News
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May 31, 2007
Net-a-porter Nets Major Growth
Luxury e-tailer Net-a-porter reported a revenue surge of nearly 75 percent to $72 million for its last fiscal year. The increase was attributed to a rapid expansion in its customer base.
Net-a-porter said that consumers are becoming more accustomed to buying luxury clothing online and that it’s average order value is around $1,000.
Blacks’s Take: The company’s success should be encouraging news for luxe retailers who are contemplating a move online.
Posted by Blacks at 09:42 AM | Comments (0)
U.S. First Quarter GDP Revised Downward
First quarter economic growth was the weakest in four years, according to revised figures from the U.S. Commerce Department. The economy grew just 0.6 percent, down from the 1.3 percent estimate the department gave a month ago.
Growth was affected by a major sell off of business inventories in the first quarter and an increase in imports of foreign goods.
Posted by Blacks at 09:31 AM | Comments (0)
May 30, 2007
Consumer Confidence On The Upswing
Consumer confidence rebounded in May from the 5-month low it reached last month, according to a survey by the Conference Board.
The group’s Consumer Confidence index rose to 108, from its April level of 106.3. Consumers are feeling more optimistic about the current business landscape, although concerns remain over high gas prices and the lackluster job market.
The survey results are consistent with a 3 percent rise in consumer spending, the Board said.
Posted by Blacks at 09:11 AM | Comments (0)
May 29, 2007
National Retailers Take Steep, Planned Markdowns
The large national retailers are already taking serious markdowns to rid themselves of some spring/summer goods.
Chain department stores, such as Barneys and Saks, are holding “pre-sales” of 30 percent to 50 percent off. Barneys has reduced women’s and men’s collections by a third. All sales are highly planned to correspond with the arrival of early fall goods.
Speaking of fall, the new Jil Sander line encapsulates elegant simplicit. For the jetset, Goyard luggage is sure to be a must-have.
Posted by Blacks at 09:10 AM | Comments (0)
May 25, 2007
Chloé To Extend Into Jewelry, Watches
The luxury group that owns Chloé plans to keep growing the brand, adding jewelry and watches to its product line.
The brand has already produced a secondary line called See by Chloé, and made forays into sunglasses and leather goods.
Chloé is one of Compagnie Financière Richemont’s best performing brands, posting a 50 percent sales increase in the company's last fiscal year.
Posted by Blacks at 09:26 AM | Comments (0)
May 24, 2007
Gap HIres Robinson For Design Turnaround
The Gap has hired former Paco Rabanne designer Patrick Robinson as it new executive vice president of design for Gap Adult and Gap Body in North America. The appointment comes as Gap struggles to turnaround its flagging brand, which has been criticized for a lack of fashion innovation.
Robinson has also worked at Anne Klein, Perry Ellis and Giorgio Armani and is known for his clean designs. It will be interesting to see how he interprets The Gap’s basics.
In separate news, the San Francisco based retailer reported a 26 percent decline in net profits for the first quarter of this year and a 4 percent drop in same-store sales.
Posted by Blacks at 09:24 AM | Comments (0)
May 23, 2007
Nordstrom Suits Up For Agressive Growth
Nordsrom has hit its stride and is making aggressive expansion plans for both its brick and mortar and online businesses. The department store chain plans to add at least 26 new stores over the next five years, as well as remodel seven of its existing stores annually.
The retailer also plans to double its online sales over the next three years to $1 billion.
The market push comes on the heels of rosy first quarter results that saw revenues rise by 9.3 percent to nearly $2 billion.
Posted by Blacks at 09:02 AM | Comments (0)
May 22, 2007
Saks Reports Surge In Q1 Comps
Saks Fifth Avenue continues to gain momentum, posting a 14.4 percent increase in comps for the first quarter of the year, and a sales gain of 15.9 percent to $792.7 million.
The department store chain has benefitted from a renewed focus on luxury. High-end handbags, accessories, menswear and tailored clothing led sales, the retailer said.
Meanwhile, net profits fell 86 percent when compared to last year’s figures, which were boosted by massive store selloffs.
Posted by Blacks at 08:34 AM | Comments (0)
May 21, 2007
Marc By Marc Jacobs Opens Two New Doors
Marc By Marc Jacobs is carefully expanding its empire with the opening of two new stores: one in Savannah, Ga. and one in Provincetown, Mass.
The Savannah location is considerably larger at 4,700 square feet, while the Provincetown shop weighs in at just 400 square feet.
The smaller shop will focus on the nearby Cape Cod community and close for winter, when tourists and seasonal residents go elsewhere.
Posted by Blacks at 08:43 AM | Comments (0)
May 18, 2007
De Beers Moves Into San Francisco's Union Square
Diamond giant De Beers is opening a new flagship in San Francisco’s Union Square. The 4,700-square-foot building is located on Post Street, just a stone’s throw from jewelry rivals Tiffany and Shreve & Co.
De Beers chose the location due to Union’s Square’s reputation as a luxury shopping hub.
The new, two-story shop is expected to open in October or November of this year.
Posted by Blacks at 09:35 AM | Comments (0)
May 17, 2007
Federated Posts Q1 Income Boost, Plans Name Change
Federated Department Stores is on the mend, reporting first quarter income of $36 million, compared to a loss of $52 million last year.
The company, which owns the Macy’s and Bloomingdale’s chains, said it was happy with the performance of more mature stores, despite a weakness in newer locations.
Federated purchased the Macy’s chain two years ago and has been busy converting its May locations to Macy’s doors.
In fact, Federated plans to change its corporate name to Macy’s, pending shareholder approval.
Posted by Blacks at 08:28 AM | Comments (0)
May 16, 2007
Limited Sells Express Stake To Golden Gate
Limited Brands Inc. is cutting Express loose by selling a 67 percent stake to Golden Gate Capital. The decision comes as part of Limited’s focus on lingerie and beauty products, following a long stagnation in the company’s apparel business.
Limited will still retain a 33 percent stake in Express, but its concentration will be on its Victoria’s Secret and Bath & Body Works brands.
The move reflects an overall downturn in the mass market apparel sector, where brands like Gap and Abercrombie & Fitch continue to struggle with competition from fast fashion retailers like H&M and discount chains like Target.
Posted by Blacks at 09:30 AM | Comments (0)
May 15, 2007
Federated Invests In Futuristic Mall Concept
Mall shopping could never be the same again. At least, Federated Department Stores and its new equity partners hope so. The group is investing in a new mall format called Epicenter Collection which will showcase online, catalogue and manufacturing companies that don’t currently have a brick and mortar presence in one huge retail space.
Federated and its partners have formed a company called Convergent Retail LLC which will launch the first Epicenter in Newark, Del. in early fall 2008. The new center will fill over 180,000 square feet in an old Lord & Taylor location.
Customers can pay using a device that allows them to select and buy products without waiting in line, or they can make their purchases at touch-screen kiosks and traditional checkout counters.
If the concept is a success, there could soon be Epicenters popping up at malls across the country.
Posted by Blacks at 09:22 AM | Comments (0)
May 14, 2007
Report: Equity Groups Eye Valentino
The luxury apparel sector is abuzz with speculation that the Valentino Fashion Group could be sold to a private equity player. The company has reportedly received multiple offers from financial players, but no formal proposal yet.
A sale could result in designer Valentino Garavani, 75, stepping down. The company has apparently been looking for a replacement for the iconic designer without success.
Posted by Blacks at 09:28 AM | Comments (0)
May 11, 2007
Kate Moss Line Sells Out At Barneys
Barneys New York was apparently unprepared for the demand for Kate Moss’s new TopShop line since it sold out in about an hour.
At the retailer’s Madison Avenue location, shoppers reportedly scooped up pieces as fast as they could, and even stripped down mannequins.
Barneys said it ordered 11,000 units of the 26-piece line and plans to double its order for fall.
Posted by Blacks at 09:28 AM | Comments (0)
May 10, 2007
Spring Brings Moderate Gains To Retailers
Spring has been tough for many mass market retailers, who reported same store declines for March and April, but upscale operations are weathering the store with moderate gains.
Nordstrom reported a 3.3 percent gain in same-store sales in April and Federated, which owns Macy’s and Bloomingdale’s, cited a 2.2 gain. Saks was the clear winner with a sales surge of 11.7 percent for the month.
In comparison, Gap reported a 7.1 percent decline for the period, and Abercrombie & Fitch’s sales fell by 15 percent.
Blacks's Take: High gas prices and an uncertain economy will continue to affect mass market players more than high-end operations with wealthier customers.
Posted by Blacks at 11:32 AM | Comments (0)
Gucci Appoints New Balenciaga Head
Gucci Group is about to appoint Isabelle Guichot as the new president and CEO of Balenciaga, according to reports. Guichot is currently president and CEO of Sergio Rossi, and will lead both brands until her void at Rossi is filled.
The appointment comes after the announced departure of Balenciaga head James McArthur. McArthur, a Gucci Group veteran of 12 years, has yet to announce his next move.
Posted by Blacks at 09:56 AM | Comments (0)
May 09, 2007
Bottega Takes Tokyo With Huge New Store
Bottega Veneta opened its largest store to date in Japan’s Ginza district. The 9,700 square-foot location boats three retail floors of apparel, accessories, leather goods, home furnishings and jewelry.
The company’s Tokyo investment comes on the heels of robust first quarter results which included a 57 percent increase in sales.
Bottega joins luxe neighbors such as Gucci, Chanel, Cartier and Hermès, all of which are taking advantage of Japan’s thriving high-end market.
Posted by Blacks at 09:17 AM | Comments (0)
May 08, 2007
Puma Lowers Outlook As U.S. Orders Slow
Germany’s Puma warned this week that a decline in U.S. orders could slow its full-year earnings and revenue growth. The news comes as French retail group PPR is trying to take a controlling stake in the activewear company.
Puma reported a 3.7 percent gain in first quarter profits, led by footwear. Although a dip in sales for the remainder of the year would decrease the value of PPR’s possible investment, Puma remains optimistic about the deal.
PPR, which owns Gucci, could attract some high-end sourcing and licensing deals for Puma to increase the value of the brand.
Posted by Blacks at 09:06 AM | Comments (0)
May 07, 2007
Liz To Buy 50% Stake In Narciso Rodriguez
Liz Claiborne Inc. is buying a 50 percent stake in designer Narciso Rodriguez’s eponymous brand. The deal will bring the formation of a new company aimed at growing the Rodriguez brand worldwide.
The companies are reportedly considering an expansion into new categories and channels, including direct-to-consumer.
Blacks’s Take: Given his strong name recognition, Rodriguez should be able to extend his brand into untapped markets as long as the expansion is focused on a level of quality and specific range of categories.
Posted by Blacks at 10:20 AM | Comments (0)
May 04, 2007
U.S. Productivity Slips in Q1
U.S productivity slowed to a 1.7 percent growth rate in the first quarter of this year as employers cut workers’ hours to make up for slower economic growth.
This compares to a growth rate of 2.1 percent in the fourth quarter of last year.
While U.S. productivity is nowhere near the level it reached a decade ago, economists believe that the economy is going to continue in a pattern of modest expansion.
Posted by Blacks at 02:16 PM | Comments (0)
May 03, 2007
Jones Profits From Better Market, Barneys
Jones Apparel Group reported an 85 percent increase in income to $48 million for its first quarter of the year as it rebounded from consolidation moves it made a year ago. Revenue ticked up 2.7 percent to $1.25 billion, driven by better apparel, jewelry and accessories.
Jones’s high-end Barneys New York properties also did well, reporting a 10 percent increase in same-store sales for the quarter ended April 1.
Jones cited weakness in its moderate sportswear business and plans to eliminate some of its brands in the category. Rumor has it that Norton McNaughton and Erika lines could be up for sale.
Blacks’s Take: Both Jones and Liz Claiborne cited a downturn in their moderate women’s wear business this week. We expect retailers to continue to pare down their holdings in this category until the brands and market stabilize.
Posted by Blacks at 09:32 AM | Comments (0)
May 02, 2007
Claiborne's Earnings Drop On Wholesale Slowdown
Liz Claiborne Inc.’s first quarter earnings dropped nearly 66 percent to $16 million due to weak wholesale demand for its women’s sportswear, the retailer said this week.
Sales of wholesale apparel dipped 7.4 percent, due to the dwindling market for bridge lines such as Ellen Tracy and Sigrid Olsen and retailers’ increased use of private label brands, the company said.
The good news was that retail sales were up 15.6 percent thanks to the addition of new locations.
Posted by Blacks at 09:41 AM | Comments (0)
May 01, 2007
Fendi To Foray Into New Categories, Markets
Fendi is planning an expansion that will see new stores in international locations such as Turkey and Qatar, as well moves into the fragrance and fine jewelry business.
The brand, which boasts Karl Lagerfeld as its RTW designer, has been reporting strong numbers as of late, leading to expectations of annual growth of 20 percent to 25 percent over the next five years.
Fendi owner LVMH Moët Hennessy Louis Vuitton is even contemplating building a luxury hotel under the brand’s name.
Blacks’s Take: LVMH is making a smart move by capitalizing on Fendi’s strength as a lifestyle brand.
Posted by Blacks at 09:39 AM | Comments (0)
