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VF Corporation said on Friday its Q2 revenue for 2018 increased by 15 percent, while net income increased by 31.3 percent from the same period last year.
The company’s sales in Q2 2018 were 3.9 billion US Dollars, up from 3.3 billion US Dollars a year earlier. Net income rose to 507 million US Dollars. Earnings per share were 1.26 dollars on a reported basis. On an adjusted basis, earnings per share increased 19 percent or 21 percent in constant dollars to 1.43 dollars, including an 0.08 dollar contribution from acquisitions.
Updating its outlook for fiscal year 2019 on an adjusted basis, the company said, revenue is now expected to be at least 13.7 billion US Dollars, reflecting an increase of at least 11 percent, compared to the previous expectation of revenue between 13.6 billion US Dollars and 13.7 billion US Dollars. By segment, revenue for outdoor is now expected to increase 7 percent to 8 percent versus the previous expectation of a 6 percent to 8 percent increase; revenue for active is now expected to increase 14 percent to 15 percent versus the previous expectation of a 13 percent to 14 percent increase; revenue for work is still expected to increase more than 35 percent; and, revenue for jeans is now expected to decline 1 percent to 2 percent versus the previous expectation of revenue in line with the prior year.
International revenue is still expected to increase between 12 percent and 13 percent. Direct-to-consumer revenue is now expected to increase between 12 percent and 14 percent versus the previous expectation of an 11 percent to 13 percent increase. Digital revenue is still expected to increase more than 30 percent. Adjusted Gross margin is still expected to approximate 51 percent and adjusted earnings per share are now expected to be 3.65 US Dollars, an increase of 16 percent compared to the previous expectation of 3.52 US Dollars to 3.57 US Dollars.
VF Corporation was founded in 1899 by John Barbey and is based in Greensboro, North Carolina, United States. Founded as the Reading Glove and Mitten Manufacturing Company in 1899, VF Corporation today is one of the world’s largest apparel, footwear and accessories companies having brands such as Vans, The North Face, Timberland, Wrangler and Lee under its portfolio.
Offering apparel, footwear and accessories, the New York-listed company has about 69,000 employees worldwide.
For more recent news on the business, collections and executive changes of VF Corporation, click here.
On October 11, Jack Wolfskin opened a franchise store in Dubai Mall. The company said in a statement that the store located in the large sports and lifestyle section on the second floor of the Dubai Mall, offers outdoor and everyday outdoor collections for men, women and children, as well as Wolfskin Tech Lab collection.
Commenting on the new store opening, Johannes Hell, Head of EMEA sales distribution at Jack Wolfskin said in a statement: "The Dubai Mall is the most important show window in this market and the most successful retail centre. We decided in favour of this location with a view to becoming the region´s first stop for innovative and sustainable outdoor products, as offered by the Jack Wolfskin brand."
Jack Wolfskin range is currently available in more than 900 franchise stores and over 4,000 points of sale across Europe and Asia. The company is a member of Fair Wear Foundation, a Bluesign system partner and has also been a member of the “Zero Discharge of Hazardous Chemicals” initiative since 2012. The brand is also the official provider of apparel for the Innsbruck Alpine School.
Picture credit:Jack Wolfskin store via Hartmut Schultz
Louis Vuitton has confirmed through an email to FashionUnited that Catherine Lacaze has been roped in as Director for jewellery and watches. According to WWD, she would be reporting to Anthony Ledru, Executive Vice President global commercial activities at Louis Vuitton.
Lacaze steps into the position vacated by Hamdi Chatti, who left the business after serving the company for nine years. According to Lacaze’s LinkedIn profit, before joining Louise Vuitton, she was vice president marketing with Tiffany & Co., and was earlier associated Harry Winston as global VP marketing and communications jewellery and Cartier as assistant VP of jewellery marketing in New York as well as assistant vice president marketing in North America.
Earlier this year, Louis Vuitton, a part of luxury conglomerate LVMH Moët Hennessy Louis Vuitton appointed Francesca Amfitheatrof as Artistic Director of watches and jewellery, who also joined the company from Tiffany & Co.
Perry Ellis International, Inc. announced that based on the vote tally from the special meeting held on Thursday, the company’s shareholders approved the proposed transaction with founder George Feldenkreis in which Perry Ellis will become a private company through a 437 million dollars transaction.
Under the terms of the Feldenkreis merger agreement, Perry Ellis’ unaffiliated shareholders will receive 27.50 dollars per share in cash upon closing. The company said, purchase price represents a premium of approximately 21.6 percent to Perry Ellis’ unaffected closing stock price on February 5, 2018, the last trading day prior to George Feldenkreis announcing his proposal to take the Company private.
Earlier this year the company had revealed Feldenkreis’ plans to buy back the company, after which, the Perry Ellis also received a counter offer from Randa Accessories. However, the company finally decided to go ahead with the deal offered by Feldenkreis.
Picture:Perry Ellis website
Caleres has announced the acquisition of Vionic Group for 360 million dollars. The company said that this acquisition of Vionic allows Caleres to continue to expand its brand portfolio and gives it additional access to the growing contemporary comfort footwear category. The acquisition of Vionic Group is being funded through the company’s revolving credit agreement.
“The acquisition of Vionic is another fantastic opportunity to add a growing brand – with strong consumer loyalty and a solid cultural fit – to our brand portfolio,” said Diane Sullivan, CEO, President and Chairman of Caleres in a statement, adding, “We’re looking forward to supporting the brand in their continued success and to sharing our extensive infrastructure, including our expertise in product design, brand development and global sourcing.”
Vionic’s trailing 12-month sales of approximately 180 million dollars, the company added, reflect a compounded annual growth rate of more than 20 percent over the past six years. The brand derived approximately 25 percent of sales via ecommerce sites over the past 12 months, while international sales contributed approximately 8 percent to total sales.
“Caleres is a great leader in the industry, and we are excited to join their family of outstanding brands. At Vionic, we challenge ourselves every day to reimagine style and science, in order to bring joy to people’s lives – starting with their feet – and we’re delighted to be joining a company with a similar purpose,” added Chris Gallagher, co-founder and CEO of Vionic Group.
American shoe maker Skechers said on Thursday that its Q3 revenue for 2018 increased 7.5 percent. Profit dropped by 1.7 percent from the same period last year.
The company’s sales in Q3 2018 were 1,17 billion US dollars, up from 1,09 billion US dollars a year earlier, while net earnings declined to 90.7 million US dollars. The profit margin of the company slid to 7.7 percent compared to 8.4 percent a year ago.
For the fourth quarter of 2018, the company expects to achieve sales in the range of 1.100 billion US dollars to 1.125 billion US dollars, and diluted earnings per share of 0.20 US dollar to 0.25 US dollar.
Skechers USA, Inc was founded in 1992 by Robert Greenberg and is based in Manhattan Beach, California, United States. From a logger boot for men as first shoe in 1992, the company's product range has grown to over 3000 styles for women, children and performance.
Offering lifestyle and athletic footwear, the New York-listed company has over 11,000 employees worldwide and operates more than 2600 stores.
For more recent news on the business, collections and executive changes of Skechers USA, Inc, click here.
Picture:Skechers corporate website
The United States topped this year’s ranking of the world’s most competitive economies, followed by Singapore and Germany. Made by the World Economic Forum (WEF), the list is based on a survey with 12,274 global business executives in 140 countries. Almost 30 points and 80 ranks separate the United States from Argentina, the worst performing economy of the group.
The 20 most competitive economies, according to the World Economic Forum
The results demonstrate a strong correlation between competitiveness and income level. All 20 countries in the top 20 have high-income economies, and the top 40 only includes three low-income economies: Malaysia (25th), China (28th) and Thailand (38th).
“Governments must support those who lose out to globalization”
One of the study’s main findings is that, while more open economies tend to be more innovative and, therefore, more competitive, openness doesn’t always mean a “win-win” situation between countries. “It is at times a ‘win-lose’”, reads the report. However, countries which try to deal with the situation by adopting protectionist measures are actually counterproductive for sustained economic growth, according to the WEF.
The organization advises countries to focus on improving the conditions of those who are negatively impacted by globalization, rather than favoring protectionism. “Combining GCI data with other sources suggests that redistributive policies, safety nets, investments in human capital, and more progressive taxation could help reduce inequality without compromising a country’s level of competitiveness.”
Technology is less widespread than one would assume
According to WEF’s report, more than half of humanity has never gone online. While the world counts 7.6 billion inhabitants, there are only 4.5 billion smartphones in use. “The promise of leveraging technology for economic leapfrogging remains largely unfulfilled”, says the organization. 77 of the 140 economies studied struggle to innovate, as innovation capacity remains extremely limited, localized or restricted to few sectors.
Equality is key
Last but not least, the study revealed there is no trade-off between equality and economic growth: “it is possible to be pro-growth and pro-equity, as shown by the strong performance of several northern European countries in terms of both competitiveness and inclusion”, says WEF. The organization concluded its report by stressing the need for a more holistic model of economic progress, one which “promotes higher living standards for all, respects planetary boundaries, and does not disadvantage future generations”.
Photo: Pixabay, courtesy of WEF
The troubled fashion retailer, Gerry Weber International Ag currently employing around 6,500 people expects further redundancies as a part of its restructuring process after the company sought the restructuring opinion to verify the company's capability for a successful restructuring and to support the current substantial transformation process. The company said, according to the opinion, the fundamental core business model of Gerry Weber Group is sustainable and viable for the future.
However, the company’s outgoing CEO Ralf Weber said in a statement: "We are glad to receive the confirmation, that our core business model is successful and viable for the future. We will however have to account for the dramatic changes in our markets and the strongly changing purchase behaviour of our customers. This will inevitably result in deep cuts both in personnel as well as the corporate structure."
The fashion company from Halle in Westphalia having a portfolio of brands including the core brand Gerry Weber as well as the Hallhuber, Samoon and Typhoon has been witnessing a downward sales and profit trend for some time. The company added that it is currently engaged in a constructive dialogue with its financing partners, to ensure the ongoing financing of the group and to place it on a sustainable foundation.
"The expert opinion, combined with the ongoing Performance Program, provides us with the greatest possible transparency for the dialogue with our financing partners and the ongoing restructuring process," added Weber.
London - Hammerson’s Bullring marks its 15th birthday this month and new research reveals that the shopping centre attracts more than 362 million pounds of indirect investment to the local economy every year, highlighting its positive impact on the city of Birmingham.
The ‘True Value of Retail’ report commissioned by Hammerson and undertaken by Envoy Partnership in conjunction with real estate firm JLL, is part of the property company’s strategy to understand and measure the socio-economic contribution of its assets, both now and over their lifetime, as well as setting a baseline to measure future progress.
Key highlights from the report states that the Bullring Estate, which includes the Bullring, Grand Central and Link Street across Birmingham, employs 4,322 full time employees, with local people accounting for 85 percent of all jobs, and 50 percent of all jobs going to under 25s. With the Bullring Estate’s wage bill totalling 88 million pounds per annum, while the training it undertakes with its employees is valued at more than 4 million pounds a year.
The shopping centres also generates more than 22 million pounds in business rates, making it vital to the local economy.
Commenting on the findings, Mark Bourgeois, managing director UK and Ireland for Hammerson, said in a statement: “Birmingham is a thriving city and, as this research clearly identifies, the Bullring Estate plays a central role in its success. The indirect investment of more than 362 million pounds highlights the scale of the positive impact the Bullring Estate has on the city.”
Bullring attracts more than 362 million pounds of indirect investment to Birmingham’s economy every year
Bourgeois, added: “More than that, this research highlights how retail and leisure destinations act as economic hubs for cities. This is a central theme of Hammerson’s portfolio strategy, from the line-up of brands to driving value in the wider community. The Bullring Estate shows this being done to best effect, and we are very proud of the contribution it has made to Birmingham over the last 15 years, and will continue to make in the future.”
Birmingham City Council leader, Ian Ward, commented: “These figures, and the sheer popularity of the Bullring, confirm what an important role the Bullring Estate plays, not just in Birmingham but in the region as a whole.
"In the 15 years since the Bullring opened its doors, Birmingham has been transformed into one of the UK's foremost retail centres. And that's not just good news for dedicated shoppers - it's absolutely vital to the growing city economy, playing a huge role in the economic wellbeing of our citizens."
The Bullring is one of Europe’s most successful shopping and dining destinations with a footfall of over 36 million a year. On opening, Bullring brought 53 new brands to the city, with more than 50 of the original brands continuing to trade there, including Selfridges and Zara. Over the last 15 years, the numbers of restaurants and retailers at the centre have doubled.
Hammerson owns and manages European destinations focused on flagship retail destinations and Premium Outlets. As at end of June 2018, its portfolio of retail property had a value of 10.6 billion pounds and included 22 prime shopping centres, 15 convenient retail parks and investments in 20 premium outlet villages, through our partnership with Value Retail and the VIA Outlets joint venture. Other key retail locations includes Bicester Village, Dundrum Town Centre in Dublin and Les Terrasses du Port in Marseille.
Images: courtesy of Hammerson
Dutch discount retail chain Hema has been acquired by Ramphastos Investments, the investment company owned by Dutch billionaire Marcel Boekhoorn. The company, which is owned by British investment firm Lion Capital LLP since 2007, intends to improve its profitability, grow its e-commerce and expand internationally over the next few years. The transaction value was not disclosed.
“I am very pleased that Ramphastos is becoming the new owner of Hema. This is the best scenario for Hema, our customers, staff and franchisees”, said Hema’s CEO, Tjeerd Jegen, in a statement. Bookhorn added: “Hema is an iconic brand with fantastic international opportunities, but there are also sufficient prospects for growth in the Netherlands. The acquisition fits my ambition to let businesses grow. Together with Hema’s staff and its franchisees, I want to support Hema in becoming a global brand”.
Hema aims to expand internationally
Founded in 1926, Hema has 750 stores in nine countries, but Holland and Belgium are its core markets. Its wide product range includes apparel, make up, stationary and home decor, among other categories. The Dutch retailer added in its statement that it is looking for opportunities to increase the number of international partners to accelerate its expansion overseas.
Lion Capital has been trying to sell Hema for quite some time. Several parties manifested their interest in the business, but negotiations didn’t go through. Earlier this year, Belgian investment company Core Equity got very close to becoming Hema’s new owner, but failed to reach an agreement with franchisees over e-commerce costs.
With an estimated net worth of 1.3 billion euro, Boekhoorn invests in more than 30 companies from a wide array of sectors, including Dutch newspaper De Telegraaf, mobile telecommunications company Telfort and even the football team N.E.C. Nijmegen. He founded Ramphastos Investments in 1994, after a successful career at Deloitte & Touche.
Photo: Hema newsroom