June 20th, 2012

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Children’s Place Retail Stores COO Eric Bauer Leaves

Wednesday, June 20th, 2012

Specialty apparel retailer the Children’s Place Retail Stores, Inc. said that its Chief Operating Officer Eric Bauer has left the company effective June 19, 2012. President and Chief Executive Officer Jane Elfers will resume oversight of the company’s supply chain, store operations, finance, information technology and real estate functions.

Bauer, aged 49, has been COO of Children’s Place since May 2011. Bauer has more than 25 years of broad-based retail experience. Most recently, he spent eight years with Gap, Inc. (GPS), culminating in his appointment as executive vice president, brand operations – chief operating officer, for GAP North America.

Prior to joining Gap, Bauer served as chief financial officer and executive vice president of administration at Tickets.com, Inc., a publicly-held ticketing services and software technology provider for live-event venues, from September 2000 to September 2003.

Bauer began his career as a credit analyst with Banque Arabe et Internationale D’Investissement and subsequently held positions of increasing responsibility with KPMG Peat Marwick, International Marketing Associates, Pepsico Corporation’s Taco Bell Division and Choice Hotels International.

Commenting on Bauer’s departure, Elfers said, “We thank Eric for his contributions and wish him well in his future endeavors.”

In mid-May, New Jersey-based Children’s Place reported a 19 percent decline in profit for the first quarter, as higher expenses and restructuring charges offset an increase in sales.

Net income for the first quarter was $23.59 million or $0.96 per share, down from $29.08 million or $1.10 per share in the prior-year quarter. Net sales rose 2 percent to $438.51 million from $430.81 million in the same period last year.

Children’s Place undertook several actions during the first quarter to reduce operating costs going forward. This includes consolidation of U.S. distribution centers, streamlining of its field workforce and restructuring corporate headquarters, which is expected to result in annual savings of about $9 million.

In Wednesday’s regular session, PLCE is trading at $45.21, down $0.53 or 1.16 percent on a volume of 13,844 shares.

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

H&M Group Q2 Profit Rises

Wednesday, June 20th, 2012

Hennes & Mauritz AB Wednesday reported nearly 23 percent increase in profit for the second quarter, as the company’s sales were resilient despite the prevailing economic headwinds.

Profit for the second quarter increased to 5.22 billion Swedish kronor ($0.75 billion), or SEK 3.15 per share, from last year’s 4.26 billion kronor or SEK 2.57 per share. Earnings per share grew to 3.15 kronor from 2.57 kronor.

Sales including VAT grew to SEK 36.95 billion from SEK 32.4 billion in the prior-year quarter. Sales excluding VAT was up 15 percent year-over-year to SEK 31.66 billion.

H&M Group’s sales including VAT grew 12 percent in local currencies in the second quarter. Sales in comparable units increased 2 percent.

H&M reported a 20 percent increase in sales in the UK at 2.75 billion kronor, and in the U.S., sales increased 40 percent to 3.22 billion kronor. Even in debt-ridden countries such as Greece and Spain, the fashion house posted higher sales.

In the preceding first quarter, H&M’s profit grew just under 5 percent in spite of a sales increase of 13 percent, as the company’s decision to not increase prices to offset higher purchasing costs squeezed its margins.

Karl-Johan Persson, CEO, commented, ”The year started well and the positive trend continued in the second quarter. In the second quarter we saw strong sales and profitability development, with a profit increase of 23 percent. The spring collections have been well received by our customers as shown by our increased market share in a fashion retail market that continues to be challenging…”

Moving ahead, the company plans to open around 275 new stores net during the full-year. H&M continues to open new stores in all current markets and it will add five new markets during the year: Bulgaria, Mexico, Latvia, Malaysia and Thailand. In addition, online sales will be launched in the autumn in the US, the world’s largest online market.

Further, H&M intends to open stores in several new markets in 2013.

H&M said a completely new independent chain of stores will open next year under the name “& Other Stories.”

The stock is currently adding 3.26 percent at 237.90 kronor on a volume of 560,331 shares.

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

Zumiez buys European retailer Blue Tomato for EUR59.5m

Wednesday, June 20th, 2012

Action sports apparel and footwear retailer Zumiez Inc has confirmed the acquisition of European snow and skatewear business Blue Tomato for EUR59.5m (US$75m) in a deal seen as a stepping stone to international expansion.

The total purchase price for Blue Tomato will be EUR 59.5 million (USD 75 million), subject to certain pre-closing and post-closing adjustments. In addition to the purchase price, the agreement provides for an additional EUR 22.1 million of contingent future payments based upon achieving certain performance objectives related to growth over the next three years.

The acquisition, which will be funded by Zumiez’s existing cash balances, is projected to close prior to the end of the second quarter of 2012. A portion of the contingent future payments are to be in the form of Zumiez stock.

Founded by former European Snowboard champion Gerfried Schuller in 1988, Austria based Blue Tomato operates one of Europe’s largest action sports ecommerce websites www.blue-tomato.com, which is available in 14 different languages. It also has 5 stores in Austria.

The retailer sells a mix of branded snow and skate hard goods, apparel, footwear and accessories, and saw sales rise 27% in the year to 30 April to EUR29.4m. Around 75% of this was generated through ecommerce. Its net income for the year was EUR3.5m.

“We have built the leading action sports retail company in Europe and now we will be a part of the leading action sports retailer in the United States,” Blue Tomato’s Schuller said.

“Joining forces with Blue Tomato represents the next step in our strategic plan to build the leading global action sports retail business,” Rick Brooks, CEO of Zumiez, said in a statement.

Adding: “The similarities between each organisation’s culture and operating philosophies give us great confidence we can successfully leverage our combined expertise to selectively expand Blue Tomato’s European footprint and strengthen our foundation to support future international development.”

Blue Tomato will continue to be headquartered in Schladming, Austria and senior management led by Gerfried Schuller will continue in their current roles.

Zumiez, which operates 459 stores in the US and Canada, also raised its guidance based on better-than-expected sales, saying it now expects second quarter sales of $134m to $136m, including $2m from Blue Tomato. Including acquisition costs, net income is seen at $0.04 to $0.06 per share.

Zumiez shares hiked to a four-year high Tuesday before closing at $41.16, up $1.79 for the day.

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

Olsen sisters launch collection in UK

Wednesday, June 20th, 2012

Mary-Kate and Ashley Olsen’s womenswear line StyleMint Collection is now available in the UK, via stylistpick.com.

The talented twosome, whose label The Row picked up the Womenswear Designer of the Year Award at this month’s CFDA Awards, have brought the line across the pond having secured fans such as Rachel Bilson, Chloe Moretz and Emma Roberts back home.

Already the creative minds behind no less than four other line – The Row, Elizabeth and James, Textile Elizabeth and James and Olsenboye – the twins aim to offer stylish jersey pieces, from T-shirts to dresses, at affordable prices.

The StyleMint concept is the brainchild of Mary-Kate and Ashley and US entrepreneurs Josh Berman and Diego Berdakin. Started in 2011, stylemint.com requires shoppers to register as a member before undertaking a quiz to establish their style preferences; they then receive tailored monthly shopping recommendations.

Similarly, stylistpick.com offers style suggestions based on quiz answers and hand-picked by their team of stylists – who include Grace Woodward and Louise Roe. The site already includes an exclusive range of shoes designed by Cheryl Cole, as well as a large range of other clothing and accessories.

Previously, British-based fans of the Olsens’ designs have only been able to buy their main line, The Row, which sees cashmere jumpers sell for a hefty £1,000, and bags upwards of £3,000.

Posted in Apparel, Brand, Collaborations, Designer, E-tail, News, ladies | No Responses »

Mexico, Canada to join Trans-Pacific trade talks

Wednesday, June 20th, 2012

Mexico and Canada have been invited to join the US and eight Pacific Rim nations in the multi-lateral Trans-Pacific Partnership (TPP) talks which are working towards trade agreement in the Asia-Pacific region.

Negotiations between the other partners, who include Vietnam, Brunei, Chile, New Zealand, Singapore, Australia, Malaysia and Peru, have been underway since 2010.

The TPP is the first regional agreement in which the US will participate in Asia, and is a key element of the Obama Administration’s efforts to boost US jobs by increasing exports.

The TPP countries have so far completed 12 rounds of negotiations, with the nine countries claiming to have made “solid progress.”

However, US manufacturers, retailers and importers are divided over textile, apparel and footwear rules in the trade pact.

Broadly speaking, US fibre and textile groups want to uphold the yarn forward rule of origin, which requires all the materials that go into a garment to originate and be assembled in a TPP country to receive tariff-free treatment.

But American retailers, apparel brands, manufacturers and importers believe the rule is too restrictive, hinders new trade and investment in the sector, and renders most existing trade ineligible for preferential tariff treatment under a free trade agreement.

There are also concerns that the addition of two new participants will complicate discussions and draw out the timeframe for a successful conclusion to be reached.

The next round of negotiations is scheduled to take place from 2-10 July in San Diego, California.

Posted in Apparel, Media, News, Operations, Retail, Sourcing | No Responses »

J Crew boss meets with landlords as he looks for London stores

Wednesday, June 20th, 2012

US casualwear brand J Crew boss Mickey Drexler has flown over from the states to host a breakfast meeting with UK landlords and agents this morning as he plots store openings in London.

Kicking off minutes ago, Drexler is understood to have organised the briefing at a West End hotel in London, and invited property owners and agents.

A J Crew spokeswoman called the event “very informal” but declined to give further details.

J Crew, a favourite of Michelle Obama, has been eyeing London sites for some time as it seeks to expand out of North America, where all its 238 stores are located.

The retailer plans to launch its first overseas presense in the autumn in department stores Hong Kong and Beijing.

J Crew notched up revenues of $2bn last year and already ships to 103 countries through its online offer.

The retailer hired property agent Harper Dennis Hobbs to seek out stores for it in the capital.

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