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January 31, 2006
Giannini To Be Gucci's Sole Designer
Gucci menswear design director John Ray is resigning from his post, according to reports out Tuesday.
Ray’s exit would leave Frida Giannini as the brand’s sole designer, in charge of women’s ready-to-wear, men’s and accessories.
The move would represent the final break in the design triumvirate left in charge after the exit of Tom Ford in 2004.
Giannini was originally put in charge of accessories while Alessandra Facchinetti looked after women’s RTW. When Facchinetti left after receiving mixed reviews, Giannini took on the women’s collection as well.
Now positioned as Gucci’s sole designer, Giannini is expected to bring coherence to upcoming collections, something that the brand was criticized for lacking under three very different designers.
Posted by Blacks at 08:35 AM | Comments (0)
January 30, 2006
U.S. Income, Consumption Grows
Both personal income and spending climbed in December, according to new U.S. Commerce Department figures.
Americans’ personal income increased by 0.4% last month, at the same rate its November growth. Personal consumption, meanwhile, rose by 0.9%, meaning that consumers are saving less.
Some economists predict that the spending surge will help boost the economy, and it's bright news for retailers as well.
Posted by Blacks at 08:24 AM | Comments (0)
January 27, 2006
PPR Grows On Lust For Luxury
French conglomerate PPR reported sales growth of nearly 4% for the fourth-quarter, thanks to a boost by its luxury brands.
The owner of such coveted labels as Gucci and Bottega Veneta reported sales of almost $6.5 billion for the quarter, although retail sales in general were down.
Posted by Blacks at 08:36 AM | Comments (0)
U.S. Economy Slows In Q4
The U.S. economy posted its slowest growth rate in 3 years for the fourth quarter of 2005 due to sluggish consumer and government spending.
The economy grew by 1.1% last quarter, bringing total 2005 growth to 3.5%. Economists had predicted a 2.8% gain for the fourth quarter, but growth was curbed by a 17.5% drop in consumer spending on durable goods.
Retailers also felt the pinch as holiday shopping fell below expectations.
Posted by Blacks at 08:20 AM | Comments (0)
January 26, 2006
Federated Sees Modest 2006 Comps Gain
Federated Department Stores predicted same store sales would be up by 2% to 3% this year, bringing in over $27 billion.
The conglomerate is still digesting its merger last summer with the May Department Store Company, which added 330 Macy’s stores to its already significant holdings.
Federated said it expects its profitability to improve markedly in 2007 and beyond.
Posted by Blacks at 08:32 AM | Comments (0)
January 25, 2006
Ferragamo Sales, Reputation Climb
Italian luxury group Salvatore Ferragamo reported a 12% sales surge for 2005 this week. The group cited strong demand in Asia and the U.S. and predicted continued strong growth in 2006.
Perhaps not surprisingly, the solid results were released the same week that a poll of wealthy consumers voted Ferragamo the luxury brand that delivers the best customer experience.
The poll rated 16 luxury brands on elements such as price-worthiness, shopping experience and referral.
Coach came in as the strongest mass-market luxury brand, while Louis Vuitton was favored by women and Hermes got the top notch from wealthy consumers over 50.
Posted by Blacks at 08:31 AM | Comments (0)
January 24, 2006
Coach: Sales Are In The Bag
Coach’s 2005 fourth-quarter earnings grew over 37% to $174 million, compared to $126 million a year earlier, the company said Tuesday.
Holiday sales of handbags and leather accessories helped drive the better-than-expected results.
The New York company lifted its sales expectations for 2006 based on the figures, predicting sales of over $2 billion for the year.
Posted by Blacks at 07:56 AM | Comments (0)
January 23, 2006
Polo Zips Back Into Its Denim Business
Polo Ralph Lauren is buying back its U.S. jeans business from Jones Apparel Group through a settlement of $355 million.
The two companies had been disputing over licensing of the denim business and had entered litigation in 2003. Jones said that the license put restrictions on what it could sell.
Through the settlement, Polo hopes to reclaim control of its global jeans market. It already has healthy demand in Europe and Asia and said it hopes to grow the business even further in the U.S.
Posted by Blacks at 08:20 AM | Comments (0)
January 20, 2006
Leather Leads LVMH To Strong Q4
Strong sales of fashion and leather goods helped boost LVMH’s fourth-quarter revenue, the luxury group said Friday.
Revenue grew by 13% to €4.3 billion in the last quarter of 2005, compared to the €3.8 billion it posted a year earlier.
The LVMH group, which includes the Louis Vuitton and Hennessy cognac brands, is benefiting from a heightened demand for luxury goods.
Fashion rival The Gucci Group also posted solid gains last year thanks to its high-end labels.
Posted by Blacks at 02:21 PM | Comments (0)
January 19, 2006
Saks In Shanghai Surprise
Saks Fifth Avenue is reportedly forging a deal to license a store in Shanghai. The move would represent yet another effort by a high-end retailer to capture part of Asia’s growing market for luxury goods.
In addition to China, retailers are looking to locations like Singapore and Hong Kong. Louis Vuitton recently opened a flagship store in Hong Kong, with the hope of luring Chinese customers as well.
Posted by Blacks at 09:40 AM | Comments (0)
January 18, 2006
Rich Luxury, From Gucci To Armani
The Gucci man has undergone a transformation under creative director John Ray, showing a darker, more romantic side at the Milan autumn/winter ’06-’07 menswear show.
The new Gucci man wears a heavy wool frock coat countered with a white, embroidered shirt and pinstriped pants.
This look was quite different from Dsquared’s fun-poking at British royalty, done with washed jeans, riding coats an biker boots.
Armani, on the other hand, put a detailed spin on luxury, showing heavy knits with crushed velvet coats and tailored suits, creating an intoxicating mix of textures and hues.
These were three very different collections with one common denominator – indulgent luxury.
Posted by Blacks at 11:02 AM | Comments (0)
January 17, 2006
Fall Menswear Collections Delight Milan
The fall/winter menswear shows hit Milan this week with a resounding ‘oomph’ as designers such as Versace, Dolce & Gabbana and Burberry Prorsum delighted crowds with their high-octane style.
D&G managed to nail down modern elegance with fine knits, pleated trousers and rich velvet neck scarves.
Versace, meanwhile, went straight for sexy with masculine tailored jackets, leather trim, and thigh-grabbing trousers.
Burberry’s presentation of pinstriped suits, glossy oversized leather bags and boysenberry shirts were an English dandy’s dream.
For colors think grays, blues, deep emeralds and berries. The hot ticket item: a waistcoat.
Posted by Blacks at 10:32 AM | Comments (0)
January 16, 2006
Retail Sales To Slow
The National Retail Federation expects retail sales to grow by 4.7% this year, a drop from the 6.1% gain reported last year.
Consumers will be affected by slower home sales and labor concerns, causing them to spend more conservatively.
First-quarter sales are expected to grow by 5%, a dip from the 6.5% growth rate recorded in the fourth quarter of 2005.
Posted by Blacks at 03:28 PM | Comments (0)
Chinese Report Fall In Textile Orders
Chinese textile manufacturers are reporting a sharp decline in fall orders following the introduction of new quotas for the export of some textile and garment products to the U.S. and European Union.
The decline in orders has led to numerous layoffs, especially in the Guangdong region, where a number of textile manufacturers are located.
The sourcing shift caused by the export restrictions could also lead to some pricing issues for clothing retailers who find that garments sourced elsewhere are more expensive.
Posted by Blacks at 09:44 AM | Comments (0)
January 13, 2006
Federated To Sell Lord & Taylor
Federated Department Stores is divesting in Lord & Taylor to concentrate on its other upscale chain stores, Macy’s and Bloomingdale’s.
The parent company plans to sell Lord & Taylor by the end of the year.
Federated decided it was easier to unload the chain than to reverse its sales slump. It purchased Lord & Taylor just last year as part of an $11 billion acquisition of May Department Stores.
Posted by Blacks at 10:17 AM | Comments (0)
January 12, 2006
Burberry Sales Slide in Q3
Underlying wholesale sales at Burberry dipped 21% in the third quarter of 2005, leading to curbed expectations for the remainder of the year.
Despite this, underlying retail revenue notched up 11% during the same quarter, the British fashion house said.
Underlying sales refers to numbers that discount Burberry’s Taiwanese and Spanish business ventures, and strip out exchange-rate fluctuations.
Posted by Blacks at 10:26 AM | Comments (0)
January 11, 2006
Levi's Offers iPod-Tailored Jeans
It was bound to happen. Levi Strauss announced this week that it has designed jeans tailored for iPod music players. The jeans, called RedWire DLX, feature a joystick in the front right-hand watch pocket allowing the user to control the device. They also have a built in docking cradle and retractable earphones.
Levi’s is not the first brand to get in tune with the iPod craze. Casual jackets and even snowboarding wear has been kitted out with iPod-friendly features.
The iPod design will be available for both men and women this Fall. Pricing is not yet available.
Posted by Blacks at 09:25 AM | Comments (0)
January 06, 2006
Bergdorf Select New Fashion Head
Linda Fargo has been tapped as the new women’s fashion director at Bergdorf Goodman. She succeeds Robert Burke, who is leaving the company later this month to start up his own consulting firm.
Fargo has been lauded in her role as a visual merchandiser at Bergdorf, but she will have to fill big shoes in her new position. Burke is credited with developing an eclectic mix of brands that helped give the iconic store its distinctive stamp.
Posted by Blacks at 07:52 PM | Comments (0)
Update - Philo Confirms Resignation
Phoebe Philo confirmed her resignation as creative director at French fashion house Chloe, saying she wanted to spend more time with her new baby.
Chloe's existing design team is expected to put together the brand's upcoming Autumn/Winter show.
Although rumors are circulating that Roland Mouret could be tapped to take her place, they are so far unconfirmed. Mouret left his own company two months ago.
Posted by Blacks at 11:10 AM | Comments (0)
January 05, 2006
Chloe Designer To Step Down
Chloe designer Phoebe Philo is due to announce that she is quitting the company for personal reasons, according to insider reports.
Philo made her mark with the creation of must-have dresses and bags that became Chloe signature pieces. She took the post of creative director at the French design house in 2001 at the age of 27, replacing former Chloe designer and gal pal Stella McCartney.
Although it is still too early to tell who will replace her as design guru at the chic brand, chances are her unique stylings will be missed.
Posted by Blacks at 11:07 AM | Comments (0)
January 04, 2006
Luxury Labels Battle Chinese Piracy
Luxury brands Burberry, Louis Vuitton and Gucci have won a suit against a Chinese mall owner who failed to stop vendors from selling pirated goods.
The victory is being considered a small step toward curbing the billions of dollars in piracy costs facing luxury brands each year.
Although the big name brands are eager to tap into China’s huge consumer market, they also face the challenge of competing against knockoffs of their very own goods. Verdicts like the one reached against the mall owner serve to set a precedent, allowing them to go after other local pirates.
Posted by Blacks at 11:48 AM | Comments (0)
January 03, 2006
Tokyo Story
From runway styles to brand buyouts, the fashion industry is increasingly looking to Japan to discover what’s hip and cool.
The Japanese influence is not only making designers like Yohji Yamamoto even more hot, it’s also inspiring designers like Italy’s Emanuel Ungaro and France’s Christian Lacroix to include details such as cherry blossoms and kimono sashes in their lines.
And the admiration appears to go both ways, as Japanese businesses have kicked off a flurry of M&As with foreign brands.
In May, for example, apparel maker Onward Kashiyama Co. scooped up British fashion group Joseph for 17 billion yen. The Japanese company then went on to acquire management rights in Italian shoemaker Iris, which sells the Marc Jacobs and Chloe brands.
Posted by Blacks at 09:25 AM | Comments (0)
January 02, 2006
Chanel Takes Off In Asia
Chanel appears ready to literally launch its 2006 Spring/Summer line by introducing it at a China Airlines aircraft maintenance site.
The upcoming show, targeting the Chinese, Hong Kong and Taiwanese markets, will reportedly be second in scale only to its Paris show.
The Asian market is big business for luxury brands as consumers in the region are showing an increasing demand for anything with a designer label.
Chanel’s regional show will take place in Taiwan January 13th.
Posted by Blacks at 09:12 AM | Comments (0)