REFILE-UPDATE 3-Liz Claiborne sees Q4 loss, amends credit

(Refiles to drop extraneous word in headline)

* Sees Q4 loss of 0-15 cts/shr; prior view was for profit

* Amends credit facility to $600 mln from $750 mln

* Extends maturity to May 2011 from October 2009

* Shares fall 3.4 pct (Recasts, adds analyst comment, updates share move)

By Martinne Geller

NEW YORK, Jan 13 (Reuters) - Liz Claiborne Inc (LIZ.N) warned investors that it would likely post a quarterly loss instead of a previously expected profit due to deep discounts on its clothing, sending its shares down more than 3 percent.

The owner of the Juicy Couture, Kate Spade and Lucky Brand chains also announced on Tuesday that it had trimmed the amount of its revolving credit facility and extended the time frame.

The news initially sent Liz Claiborne shares 11 percent higher as investors had been relieved over the company's ability to meet debt covenants, but concerns soon mounted over how long it would suffer sales declines in a recession.

"Amending the credit facility was great in that it gives them additional flexibility financially, but the overall retail environment continues to be really challenging and the fourth quarter is definitely reflective of that," said Michelle Chang, analyst at Morningstar.

Citigroup analyst Kate McShane noted that the new forecast highlighted "the likely prolonged nature of Liz's overall turnaround" due to the recession.

Despite picking up in the last few weeks of the quarter, same-store sales at Juicy Couture, Lucky Brand and Kate Spade fell at a mid-teen percentage rate. Same-store sales at the Mexx chain fell 12 percent, the company said.

As a result, Liz Claiborne now expects fourth-quarter results to range from nil per share to a loss of 15 cents per share. That compares with its earlier forecast calling for earnings in the range of 19 to 24 cents per share.

Analysts on average had been expecting a profit of 19 cents per share, according to Reuters Estimates.

"Needless to say, the operating environment in the fourth quarter was the most challenging we have experienced in decades," Chief Executive William McComb said.

CREDIT EXTENSION