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June 30, 2006
U.S. Consumption Slows In May
U.S. personal consumption rose at the same rate as personal income in May, climbing 0.4%. This was lower than the 0.7% rise in spending recorded for April.
Disposable income made a 0.3% advance in May, but was flat after adjusting for inflation.
Meanwhile, the Fed increased the federal funds rate by a quarter point on Thursday to 5.25%, marking its 17th consecutive quarter point rise.
Posted by Blacks at 08:37 AM | Comments (0)
June 29, 2006
First Quarter GDP Higher Than Expected
The U.S. economy grew faster than originally expected during the first quarter of this year due to fewer imports, while inflation came in slightly lower.
Gross domestic product rose 5.6% from January to March, instead of the previously predicted 5.3%, the U.S. Commerce Department said.
The growth far outpaces the 1.7% increase in GDP registered for the fourth quarter of 2005.
Posted by Blacks at 10:44 AM | Comments (0)
Diamond Industry Shines Light On Ethics
Diamond industry insiders are gathered in Tel Aviv this week for The World Diamond Congress, where hot topics include synthetic diamonds and ethical responsibilities.
In a bid to promote consistent standards within the industry, the World Federation of Diamond Bourses introduced the WFDB Mark program.
The program issues a trademarked logo to approved members of WFDB’s affiliated diamond exchanges to show that they follow the group's better business principles. The mark can be shown to suppliers and clients as evidence of their responsibility.
Posted by Blacks at 09:00 AM | Comments (0)
June 28, 2006
Barney's Plans New San Francisco Store
Barney’s New York is bringing its special brand of luxury to San Francisco with the opening of a new 60,000 square foot store near Union Square.
The flagship, scheduled to open in fall 2007, is part of a larger expansion that will see new stores in Dallas and Las Vegas, and possible additions in San Diego, Miami and Chicago.
The new San Francisco store will occupy the space previously taken by FAO Schwarz at 48 Stockton St.
Barney’s will join a number of better department stores near Union Square, including Bloomingdale’s, Macy’s and Neiman Marcus.
Posted by Blacks at 11:21 AM | Comments (0)
June 27, 2006
St. John Appoints New Retail Head
St. John has selected Ralph Polese as the company’s new retail head, in charge of merchandising and retail across the organization.
Polese joined the Irvine, California, company in March as its Asia CEO. In his new role as executive vice president of retail, Polese will join the company’s executive committee and report to interim CEO Phillip Miller.
Posted by Blacks at 08:29 AM | Comments (0)
June 26, 2006
Harry Winston Continues Too Add Shine
Riding high on last year’s double-digit sales growth, Harry Winston has made aggressive growth plans.
The luxury jeweler said that it plans to add over 30 new locations over the next 7 years. It will concentrate on its two top markets, North America and Japan, as well as buildout its successful bridal business.
The company is also giving a nod to men’s interest in jewelry and plans to introduce a full men’s collection this year.
Posted by Blacks at 09:15 AM | Comments (0)
June 23, 2006
Gant, Jeffrey To Produce Exclusive Men's Line
All-American apparel maker Gant has teamed with New York retailer Jeffrey to introduce a menswear collection.
The line, which will feature updated classics such as button-downs and rugby shirts, will be available in November, exclusively at Jeffrey.
Gant’s partnership with the super chic boutique underscores the current popularity of the preppy look, particularly on the east coast. The pair are also considering producing an exclusive womenswear collection.
Posted by Blacks at 09:30 AM | Comments (0)
Lord & Taylor Fetches $1.2 Billion
NRDC Equity Partners snapped up Lord & Taylor for $1.2 billion this week, with plans to keep most of the 48-store chain intact.
New York-based NRDC invests in well-known retail brands with valuable real estate, and L&T certainly fits the bill.
The chain’s 600,000-square foot Manhattan flagship is considered its most coveted asset. NRDC said it plans to keep the flagship a retail location, although it could scale it down to 300,000 to 400,000 feet.
What isn’t immediately clear is how the group plans to revive the aging image of L&T. The chain will be run by NRDC's Richard Baker, who will assume the role of chairman.
Posted by Blacks at 09:06 AM | Comments (0)
June 22, 2006
H&M To Open New Up-Market Chain
Swedish retailer Hennes & Mauritz plans to introduce a new store chain offering more expensive and fashion-forward merchandise.
The chain, due to open next spring, will operate under a different brand name, according to investor relations head Nils Vinge.
Vinge made the announcement after reporting that H&M rang in a 12 percent profit increase to $363 million during its second quarter, led by strong May sales.
As well as going up market, H&M is also planning to expand internationally. The retailer plans to enter China in 2007 with two new stores.
Posted by Blacks at 10:06 AM | Comments (0)
Report: Lord & Taylor Finds Buyer
Federated Department Stores is poised to announce that it is selling Lord & Taylor to NRDC Equity Partners, WWD reported Thursday.
NRDC, based in Purchase, New York, invests in companies in the retail, leisure, lodging, and commercial real estate sectors.
Although a purchase price has yet to be released, L&T was valued last month at around $1.2 billion.
Posted by Blacks at 08:54 AM | Comments (0)
June 21, 2006
Marni Plans New Online Store
Marni has decided to take a full leap into e-commerce and will open the doors to its new online store in August or September.
Marni.com will be a partnership between the fashion house and e-retailer Yoox, which already sells Marni goods on its own site.
Yoox will provide the technology infrastructure, such as the payment software, as well as design the site’s look and navigation. The site will reportedly mimic the layout of Marni’s real world locations.
The online store will be run Carolina Castiglioni, the 25-year old daughter of Marni head Gianni Castiglioni.
Posted by Blacks at 08:58 AM | Comments (0)
June 20, 2006
Burberry's Bravo Awarded CBE
Outgoing Burberry CEO Rose Marie Bravo will be named a Commander of the British Empire (CBE) on Thursday for her services to the British fashion and retailing industry.
At the end if this month Bravo will cede her position to Burberry Vice Chairman Angela Ahrendts.
The CBE will be given by Prince Charles to correspond with the 150th anniversary of Burberry.
The iconic brand and its trademark trenches have become synonymous with British style, and to celebrate its long history, the company is releasing a collection of signature items in an “Icons” collection this year.
Posted by Blacks at 12:12 PM | Comments (0)
Saks Saves Petites
Little ladies won a victory this week when Saks Fifth Avenue decided to reestablish its petite department.
Although the retailer just put an end to offering petite womenswear in January of this year, customer complaints convinced it to start restocking smaller sizes for fall.
Saks said that 32 of its 55 stores would begin offering petites in November, and that it would offer trunk shows featuring the goods in October.
The move will likely put pressure on other chains to keep the pace in petites.
Posted by Blacks at 09:06 AM | Comments (0)
June 19, 2006
Slimane Drives Hard Bargain At Dior
Christian Dior could be forced to part ways with menswear designer Hedi Slimane.
Slimane’s contract is due to expire next month and the designer is driving a hard bargain to renew it, WWD reported Monday.
Although negotiations are still ongoing, Dior is quietly putting together a backup plan, according to the daily.
The French designer, who gained fame by popularizing the slim silhouette in menswear, began his career with Dior in 2000 after working at Yves Saint Laurent.
Posted by Blacks at 09:24 AM | Comments (0)
Update: Barrato Leaves Brioni
As Blacks first reported Friday, Joseph Barrato has left his position as U.S. CEO of Brioni.
Brioni is taking the post of president of Ralph Lauren Purple and Black Label, according to a DNR report out Monday. He was originally rumored to be going to St. Andrews.
Brioni was under pressure to cut the veteran loose after complaints from retailers over minimums, among other issues, according to inside sources.
Brioni requires retailers to order 15 units a season, but since the items have a retail cost of around $4,000 to $8,000 each the outlay is substantial. What's more, the sell-through on rack goods is low, and retailers pushed back.
Posted by Blacks at 08:52 AM | Comments (0)
June 16, 2006
Future Uncertain For Paco Rabanne
Paco Rabanne appears to be going through some serious restructuring, and has reportedly told retailers that it won’t be shipping its fall/winter collection.
The Paris-based brand, owned by Spain’s Puig Group, is rumored to be closing and employees have been told to look for other jobs. However, it is unclear whether the brand will be completely shutdown, or if Puig has other plans.
Casting another uncertainty, Paco Rabanne house designer Patrick Robinson has reportedly returned home to New York.
Posted by Blacks at 09:36 AM | Comments (0)
June 15, 2006
Report: Jacob & Co. Founder Arrested
Jacob & Co. founder Jacob Arabo was arrested at his New York store on Thursday, according to WWD.
The jewelry entrepreneur was indicted with 15 other individuals for violating federal drug laws, including money laundering.
Arabo was also charged with giving jewelry to accused drug offenders, according to the report.
Jacob & Co. is knows for its elaborate diamond jewelry and watches.
Posted by Blacks at 01:34 PM | Comments (0)
Jones Apparel Tries To Woo Wang
Jones Apparel Group is reportedly looking to make a deal with Vera Wang to produce a sportswear label.
Jones, which owns a number of big-name retail brands, including Barneys New York, Anne Klein and Nine West, is currently up for sale and has interest from a number of private equity groups.
Some are speculating that the group is looking to the Wang deal to make its “For Sale” sign more attractive. But the designer, famed for her bridal gowns, is famous for lengthy negotiations, according to WWD.
Posted by Blacks at 12:11 PM | Comments (0)
June 14, 2006
Blacks's Take: Should Gap Go Designer?
Gap Inc. is the latest retailer to consider hitching its wagon to designer names in an effort to increase sales.
Gap Brand President Cynthia Harriss said last week that the chain is thinking about selling designer or co-branded apparel in its stores, following similar moves by mass-market players such as Hennes & Mauritz and Target.
While the strategy has been wildly successful for H&M and others, Gap should think carefully before trying on a designer strategy, according to Blacks Senior Consultant Steve Pruitt.
“There aren’t as many opportunities in designer casualwear (basics), and at the end of the day people go to the Gap to get basics, not brands,” Pruitt said.
Gap tried to go up-market several years ago by offering more fashion-fashion products, but the move flopped, according to Pruitt.
“Customers weren’t interested in their fashion product, and they wound up missing sales on basic items,” he said.
While it’s possible for the Gap to put together a designer strategy that works, it can only be done if the retailer commits itself for the long term and implements the plan in a way that doesn’t neglect its core customer base, Pruitt said.
"This is a lot of ifs," he added.
Posted by Blacks at 12:10 PM | Comments (0)
Consumer Prices Continue To Climb
U.S. core consumer prices rose 0.3 percent in May, beating economists’ expectations. May was the third month in a row that consumer prices took a climb, leading to predictions that the Fed could again raise interest rates.
Consumer prices overall are 4.2 percent higher than a year ago, according to Labor Department statistics.
Meanwhile, wholesale prices on domestic apparel for girls and women increased by 0.5 percent in May, but were down 0.2 percent from a year ago. Wholesale prices for domestically produced boys' and men's apparel fell 0.3 percent in May, down by 1.3 percent from a year ago.
Posted by Blacks at 09:17 AM | Comments (0)
June 13, 2006
Jil Sander Appoints New U.S. Head
Jil Sander has selected former Balenciaga executive Michele Sodi as the new head of its U.S. business.
Sodi will start as president of Jil Sander America on Monday, reporting to company CEO Gian Giacomo Ferraris. The two executives were previously colleagues at Gucci Group.
Sodi will be based in New York and oversee the German fashion house’s North American retail and wholesale business.
Posted by Blacks at 09:40 AM | Comments (0)
June 12, 2006
Tom Ford Store Delayed
Tom Ford is pushing back the opening of his new Manhattan store, due to construction and permit delays.
The highly anticipated Madison Ave. shop, featuring Ford’s new menswear collection, is now expected to open next spring.
The three-storey location was originally planned to open in November.
Posted by Blacks at 08:46 AM | Comments (0)
June 09, 2006
Neiman's Reports Strong Sales, Expansion Plans
Neiman Marcus’s third quarter results were mixed, as same store sales showed a moderate increase while income plunged on interest expenses.
The luxury department store chain, which is owned by Texas Pacific Group and Warburg Pincus, reported net income of $40.5 million for the quarter ended April 29 on sales of $1.03 billion.
Same store sales rose 4.5 percent over a year ago, driven by women’s apparel, including couture, eveningwear, and contemporary apparel, according to Neiman execs.
While sales increased 10 percent over the year-ago quarter, income was eaten up by interest expense since Texas Pacific and Warburg Pincus financed their October buy of the retailer with debt.
Neiman predicted growth going forward, with plans to open new stores and increase Website sales.
Posted by Blacks at 12:13 PM | Comments (0)
Hilfiger Ends Lagerfeld's Contemporary Line
Tommy Hilfiger Corp. has decided to discontinue Karl Lagerfeld’s contemporary sportswear line, following slumping sales.
The signature line was launched in Neiman Marcus and Bergdorf Goodman with considerable fanfare, and its short life span comes as a bit of a surprise given Lagerfeld’s usual success.
Hilfiger bought the rights to the Lagerfeld name in January 2005, but earlier this year Hilfiger was purchased by private equity group Apax Partners. Apax has been reorganizing Hilfiger’s business, and has decided to drop Lagerfeld’s New York-based contemporary line after the fall season and consolidate the Lagerfeld business in Paris.
Posted by Blacks at 10:13 AM | Comments (0)
June 08, 2006
H&M Sews Up Deal With Material Girl
Swedish retailer Hennes & Mauritz has scored another high-profile collaboration, this time with Madonna. The Material Girl is helping to design a tracksuit that will be available at H&M stores in August.
Madonna is currently in the middle of a world tour and has agreed to wear H&M clothing while offstage. Her dancers are also joining in the offstage promotion, and will appear in an advertising campaign with the singer to tout the partnership.
H&M has been a leader in forging celebrity deals to endorse lower-priced fashion items. Previous collaborations include budget lines by Karl Lagerfeld and Stella McCartney.
Posted by Blacks at 09:07 AM | Comments (0)
June 07, 2006
CFDA Names Designers Of The Year
Calvin Klein’s Francisco Costa was named Womenswear Designer of the Year at the CFDA awards in New York over the weekend, while Thom Browne was named Menswear Designer of the Year.
Costa beat out Marc Jacobs, and Proenza Schouler's Lazaro Hernandez and Jack McCollough to take the womenswear prize.
The Council of Fashion Designers of America also awarded Olivier Theyskens from Rochas as International Designer of the Year and Tom Binns as top accessories designer.
The celebrity-clad ceremony is held each year to honor established and up-and-coming fashion talent.
Posted by Blacks at 10:02 AM | Comments (0)
June 06, 2006
Exec Named To Grow Marc Jacobs Worldwide
LVMH Moet Hennessy Louis Vuitton has named a new head for Marc Jacobs International, emphasizing the company’s momentum abroad.
Current Louis Vuitton finance and administration executive Bertrand Stalla-Bourdillon will take on the roles of chairman and CEO of Marc Jacobs International beginning in September.
Stalla-Bourdillon has been with LVMH for 20 years and is known for his enthusiasm for the product and brand.
Posted by Blacks at 09:40 AM | Comments (0)
June 05, 2006
Diesel Revs Up Growth Plans
Diesel is laying plans to rev up its premium offerings and double its U.S. sales in the next five years.
The Italian brand also wants to expand its Denim Gallery collection and accessories, all while keeping an exclusive image.
Diesel owner Renzo Rosso revealed the company’s growth strategy in a recent interview with WWD.
It will be interesting to see if Diesel can hit aggressive growth targets and maintain a niche standing.
Posted by Blacks at 10:55 AM | Comments (0)
June 03, 2006
Fred Segal Plans Vegas Debut
L.A. shopping landmark Fred Segal is set to open a mammoth store in Las Vegas.
Segal, best known for it's celebrity-packed Melrose Ave. location, plans to open a 100,000-square foot store in the desert’s new W hotel.
The $1.7 billion hotel is planned to open in 2008, and will also feature 3,000 hotel and residential units, 10 restaurants, a nightclub, a casino, a spa, a gym and other “lifestyle elements.”
Posted by Blacks at 10:52 AM | Comments (0)
June 02, 2006
Galliano Prepares Lower-Cost Line
John Galliano’s new diffusion line will be available in July, offering fashionistas the chance to get their hands on the famed designer’s threads for 40 percent less than they would pay for his signature line.
The much-anticipated collection will comprise of 300 pieces, including sportswear, denim, knits and more tailored looks.
The diffusion line is being distributed by Galliano licensing partner IT Holdings, and will be available in 500 locations worldwide.
There’s even talks of freestanding boutiques to show off the line, but so far nothing is confirmed.
Posted by Blacks at 09:54 AM | Comments (0)
June 01, 2006
May Sales Beat Expectations
May retail sales came in higher than expected as fuel costs failed to stall consumer spending.
Federated Department Stores reported a 9.2 percent jump in same-store sales, driven by the strong performance of its Macy’s and Bloomingdale’s chains.
Nordstrom also did well, reporting a 7.2 percent gain in same store sales for the month.
Saks Inc. was one of the few high-end chain stores to miss expectations, reporting a slim 1.1 percent gain for May.
Posted by Blacks at 12:20 PM | Comments (0)
