July 13th, 2012

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Rising menswear sales defy retail gloom in UK

Friday, July 13th, 2012

UK menswear is bucking the dismal retail trend with overall sales in the category rising 3% over the past six months.

Price increases helped boost sales to £4.56bn ($7.04bn) in the 24 weeks to May 13, according to Glen Tooke, client analyst Kantar Worldwide.

The research found that branded menswear sales grew at a higher rate than own label over the period, with total spend on branded menswear up 4% from £1.61bn ($2.48)bn to £1.67bn ($2.58bn). Sales of own labels increased 2% from £2.82bn $4.35bn) to £2.89bn ($4.46bn).

The figures also show that retailers are increasing prices, with the average price of menswear up 9%. The average price of branded menswear rose from £17.36 ($26.81) to £18.86 ($29.13) and the average price of own label grew from £9.45 ($14.6) to £10.26 ($15.85).

However, the total volume sold across menswear fell 6% over the period with own-label sales volumes taking a larger tumble than branded sales. The volume of branded sales fell 4% to 88.7 million units, whereas own-label sales fell 6% to 281.6 million units.

A number of retailers have been performing well, with Burberry, Moss Bros and Asos all recently posting growth in menswear.

At department store chain John Lewis, the branded menswear offer is undergoing an overhaul in a bid to attract a younger customer.

Kate Spade to acquire JV partner’s stake

Friday, July 13th, 2012

Kate Spade New York, the lifestyle brand owned by Fifth & Pacific Companies, has exercised an option to acquire a 51% stake in jointly owned company Kate Spade Japan Co from its Japanese joint venture partner Sanei International Co.

KSJ operates the Kate Spade and Jack Spade businesses in Japan.

The acquisition is subject to a number of conditions, including the completion of financial and other due diligence and the execution of a mutually satisfactory termination agreement, Kate Spade said.

If these conditions are satisfactory, the purchase is expected to be complete in the fourth quarter of 2012. The purchase price is estimated to be between US$45m and $50m, including debt repayment and related transaction fees.

The buyout is not expected to impact the company’s adjusted EBITDA for this year.

John Lewis fashion sales rise 9.4%

Friday, July 13th, 2012

Fashion sales at John Lewis increased 9.4% last week, with customers seeking “retail therapy” following the continuous bad weather.

The retailer said the performance was mixed across categories. Nursery and babywear and women’s accessories were among the products most in demand.

Overall sales climbed 15.3% to £71.6m last week and online sales rose 45%.

John Lewis buying director, home, Paula Nickolds said: “The continued miserable weather, coupled with the third week of a successful Clearance, saw customers heading to our shops for some retail therapy.”

The retailer said that the vision category “continued its strong run as the Euro 2012 trade seemed to be replaced by a building anticipation of the London 2012 Olympic and Paralympic Games”.

Sports Direct takes majority stake in Flannels

Friday, July 13th, 2012

UK sportswear retailer Sports Direct, controlled by Newcastle United owner Mike Ashley, today (13 July) announced the acquisition a majority stake stake in the Manchester-based luxury and designer fashion group Flannels.

Sports Direct is taking a 51pc stake for an undisclosed sum. Flannels will be incorporated into Sports Direct’s premium lifestyle division along with Cruise and Van Mildert.

The mini-chain was founded in 1976 by Neil Prosser in Knutsford, Cheshire. He retains a 49pc stake remaining a significant investor in Flannels and will remain managing director.

Flannels has nine shops in Manchester, Leeds, Liverpool and Birmingham and last year it was restructured after entering a company voluntary arrangement.

Sports Direct chief executive Dave Forsey said: “Flannels is a fantastic business and a perfect fit alongside Cruise and Van Mildert within our Premium Lifestyle division… We look forward to working with Neil and his team to build an even stronger business over the coming years.”

Last year Sports Direct took a controlling stake in Sir Tom Hunter’s USC and Cruise clothing chains.

Calvin Klein Underwear names Reyes head of global design

Friday, July 13th, 2012

Calvin Klein Underwear, a division of the Warnaco Group, has appointed apparel designer Brian Reyes as vice president and head of global design.

Leading the global design team, Reyes will be responsible for developing all of Calvin Klein Underwear’s products for men and women. He will report to Bob Mazzoli, chief creative officer of Calvin Klein Underwear.

“He is an accomplished and creative leader who will serve as a great inspiration for our own talented designers, ensuring that great design leads the process by which the Calvin Klein Underwear brand extends its long-standing leadership position,” said Mazzoli.

Martha Olson, group president, added: “His addition to the team will heighten our focus on the consumer as we build on Warnaco’s commitment to be brand, product and consumer focused in everything we do.”

Reyes started his career at Polo Ralph Lauren, and went on to work at fashion houses Michael Kors, Oscar de la Renta and most recently TSE Cashmere.