Fashion publisher Emap sees share rise
Shares in Emap, the troubled publisher of FHM, jumped after revealing it has hired investment banks to review all options for the company, including a possible sale. The company has hired Citi and Lazard to conduct the review which comes after Emap said it received a number of approaches for parts of its business. The news comes follows the unexpected resignation of chief executive Tom Moloney. The company said today that it is still searching for a new head.
Analysts believe that Emap, which owns a variety of business-to-business publications as well as consumer brands like Heat magazine and the radio stations Kiss and Magic, would be an attractive break-up target for private equity investors because it is clearly divided into three different businesses with strong decent levels of cash. Shares in Emap rose as much as 9pc in early morning trading.
www.emap.com
27 July 2007
Biba finds new investor
Biba, the quintessentially British fashion label made popular in the 60s, has found a new stakeholder. Manny Mashouf, chairman and founder of the fashion retailer Bebe, has taken a 60 percent stake, making it an Anglo-American company like Burberry. Biba has been facing a tumultuous season with the departure of creative director Bella Freud after the AW07 collection.
According to WWD, The investment is a personal one for Mashouf, and Biba will remain separate from the Bebe business, said Michael Pearce, chief executive officer of Biba International, who owns the remaining 40 percent of the company. "We had been looking for the right person to help make Biba stronger in every way," Pearce said. "Manny understands the label and what we are trying to do. It was a meeting of minds." Mashouf said in a statement that he was "proud to be involved in a brand with such a unique and authentic heritage."
www.bibaexperience.com
17 July 2007
Kate Moss no longer face of Agent Provocateur
Kate Moss contract as the face of Agent Provocateur has not been renewed. Rumour has it that Moss has been replaced by a younger model, namely Daisy Lowe, daughter of Moss' friend, the musician and designer Peal Lowe.
While British tabloids claimed the model was too old, a spokeswoman said Moss' contract had simply run its course. Agent Provocateur last week stated: “Last year, we enjoyed a collaboration with Kate on the ‘4 Dreams of Miss X' campaign that was inspired by and created for her in collaboration with [director] Mike Figgis, we hope we will have the opportunity to work with her again in the future."
Moss further hasn't seen her Burberry contract renewed. The fashion house instead chose younger faces with 21-year-old Agyness Deyn, and 20-year-old Lily Donaldson to feature in its advertising campaign. Moss reportedly made 30million pounds from her contracts and her Burberry deal is believed to be worth around 1million pounds.
9 July 2007
Hardy Amies controller under arrest
Hardy Amies, the Savile Row couturier and dressmaker to the Queen, last week issued an international arrest warrant for its former financial controller after the apparent theft of more than £350,000 from the business. The most successful couture house in Britain discovered the alleged theft of £352,677 of funds over 2005 and 2006 while undertaking a review of operating costs, including the introduction of stricter internal controls in the business.
The group, which is 49.3 per cent owned by Arev Brands, added that it was “apparent” that the theft was also taking place before 2005. Hardy Amies chairman Andrew Manders stated: “The matter has been reported to the police and this makes it difficult to comment in any detail, but an arrest warrant has been issued for the former financial controller of the company. If there is a positive aspect to this horrible business, it is that the underlying trading position of the business is better than has been previously reported.”
News of the affair came as Hardy Amies announced that losses for the year to December 31 had deepened to £2.1 million, from £1.1 million the previous year. Turnover inched up to £1.2 million, from £1.1 million. Operating losses came in at £1.99 million, with £1.24 million of the loss coming in the first half. It compares with a loss of £1.13 million last time. Hardy Amies was launched in 1946 with its boutique at 14 Savile Row. Famous for dressing royalty and Stanley Kubrick's cast in 2001: A Space Odyssey, Amies, who died in 2003, passed the torch to his then personal assitant, Ian Garlant.
www.hardyamies.com
2 July 2007
Wintour-hater jailed
Fashion writer Peter Braunstein, who fantasized about killing Vogue editor-in-chief Anna Wintour, has been sentenced to eighteen years in jail. The former Women's Wear Daily writer was convicted yesterday of dressing up as a fire fighter, tying up, terrorizing and sexually molesting a former colleague for hours on end.
Braunstein appeared in court under the influence of anti-psychotic medication. His lawyer tried to argue that his psychosis had prevented him from knowing exactly what he was doing, but the prosecution pointed out that he knew enough to arrive at the woman's apartment equipped with chloroform, rope, cough medicine to calm her down, a gun, a knife, a video camera and tape with which he recorded the harrowing event, and latex gloves.
Braunstein was allowed to speak for himself and said the attack was “irrational” and “random”. He claimed he spent some time watching television while she was tied naked to the bed, because “it dawned on me that I did not know why I was entering”.
Braunstein's diary was used as evidence in court. In it he wrote about how he wanted to send Wintour to a hell run by rats. He described himself as “hit-man for God”, exacting revenge on society, and on the fashion world of which he was a part. The jury took less than four hours to find him guilty.
19 June 2007
Liberty set for international expansion
Liberty is planning a major international expansion under the guidance of its new chief executive Geoffroy de La Bourdonnaye. The former Disney and Christian Lacroix executive, who will succeed Iain Renwickas chief executive in July, said one of his top priorities was the international expansion of the iconic British store in the US, the Middle East and the Far East. “The name Liberty is known all around the world, and has not been given justice in terms of its presence in countries like the US and Japan,” he said on Sunday.
De La Bourdonnaye, 50, has been credited with the turnaround at Lacroix. He said it would be priority to return Liberty to profit. His predecessor, Renwick, had managed to cut losses at the company and rescue it from going under. He quit the company after four and a half years in April, when Liberty's chairman Richard Balfour-Lynn said the company needed a different approach, the FT reported.
www.liberty.co.uk
7 May 2007
Bobby's back in fashion
Being arrested for crimes against fashion will no longer apply to London's Metropolitan Police. Their traditional uniform, although unique with its iconic helmet, is hardly the stuff of fashion legends, and hasn't been refreshed in decades. Thankfully an inspired commissioner brought in the London College of Fashion for a little help in the fashion ranks.
The Met thought it was high time to acknowledge that fashion can be given consideration for those wearing public service uniforms, and recruited students from the London College of Fashion to help redesign its uniform for the 21st century – helmets and all.
"We will be working with the London College of Fashion to see how we can retain the traditions of the Met, while ensuring our uniform is fit for 21st century policing," deputy assistant commissioner Steve Roberts said in an Associated Press report. The new designs will be presented to members of the public, police and the Metropolitan Police Authority to garner opinions, and 50 officers will test it.
30 April 2007
High net fashion victims
In a new era of the mega rich, some of the biggest fashion blunders are made by the world's highest earners. As Victoria Beckham recently confessed, she still squirms at the memory of arriving at an A-list party wearing matching leather (Gucci) outfits with husband David Beckham. She stated: “It was the worst outfit I ever wore.” And the photos made tabloid headlines around the world.
The scrutinised eye of the fashion media may agree or disagree on Victoria's bad choice of outfit, however the retired singer has a point. It seems the more money one earns, the more ostentatious the clothes to represent one's wealth. A recent supplement in the Sunday Times stated that for those who have made their wealth in business, fancy dress is the equivalent of a novelty tie. The duller their business, the more flamboyant the fancy dress.
Take Elton John for example, who, for his 50th birthday party, wore a wig and frock resembling a cross between Marie Antoinette and a wedding cake.
New emerging markets such as Moscow, Dubai and of course China show that whilst these exceedingly rich states have everything that money can possibly buy, those who can afford to shop at the most luxurious of brands are not necessarily the most fashionable. You can strut your stuff in the most expensive outfits, but it may mean the fashion police will be hot on your heels. And what can be worse than committing a crime against fashion?
27 March 2007
Galeries Lafayette opens in Dubai
Iconic French retailer Galeries Lafayette is to open its first department store in the Middle East, in the Dubai Mall in Dubai. Occupying 192,000 square feet, it will be the UAE's biggest single store. Philippe Houze, owner and group chairman of Galeries Lafayette, said the move signalled a new phase for the company. “The choice of Dubai is fully in line with our decision to develop into an international chain,” he said. “The next phase may involve Asia – notably Shanghai and Macao.”
The department store, which was founded in 1895 and sells fashion, homeware and food, will be joining the likes of Bhs, Debenhams, Harvey Nichols and US department store Saks Fifth Avenue and will likely fill a niche between the middle and more upmarket stores. This is the group's only other store outside France. The first opened in Berlin in 1996.
www.galerieslafayette.fr
22 March 2007
Fat Face founders set to receive £90m in sale
The founders of Fat Face will be in line to recieve a £90m windfall when the clothing retailer changes hands this month. NM Rothschild, which has been appointed to sell the business, is inviting first-round bids by tomorrow.
The business is expected to fetch in the region of £300m — netting Advent, the private-equity firm that owns a 54% stake in the company, a bumper return. When Advent first bought into the company in 2005 it was worth £100m. Tim Slade and Jules Leaver, Fat Face's original founders, own 30% of the company while the executive management team, including chief executive Louise Barnes and finance director Stuart Owens, control 16%.
The management team is expected to reinvest in the business once it changes hands. It is unclear whether the founders will sell out or reinvest. Fat Face is one of the fastest-expanding retailers in the country. By the end of May it is expected to have about 130 stores. This figure is projected to expand to 190 stores by 2010-11. Turnover is forecast to grow from £111m in the 2006-7 financial year to £214m by 2010-11.
Fat Face is working on a pilot project to sell men's and women's clothing and accessories at the John Lewis store in Cheadle, near Manchester. Four more stores will be piloted this spring and, provided that goes well, John Lewis has committed itself to a 20-store roll-out of the Fat Face brand from spring next year.
www.fatface.com
19 March 2007
What Jane did next
Jane Shepherdson, Topshop's former brand director, is launching a venture capital fund for young designers. The Fashion Enterprise Fund is a joint venture with Jaeger owner Harold Tillman. The fund will split profits between designers, investors and the London College of Fashion. Originally, the LFC had set up the Centre for Fashion Enterprise – the organisation's governing body – in 2003 to support up and coming designers like Marios Scwab, Basso & Brooke and Manish Arora. The goal of the new enterprise is to establish London as a major international player on the fashion scene. “Investors find it notoriously difficult to place a value on a young creative brand,” Tillman told Vogue. He himself is a graduate of the LFC. “London is a hotbed of creativity but starved of funds leading to home-grown talent deciding to fly the nest. We will do all we can to prevent this.” British talents like Alexander McQueen and John Galliano long ago transferred their business and talent to Paris, where they were far better able to develop their gift.
Best Christmas
According to reports, Britain's high street enjoyed its best Christmas for three years, despite the odds of retailers expecting a slow holiday season in the midst of rising interest rates and consumer slowdown. Retail sales volumes leapt by 1.1% in December, official figures showed yesterday, smashing the City's forecast of a 0.5% increase. The sales surge, which was the biggest one-month increase for 18 months and the best December performance since 2003, pushed the year-on-year rate of increase up from 3.1 to 3.7%.
"While a few quarters ago strong sales were happening against a background of heavy discounts, it appears now that consumers are still spending money despite a rising inflation environment," said Audrey Childe-Freeman, an economist at CIBC World Markets. "The overall situation is likely to create further inflation concern at the Bank of England and it makes a further rate hike, possibly in February, very likely."
Paul Clarke, director of retail and wholesale at Barclays business banking, predicted 2007 would see most retailers struggling. "Three interest rate rises in six months will not have done a lot for consumer confidence, and with utilities costs and rent prices remaining high, the coming months may prove tough," "Those retailers who have a good strategy, do their bit for the environment and adopt a multi-channel approach, embracing the opportunities presented by the internet, will undoubtedly fare best in 2007." He said.
Stagnate growth in Irish manufacturing
Irish manufacturing has grown at its slowest pace since August 2005 last month, according to Irish Unison. The NBC Purchasing Managers' Index came in at 51.6 for November, down from 53.2 in October but just above the 50 mark which separates growth from contraction. In the survey, a number of firms stated that marketing campaigns had attracted new work, but even so the rate of new business growth eased for the fifth month in a row and was the weakest since August 2005.
Production continued to increase, with firms linking growth to higher new order levels and the introduction of new product lines. However, in line with the trend in new orders, the rate of growth of output was the weakest for 15 months. The results mirror a similar survey of eurozone manufacturing.
The Irish CSO last month stated that factory gate prices increased by 0.3% in October 2006. This equates to an increase of 0.3% recorded for October of last year. As a result, the annual percentage change showed an increase of 0.1% in October 2006, which compares to an increase of 0.1% in September 2006.
Christmas shopping a pedestrian's delight
London's west-end, one of Europe's busiest shopping district attracting over 40 million shoppers over Christmas, will be pedestrianised for a day of luxury shopping in the run-up to the holidays. On Saturday December 2, the west-end will be cleared of cars and buses to make way for Lapland reindeer, an elf choir and Santa himself. Instead of noise pollution from endless cars and bendy-buses, shoppers can will find stands with hot chocolate and mince pies during the VIP shopping day.
Stores such as Gap, House of Fraser, Marks & Spencer, Debenhams, Penhaligons and John Lewis will be offering free manicures, massages and beauty makeovers, while Levis and Aquascutum will dispense free champagne and Austin Reed, Evans, Ted Baker and Godiva will hand out mulled wine, eggnog and mince pies. Santa and six reindeer will launch the Selfridges Grotto at 11am with assistance from Mrs Christmas and her choir of 20 elves. Visitors to the department stores will then be treated to free hot chocolate, Lindt Lindor chocolates and Krispy Creme donuts, said the Mail on Sunday.
As with the ritual of the Oxford Street Christmas lights, there will be entertainment throughout the day, which ends at 4pm, although shops will stay open until 9pm. London Mayor Ken Livingstone believes that, in the run-up to the 2012 Olympics, London will become even more of a shopping magnet. "This is a recognition that the West End is, more than ever before, promoting London on both a national and a world scale," he said. The VIP Christmas shopping extravaganza takes place from 11am on Oxford Street and Regent Street. Radio station Heart 106.2fm will set up camp at Oxford Circus and play your favourite Christmas music.
www.oxfordstreet.co.uk
12 November 2006
Paris ' pity party
Reading Jerry Oppenheimer's biopic of the Hilton family is making it onto the list of life's guilty pleasures. Or is it? Who wants to read an entire book about Paris Hilton's family and her own empty, superficial life? How much trash can we stand? Paris 's greatest achievement is getting into the hottest club and single-handedly supporting the fashion industry with her shopping habits. Her worst achievement, but the one that catapulted her to instant fame, was her sex video that outsold ‘Gone with the wind”, according to Oppenheimer. The public's obsession with fame and celebrity appears to have created a monster: a selfish, self-absorbed creature who knows nor cares nothing about what is happening in the world around her. In a now infamous interview in the UK , the heiress responded dumbfounded when asked what she thought of Tony Blair. She had no idea who he is. And unlike her partner-in-crime, Nicole Richie, Paris is not a fashion trend setter. Her fashion sense is prefabricated and designed to reveal and is obviously not based on any sense of self. Meanwhile, Richie's ensembles have inspired legions of teens and tweens to emulate her skinny jeans, skull scarves tied as bandeaus and numerous gold accessories.
According to Oppenheimer, we should be feeling sorry for Paris, who was reportedly pushed into this position by her social-climbing mother and maternal grandmother. If he is to be believed, the outing of her sex tape was secretly applauded by her parents as a way to achieve fame. With parents like that, who needs enemies?
Mandolin to discontinue
British fashion chain Mandolin is to be shut down after just one year of business. Owner Alexon, whose other brands include Dolcis, Dash, Bay Trading and Ann Harvey, said the 17 Mandolin stores would be converted into other brand formats or would be sold. “The review indicated that the brand, while still having long-term potential, would need more time and management attention than could be justified in the current retail climate,” the group said in statement. The company could not be reached for comment.
An industry observer told Drapers that the group's shareholders were feeling the strain of a challenging retail climate on Alexon's stable of nine brands. “The business is facing challenges with most of its brands,” he was quoted as saying.
www.alexon.co.uk
10 October 2006
Paul Smith launches Dylan Jones' new book
Last night Paul Smith hosted the launch of Dylan Jones' new book, Mr Jones' "Rules" at his Floral Street shop. "The Rules" is the complete modern guide to being a man in the twenty-first century and aims to give men the best possible platform for advancing in the world, offering the best advice for a multitude of difficult situations.
From dating, new rules regarding work, gambling, style, the sex-wars, and etiquette. "Hopefully this book is that guide - a compendium of cool, a cathedral of gentlemanliness, and a considerable mass of information leavened by a large dose of personal prejudice,"?says Dylan Jones The Rules is available in Paul Smith shops priced £14.99 and within the online shop . Dylan Jones is also the editor of British GQ.
www.paulsmith.com
2 October 2006
Agent Provocateur teams up
Agent Provocateur has joined forces with knitwear specialist John Smedley to create a luxury collection. The collection features of two lines: French Maid and Skater Girl. French Maid consists of a minidress, a scoop-neck sweater and coordinating cotton underwear with black and white frill trim. Meanwhile, Skater Girl consists of a leotard, a short-sleeved top and matching cotton underwear in pink, black and fuschia.
The upmarket lingerie brand is launching the collection mid October in a select number of Agent Provocateur shops in the UK , New York , Los Angeles , San Francisco and Moscow . A spokeswoman for the label said John Smedley had not yet confirmed whether it would be including the collection in two of its own stores. The sale of the collection will be limited to shops and will not be available online, she added.
A major source of inspiration for the line was the “pinup sweater girl”, said Agent Provocateur co-founder Serena Rees. “It's always been a point of reference in the Agent Provocateur vocabulary,” she said. “This partnership with John Smedley has given us the opportunity to put some of those fantasies into reality using their authentic techniques.”
www.agentprovocateur.co.uk
25 September 2006
Out on a Lim
The music and lighting at 3.1 Phillip Lim's SS07 presentation – his first catwalk show - were as serene as the collection itself. Opening with his first foray into menswear, Lim quickly captured a romantic mood for spring with his softly tailored womenswear showing 31 looks mostly in white hues, with a few shots of navy, florals and minimal pattern. Lim can do simple, as demonstrated by a pair of high-waisted, pleated slacks, but he can also do complex: the crepe de chine blouse paired with those pants came with delicate sleeves of pleated tulle.
Lim has a knack for combining the dressy and the casual—take a cotton voile strapless bell dress paired with a men's leather pilot vest, for instance; or a girlish jumper with an attached bodice made of sequins. Is it day or evening? His clients couldn't care less. More so than most young designers working today, Lim knows how fashionable women want to dress. Celebrities such as Camilla Al Fayed packed in the front row and the trying start to the show – a bustle of editors waiting to be given seat numbers in total darkness, was quickly forgotten.
www.31philliplim.com
14 September 2006
Baugur stake in Matthew Williamson
The Icelandic company Baugur has taken a minority stake in British design house Matthew Williamson. The investment will help build the London-based company's retail network and establish a stand-alone accessories business. According to chief executive and co-founder of Matthew Williamson, Joseph Velosa, there is enough funding for two stores, the first of which will be in New York . It will likely open in September 2007. A second store will probably open in Paris in September 2008, although this has yet to be confirmed. Velosa told WWD that the funds would also be invested in a “proper” bag and shoe business. “We'd like to treat it as a separate business, and the plan is to launch it for the fall 2007 season,” he said. Matthew Williamson wholesales to 180 clients worldwide and generates annual sales of about $15.2 million. Baugur has made its investment through its relatively new Venture Business Unit. “The company has been profitable from year one, and we are excited to be part of this next stage in the company's development,” Gunnar Sigurdsson, managing director of UK investments at Baugur, told WWD. Matthew Williamson executives could not be reached for comment. The news appeared to come as a surprise to a Baugur spokeswoman. Thus far, the company has not returned with a confirmation.
www.baugur.com
www.matthewwilliamson.com
11 September 2006
Fashion magnate sees turnover decline
Fashion magnate Richard Caring has seen a dramatic decline in the fortunes of his clothing supply company. Caring, who is worth £300m and loaned £2m to the Labour Party last year, saw his London-based International Clothing Designs firm post a loss before tax of £523,000 for 2005 against a profit of almost £4m for the previous year. The company supplies garments to high street fashion chains such as Bhs, Next, Topshop and M&S. Though operating profit from continued operations increased to £1.5m, Caring’s firm took a £925,000 loss on the disposal of top women’s designer Amanda Wakeley.
Turnover continued to decline: where it was once above the £100m mark, last year it fell to £74.2m, from £85.4m in 2004. Caring, a close friend of retail entrepeneur Philip Green, has dramatically scaled back his business empire in recent years as it feels the impact of an increasingly powerful Chinese textile industry. Many of Caring’s factories are in South East Asia. Leading fashion businesses are also sourcing more of their own clothes, threatening the role of intemediaries such as Caring. International Clothing Designs once had holdings in 17 companies;today only two are listed on accounts held at Companies House.
Baugur to launch House of Fraser takeover
Baugur, the Icelandic investor that owns vast swathes of Britain's high street, is poised to launch its long-expected £350m offer for House of Fraser, the department store group.
The 148p-a-share offer is expected to be announced within days, although sources close to Baugur warned that it could slip to next week. "Things are on track, and there are just documents to be signed. It could slip but Baugur is aiming to launch the bid on Thursday or Friday," said a banker close to the deal.Due diligence has been taking place since the spring. Baugur has teamed up with HBOS, the bank, FL Group, the Icelandic investment company, and Kevin Stanford, the co-founder of Karen Millen, to mount the bid.
If it is successful Baugur will appoint Don McCarthy, the footwear entrepreneur who sold the Rubicon retail group to rival fashion house Mosaic last month, as non-executive chairman. McCarthy is likely to invest in the chain as well. The bid has been a long time coming. House of Fraser announced at the beginning of May that it had received a bid approach and the following month announced that it was in discussions with Baugur over a "potential cash offer" worth 148p a share.
Baugur is likely to use the chain, which was founded in 1849, as a showcase for the fashion brands that it owns or has stakes in. These include Oasis and Coast. House of Fraser has 61 stores and is considering taking space in the massive new White City retail centre in west London. House of Fraser has been hit by the recent downturn in trading. Over the 19 weeks to June 10 like-for-like sales fell by 2.4 per cent. The company blamed this on a cutback in promotional activity. House of Fraser's shares closed on Friday at 140p.
14 August 2006
Leggings drive legwear sales
Footless tights and leggings are all the rage this season, causing sales of legwear to surge. Typically, this segment has remained flat over the past few years, but thanks to new found interest, is rising from the ashes. “Leggings are an easy item that is driving people to the legwear department right now,” Michael Fink, vice president and women’s fashion director at Saks Fifth Avenue told WWD. “It brought such new interest into the whole legwear area.” In the year ended 31 May, women’s legwear sales dropped 2.6 percent to $2.86 billion in the US, reports the NPS Group, a market research firm based in New York. It added that socks gained 2.1 percent to $1.76 billion, but sheer hosiery fell 9.1 percent to $999 million and tights fell 10.9 percent to $103 million. Romaine Sargent, vice president and general manager of Sara Lee Hosiery told WWD, “We were up against some tough circumstances, like Hurricane Katrina and rising gas prices that impacted the economy and took its toll last fall. We started seeing a small turnaround during the holiday season, but then the total category started undergoing a real uptick for spring. Having leggings, as well as opaque tights and over-the-knee socks, on the runway added a lot of interest to the category. As the legging trend is just beginning to hit the mainstream, we’re confident it will continue forward in spring 2007, and possibly beyond.” Sameera Hassan of British high street fashion chain River Island has also noticed the surge in popularity of the legging. “We have seen it emerge as a seasonal trend and are responding to the demand.” She declined to give sales projections or results.
Stores are offering a range of footless hosiery, including brightly coloured and printed versions. Also popular our black leggings paired with sweater dresses, a big trend for fall. According to WWD, anklet socks in light fabrics are also emerging as a popular trend, as are over-the-knee socks paired with heels.
8 August 2006
True Religion Q2 double-digit gains
True Religion Apparel saw earnings for the second quarter ended 30 June rise 15.7 percent to $4.9 million (£2.6 million). Sales soared 39.7 percent to $30.7 million, up from $22 million last year, thanks to the strong sale of premium denim products in department stores. “It’s a much different company than when we were rolling out department stores last year,” chief executive Jeff Lubell said during a conference call. “We truly are in growth mode.” The company is now concentrating on expanding its non-denim range, which includes T-shirts and outerwear and will include jewellery and fragrances in the future. Non-denim currently accounts for only 13 percent of total sales, but True Religion hopes it will eventually catch up to denim. The company also plans to open two more stores this year, one in New York in November and the second in Miami. It has also said that international expansion is a priority. Earnings rose despite a one-off arbitration settlement, with legal costs and interest costing the company $1.9 million. Chief financial officer Charles Lesser said that the second quarter is usually weaker due to the warm weather which interferes with jeans sales. Meanwhile, earnings for the first half gained 40.9 percent to $11.4 million on sales up 57.5 percent to $66.3 million.
www.truereligion.com
8 August 2006
FHM gets makeover
FHM is being revamped, in a fresh attempt to mark it out from the weeklies, which have eroded its readership. An Emap spokeswoman said a wholesale relaunch was overstating the extent of the changes, but that the title would use its monthly frequency to be a more aspirational experience than the weeklies. She added: "The October issue will reflect a refreshed new product, focused on super-serving its core readers. FHM.com will unveil a relaunched site next month."
The news follows Emap's trading update this month, in which the company forecast a downturn in revenue, partly blamed on its men's and motor portfolios. The move also comes just ahead of August's ABC figures, where indications are that the men's monthly market will continue to experience a downturn to the profit of the weeklies. In the last ABCs, FHM sold 500,865 copies per month, down 13.6 per cent year on year, while Zoo was up 8.4 per cent and Nuts was up 11.4 per cent.
4 August 2006
Sigerson Morrison sells majority stake
Luxury footwear company Sigerson Morrison has sold a majority stake to US footwear firm Marc Fisher LLC in an effort to expand the company. The 15-year old company, which started off making bespoke shoes for private clients, currently has two lines and a high-end bag collection. “It’s a hug move for us,” Kari Sigerson, co-founder with Miranda Morrison, told WWD. The duo will remain as co-creative directors of the brand. “We’ve always been our own little independent brand, but it was frustrating for us. We have this great product, but we haven’t had the magic stuff to grow it. There’s always been some aspect we wanted to conquer that we just couldn’t. And now it’s like we’re unlocking that secret room.” Earlier this year, the duo told WWD that it was looking for investors. “It’s been a long and hard road,” Sigerson continued. “We worked for a long time just to mentally prepare ourselves for this type of deal and get all the documents together. Then we did a lot of homework and met with a lot of people, including private equity companies and huge fashion conglomerates. It came down to three incredible offers.”The choice of Marc Fisher, which is headed up by Nine West co-founder Jerome Fisher’s son Marc Fisher, was based on his passion for footwear, Morrison said. “To see them at work with their shoes and hear them talk about their sector of the business made it feel like home,” she said. “The firm also shares our entrepreneurial spirit and respects our DNA.” Sigerson Morrison’s 32 employees are expected to remain with the company and will continue to be based in New York. The first items on the list after the acquisition include expanding the label’s product offering by possibly adding eyewear and fragrance, expanding its retail stores – the company currently has four boutiques worldwide - and opening a flagship in New York. Wholesale will also be boosted; the brand currently wholesales to about 250 locations worldwide, including Harvey Nicholes in London. In addition to adding more staff, the search is on for Sigerson Morrison’s first chief executive. Fisher told WWD that he has always wanted to “get into the better shoe market” when he started his company. “I’ve always loved the Sigerson Morrison brand and found Kari and Miranda to have a great eye,” he said.
www.sigersonmorrison.com
1 August 2006
Alice Temperley named top business woman
London designer Alice Temperley and Bodas founder Helena Boas have been named top business women in the trade magazine Management Today's 35 Under 35 list of young female business talent. Boas' lingerie business was launched in 2000 and Temperley's design are sold in top stores around the world, including Selfridges, Lane Crawford in Hong Long and Saks Fifth Avenue in New York.
What's next for Theyskens
The fashion industry is still reeling from the news that the house of Rochas is to be shut down by owner Procter & Gamble. The brand was much loved by Hollywood beauties and creative director Olivier Theyskens was celebrated as the wunderkind of the fashion world. He joined the house at age 25 and designed critically acclaimed collection season upon season. However, the fashion press now reasons that a talented designer is no guarantee for a commercially sound enterprise. So what will be the Belgian designer's next step? There is speculation that he will resume work on his signature line and look for financial backing for this enterprise. The New York Times even suggested he might join the house of Chloé, which hasn't yet filled the position vacated by Phoebe Philo. The fashion world eagerly awaits his next move.
Vert profits rise
British fashion company Jacques Vert reported a pre-tax profit of £3.7 million for the year ended 29 April. Last year, pre-tax profits amounted to £600,000 as the company dealt with the acquisition of William Baird in 2002. “The year just ended has seen significant progress for the group,” said Chairman Derek Lovelock. “In particular, the resolution of the pension deficit and industrial disease legacy issues marks an important milestone in the group's development. Releasing around £3 million of cash each year previously required to fund these liabilities will facilitate a greater level of investment in our key women's wear brands.”
The company revealed that the retail division had had a tough year, due to the loss of concession outlets following the administration of Allders Department Stores in January 2005. Weak demand in the women's wear sector had also affected the company adversely. The tide appears to be turning however. The first 11 weeks of this fiscal year saw same-store sales gain 4.9 percent, while overall sales rose 8.5 percent. The company said that it continued to work on improving the performance of the wholesale division, concentrating on the development of key markets and the improvement of the supply chain.
www.jacques-vert.co.uk
19 July 2006
Temperley considers sale minority stake
London-based fashion label Temperley is one of several brands to consider selling a stake to a private equity company in order to aid financial expansion. “Private equity is certainly one of the potential sources of funds,” Lars von Bennigsen, Temperley chief executive and husband of designer Alice, told WWD. “The business is growing very fast in all territories, and any investment would be mainly used to speed up our international rollout.” The company currently has stores in London , New York and Los Angeles , and has showrooms in London and New York . Temperley's designs are favoured by Hollywood and London and New York 's beautiful set.
Von Bennigsen said that Temperley would sell a minority stake of 10 to 15 percent. Sales for this fiscal year have been estimated at $28.5 million, up from $16.2 million last year. The company is already in talks with private equity firms, and although Von Bennigsen declined to reveal which ones, he did say he expected the deal to be completed within the next six months. “If we decide to take on a strategic partner, private equity or not, we would probably do so before the year is out,” he said. “We have been approached from many different angles for a while and are now concerned with finding the right fit.”
www.temperleylondon.com
19 July 2006
Dickson to buy Tommy Hilfiger Asia
Dickson Concepts Ltd., which sells Ralph Lauren clothing and other luxury goods in Asia, said it will buy Tommy Hilfiger Asia Pacific Ltd. for $51 million from Dickson Chairman Dickson Poon.
Tommy Hilfiger Asia has rights to the U.S. brand in Hong Kong, Taiwan, Singapore, Malaysia, Macau and China, Hong Kong- based Dickson said in a statement to the city's stock exchange.
Retail sales are rising across Asia on accelerating economic growth and increased employment. Sales rose 14 percent in May in China and by 5.3 percent in Hong Kong, and by 6.7 percent in April in Singapore.
The Malaysian Retailers Association said in May it expects 7 percent growth in 2006.
Dickson Concepts is making the purchase to tap the region's growth, the statement said. Tommy Hilfiger Asia has 89 retail outlets in Hong Kong, Taiwan, China, Singapore and Malaysia and has distribution rights in its territory, it said.
Poon may be selling Tommy Hilfiger to his listed company because he's underwriting a 42 million euro sale of new shares by ST Dupont SA, a French maker of luxury pens and lighters that he also controls, the JPMorgan report said.
7 July 2006
EU and US to fight piracy
The European Union is teaming up with the US in launching a pioneering programme this week to tackle global intellectual property piracy. Measures will include closer customers co-operation, increased collaboration with the private sector and joint enforcement in non EU and US countries, with teams from each country sharing data and surveillance responsibilities.
4 July 2006
Baugur puts rumours to rest, consolidates UK presence
Icelandic retailer Baugur has squashed rumours that it might retract its bid for the House of Fraser department store chain. Nevertheless, the chain’s shares still slipped 3.4 percent as a result of the conjecture. “This is just a scurrilous rumour,” said a spokesman for Baugur. “It is completely false. Due diligence is progressing on schedule.”
In other news, the acquisitive Icelandic concern stepped up its presence in the UK fashion market with the merger of its Mosaic Fashions with Rubicon Retail. In a deal valued at £250 million, the two groups partly owned by Baugur wil merge to create one of the UK’s biggest fashion chains, with 1,700 stores in 27 countries. Mosaic owns brands like Oasis and Karen Millen, while Rubicon controls high street chains like Principles and Warehouse. Derek Lovelock, chief executive of Mosaic said his strategy was “to build a profitable, multi-branded fashion group.” The new, combined group will intensify international expansion with further moves into Europe, Asia and the US, Lovelock said.
Mosaic is the fourth biggest retailer in the UK, with sales of £891 million in the year ended January 2006. It ranks just behind New Look. Arcadia and Marks and Spencer are the number one and two fashion groups in the UK. Last year, Arcadia – which owns TopShop and Dorothy Perkins among others – generated sales of £1.77 billion. The majority stake in Rubicon is owned by chief executive Donald McCarthy, finance director Stefan Cassar and chief operating officer of the shoe business John Egan. They are said to be receiving a 20 percent stake in Mosaic and cash. Meanwhile, Rubicon was acquired by the Shoe Studio Group in 2005. Shoe Studio is partly owned by Baugur and Kaupthing.
www.baugur.com
26 June 2006
River Island crosses the Channel
British high street chain River Island is to open a European flagship store in Amsterdam in September. The two-story shop will offer the entire collection. The move represents an important step in expansion of the brand. River Island already has 210 stores in the UK and Ireland. It also has 25 franchise partnerships in six countries, including Turkey, Poland and the Middle East. “We are very excited about this new venture,” said River Island managing director Richard Bradbury. “We have researched the market place and this project is a significant step forward for the River Island brand.”
www.riverisland.co.uk
23 juni 2006
Joseph appoints new creative director
Leading British designer-retailer and wholesaler has appointed Alison Buddenhagen as creative director for its own brand. Buddenhagen (36) joins the company from Burberry, where she was creative director of the younger, lower-priced Thomas Burberry collection. She previously also worked at Calvin Klein and Giorgio Armani.
At Joseph she will take up where founder Joseph Ettedgui left off, “carrying on and continuing” his work, according to a spokeswoman for the brand. She will report to managing director Marc Forestier.
At present, Joseph has more than 20 stand-alone stores worldwide, including locations like London, Tokyo, Paris and New York. The brand also has more than 30 in-store boutiques in department stores. It wholesales its label in 35 countries. The company was bought by Japanese fashion manufacturer, retailer and distributor Onward Kashiyama last year for $258 million. Prior to that, it was owned by investment firm Compagnie Nationale à Portefeuille.
www.joseph.co.uk
22 June 2006
TopShop keeps good company
Topshop is conquering international markets with designs from its Unique range. With pieces being sold at Opening Ceremony in New York and Colette in Paris, it is set to launch at Tokyo’s 10 Corso Como Comme des Garcons in July. TopShop had been invited to stock its range at the store after a successful collaboration with its Dover Street Market flagship last year. “It is a great honour for TopShop to be working with Comme des Garcons, who consistently push the boundaries of creativity and originality,” said TopShop brand director, Jane Shepherdson. “We feel that this latest partnership is an important part of our international expansion.” The pieces will be sold alongside labels like Junya Watanabe, Comme des Garcons and Rochas.
www.topshop.co.uk
21 June 2006
Printemps in possible management buyout
French department store chain Printemps is the possible subject of a management buyout led by Laurence Danon. With the financial support of Deutsche Bank, Danon is paying parent company PPR more than €1.1 billion for the chain, reports French daily Les Echos.
Last week, rumours surrounding the possible sale of Printemps by PPR reached a fever pitch. It was said that the retail giant was choosing to concentrate more on luxury goods. According to Les Echos, PPR would confirm the decision after business on Monday. The retailer has, however, refused to comment. French press bureau AFP reported on Monday that Italian Maurizio Borletti had bought the chain for less than €1.1 billion. Borletti is chief executive of La Rinascente and its biggest shareholder. According to AFP he is receiving financial support from the French bank Natexis.
Printemps has 17 stores in France, of which the most famous is located in the heart of Paris. Last year it generated 40 percent of the total Printemps turnover of €752 million.
www.ppr.com
20 June 2006
Design sees international copyright
The European Parliament has linked the European Union's design protection system to the global World Intellectual Property Organisation. Clothing companies will be able to protect designs in 33 non-EU countries when applying for European protection. These include Indonesia , Singapore and Turkey . China , Japan and the US are not covered.
UK weather affecting retail sales
Hopes of a high street recovery could be washed away this Wednesday, with lacklustre quarterly figures expected to cap off the wettest May on record. Analysts expect retail sales to be down as much as 5 per cent on the same period last year. A rainy Bank Holiday weekend would complete a May soaking for a sector already suffering from weak consumer confidence and record levels of personal debt. Richard Hyman, managing director of consumer research specialist Verdict, predicted that, “ Even if rain puts a dampener on the weekend for much of the country, one group of shoppers may benefit. Eighteen months ago, DIY was the star performing sector and now it is the worst. It will recover but not over the Bank Holiday. However, it is good news for guys looking for a DIY get-out clause.”
Vivarte sees buyer interest
French private equity firm PAI Partners is sounding out buyers for European retail giant Vivarte, its third largest investment, only two years after buying it for £1bn) Vivarte's most recognised brand in the UK is Kookaï, which it runs through a franchise.
The Business understands PAI has hired banker Rothschild to assess interest in the company after receiving a number of approaches at the start of the year. A decision will be made within weeks. Vivarte is one of Europe 's largest shoe and clothes retailers, rivalling France's Galeries Lafayette and PPR, owner of France 's Printemps department store. It runs 2,500 shops, most under the La Halle, Chausslan and Besson Chaussures brands. Its other stores operate under the André, Creeks, Caroll, Liberto, Orcade Minelli, Merkal and Fosco brands.
A source at a rival private equity firm said he expected PAI to make a substantial return on its investment. Two years ago it was widely seen to have overpaid. A banker aiming to get involved in the bidding said the French supermarket groups Carrefour, Casino and Auchan are likely to show an interest, with Auchan said to be the most keen, given its diverse chain of DIY, sports goods and electrical shops. Private equity firms Eurazeo, Wendel Investissement, Apax Partners and Candover are also likely to enter any auction.
Topshop to open in Russia
Fast fashion is making its way to Russia and Topshop is close to signing a franchise agreement with Firma Enrof. Enrof is also the franchisee for Mexx in Russia. The first 11,000sq ft store will open in the Yevropeisky shopping centre, currently being built near Moscow’s Kiev train station. Enrof plans to open 7,500sq ft Topshop stores in St. Petersburg in 2006 and 2007.
19 May 2006
American Eagle Outfitters Q1 profits up
Retailer American Eagle Outfitters Inc said its first quarter profits increased 16% to US$64.2m (£38.8m) from US$55.3m (£33.5m) for the same period last year. Earnings for the first quarter ended 29 April 2006 rose 20%. Total sales increased 14% to US$522.4m (£316.4m) from US$456.5m (£276.4m) in the corresponding period last year. Comparable store sales increased 9% versus a 27% increase last year. Gross profit for the first quarter increased to US$253.8m (£153.7m), or 48.6% as a percent to sales, from $222.2 million (£134.6m), or 48.7% as a percent to sales last year.
The company is due to launch a new intimates sub-brand, ‘aerie by American Eagle,' this autumn, and plans are underway to open the first four stores in it second major US brand, Martin + Osa, targeting 25-40 year olds.
Topshop joins forces with Celia Birtwell
Topshop has joined forces with textile designer Celia Birtwell to introduce a line featuring her signature prints. Birtwell, who used to be married to the late Ossie Clarke and was muse to David Hockney, made her name in the Seventies designing floral prints for Clark's dresses. “The design team and I had been discussing how fantastic we thought Celia was,” Topshop brand director, Jane Shepherdson, told WWD. “When her agent approached us about collaborating on a line, we leapt on it immediately.”
Now the two have designed an 11-piece collection, based on Birtwell's archives. The line includes floaty blouses and dresses in silk, georgette and voile, all featuring hand-drawn floral prints, with names like Mystic Daisy, Monkey Puzzle and Golden Slumbers. The collection launches at the Oxford Circus flaghip in London today and according to Shepherdson, there is already a waiting list.
“The response, so far, has been phenomenal, we've booked really big quantities of the pieces,” she said. Prices range from about $50 (£28) for a cotton top to $178 for a silk dress. From mid-June the capsule collection will also be sold at Topshop's shop-in-shop at the New York boutique opening ceremony. Birtwell will continue to work on the collection for “two or three seasons”, said Shepherdson.
www.topshop.co.uk
25 April 2006
The Observer investigates treatment of supply workers
Serious allegations about the treatment of workers at a clothing supplier to many of Britain's leading high street names have come to light in an investigation by The Observer. Retailers including Next, Debenhams and BHS buy tens of thousands of items per month from the Fortune Garment and Woollen Knitting Factory in Cambodia.
The factory has been judged the worst of those inspected by the International Labour Organisation (ILO) on a host of health and safety issues. The factory says that since an ILO report in 2002 it has dealt with noise and ventilation. But the ILO inspection in August last year showed that the factory had made little improvement on noise, ventilation or sick pay. When the Observer visited the factory last week the vast majority of the 30 workers interviewed said conditions in the factory were poor. They said they were in rooms with up to 600 others. “they use fans but its still very hot and because there are not enough fans and only two doors which are kept closed “In the washing room there are a lot of chemicals and the ceiling is not high so it's gets very hot and stuffy, we are given masks but they are not good enough and we often suffer the effects of chemical inhalation.” Employees said.
24 April 2006
Discounts to promote procreation
Japan is contemplating offering larger families special shopping discounts to encourage procreation. Decreasing birth rates and a rapidly aging population have led the Japanese government to believe that lowering costs for families with more children will encourage other families to have more. The government is contemplating the issue of identity cards to families with children, the Yomiuri Shimbun daily said. These cards will ensure discounts at stores that are participating in the program. The stores themselves would decide on the size of the discounts.
Meanwhile, the government is also considering offering tax rebates to ease the financial burden for parents of young children. Japan 's population shrank in the year ended October for the first time since 1945. The country's fertility rate fell to just under 1.29 in 2004, an all-time low. A rate of 2.1 is apparently needed to keep the population from declining.
Hermès profits increase
Luxury fashion house Hermès has reported a 7.4 percent rise in 2005 operating profit of €383.5 million (£264.8 million). Net profit increased 15 percent to €247 million, up from €214 million in 2004. Annual turnover rose 7.2 percent to €1.43 billion, due mainly to Japanese sales growth and strong growth in other Asian Pacific countries.
The operating profit fell below analysts' expectations; they had predicted an increase to about €395 million. HSBC analyst Antoine Belge told the FT that Hermès was not performing as well as its competitors and that a €10 million provisions cost was the cause for profits falling below expectations. He added that he believed the company was overvalued, largely due to takeover speculation, but thought that the share price would remain unchanged thanks to confidence in the luxury sector and strong sales in Asia.
Hermès now has 13 sales outlets in China, where it said it sales were particularly strong. The company opened its second store there in the fourth quarter. Directly operated stores saw sales rise 10 percent. This strong performance through directly owned stores, where margins are higher, led the company to increase investment in new stores this year. Last year the majority of investments were directed towards increasing production capacity for leather goods and for expansion and renovation of the company's distribution network. Hermès plans to open about 20 stores in 2006, including Seoul, Tokyo, Bangkok, Hangzhou, Paris and Amsterdam. Investments are derived from cash flow, which increased 7 percent to €310.8 million.
www.hermes.com
24 March 2006
Body Shop sold to L'Oréal
L'Oréal has bid 300 pence per share for The Body Shop, valuing the company at £642 million. The British company was founded in 1976 by Anita and Gordon Roddick who will maintain an 18 percent stake in the company. Anita will stay on as consultant for the company, advising L'Oréal on community trade issues. “It's not selling out,” said Anita during a press conference. “And the assumption that I am sitting next to an enemy is one that is absolutely wrong.”
L'Oréal chairman and chief executive Lindsay Owen-Jones said that the sale could not have gone through if Anita had not agreed to it. “For all Body Shop customers, the first thing they want to know is if Anita is going to stay,” he said. “A partnership between our companies makes perfect sense. Combining L'Oréal's expertise and knowledge of international markets with The Body Shop's distinct culture and values will benefit both companies.”
www.thebodyshop.com
21 March 2006
Federated in large-scale swap
US-based Federated Department Stores Inc has announced a deal with the Australian-based real estate conglomerate Westfield Group, in which it will sell 15 stores in return for 12 stores that it has been leasing from Westfield. The Australian group is the world's largest retail property company. Federated will sell six Macy's stores, one Hecht's store and five Robinson's-May stores. Three additional stores will be sold to Westfield for $18.5 million (£10.6 million).
Thirteen of the 15 stores sold by Federated were duplicates following the acquisition of May Department Store Co and its stores for $17 billion in February 2005. “We're swapping 12 stores for 12 stores,” Federated spokesman Jim Sluzewski told The Enquirer. “We'd identified 13 of the 15 for divestiture. This was the best deal for the properties.” Federated plans to divest 78 stores across the US that vie with former May stores. Earlier in the year it sold 10 stores to Boscov's Inc, a family-owned department store chain based in Pennsylvania.
www.fds.com
21 February 2006
Average working week is 32.1 hours
A campaign against the ‘long hours culture' launches on Friday – despite the fact that we enjoy a shorter working week. As the TUC gears up for ‘work your proper hours day', official figures show that the average employee works nearly two fewer hours a week than in 1984. Then the average working week was 33.8 hours. The most recent figure, for October to December last year, was only 32.1 hours. The TUC believes that unpaid overtime helps to explain the discrepancy.
18 February 2006
January worst sales period for retailers
January saw British retailers suffering their worst sales period for over a year. Sales declined 1.3 percent on the month before, according to the Office for National Statistics. The drop in sales is even worse than the City had expected. Sales were up 1.3 percent year-on-year, but fell below forecasts of 2.9 percent and down from the revised rate of 4.3 percent in December of last year. According to Channel 4 news, these figures could cause the Bank of England to slash interest rates from 4.5 percent to stimulate spending.
Nautica to relaunch in England
Nautica will relaunch in the UK next winter, after an absence of three years. Sales and marketing director Oliver Frielingsdorf said: “We will relaunch the brand to the mark over the next two seasons and we are evaluating the best way to do it.
Pricing will be more aggressive and in line with brands like Tommy Hilfiger. We are also looking at launching new categories such as men's and women's sportswear, a denim collection, kidswear and fragrances.” Nautica already has nine accounts in the Republic of Oreland and will target department stores and independents in the UK .
29 January 2006
Sainsbury's price cuts pay off
Sainsbury's discount fashion brand Tu have seen competitive price cuts in the past quarter, which paid off as the company saw “exceptionally” strong sales over Christmas, according to head of clothing Richard Jones. Prices across the Tu autumn range were cut by between 10 per cent and 20 per cent. Star performers included £10 ballet wrap cardigans, and a £30 faux sheepskin jacket.
Sainsbury's group like-for-like sales grew 5 per cent for the 12 weeks to December 31st.
Mothercare sees sales rise
Mothercare saw group sales rise 4.1 percent during the 13 week period ended 6 January and 3.3. percent during the 41 weeks to 6 January, thanks to strong trading at its international stores. “Our winter sale and end-of-season stock clearance are proceeding in the line with plans,” said the baby goods retailer. “Gross margins are anticipated to be in line with expectations. We expect the overall market to remain challenging in the coming months and whilst trading performance has been satisfactory to date, we face continuing pressure from rises in occupancy, employee and utility costs.”
UK sales rose 2.3 percent during the 13 weeks ended 6 January compared with the year before. Meanwhile, international sales for the period soared 18 percent, boosted by franchisee same-store sales and new store openings.
www.mothercare.com
16 January 2006
John Laing cashmere requests receivership
Scotland 's oldest producers of cashmere, John Laing of Hawick, have requested receivership, according to a report in The Scotsman. The 175-year-old company, which supplies to high end shops including Harrods, is said to have lost the support of its major investor, a Japanese construction company, in August. This has left the company reeling. Less than a month ago Hawick knitwear company Douglas of Scotland closed, costing 42 jobs. The receivership means the loss of 52 jobs at the company. Receivers KPMG have said they will try to find a buyer for the company, thereby salvaging the remaining 43 jobs.
“It is a long-established business with an excellent reputation and we are hopeful that, with the support of customers, suppliers and the remaining staff, we can preserve the business as a going concern and find a buyer,” Blair Nimmo of KPMG told The Scotsman. “The business had been incurring significant losses over the last few years, largely due to some bad debts and increased foreign competition. Recent cash flow difficulties left the directors with no choice but to request the appointment of receivers.”
Takeover majority stake Petit Vehicule by Japanese retailer
The Japanese casual clothing chain Fast Retailing is taking a 95 percent stake in France's second-largest lingerie chain, Petit Vehicule, for €70 million. The Japanese retailer, which operates the ‘Uniglo' brand stores, intends to become one of the world's leading casual clothing companies by 2010, reports the Financial Times.
Petit Vehicule is the owner of the Princesse tam tam lingerie brand, which operates 86 stores in France and whose products are available in department stores in the UK, Italy and Germany. The brand generated sales of €65 million (£44.0 million) last year.
Fast Retailing will acquire its share in the French company by the end of January and said that it might bring the brand to Japan, although it first plans to strengthen the brand in France and other European countries.
The company also has 51 percent of the voting rights in French apparel maker Nelson Finances, which owns French brand Comptoir des Cotonniers. It plans on introducing this brand to Japan next year.
Earlier this year, the Japanese company announces its intention of spending Y300 billion (£1.42 billion) to Y400 billion on mergers or acquisitions during the next three to four years.
Fast Retailing's target is annual group sales of Y1.000 billion by 2010. For the fiscal year ended August, the company reported sales of Y383.9 billion and a net income of Y33.8 billion.
Largely to a slow home market, Uniglo's same-store sales growth has risen only 0.6 percent in the last year. Furthermore, the brand's product range did little to tempt the Japanese shoppers.
In an effort to boost sales Uniglo has given its merchandising strategy a face lift by reducing some of its product cycles, especially those for women's wear. Although these clothes only represent 10 percent of women's wear, the company plans to increase that percentage to 50 percent in the mid-term.
www.fastretailing.com
5 December 2005
Brooks Brothers open first UK store
Brooks Brothers has opened its first UK store on Old Broadstreet in the City of London, ahead of a roll-out of 10 to 12 stores within three to five years.
True to Brooks Brother's Wall Street roots, the 2,300sq ft shop has an executive office feel, with mahogany fittings, a burgundy Chesterfield sofa and a flatscreen TV tuned to Bloomberg.
Ready-to-wear shirts start at £59 and suits sell from £600. Made-to-measure suits will go on sale next week from £800, and longterm plans include bringing Brooks Brothers womenswear and kidswear to the UK.
22 November 2005
US manufacturers move to China
American manufacturers and retailers are increasingly shifting their distribution capabilities to China, in a move they hope will increase efficiency in their supply chains, according to the FT.
Instead of using their warehouses in the US, manufacturers are having a growing number of products sorted, packaged and labelled in China, and sending the goods directly to retailers and consumers.
However, most companies are avoiding building their own warehouses in China, choosing instead to use facilities provided by their logistics partners, such as UPS and DHL. UPS plans to have 50 warehouses in China by the end of this year and to open 10 more next year.
In China, a warehouse worker costs approximately $2 (£1.14) an hour, compared with $14-15 in the US, president of transport consultancy, SJ Consulting, Satish Jindel, told the FT.
Although small products like iPods have long been delivered to retailers and consumers directly from China, companies like UPS are hoping to expand the concept to larger, lower-value ocean-going goods, like shoes and clothes, which will enter the US truck network upon arrival in the country.
7 November 2005
Retailers in need of confidence boost
Struggling retailers are demanding a confidence-boosting cut in interest rates this week to kickstart the festive season on the high street.
“Christmas is going to be challenging, but it could be better if we get a cut in rates”, said Kevin Hawkins, director-general of the British Retail Consortium, which is set to reveal that October saw the seventh successive monthly decline in high street sales.
The British Chambers of Commerce, which represents many small businesses, echoed Hawkins's demands, calling on the Banks' Monetary Policy Committee to seriously consider cutting rates.
7 November 2005
Retailers not out of slump, yet
Britain 's economic performance is claiming a growing number of corporate casualties with insolvencies up more than 20 per cent. Consultants Experian said that 4,787 firms went bust between July and September, up from 3,954 in the third quarter of 2004. Retail was one of the sectors showing the fastest increase as consumers cut back on spending. Insolvencies in non food retailing were up 71 per cent.
31 October 2005
Stead & Simpson buy-out
According to media reports, the Bank of Scotland is planning to back the £42 million management buyout of shoe chain Stead & Simpson. The chain is said to be in talks with its management about a potential buyout backed by the Bank of Scotland's finance division. The company operates approximately 400 stores under the brands Stead & Simpson, Peter Briggs, Shoe Express and Famous Footwear. Following a buyout, shareholders in the company would be able to cash in their shares.
17 October 2005
Calvin Klein licensing deal G-III
Calvin Klein Inc. has signed a licensing agreement with G-III Apparel Group Ltd. for women's better suits, according to media reports. G-III will manufacture and distribute suits under the better-priced Calvin Klein label for the US, Canada and Mexico.
The line should complement the existing Calvin Klein sportswear, outerwear, shoes and accessories. It will be available in select department and specialty stores from spring 2006. The suits will be sold at 300 points of sale, but distribution will increase to over 800 points of sale by the end of the first year.
G-III also manufactures licensed outerwear and sportswear for brands including Kenneth Cole, Tommy Hilfiger, Jones Apparel, Sean John, Ellen Tracy, BCBG Max Azria, Nine West, Cole Haan and House of Dereon. Vice chairman of G-III said in a statement: “At G-III we have an established goal of being a diversified apparel company covering all seasons. The signing of this important license is another big step in that direction.”
www.calvinklein.com
www.g-iii.com
29 September 2005
Fast Retailing to invest in M&A
The Japanese distribution and textiles group Fast Retailing announced on Monday that it will invest between €2.19 billion (£1.48 billion) and €2.92 billion in mergers and acquisitions in Europe , the US and China within the next three years. On Monday Fast Retailing, owner of fashion brands Uniqlo and Comptoir des cotonniers, revealed its new business strategy for the next five years. Within this time it hopes to achieve its goal of “becoming the number one global casual apparel group with sales of €7.3 billion per year. The group anticipates sales for 2005/6 to amount to €2.8 billion.
With the €2.92 billion it plans to invest in “acquisitions or partnerships with companies in Europe , the US and China that can provide the necessary infrastructure and staff for the local development of Uniqlo”, the company said in a statement. The targeted companies are “companies in the fashion industry with a global growth potential”, capable of generating annual sales in excess of €73 billion and margins of 10 percent, the group has stated.
In May, Fast Retailing took over the French fashion chain Comptoir des cotonniers, which has 186 stores in France and three in Spain . The Group hopes that Comptoir will generate sales of €282 million by 2010. The founder of Fast Retailing, Tadashi Yanai, resumed his position as chief executive of the Group on 1 September, after the dismissal of chairman Genichi Tamatsuka following poor financial results.
8 September 2005
El Corte Inglés expansion plans
Spanish retailer, El Corte Inglés, plans to expand its business into Portugal and Italy in a bid to salvage its disappointing results at home. Suffering from increasing competition from specialist boutiques and supercentres, the privately held group however remains committed to its department store format. At the annual shareholders meeting last weekend, chairman Isidoro Alvarez said that the group was expanding in Portugal and was wrapping up negotiations to open its first store in Rome .
It is the first time that the Spanish group's earnings have fallen below those of Inditex, the Spanish owner of Zara. Inditex saw earnings of €628 million (£351.8 million) on sales of €5.7 billion, while El Corte Inglés revenues rose 7 percent to €14.6 billion, with net profits rising only 6 percent to €610 million.
Alvarez contended that, despite the troubles, the format of the store remained “the motor of growth of our group”. The group operates a supermarket chain, Hipercor, a low-cost fashion chain, Sfera, as well as travel agencies, an insurance company, a consumer finance group, an optician, drugstores, telephone and utility services.
www.elcorteingles.es
30 August 2005
Jessica Simpson
In what is being promtoted as the largest up-front celebrity fashion licensing deal in history, the Camuto Group acquired the master license for the Jessica Simpson fashion brand for 15 million dollars. C.E.O. Vince Camuto predicts it will easily grow into a 2 bllion dollar a year mega business by 2008. Camuto was the co-founder and chief executive officer of the Nine West Group Inc. Simpson was quoted as saying that "I don't want the Jessica Simpson brand to be anything I wouldn't wear”. But some people wonder if she will have any real input.
26 August 2005
Thailand on the fashion map
Thailand has invested £24 million in the fashion industry in a bid to feature on the fashion map. Hosting Bangkok Fashion Week, which startes on Wednesday, the country is hoping to compete with other high profile fashion events in the Far East including Hong Kong , Singapore , Kuala Lumpur and Sydney .
The event will provide a platform for 30 of Thailand 's best designers and organisers are hoping to attract a large international audience, including buyers, press and leading designers like Karl Lagerfeld. Young designers from Thailand 's 29 fashion schools will also be able to showcase their work in a series of fashion shows. Furthermore, New York 's Fashion Institute of Technology is helping to set up a new fashion school, and a fashion library is to be opened as well.
“The purpose is to plant seeds for the future,” said the president of the Thai Garment Manufacturers Association, Tienchai Mahasiri. “We are building people, the facilities and the atmosphere for Thailand to become a fashion hub.” The second fashion week has already been planned for March 2006.
11 August 2005
Sales figures not as bleak as expected
A 1% year-on-year fall highlights further evidence nationally that the effects of the terrorist threat aren't being widely felt. Natasha Burton at FootFall said "The -6.9% drop week on week is disappointing after the strong showing last week which heralded the start of the school holidays. However, as people begin their holiday trips and change their daily routines whilst on holiday, there will naturally be a reduction in shopping trips.
"The department store sector was hit harder than the national picture week-on-week recording a fall of -12.8 per cent. This cannot detract from the 6.7 per cent rise year on year, and the fact that the sector has been outperforming 2004 for three consecutive weeks as their discounts and offerings continue to pull shoppers in store.
"Department stores see their attractiveness grow annually during the last two weeks in July as prospective holiday-makers use them as 'one stop' holiday shops. This traditionally results in a large fall in the first week of August when the shoppers are away. Department stores will see a late August peak when consumers stock up on back to school items,"
10 August 2005
Unilever completes sale to Coty
Unilever has announced the completion of the sale of its fragrance business, Unilever Cosmetics International, to Coty Inc. Coty paid $800 million (£ 459 million) in cash, in accordance with the terms agreed upon and announced on 20 May 2005. Subject to future sales, Unilver may receive further deferred payments.
The deal will close in Austria following the receipt of all the necessary regulatory approvals. The sale of the fragrance business is in line with Unilever's strategy to focus on its core businesses.
www.unilever.com
11 July 2005
Second bidder for Beattie
The race is now officially on. Department store chain James Beattie received a second bid approach on Monday. The second bid comes less than a week after House of Fraser agreed to buy the chain for GBP 69.4 million. Beatties confirmed the approach from a third party. "There can be no certainty whether or not this will lead to an offer for the entire issue and to be issued share capital of Beatties," it said.
It did, however continue to unanimously recommend the House of Fraser proposal, which includes a pledge of GBP 13 million over two years to Beattie's pension scheme, which is currently GBP 7.3 million in deficit. Beatties shares rose 4 pence.
Beatties operates 12 stores in central England. Last Tuesday it agreed to a bid from House of Fraser, which stemmed from an unsolicited approach in March of this year. The approach came five months after Brian Heilbron assumed his positions as chief executive of Beatties. As part of the House of Fraser deal, the Beatties directors agreed to resign from the board.
www.beatties.co.uk
4 July 2005
C'N'C Ducati
Fashion house Costume National is joining forces with motorcycle manufacturer Ducati Motor Holding to producte a new street wear range called C'N'C Ducati.
According to just-style.com, Costume National's designer Ennio Capasa will design the collection. It will then be made and distributed by garment producer Ittierre. The new C'N'C Ducatie collection will be launched in December 2005.
www.costumenational.com
27 June 2005
Witkowski quits Kors
Don Witkowski, president of Michael Kors's men's division is quitting the firm per 1 July to start up a consulting business. He will have Michael Kors as his first client.
Witkowski helped launch Michael by Michael Kors and was president of the men's division since 2003. In his new role as consultant he will work on the merchandising for the men's collection as well other required projects. The company has not yet named his successor.
www.michaelkors.com
15 June 2005
Art of Fashion 2005 starts
Fashion Targets Breast Cancer's gala event 'The Art of Fashion' was held for the first time in 2004, to much acclaim. Not only did it raise an incredible £210,000 for Breakthrough Breast Cancer, but it also gained widespread media coverage. Guests were rapturous, describing the event as an "out and out triumph" and a "a fashionista's dream". The Art of Fashion 2005 took place on Thursday 9 June at The Dorcester, Park Lane, London. Tickets were £500 each or £5,000 for a table of ten.
The award-winning Fashion Targets Breast Cancer (UK) is now Breakthrough's flagship fundraising campaign. Launched in 1996, the campaign is an unprecedented initiative, which has bought together the UK's leading designers and retailers, photographers, models and journalists to raise awareness of breast cancer and funds for research.Based on the sales of the now famous logo T-shirt inspired by Ralph Lauren, the campaign has raised over £5 million.
10 June 2005