May 3rd, 2012

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Hermès Sales Jump 22% in Q1

Thursday, May 3rd, 2012

French luxury brand Hermès International said sales rose 21.9 percent in the first quarter, reflecting strong demand for its leather handbags and silk squares, both in emerging economies and more mature markets.

Hermès reported revenues totaled 776.9 million euros, or $1.02 billion, during the three months ended on March 31. Stripping out the impact of currency fluctuations, sales were up 17.6 percent in the first quarter. All dollar rates are calculated at average exchange rates for the period concerned.

Sales of ready-to-wear and fashion accessories were up 24.8 percent, while silk and textiles registered a 17.8 percent increase. Leather goods and saddlery rose by 18.3 percent, a sharp improvement on the 10.2 percent increase registered in the fourth quarter, when sales were hampered by insufficient production capacity.

In the wholesale channel, sales of perfumes were up 20 percent, while watches posted a 33.1 percent leap and tableware jumped 29.2 percent. At constant exchange rates, total sales from the brand’s network of directly owned stores rose 17 percent in the first quarter, while wholesale revenues were up 19.7 percent.

In regional terms, non-Japan Asia again registered the best performance in the quarter, up 29.1 percent, but it was closely tailed by Europe — excluding France — which posted a 28 percent rise. In the Americas, sales rose 14.7 percent in the first quarter.

Hermès said exchange rates had a positive impact of 28 million euros, or $36.7 million, on sales during the period. The company bought back 89,482 of its own shares in the first quarter for 21 million euros, or $27.5 million, for its employee share ownership plans.

Hermès shares have risen by close to 20 percent this year on strong sales and continued speculation of a creeping takeover by LVMH Moët Hennessy Louis Vuitton. Hermès bought back 89,482 of its own shares in the first quarter for 21 million euros, or $27.5 million, for its employee share ownership plans and locked up more than half its share capital in a non-listed holding group to fend off a potential attack, they will submit additional protection measures to its shareholders at its annual general meeting on May 29.

Shares in Hermès closed down 1.6 percent at 272.40 euros, or $359.18, on the Paris stock exchange on Thursday.

Posted in Brand, E-tail, Finance, Men, News, Operations, Retail, accessories, ladies | No Responses »

Steve Madden Q1 Profit Rises

Thursday, May 3rd, 2012

Footwear and accessories maker Steve Madden today (May 3) posted a 22.5% increase in first-quarter profit, thanks to increased wholesale footwear and accessories sales.

For the first quarter ended 31 March, the company reported net income of $21.87 million or $0.50 per share versus $17.85 million or $0.42 per share the year before. Operating income increased 28.8% to $35.4m.

On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.50 per share. Analysts’ estimates typically exclude special items.

Net sales increased 60.5% to$265.97 million from $165.76 million a year ago. Analysts expected revenues of $249.93 million. Net sales from the wholesale business surged 70.4% to $228.9m, driven by double-digit organic growth in both wholesale footwear and wholesale accessories, as well as the impact from acquisitions of Topline, Cejon and SM Canada.

Retail net sales grew 17.6% to $37m, while same store sales increased 11.9% for the quarter.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “Our first quarter results reflect continued momentum throughout our business. We were particularly pleased with our core Steve Madden brand, which recorded strong growth across categories, channels and geographies. The ongoing momentum in our flagship brand, combined with the growth we are seeing from our newer brands and businesses, gives us confidence that we can continue to drive sales and earnings gains in 2012 and beyond.”

For fiscal 2012, the company now expects net sales to increase 24 – 26% from 2011, compared to previous guidance of a 21 – 23% increase. EPS is now expected to be in the range of $2.62 – $2.72, compared to previous guidance of $2.60 – $2.70. Analysts expect earnings of $2.67 per share.

Posted in Brand, Finance, News, Operations, Retail, accessories | No Responses »

Limited Brands names McGuigan COO

Thursday, May 3rd, 2012

Charlie McGuigan, CEO of Limited Brands’ sourcing and production arm Mast Global, has today (3 May) been promoted to COO of Limited Brands.

McGuigan will retain his current responsibilities and assume leadership of enterprise operations, Limited Brands said. Martyn Redgrave, chief administrative officer of Limited Brands, will transition to the role of senior advisor to the company this summer.

McGuigan joined the company in May 2004 as senior vice president of the technology services function for the company. Prior to joining Limited Brands, he worked for Cap Gemini Ernst & Young. Redgrave joined the company the following year. He has previously held leadership positions at hospitality and travel firm Carlson Companies and Pepsico.

Leslie Wexner, chairman and CEO of Limited Brands said: “Charlie has exhibited great insight and vast knowledge in a variety of leadership roles at Limited Brands. I appreciate his ability to bring teams together to deliver results and look forward to working with him in his new role.”

Posted in Brand, Labor, News | No Responses »

Beiersdorf Net Flat in Q1

Thursday, May 3rd, 2012

Beiersdorf AG, maker of the Nivea brand, today (May 3) said profit in the first quarter was flat with last year, while revenues improved year-over-year. The company confirmed its outlook for 2012.

Beiersdorf AG’s first-quarter net profits were flat at 125 million euros, or $163.8 million, the company announced today. The company benefited from a positive overall market trend in the quarter after the weak business performance seen in Asia and Europe in the first quarter of the previous year. Positive calendar effects also contributed to the sales increase.

Adjusted for special factors, net income at the Hamburg, Germany-based cosmetics and adhesive maker gained 7.1 percent to 135 million euros, or $176.9 million.

Group operating profits, excluding special factors, were up 18.6 percent to 198 million euros, or $259.5 million, while the earnings before interest and taxes (EBIT) margin rose to 12.9 percent from 11.8 in the same prior-year period.

Sales in the quarter increased to 1.53 billion euros from 1.41 billion euros in the prior year. Global sales rose 10.1 percent, led by Nivea Deo, Nivea Sun and Nivea Body, while Eucerin’s revenues grew 7.8 percent.  Luxury label La Prairie posted a 1.2 percent sales dip. Dollar figures are converted at average exchange for the three-month period ended March 31.

Beiersdorf’s consumer division, which includes the Nivea, Eucerin and La Prairie brands, registered first-quarter sales growth of 9 percent to 1.28 billion euros, or $1.68 billion. On an organic basis, revenues increased 6.8 percent. The division’s operating profits excluding special factors spiked 18.8 percent to 164 million euros, or $214.9 million. Its EBIT margin was 12.8 percent, compared with 11.7 percent in first-quarter 2011.

Top markets for Beiersdorf’s consumer division included Latin America, with a sales uptick of 16 percent, primarily due to growth in Brazil. The zone including Africa, Asia and Australia recorded a revenue increase of 12.7 percent, while closer to home – in Eastern Europe – sales rose 10.3 percent, driven by Russia and Poland. In Germany, revenues gained 6 percent, while in Europe, they rose 4 percent.

Sales at Beiersdorf’s Tesa adhesive division increased 9.2 percent to 256 million euros, or $335.5 million. In organic terms, the revenues rose 7.2 percent. Tesa’s first-quarter EBIT was up 17.2 percent to 34 million euros, or $44.6 million.

Looking ahead to 2012, the group aims to improve sales from 2011. The operating EBIT margin in 2012 is expected to be around 11 percent to 12 percent both for the group and for its consumer division.m

Posted in Beauty, Brand, Finance, News, Operations, Retail | No Responses »

Binnie steps down from Aurora board

Thursday, May 3rd, 2012

Stewart Binnie, non-executive president of womenswear group Aurora Fashions, has stepped down from the board with immediate effect.

Binnie has been with Aurora, the parent company of womenswear chains Oasis, Coast and Warehouse, for 10 years eight of which were spent as chairman. Over his time with the group, turnover grew from GBP135m (US$218.5m) to GBP615m, and now trades from over 1,600 stores in 54 countries worldwide.

“Stewart has been with us for over decade, adding great value and commercial insight as we’ve evolved as a business,” said Aurora Fashions chairman Derek Lovelock.

“The retail environment has changed significantly over this time and, in an often challenging climate, his varied background in retail, investment management and private equity has provided invaluable expertise to the board. We appreciate all his guidance and wish him every success in the future.”

A spokeswomen for Aurora added that Binnie will be looking to pursue other opporunities but could not say what these would be.

The remaining Aurora board remains unchanged and members include: Derek Lovelock, Mike Shearwood, Richard Glanville, Meg Lustman, Johann Reyndal, Pall Ólafsson and Fabian Mansson.

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

H&M Taps Anna Dello Russo

Thursday, May 3rd, 2012
Hennes & Mauritz AB has today announced its forthcoming accessories collaboration with renowned fashion director Anna Dello Russo.

Following on from its string of successful collaborations with designer brands, including Marni and Versace earlier this year, fashion editor and style blog fixture Anna Dello Russo to design a collection of accessories due to go on sale during the next round of women’s ready-to-wear shows. The collection which features jewelry, sunglasses, shoes, bags and a trolley will be available in around 140 stores worldwide and online from October 4.

Describing the collection as “unabashedly glamorous, precious and playful”, H&M has said that it will epitomize Dello Russo’s “taste for ornamentation” and provide unique accessories at an affordable price. The collection will include jewelry, bags, sunglasses, shoes and, in an unsurprising move for those familiar with Dello Russo’s outlandish style, a trolley.

Dello Russo is currently fashion editor at large and creative consultant for Vogue Japan, having previously served over 12 years as fashion director of Vogue Japan. She has achieved worldwide recognition for her flamboyant personal style.

This will be the first time that H&M has collaborated with a fashion director, a move which Dello Russo has described as an “important evolution in fashion”. She said: “I am both thrilled and humbled to be the one chosen to lead it. I wanted to create precious accessories that are impossible to find. As a stylist I know accessorization is essential: it is the personal touch to any outfit. With these pieces everybody can have fun, turning an ordinary day into a fantastic fashion day.”

Margareta van den Bosch, creative advisor at H&M, said: “Anna has a fantastic eye and a strong taste, apart from being a veritable fashion icon. She produced an extravagant range of accessories that will get H&M customers and everyone in love with fashion excited. The collection is a celebration of excess, fantasy and decoration.”

Images released today suggested the collection would be heavy on gold and turquoise, which were used on heavily embellished minaudieres, as well as bangles and necklaces.

Posted in Brand, Collaborations, News, Retail, accessories, ladies | No Responses »

John Lewis trials virtual fashion mirror

Thursday, May 3rd, 2012

Department store operator John Lewis has begun trialling a virtual fashion mirror at its flagship department store in London.

The 6ft by 3ft John Lewis StyleMe mirrors, developed by technology specialist Cisco, in-conjunction with C-instore, Aitech and The Team, each have cameras to capture shoppers’ body dimensions and position.

The virtual changing room allows customers to see how they look in an outfit without getting changed and saves time by providing access to hundreds of fashion items in one location, the company said.

The virtual mirrors superimpose clothing over the customer’s on-screen image.

The Virtual Fashion Mirrors also allow shoppers to create a virtual collection which they can opt to have emailed to them, including images of their selected items and the QR codes, which link to johnlewis.com. Shoppers can then share their new look with friends and family via social networking sites such as Facebook and receive feedback before purchase.

Andrea O’Donnell, commercial director at John Lewis, said: “We strive to have a market leading approach to innovative new technology and providing our customers with the very best shopping experience. We think our virtual fashion mirrors will be a lot of fun for our customers and we hope they will enjoy experimenting with them, as much as we have.”

The virtual fashion mirrors will be in the women’s wear department on the first floor of John Lewis Oxford Street for six weeks, from 20 April.

The mirrors will be a permanent feature in the retailer’s first flexible department store, which opens in Exeter this autumn, if the trial is successful.

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

American Eagle Outfitters Q1 Comps Rise, stock spikes

Thursday, May 3rd, 2012

American Eagle Outfitters, Inc. raised its first-quarter guidance today (May 3), citing better sales and less promotional activity.

The Pittsburgh-based retailer, which will report first-quarter results May 23, said net sales for the three months grew 18 percent to $719 million compared with $610 million last year. Comparable store sales grew 17%, including sales from AEO direct. Analysts expected the company to post revenue of $653.89 million for the first quarter.

Based on stronger than expected sales and less promotional activity, the company is raising its first quarter earnings expectation to $0.18 to $0.20 per share, compared to the company’s previous earnings guidance of $0.08 to $0.10 per share. In the first quarter of last year, American Eagle reported earnings of $0.14 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $0.10 per share. Investors applauded the news, driving the stock up 16.7 percent to $20.88.

“The team delivered on our near-term priorities of driving a competitive top line and improving margins. We experienced broad-based strength in our spring merchandise selling, which enabled us to pull back on full-scale promotional plans,” said chief executive officer Robert Hanson. “Looking ahead, our larger goal is to build upon our capabilities to deliver consistent profitable growth.”

For fiscal 2012, the company expects earnings in a range of $1.06 to $1.12 per share, which assumes comparable store sales growth in the low- to mid- single digit range. Analysts expect the company to earn $1.07 per share for the year.

American Eagle Outfitters gapped open sharply higher Wednesday and is trading at $20.22, up $2.33 or 13.02%. The stock has been rising for the past 3 weeks and has set a new high for the year.

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