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May 31, 2006
Tiffany's Q1 Earnings Shine
First quarter earnings at Tiffany & Co. grew 7.7 percent to $43 million, buoyed by strong international sales.
While U.S. sales remained disappointing, foreign demand in places like Japan pushed overall sales up by 6 percent to $539 million.
Rising costs for diamonds and precious metals are putting the squeeze on margins, but the jewelry retailer said that it still expects a 12 percent increase in earnings for the full year.
Posted by Blacks at 08:53 AM | Comments (0)
May 30, 2006
Jil Sander Plans For Profit
Jil Sander reported higher than expected losses for its latest fiscal year, but holds high hopes for a recovery this year.
The German label, which was recently sold to London-based private equity firm Change Capital, reported losses of £25 million for the fiscal year ended Jan. 31, 2006. Sales slipped 5.2 percent to £86 million, from £93 million the previous year.
The company pinned the results on one-time restructuring costs, and predicted a positive operating profit for this year.
Posted by Blacks at 09:24 AM | Comments (0)
May 29, 2006
Versace Opens In India
Versace is set to open its first store in India this week, offering womenswear, menswear, accessories and home goods to the country’s growing luxury market.
The 160-square meter boutique is located in Mumbai’s J.W. Marriot Mumbai Hotel in Juhu Beach. The Italian design house isn’t alone in targeting the India market; luxury competitors such as Chanel, Louis Vuitton and Dior have also set up shop.
Versace’s Indian foray comes as the brand is undergoing a transition from its trademark flashy style to more elegant fittings.
Posted by Blacks at 09:47 AM | Comments (0)
May 26, 2006
Armani To Show In London, Not Milan
Adding another line to London’s lengthy fashion credentials, Giorgio Armani has decided to show his spring 2007 Emporio Armani collection in London this September instead of Milan.
The Italian designer said the British capital has become one the most cosmopolitan and influential fashion cities in the world.
Armani will also launch his new RED capsule collection in London. The new collection is part of a charity initiative conceived by rocker Bono and Bobby Shriver.
Posted by Blacks at 09:53 AM | Comments (0)
May 25, 2006
Burberry's Sales Up, But Profit Slides
British luxury brand Burberry reported a 4 percent rise in sales to £742.9 million for its latest financial year, thanks to increased retail activity.
The company has reduced its sales through department stores and concentrated on building out its own shops. The cost of the new stores, and a hefty investment into a new technology system, weighed down Burberry’s profits, however.
Profits for the year ended March 31 dropped 4 percent compared to the previous year.
The London-based company is spending tens of millions of pounds on a new infrastructure system that will take a bite out of profits for the next few years, but will eventually streamline costs, it said.
Posted by Blacks at 11:12 AM | Comments (0)
Yohji Packs Deal With Luggage Maker
Yohji Yamamoto is teaming up with Italian luggage maker Mandarina Duck to design a line of co-branded bags, cases and accessories. The collection, dubbed Y’s Mandarina, will appear for the spring/summer 2007 season.
The Japanese designer has a track record of successful collaborations, such as his Y-3 sportswear and shoe designs for Adidas.
Posted by Blacks at 10:31 AM | Comments (0)
May 24, 2006
Lauren Fades Out Polo Jeans
Polo Ralph Lauren is discontinuing Polo Jeans in the U.S., opting instead to expand the premium denim available in its Polo Ralph Lauren and Lauren lines.
After 2007, U.S. Polo Jeans fans will have to get their fix abroad, where the line will still be available.
Polo Ralph Lauren recently bought back the license for Polo Jeans from Jones Apparel Group for $355 million. The purchase was aimed at allowing the company to build out its denim offerings without contractual restrictions.
Posted by Blacks at 08:56 AM | Comments (0)
May 23, 2006
Hilfiger Gets Business Makeover
Tommy Hilfiger announced a major restructuring on Monday, including plans to trim underperforming businesses and move its corporate headquarters to Amsterdam.
Tommy said it plans to put an end its children’s line and close its H Hilfiger retail business. As part of its reorganization, the company also laid off 230 employees, saying that it is consolidating management positions and getting rid of some back office functions.
New Tommy CEO Fred Gehring said the company is concentrating on improving its brand in the U.S. and building on its premium image worldwide.
Gehring was appointed chief executive of the company two weeks ago, following Tommy’s sale earlier this year to private equity firm Apax Partners.
Posted by Blacks at 09:18 AM | Comments (0)
May 22, 2006
Varvatos Continues Converse Play
U.S. designer John Varvatos is expanding his collaboration with Converse and will launch a line of trainers to be sold in Barneys, Saks and Bloomindale’s this fall.
Building on the success of the Limited Edition series Varvatos created for the iconic sneaker brand, the new line will include military, rock n’ roll and street influences.
Posted by Blacks at 08:57 AM | Comments (0)
Nordstrom's Plan To Expand
Nordstrom has been lifting the lid on its strategy going forward, and the keywords appear to be expansion and e-commerce.
The department store chain, which is once again being controlled by the Nordstrom family, has put its focus on adding 15 new physical stores and increasing its Internet business to $1 billion by 2010.
The retailer also hopes to build out its women’s apparel with designer brands and expand both men’s and women’s premium denim.
Posted by Blacks at 08:28 AM | Comments (0)
May 20, 2006
Jones Circles Toward Winning Bidder
The winning bidder for Jones Apparel Group could be announced within 5 to 6 weeks, WWD reported Friday.
The top contenders include Bain Capital, Texas Pacific Group and The Blackstone Group, WWD said, citing sources close to the deal.
Jones, which owns the Barneys department stores and brands such as Nine West and Anne Klein, put itself up on the block in March. The group decided to sell itself as a whole, to the surprise of many.
Posted by Blacks at 01:30 PM | Comments (0)
May 19, 2006
Nordstrom Reins In Expenses, Reaps Profit
Nordstrom’s first-quarter profits soared nearly 26 percent on a revenue gain of 8 percent.
The high-end chain attributed the gains to belt-tightening and improved inventory management. Sales of men’s apparel also helped boost its performance.
Income for the quarter ended April 29 came in at $131 million, or 48 cents a share.
Meanwhile, same store sales increased by 5.4 percent over the period.
Posted by Blacks at 08:53 AM | Comments (0)
May 18, 2006
Consumer Prices Continue To Climb
U.S. consumer prices rose 0.6% in April, compared to a 0.4% increase in March, the Labor Department reported this week.
The April increase was driven by a 3.9% jump in energy prices, sparking fears that inflation is on the rise and the Fed may increase interest rates once again.
Consumer prices were also given a boost by the increasing cost of services, which pushed up core factors such as rent.
Posted by Blacks at 08:42 AM | Comments (0)
May 17, 2006
Saks Plans Turnaround After Q1 Sales Slide
Saks’s first quarter sales dipped almost 33 percent to $1.04 billion, in part due to the department store group’s sale of its Carson Pirie Scott operation, it said this week.
Total same store sales were also down by 1.9 percent during the quarter, Saks said.
Inside the group, the Saks Fifth Avenue chain continued to struggle in the first quarter, according to Saks CEO Stephen Sadove.
Sadove told press that the group tried to make marketing and sales changes too quickly and managed to isolate SFA’s core customer base as it pursued younger clientele.
The group is currently working to address the issues at SFA by relaunching its private-label brand and determining key customer profiles by store.
Posted by Blacks at 08:23 AM | Comments (0)
May 16, 2006
Design Duo Appointed To Helmut Lang
Theory has named Habitual founders Nicole and Michael Colovos as the new joint creative directors of Helmut Lang.
The move, announced Monday, is being seen as evidence that Theory wants to transform Helmut Lang into a more contemporary brand.
Although the couple found success with their chic Habitual jeans line, many are wondering if they will do as well under the classic mantle of Lang, which has long been known for its innovative, high-end collections.
Posted by Blacks at 09:18 AM | Comments (0)
May 15, 2006
Bergdorf Stages Record Trunk Show
Bergdorf Goodman rang in $6.1 million during a three-day Chanel trunk show, where fashionistas scooped up pricey handbags, shoes and coats.
The Fifth Avenue store managed to outpace the $5.6 million it brought in during last year’s show, which was labeled as a retail record at the time.
With handbags selling for $6,000 and coats going for as much as $18,000, the Chanel show proved that luxury is still in high demand.
Bergdorf’s success also underscores the popularity of trunk shows in general, where consumers feel that they are being offered something special.
Posted by Blacks at 07:30 AM | Comments (0)
May 13, 2006
Consumer Optimism Slips
Consumer jitters over rising oil prices, higher interest rates and a touchy political climate could take its toll on retail sales in the second quarter, economists warned this week.
U.S. consumer optimism fell in May to its lowest level since Hurricane Katrina, according to a survey by the University of Michigan.
If the sentiment remains, consumers could decide to curb their spending in favor of filling up their tanks and paying their bills.
Posted by Blacks at 10:31 AM | Comments (0)
May 12, 2006
Hermès Gets Boost From Bags
First-quarter sales at Hermès rose 11.3 percent to $435 million, boosted by sales of leather handbags and wholesale orders for Jean Paul Gaultier’s ready-to-wear collection.
The results landed a bit below expectations, however, due to production problems in watches and ready-to-wear.
While sales of the French brand’s signature leather handbags were strong, overall sales in the handbag category were marred by the discontinuation of a canvas line, the company said. Hermès decided to cutout the canvas collection for fears that it would make its brand look like it was moving down market.
Posted by Blacks at 09:20 AM | Comments (0)
May 11, 2006
Viktor & Rolf To Design For H&M
Paris-based design duo Viktor & Rolf are the latest hot names to create a capsule collection for H&M.
The pair will design a line for men and women that will appear in H&M stores in November.
The Swedish retailer has collaborated with two other high-fashion designers with door-busting success. Both Karl Lagerfeld and Stella McCartney have taken their high-brow names to the high street for H&M.
The Viktor & Rolf collaboration will no doubt create huge anticipation among fashion junkies who will have the opportunity to get their hands on the designer brand at mass-market prices.
Posted by Blacks at 10:14 AM | Comments (0)
May 10, 2006
Federated's Q1 Profit Dips
Federated Department Stores reported a $52 million loss for the first quarter, due mainly to costs related to its acquisition last year of May Department Stores.
Results for the quarter ended April 29 show a significant change from the $123 million profit the company reported a year earlier.
Federated said it’s still absorbing its $11 billion buy of May, which is the parent company of the Macy’s and Bloomingdale chains.
Still, the retail giant reaped revenue of $5.9 billion for the quarter, up 63 percent from a year ago. Federated saw strength in the fact that same store sales at Macy’s and Bloomingdale’s were flat during the quarter, rather than down as many expected.
Posted by Blacks at 08:51 AM | Comments (0)
May 09, 2006
Movado Gets Juicy
Movado Group is designing and producing a collection of watches under the Juicy Couture name, due out this fall.
The watchmaker has entered a worldwide licensing deal with Juicy, extending its already strong presence in the fashion watch category. Movado designs and distributes Ebel, Tommy Hilfiger and Hugo Boss watches as well as its own famous line.
The new collection, which will also be sold under Juicy’s new Couture Couture brand, will offer a variety of colors, as well as jewels and exotic skins.
Posted by Blacks at 08:53 AM | Comments (0)
May 08, 2006
Price Tag Put On L&T
Federated Department Stores has named its price for Lord & Taylor. The chain has been valued at around $1.2 billion, according to a report out Monday in WWD.
Federated is expected to send out a prospectus on L&T to potential bidders this week. Suitors reportedly include a number of private equity firms as well as some retail rivals.
If the $1.2 billion price tag holds, the buyer could be getting a deal. L&T has annual sales of about $1.6 billion, as well as some coveted real estate in Manhattan.
Posted by Blacks at 07:13 AM | Comments (0)
May 06, 2006
Retail Jobs Slip In April
Employment in department and apparel stores dropped last month, possibly due to industry consolidation and technology advances.
Department stores shed over 15,000 jobs, leaving an employment base of 1.6 million, while apparel and accessories shops trimmed 1,000 employees, leaving 1.4 million.
The figures were released Friday by the U.S. Labor Department, which also reported that fewer jobs were created last month than expected. U.S. employers added 138,000 non-farm jobs in April, down from the 200,000 created in March.
The average hourly wage and length of the work week jumped, however.
Posted by Blacks at 01:26 PM | Comments (0)
May 05, 2006
Swarovski Aims For Control, Up Market
Swarovski announced a plan this week to curtail the number of retail franchises selling its crystal jewelry and accessories in favor of setting up more of its own shops.
The crystal manufacturer wants to take greater control of its product presentations and move into higher price points.
Swarovski said it plans to expand its operations to 800 to 900 stores over the next few years while reducing its points of sale from the current 3,500 to 2,000.
The plans were announced at the same time the brand unveiled its new Poetic Night fall/winter fashion collection and Daniel Swarovski couture collection.
Posted by Blacks at 09:36 AM | Comments (0)
May 04, 2006
Spring Sales Soar
April sales figures are in, and as expected it was a banner month for many retailers.
Easter came late this year and as a result, holiday sales were pushed into April. Winter’s stormy skies finally gave way to some sunshine and consumers shrugged off high oil prices and headed to the mall.
Mid-market retailers such as Guess and Bebe reported significant gains – 22.6 percent and 14.6 percent, respectively. Talbots rang in a 10.8 percent increase in same store sales, while Ann Taylor Stores posted a 10.9 percent rise.
Posted by Blacks at 04:20 PM | Comments (0)
Report: Versace Readying For IPO
Versace posted better-than-expected results for 2005, leading to speculation that the Italian brand could soon be ready for an IPO.
The company trimmed its operating losses from $114 million to $7 million last year, opening the possibility that it could turn a profit by the end of this year. If it does, the Versace family could begin considering a public sale in 2007, company chief executive Giancarlo Di Risio recently told WWD.
Posted by Blacks at 08:44 AM | Comments (0)
May 03, 2006
Confidence In April Comps
April’s same-store sales are expected to rise between 6 percent and 6.5 percent, according to the International Council of Shopping Centers.
The rise would be the largest year-over-year gain since the 7 percent increase recorded for March 2004.
It appears that rising oil prices and inflationary worries are doing little to deter consumer spending, the ICSC noted.
Posted by Blacks at 08:16 AM | Comments (0)
May 02, 2006
China's Garment Exports Continue To Grow
China’s garment industry posted significant growth in the first quarter of this year despite recent quotas placed on the export of textiles to the U.S. and EU.
Garment exports rose by more than 22 percent in the quarter to $28 billion, a 3 percent increase over the same period last year.
Meanwhile, textile exports to the U.S. and EU grew by 9.7 percent even though controls were placed on the export of 34 types of apparel and textiles to these countries late last year.
Posted by Blacks at 08:10 AM | Comments (0)
May 01, 2006
Consumer Income, Consumption Climb
Both personal income and consumption surged in March, despite high oil prices and inflationary worries.
Personal income rose by 0.8 percent, after a 0.2 percent increase in February, the U.S. Commerce Department said Monday. The climb accompanied a 0.6 percent increase in personal consumption during the month.
While consumer outlook seemed to brighten in March, the Fed is still concerned about inflation since the price index for personal consumption expenditures rose 0.3 percent in March, excluding food and energy.
Posted by Blacks at 09:37 AM | Comments (0)
Rumors Swirl Around Cavalli Sale
Italian fashion house Roberto Cavalli is reportedly being courted by private equity funds, according to a report out Monday.
Private equity groups have taken a keen interest in the fashion business lately, and have set their sights on companies such as Jones Apparel Group and Tommy Hilfiger.
Cavalli has not confirmed whether or not an equity group might scoop it up, but valuations of the brand are estimated at over $1 billion.
Posted by Blacks at 07:47 AM | Comments (0)