COMPANY NEWS
NKE - 4Q14 Earnings -- see our note from last night "NKE - Need More Cowbell"
KATE - Kate Spade & Company adds Doug Mack to BoD
(http://www.fibre2fashion.com/news/garment-company-news/newsdetails.aspx?news_id=165172)
"Kate Spade & Company announced the election of Doug Mack to the Company's Board of Directors. Mack's election brings the number of Directors to eleven. His initial term as director is effective immediately and will expire at the Company's 2015 Annual Meeting of Stockholders."
"An eCommerce innovator, Mack has extensive knowledge in key retail areas including technology, marketing and customer experience. In April 2014, he became CEO of Fanatics, Inc., the world's leading retailer of licensed sports merchandise and a billion dollar eCommerce company."
"Previously, Mack served as CEO of One Kings Lane, a leading online destination for home design, which he joined as a $10M start-up and led its growth into an Internet Retailer Top 100 company. Prior to One Kings Lane, Mack was CEO of Scene7, the leading rich-media platform for eCommerce, which has powered websites for more than 1,000 global retailers."
Takeaway: Governance was not a problem for KATE or FNP in recent years. But this addition to the board is a winner. We don't know Mack, yet, but his accomplishments are right in line with the kind of expertise we want to see added to KATE's Board.
ADS - Adidas Will not use Suarez for new Marketing
"Adidas has said it has no plans to use Luis Suarez for future marketing during the World Cup, after FIFA banned the 27-year-old player for nine games for biting another athlete during Uruguay's match with Italy."
""Adidas certainly does not condone Luis Suarez’s recent behavior and we will again be reminding him of the high standards we expect from our players," the company said in a statement, adding that it fully supports FIFA's decision."
Takeaway: Was a press release really necessary for this? That's like Livestrong saying that they will no longer use Lance the day after he admitted to being one of the most notorious liars in sports history. Some things are best left unsaid.
TGT - Target’s 124 stores in Canada all receive LEED certification
"Target announced that all 124 store locations it has opened across Canada in 2013 have been awarded Leadership in Energy & Environmental Design (LEED) certification."
"Target stores were awarded LEED certification through the U.S. Green Building Council's (USGBC) LEED Volume Program, which streamlines the certification process for buildings in both Canada and the U.S In order to obtain certification. Target stores had to undergo various rounds of audits throughout 2013, and meet stringent criteria across five LEED categories, including: sustainable sites, water efficiency, energy and atmosphere, materials and resources, and indoor environmental quality."
Takeaway: That's great that the stores are finally LEED certified…just in time for a new CEO to make the decision to close them down.
WMT - Walmart shows support of women-owned businesses with new logo
(http://www.chainstoreage.com/article/walmart-shows-support-women-owned-businesses-new-logo)
"Walmart, along with the Women's Business Enterprise National Council and WEConnect International, on Wednesday joined forces to establish a unique logo for retail packaging of products from women-owned businesses. The new logo will bring consumer recognition of products provided by women-owned businesses on store shelves both in the U.S. and international markets."
Takeaway: This is nothing compared to the major win WMT had in China earlier this week, but give the company a little credit -- at least it's trying to be a leader in gender equality.
FL - Foot Locker Revamps Skate Business
"In a strategic move, Foot Locker Inc. is transitioning its skate business from its CCS banner to Eastbay."
"Over the next several months, the CCS digital sites will continue to service skate consumers with an offering of footwear, apparel and accessories. However, going forward, these shoppers will be directed to Eastbay.com for such goods."
"The move will allow New York-based Foot Locker to consolidate the purchasing, marketing and distribution of skate product from vendors including Nike, Adidas and Vans."
Takeaway: FL hinted that this coming, but regardless, it makes sense. Eastbay is a great asset, CCS is not. They're focusing and leveraging the best parts of the portfolio. We don't love FL here, but the company is making a lot of good moves. The biggest risk is what was once the 'Hick's going to JC Penney' risk is turning into the 'JC Penney, Kohl's or Target' risk.
OTHER NEWS
ITX - Venezuelan Zara Binge Gives New Meaning to Fast Fashion
"On the rare day that Zara had clothing to sell in Venezuela, the fast fashion was disappearing even more quickly than usual."
"About 300 people lined up at midday outside a Zara store in the Sambil shopping mall in Caracas last week, seeking clothing as the country’s currency controls have emptied stores of imports. Shoppers waited their turn after picking a number under the eye of security guards, who controlled access to the shop."
"The chain was able to dress up mannequins and restart business after the government granted access to cash at a preferential rate to the franchise operator for Inditex SA (ITX) in the Latin American country."
IKEA - Ikea to raise minimum wage for U.S. workers based on cost of living in each area
(http://www.chainstoreage.com/article/ikea-raise-minimum-wage-us-workers-based-cost-living-each-arEa)
"Ikea is planning to raise the hourly minimum wage for employees in its U.S. stores by an average 17%, beginning January 1, 2015. In a move unprecedented among U.S. retailers, Ikea’s wage hike will vary in that it will be based on the cost of living in each store’s location. According to Ikea, the change will take the average minimum hourly wage in its existing U.S. stores (as of June 2014) to $10.76, a $1.59 or 17% increase, and $3.51 above the current federal minimum wage."
