UPDATE 2-Liz Claiborne profit misses estimates; outlook cut

(Recasts first paragraph; adds analysts' estimates, CEO quote)

NEW YORK, Oct 30 (Reuters) - Clothing company Liz Claiborne Inc (LIZ.N: Quote, Profile, Research, Stock Buzz) on Tuesday posted a sharply lower quarterly profit that missed analysts' estimates and cut its full-year outlook as it sells some underperforming brands.

The company, whose labels include Juicy Couture, Lucky Brand Jeans, Ellen Tracy and Dana Buchman as well as its namesake sportswear line, said third-quarter net income fell to $33.1 million, or 33 cents per share, from $95.2 million, or 93 cents per share, a year earlier.

Excluding restructuring expenses, a loss from the sale of some brands, and an impairment charge, earnings were 63 cents per share, missing the analysts' average forecast of 67 cents, according to Reuters Estimates.

"While third-quarter 2007 results are tough to look at, particularly compared to last year, they are consistent with what we forecasted back in May," Chief Executive William McComb said in a statement.

Liz Claiborne, like rival Jones Apparel Group Inc (JNY.N: Quote, Profile, Research, Stock Buzz), has struggled due to a squeeze on moderate apparel lines, falling demand for traditional upscale brands and lower sales from consolidating department stores that increasingly promote their own private labels.

In July, McComb announced a restructuring that included a plan to sell 16 wholesale brands and cut up to 800 jobs.

The company said on Tuesday that the turnaround plan was on track, and even ahead of its cost reduction targets for 2008, with $130 million implemented or well under way. The company also said it was ahead of schedule on divesting or exiting the 16 brands.