Company News
JCP - Allen B. Schwartz Doesn't Renew Line at J.C. Penney
- "Allen B. Schwartz, co-owner, founder and design director of A.B.S. by Allen Schwartz, has pulled the plug on his Allen B. collection for J.C. Penney Co. Inc. after five years at the beleaguered retailer."
- "Allen B., which started out as a sportswear collection but morphed into a dress line, was carried at 908 Penney’s stores. Schwartz said he designed, fit and sourced the collection, which was manufactured by Penney’s. The deal was under a royalty license."
Takeaway: If JCP wanted to keep this product, it would have kept the product. This is all a part of JCP getting its merchandise back on its feet and more appropriate for the core JCP shopper.
ADS - Adidas lowers FY guidance
- "Adidas AG...cut the low end of its 2013 profit forecast by 7.9 percent, citing the euro’s strength, a glitch in a Russian distribution site and weakness in the global golf market...Net income this year will be [820 million euros - 850 million euros]...Adidas had previously forecast net income of [890 million euros to 920 million euros]. Adidas also cut its operating margin forecast to about 8.5 percent from a previous forecast of 9 percent."
Takeaway: Definitely a sloppy preannouncement. The biggest notable is that it makes you think how infrequently this happens to Nike. It shows the quality gap between the two competitors.
NKE - Nike launches LunarFly 306 and shareholders approve CEO Mark Parker's 2013 compensation package of $15.4 million.
Takeaway: It’s good to be Mark Parker. No surprise here with either the level of compensation, or the approval of this year’s package. Note, however, that last year Parker made $35.2mm, including $23mm in stock awards. Yes, he’s taking a pay cut.
Neiman Marcus - Neiman launches ad campaign to promote new "Cusp" department that targets more youthful, hipper demographic
(http://www.wwd.com/media-news/fashion-memopad/harmonic-convergence-7170369?module=hp-media)
- "The Neiman Marcus department and store that represents a hipper, more youthful demographic, has created a fall ad campaign that celebrates music and those who make it."
- "The retailer chose up-and-coming rockers as models…[who] appear in ads wearing designs by Rag & Bone, Vince, Alexander Wang and Robert Rodriguez."
- It seems as if everyone is launching a new ad or department centered on capturing the millennial shopper these days.
RL - Orland Bloom struts his stuff in the new Romeo & Juliet on Broadway in RL Denim and Supply Jeans
Takeaway: RL has been getting bolder with product placement. But unlike the US Open, they couldn’t have Orlando wearing a 12-inch Polo Pony on his back.
M - Macy’s is launch partner for Apple’s new streaming music service, iTunes Radio
- "Macy’s announced that it is an exclusive launch partner for Apple’s new iAd-supported streaming radio service, iTunes Radio. In line with the retailer’s omnichannel strategy, Macy’s said the new service will allow it to reach a broad cross-section of consumers with compelling digital, visual and audio engagement experiences on their iPhone, iPad, iPod Touch, Apple TV, Mac or PC."
Takeaway: Not a surprise. Macy’s continues to make strides in furthering its OmniChannel platform. We just question if people will pay for it.
LVMH - LVMH Acquires Stake in Nicholas Kirkwood
- "...Moët Hennessy Louis Vuitton is to reveal today that it has taken a majority stake in London-based [women's shoe designer] Nicholas Kirkwood."
- "The exact size of the stake and financial terms could not be learned. LVMH characterized the deal as a 'long-term partnership' that affirmed its commitment to 'nurture talent and creativity,' and said it would provide its expertise to help Kirkwood develop his brand internationally….At present, Kirkwood’s shoes are carried at about 150 department and specialty stores, and sold in three flagships: in London, New York and Las Vegas."
LVMH - Rumored to be in advanced talks to acquire J.W. Anderson
- "Moet Hennessy Louis Vuitton ...is in advanced talks to acquire a stake in fashion designer J.W. Anderson, according to two people familiar with the situation."
- "LVMH...could sign a deal with London-based Anderson as soon as this month, said the people, who asked not to be named as the information is confidential."
- "Jonathan William Anderson set up the label bearing his name in 2008, three years after graduating from London College of Fashion. He has collaborated with Gianni Versace SpA and Philip Green’s Topshop."
Takeaway: Someone is on a buying spree. Yeah, that’s suspect.
PUM - Puma Signs Jamaal Charles
(http://www.wwd.com/footwear-news/markets/puma-signs-jamaal-charles-7164367?module=hp-fn)
- "Puma has signed Kansas City Chief’s running back Jamaal Charles to a two-year contract to be one of the faces of the brand’s training category for men."
- "[He] will work with Puma on social media programs, beginning with a 'Get to Know Jamal' series of weekly videos that kicks off next week. He will also be featured in the brand’s 'Nature of Performance' campaign and will give input on the testing and development of future product."
Takeaway: Odd for Puma to deploy assets in the NFL. NASACAR and Indy? Yes. Football (Soccer)? Definitely. But NFL? It doesn’t sit well with us.
CFR - Richemont Said to Hire Adviser to Sell Lancel Luxury Bags
- "...Richemont SA (CFR) has appointed an adviser to sell its luxury leather-goods brand Lancel, the maker of Brigitte Bardot handbags, according to two people familiar with the matter."
- "Richemont hired investment bank Nomura Holdings...to help sell the brand, said the people, who asked not to be identified because the information is confidential. Lancel could be worth about 500 million euros ($668 million), according to one of the people...Richemont got control of the Paris-based brand when its Vendome unit bought it for 342 million francs ($375 million) in 1997."
TJX - TJX Quietly Relaunches Website
(https://www.sourcingjournalonline.com/tjx-quietly-relaunches-website/)
- "With surprising stealth, T.J. Maxx (TJX) has revived its online presence. Quietly, without fanfare or even an official announcement, TJX just appeared online, after a protracted, eight year absence."
- "TJX originally launched a retail website in 2004 but closed down after only a year, stymied by a weak response from its customers. Many experts believe that its unconventional business model was poorly suited to online retail."
- "Now, TJX intends to streamline their internet offerings, focusing more on higher priced items and more exclusive brands."
HD - Home Depot Sending 20,000 Part-Timers to Health Exchanges
- "Home Depot...plans to end medical coverage for about 20,000 part-time employees and direct them to government-sponsored exchanges scheduled to open next month as companies revamp benefits to fit the U.S. Affordable Care Act."
- "Employees with fewer than 30 hours a week will no longer be offered limited liability medical coverage, Stephen Holmes, a spokesman, said today by telephone. About 5 percent of Atlanta-based Home Depot’s 340,000 employees are enrolled in that plan.
- This follows on the heels of similar announcements by Trader Joe's, UPS, and WAG.
BBY - Best Buy takes its vending machines from airports to…rest stops?
- "These 'Best Buy Express' kiosks have been around since at least 2008, but mostly in airports—not off the New Jersey turnpike. ZoomSystems, the company that makes the kiosks, has created similar 'automated stores' for Apple and the Body Shop."
- "Along with iPads, the machine offered iPhone cases, phone-charging equipment, audio cables to use in the car, Beats by Dre headphones, and other gizmos that would be helpful if you'd forgotten something at home."
Industry News
UK Office of Fair Trading investigates price fixing on sports bras
(http://www.theguardian.com/business/2013/sep/20/oft-price-fixing-sports-bras)
- "The Office of Fair Trading has accused leading underwear company DB Apparel and three department stores of price fixing on sports bras.
- Debenhams, House of Fraser and John Lewis are accused of cooking up anti-competitive deals with DB Apparel UK over their Shock Absorber sports bras."
- "The OFT alleges that the underwear maker and the stores committed a serious breach of competition law, by agreeing fixed or minimum prices for the bras."
- "Following its 17-month investigation into the sports bra market, the OFT says that DB Apparel made nine anti-competitive agreements with the stores between 2008 and 2011, with the aim of increasing the price of the bras. During this period, Shock Absorber bras had a 15% share of the market."
- "Shock Absorber bras were being sold today for between £25 and £38 on Debenhams' website."
Clicks to Bricks: Five Cool Concepts
(http://www.chainstoreage.com/article/clicks-bricks-five-cool-concepts)
- "In a role reversal of sorts, pure online retailers are venturing offline and into the world of brick-and-mortar retail. Here’s a look at [three] that are generating lots of buzz:"
1. JustFab
- "Online subscription fashion retailer JustFab’s first retail store, in Glendale Galleria, Glendale, Calif., was designed to mirror the brand's online shopping experience. Customers shop curated product displays, with trend story videos and in-store 'stylists' offering fashion advice. They can also register for exclusive VIP member pricing"
2. Proper Cloth
- "Custom-made shirts — and fine Scotches — are the bill of fare in online shirtmaker Proper Cloth’s first brick-and-mortar outing. The store is located in New York City’s Soho neighborhood, in a walk-up, residentially-styled loft space. (Appointments are encouraged, but walk-ins are ok.) Customers can peruse the fabrics, be measured or fine tune the fit of a Proper Cloth shirt already ordered. They can also get style or fit advice, and place online orders."
3. Bonobos
- "Online menswear retailer Bonobos has entered the physical arena with Bonobos Guide Shop, a handsome and comfortably-furnished showroom where customers can try on the brand's shirts, pants and other products, get one-on-one expert fit advice and place an order (with delivery to their home). To date, the company has opened eight locations, from San Francisco to New York City."
Two days, 240 meetings: Apparel pushes free trade on Hill
(http://www.politico.com/story/2013/09/apparel-trade-meetings-capitol-hill-97092.html?hp=r8)
- "A small army of clothing-industry executives has fanned out across Capitol Hill this week, pinning down 240 members of Congress for individual and group meetings to talk free trade. They are the representatives of at least 50 apparel manufacturers and retailers who have taken up a new strategy in an attempt to get their way in the blockbuster Trans-Pacific Partnership, as U.S. negotiators are becoming more difficult to reach."
- "The U.S. apparel industry has formed a single coalition and set about the goal of finding friends who will push negotiators to insist that rules be included in the trade deal that help them sell cheaper products. They’re asking for signatures on letters, urging members of Congress to call President Barack Obama’s top trade negotiators and more — and trying to gin up attention along the way, tweeting about each meeting and even placing newspaper ads."
Turkey Emerges as Major Denim Producer
(https://www.sourcingjournalonline.com/turkey-emerges-as-major-denim-producer/)
- "Turkey is garnering a reputation as an emerging producer of denim, breaking into an industry generally dominated by a small handful of colossal companies….The global denim market is poised to continue its vigorous growth, expanding to $56 billion by 2018, according to a report issued by Global Research Inc. While the U.S. has long been the world’s most prolific producer of denim, it has been surpassed by upstarts like China, India, Bangladesh, Pakistan and Turkey."
- Turkey, at the end of 12 month period ending 7/31/2013, was responsible for approximately 5.6% of Global cotton textile production.
