Some Liz Claiborne Brands Exclusive to JC Penney

Clothing maker Liz Claiborne Inc. said Thursday it will help reverse its fortune by moving its namesake line to J.C. Penny Co. from Macy's Inc. and other stores and taking the line designed by Isaac Mizrahi to the TV shopping channel QVC.

News of the 10-year deal with J.C. Penney sent Liz Claiborne's stock up 28 percent. J.C. Penney's shares rose to a 52-week high.

Under the licensing agreement, J.C. Penney will be the sole U.S. department store to sell the company's Liz Claiborne and Claiborne lines of women's wear, along with its Liz & Co. and Concepts by Claiborne brands. The deal includes accessories, shoes, household products and men's clothing, as well as women's. The lines will debut next fall.

The company said prices for the Liz Claiborne New York brand designed by Isaac Mizrahi will be higher than prices for the lines at Penney but said prices have not been set.

Claiborne's deal with QVC is a multiyear deal with renewal rights.

Mizrahi made big news when he moved to Liz Claiborne after his long-standing deal with low-price retailer Target Corp. ended. His arrival was seen as a way for Liz Claiborne to update its image.

The company's other lines — including Kate Spade, Juicy Couture, Lucky Brand and Mexx and those brands' stand-alone stores — are not affected by the deal announced Thursday.

Women's clothing makers have been hit hard as consumers rein in spending because women often cut spending on themselves before cutting back for their families. Although it has said it expects to post a loss for 2009, Liz Claiborne said it expects a profit for 2010 because of the agreement.

In a conference call with investors Thursday, CEO William McComb said the collection designed by Mizrahi did not get the support it needed from department stores when it launched last spring in the depths of the recession.

"Floor sets and marketing support weren't different enough to break through the clutter," said McComb. "We found ourselves in a strategic no-man's land."