Blacks Retail Report

Luxury Apparel
April 2007

Table of Contents

The Big Picture
Market Makers
Jewelry Update
Blacks Bottom Line

The Big Picture

While the U.S. economy remains mixed, apparel retailers posted strong gains in March, especially in the women's wear business. Our women's merchants reported an average gain of 23 percent in the month, thanks to a boost from the early Easter holiday.
Last month's sales may take a bite out of business in April, so it's time to rebuild momentum by highlighting new products and organizing store events.

Market Makers

With the fashion shows over and fall buying almost done, retailers are back in their shops and focused on spring business. At this point in the season, merchants should be taking a look at their remaining on-orders to determine if they still need those goods, or if they can cut deals with vendors. Most of the product is in and the shipping door will be closing on March 30th.

For men, early seasonal frontrunners include jackets, sports coats and hybrid pants. Once trunk show season kicks into high gear we will have a better idea of how suit trends are developing. So far, early suit sales have been strongest at the upper end.

In women's With the end of April upon us, retailers are reaching peak season. Business on average was up in the 90-day period from Feb. 1 to April 1. Sales were supported by strong product and demand from high-end customers who want stylish pieces for each new season.
Trends set at the beginning of the season continue to be played out in the market. In men’s wear, this means brisk sales of soft jackets and sports shirts. Sweaters have also picked up, due to lingering cool weather on the East Coast.
As the rest of the nation warms up, t-shirts are also making gains, in both the fancy and casual categories.
In women’s wear, dresses and collection items are flying off the racks. Dresses are eating up some of the market for skirts, so we are seeing a slight slowdown in this category. In tops, blouses and knitwear are picking up speed and the high-end tunic is the season’s hot seller. wear, we're seeing early sales in the collection business as well as in contemporary classifications. Jackets are doing particularly well, with merchants reporting double-digit growth.

As we forecasted earlier, dresses are producing brisk sales. We haven't seen much of a refresh in the accessories business, however, as shoes and handbags continue to stagnate.

One of the issues with shoes is that the spring lines are filled with short dresses requiring high heels. On the East Coast in particular, the weather hasn't gotten warm enough for ladies to switch from boots to heels. We expect to see a pickup in the shoe business as we head into warmer weather. That said, ballet flats are still a big hit and will continue to be bought well into fall.

Jewelry Update

Although the jewelry business has been soft in general, guild jewelers are faring far better than mall operations. The “Journey” five-diamond pendant is selling well, thanks in part to extra promotion by De Beers. East Coast retailers were hurt by storms over Valentine’s Day (also known as the jeweler’s Christmas) so we are eager to see how Mother’s Day sales play out.

The big jewelry shows are coming up in May and June, and we expect De Beers to start to push the three-stone trend again, which could steal steam from the Journey. To help weather these trends, jewelers should market to the special occasions that occur year-round – anniversaries and birthdays.

Blacks Bottom Line

Fine jewelry merchants need to remember that every day is a special event.

Retail Report