1. Ellen Tracy
© 2005 Liz Claiborne Inc.
Liz Claiborne Inc.
Liz Claiborne Inc.
1441 Broadway, New York, NY 10018
www.lizclaiborne.com

2. Senior Management
Liz Claiborne
C O N S O L I D AT E D F I N A N C I A L H I G H L I G H T S LIZ CLAIBORNE INC. AND SUBSIDIARIES
2004
Liz Claiborne Inc. designs and markets an extensive range of fashion apparel and accessories appropriate to wearing
C O R P O R AT E S E C R E TA RY
Theo v.d. Aardweg Edward Goepp Gail Onorato
occasions ranging from casual to dressy. Although they offer a wide array of styles, all Liz Claiborne Inc. brands share the
Diane Abbate-Fox Helene Goldberg Perry Oosting Nicholas Rubino
common characteristics of innovative fashion and exceptionally high quality and value. Products are manufactured to the
Lynn Ambrose Victoria Goldshtein-Graham Lori O’Rourke
Company’s specifications in the United States and abroad and are marketed through leading retailers in the United States, Asia,
I N V E S T O R R E L AT I O N S
Jeffrey Ansell Lynda Greenblatt Richard Ostell
Australia, Canada, the Carribean, Central America, Europe, Mexico, Middle East and South America.
Cynthia Ashey Kelly Gvildys Hans Ouwendijk Robert J.Vill
Jodie Austin Cami Hayduk Pericles Papayannis
(All dollar amounts in thousands REGISTRAR & TRANSFER AGENT
Stanley Austin Amy Hennisch Keelan Kenneth Pratt
2004 2003 2002 2001*** 2000***
except per common share data) Tina Au-Yeung Marc Hershkin Mary Ellen Prentis The Bank of New York
Kirkor Balci Shareholder Relations Department
William Higley Anurup Pruthi
P.O. Box 11258
$ 4,632,828 $ 4,241,115 $ 3,717,503 $ 3,448,522 $ 3,104,141
NET SALES David Baron David Hirschler Jane Randel
Church Street Station
Aaron Battista Suzanne Hochman Tom Reeve
2,142,562 1,889,791 1,619,635 1,427,250 1,233,872
GROSS PROFIT
New York, NY 10286
Kent Bisgaard Rene Holguin Mary Julia Ripperger
313,569** 279,693** 231,165** 192,057** 184,595**
NET INCOME 1-800-524-4458
Laura Bjurstrom Louise Howson Tony Ronayne 1-610-382-7833 (Outside the U.S.)
871,540 836,911 618,490 638,281 535,811
WORKING CAPITAL
Rebecca L. Blair Steven Hurwitz Rosana Rosales Thedford 1-888-269-5221 (Hearing Impaired –
3,029,752 2,606,999 2,268,357 1,951,255 1,512,159
TOTAL ASSETS TDD Phone)
Amy Blumberg Leonard Jacaruso Howard Rosenberger
1,811,789 1,577,971 1,286,361 1,056,161 834,285
STOCKHOLDERS’ EQUITY Kevin Bollbach Mary Lisa Jacobson Gary Ross E-Mail Address:
Shareowners@bankofny.com
Daryl Brown Peggi Jewell Nicholas Rubino
PER COMMON SHARE DATA*:
Lori Buchbinder Michael Jones Allison Rupprecht The Bank of New York’s Stock Transfer
Basic earnings 2.90** 2.60** 2.19** 1.85** 1.73**
Website:
Dana Buchman Anna Jorgensen Diana Ryan-Assatly
Diluted earnings 2.85** 2.55** 2.16** 1.83** 1.72**
Ann Bukawyn Ingo Jost Micheline Savarin http://www.stockbny.com
Book value at year end 16.66 14.40 12.02 10.04 8.15
Matthew Burris Emily Kam Boudewijn Schipper Send Certificates for Transfer and Address
Dividends paid 0.23 0.23 0.23 0.23 0.23 Dennis Butler Francis Kelly Margaret Schneider Maclay Changes To:
Leo Cantagalli Michelle Kessler-Sanders Alphons Schouten
108,128,172 107,451,157 105,592,062 103,993,824 106,813,198 Receive and Deliver Department
BASIC SHARES OUTSTANDING*
Robert Cardascia Lori Keurian Andrea Scoli P.O. Box 11002
109,886,352 109,619,241 107,195,872 105,051,035 107,494,886
DILUTED SHARES OUTSTANDING*
Church Street Station
Benedetta Casamento Adelle Kirk Elizabeth Selleck Hall
New York, NY 10286
Anne Cashill Steffie Kirschner Ashish Sen Sarma
N E T S A L E S (in millions of $)
Kevin Castanheiro Josephina Ko Tony Shellman INDEPENDENT REGISTERED
Eric Champagne John Kovac Glenn Shepard
2000 PUBLIC ACCOUNTING FIRM
3,104
Chris Chan Ron Kropp Kathryn Shipman Deloitte & Touche LLP
2001 3,449 Janie Chang Judith Kuipers Shawna Smith 2 World Financial Center
Kristin Clifford Yogi Laijawalla Willie Smith New York, New York 10281
2002 3,718
Christine Conforte Jacqueline Laipply Toni Sotelo
2003 4,241
Claudia Cordic Barry Landau Thomas Speight FORM 10-K
Anne Cosini Betty Lee Olivia Spence A copy of the Company’s Annual
2004 4,633
Report on Form 10-K, as filed with
Prakash Damodar Kwila Lee Ashod Spendjian
the Securities and Exchange
O P E R A T I N G I N C O M E (in millions of $) Cheryl Dapolito John Legg David Stiffman
Commission, is available to stock-
Kerry Davenport Ronnie Lemmens Janice Sullivan holders without charge upon written
2000 304
Lois Davis D. Bradley Lenz Carol Sweitzer request to Liz Claiborne Inc.,
John DeFalco Diane Long David Towers
2001 Investor Relations Department, One
332
Claiborne Avenue, North Bergen,
Michele Digenova Gina Lo Presti Larry Tronco
2002 390 New Jersey 07047, or by visiting
Sara Dennis Melanie Lyons Parker Vaughey
www.lizclaiborneinc.com
Katherine Devereux Kymberly Maas-Lahr Robert Vill
2003 471
Denise DiNoia Joelle Maher Erich Walker
2004 503 C E RT I F I C AT I O N S
Patricia Dipette Gerard Malmont Dionne Walsh
Liz Claiborne Inc. has filed with the
John Doherty Marie Mamone Nina Weigner
DILUTED EARNINGS PER SHARE* United States Securities and Exchange
Mark Donatiello Debbie Martin Chaka Wilson Commission all required certifications of
1.72
2000 Ronald Donchez Joseph Martorana Nancy Yao the Chief Executive Officer (CEO) and
Claude Doré Annette Mathieu Doreen Zaldivar-Burns Chief Financial Officer regarding the
1.83
2001
quality of Liz Claiborne Inc.’s public
Robin Droescher Jan Matthey Barry Zelman
disclosure for each of the periods ended
2.16
2002 Evan Drucker Beth Mayer Adam Zuckerman
January 1, 2005. In addition, Liz Claiborne
Steven Duva Laura Mays-Scuderi Paula Zusi
2.55
2003 Inc.’s CEO provided to the New York
Brian Dwan Henry McGuire Stock Exchange (NYSE) the annual CEO
2.85
2004 Christine Emmons Robert McKean certification regarding Liz Claiborne Inc.’s
compliance with the NYSE’s corporate
Paul Engelsman Andrew McLean
A S S E T I N V E S T M E N T * * * * (in millions of $) governance listing standards.
Stephen Fairchild Ellen Meiner
Rolando Felix Trent Merrill
2000 493 ANNUAL MEETING
Barbara Fevelo Hoad Carol Miller
2001 599 The Annual Meeting of Stockholders
Pam Flynn Jacques Mitterand
will be held at 10:00 a.m., local
Scott Formby Catherine Moellering
2002 688 time, on Thursday, May 19, 2005
Sandra Foushee Cathy Morales
at the offices of Liz Claiborne Inc.,
2003 795 Sandra Francisco John Moroz One Claiborne Avenue,
Nancy Fritze Nigel Moss North Bergen, New Jersey.
2004 941
Stephanie Garbarini Elizabeth Munoz Printed on recycled
Gail Garramone Marianne Naberhaus-Smith paper. Please recycle this
* Adjusted for a two-for-one stock split of our common stock, payable in the form of a 100% stock dividend paid on January 16, 2002 to shareholders of record as of the close of business on December 31, 2001.
document and help to
Raffaele Angelo Rosario Germano Elaine Nedder
** Includes the after tax effects of a net restructuring charge of $6,472 ($9,694 pretax) or $0.06 per share and a one time gain on sale of an equity investment of $7,965 ($11,934 pretax) or $0.07 per common
share in 2004, a restructuring gain of $429 ($672 pretax) or $0.004 per share in 2003, a restructuring charge of $4,547 ($7,130 pretax) or $0.04 per common share in 2002, a restructuring charge of $9,632 preserve our environment.
Joseph Giudice Maria Odee
($15,050 pretax) or $0.09 per common share in 2001, and restructuring charges of $13,466 ($21,041 pretax) or $0.13 per common share and a special investment gain of $5,606 ($8,760 pretax) or $0.05
Design: Pentagram
Shaun Glazier Sigrid Olsen
per common share in 2000.
*** On May 23, 2001, the Company acquired 100% of the equity interest in MEXX Group BV. The following unaudited pro forma information assumes the acquisition occurred on January 2, 2000: for 2001 and 2000
respectively, net sales of $3,591,273 and $3,456,863, net income of $180,297 and $177,063, basic earnings per share of $1.73 and $1.66, and diluted earnings per share of $1.72 and $1.65. The pro forma
information presented is not indicative of actual or future results.
**** Includes capital expenditures and in-store merchandise shops.

3. Everyone, Every Style
Our Company achieved its 36th
Women and men… girls and
consecutive quarter of sales growth
boys…apparel and non-apparel…
with sales up 9.2 percent for
modern and classic...career and
the full year. Our balance sheet
casual… for the home and at
remains healthy, our cash flow
the beach…our 38 brands fit all
strong, and in 2004 we delivered
facets of consumers’ lives.
an 11.8 percent increase in diluted
earnings per share.

4. Our Brands
Axcess
Bora Bora
C&C California
Candie’s ®
City DKNY ®
Claiborne
Crazy Horse
Curve
Dana Buchman
DKNY Active ®
DKNY Jeans ®
Elisabeth
Ellen Tracy
Emma James
Enyce
First Issue
Intuitions
Jane Street
J.H. Collectibles
Juicy Couture
Kenneth Cole New York
Lady Enyce
Laundry by Shelli Segal
LIZ
Liz Claiborne
Lucky Brand Jeans
Mambo
Marvella
Mexx
Monet
Monet 2
Reaction Kenneth Cole
Realities
Sigrid Olsen
Spark
Swé
Trifari
Villager

5. Our Markets
United States
Asia
Australia
Canada
Caribbean
Central America
Europe
Mexico
Middle East
South America
Our Channels
Upscale Department Stores
Mainstream
Department Stores
Owned and Operated
Specialty Stores
Independent Specialty Stores
E-Commerce
Mid-tier Department Stores
Mass Merchandisers
Factory Outlets

6. Everywhere
From Main Street to the mall…
department stores to specialty
stores… luxury to discount…
New York to Moscow… in stores
and online… our 38 brands
reach consumers wherever and
whenever they shop.
PA U L R . C H A R R O N
Chairman of the Board and Chief Executive Officer

7. D E A R S T O C K H O L D E R S , A S S O C I AT E S , B U S I N E S S PA R T N E R S A N D F R I E N D S :
I am pleased to report our Company again successfully navigated a volatile and unpredictable year.We ended 2004
with our 36th consecutive quarter of sales growth and sales up 9.2 percent. Our balance sheet remains healthy, our
cash flow strong, and we delivered an 11.8 percent increase in diluted earnings per share for the full year.
It is particularly gratifying that we were able to achieve these results in a world that was in flux, from the situation
in Iraq to the U.S. presidential campaign to an uneven global economy. In our own industry, we faced a domestic
apparel market that was flat in unit sales and a business environment defined by a challenging economy, increasing
competition, department store consolidation and changing consumer shopping patterns and lifestyles.
It is our ability to anticipate and adapt to change, to innovate and to evolve, that underscores our success in
2004 and is central to our future growth.That is evident throughout our Company, from the uniqueness of our
distinctive brands to the consistency with which we manage a portfolio as diverse as the consumers who buy
our products. This is a complex undertaking, but one where we have considerable experience and a relatively high
degree of success.
Our Portfolio Strategy
Our multi-brand portfolio is central to our strategy, not simply because it consists of many brands, but because
of the quality of those brands and the way they are managed.
It is true that a basket of brands has the potential to mitigate the inherent volatility of the fashion business, but not
all portfolios are created equal. Our competitive advantage is derived from the strength of our brands: well defined,
widely recognized, tailored to the needs of distinct constituencies and spanning a wide range of categories,
channels and geographies.These characteristics, combined with consistency of execution, are what distinguish our
portfolio and our Company.
Our ability to identify and interpret changing market dynamics, and to address them with consumer-relevant, trend-
right fashion apparel and accessories, is exemplified by many of our brands.
Juicy Couture anticipates demand for luxurious, sexy and sophisticated basics and today is one of the hottest
brands in the thriving contemporary category.
Lucky Brand Jeans taps the potential of distinctively styled premium denim. Sold in department stores and
in our own specialty stores, the brand is now four times larger than when we acquired it.
Sigrid Olsen knows how color and art can provide an emotional connection to apparel and is now poised
to become a true lifestyle brand, going beyond clothing to include accessories and, in 2005, bed, bath
and table products.
Ellen Tracy and Dana Buchman capitalize on the trend toward luxury and are leading brands in upscale
department and select specialty stores.
Axcess, our mid-tier brand for men and women, gained 30 percent over 2003 sales at Kohl’s, attesting to
the growing appeal of its contemporary styling.

8. Enyce’s success speaks to the extension of what was once urban streetwear to a new, less traditional mainstream
offering for young men.
Monet jewelry is proving that a 75-year-old brand can be made vital and relevant to today’s consumer, resulting
in another robust year in the U.S. and abroad.
Mexx, based in Amsterdam, has nearly doubled in size since the beginning of 2001 by offering unique styling
and exceptional value to modern, sophisticated European consumers.
While we are often seen as a women’s apparel company, it is worth noting that ten of our 27 apparel lines offer mens-
wear, either as stand-alone brands like Claiborne and Enyce or as part of dual gender names like Mexx, Lucky Brand
and Axcess. Our growth has been notable in this sector, with further opportunity under new or existing labels.
Liz Claiborne, Enduring Brand Preference
Yet even among these successes, the core Liz Claiborne brand is our single biggest contributor to sales and profits.
Products sold under this label account for 28 percent of revenues. It is a true lifestyle brand, offering apparel,
accessories, shoes, jewelry, eyewear and an increasing array of home products. Now in its third decade, Liz Claiborne
remains an icon to both retail customers and the ultimate consumer, and one of the top brands in the Women’s Wear
Daily 100, a leading fashion industry survey highlighting brands with the greatest consumer recall.
Sharper Focus on the Moderate Consumer
We operate selectively (and we believe more profitably) in the moderate price arena by understanding and
adapting to the distinct needs of our retail partners and the consumers they serve.The knowledge and experience
we possess in this sector is manifested in a unique value chain that allows us to increase flexibility, speed decision-
making and provide the styles and value demanded by these discerning consumers.Whether Emma James or
J.H. Collectibles among traditional department stores or Crazy Horse in JC Penney, Axcess and Villager in Kohl’s
or First Issue in Sears, these are all brands which translate on-trend fashion at moderate prices, the appropriate
mix of both aspiration and value.
Global Coverage
Thirty of our brands are now sold in countries outside the United States, up from just 16 four years ago, with
sales representing 24 percent of the total in 2004 compared with 4 percent in 2000. Our most substantial
international presence is in Europe, propelled by Mexx. This brand leads our portfolio in diversity of distribution,
in particular direct-to-consumer specialty stores, concessions and franchises, which give us greater control over
our own destiny.
Now we are evolving the single-brand Mexx organization into a multi-brand platform that will apply Mexx’s
European market expertise to other brands in our portfolio. During 2004 we moved the headquarters of Liz Claiborne
Europe from the U.K. to Amsterdam, preparing to expand this brand into untapped markets like the Benelux
region and Germany. The Mexx group is also launching Lucky Brand and Ellen Tracy and supporting Enyce on
the Continent.
We took a similar approach in Canada, consolidating the Liz Claiborne and Mexx offices and converting Mexx
in that country to a multi-brand platform that provides operating efficiencies by supporting many of our businesses.

9. Looking beyond Europe and Canada, our international business has more than doubled in Latin America, Asia and
Australia since 2001, including sales from Liz Claiborne, Emma James, Claiborne, DKNY Jeans, Lucky Brand,
Monet, Dana Buchman and Ellen Tracy. Here again, the flexibility inherent in our portfolio enables us to focus on
the brands best suited to the market conditions in each country or region while mitigating fashion risk.
Direct-to-Consumer
In 2004 we continued to grow our own retail businesses, ending the year with 554 Company-owned stores
worldwide.These include 269 specialty stores in nine different formats and 285 outlet stores in the United States,
Europe and Canada. Because direct-to-consumer retailing allows us to control every aspect of brand management,
we are committed to supporting its growth with substantial investments of capital, sophisticated data-based
marketing and, importantly, value chain modifications that address the unique needs of a vertical retail structure.
The results from our retail businesses are encouraging. In Europe, Mexx scored 9 percent comp store increases
and expanded its retail store presence. Domestically, Lucky Brand had an outstanding year, with comp store
revenues up 18 percent over 2003 and 13 new stores. Juicy Couture had a terrific store opening in Las Vegas, with
results that to date have exceeded even our most optimistic expectations, giving us reason to aggressively, but
selectively, add new locations. Sigrid Olsen retail also grew rapidly, increasing its count to 25 specialty stores with
more to come in 2005. Elisabeth stores now carry large-size apparel from Emma James, Liz Claiborne, Sigrid Olsen,
Dana Buchman and Ellen Tracy as appropriate to the location and consumer tastes. This “boutique” approach
has been well received and will be extended.
The introduction of Mexx into the U.S. via seven specialty stores in the Northeast fared well, with strong
productivity and good conversion rates, though we can do better. As we refine this concept in the U.S. in 2005,
we are taking advantage of the success the brand has had in freestanding retail stores abroad and in Canada,
and are working closely with our colleagues in these areas to help shape the product mix that works best in the U.S.
E-commerce is an as yet small but important and growing component of our direct-to-consumer business.
Our Lucky Brand, Liz Claiborne and Elisabeth sites, the latter mirroring the boutique store concept, all realized
modest revenue gains in 2004. Importantly, our experience with these sites increases our knowledge of this
emerging channel, facilitating the introduction of additional brands to online consumers as appropriate.
Portfolio Microcosms: Accessories and Licenses
Increasingly, our accessories portfolio is a mirror of our core strategy, growing in 2004 to 19 brands available across
multiple channels and geographies. Our licensed lines too have become an extension of our diversified portfolio,
having grown from eight licenses in 1999 to 56 today.
Overall, both our accessories and licensee portfolios had significant accomplishments in 2004, even exceeding
the impressive gains made in 2002 and 2003, despite an unforgiving retail environment. The key to such consistently
excellent results is understanding what makes each brand different, relevant and special, then faithfully translating
this appeal across a broad number of product classifications and lifestyle categories. In this way, our accessories,
jewelry and licensing operations are able to extend each brand’s presence in the market without compromising
its essence.

10. The Liz Claiborne Home licenses provide an excellent example of such lifestyle branding, building on the
awareness of and preference for Liz Claiborne apparel to include bed and bath, blankets and throws, flooring, table
linens, furniture, home storage and fabric.
Staying Close to the Consumer
Managing multiple brands across channels and geographies is highly demanding, and no company, no matter
how talented and dedicated its people, can anticipate every market change or trend.That is why we use a variety
of formal research methodologies to stay continually in touch with our consumers. And it is why we are making
major capital expenditures in Customer Relationship Management (CRM) systems for our retail stores.This
point-of-sale, register-linked technology is a state-of-the-art tool for gathering relevant consumer data as transactions
occur. As a result, we know what consumers are buying in real time, and armed with that information, we can
tailor our merchandising and marketing for greater efficiency.
Technology as a Competitive Tool
CRM is simply one example of our Company-wide commitment to technology as a powerful means of gaining
competitive advantage. From product development to distribution, virtually every process in our supply chain has
been enhanced by our long-term commitment to relevant technology. Proprietary software and systems enable
us to more quickly and cost-efficiently get the right product to the right stores at the right time. For instance,
automated distribution results in more productive warehousing and enables us to mitigate disruptions in deliveries
owing to slowdowns or undercapacity in ports.Technology allows us to be more responsive to our retail partners
as they push vendors to assume responsibility for assortment and merchandising functions traditionally handled
at the store level. Applications such as LizPlanning allow us to collaborate with customers to a greater degree, better
enabling us to meet retailers’ need for differentiation and tighter inventory control. And the globalization of our
enterprise would be much more difficult and costly without the proprietary technology that allows our associates
worldwide to speak and act in lock-step.
Managing Complexity
We are 38 brands but one Company when it comes to sharing information and leveraging our infrastructure –
sourcing, logistics, finance, information technology and marketing – across our corporation. Doing so demands
a Company-wide culture of true and consistent collaboration, and above all a commitment to organizational
development and managerial excellence.
Our decentralized management structure, in which essentially each of our businesses has a general manager and
dedicated staff to ensure the realization of a brand’s financial and strategic objectives, enables us to more effectively
manage complexity and rapid change across many fronts.Via common systems and lots of corporate contact and
control points, we communicate constantly and share the learnings from the successes we have enjoyed as well as
the mistakes we have made.This makes us all smarter and better prepared to face the challenges of doing business
in the apparel industry today.
Sourcing in a Quota-Free World
The elimination of quota for apparel and textiles puts a premium on superior sourcing, logistics and distribution.
Never before have speed, accuracy, flexibility and reliability been so critical. Here again, our investments in

11. technology give us competitive advantage, linking and supporting our associates around the world and enabling
us to understand and respond more quickly to any challenge, whether it be meeting department store needs for
differentiation or moving product more quickly to market.
There has been a great deal in the news about the end of quota, which officially expired on December 31, 2004.
While much remains in flux, one thing that is clear is that we are not likely to be operating in a truly unrestricted
trade environment in the near future. Currently, there are numerous efforts to replace quotas with restrictive trade
barriers and other means of limiting exports, principally from China.While we do not claim to know the eventual
outcome of this turmoil, we will continue to prepare for dramatic change, concentrating in the short term on
our proven competencies in supply chain management.
How We Will Grow
We will grow as we have in the past, both organically and via strategic acquisitions, seeking to gain market leverage
from the opportunities presented by a changing environment. In acquiring brands, we will look to quality names
that compete at the upper ends of their respective price zones and occupy unique niches in the marketplace by
virtue of their allure and distinctiveness. Our development efforts will span the bridge, better and moderate price
sectors, and will include wholesale and retail business models, apparel and non-apparel, domestic and international
and consumers of both genders and all ages.
Whether newly acquired or now part of our portfolio, we acknowledge that one brand can no longer be all things
to all people. Simply put, those brands that are sold primarily in one country, essentially via one channel and in
one major category, will be extremely difficult to sustain in this highly competitive environment.We see ourselves
operating in the era of the “power brand”– a global, multi-channel, multi-category brand that reaches consumers
when, where and how they shop.
Not surprisingly, we see brands like these as a key path to growth.We are building them organically with Liz Claiborne,
Sigrid Olsen, Juicy Couture, Lucky Brand and Mexx, and we will look for power brand potential in acquisition
candidates. As an example, we believe that our acquisition of C&C California in January 2005 has such promise.
While it is small compared with many of our divisions, this brand in just two years has become one of the most
successful in the contemporary zone.With its chic California-inspired basics, C&C appeals to fashion-conscious
women between 18 and 45 and can evolve into multiple classifications that reflect the relaxed California lifestyle
in both apparel and non-apparel.
The Road Ahead
As we contemplate the future, we welcome Mary Kay Haben to our Board of Directors. An accomplished
packaged goods marketer and general manager with Kraft Foods Inc., Mary Kay has spent her career managing
brands in complex consumer-products environments.That experience is particularly relevant to our portfolio
approach and makes her an excellent resource for the Company and its stockholders.
Finally, as we look ahead, we must acknowledge that the one constant in our business is change and that it is
happening at an accelerated pace. New fashion trends come to market faster. More than ever, consumers manifest
declining channel loyalty and demand greater value, even as they spend less of their discretionary income on

12. apparel and accessories. Our retail partners are aggressively seeking to evolve their businesses.The elimination
of quota will change our supply chain practices.The international sector is rapidly being transformed as new
market opportunities emerge.
Nevertheless, we believe that we can prosper. It will require inspired design and responsive product, thoughtful
planning, diligent leveraging of infrastructure and consistently superior execution.We acknowledge that this is a tall
order; and that to live up to our promise we cannot yield to complacency and accept the status quo, but instead
must strive to better manage the complexity inherent in a growing fashion business.We will continue to learn
from our mistakes and profit from the virtues of collaboration that are now so much a part of this Company’s
culture. Above all, we must nurture and empower the more than 14,000 talented associates who together will move
our Company forward. If we do this, we will grow and succeed in this business of change and constant evolution.
My associates and I thank you for your support.
Sincerely,
Paul R. Charron
Chairman of the Board and Chief Executive Officer

13. Mexx
Giving Back
Giving back to the communities that
help make us successful is part of the
culture of Liz Claiborne Inc.
Community involvement is integral
to our way of life, be it through
contributions from the Liz Claiborne
Foundation,direct service via our Liz Acts
Our Brands
employee volunteer program or by
generating awareness of domestic
violence through our award-winning
“Love Is Not Abuse” education and
prevention program.

14. T H E B R A N D S O F L I Z C L A I B O R N E I N C.* ATTITUDE & STYLE PRICE RANGES PRODUCTS MARKETS DISTRIBUTION
Owned and Operated Specialty Stores
Mainstream Department Stores
Independent Specialty Stores
Mid-Tier Department Stores
Upscale Department Stores
Cosmetics and Fragrances
Denim and Streetwear
Our Brands
Mass Merchandisers
Children’s Apparel
Women’s Apparel
Central America
Factory Outlets
South America
Men’s Apparel
United States
E-Commerce
Middle East
Accessories
Caribbean
Australia
Canada
Relaxed
Modern
Popular
Mexico
Europe
Classic
Bridge
Better
Asia
Axcess
Bora Bora
C & C California
Candie’s**
City DKNY**
Claiborne
Crazy Horse
Curve
Dana Buchman
DKNY Jeans /DKNY Active**
Elisabeth
Ellen Tracy
Emma James
Enyce/Lady Enyce
First Issue
Intuitions
Jane Street
J.H. Collectibles
Juicy Couture
Kenneth Cole New York /Reaction Kenneth Cole**
Laundry by Shelli Segal
LIZ
Liz Claiborne
Lucky Brand Jeans
Mambo
Marvella
Mexx
Monet
Monet 2
Realities
Sigrid Olsen
Spark
Swé
Trifari
Villager
*As of March 2005 **Licensed to Liz Claiborne Inc.

15. Liz Claiborne Coats and Shoes
PRODUCTS THE LICENSES OF LIZ CLAIBORNE INC.
Laundry by Shelli Segal
Our Licenses
Lucky Brand Jeans
Dana Buchman
Juicy Couture
Liz Claiborne
Crazy Horse
Sigrid Olsen
Ellen Tracy
Claiborne
First Issue
Villager
Axcess
Mexx
A P PA R E L
Bridesmaid
Dresses /Suits
Dress Shirts
Formalwear
Intimate Apparel
Kids
Mainfloor Pants
Outerwear
Sleepwear/Loungewear
Swimwear
Tailored Clothing
N O N - A P PA R E L
Belts
Cosmetics and Fragrances
Footwear
Jewelry
Legwear /Socks
Luggage
Men’s Accessories
Neckwear /Scarves
Optics
Slippers
Sunglasses
Umbrellas
Watches
HOME
Bed and Bath
Blankets
Decorative Fabrics
Flooring
Furniture
Games and Toys
Home Storage
Tabletop

16. Dana Buchman
Liz Claiborne Home
Our Licenses
Liz Claiborne Accessories
Classic Crazy Horse Dana Buchman Elisabeth Ellen Tracy Emma James

17. Crazy Horse
First Issue Liz Claiborne Villager

18. Emma James
Classic Crazy Horse Dana Buchman Elisabeth Ellen Tracy Emma James

19. Villager
First Issue Liz Claiborne Villager

20. Intuitions
Modern Axcess C & C California City DKNY Claiborne Curve Intuitions Jane Street

21. Juicy Couture
Juicy Couture Kenneth Cole New York Laundry by Shelli Segal LIZ Mexx Realities Swé

22. Laundry by Shelli Segal
Modern Axcess C & C California City DKNY Claiborne Curve Intuitions Jane Street

23. Axcess
Juicy Couture Kenneth Cole New York Laundry by Shelli Segal LIZ Mexx Realities Swé

24. J.H. Collectibles
Relaxed J.H. Collectibles Sigrid Olsen

25. Sigrid Olsen

26. DKNY Jeans
Lucky Brand Jeans
Denim & Streetwear DKNY Jeans Enyce Lady Enyce

27. Lucky Brand Jeans

28. Claiborne
Menswear Axcess C & C California Claiborne Crazy Horse Curve

29. Enyce
DKNY Jeans Enyce Juicy Couture Lucky Brand Jeans Mexx

30. Fashion Accessories Axcess Claiborne Crazy Horse Ellen Tracy Emma James

31. Juicy Couture Liz Claiborne Lucky Brand Jeans Mexx Villager

32. Jewelry Crazy Horse Ellen Tracy Emma James First Issue Juicy Couture
Kenneth Cole New York Liz Claiborne Lucky Brand Jeans Marvella Mexx Monet
Realities
Monet 2 Reaction Kenneth Cole Trifari Villager

33. Handbags Crazy Horse Ellen Tracy Emma James First Issue Juicy Couture
Liz Claiborne Lucky Brand Jeans Mexx Realities Sigrid Olsen Villager

34. Kim Cattrall.
P r o d u c e r. A c t r e s s . S e d u c t r e s s .
A new fragrance
for women and men.
Candie’s
Fragrances Bora Bora Curve Curve Crush Ellen Tracy

35. Spark
LIZ Lucky You Mambo Mexx Realities Spark Seduction

36. Mexx

37. Liz Claiborne Inc. 2004 Financial Statements

38. Management’s Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
Business/Segments
We operate the following business segments:Wholesale Apparel,Wholesale Non-Apparel and Retail.
Wholesale Apparel consists of women’s and men’s apparel designed and marketed worldwide under various trademarks owned
by the Company or licensed by the Company from third-party owners. This segment includes our businesses in our LIZ
CLAIBORNE and LIZ brands along with our better apparel (CLAIBORNE (men’s), INTUITIONS, REALITIES, SIGRID OLSEN
and SWE), bridge priced (DANA BUCHMAN and ELLEN TRACY), Special Markets (which is comprised of our mid-tier
brands (AXCESS, CRAZY HORSE, FIRST ISSUE and VILLAGER) and moderate department store brands (EMMA JAMES and
J.H. COLLECTIBLES)), denim/street wear (ENYCE and LUCKY BRAND DUNGAREES) and contemporary sportswear (JUICY
COUTURE and LAUNDRY BY SHELLI SEGAL) businesses, as well as our licensed DKNY JEANS, DKNY ACTIVE, and CITY
® ®
DKNY businesses and our licensed KENNETH COLE NEW YORK and REACTION KENNETH COLE businesses (as previously
®
announced, our KENNETH COLE apparel license expired at the end of 2004).The Wholesale Apparel segment also includes
wholesale sales of women’s, men’s and children’s apparel designed and marketed in Europe, Canada, the Asia-Pacific region and
the Middle East under our MEXX brand names.
Wholesale Non-Apparel consists of handbags, small leather goods, fashion accessories, jewelry and cosmetics designed and marketed
worldwide under certain of the above listed and other owned or licensed trademarks, including our MONET, TRIFARI and
MARVELLA labels.
Retail consists of our worldwide retail operations that sell most of these apparel and non-apparel products to the public through
our 285 outlet stores, 269 specialty retail stores and 622 international concession stores (where the retail selling space is either
owned and operated by the department store in which the retail selling space is located, or leased and operated by a third party,
while, in each case, the Company owns the inventory), and our e-commerce sites.This segment includes specialty retail and
outlet stores operating under the following formats: MEXX, LUCKY BRAND DUNGAREES, LIZ CLAIBORNE, ELISABETH,
DKNY JEANS, DANA BUCHMAN, ELLEN TRACY, SIGRID OLSEN, MONET and JUICY COUTURE, as well as our Special
®
Brands Outlets which include products from our Special Markets divisions. In the first half of 2003, we completed the closure
of our 22 LIZ CLAIBORNE domestic Specialty Retail stores (see Note 14 of Notes to Consolidated Financial Statements).
The Company, as licensor, also licenses to third parties the right to produce and market products bearing certain Company-
owned trademarks. The resulting royalty income is not allocated to any of the specified operating segments, but is rather
included in the line “Sales from external customers” under the caption “Corporate/Eliminations” in Note 21 of Notes to
Consolidated Financial Statements.
Competitive Profile
We operate in global fashion markets that are intensely competitive. Our ability to continuously evaluate and respond to
changing consumer demands and tastes, across multiple market segments, distribution channels and geographies, is critical to our
success. Although our brand portfolio approach is aimed at diversifying our risks in this regard, misjudging shifts in consumer
preferences could have a negative effect. Other key aspects of competition include quality, brand image, distribution methods,
price, customer service and intellectual property protection. Our size and global operating strategies help us to compete
successfully by positioning us to take advantage of synergies in product design, development, sourcing and distribution of our
products throughout the world.We believe we owe much of our recent success to our ability to identify strategic acquisitions,
our ability to grow our existing businesses, to our product designs and to our having successfully leveraged our competencies
in technology and supply chain management for the benefit of existing and new (both acquired and internally developed)
businesses. Our success in the future will depend on our ability to continue to design products that are acceptable to the
marketplaces that we serve, to source the manufacture of our products on a competitive basis, particularly in light of the
impact of the recent elimination of quota for apparel products, and to leverage our technology competencies.
Reference is also made to the other economic, competitive, governmental and technological factors affecting the Company’s
operations, markets, products, services and prices as are set forth under “Statement Regarding Forward-Looking Disclosure”
below and in our 2004 Annual Report on Form 10-K, including, without limitation, those set forth under the heading
“Business-Competition; Certain Risks.”
Operating Highlights
Within the past five fiscal years, the Company’s revenues have grown to a record $4.633 billion in 2004 from $3.104 billion in
2000. This growth has been largely a result of our acquisitions made as part of our multi-brand, multi-channel, multi-geography
diversification strategy, under which we strive to offer consumers apparel and non-apparel products across a range of styles, price
points and channels of distribution. In implementing this strategy, we have acquired a number of businesses, most of which have
experienced notable growth post-acquisition. Our revenue growth over the five-year period also reflects the growth of our
Special Markets business, which sells products at prices lower than our better-priced offerings, and our non-apparel businesses.
With our acquisitions and the growth in our bridge-priced, contemporary, moderate and non-apparel businesses, we have
Liz Claiborne Inc. & Subsidiaries
38

39. Management’s Discussion and Analysis of Financial Condition and Results of Operations
diversified our business by channels of distribution, price point and target consumer, as well as geographically. Within the five-
year period, our gross profit rate has improved from 39.7% in 2000 to 46.2% in 2004. This rate improvement reflects the
acquisitions of MEXX Europe and MEXX Canada, MONET, ELLEN TRACY, LUCKY BRAND DUNGAREES and JUICY
COUTURE, all of which operate at rates higher than the Company’s better-priced businesses (see “Recent Acquisitions”
below), as well as our efforts to better manage our inventories and a reduction in our manufacturing costs as a result of a
consolidation in our supplier base. As a result, operating income has grown 66% to $502.7 million in 2004 from $303.7
million in 2000, and diluted EPS increased 66% to $2.85 in 2004 from $1.72 in 2000.
2004 Overall Results
Net Sales
Net sales in 2004 were a record $4.633 billion, an increase of $391.7 million, or 9.2%, over 2003 net sales.
The sales result reflects the inclusion of $209.8 million of additional sales from our recently acquired ENYCE (acquired
December 1, 2003) and JUICY COUTURE (acquired April 7, 2003) businesses. Approximately $95.4 million of the sales
increase was due to the impact of foreign currency exchange rates, primarily as a result of the strengthening euro, on the
reported results of our international businesses.We also experienced sales increases in our MEXX Europe, DKNY Jeans, LUCKY
®
BRAND DUNGAREES, SIGRID OLSEN, and Cosmetics businesses.
These increases more than offset expected sales decreases in our LIZ CLAIBORNE better-priced department store business
and our Special Markets businesses. Our LIZ CLAIBORNE business has been challenged by increasingly conservative buying
patterns of our retail store customers as they continue to focus on inventory productivity and seek to differentiate their
offerings from those of their competitors, the growth in department store private label brands and increased competition in the
department store channel as a result of the introduction of new offerings by our competitors. In addition, the department store
channel has been challenged by migration of consumers away from malls to national chains and off-priced retailers, as well as
a general decline in prices for non-luxury apparel products.
Looking forward, we expect that our retail customers will continue a conservative approach to planning inventory levels, with
continued focus on inventory productivity and an increasing emphasis on reorder (quick turn) business. Our technological
capabilities, coupled with modern business models and an evolving supply chain, enable us to partner with our customers to
quickly identify and replenish those items that are trending well with consumers.We have diversified geographically, with our
international operations representing nearly 25% of our sales in 2004 as compared to 22% in 2003. We continue to view
international as an important area of growth and are working to build the capability to launch brands from our domestic
portfolio in markets outside the United States while continuing to evaluate growth opportunities available through business
development efforts outside the United States.Also, as we discussed above, through our acquisitions and internal growth, we have
diversified our business by channels of distribution, price point and target customer. We note that our 2004 fiscal year was
comprised of 52 weeks, as compared to 53 weeks in 2003; however, we do not believe that this extra week had a material impact
on our 2003 overall results.
Gross Profit and Net Income
Our gross profit improved in 2004 reflecting continued focus on inventory management and lower sourcing costs, offsetting
gross margin pressure resulting from a highly promotional retail environment. Our gross profit also benefited from the inclusion
of a full year’s activity for our JUICY COUTURE business and growth in our MEXX Europe business, as each of these businesses
run at gross profit rates higher than the Company average. Overall net income increased to $313.6 million in 2004 from $279.7
million in 2003, reflecting the benefit received from our sales and gross profit rate improvements.
Balance Sheet
Our financial position continues to be strong.We ended 2004 with a net debt position of $147.2 million as compared to $115.3
million at 2003 year-end.We generated $457.3 million in cash from operations during fiscal 2004, which enabled us to fund
our $116.8 million share repurchase in the second quarter, the final payment of $192.4 million (160 million euro) for MEXX
Europe and our capital expenditures of $146.4 million, while increasing our net debt position by only $31.9 million. The
increase in net debt was primarily due to the foreign currency exchange translation on our Eurobond, which added $33.9
million to our debt balance.
Liz Claiborne Inc. & Subsidiaries 39

40. Management’s Discussion and Analysis of Financial Condition and Results of Operations
International Operations
Revenues for the last five years are presented on a geographic basis as follows:
2004 2003 2002 2001 2000
IN THOUSANDS
Domestic $ 3,502,565 $ 3,304,614 $ 3,037,325 $ 3,031,318 $ 2,984,927
International 1,130,263 936,501 680,178 417,204 119,214
Total Company $ 4,632,828 $ 4,241,115 $ 3,717,503 $ 3,448,522 $ 3,104,141
In 2004, sales from our international segment represented 24.4% of our overall sales, as opposed to 3.8% in 2000, primarily due
to our acquisitions of MEXX Europe and MEXX Canada and, to a lesser extent, MONET.We expect our international sales to
continue to represent an increasingly higher percentage of our overall sales volume as a result of further anticipated growth in our
MEXX Europe business and from the recent launch of a number of our current domestic brands in Europe utilizing the MEXX
corporate platform, including ENYCE, LIZ CLAIBORNE, MONET and LUCKY BRAND DUNGAREES as well as the introduction
of our ELLEN TRACY brand in Europe.Accordingly, our overall results can be greatly impacted by changes in foreign currency
exchange rates. For example, the impact of foreign currency exchange rates represented $95.4 million, or 49.2%, of the increase
in international sales from 2003 to 2004. Over the past few years, the euro and the Canadian dollar have strengthened against the
U.S. dollar. While this trend has benefited our sales results in light of the growth of our MEXX Europe and MEXX Canada
businesses, these businesses’ inventory, accounts receivable and debt balances have likewise increased. Although we use foreign
currency forward contracts and options to hedge against our exposure to exchange rate fluctuations affecting the actual cash flows
associated with our international operations, unanticipated shifts in exchange rates could have an impact on our financial results.
Recent Acquisitions
On January 6, 2005, we acquired all of the equity interest of C&C California, Inc. (“C&C”). Based in California and founded
in 2002, C&C is a designer, marketer and wholesaler of premium apparel for women, men and children through its C&C
CALIFORNIA brand. C&C sells its products primarily through select specialty stores as well as through international distributors
in Canada, Europe and Asia. The purchase price consisted of an initial payment of $29.5 million, including fees, plus contingent
payments in fiscal years 2007, 2008 and 2009 that will be based upon a multiple of C&C’s earnings in each year. C&C generated
net sales of approximately $21 million in fiscal 2004.An independent third party valuation of the trademarks, trade names and
customer relationships of C&C is currently in process.We estimate that the aggregate of the contingent payments will be in the
range of approximately $50-60 million. The contingent payments will be accounted for as additional purchase price.
On December 1, 2003, we acquired 100 percent of the equity interest of Enyce Holding LLC (“Enyce”), a privately held
fashion apparel company, for a purchase price at closing of approximately $121.9 million, including fees and the retirement of
debt at closing, and an additional $9.7 million for certain post-closing adjustments and assumptions of liabilities that were
accounted for as additional purchase price. Based upon an independent third-party valuation of the tangible and intangible assets
acquired from Enyce, $27.0 million of purchase price has been allocated to the value of trademarks and trade names associated
with the business, and $17.5 million has been allocated to the value of customer relationships. The trademarks and trade names
have been classified as having indefinite lives and will be subject to an annual test for impairment as required by SFAS No. 142.
The value of customer relationships is being amortized over periods ranging from 9 to 25 years.
On April 7, 2003, we acquired 100 percent of the equity interest of Juicy Couture, Inc. (formerly,Travis Jeans, Inc.) (“Juicy
Couture”), a privately held fashion apparel company. The total purchase price consisted of:(a) a payment, including the assumption
of debt and fees, of $53.1 million, and (b) a contingent payment to be determined as a multiple of Juicy Couture’s earnings for
one of the years ended 2005, 2006 or 2007. The selection of the measurement year for the contingent payment is at either party’s
option. We estimate that, if the 2005 measurement year is selected, the contingent payment would be in the range of
approximately $99-103 million. The contingent payment will be accounted for as additional purchase price. Based upon an
independent third-party valuation of the tangible and intangible assets acquired from Juicy Couture, $27.3 million of purchase
price has been allocated to the value of trademarks and trade names associated with the business. The trademarks and trade names
have been classified as having indefinite lives and will be subject to an annual test for impairment as required by SFAS No. 142.
On July 9, 2002, we acquired 100 percent of the equity interest of Mexx Canada, Inc., a privately held fashion apparel and
accessories company (“Mexx Canada”). The total purchase price consisted of: (a) an initial cash payment made at the closing
date of $15.2 million; (b) a second payment made at the end of the first quarter 2003 of 26.4 million Canadian dollars (or $17.9
million based on the exchange rate in effect as of April 5, 2003); and (c) a contingent payment to be determined as a multiple
of Mexx Canada’s earnings and cash flow performance for the year ended 2004 or 2005. In December 2004, the 2004 measure-
ment year was selected by the seller for the calculation of the contingent payment.This payment will be made in cash during
the first half of 2005; we estimate that the payment will be in the range of 42-44 million Canadian dollars (or $35-37 million
based on the exchange rate as of January 1, 2005). The contingent payment will be accounted for as additional purchase price.
Liz Claiborne Inc. & Subsidiaries
40