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March 31, 2006
BaselWorld Opens With Cry Against Counterfeits
BaselWorld 2006, the premier event for the watch and jewelry industry, opened in Basel, Switzerland Thursday with an estimated 90,000 guests in attendance.
The show runs through April 6 and is set to feature over 2,100 exhibitors from 45 countries.
With the luxury market currently thriving, show organizers expect to see demand for designer watches in high-priced metals. But exhibitors also expect to see continued production of counterfeit watches, which are eating into their market at an estimated cost of $600 million a year.
Swiss industry leaders are pushing for a crackdown, saying that the situation could impact their whole economy if left unchecked.
Posted by Blacks at 09:07 AM | Comments (0)
March 30, 2006
Low-Priced Prada Could Hit H&M
First Lagerfeld, then Stella, now Prada? Rumor has it that Miuccia Prada could be the next luxury brand to design a line for mass-market retailer H&M.
Sweden’s H&M, which just reported a 16% profit increase for the first quarter of this year, has seen door-breaking success through collaborations with big-name designers.
While Prada and H&M have yet to confirm a deal, Prada has signaled that it is not opposed to the partnership. Considering the frenzy that occurred over Stella McCartney’s recent low-priced line, mass market Prada would be sure to cause a stir.
Posted by Blacks at 09:07 AM | Comments (0)
March 29, 2006
Tiffany & Co. Beats 4Q Expectations
Fourth-quarter sales at Tiffany & Co. grew 6 percent, beating analysts’ expectations.
However, the jewelry retailer reported a 35.3% drop in net earnings compared to the year ago quarter, which was bolstered by the $194 million sale of its stake in Aber Diamond Corp.
Profit for the quarter ended Jan. 31 came in at $140.3 million, or 97 cents per diluted share. Analysts were expecting earnings of 84 cents per share.
Posted by Blacks at 08:57 AM | Comments (0)
March 28, 2006
Consumer Confidence Hits 4-Year High
U.S. consumer confidence surged in March to reach a four-year high, The Conference Board said Tuesday.
Consumers perceived a strong economic start to 2006, after a lackluster finish to 2005.
The March index for consumer confidence came in at 107.2, compared to 102.7 for the previous month, beating analysts’ expectations.
Despite the confident start, economists predict that consumer sentiment will cool later in the year as the economy settles into a more steady growth rate.
Posted by Blacks at 08:56 AM | Comments (0)
March 27, 2006
Report: Ford Stepping Into Footwear
Apparently, it isn’t enough for Tom Ford to have his hand in a number of ventures, he has to put a foot in too – footwear that is.
The famed designer is reportedly working with ex-Gucci consultant Max Verre on his own footwear line. If true, the project will add to Ford’s growing list of ventures spanning perfume, eyewear and apparel.
Since departing from Gucci in 2004, Ford has become his own mega brand, and there appears to be no telling what he has up his sleeve next.
Posted by Blacks at 09:18 AM | Comments (0)
March 24, 2006
Hermès Profits On Japanese Recovery
Hermès reported a 15% gain in net profit for 2005, thanks to increased demand in Japan, which accounts for roughly 30% of the company’s sales.
The Paris-based firm reported profit of €247 million for the year, coming in slightly lower than analysts’ expectations.
While Hermès is making gains, it is not growing as fast as rival Louis Vuitton, which reported a 21% rise in earnings for 2005.
Hermès will have to be diligent about increasing sales in product categories outside of its already popular handbag business if it wants to keep up with competitors who are planning their own Asian invasion.
Posted by Blacks at 09:01 AM | Comments (0)
March 23, 2006
Report: Two Equity Firms Vying For Jones Apparel
Two private equity firms are vying for Jones Apparel Group, according to reports out Thursday.
Both Texas Pacific Group and Cerberus Capital Management are reportedly in discussions to takeover Jones, which owns a number of high-profile properties, including Barneys department stores and the Nine West and Anne Klein brands.
“I’m not surprised that Texas Pacific is making a bid,” said Blacks Senior Consultant Steve Pruitt. “Texas already owns Neiman Marcus and Bergdorf Goodman so they want to put Barneys in their stable.”
Posted by Blacks at 09:49 AM | Comments (0)
Gucci Spreads Around The Globe
Gucci has set its sights on expansion with plans to open up new flagships in Hong Kong and Tokyo. The Hong Kong store is slated to open in October, with the Tokyo location soon to follow.
The Italian luxury brand has also identified Eastern Europe as a growing market and plans to open a store in the Ukrainian capital of Kiev in September.
Gucci, which is owned by French retail group PPR, has been posting strong sales in recent quarters, leading to further expansion of the brand.
Posted by Blacks at 09:33 AM | Comments (0)
March 22, 2006
Jones Apparel Considers Sale
Jones Apparel Group, owner of Barneys department stores and a number of other high-profile brands, is considering putting itself on the block.
The Bristol, Pennsylvania group has hired Goldman, Sachs & Co. to help it in the process.
Jones has a market capitalization of around $3.5 billion. Its portfolio includes the Nine West, Jones New York and Anne Klein brands.
The group said that although it has strong brands they are getting lost in the mix and could thrive under new management.
Posted by Blacks at 09:48 AM | Comments (0)
March 21, 2006
Calvin Klein Helps Dress Up PVH Earnings
Calvin Klein apparel and licensing operations made a strong showing for Phillips-Van Heusen Corp. in the fourth quarter of last year, helping it beat earnings expectations.
The Madison Avenue apparel group reported a 33% increase in earnings for the quarter, on revenue of $460.1 million.
The company, which owns a number of high-profile brands, including Michael Kors, BCBG and Kenneth Cole, identified its Calvin Klein business a key growth engine.
Posted by Blacks at 08:34 AM | Comments (0)
March 20, 2006
Adidas Extends McCartney Collaboration
Shoe giant Adidas has reportedly extended its contract with designer Stella McCartney until 2010.
The British designer has been working with Adidas over the last year, producing three lines of athletic wear. The latest collection, for Spring ’06, carries the theme of Tennis, Running, Gym and Swim.
The collaboration is apparently a hit, since the German company has decided to keep McCartney onboard for four more years.
Posted by Blacks at 08:42 AM | Comments (0)
March 19, 2006
Famed Designer Oleg Cassini Passes Away
Famed New York fashion designer Oleg Cassini died on Friday, leaving a legacy of nearly seven decades of inspired design.
Cassini, who was known for dressing Jacqueline Kennedy and numerous Hollywood stars, also sought to bring beautiful, affordable clothes to the average women through his ready-to-wear lines.
He was credited for bringing the A-line dress and pillbox hat en vogue – a la Jackie – as well as introducing the Nehru jacket to America.
He died at the age of 92 on Long Island, where he had a home.
Posted by Blacks at 09:57 AM | Comments (0)
March 17, 2006
Prada Makes Deal To Sell Helmut Lang
Prada has agreed to sell its Helmut Lang brand to Link Theory Holdings, the Italian luxury group confirmed Friday.
Link, a Japanese firm, has purchased the Helmut Lang trademark name for an undisclosed sum.
The deal comes just a few weeks after Prada agreed to sell its Jil Sander brand to private equity firm Capital Change Partners.
The fashion house has said previously that it wants to concentrate on building its Prada and Miu Miu lines.
Posted by Blacks at 07:48 AM | Comments (0)
March 16, 2006
Consumer Prices Stay Steady
Consumer prices inched up 0.1% in February after a 0.7% rise in January thanks to declining energy costs, the U.S. Labor Department reported Thursday.
While energy costs fell 1.2% last month, they are still 20% higher than a year ago.
Consumer prices in general remain checked, although retail prices for women’s apparel slipped 1.3% in February, coming in 2.5% lower than a year ago.
Prices for outerwear dropped 2.5% last month, due in large part to unseasonably warm weather in the northeast, while dress prices rose by 2.6%.
Posted by Blacks at 11:23 AM | Comments (0)
March 15, 2006
Nordstrom Plans To Upgrade Women's Dept.
Nordstrom plans to make marked improvements to its women’s shoes and apparel by late summer or early fall, according to a company executive.
The high-end department store has seen a weakness is its women’s business in recent years but hopes to rectify the situation by offering more designer apparel, Nordtsrom Chief Financial Officer Mike Koppel told investors at a recent conference.
The changes are aimed at attracting older, more sophisticated women who are willing to spend more on quality goods.
Posted by Blacks at 10:12 AM | Comments (0)
Belgium Restructurers Diamond Board
HRD, Antwerp’s coordinating body and official representative of the diamond sector, has approved a board restructuring that seeks to strike a better balance between small and large companies.
Under the reorganization, the group’s 12-member board will consist of an independent director, six members elected by diamond traders and six members elected by diamond bourses and manufacturers.
The delegates will be selected to represent small and large companies.
The professional organization was previously run by 20 appointed directors from four categories: industry, trade, bourses and banks and manufacturers.
The group has been under fire for not accurately representing the market and it hopes the changes will address these concerns.
Posted by Blacks at 08:29 AM | Comments (0)
March 14, 2006
Neiman Names New Fashion Head
Neiman Marcus has finally selected a new fashion director to replace veteran Joan Kaner, ending months of speculation over who would gain the coveted position. Ken Downing, Neiman’s current vice president of PR, will take the role of senior vice president and fashion director, the store announced this week.
He will report to Ann Stordahl, the executive vice president of women's apparel, while menswear will still be run Colby McWilliams.
Although Downing was considered a favorite for the post when Kaner left in October of last year, months of searching outside the company created some doubt.
Kaner had been with Neiman for over 16 years, leaving Downing with big shoes to fill.
Posted by Blacks at 08:35 AM | Comments (0)
March 13, 2006
Diamond Tycoon To Open Retail Shops
Diamond Glitterati Lev Leviev is opening a flagship boutique in London called Leviev. The Old Bond Street store will be the first in a string of retail diamond outlets the Leviev Group of Companies plans to open around the world.
The London store is scheduled to open this spring, with a New York location soon to follow.
Leviev controls the world’s largest private diamond mines and is the biggest private diamond manufacturer. The Leviev Group Chairman and Russian native said he intends to create the world’s leading luxury diamond brand.
Posted by Blacks at 05:11 PM | Comments (0)
Federated To Close Six Lord & Taylors
Federated Department Stores is shuttering five Lord & Taylor stores and turning a Philadelphia L&T into a Macy’s.
The five closures are scheduled to take place this summer in St. Louis, Missouri; Newark, Delaware; Dearborne, Michigan and Peabody, Massachusetts.
The restructuring comes on the heels of Federated’s merger with May Department Stores last year.
Posted by Blacks at 04:38 PM | Comments (1)
Intermix Mixes It Up Online
Although arriving somewhat late to the online party, luxury retailers are increasingly setting up shop online. The latest arrival is high-end boutique Intermix, which recently established an online store to complement its 12 brick-and-mortar locations.
Selling designer womenswear and accessories, IntermixOnline joins other luxury sites such as Net-A-Porter, which offers a full menu of designer apparel.
Intermix has been credited with outfitting the Soho fashionista and with its new Internet venture that reputation could spread.
Posted by Blacks at 09:20 AM | Comments (0)
March 10, 2006
U.S. Textile, Apparel Imports Climb
Imports of apparel and textiles surged 7.6% in January as the U.S. trade deficit continued to widen, the Commerce Department reported this week.
The trade deficit hit a record $68.5 billion for the month, growing 5.3% over the December figure.
China increased its textile and apparel shipments to the U.S. by 20% in January, despite recent restrictions on imports from the country.
Posted by Blacks at 09:15 AM | Comments (0)
March 09, 2006
PPR Profits On Gucci Group
French retail group PPR registered a nearly 10% rise in operating profit for 2005, thanks in part to the strength of its Gucci brand.
The group, which also owns Yves Saint Laurent, reported earnings before taxes of €1.08 billion. The results were slightly below analysts’ expectations but still represented a strong showing.
PPR said that its luxury division, centered on Gucci, also saw strong gains at the start of this year indicating a positive retail environment going forward.
Posted by Blacks at 08:47 AM | Comments (0)
March 08, 2006
Polo Scores Points At Wimbledon
Polo Ralph Lauren scored a marketing point this week by sealing a deal with the All England Club to design and outfit all on-court Wimbledon officials.
By becoming the official outfitter for the renowned tennis club, Polo hopes to catch the attention of millions of sporting fans.
The brand is releasing a Polo Ralph Lauren Wimbledon collection to be sold at select retail outlets, as well as online.
The partnership, which begins at this year’s Championship tournament, runs through 2010.
Posted by Blacks at 09:04 AM | Comments (0)
March 07, 2006
U.S. Productivity Slips In Q4
Business sector productivity fell by 0.5% in the fourth-quarter of last year, following a 4.2% rise the previous quarter.
Despite the year-end drop, the fourth-quarter figure beat analysts’ estimates of a 0.6% decline in productivity for the period.
While U.S. productivity is expected to rebound in the first quarter of this year, economists predict the U.S. will grow at a slower rate than it has historically as emerging markets catch up with the west.
Posted by Blacks at 01:32 PM | Comments (0)
March 06, 2006
Armani To Name New U.S. Head
Giorgio Armani is set to announce the appointment of a new U.S. CEO, WWD reported Monday.
The Italian fashion house has selected Bridget Ryan Berman to head up its U.S. operations, it said.
Berman, a former Polo Ralph Lauren executive, was named vice president of Apple Computer’s retail unit in 2004. While it remains to be seen how she would parlay her diverse background into pushing the Armani brand, her potential appointment comes at a time when Armani is riding strong, particularly in the luxury segment.
Posted by Blacks at 08:40 AM | Comments (0)
March 03, 2006
LVMH Posts Double-Digit Profit Jump
Luxury group LVMH reported a 21% increase in net profit for 2005, in part due to the success of its Louis Vuitton brand.
LVMH Moët Hennessy - Louis Vuitton, which owns 50 luxury brands, including Moet & Chandon champagne, TAG Heuer watches and Dior fragrances, brought in net profit of €1.44 billion on revenue of €14 billion last year.
The group said it continues to see strong momentum in the luxury sector, allowing it to post double-digit revenue growth into 2006.
Posted by Blacks at 08:47 AM | Comments (0)
March 02, 2006
Major Retailers Report Slow Feb. Sales
Retail sales dipped in February, after showing strong gains the previous month, according to major merchants.
Consumer spending was affected by a blizzard in the northeast and a lack of compelling spring apparel.
Middle-market retailers like AnnTaylor Stores, Limited Brands and Bebe reported moderate gains in February comp sales, as did major department stores. Nordstrom reported a 4.9% increase in same store sales for the month, while Neiman Marcus Group cited a 3% gain.
February is historically a weak month for retail sales, but analysts expect only modest gains in March since Easter is falling later this year.
Posted by Blacks at 07:45 AM | Comments (0)
March 01, 2006
Calvin Klein Readies Better Sportswear Line
Calvin Klein’s better womenswear will be returning to department stores this fall. The iconic American brand is teaming with apparel marketer Kellwood Co. to design and produce a better sportswear line.
Kellwood bought out G.A.V.’s interest in the better sportswear business in September of last year with the intention of growing the segment.
While many better vendors are going down market – through deals with retailers such as Target and H&M – Calvin Klein appears to be making the right choice in boosting its up-market positioning, where there is still substantial growth to be had.
Posted by Blacks at 10:55 AM | Comments (0)
