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American luxury and lifestyle company Tapestry said on Tuesday its Q4 revenue for 2018 rose 31 percent. Profit increased by 39.5 percent from the same period last year. For the full year, revenues also increased 31 percent to 5,880 million dollars, while net income 397.5 million dollars compared to 591 million dollars last year.
The company’s sales in Q4 2018 were 1,483.7 million US Dollars, up from 1,133.8 million US Dollars a year earlier. Net income for the quarter rose to 211.7 million US Dollars.
Tapestry Inc was founded in 1941 by Lillian Cahn and is based in New York, United States. Tapestry is a house of luxury lifestyle brands that has Coach, Kate Spade New York, and Stuart Weitzman brands under its portfolio.
Offering luxury accessories and clothing, the New York-listed company has about 5,500 employees worldwide and operates more than 340 stores.
For more recent news on the business, collections and executive changes of Tapestry Inc, click here.
Picture credit:Coach via Tapestry
Total sales at John Lewis, the company said in a statement, for the week ending August 12, 2018, were down 1.8 percent on the same week last year with hot weather in the first part of the week continuing to impact trade. Fashion sales were, however, up 0.7 percent.
The company added that womenswear had a stand out performance with sales up 7.3 percent. Company-owned brand womenswear sales were up 4.5 percent, while its womenswear brand Kin saw the strongest growth with sales up 67 percent.
The company’s electrical and home technology sales were up 0.9 percent and communications technology products were up 8.8 percent. Sales of vacuum cleaners rose 47 percent, while home sales were down 7 percent. John Lewis added that in gifts, cook and dine, outdoor cooking and party products continued to perform well, along with outdoor furniture where sales were up 18 percent.
Picture:John Lewis website
Susanne Ehnbåge, who was appointed the new CEO of Lindex in January, has commenced her new role at the fashion company. The company said in a statement that Ehnbåge has solid skills and experience in retail and in driving successful digital commerce and her driving forces, such as generating results and developing the business with a focus on customer experience, will be valuable assets for Lindex continued development.
“Retail, including Lindex, is undergoing an interesting development with a strong focus on digitalisation and meeting customers’ changing behaviour. Lindex journey has made a strong impression on me and it’s very exciting to lead the continuous development work,” said Ehnbåge in a statement.
Ehnbåge has joined Lindex from the NetOnNet Group, a Scandinavian home electronics retailer, where she was working since 2003 in a number of executive positions, most recently as the CEO of the Group since 2016.
Lindex, the company said, has focused on increasing its profitability and competitiveness throughout the year. To enhance the overall shopping experience, it is also focusing on the digital experience and strengthening its customer meeting and the company believes that customising the store portfolio by turning unprofitable stores around and offering new store concepts and services is also an important strategic focus.
Picture credit:Susanne Ehnbåge via Lindex website
Recruitment firm for senior fashion executives, Retail Executives Limited has appointed Darren Topp as Chairman. In a press statement, Retail Executives said that Topp will be responsible for the firm’s strategic direction, growth of the firm’s advisory board and board practice. The firm added that it will be announcing other senior industry hires over the next few weeks.
Commenting on Topp’s appointment, Richard Hollister Managing Partner of Retail Executives Limited said in a statement: “These are exciting times for the firm and Darren is key to its growth. His knowledge of the marketplace, experience at various operating levels, he can understand the issues facing retailers and assist with solutions.”
Topp has previously held senior roles at Marks & Spencer, before joining BHS and Outfit as COO, and later being promoted to Chief Executive Office in 2015. Most recently he was CEO at L.K.Bennett.
“I am delighted to join Retail Executives as Chairman and look forward to working with Richard and the team to build a new type of executive recruitment business that’s fit for today’s challenging retail climate,” added Topp.
Picture credit:Darren Topp via Retail Executives
Destination Maternity Corporation has announced the appointment of Andrea J. Funk to its board of directors, effective immediately. Funk, the company said, brings over 20 years of public and private company leadership experience, with a focus on financial expertise, strategic operations, corporate governance and manufacturing and has also led successful turnarounds and restructurings for multiple companies.
Commenting on Funk’s appointment to the board, Anne-Charlotte Windal, Destination Maternity’s Independent Chair of the board of directors, said in a statement: “As an experienced public company director and a former CEO of a global manufacturing and distribution company, Andrea brings key governance experience as well as a diverse skill set to Destination Maternity’s board. We believe she will leverage her extensive experience to help the company optimize operational execution and enhance shareholder value.”
Andrea Funk joins Destination Maternity’s board
Funk, the company added, currently serves on the boards of directors and audit committees of Crown Holdings and TouchPoint, Inc. She previously served as chief executive officer of Cambridge-Lee Industries, LLC, a copper-focused manufacturer and distributor, from 2013-2018, and also served as the chief financial officer and treasurer from 2011-2013. As CEO of Cambridge-Lee, she was responsible for the strategic direction of the company where she delivered record financial results including reduced manufacturing costs and decreased administrative costs.
“I’ve always admired Destination Maternity’s brand portfolio and look forward to being a part of Destination Maternity’s ongoing transformation,” added Funk.
Funk previously held senior positions at Carpenter Technology and Arrow International (now Teleflex). She started her career as an auditor with Ernst & Young.
Picture:A Pea in the Pod website
New York - Peter Williams, founder of British preppy fashion label Jack Wills, is reportedly leaving the company over a financially led disagreement with private equity partner.
Sources close to the matter cited by the ‘Sunday Times’ point out that Peter Williams is set to leave the company following a disagreement with BlueGem, the private equity firm that owns 60 percent of Jack Wills.
It’s worth recalling that Jack Wills’ co-founder Peter Williams returned to the company in 2015 to take the helm. A year later, in October 2016, Williams sealed a multimillion-pound buyout of the retailer with private equity firm BlueGem.
As reported by the weekend edition of the ‘Times’, BlueGem is expected to inject 10 million pounds of new equity while Searchlight Capital would put down another 10 million pounds. The fashion label is advised on this refinancing by AlixPartners and Ernst & Young.
The retailer has been ramping up its international expansion over the past twelve months, after securing 10 million pounds in funding (when HSBC increased its credit facility to the retailer to 30 million pounds.) Jack Wills is currently present in 130 countries.
Jack Wills’ founder expected to leave after taking the retailer back to profitability
A year into the partnership with BlueGem, the fashion retailer came back to the black, making an operating profit of 730,000 pounds for its fiscal 2017, compared to a loss of 13.8 million pounds the year before. Back then, the company said in a corporate statement that it said it had absorbed 1.7 million pounds of costs associated with the BlueGem acquisition. Jack Wills said then profit transformation had continued into 2017/18 thanks to ongoing efficiency programmes.
Fast-forward 18 months and BlueGem, which also owns upscale British department store Liberty of London, is understood to be in the process of organising a 20 million pounds refinancing of the fashion chain, according to the same sources.
Market sources told FashionUnited that part of this successful turnaround is due to the flurry of executive appointments followed the deal with BlueGem. Derek Lovelock was named non-executive chairman in late 2016 and tasked with leveraging its 30 years‘experience in the UK financial industry as lead adviser to Williams. Lovelock stepped down one year after the deal, being replaced by Rothschilds’ veteran Richard Wyatt. Commenting on the latter, Jack Will’s founder explained in a press release that “During that first year the business has undergone a significant revitalisation and we have hired some very exciting new talent.” Amongst those then new hires stood out the names of formerly at Burberry Claire Waugh as chief marketing officer, Mike Doyle as chief financial officer, David Wertheim (merchandising director) and Superdry’s Greg Roberts.as wholesale director.
Jack Wills' management changes over the last years
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Image :Jack Wills Official Website
ANALYSISNew York - Danish jewellery maker Pandora opened its namesake’s box last week when it warned that full-year sales will be lower than expected, tanking the stock to historical lows.
The Danish company expects sales will increase by between 4-7 percent this year, compared with the 7-10 percent it previously projected, reported the BBC in its online news edition. It warned in a communication issued last Monday that its profit margin on earnings before interest, tax, depreciation and amortisation will be lower than anticipated at about 32 percent, down from a prediction of 35 percent.
Søren Hansen, senior analyst at Danish bank Sydbank, commented the updated company’s profit outlook calling this a "large" profit warning, suggesting that - with various factors accounted for - "underlying sales are actually declining".
Similarly, Zuzanna Pusz, an analyst at Berenberg, said in a note that Pandora’s revised profit warning will "put the continuity of the management team and the board in question" since it's so soon after the new targets,. The new guidance is about 8 percent below market expectations but "given the uncertainty this creates around the mid-term financial targets announced earlier this year we could see an even more negative share price reaction," she said.
As revealed during the company’s last trading update, sales have dipped in its circa 600 stores in the UK and the US. The world's largest jeweller by production volume has seen a decreasing number of visits to its stores, especially those located in shopping centres. This decline has been particularly acute in the U.S., the largest market for the company.
On a related note, the company advanced in a statement that it intends to cut 397 of its employees, over half of them belonging to its Thai workforce – Pandora manufactures its jewellery across two factories in Bangkok and Lamphun, where it employs roughly 13,000 people.
On the back of the news, Pandora’s shares were trading down by almost 20 percent in Copenhagen, or as reported by Reuters, hitting the stock’s lowest level since May 2014.
ANALYSISNew York – Consumers’ habits have changed dramatically since the economic recession hit a decade ago. Online shopping has become the new normal, while more and more consumers turn into savvy thrifters. The result? Second-hand apparel sales are estimated to surpass 40 billion dollars by 2022.
Consumers have increasingly turned to second-hand shopping – also known as ‘thrifting’ -, driven by convenience, environmental concerns and sustainability’ goals. As a result, the re-sale industry is expected to double its sales to 41 billion dollars by 2022, according to independent research firm GlobalData.
This upward trend hasn’t been overlooked by investors: the three leading online fashion resellers in the U.S. have obtained a total investment of more than 561 million dollars over the past years: ThredUp has fundraised 130 million dollars, while luxury-focused The RealReal has secured 288 million dollars. The third contender, peer-to-peer second hand e-tailer Poshmark has gotten 153 million dollars in funding since it was created in 2011.
Millennials’ shopping habits and the advance of online boost second hand apparel industry
It’s no surprise that financiers are looking to back online re-selling, a niche that is driven by millennials seeking quality bargains and highly committed to environment-friendly, sustainable and ethical trade. A 2018 industry report compiled by ThredUp showed that 44 million women shopped resale in 2017 compared to 35 million the year prior. The growth of online consignment is here to stay: previously loved clothes and accessories are slated to take up nearly one-third of our closets by 2027.
Analysts from Dun & Bradstreet concur that the re-sale industry has consistently demonstrated strong growth with annual revenues of circa 17 billion dollars in 2016. Furthermore, the industry has experienced an average growth of 7 percent a year for the past two years, and, as data collated by IBISWorld shows, is expected to increase at an annualised rate of nearly three percent until the year 2021.
Winmark, an U.S.-based franchiser of five retail businesses that specialise in buying and selling used goods, points out that 50 of the largest U.S. companies account for about 30 percent of sales. “Despite market competition, the resale industry remains lucrative for its ability to offer both consumers and store owners a variety of benefits over traditional retailers,” explains the company in a corporate release.
From online to brick-and-mortar: second-hand resellers’ new frontier
It’s worth recalling that The RealReal announced the closing of a 115 million dollars round of Series G funding, led by PWP Growth Equity in late July. The RealReal announced in a press release that the last investment took the total funding to a whopping 288 million dollars, making the brand the highest-funded retailer in the resale and luxury consignment market.
A big chunk of that investment will go to the expansion of the company’s physical stores network. Barely days after announcing the new round of funding, The RealReal opened its second brick-and-mortar shop in Los Angeles ( the first one is in New York.) The brand’s CEO and Founder Julie Wainwright explained in a corporate announcement the company’s intentions to use the new funding to grow its network of real-life retail, expand its innovative online-offline inventory technology and open new e-commerce fulfilment centres around the country.
Chip Baird, co-founder and partner of PWP Growth Equity, joined The RealReal’s board of directors as part of the deal, highlighting that TheRealReal is “redefining the consignment marketplace and how consumers acquire luxury goods. With a continued move towards e-commerce and the rise of second-hand good purchases, The RealReal is uniquely positioned to benefit from these shifting trends. We are excited to partner with the company as they work to bring their innovative marketplace to even more consumers and consignors.”
Chasing down the same winds, non-profit Goodwill NYNJ, launched a new shopping concept earlier this summer. Katy Gaul-Stigge, Goodwill NYNJ CEO and President says: "We designed Curated as a distinct shopping experience to introduce shoppers concerned with the waste and pollution that fast fashion causes, to a stylish, affordable alternative. Because Curated is part of Goodwill, conscious shoppers triple their impact. Their purchases create jobs locally, result in positive environmental outcomes for the global community, and they find unique pieces that keep New Yorkers ahead of the trends."
Image: courtesy of the RealReal's store in LA, California
Madrid - Dolores Promesas has closed the first half of its current fiscal year selling 10 percent more. The Spanish women's fashion firm is thus close to its goal of closing 2018 with circa 10 million euros in sales.
Dolores Promesas has increased its sales by 10 percent in the first half of the year, advancing in a statement that expects to close the year with an increase of 12 percent of turnover.
As reported by Europa Press, the CEO of Dolores Promesas, Javier Lapeña, believes that this is a good moment of growth, calling it "perfect" to start the renewal process in which the company is immersed. So much so that Lapeña expects to reach 9.85 million euros of turnover, the news agency says.
Dolores Promesas is nearing its goal of 10 million sales
Everything indicates that Dolores Promesas will fulfill what was promised: the Spanish fashion firm ended the year 2017 selling 11 percent more than in the previous year. Its goal for 2018 was to continue growing, specifically 23 percent to reach 10 million euros in turnover.
Following in the footsteps of other female fashion firms from Spain, Dolores Promesa has been considering for some time opening its capital to financial partners, remind market sources consulted by FashionUnited.
In the face of this new stage, Dolores Promesas has been immersed in a renewal process for months, both structurally and regarding its market strategy.
This past March the company began redesigning its stores, at the same time that it expanded its range of products and, in a bet on the future, adjusted its prices to reach a wider public.
Market analysts say the company is well on its way to attract the attention of foreign investors. In this regard, it’s worth recalling that Dolores Promesas crossed Spanish borders last year to open its first international store in the fashion capital of the world, Paris.
Image: Lookbook OI18, Dolores Promesas Corporate Web
Sports Direct International plc has announced the acquisition of the business and assets of House of Fraser from the administrators of House of Fraser Limited, House of Fraser (Stores) Limited and James Beattie Limited, the House of Fraser group's main operating companies, for a cash consideration of 90 million pounds (114.9 million dollars).
Pursuant to the transaction, the company said that the Group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business.
House of Fraser appoints administrators as rescue talks fail
In a statement sent to the Luxemburg Stock Exchange today morning, House of Fraser announced that its discussions with interested investors and its main secured creditors did not conclude in a solvent solution. Therefore the directors of the group’s operating companies, House of Fraser (Stores) Limited, House of Fraser Limited and James Beattie Limited have decided to seek the appointment of administrators from Ernst & Young LLP.
Commenting on the development, Alex Williamson, Chief Executive of House of Fraser, said in a statement: “We are hopeful that the current negotiations will shortly be concluded. In the two weeks since the Cenbest and C.Banner transaction ceased, the directors have brought forward a number of potential buyers and the Group’s financial advisors have run a comprehensive M&A process to identify and then develop other third party interest that has culminated in the senior secured creditors leading negotiations with parties at a critical pace.”
House of Fraser added to the statement that significant progress has been made towards completing a sale of the Group’s business and assets, the proposed administrators are expected to continue to progress those discussions to conclude a transaction shortly after their appointment.
House of Fraser falls into administration
“This has been an extraordinarily challenging six months in which the business has delivered so many critical elements of the turnaround plan. Despite the very recent termination of the transaction between Cenbest and C.Banner, I am confident House of Fraser is close to securing its future,” added Frank Slevin, Chairman of House of Fraser.
Last month, the company’s voluntary arrangement (CVA) proposals were approved by the company’s creditors, which included closure of 31 of its 59 department stores, resulting in about 6,000 job losses. In absence of funds ahead of the crucial Christmas trading, the only other alternative left for the business, according to industry experts, was to plunge into administration.
Commenting on the fall of the iconic department store and other high-street retailers in the UK, Richard Lim, Chief Executive, Retail Economics said: "This is a real blow to the high street. The loss of yet another iconic retailer highlights the huge difficulties facing the industry. Of course, individual circumstances need to be accounted for. The demise of House of Fraser in many ways has been the result of poor leadership, paralysis in innovation and crippling levels of debt.”
Image: Sports Direct website screenshot