MIK - Michaels Says It’s Found Possible Customer-Accounts Breach
- "Michaels Stores Inc...said some of its customer payment-card data may have been used fraudulently, making it the third U.S. retailer to report such a breach since December."
- "Michael Fox, a spokesman for Michaels, declined to say when the data-security attack may have occurred, when the company learned of it or how many customer accounts may be affected. He said the matter is being investigated and any new information will be posted on the company’s website."
Takeaway: Bad publicity at a bad time. This shouldn't affect its IPO plans, but it can't help valuation. We're surprised that more data security firms aren't licking their chops and pouncing on the opportunity of a lifetime.
KER - Puma to Outfit Arsenal Football Club
- "Puma AG said it would supply the uniforms and merchandise for English Premier League team Arsenal Football Club..."
- "He wouldn't comment on the value of the deal beyond saying it represents the 'biggest deal in Puma and Arsenal's history.' British press reports suggest Arsenal will receive £30 million ($49.7 million) a year for the five years of the deal."
Takeaway: Puma beat out Nike for the right to spend $50mm to put their logo on Arsenal's jersey. Nike is in the midst of negotiations with Manchester United and most likely bowed out of the Arsenal talks after Puma inflated the price. Either that, or in typical Nike fashion it knew how badly its competitor wanted the deal, so it bid up the price knowing it would ultimately walk away.
9983 - Fast Retailing to List in Hong Kong
- "Fast Retailing Co. Ltd. said Monday it has decided to pursue a secondary listing of its shares on the Hong Kong stock exchange to boost its profile in Asia and appeal to more international investors."
- "The corporate parent of Uniqlo said it is not issuing new shares so it is not raising any capital in the operation. The company said it plans to list its Hong Kong depository receipts March 5 but it may decide to postpone the listing if business and market conditions change."
Takeaway: The really big move would have been to dual list in Hong Kong and New York. Hey, the NY/Hong Kong thing worked for COH.
VFC - Canadian Olympic Committee threatens North Face with trademark suit
- "The Canadian Olympic Committee is threatening legal action against The North Face, claiming the outerwear brand associated itself with the upcoming Games in Sochi, Russia, without paying for an official sponsorship."
- "The current dispute is over a line of clothing North Face launched in November called the 'International Collection.' Some of the clothing, labeled 'village' wear, is decorated with the Canadian flag (or other team colors in other countries), and sometimes featured a patch with the symbol 'RU 14' – a reference to the Winter Games in Sochi. Other merchandise showed a world map with a red star where Sochi is located. A T-shirt featured the date of the opening ceremonies: '07.02.2014.'"
Takeaway: The amusing part of this whole story is that the COC is warning consumers that their North Face purchase won't help 'support' the Canadian Olympic Team. What probably happened is that Adidas threw a fit when it saw product that threatened its place in the market without paying one dime in endorsement money.
URBN - Wendy Wurtzburger Exits Anthropologie
- "Wendy Wurtzburger, a 15-year veteran of Urban Outfitters, has left the company. Sources said the chief merchandising and design officer of Anthropologie North America’s last day was Thursday. Wurtzburger and executives of Urban Outfitters Inc. could not be reached for comment."
Takeaway: Anthropologie is the crown jewel in the URBN portfolio with the namesake brand comping down. We have to believe that Wurtzburger had a lot to do with the success of the brand. Her departure, regardless of circumstances, will be felt.
HBC - Hudson's Bay Company Taps Douglas Scovanner for Interim Finance Lead
- "Hudson's Bay Company has appointed Douglas Scovanner as Executive Vice President of Finance and Accounting, on an interim basis. This appointment gives Scovanner day-to-day responsibilities for the company's Financial Planning, Asset Protection, and Accounting functions. Prior to this appointment, Scovanner spent nearly two decades at Target Corporation, most recently as Executive Vice President and Chief Financial Officer."
Takeaway: Great move by HBC. Scovanner was money at Target, and we'd argue he is currently being sorely missed. If HBC could hang on to him it'll be a big win.
WMT - Wal-Mart to lay off 2,300 at Sam's Club
- "Wal-Mart Stores Inc. plans to lay off 2,300 employees at Sam's Club, or about 2% of the warehouse club's workforce, according to published reports Friday. The move reportedly aims to reduce the ranks of the subsidiary's middle management. It is the biggest round of layoffs at Sam's Club in four years."
PVH - Zooey Deschanel Teams With Tommy Hilfiger
- "To Tommy, From Zooey...the name of a new capsule collection designed by Tommy Hilfiger and Zooey Deschanel... which will mainly consist of flirty dresses, will make its debut at Macy’s this spring."
- "The dresses will be priced at retail for between $98 and $199, and 14 of the 16 styles will launch at 200 Macy’s stores beginning April 14."
Russia customs rules hit online retailers
- "Western online retailers are hitting a fresh roadblock in their push into Russia, one of the world’s fastest-growing ecommerce markets, as new customs regulations hinder courier deliveries to private customers in the country."
- "DHL and FedEx said they had suspended express deliveries from abroad to individuals in Russia because of stricter customs procedures that require lots of extra paperwork on all parcels for personal use except for documents, regardless of the shipment value."
- “'This impacts mostly shipments for business-to-consumer ecommerce for customers such as Amazon and Net-A-Porter,' said Daniel McGrath, spokesman for DHL Express. 'That is a minor part of our business, but it is a fast-growing market.'”
- "UPS has not suspended services yet but said: 'We have told our customers that we’ve experienced significant delays in clearance and deliveries as a result of the change in customs procedures.'”