August 15th, 2012

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Banana Republic enlists Narciso Rodriguez

Wednesday, August 15th, 2012

American retailer Banana Republic has announced that designer Narciso Rodriguez will begin a new design advisory role with the company as part of efforts to build upon the strengths of the brand.

The US-based designer will work in partnership with Banana Republic’s Executive Vice President of Design and Creative Director, Simon Kneen, to help improve the brand’s offering, starting with the autumn/winter 2013 collection.

The hope is that Rodriguez will add a fresh and unique perspective to further Banana Republic’s stylishly relevant positioning, as well as contribute to an already strong design and product development team.

“At Banana Republic, we are committed to delivering modern, stylish work wear to our customers,” said Jack Calhoun, President of Banana Republic. ” Narciso’s expertise will be a great complement to Simon’s strengths and to our incredible design team.”

Rodriguez will start his newly-created role on August 20.

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Abercrombie and Fitch Q2 Profit Tops Estimates

Wednesday, August 15th, 2012

Abercrombie and Fitch Co. Wednesday reported a lower profit for the second quarter, but above estimates, amid a modest growth in sales. The casual apparel retailer backed its full-year earnings view issued earlier this month. The shares are trading higher by 7.9 percent.

Mike Jeffries, ANF’s CEO, said, “The second quarter results we are reporting today are disappointing and below our expectations coming into the quarter. In particular, we saw a further deceleration in the trend in our international stores, while our U.S. chain stores also comped negatively for the quarter for the first time since 2009.”

Net income plunged to $15.52 million or $0.19 per share from $32.03 million or $0.35 per share in the prior year. On average, 30 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts’ estimates typically exclude special items. Net sales rose 4 percent to $951.41 million from $916.76 million. Analysts expected revenues of $993.98 million.

Including direct-to-consumer sales, U.S. sales decreased 5 percent to $648.0 million, while International sales climbed 31 percent to $303.4 million. Total company direct-to-consumer sales, including shipping and handling, increased 25 percent to $127.7 million.

Comparable store sales decreased 10 percent, with a 11 percent drop for Abercrombie & Fitch, 10 percent decline for abercrombie kids, and 10 percent decrease for Hollister Co.

By brand, Abercrombie & Fitch generated $362.5 million, abercrombie kids $76.3 million and Hollister Co. $485.6 million. Further, the retailer backed its full-year earnings view issued earlier this month, which was scaled down due to a lower sales trend than previously projected.

The company expects full-year earnings per share of $2.50 to $2.75. The projection assumes comparable store sales decline of 10 percent for the second half of the year, as well as the impact of a stronger US dollar and an increase in the effective tax rate. While announcing its first-quarter results, the company had forecast earnings per share in a range of $3.50 to $3.75 for the year. Wall Street looks for full-year earnings of $2.56 per share, on sales of $4.40 billion.

On August 14, the Board of Directors declared a quarterly cash dividend of $0.175 per share. The board also increased the existing share repurchase authorization by ten million shares, bringing the shares available for purchase to 22.9 million shares, as per the share repurchase authorization.

Abercrombie & Fitch said it expects to open 30 international Hollister Co. chain store in fiscal 2012 compared to a previous expectation of close to 40 stores. The company also plans a pause in new flagship store commitments, other than a planned Shanghai location. These plans will be discussed at a strategic update today.

ANF, which closed at $32.33 on Tuesday, is adding 7.9 percent in pre-market trading at $34.89.

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H&M’s July sales up 11 percent

Wednesday, August 15th, 2012

The H&M Group has released its sales figures for July 2012. During the month total sales, including VAT, climbed 11 percent compared to the same month last year. Comparable sales – which comprise stores and the internet and catalogue sales which have been in operation for at least one financial year – rose by 2 percent.

Bank of America Merrill Lynch analyst Richard Chamberlain said that markets like Germany and Sweden were affected by cooler, rainy weather during the month.

“The weather only warmed up toward the end of the month, when more transitional rages were introduced,” said Chamberlain. ”In addition, there was a negative calendar effect in July with the loss of a Friday and Saturday and the addition of a Monday and Tuesday. Last year many of H&M’s customers would have been paid on Friday 29th July 2011 thus providing them with spending power for the weekend at the end of the month.”

As of 31 July, the total number of stores amountedto 2,603 compared to 2,306 stores on 31 July last year.

H&M Hennes & Mauritz, founded in Sweden in 1947, is a multinational retail clothing company, known for its fast-fashion for men, women, teenagers and children. The company operates in 44 countries including franchise markets.

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Under Armour sourcing executive Janet Fox resigns

Wednesday, August 15th, 2012

Janet Fox, the senior vice president of sourcing at performance apparel and footwear specialist Under Armour, is to leave the company later this month, it has been revealed.

Fox “has resigned from the company to pursue other interests,” according to a Securities and Exchange Commission filing yesterday (14 August), with her resignation coming into effect on 24 August. Under Armour said the move means it is now evaluating “the organisational structure and management needs of this area.”

In the meantime, chief supply chain officer Jim Hardy will take on Fox’s responsibilities overseeing the firm’s apparel sourcing operations. Hardy was named chief supply chain officer in April this year with responsibility for “strategically guiding Under Armour’s rapidly growing supply chains locally and internationally.”

Fox joined Under Armour in March 2011 after a 29-year career at department store retailer JC Penney.

Under Armour last month raised its full-year operating profit expectations after recording strong second quarter growth helped by the success of its footwear range. Net profit increased 7% to reach US$7m over the three months ended 30 June as revenue surged 30% to $369m.

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Collective Brands shareholders to vote on sale

Wednesday, August 15th, 2012

Collective Brands’ shareholders will vote on whether to approve a US$2bn deal that will see the company be sold to Wolverine Worldwide and two private equity firms next week.

Collective Brands’ shareholders will vote whether to accept the deal which will pay US$21.75 a share on 21 August.

As part of the deal, Wolverine Worldwide will take on Collective Brands Performance + Lifestyle Group, which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands.

Meanwhile, private equity firms Blum Capital and Golden Gate will jointly acquire the operations of Payless Shoe Source and Collective Licensing International, which will operate as a standalone entity.

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Arcadia launching Kardashians’ fashion line in UK

Wednesday, August 15th, 2012

Sir Philip Green’s fashion retail giant Arcadia has confirmed that it has teamed up with Jupi Corp and reality TV stars the Kardashian sisters to launch the fashion brand owned by the US reality TV stars Kim, Khloe and Kourtney Kardashian to the UK. under its Dorothy Perkins brand.

The Los Angeles-based trio, currently stock their collection in the US in department store chain Sears, and the range comprises of denim, accessories, shoes and homeware, and it recently added that optical glasses would be added to the line.

From November, the collection will be stocked in more than 250 Dorothy Perkins stores throughout the UK, including eight ‘shops in shops’ within BHS.In addition, the line will be also be sold online at dorothyperkins.com and internationally to thirteen further countries via franchise stores including Turkey, Thailand, Malaysia, and Indonesia.

The collection will be launching with a pre-Christmas push and will feature more than 100 pieces from the autumn/winter 2012 ready-to-wear clothing and handbag collections, with footwear to follow in early 2013.

Arcadia Group owner Green, who spearheaded the deal, said: “Having reviewed the product with the team a few weeks ago, I felt that there was an excellent fit for Dorothy Perkins. I believe our customers will love the fashion looks, they passionately follow celebrity lifestyle, and the Kardashian sisters rank top when it comes to whom they relate to in the fashion stakes.”

Commenting on the partnership, Kim, Kourtney and Khloe added: “We’re looking forward to expanding our line and making Kardashian

Kollection available to so many more people. We pride ourselves in having a line that is affordable and yet of great quality and we’re excited to bring it to new territories.”

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