March 13th, 2012

...now browsing by day

 

Tod’s Net Up 23.8 Percent

Tuesday, March 13th, 2012

Tod’s S.p.A. closed 2011 with a 23.8 percent increase in net profits, which reached 135 million euros, or $187.6 million at average exchange rates, in the year ended Dec. 31.

Strong gains in Asia and robust growth of the Tod’s brand helped the Italian luxury goods firm report a 13.5 percent rise in sales to 893.6 million euros, or $1.24 billion. The Tod’s label grew 19.8 percent in 2011, reaching revenues of 487.5 million euros, or $677.6 million.

Affected by soft consumer spending in Italy and by its selective distribution, the Hogan brand showed a 4.7 percent increase in revenues to 280.9 million euros, or $390.4 million, last year. The company is pushing Hogan’s expansion internationally, especially in Asia, where it opened its first three stores in China in September. Also hurt by the weak Italian market, Fay sales dropped 2 percent to 87.8 million euros, or $122 million.

Roger Vivier revenues climbed 67.9 percent to 36.5 million euros, or $50.7 million. In a conference call with analysts, chief financial officer Emilio Macellari said a Vivier store will open in the U.S. in the first half of the year.

Sales of footwear, the group’s core business, rose 14.5 percent to 646.5 million euros, or $898.6 million, followed by leather goods and accessories, which gained 17.6 percent to 144.9 million euros, or $201.4 million. Apparel grew 2.6 percent to 101.6 million euros, or $141.2 million.

All markets posted double-digit growth except for Italy, where sales were up 5.5 percent. “Brilliant results” in Germany, the U.K. and France helped boost revenues in the rest of Europe, which rose 11.2 percent to 182 million euros, or $253 million.

Sales in the U.S. gained 17 percent to 62.4 million euros, or $86.7 million.

As of Dec. 31, the group had a positive net financial position equal to 110.7 million euros, or $153.8 million, compared with 96.5 million euros, or $134.1 million, at the end of 2010.

Commenting on the outlook for 2012, Diego Della Valle, chairman and chief executive officer, said that, despite the economy, he was “confident that the strength of our brands and the excellent appeal of our products will enable our group to post a significant growth of sales and profits also this year.”

Della Valle said that the board proposed to pay a dividend of 2.50 euros, or $3.27 at current exchange, per share — a 25 percent increase compared with the previous year, and corresponding to a pay-out of 56.7 percent of the group’s net income. Pending approval next month, the dividend will be paid on May 24, “considering that the group has all the financial resources necessary to continue its growth story and its investment activity,” said Della Valle. The executive added that, despite the economy, he was “confident that the strength of our brands and the excellent appeal of our products will enable our group to post a significant growth of sales and profits also this year.”

Operating profit climbed 21.7 percent to 194.6 million euros, or $270.5 million.

The company had 176 directly operated stores and 70 franchised units at the end of December. Most of the openings last year were in Asia, mainly in Mainland China and in Hong Kong, where the group currently operates 40 directly operated stores. Macellari said Tod’s in 2012 is “considering” opening 15 to 20 stores, mostly in China; “ a couple in Brazil,” a new market for Tod’s; one in Japan, and two in Korea. These venues will comprise “mostly” Tod’s stores, then Hogan banners and three Roger Vivier units.

Meanwhile, in a separate statement released this afternoon, the group said that “following the rumors of an alleged termination of the collaboration between Tod’s and Derek Lam, the company confirms that the agreement between the parties is set to terminate on [Sept. 30, 2012].”

It said that “in the meantime, Tod’s is in the process of evaluating its options, considering that, based on the company’s future development plans, the role of the creative director of Tod’s will be central and even more important. The choice will therefore be directed toward an individual with great creative talent and able to commit the necessary amount of time to the success of the brand.”

Shares closed up 7.17 percent to 84.45 euros, or $110.70 at current exchange.

m

A

In 2011, the group invested a total of 61.9 million euros, or $86 million, including about 20 million euros, or $27.8 million, aimed at the restoration of Rome’s Colosseum.

In 2012, capital expenditures will total between 50 and 60 million euros, or $69.5 million and $83.4 million, including investments in the expansion of Tod’s headquarters and production facilities, said Macellari.

Posted in Apparel, Brand, E-tail, Finance, News, Retail, accessories | No Responses »

Liz Claiborne names Hilfiger exec as new CFO, COO

Tuesday, March 13th, 2012

Apparel retailer Liz Claiborne Inc. has announced former Tommy Hilfiger executive George Carrara as its executive vice-president, chief financial officer, and chief operating officer with effect from April 2, 2012.

Carrara, who until recently served as chief operating officer at Tommy Hilfiger North America, replaces Andrew Warren, who is leaving this month to March take up the position of CFO at cable television channel operator Discovery Communications. Carrara will begin the new job on April 2. He will oversee finance, global operations and information technology, and report to Liz’s chief executive officer William McComb.

The New York based firm, which changes its name to Fifth & Pacific Companies in May, has been shedding brands, including its namesake Liz Claiborne line, in a bid to pay down debt and enhance profitability. It says Carrara’s experience in tackling “systems and operating costs” will be key in his new post as executive vice president, chief financial officer and chief operating officer.

“George has tremendous experience leading finance and operations in a multi-channel apparel company. His industry experience, coupled with his value system and his reputation for delivering results make him an excellent fit for our company. As we tackle our systems and operating costs, it makes sense for George to take the position of chief operating officer as well. He has had that combined experience before and has excelled.” says CEO William McComb.

Carrara, adds: “I have been following the company’s progress, and I am thrilled at the opportunity to help guide Liz Claiborne Inc into the growth phase of its transformation.”

Further, the firm, which is now focusing on its Juicy Couture, Kate Space and Lucky Brand units, has also promoted Robert Vill to senior vice president, finance and treasurer. Vill is also expected to serve as interim CFO with effect from March 16, 2012 until Carrara joins the company next month. Vill, will report to Carrara once he starts work at Liz. In addition to his new role, Vill will continue to serve as corporate treasurer and head of investor relations, a position he has held since April 1999.

Liz Claiborne most recently booked a fourth-quarter profit of US$229.2m thanks to the sale of its namesake brand to retailer JC Penney. Without this gain it would have posted a loss for the three months to 31 December as sales fell 2.6% to $447.1m.

Posted in Apparel, Brand, Finance, Labor, News, Operations, Retail, ladies | No Responses »

JCPenney promotes Sweney and shuffles execs

Tuesday, March 13th, 2012

US department store retailer JC Penney Company Inc. has announced nine various promotions and appointments as part of ongoing plans to overhaul its business including he promotion of Liz Sweney to chief merchant and will lead the reinvention of JC Penney’s apparel and home portfolio.

Liz Sweney’s promotion is part of plans to reinvent JCPenney’s product portfolio. She most recently served as executive vice president and senior general merchandise manager of J.C. Penney’s women’s apparel, accessories, footwear, jewelry and juniors divisions as well as Sephora inside J.C. Penney. She will now be responsible for all divisions – women’s, men’s, children’s, footwear, jewelry, accessories, handbags and home.

In her new capacity, she has promoted Siiri Dougherty to SVP, to Senior Vice president, general merchandise manager of women’s apparel; and Liz Asay to Senior Vice president, Sephora inside jcpenney, having previously served as vice president of Sephora inside jcpenney. Both will report to Sweney.

Anne Cashill, formerly vice president of merchandising for Coach Inc., and Bill Gentner, who had been Senior Vice President of planning and promotion for Penney’s, have both been named Senior Vice Presidents of strategic brands. Cashill will work to develop and strengthen the company’s exclusive and national brand initiatives. She will oversee key brands including Liz Claiborne, Martha Stewart and l’amour Nanette Lepore. Gentner will work on the company’s private brands such as The Original Arizona Jean Company and Xersion.

Steve Seabolt, formerly vice president of global brand partnerships for Electronic Arts Inc., has joined the company as senior vice president of strategic brand alliances.

Brian Robinson, who had been director of fashion and design partnerships at Target Corp joins jcpenney as Vice president, marketing and design partnerships and will focus on “identifying new strategic partnerships” for Penney’s, according to the company.

Katheryn Burchett, a 10-year Penney’s veteran, who most recently as divisional vice president of merchandise strategy and played a key role in the acquisition of the Liz Claiborne brand, has been promoted to Senior Vice president, merchandising and marketing integration.

Leading the JCPenney brand makeover are company veteran Greg Clark, who has been promoted to Senior Vice President creative, and Eric Hunter. Hunter, most recently chief marketing officer and group president for Scotch & Soda and Lamb & Flag at Kellwood Co. takes up the role of Senior Vice president of marketing, responsible for the Company’s marketing strategy, media buying, customer insights and loyalty programs.

While Mike Fisher joins the retailer from Apple as Senior Vice Ppresident of visual presentation to oversee the company’s new store experience, including the Street, the Square and the Shops.

JCPenney president Michael Francis said: “As we fundamentally re-imagine every aspect of our business, we’re tapping into the best internal and external talent in the industry. We’re focused on building a world-class organisation that will be instrumental in delivering a revolutionary shopping experience that is unlike anything that exists in retail today. We will continue to look both internally and externally as we build an organisation to accomplish this goal.”

The retailer, which operates 1,100 stores, is in the process of revamping its offer, with a new pricing strategy, plans to re-invent the store experience, a new brand identity and a number of new brands.

Posted in Activewear, Apparel, Beauty, Brand, Labor, Media, News, Operations, Retail, Social Media, accessories | No Responses »

Urban Outfitters Q4 profit slumps 48% on markdowns

Tuesday, March 13th, 2012

Lifestyle specialty fashion retailer Urban Outfitters, Inc. has seen its fourth quarter net income fall 48 percent from last year, after markdowns to clear slow-moving women’s wear impacted margins, even as sales increased 9%. The company’s quarterly earnings per share also came in below analysts’ expectations as did its quarterly sales.

The Philadelphia, Pennsylvania-based company, which operates the Anthropologie, Free People, Urban Outfitters Terrain, Leifsdottir, and BHLDN brands, said net income in the three months to January 31, 2012, tumbled 47.7% to $39.3m, or $0.27 per share, down from $75.2m, or %0.45 per share share, in the same period last year. And below analysts expectations of $0.29 per share for the fourth quarter.

But net sales rose 9% to $730.65m, from $668.39 million in the same quarter last year, analysts had a consensus revenue estimate of $741.35 million for the fourth quarter. Comparable retail segment net sales, which include the direct-to-consumer channels, increased 2% for the quarter, while comparable store net sales fell 1%. Comparable retail segment net sales increased 3%, 9% and 1% at Urban Outfitters, Free People and Anthropologie respectively. Direct-to-consumer comparable net sales increased 14% and wholesale segment net sales rose 3% for the quarter.

Gross margin for the quarter fell to 30.1% from 39.7% in the prior year quarter, mainly due to increased merchandise markdowns to clear slow-moving women’s apparel inventory at both Anthropologie and Urban Outfitters, as well as occupancy deleverage caused by negative comparable store net sales.

Operating margin for the quarter declined to 8.8% from 18.0% a year earlier.

CEO Richard Hayne said: “I am pleased that we managed our inventories to appropriate levels at year end even though our margins during the quarter suffered as a result. Our rate of full-priced selling has improved from fourth quarter levels as we seek to re-establish our historic full-price selling penetration.”

For the full year, net income fell to $185.3m or $1.19 per share, down from $273.0m or $1.60 per share the year before. Total company sales rose 9% to $2.5bn, with flat comparable retail segment net sales and a 4% drop in comparable store net sales.

During fiscal 2012, the company repurchased and retired 20.5 million common shares for about $538 million, completing all of its repurchase under a board authorized share repurchase program.

During the year ended January 31, 2012, the company opened a total of 57 new stores including: 21 new Urban Outfitters stores, 15 new Anthropologie stores, 20 new Free People stores and 1 BHLDN store. The company, which operates a total of 429 Urban Outfitters, Free People and Anthropologie stores, plans to open another 55 to 60 stores this year.

Posted in Apparel, Brand, Finance, Men, News, Operations, Retail, ladies | No Responses »