May 14th, 2012

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William Fung Named Group Chairman at Li & Fung

Monday, May 14th, 2012

Li & Fung, the Hong Kong-based multi-national design, sourcing, and distribution group, has named William Fung group chairman and executive director.

The company said in a statement today he will replace the current chairman Victor Fung, who has held the post for 23 years, and who will continue as a non-executive director and assume the title of honorary chairman.

Spencer Fung, who joined the group in 2001 and who is Victor Fung’s son, has been named group chief operating officer. Previously, he was president of LF Europe, managing the group’s European distribution business.

“The appointments are in accordance with plans we unveiled last year to manage even more effectively our diverse and fast-growing business across the world”, said William Fung. He called Victor Fung’s leadership as group chairman “visionary” and said that during his tenure, the group’s turnover increased 125 times to $20 billion in 2011.

The statement added that Bruce Rockowitz, group president and chief executive officer of Li & Fung Limited, is spearheading the group’s latest three-year plan, which calls for the company to more than double its core operating profit to $1.5 billion by 2013.

“We now have in place an organizational structure to confidently meet the declared targets and grow across our three global networks of trading, logistics and distributions,” Rockowitz said.

In further changes, Dow Famulak will replace Spencer Fung as president of LF Europe, but he will continue as president of the DSG group of companies, a dedicated sourcing group that services Wal-Mart globally.

Famulak will also continue to lead the development of LF Beauty, the group’s health, beauty and cosmetic business, which oversees product development, sourcing, and supply chain operations for its clients.

The statement added that, going forward, Victor Fung would concentrate on growing the holdings of the Fung family, including the publicly-listed Trinity Limited and Convenience Retail Asia Limited, as well as privately-held Hang Ten Group Holdings Limited and LiFung Kids (Holdings) Limited and other portfolio investments.

Fung also plans to devote more time to guide the development of Fung Global Institute, a Hong Kong-based non-profit economic think tank and business-learning institute that provides Asian perspectives on critical global issues, and to work on the family’s charitable foundations.

Hobbs reports 7.4% increase in turnover despite challenging market conditions

Monday, May 14th, 2012

Womenswear retailer Hobbs has posted EBITDA up 4.9% to £15m ($24m) full-year to January 28 2012 despite a “challenging” market.

The chain, which sells the NW3, HobbsLondon, Hobbs Unlimited and Hobbs Invitation sub-brands said that turnover grew 7.4% to £112.2m ($180.3m).

Hobbs chief executive Nicky Dulieu said: “The Hobbs brand and fashion labels provide our customers with affordable contemporary British designed collections and high quality fabrics, all with the implicit reassurance of craftsmanship and attention to detail. 2012 is a challenging year for all retailers but we are passionate in the belief that we have a strong and differentiated offering for our customers.”

Hobbs said that its gross margin remained robust in a highly promotional and cost inflationary environment because of the benefits of scale.

During the full-year period, the retailer secured £13.3m ($21.4m) of investment from its private equity backer 3i and completed a £32.5m ($52.2m) external refinancing deal with Barclays and the Co-operative bank.

At the time of securing the investments, Hobbs said it would use this funding to increase the footprint of its stores in order to house its new Hobbs Invitation range, which it launched earlier this year, as well as expanding its presence internationally.

Earlier this month Hobbs said it was set to appoint corporate advisor PricewaterhouseCoopers to look at growth opportunities for the business over the next two years including the launch of local language websites and possible international store openings.

Francesca’s Holdings Terminates CFO Gene Morphis

Monday, May 14th, 2012

Women’s specialty retailer Francesca’s Holdings Corp.  said Monday it has terminated the employment of Chief Financial Officer Gene Morphis. The company said Controller Cynthia Thomassee will serve as interim CFO while it conducts a search for a new CFO.

The employment termination came after Morphis was found improperly communicating company information through social media. This came to light after an investigation was conducted with the assistance of outside counsel on the incident that occurred on Friday.

“We acted immediately on Friday afternoon when we first became aware of the matter and have moved swiftly to replace Mr. Morphis based on the findings of the investigation. We appreciate Cindy stepping into the CFO role on an interim basis as we conduct a search for a permanent replacement,” Chairman Greg Brenneman said in a statement.

Thomassee has most recently served as Francesca’s Controller since 2007 and as vice president of accounting since 2010.

Meanwhile, Morphis has served as Francesca’s CFO since October 2010. He came to Francesca’s after serving as CFO of David’s Bridal from March 2006 to September 2010. Prior to that, he served as the CFO of The Rowe Companies from 2002 to March 2006.

Morphis also served as CFO of Client Logic from 1999 to 2001, CFO of Stream International, Inc. from 1995 to 1999, and as executive vice president and CFO of CVS Caremark Corp. from 1992 to 1995. He also held various executive positions at Zales Corp., American Woodmark and Holiday Inns.

“Francesca’s has delivered consistent, high-quality results for customers and public investors. We are disappointed by this situation but we expect our executives to comply with all Company policies,” Brenneman added.

Additionally, the company raised its earnings guidance for the first quarter to a range of $0.17 to $0.18 per share from the prior forecast of $0.14 to $0.15 per share. It also anticipates same-store sales to be above its prior outlook of high-single-digit increase.

On average, 10 analysts polled by Thomson Reuters expect the company to report earnings of $0.15 per share for the first quarter. Analysts’ estimates typically exclude special items.

Houston, Texas-based Francesca’s, which debuted on the Nasdaq in July 2011, offers a diverse mix of apparel, jewelry, accessories and gifts for women aged 18 to 35 years, and opened its first boutique in 1999.

Francesca’s is majority-held by private-equity firm CCMP Capital Advisors Llc, which in February 2010, acquired a controlling interest in it. Even after the IPO, CCMP continues to hold a 65 percent stake in the company.

FRAN closed Friday’s regular trading session at $24.02, down $3.55 on a volume of 5.70 million shares.

Kurt Geiger signs long-term deal with Manolo Blahnik

Monday, May 14th, 2012

Premium footwear retailer Kurt Geiger is teaming up with footwear designer Manolo Blahnik to create and manage boutiques within the footwear departments it operates in Harrods and Liberty.

Kurt Geiger operates the footwear departments in both Harrods and Liberty, and launched a boutique with Manolo Blahnik in Liberty in February. It is the first time that Manolo Blahnik will be sold in Harrods.

The designer’s autumn 12 collection will launch in a personalised boutique in the London Knightsbridge retailer in July.

“We are extremely excited and privileged to be working with Manolo Blahnik, one of the world’s most inspired shoe designers,” said Kurt Geiger chief executive Neil Clifford. “The collections are captivating and these new boutiques will make a truly fantastic addition to the experience offered in Kurt Geiger’s luxury shoe concessions in Harrods and Liberty.”

Prior to opening the boutique in Liberty in February, Manolo Blahnik operated just one store in the UK in Chelsea.

“The Liberty opening in February has been very successful and with Harrods being a breathtakingly beautiful store full of incredible heritage, seeing my shoes there in the next couple of months will be a special moment,” said Blahnik.

Kurt Geiger has 63 stores worldwide, 112 concessions within the UK and Europe’s major department stores and retails footwear via its website Kurtgeiger.com.

YGM Trading Names New CEO of Aquascutum

Monday, May 14th, 2012

YGM Trading, Aquascutum’s new Hong Kong-based owners, has named Tim Dally chief executive officer of the brand, which will remain based in London.

YGM finalized its purchase of the U.K. arm of Aquascutum last week, buying the brand name and assets for 15 million pounds, or $24.2 million at current exchange.

The administrators for Aquascutum, FRP Advisory LLP, said they are continuing to deal with interested parties regarding a sale of the Aquascutum factory in Corby, England. They said discussions are also taking place in relation to the Aquascutum concessions in Spain and Canada.