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December 30, 2005
Online Shopping Surges
Online holiday spending surged 30% to over $30 billion, according to a new survey.
While much of the growth came in the computer and electronics sectors, the sharp rise points to greater consumer confidence in Internet shopping in general.
Apparel and jewelry retailers should take note, as they may have to learn to compete in the online world if they aren’t already. Whether it’s an Internet storefront, or just establishing a presence online, few can afford to ignore the outlet.
Posted by Blacks at 01:40 PM | Comments (0)
December 28, 2005
Consumer Confidence Creeps Up
Consumer confidence rebounded in December, driven by general economic strength, declining oil prices and job growth.
The consumer confidence index climbed to 103.6, compared to 98.3 in November and 85.2 in October, according to a Conference Board report released Wednesday.
The report reflects positive expectations for the New Year, and implies that consumers have overcome the economic ambivalence caused by Hurricanes Katrina and Rita.
Posted by Blacks at 01:04 PM | Comments (0)
December 27, 2005
December Sales Still Unclear
Early numbers on holiday retail sales have so far been mixed, with some sources reporting 8 percent year-over-year growth, and others sticking to a modest 3 percent.
What is clear is that categories such as home furnishings, video games and electronics were the big movers, while apparel and jewelry did not fare as well.
We are receiving some anecdotal reports from our menswear merchants that sales picked up significantly in the week before Christmas, however.
Posted by Blacks at 12:36 PM | Comments (0)
December 26, 2005
Holiday Shopping Lacks Cheer
While not devastating, the Christmas shopping season proved disappointing for many luxury retailers. Sales were flat and early and deep discounts took a big bite out of margins.
While some merchants are still trying to make up for it with big post-Christmas sales and new merchandise, another important strategy is to start early planning for next season.
Set out your goals now and keep a careful eye on cash flow. The market may not make any big gains in the next few months, but your margins can still be improved.
Posted by Blacks at 05:02 PM | Comments (0)
December 23, 2005
Apax Picks Up Hilfiger For $1.6B
Private equity firm Apax Partners has swiped up Tommy Hilfiger Corp. for $1.6 billion in cash. Hilfiger, which includes the Tommy Hilfiger and Karl Lagerfeld brands, rounds out Apax’s diverse investments in assets such as Tommy Bahama, Phillips-Van Heusen and others.
With the Hilfiger buy Apax hopes to tap further into the luxury market. It plans to continue to grow Hilfiger worldwide and has retained the company’s founder and namesake as principal designer and chairman of strategy and design.
The deal is expected to close by Spring 2006.
Posted by Blacks at 12:23 PM | Comments (0)
Transit Strike Leaves Costly Lesson
While the New York transit strike is officially over, the debate over how much it cost the city continues. Mayor Michael Bloomberg estimated that the strike cost $400 million for the first day and $300 million for each following day, although some economists have said those figures are too high.
What isn’t being disputed is that the strike took a serious swipe at New York retailers during a time of year that can account for 20% of their annual sales.
If nothing else, the situation is a good lesson to retailers that they need to have a contingency plan in place if their physical locations are rendered inaccessible due to lack of transit, natural disasters, or other crisis situations.
Posted by Blacks at 12:19 PM | Comments (0)
December 20, 2005
NY Transit Strike Freezes Retailers
With just five shopping days left until Christmas New York retailers are left wondering how they will be affected by the massive transit strike affecting the city.
The strike, which began early Tuesday, is not only making it difficult for retail workers to get to and from stores, but could force shoppers to stay at home as well.
The situation could have a negative impact on brick and mortar retailers hoping to ring in last minute sales although it could give a boost to online retailers.
Posted by Blacks at 11:04 AM | Comments (0)
December 16, 2005
Versace Narrows Losses
Accessory sales and a softer image have helped Versace narrow its losses in 2005, the Italian fashion house said this week.
Versace expects to post a loss of €15 million for the year, compared to €95 million last year.
The brand traditionally known for its brash image and bright colors has benefited from a softening of its look into sexy everyday wear and strong sales of accessories such as the Madonna handbag. The €1,000 bag, designed by the pop diva herself, has been a sellout hit.
Looking ahead, Versace said it expects to continue to lessen its losses thanks to new management and its fresh product mix.
Posted by Blacks at 12:46 PM | Comments (0)
December 15, 2005
P&G Likes The Smell Of D&G
Proctor & Gamble seems to like the scent of Dolce & Gabbana’s business. The beauty product giant has signed a licensing agreement for D&G’s existing fragrance portfolio and plans to design and develop a new product line with the Italian luxury brand.
The new line is slated to launch globally in July 2006.
D&G is one of a handful of luxury apparel designers seeing success in the beauty products market. Even Tom Ford has gotten into the game with his own line, making it the ‘in’ expansion market.
Posted by Blacks at 12:37 PM | Comments (0)
December 14, 2005
GUS, Burberry Part Ways
Shares of Burberry dipped following its spinoff Tuesday from retail and business services group GUS Plc.
GUS decided to cut the luxury brand loose earlier this year in an effort to clean up its balance sheet.
Burberry posted strong gains in 2004, including a 16% profit increase, but started to see its profits slide in 2005.
Posted by Blacks at 06:28 PM | Comments (0)
December 13, 2005
Ungaro Has Designs On Dundas
Emanuel Ungaro is reportedly looking to current Robert Cavalli designer Peter Dundas to lead the luxury brand’s design team.
Ungaro is looking for a replacement for Vincent Darre, and for someone who can return the brand to its couture roots. Dundas has previously worked for Christian Lacroix and Jean Paul Gaultier and is believed to be a strong candidate for the job.
The French design house is still going through a transition after being given up by its founder last year and sold to Silicon Valley tycoon Asim Abdullah.
Posted by Blacks at 01:14 PM | Comments (0)
December 12, 2005
Louis Vuitton Hits Hong Kong
Louis Vuitton has raised the curtain on a new flagship store in Hong Kong, aimed at drawing Chinese customers.
China represents the third-largest customer base for the luxury fashion and leather goods retailer. The LVMH Group has taken note of this, and recently created a Chinese version of its website to cater to potential clients in the region.
Louis Vuitton isn’t the only luxury brand focusing on China. China is expected to be the top consumer of luxury goods by 2015, according to a recent Goldman Sachs report, and few can ignore such a seemingly insatiable market.
Posted by Blacks at 10:20 AM | Comments (0)
December 11, 2005
Armani Cosmetics Get Online Makeover
Giorgio Armani is bringing his perfume and cosmetics ranges online in the hopes of exposing the products to a wider audience. The designer is creating a special website for the lines which will offer visitors interactive features, such allowing them to judge colors by applying makeup to an on-screen model.
As online shopping continues to grow, high-end brands like Armani are forced to sacrifice some exclusivity for higher sales. Armani at least is trying to set itself apart from the crowd with an innovative website that tries to recreate a boutique feel.
Posted by Blacks at 03:18 PM | Comments (0)
December 09, 2005
Bloomingdale's Loses Fashion Director
Bloomingdale’s fashion director Kalman Ruttenstein passed away on Thursday. Ruttenstein was seminal is defining the high-end store’s fashion direction and strategy. His absence is expected to have a noticeable impact on Bloomingdale’s fashion presentations.
Ruttenstein was famous for spotting emerging trends and marketing them in a way that captured shoppers’ imaginations, such as linking them with movies or Broadway musicals.
A successor has yet to be named.
Posted by Blacks at 12:11 PM | Comments (0)
December 08, 2005
Better Women's Market Heats Up
High-end womenswear merchants beware – a handful of department stores are building out their better women’s areas.
Fueled by an improved selection of sportswear in particular, department stores are sharpening their competitive edge.
For middle to better retailers, this development means they will have to clearly define their niche and make sure they are offering products that are unique.
Posted by Blacks at 02:29 PM | Comments (0)
December 07, 2005
Versace Plans U.S. Growth
Bright colors and daring designs will be the look du jour if Versace has its way. The Italian brand has U.S. growth on its mind and has plans to reinvigorate its business here with fresh investment and ad campaigns.
It recently chose actress Demi Moore as the new face of Versace and she is already appearing in various fashion magazines.
The company says its worldwide sales are still being affected by the economic slowdown following Sept. 11, and it is undergoing a reconstruction to stimulate growth.
Posted by Blacks at 12:16 PM | Comments (0)
December 06, 2005
U.S. Productivity Revs Up in Q3
U.S. productivity posted its fastest rise in two years last quarter, according to newly released Labor Department figures.
Business productivity rose to 4.7% during the third quarter, up from the previous estimate of 4.1%.
Economists say the unexpected rise could signal that the U.S. economy is stronger than previously thought. Recent economic indicators, including housing starts and unemployment figures, have led some to believe that the current cycle of economic expansion is coming to a close.
Posted by Blacks at 12:29 PM | Comments (0)
December 05, 2005
Armani Keeps In Control
Fashion stalwart Giorgio Armani appears nowhere near slowing down or withdrawing his hand from the business. The 71-year old recently shrugged off questions about whether he is seeking a financial partner, saying he is still very personally involved with the business.
Giorgio is the sole owner of the Armani brand, which posted retail sales of over €4 billion last year.
Armani is continuing its expansion into new markets, and just announced that it will be debuting its Armani Exchange collection in Dubai next year in an effort to tap into the young and rapidly growing market.
Posted by Blacks at 01:41 PM | Comments (0)
December 03, 2005
Talbots' Sales Nudge Up In Nov.
Classic clothing purveyor Talbots reported a 3% increase in November sales compared to the same period last year.
Sales increased to $131.3 million thanks to strong Internet sales and successful marketing initiatives, the Massachusetts-based retailer said.
Talbots’ success last month offers a good model for other high-end merchants seeking to cash in on the holiday season. Internet shopping has become a crucial aspect of the season, with online discounts encouraging consumers to click and buy.
Posted by Blacks at 10:58 AM | Comments (0)
December 02, 2005
China Exports Pushed Up By Pullovers
Chinese textile exports are expected to grow by over 19% this year, despite controls placed on shipments to the U.S. and Europe.
This year’s exports, valued at around $116 billion, got a boost from increased investment and new technologies, according to the China National Textile and Apparel Council.
Among the big sellers were pullover and trouser exports to Europe, which increased by over 400 percent compared to last year.
Posted by Blacks at 01:01 PM | Comments (0)
December 01, 2005
Profits At Tiffany's
Higher gross margins helped raise Tiffany & Co.’s third-quarter net profits by 37%, the jewelry retailer announced this week.
Third-quarter earnings came in at $23.8 million, compared to $17.4 million a year earlier. Worldwide comparable store sales also served to boost the retailer’s performance, it said.
The iconic jewelry dealer has also seen significant success in recent years by offering comparatively lower-priced trinkets to the mass market. The Elsa Peretti line has been a particular favorite and Tiffany’s silver heart tag bracelet seems to be hanging on every wrist from Boston to Bangkok.
Posted by Blacks at 10:35 AM | Comments (0)