April, 2012

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JC Penney appoints Wooster as men’s wear head

Monday, April 30th, 2012

Troubled US department store operator JC Penney has announced the appointment of Nick Wooster as VP, brand, design and trends for menswear.

Wooster left Neiman Marcus and Bergdorf Goodman, where he was men’s fashion director, just under a year ago.

A spokesperson for JC Penney said: “Nick is a star in the fashion industry and is well-known for his impeccable style and bold approach to fashion. As we focus on becoming America’s favourite store, his unique design aesthetic will elevate the style associated with popular brands such as Arizona and Stafford, and help to transform the menswear business at jcpenney.”

The company has made a swathe of executive appointments in recent months, appointing John Singleton as EVP, chief supply chain officer, among others, on Friday.

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3i Preparing For Sale Of Hobbs?

Monday, April 30th, 2012

Private equity firm 3i is preparing Hobbs for a sale in a deal that could value the business up to £250m, or $405m, according to multiple sources.

3i and Hobbs management have appointed corporate advisor PricewaterhouseCoopers, sparking speculation that the womenswear retailer is preparing for a sale. According to the report, PricewaterhouseCoopers has indicated to Hobbs that any takeover could value the business at between 200 million pounds and 250 million pounds.

Hobbs chairman Iain MacRitchie told the Telegraph, however, that PwC had been appointed to advise the retailer on expansion plans over the next two years and was not looking to trigger a sale process immediately.

MacRitchie said that Hobbs will focus on expanding the brand online and internationally. He told The Telegraph: “PwC are devoting considerable resource to help us develop our online capabilities, supply chain and introduce us to international trading partners.”Once 3i and Hobbs are satisfied with expansion and financial performance, they will pull the trigger on a sale process, the report added.

Hobbs, whose brands include Hobbs London, NW3 and Hobbs Invitation, came under the control of 3i in 2004 in a deal which valued the retailer at £111m.

Last year, Hobbs secured £14m of new investment from its private equity backer 3i, parachuting in turnaround specialist MacRitchie to replace retail veteran Tony Campbell as chairman.

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Wolverine World Wide leads bid Collective Brands?

Monday, April 30th, 2012

Collective Brands has allegedly chosen a group made up of Wolverine World Wide and Golden Gate Capital as the leading contender to buy the company.

The acquisition may be announced early this week, Bloomberg reported, saying that the offer values the company at US$21-22 a share and is likely to be chosen over a bid from South Korean company E-Land. However, unnamed sources told Bloomberg that the decision isn’t final and could change at the last minute as the companies work out terms and financing.

Analysts said it is likely Wolverine will gain the Saucony, Sperry Top-Sider, Stride Rite and Keds brands, while Golden Gate will oversee the Payless ShoeSource retail chain, with particular focus on turning around the U.S. Payless business, which saw sales fall 2.1 percent in the fourth quarter ended Jan. 28, 2012.

In August last year, the company revealed plans to launch a strategic review after it swung to a second quarter loss of US$35m. It hired Perella Weinberg Partners and Kurt Salmon as advisers. The announcement came as the company revealed plans to close some 475 under-performing Payless and Stride Rite outlets.

Shares of Wolverine World Wide Inc. opened 1.3 percent higher Monday morning on market buzz that it is the leading contender to buy Collective Brands Inc. Whilst Collective’s shares fell 2 percent to $20.80 when the market opened Monday.

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White Stuff makes raft of new appointments

Monday, April 30th, 2012

White Stuff has made a raft of managerial appointments with Moss Bros chairman Debbie Hewitt and House of Fraser director of merchandising Jo Penny joining the team.

Hewitt, former chief executive officer of motoring company the RAC, has been named as chairman after Vince Gwilliam decided to step down from the role to take on a senior non-executive director role. Hewitt also holds director roles including chairman of Moss Bros and non-executive director of car dealer HR Owen and housebuilding company Redrow.

Penny, former House of Fraser director of merchandising for 14 years, joined White Stuff last week as merchandising director.

Former House of Fraser director of buying for accessories and lingerie Antonia Long has also been appointed as buying and design director. She has previously held roles including buying director at Coast, senior buyer at Oasis and buyer at Next. Long will join the lifestyle retailer at the end of May.

Long replaces Katie Grassby who has decided to step back after 17 years in the role to spend more time at home. She will instead work as style director on a part-time basis.

Former La Senza interim chief executive Nick Mather has been appointed as chief financial officer. His responsibilities include finance, IT, property, supply chain and logistics. He has previously held group finance director roles at both French Connection and Liberty.

Finance director Richard Steele is set to leave the retailer at the end of June. He has been with the company since March 2007 but has decided to spend some time with his young family before exploring other opportunities.

Ian McMillan has been appointed as IT director, joining White Stuff from business consultancy the Change Management Group. In the newlycreated position McMillan will be responsible for IT and will help drive process change management within the business.

Chief executive officer Sally Bailey said new staff would assist the company on its “next stage of growth”.

The retailer will continue with plans to open at least six new stores in its next financial year.

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Adidas Preliminary Q1 Profit Up 38% but Reebok Irregularities to effect group results

Monday, April 30th, 2012

German sports goods giant Adidas Group on Monday said profit in the first quarter increased significantly from last year amid a growth in revenue. Citing the stronger than expected performance in the quarter, Adidas lifted its full year view. Further, Adidas said certain commercial irregularities discovered at Reebok India Co. in India, would likely affect the consolidated financial statements of the adidas Group. The estimated negative impact is up to 125 million euros pre-tax.

Announcing the preliminary first-quaretr results, Adidas said net income attributable to shareholders increased 38 percent to 289 million euros, helped by lower financial expenses and a lower tax rate. Group revenues increased 17 percent to 3.8 billion euros. The increase was 14 percent on a currency-neutral basis. According to the sports goods maker, growth rates in Greater China and Japan as well as at TaylorMade-adidas Golf were stronger than originally anticipated.

While gross margin slipped 0.7 percentage points to 47.7 percent, operating margin improved 1.1 percentage points to 10.7 percent. Group operating profit increased 30 percent to 409 million euros.

Further, the company said the adidas Group might have to restate prior-year consolidated financial statements as the irregularities discovered at Reebok India have been deemed to have occurred before 2012. The financial statements of adidas AG will not be affected by this issue. Specific details will be disclosed in due course as appropriate due to the sensitivity of the on-going investigation, Adidas said.

Under a newly appointed leadership team, the management is planning an accelerated restructuring of its business activities in India, including significant changes to its commercial business practices. This could lead to additional one-time charges of up to 70 million euros in the remaining quarters of 2012.

Looking ahead, the company now expects net income attributable to shareholders to increase at a rate between 12 percent and 17 percent in comparison with prior outlook of a 10 percent to 15 percent growth.

Group sales for the full year are now expected to grow at a rate approaching 10 percent on a currency-neutral basis compared to the previous outlook of a growth of mid- to high-single-digit.

The revised guidance takes into account the stronger than expected first-quarter financial performance, the continuing strong momentum of the Group’s brands in key markets as well as the impacts from potential one-time charges for 2012. The stock closed on the Xetra in Frankfurt on Friday higher by 2.02 percent at 59.82 euros on a volume of 848,075 shares.

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

Duo in Irisa and Jacques Vert exit

Monday, April 30th, 2012

Womenswear group Irisa and Jacques Vert has made two directors redundant following the merger of the businesses earlier this year.

John Boyle, who was chief financial officer at Irisa Group (previously Alexon Group) since October 2009, left last month, while Pauline Brown, HR director at Jacques Vert, will leave the business next week.

Ian Johnson, previously finance director at Jacques Vert, has now taken on the role of finance director across the business. Kirstie Watson, who was HR director at Irisa Group, is now group HR director.

It is not known whether Boyle or Watson have been appointed elsewhere.

Paul Allen, chief executive of Irisa and Jacques Vert, confirmed the redundancies but declined to comment on any further changes.

“These changes have been made simply because of the merger,” he said, adding that a full strategy around the merger would be unveiled next month.

It was revealed in January that private equity owner Sun European would combine Irisa and Jacques Vert, with Allen as chief executive and former Irisa Group chief executive Jane McNallybecoming deputy chief executive.

Private equity backer Sun European Partners bought Irisa Group and Jacques Vert in separate deals last year.

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All Saints was close to collapse as rows over money owed emerge

Monday, April 30th, 2012

All Saints came close to collapse at the end of 2010, amid rows with its suppliers over money owed, it has emerged.

Evidence suggests that the retailer was at risk of going into administration five months before a £105m ($171m) deal with private equity houses Lion Capital and Goode Partners was agreed. The situation came to light when former All Saints fit-out contractor RTS Contracts filed claims with the High Court earlier this month against the young fashion retailer for money owed from 2010.

The Scottish firm, which worked for All Saints as a master contractor, is suing the retailer for £1.15m ($1.87m) plus interest and damages for breach of contract. The disagreement relates to discount demanded by All Saints after warnings that it would collapse unless RTS Contracts and other suppliers agreed to reduce their bills.

All Saints’ financial difficulty was underlined when chief executive Stephen Craig shared that the company had suffered poor sales over Christmas 2010. A combination of this and new shop openings had led All Saints to risk breaching lending facilities. RTS alleges that All Saints’ expansion into America cost double the amount originally projected, coming to £43m ($70m).

By December 2010, the money All Saints owed had risen to £9.7m ($15.8m) as RTS organised work on stores including Moscow, Berlin and Chicago. According to both the Mail on Sunday and The Sunday Telegraph, papers filed with the High Court show that Craig demanded RTS Contracts cut costs by £2m ($3.26m).

Another firm, Unique Finds, which supplied the antique sewing machines that decorate All Saints’ windows, also claims it is still owed money dating from 2010, according to The Mail on Sunday.

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Betsey Johnson enters Bankruptcy proceedings

Friday, April 27th, 2012

US women’s wear brand Betsey Johnson has entered Chapter 11 Bankruptcy protection.

On Thursday, it was revealed that Betsey Johnson LLC has filed Chapter 11. Betsey Johnson LLC is the licensee that operates the designer’s 63 freestanding stores, women’s apparel and e-commerce. It is run by Castanea Partners, the Boston-based private equity firm that bought a controlling interest in the company in 2007.

In a filing to the US Bankruptcy Court, Southern District of New York, the company said it made attempts to find new equity investors or sell the brand, but despite negotiations with two interested parties, no deal materialised.

Betsey Johnson LLC’s chief financial officer, Jonathan Friedman, said, “The decision to seek protection under Chapter 11 comes after months of rigorously pursuing alternative restructuring arrangements to address Betsey Johnson LLC’s cash-flow problems. After exhausting our resources and possibilities, it became apparent that neither a restructuring arrangement with a new equity investor nor a sale of the business enterprise as a going concern outside of bankruptcy was to be forthcoming. Accordingly, our board made the determination that a Chapter 11 store-closing process will likely be the best way to maximize the value of the company’s assets, for the benefit of its creditors.”

Despite all the upheaval, Johnson remains creative director of the brand and she will continue to oversee the design of her sportswear, accessories and various licenses. Going forward, the emphasis will be on the moderately priced Betsey Johnson label, which is sold at Macy’s Inc. and other retailers, as well as the litany of other categories. The Betsey Johnson Collection, which is carried in the designer’s freestanding stores and has dresses that retail for $395, has not sold nearly as well as the more middle-of-the-road Betsey Johnson label, which has a retail sweet spot of $128 to $148. About 75 percent of the spring line will be moderate-priced goods, with the remainder being editorial- and designer-range pieces.

There are plans to start closing the 63 stores in a few weeks with the help of a nationally recognized liquidation firm to be selected in the first weeks of the bankruptcy case.As a result, about 350 staffers are expected to lose their jobs.

The company’s largest unsecured creditors include Haskell Jewels, BC America, Parawin Industries and American Express.

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VF raises full-year forecast after strong first-quarter

Friday, April 27th, 2012

VF Corp has raised its full-year earnings guidance on the back of strong first-quarter results.

The company, which owns the North Face, Lee and Nautica brands, among others, today announced first-quarter profits rose 7.2 percent to US$215.2m or $1.91 a diluted share over the quarter ended 31 March, from $200.7 million, or $1.82, a year earlier. Adjusted earnings per share of $1.94 came in 7 cents ahead of the $1.87 analysts expected. Revenues for the three months ended March 31 gained 30.5 percent to $2.56 billion, with the Timberland acquisition adding $356 million to the quarter’s revenues.

Organic revenue growth, which excludes recent acquisitions Timberland and Smartwool, increased a better-than-expected 12%, due in part to earlier shipments and stronger sales of seasonal products. Gross margin declined, primarily due to the negative impact of higher jeanswear product costs, down to 45.7% from 47.2% in the prior year period.

“Our excellent first quarter performance spotlights our success in driving brand growth across our portfolio and the ability of VF’s diversified business model to deliver healthy, sustainable growth on both the top and bottom lines,” said VF Corp. chairman and CEO Eric Wiseman. “Our momentum is strong, and we are excited about the prospects for delivering another year of record revenues and earnings to our shareholders.”

The company also boosted its outlook higher for the full year, it expects adjusted earnings per share to rise to $9.45 a share, up 15 cents from the $9.30 previously forecast.

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LaCrosse posts 32% increase in first-quarter sales

Friday, April 27th, 2012

US footwear company LaCrosse reported a 32% increase in first-quarter sales as the company fulfilled US military order and increased work shoe sales, despite some headwinds from bad weather.

For the period ended March 31, the Portland, Ore.-based firm reported earningds of $560 million, or 8 cents a share — reversing its net loss of $650 million, or 10 cents, a year earlier. Net sales over the quarter reached US$33.3m, marking a 32 percent increase from $25.2 million a year ago. The revenue increase was broad-based across the work and military segments.

Sales to the work market surged 50 percent to $24 million, while sales to the outdoor market advanced 2 percent to $9.3 million. Growth in the work market was driven by the fulfilment of the military order and growing demand from a “variety of non-military government and other niche work markets”. Excluding the contract military and discontinued work apparel sales, core work sales were up 9% on a year-on-year basis.

Outdoor market sales rose 2% to $9.3m. Overall outdoor sales were negatively impacted by unseasonably warm and dry weather conditions, offset by growing demand for its new hiking and lifestyle products. Gross margins declined to 37.9% from 41.4%, which it attributed to the increase in US military business and closeout sales.

President and CEO Joseph Schneider said: ”We’re pleased with our performance in the first quarter of 2012, particularly the continued sales growth for our core work products and the success of our newest outdoor products… Despite the adverse impact of unusually warm and dry weather during the winter, we’ve made good progress in reinvigorating our outdoor product line with our innovative new hiking and lifestyle boots to extend the appeal of our brands across a broader demographic… During the quarter, we completed delivery of the large military contract that began in the fourth quarter of 2011 and saw increased sales of our tactical law enforcement boots and other innovative products to a variety of government customers. We also continued to penetrate into niche work market segments, such as mining, oil and gas exploration, and agriculture.”

The firm ended the period with cash of $402,000 and long-term debt of $107,000.m

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