News

Report: Socol Plans Early Retirement From Barneys

Barneys New York CEO Howard Socol is reportedly planning to retire a year ahead of schedule, leaving the luxury retailer hunting for a new chief.

Socol, 62, has been butting heads with the investment group that took over the company last year, Istithmar. The Dubai-based group had plans to build Barneys presence in the U.S., but since then the economy has gone soft. According to reports, Socol and Istithmar execs have been at odds over a new action plan.

Barneys has yet to confirm Socol’s forthcoming departure but insiders speculate that it could happen soon.

Bloomingdale's Cuts Catalog To Focus On Web

In a sign of the times, Bloomindale’s is discontinuing its catalog business to concentrate on its Website.

The retailer is stopping its catalog sales early next year and at the same time is working to improve the e-commerce capabilities of its Website. Bloomindale’s By Mail normally produces 40 catalogues a year, requiring a large marketing and production team, but online sales have far outreached catalog sales.

Bloomingdale’s owner Macy’s says that it expects direct-to-consumer sales, including both entities Websites, to reach over $1 billion in 2008.

Intermix Sees No Slowdown, Plans New Doors

Fashion retailer Intermix appears immune to the economic slowdown. It’s opened four new boutiques in the last month, including a third store in Chicago.

The other new doors opened in East Hampton, N.Y, Orlando, Fla., and Charlotte, N.C.

Intermix, which carries a wide variety of designer brands, seems to have a formula that works. The New York-based retailer plans to open four more stores later this year and four to eight stores next year.

Hermès Reports Double-Digit Growth In Q1

Sales at Hermès surged 13.4% to $622 million during the first quarter of the year. The French luxury brand cited growth across all categories and regions, except Japan.

The brand saw a sales increase of almost 22% in silks and textiles for the quarter ended March 31, while ready-to-wear and fashion accessories climbed 15.6%. Sales of leather handbags grew by 25%.

Hermès pinned the growth on expansion and new store openings which it plans to continue throughout this year.

Sleepwear King Peter Alexander Opens In L.A.

Australian sleepwear retailer Peter Alexander is expanding with a new flagship on Robertson Boulevard in Los Angeles. The 2,200-square foot shop will offer higher-end merchandise such as silk and cashmere products.

The brand has recently opened stores in Glendale and San Jose, Calif., and plans to open more doors on the East Coast. The company, which is well known in Australia and New Zealand, hopes to eventually have 40 to 50 U.S. locations.

LVMH Scoops Up Swiss Watchmaker Hublot

LVMH Moët Hennessy Louis Vuitton added luxury Swiss watchmaker Hublot to its stable of powerhouse jewelry brands. LVMH already owns the Tag Heuer, Zenith and Chaumet brands.

Hublot raked in sales of $150 million last year, thanks to the popularity of its Big Bang line, and is expected to reap as much as $250 million this year.

The acquisition comes during a time of increased demand for high-priced watches, especially in Asia.

Fay Expands Barneys Distribution Deal

Luxury Italian outerwear brand Fay is moving further into the U.S. market through a distribution deal with Barneys New York. Fay's sportswear and outerwear already started selling at Barneys' Madison Ave. flagship last year, but it will soon be sold in four additional Barneys doors.

The brand's overcoats range from $1,200 to $1,600 while its pullover sweaters fall in the $400 range.

At Blacks, we’re seeing early customer demand for fall outerwear, indicating that Fay may have a good season ahead.

Zegna Plans Aggressive Retail Push

Despite the cloudy economic outlook, Zegna plans to open a bevy of new stores in 2008, including two in the U.S. and 20 in China. The decision follows a 10% rise in earnings for 2007 to $96 million on sales that climbed 8.3% to $1.2 billion.

The Italian brand reported that its U.S. sales increased by 12% last year while sales in China soared by 38%, driven by apparel and accessories.

L&T Revamps Stores, Considers New Markets

Lord & Taylor has laid out plan to expand into new categories and markets. The retailer is hoping to convert 100,000 square feet of its New York flag ship into a home furnishings department featuring Fortunoff home shops and jewelry. It’s also opening 47 Fortunoff jewelry departments in its stores in February.

At the same time, L&T is looking for ways to expand abroad, and is said to be considering a licensing model. While no deals are in the works yet, the company said that several groups have shown interest in partnering in international markets.

Sigerson Morrison Opens In Malibu

Sigerson Morrison opened a new 1,500-square foot store in Malibu featuring the brand’s signature footwear and handbags as well as footwear from Belle. The store, located in the Malibu Country Mart, sits among other California-style brands such as Juicy Couture and Ron Herman.

Sigerson’s footwear line ranges from about $400 to $1200 while its handbags run around $500 to $1600.

Sigerson exces said that they had luck opening new locations in rough economic times, when rents are down. The company hopes to soon open two new stores in San Francisco and Europe.

Lim Steps Into Japan With Tokyo Flagship

Philip Lim opened a new flagship in Tokyo, serving as his first step into Japan. The 2,230-square-foot store features the full range of 3.1 Philip Lim merchandise, including women’s and men’s apparel, jewelry, accessories, and even children’s clothes.

Lim has plans to open 8 more stores in Japan over the next five years, as well as 12 shops within shops.

The Tokyo store is Lim’s second flagship; his first is in New York. He plans to open a third boutique in LA in June.

Gucci's Sales Slip On Product, Supply Issues

Sales at Gucci dipped 3.3% in the first quarter of the year to $770 million as luxe brand faced issues such as slower traffic and supply chain troubles. Gucci said it also missed the mark by focusing on its high-end products instead of the middle-range goods that consumers are clamoring for.

Gucci parent PPR said that it would work on overcoming these problems in the quarters ahead. Meanwhile, PPR’s other luxury brands showed much stronger growth for the period ended March 31.

Yves Saint Laurent reported sales growth of 20% to $95 million while Balenciaga offered high, double-digit growth.

Joe's Jeans Steps Into Retail With Chicago Store

Joe’s Jeans is venturing into retail with the opening of its first branded store in Chicago. The almost 1,900-square foot space, due to open in August, will showcase Joe’s premium denim line and complementary collection pieces.

The company is planning to open 50 new doors in the next five years, saying that margins in retail are higher than in wholesale. Even with lower margins, Joe’s managed to report a 75% sales increase for 2007 to $63 million.

Coach Reports Sales Spike, Plans 40 New Doors

Coach’s third-quarter income spiked 8.3% to $162 million on sales that jumped 19% to $745 million.

Comps for the period ended March 29 were up 9%. Riding on the wave of success, Coach detailed plans to open up 40 new doors over the next year. It has developed a new store format called “the gallery” in which all of Coach’s merchandise is easily viewed in one place.

The company declined to give specific projections for the rest of the year but said it expected double-digit growth.

Bergdorf NY Opens Balenciaga Shop

Bergdorf Goodman has opened a Balenciaga boutique in its Fifth Avenue store, offering ready-to-wear, handbags, jewelry and accessories. The 720-square foot space is Balenciaga’s first shop-in-shop in the U.S. It sits next to Bergdorf’s Prada store and features French furnishings in a deco theme.

The Balenciaga pieces start at $225 and reach almost $16,000 for an exclusive gown. Bergdorf said that Balenciaga’s Nicolas Ghesquière is one of the most influential designers today and it is pleased to offer his work.