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July 31, 2007
"Pashmy" Bag Helps Boost Sales At Tod's
Tod SpA’s revenues surged 15.7 percent in the first half of the year. The luxury group said that it saw strong sales from its namesake brand as well as from its newer labels: Hogan, Fay and Roger Vivier.
Sales at Tod’s grew 6 percent in the period, in part due to the demand for the brand’s “Pashmy” bag, which has been seen on the arms of a number of celebrity customers.
Tod’s expects to maintain its positive momentum through the rest of the year as it follows direction from the brand’s new creative director, Derek Lam.
Posted by Blacks at 09:39 AM | Comments (0)
July 30, 2007
Luxury Brands Steam Ahead In First Half Of '07
Big name luxury groups continued to thrive in the first half of this year, driven by demand for jewelry, fashion and leather goods.
PPR, which owns Gucci Group and other luxury brands, reported a sales increase of 18 percent for the second quarter. The company said it saw strong sales across the board, with the only dark spot in Japan.
LVMH Moët Hennessy Louis Vuitton also saw growth in the first half. It reported a 6 percent increase in sales and a 2 percent increase in profit for the period, with continued demand for luxe fashion, footwear and monogrammed leather goods.
LVMH did particularly well with watch and jewelry sales, which leapt 18 percent thanks to brands such as Tag Heuer and Dior.
Posted by Blacks at 09:26 AM | Comments (0)
July 27, 2007
Gap Names Drugstore Exec As New CEO
In a somewhat surprising move, Gap selected former Canadian drugstore retailer Glenn Murphy its new chairman and CEO. Murphy was the top executive at Shoppers Drug Mart Inc., where he led a turnaround by introducing more upscale goods.
Despite his success, Murphy has no apparel experience, making him a curious choice to lead the struggling clothing chain. Gap hasn’t shown sales growth for five years and its brand is starting to wane, in large part due to its merchandise decisions.
We will be eager to see how Murphy will approach the retailer’s challenges.
Posted by Blacks at 09:52 AM | Comments (0)
July 26, 2007
Nordstrom To Get $220M For Façonnable
Nordstrom has agreed to sell Façonnable to Beirut-based M1 Group for $210 million. Despite being one of the retailer‘s top brands, Nordstrom decided to sell Façonnable because its core objectives did not align with running a wholesale business.
Nordstrom purchased the brand in 2000 for $169 million. Façonnable’s worldwide sales are now estimated at $220 million.
Posted by Blacks at 09:10 AM | Comments (0)
July 25, 2007
St. John Expanding Into Non-Apparel Categories
St. John is planning a brand expansion that will see its name on jewelry, handbags, eyewear, shoes and fragrance. After turning around its core apparel business, the Irvine, California, company is hoping to launch into new categories for holiday 2007 with the help of licensing partners.
Previously, St. John had seen an erosion in its traditional customer base and decided to return to the classic fitting and styles that made it popular over the last four decades. The company is now reaping the rewards of that decision, with improved sell-thru rates and a return of its traditional customer base.
Posted by Blacks at 09:58 AM | Comments (0)
July 24, 2007
Thom Brown Launches Women's Wear Line
Women will soon be able to wear Thom Brown’s shrunken jackets and shortened trousers. The quirky designer is launching a 25-piece collection of women’s clothing which will go on sale this fall at Barneys New York, Jeffrey New York, Bergdorf Goodman and Colette in Paris.
Prices will be similar to his men’s wear line with suits and jackets selling for around $4,000, sweaters for $1,500 and shirts for $400.
Posted by Blacks at 09:32 AM | Comments (0)
July 23, 2007
Brands Sue Forever 21 For Copying Designs
Fast fashion retailer Forever 21 is facing a bevy of lawsuits from designers who claim the chain is knocking off their designs. Bebe, Diane von Furstenberg, Anthropologie and Anna Sui are just a few of the brands taking legal action against the retailer for intellectual property violations.
Forever 21 doesn’t have its own in-house design team and is accused of stealing designs from other vendors, according to reports.
The cases could put the spotlight on fast fashion retailers in general and encourage more designers to copyright their fabric designs.
Posted by Blacks at 09:27 AM | Comments (0)
July 20, 2007
Nordstrom Pushes Into Boston With 4 New Doors
Nordstrom is counting on a strong customer base in Massachusetts to open four new stores over the next three years. The first new door will open in Natick, Mass. in September, boasting 144,000 square feet of space.
The retailer also plans to move into Burlington in 2008, the North Shore in 2009 and the South Shore in 2010.
Nordstrom’s strong push into the Boston area is partly driven by the opportunities created by the recent shutdown of local favorite Filene’s.
Posted by Blacks at 09:53 AM | Comments (0)
July 19, 2007
Women's Apparel Prices Slip In June
Women’s retail apparel prices dipped 1.4 percent in June – despite an overall increase in consumer prices – indicating an increased level of discounting.
The biggest cuts came in activewear, nightwear and accessories, followed by suits and separates.
June dress prices increased by 1.1 percent, however, underscoring the strong dress trend we’ve been seeing for the past couple of seasons.
Posted by Blacks at 09:33 AM | Comments (0)
July 18, 2007
Equity Firm Plans $27B Bid For Macy's
Private equity firm Kohlberg Kravis & Roberts is mulling a $27 billion bid for Macy’s. KKR has teamed with Goldman Sachs on the deal, which could be agreed upon within a matter of days.
The private equity firm is preparing for its IPO later this year and sees Macy’s as a valuable feather in its hat.
If the deal goes through, sources believe that KKR will keep current Macy’s management in place.
Posted by Blacks at 08:10 AM | Comments (0)
July 17, 2007
Soho's Lounge Signs Lease On Vegas Strip
Edgy New York boutique Lounge is opening a new 10,000-square foot location in Las Vegas. The store has signed on to be the retail anchor of the new Cosmopolitan casino, due to open in 2009.
The deal gives Lounge 150 feet of exposure on the Vegas strip to sell its premium denim and denim-driven tops and accessories.
The new store is expected to take some elements from Lounge’s existing location in Soho, including a bar, a DJ and a vintage department.
Posted by Blacks at 09:00 AM | Comments (0)
July 16, 2007
Gap Considers Apparel Outsider As New CEO
Gap is circling in on its next CEO, according to reports. Possible candidates include acting president and CEO Robert J. Fisher and apparel outsider Glenn Murphy, who used to head Canada’s Shoppers Drug Mart Inc.
Murphy managed to turnaround the drug store chain and is regarded for his ability to integrate higher margin and higher value merchandise.
Despite his previous successes, it remains to be seen if Murphy can handle the particular challenges of the apparel industry, and Gap’s flagging position in the marketplace.
Posted by Blacks at 09:58 AM | Comments (0)
July 13, 2007
Retail Sales Slow In June; Luxury A Bright Spot
Retail sales posted their largest drop in two years in June, dipping 0.9 percent, according to the U.S. Commerce Department. The dip comes after a strong first quarter of spending and a 1.5 percent decline in May.
In general, specialty retailers and discounters fared better than department stores. Luxury chains like Saks and Neiman Marcus were the best performers, posting year-over-year sales increases of 5.6 percent and 6.4 percent, respectively.
Posted by Blacks at 08:17 AM | Comments (0)
July 12, 2007
Jones' CEO Resigns Amid Barneys Sale
Jones Apparel Group President and CEO Peter Boneparth has resigned amid the group’s high-profile sale of Barneys New York. Boneparth will be succeeded by current Chief Financial Officer Wesley R. Card.
Boneparth spent five years atop the company after a career as an investment banker. He started to come under scrutiny last year when Jones reported a $144 million net loss and Boneparth failed in his plan to sell the company as a whole.
There is currently a bidding war for the company’s top property, Barneys, which could go to Japan’s Fast Retailing Co. or Dubai-based private equity group Istithmar.
Posted by Blacks at 09:43 AM | Comments (0)
Claiborne Puts 16 Smaller Brands On Review
Liz Claiborne has put 16 of its smaller brands on review while it focuses its attention on major brands such as Juicy Couture, Lucky Brand, Kate Spade and Mexx.
The move is part of Claiborne CEO William L. McComb’s turnaround plan to cut costs and speed up the company’s fashion cycles.
The plan could involve the dissolution or possible sale of mid-tier brands such as Ellen Tracy, Sigrid Olsen and Dana Buchman.
Posted by Blacks at 09:42 AM | Comments (0)
July 11, 2007
Valentino Takes Stake In Proenza Schouler
Valentino Fashion Group has taken a 45 percent stake in Proenza Schouler, saying it was excited about the growth potential of the hot, young brand. Valentino paid $3.7 million for a stake in the five-year old company.
Proenza Schouler has already won a number of accolades, including the Council of Fashion Designers of America’s Womenwear Designer of the Year award and the CFDA/Perry Ellis award for emerging talent.
Proenza said that it was excited about the influence Valentino brings to the table in terms of manufacturing, deliveries and distribution.
Posted by Blacks at 09:38 AM | Comments (0)
July 10, 2007
Limited Slips Out Of Apparel Business
Limited Brands moved out of the apparel business this week with the sale of a 75 percent stake in its Limited Stores division. The stake was sold to Sun Capital Partners Inc. in a noncash deal that will let the company focus on its intimate apparel and beauty products divisions.
The news comes shortly after the company sold its Express division to Golden Gate Capital for $602 million.
Limited Brands said that its apparel properties had shrunk to just 20 percent of its business and it sees more growth in its Victoria’s Secret and Bath & Body Works properties.
As for the Limited stores, Sun Capital Partners plans to reinvigorate the business, which it says has a strong customer base.
Posted by Blacks at 09:57 AM | Comments (0)
July 09, 2007
Berlin Greets Its First Fashion Week
Fashion destination: Berlin? It may not have the reputation of Paris, London or New York, but Berlin is aiming to improve its status as a fashion city by holding its first Mercedes Benz Fashion Week.
Show organizers are hoping to bank on the German capital’s transformation into a style-conscious city, aided by the entrance of new luxury stores and the fashion demands of a young and creative population.
Fashion Week will run from Thursday to Sunday of this week, featuring designers such as Puma, Hugo, Annett Roestel and Prototype.
Posted by Blacks at 09:48 AM | Comments (0)
July 06, 2007
Ungaro Left With Vacant Women's Wear Post
Peter Dundas has stepped down from his role as women’s wear designer at Emanuel Ungaro. Dundas and the French design house could not agree on a direction for the company, according to reports. A successor has yet to be named.
Dundas did his first ready-to-wear collection for Ungaro in 2006 after leaving his post at Roberto Cavalli. Speculation is swirling over where the Norwegian-American designer will land next.
Posted by Blacks at 09:38 AM | Comments (0)
July 05, 2007
Japanese Company Makes $900M Bid For Barneys
Jones Apparel Group has received a rival bid for Barneys New York that pushes the price point to $900 million. This trumps an existing offer of $825 million from Dubai-based private equity firm Istithmar, which Jones has already accepted.
The new bid comes from the Japanese clothing company Fast Retailing, which has 1,800 specialty stores sprinkled across 12 countries.
If Jones decides to go with the higher bid, it will have to pay Istithmar a breakup fee of $20.6 million to $22.7 million, depending on when the agreement is terminated.
Posted by Blacks at 09:14 AM | Comments (0)
July 04, 2007
Furla Taps Fontanelli As New CEO
Italian accessories brand Furla named Paolo Fontanelli as its new CEO, succeeding Giovanna Furlanetto, who will stay on as chairman.
Fontanelli was previously chief financial officer at Giorgio Armani and will now lead Furla through its planned expansion.
Former CEO Furlanetto said that she wants to double the company’s sales by 2011 by introducing new fashion footwear lines and growing its handbag division.
Posted by Blacks at 08:59 AM | Comments (0)
July 03, 2007
Dior Celebrates Its 60th With Couture
Christian Dior celebrated its 60th anniversary on Monday with a whimsical couture collection designed by John Galliano. The collection, which showed in Versailles, featured all the pomp and lavishness of the French court with bustles and flowing satin trains, fanciful hats and elaborate embroidery.
Galliano also paid homage to Dior’s 1947 New Look, which introduced a sleek new silhouette of slim waists and full skirts.
The show cycled through a wide range of influences and featured top models, fitting with Dior’s status and Galliano’s enduring imagination.
Posted by Blacks at 09:39 AM | Comments (0)
July 02, 2007
Sullivan Leaves Liz For Top Role At Talbots
Liz Claiborne Inc. president Trudy F. Sullivan resigned last week to take the top role at Talbots Inc. Sullivan will succeed former Talbots president and CEO Arnold Zetcher, who is stepping down after two decades at the company.
Sullivan will be charged with reversing waning sales at Talbots and its J. Jill property. However, her experience at Liz Claiborne should bode well. Both Claiborne and Talbots focus on customers over 35 and carry strong brand loyalty.
Posted by Blacks at 09:37 AM | Comments (0)
