth Juicy Couture, Lucky Brand & Jill Granoff, EVP, Direct Brands

Mexx Jeff Fardell, CEO, Mexx Europe

Questions & Answers

Break

Partnered Brands: Partnering to Win Aru Kulkarni, Chief Customer Officer

Designing To Win: Harnessing Our Creative Resources Tim Gunn, Chief Creative Officer

Enterprise-Wide View: Operations & Key Financials Mike Scarpa, Chief Operating Officer

Questions & Answers

Closing Remarks B. McComb

Box Lunch Liz Claiborne “The Beginning”

The Second Era: Building on Competitive Advantages

Managerial Supply Systems Talent Chain The Era of Acquisitions

Financial Snapshot: Net Sales & ROIC

Sales ($ Milliions) * ATROIC On Net Capital

$5,000

$3,750

$2,500

$1,250

$0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

* (Operating Income x (1- Effective Income Tax Rate)) / Average Net Capital

We lost our focus Juicy Couture Dana Buchman Bridge Wholesale Ellen Tracy Laundry by Design Liz Claiborne Claiborne Better Wholesale Lucky Brand Jeans Mexx Sigrid Olsen C&C California Moderate Wholesale prAna Intuitions Kensie Enyce Licensing Monet YZZA Elisabeth Tapemeasure Specialty Own Retail Stamp 10 Crazy Horse Axcess Emma James J.H. Collectibles Factory Own Retail Villager

Source: Omar Saad, Credit Suisse Finance/ Creative/Design Supply Chain Finance/ Creative/Design Supply Chain Marketing Investment

Back-end Capabilities Marketing Investment

Back-end Capabilities Wholesale Challenges

Consumer Migration Retailer Consolidation Private Labels Penetration

We over-played our strategy

Talent Commitment Integrity

Why Are Brand-Centric Companies So Attractive?

P/E vs. LTG 42

37

32

27

CY2007 P/E (X) 22

17

12 10% 12% 14% 16% 18% 20% 22% 24% LT Growth Estimate (%)

Source: Capital IQ/. Building Powerful Brands Narrow Portfolio Building Powerful Brands

Narrow Portfolio Reduce Costs Building Powerful Brands 2010 Annual Cost Savings $190 M

$200 $190

$150 $145

$100 $100

$50

‘08 ‘09 $0 ’10 Narrow Portfolio Reduce Costs Building Powerful Brands Commit Resources Narrow Portfolio Reduce Costs Building Powerful Brands Commit Resources Best in Class Retail Capability Narrow Portfolio Reduce Costs Building Powerful Brands Commit Resources Best in Class Retail Capability “ Faster” Directional Pattern: EPS Directional Pattern: Sales Trend

Direct Brands

Partnered Brands

0 1 2 3 4 5 Year Long-Term Sustainable Financial Performance

Annual Sales Growth: High Single Digits Operating Margin: Mid-Teens EPS: High-Teens ROIC: High-Teens Brands First Ownership/Accountability Focus Powerful Teaming Direct Brands Category Marketing Expansion Investment

Driving Growth

International e-commerce and Growth Outlet Expansion Partnered Brands

Liz Claiborne Family of Brands DKNY Jeans Group Monet Family of Brands Cosmetics Family of Brands Revolutionizing the Partnering Model Corporate Support

Sourcing

Distribution Brand Licensing Logistics International Alliances Accessories Real Estate

IT Systems

Construction Management

The Team “Power Brands” “Brand Power” Brand Power Realigned Organizational Structure $190M Cost Savings 16 Brands Under Review Building Powerful Brands New Leaders, Strong Incumbents Marketing Investment