May 16th, 2012

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Talbots and Sycamore Partners extend takeover talks

Wednesday, May 16th, 2012

US women’s wear retailer The Talbots Inc. said that, based on ongoing discussions during the last week, it and private equity firm Sycamore Partners have agreed to extend their exclusivity agreement, while it considers a takeover bid from the private equity firm.

Talks between the two companies which began May 5th had been due to terminate May 15th, but the exclusivity period between the parties on negotiations over Sycamore’s nonbinding proposal has now been extended until 22 May.

Sycamore Partners last week put in a second bid for the retailer, which operates 517 Talbotsstores in the US and Canada. It raised its offer to US$3.05 per share – valuing the company at around $215m. This followed an initial $3.00 per share bid in early December, which the retailer said was”inadequate” and “substantially undervalues the company”.

Talbots has struggled for some time, with fourth-quarter net losses widening to US$53.2m from $2.8m in the same period of the prior year, while sales fell 1.1% to US$289.4m. Full-year net losses reached $111.9m, as sales declined 5.9% to $1.1bn.

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Johnson Banks designs fashion stamps for Royal Mail

Wednesday, May 16th, 2012

Johnson Banks has designed a set of first class stamps for The Royal Mail celebrating ten British fashion designers.

The stamps, which launch today, capture the clothing of designers and brands including Tommy Nutter, Zandra Rhodes, and Alexander McQueen.

The consultancy commissioned fashion photographer Sølve Sundsbø to photograph ten outfits which summed up British fashion.

Models were used and asked to ‘embody the ideal silhouettes of the various fashion eras,’ according to the consultancy which obtained the wears from the designers or their estates, and from vintage stores. The sourcing process took three months.

‘It’s hard to make clothes look interesting if no one is wearing them’ says Johnson Banks creative director Micharel Johnson, who adds, ‘On a tailor’s dummy they look flat and lifeless.’

After a two-day shoot the images were retouched to erase feet and hands, and ‘judicious cropping and retouching’ was used to bring out lines, textures and movement, according to the consultancy.

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Bergdorf Goodman announces renovations, FNO Event and Celebrates 111th Birthday

Wednesday, May 16th, 2012

Bergdorf Goodman will be celebrated its 111th birthday this September. In addition to a massive event during Fashion’s Night Out, the department store is planning several renovations; many of these are for the men’s department.

Bergdorf’s is working on a signicant renovation of the third floor contemporary designer spcae in its men’s store, the first big revamp of the floor since it opened in 1990. The first part of the renovation included the launch of new Lanvin and Prada men’s boutiques at the end of last year. The next phase includes an area for european collections including Givenchy, Rick Owens and Alexander Mcqueen. There will also be shops for Gucci, Bottega Veneta and Etro, along with Yves Saint Laurent, Dries van Noten and Thom Browne, which will be the first men’s boutiques in the US for those brands.

The third phase centers around American and international sportswear and denim and includes brands like Paul Smith, Michael Bastian, Todd Snyder and Billy Reid. There are distinct presentations for jewelry and leather goods as well as a “shoe library” inspired by Villa Mecchi in Milan. Matthew Singer, Bergdorf’s men’s fashion director, said it will have a 1930s-1940s influence with a touch of sixties “mad men.” According to Singer, it will be the destination for shoes for men in New York City. The entire project is scheduled for completion by Labor Day.

**all information from Women’s Wear Daily: Monday, May 14th Issue

Posted in Activewear, Apparel, Brand, Designer, Men, News, Retail, accessories | No Responses »

Abercrombie & Fitch Q1 Profit Plunges; Backs 2012 EPS View

Wednesday, May 16th, 2012

Abercrombie & Fitch Co. said its first quarter net income dropped to $3 million or $0.03 per share from $25.1 million or $0.28 per share a year ago.

On average, 32 analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share. Net sales grew to $921.2 million from $836.7 million in the prior-year quarter. Analysts expected revenues of $951.37 million. Total comparable store sales for the quarter decreased 5%.

Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said, ”While we are disappointed that European sales trends remain challenging in a very difficult macroeconomic environment, we are largely satisfied with our overall performance for the quarter in that context. Our U.S. business, including direct-to-consumer, increased 4% on a comparable basis, on top of a strong performance last year. Our international business comped negatively, but the economics remain strong and we delivered overall international sales growth of 42% including a strong performance in direct-to-consumer… With cotton cost issues now largely behind us, we look forward to strong year over year earnings growth in the back half of the year.”

Based on first quarter trends, the company is now projecting same store sales to be down by a mid-single digit percentage on a full-year basis.

Notwithstanding lower sales expectations, the company continues to expect full year 2012 earnings per share in the range of $3.50 to $3.75, with lower sales offset by a higher projected gross margin rate, lower expenses, and a lower share count at the end of the first quarter. Analysts expect earnings per share of $3.55.

On May 15, 2012, the Board of Directors declared a quarterly cash dividend of $0.175 per share on the Class A Common Stock of Abercrombie & Fitch Co. payable on June 12, 2012 to shareholders of record at the close of business on May 29, 2012.

Additionally, the Board increased the existing share repurchase authorization by ten million shares, bringing the shares available for purchase under its publicly announced share repurchase authorization to 12.9 million shares.

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

Hobbs merchandise and production director steps down

Wednesday, May 16th, 2012

Susan Millin, merchandise and production director at womenswear retailer Hobbs, has left the business.

Millin, who had been with the retailer for four years, stepped down from her role on Monday (May 14) as Hobbs looks to restructure its product sourcing function into one buying team.

A spokesman for Hobbs said: “She [Susan] firmly believes this is the right decision for the business going forward.

“She had also been working on a project to focus on how best to develop our brand presence internationally and fully supports the decision to focus on this via online rather than physical international stores and concessions in the short-term.

“As a result, while Susan believes these are the right decisions for the business, she feels that Hobbs no longer meets her personal career aspirations and so with regret has decided that the time is right for her to leave Hobbs.

“Susan has chosen to step aside quickly so that the business can focus on finding the right person to take the merchandising team forwards.”

Prior to joining Hobbs, Millin was head of merchandising for The Shoe Studio. It is not known whether she has been appointed elsewhere at this stage.

Earlier this week Hobbs reported a 7.4% increase in turnover for the full-year to Janaury 28, 2012 despite a “challenging” market.

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

Richemont posts profits jump

Wednesday, May 16th, 2012

Luxury goods group Richemont said it was cautiously optimistic for the future despite the unstable economic environment as it posted forecast-beating results, driven by strong Asian demand.

The Swiss maker of IWC watches and Cartier jewellery said net profit for the year ended March 31 rose 43% to €1.54 billion. Analysts in a Reuters poll had expected a figure of €1.37 billion on average.

Sales rose 29% to €8.87 billion, beating an average forecast of €8.59 billion, with sales in Asia-Pacific up 46% at constant exchange rates to make up 42% of the group total after several years of strong growth.

Richemont chairman and chief executive Johan Rupert said sales in April were up 29% on last year, or 20% at constant exchange rates, but noted: “We are mindful of the unstable economic environment, particularly in the eurozone.”

However, Rupert said Richemont would continue to invest in manufacturing facilities and new boutiques and was convinced of the company’s long-term prospects. “We therefore look forward to the future with cautious optimism,” he said.

Rivals such as France’s LVMH, handbag maker Hermes , French luxury and retail group PPR and jeweller Bulgari posted upbeat first-quarter results as Chinese buyers flocked to stores in both Europe and Asia.

But German fashion house Hugo Boss warned cautious consumer sentiment in China had slowed growth somewhat, while British luxury group Burberry reported a slowdown in quarterly growth raising fears economic woes are catching up on the industry.

Despite fears the global economy is heading for a slowdown, strong growth in emerging markets, plus a tendency among Asian shoppers to buy luxury goods while on holiday in Europe, have buoyed sales at companies like Richemont and LVMH.

Investors are on tenterhooks for any signs consumers may be keeping a tighter grip on their purse-strings, though.

Richemont, which is controlled by South Africa’s Rupert family, also announced plans to buy back up to 10 million of its ‘A’ shares through the market over the next two years, representing 1.7% of its capital.

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