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Just after three months into the position, John Targon, creative contemporary director at Marc Jacobs has decided to call it quits.
Confirming the development, spokesperson from LVMH Group, owner of the brand, told FashionUnited: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.”
The Baja East label co-founder had joined Marc Jacobs on February 2, 2018, reporting into the company’s CEO, Eric Marechalle. Targon co-founded Baja East with Scott Studenberg and has earlier served the director of wholesale for menswear at Burberry, followed by Céline and Prada.
According to a Fashion Network report, Marc Jacobs has been struggling to revive brand sales since 2015, after the parent company merged it successful Marc by Marc Jacobs with the main line and roped in current CEO Marechalle from Kenzo aiming to reposition the label. The company also dropped its men’s line in last year and dropped its license agreement with Staff International SpA. Marc Jacobs also pulled shutters on number of outlets with its last London store in Mayfair closing in January. Other store locations in Europe are set to shut operations this year, which management has termed as a part of a larger restructuring of the brand.
Picture:Marc Jacobs website
The OTB Group founded by Renzo Rosso, reported a 2.4 percent decrease in turnover at constant exchange rates to 1.52 billion euro (1.87 billion dollars), reports MF Fashion. Quoting the company statement, the report said, overall increase in margins, together with cost optimization actions, led the company to achieve EBIT of 21.5 million euros (26.3 million dollars) against the 5.1 million euros (6.2 million dollars) in the previous year, an increase of over 16.4 million euros (20.1 million dollars).
The net financial position remained positive at 84 million euros (103 million dollars), up 92 million euros (112.8 million dollars) against 2016. The consolidated net profit, equalling 3 million euros (3.6 million dollars), the company said, was in line with the previous year, despite a tax burden of one-off charges of approximately 7 million euros (8.5 million dollars) owing to regulatory changes in the US and Japan.
Marquee brand Diesel’s downward trend continues
The company having brands such as Diesel, Marni, Maison Margiela, Viktor & Rolf, Paula Cademartori, Staff International and Brave Kid, under its fold, did reveal individual results for its these brands but said that it has been focusing on organizational transformation within a constantly evolving macroeconomic developments. For Diesel, the group initiated steps to improve on product and marketing, which included upgrading of the collections combined with a communication complementing the brand’s DNA. However, the troubled flagship label that saw its artistic director Nicola Formichetti, leave the business after a four-year stint at the house, continued to see a downward trend. OTB has not appointed a successor to Formichetti yet.
According to the MF Fashion report, while Marni saw a strong momentum following a renewed offer in women's and men's ready-to-wear and positive trend in accessories category, the Marni market traveling project received global visibility and improved sales. Maison Margiela also witnessed positive momentum, due to focus on omnichannel growth and is organic expansion of its business, including licenses. Both these brands reported a double digit growth, especially in Asia.
For Viktor & Rolf, the year was marked with exclusive new collaborations that opened up new market segments for the brand and its bridal and evening wear collections received an encouraging response. Paula Cademartori, known for her bags, has taken up a new shoe project and has experimented with her first retail format. During the year under review, Staff international and Brave Kid also showcased positive trading.
Former House of Fraser’s executive and experienced fashion retail expert John King has been appointed CEO at Australian department store operator Myer.
King held the reins at British fashion label House of Fraser, a business he restructured and eventually sold to Sanpower in 2014.
Commenting the appointment, Myer Executive Chairman Garry Hounsell said: “John brings over thirty years of highly relevant retail experience across department stores, specialty retailing, premium global brands, wholesale apparel and discount retail.”
In turn, King said: “I am excited to lead this iconic Australian Company, which like all global retailers, is facing significant change in both the retail environment and consumer shopping habits. I’m looking forward to the challenges and opportunities of this role.”
King will be facing challenging times, as the retailer currently goes through the woes of a too heavy physical network at times when digital competition nothing but increases. Additionally, its largest shareholder, Solomon Lew’s Premier Investments (which owns a 10.8 percent stake), is demanding The Myer board to replace chairman and directors.
The retailer reported a loss of 476.22 million Australian dollars for first half, driven largely by a 515 million Australian dollars impairment, with sales down 3.6 percent to 1.72 billion Australian dollars.
The board of directors of Salvatore Ferragamo S.p.A. has elected Ferruccio Ferragamo as Executive Chairman and James Ferragamo as Vice Chairman of the group. The company said in a statement that the Chairman Ferruccio Ferragamo has been granted full powers and authority to manage the company. The company also appointed Micaela Le Divelec as new Chief Corporate Officer delaying the decision to name a new chief executive officer after Eraldo Poletto left the company in March.
The company’s board now consists of Ferruccio Ferragamo, Executive Chairman, James Ferragamo, Vice Chairman, and directors Leonardo Ferragamo, Giovanna Ferragamo, Diego Paternò Castello Di San Giuliano, Angelica Visconti, Francesco Caretti, Raffaela Pedani, Peter K.C. Woo, and independent directors Umberto Tombari, Chiara Ambrosetti, Marzio Alessandro Alberto Saà and Lidia Fiori.
The board also appointed the members of the internal committees and the lead independent director. The control and risks committee, competent also for transactions with related parties and sustainability, the company said, is entirely composed by independent directors Marzio Alessandro Alberto Saà (President), Umberto Tombari and Chiara Ambrosetti. The remuneration and appointment committee is composed by independent directors Umberto Tombari (President), Marzio Alessandro Alberto Saà and Lidia Fiori and the product and brand strategy committee, the company added, is composed Ferruccio Ferragamo (President), Diego Paternò Castello di San Giuliano, Angelica Visconti and James Ferragamo.
The board confirmed Marzio Alessandro Alberto Saà as Lead Independent Director. Divelec and James Ferragamo, have been designated as Strategic Managers of the company together with CFO Ugo Giorcelli.
Picture:Salvatore Ferragamo Group website
ANALYSIS Sales at fast fashion retailer Boohoo are expected to almost double this year, fuelled by renewed investment in its infrastructure and strong PrettyLittleThings’ popularity.
The City expects 95 percent growth in revenues when the company reports full-year results on Wednesday, coming in at around 574.6 million pounds, reports ’CITY A.M.’ The market’s consensus estimate is for pre-tax profits to come in at circa 47 million pounds.
It’s worth recalling that Boohoo has been investing in infrastructure, with previous guidance indicating that 62 million pounds would be invested this year. Another 40 million pounds were earmarked for further development.
"Given the sales trajectory of the company we are now entering a phase of increased capital expenditure, as it continues to build out its infrastructure to help facilitate future growth," said analysts at Shore Capital.
In this regard, analysts at Investec said that the momentum behind the brand was likely to help Boohoo maintain sales growth, despite headwinds in the wider clothing market. "With customer acquisition costs falling across the industry, market commentators suspect more investment into fulfilment overseas may be necessary," analysts said.
The broker added that sister brand PrettyLittleThing is relatively immature, and could offer the company more opportunity for growth as well as operating efficiencies.
Furthermore, added other market sources, PrettyLittleThing, which 66 percent was acquired by Boohoo in 2016, has become the company’s engine of growth.
Image: Summer 2018, Boohoo Web
Myer Holdings Limited has appointed John King as Chief Executive Officer and Managing Director.
Commenting on King’s appointment, Myer Executive Chairman, Garry Hounsell said in a statement: “John brings over thirty years of highly relevant retail experience across department stores, specialty retailing, premium global brands, wholesale apparel and discount retail. During his career, John has gained significant experience across all aspects of merchandise as well as store operations, e-commerce, sourcing and supply chain. John will bring a new perspective to Myer and has been given a full mandate by the board to deliver an improvement in financial performance.”
John King takes over as Myer CEO
Hounsell further said that John has also led the successful transformation at UK department store House of Fraser from 2006, culminating in a sale to Chinese conglomerate Sanpower in 2014. “Over the course of his tenure at the House of Fraser, John and his team consistently grew revenues, differentiated the product offering and launched a successful online business, improved EBITDA and reduced the company’s debt. They also refurbished more than 70 percent of the property portfolio and implemented a vision, values and culture program,” added Hounsell.
For the last three years, King has been living and working in the United States where he has consulted to a variety of US-based retailers and has been actively involved in a number of start-ups.
“I’m excited to lead this iconic Australian company, which like all global retailers, is facing significant change in both the retail environment and consumer shopping habits. I’m looking forward to the challenges and opportunities of this role,” said King, commenting on his new role at Myer.
ANALYSISBritish discount fashion retailer Primark keeps expanding its footprint across the Pond, with the opening of their ninth store in the U.S. around the corner. However, the affordable fashion chain has yet to find the ‘right fit’ for the North American market, highlight industry analysts.
Primark will be opening a large-format shop at Kings Plaza Shopping Centre in Brooklyn, New York, on May 16. This is the ninth Primark store in the country since it first set foot in the market in late 2015, armed with an ambitious internalisation plan and a 250 million pounds expansion budget.
The 57,900-sq.-ft. Brooklyn location will feature women’s, men’s and children’s clothing and accessories, along with home goods, beauty products and gifts and, according to the company, it will reflect Primark’s latest contemporary store design.
Primark to try out new supply chain with Florida’s store in 2019
Additionally, Primark will have another store in Florida – planned for 2019. The affordable fashion retailer’s Chief Executive George Weston, told Reuters that they expect the Florida store in Sawgrass Mills to provide the opportunity to trade in a different type of retail environment, in both mall format and geographic location, from its existing stores. “It’s a great opportunity to test that market in a mall which is actually the busiest tourist attraction in the whole state after Disney World,” he said, noting 45 million people visit every year.
Primark is “refining its model in the U.S.”
“We’re quietly encouraged by what we’re seeing so far,” said Weston in a call with analysts earlier this month. “We continue to learn ... but it’s still very early days.” The company’s CEO null as well that Primark is still “refining its model in the U.S.”
Alex Smith, analyst at Barclays, agrees: “The management went in with a footprint too large relative to the current brand awareness in the U.S.” Smith highlighted how Primark is now shrinking some of its U.S. locations.
Barclays recently upgraded ABF, as analysts at the bank believe that Primark can grow its green business in the US to the same size as its European division in the next five to ten years, reported the ‘Finacial Times’.
“Consistent price leadership, strong fashion credentials and breadth of range positions the group favourably to take share,” Barclays told clients. “US fast fashion remains underdeveloped while value is also making ground.”
Photo:Swimsuits Collection, Summer 2018
Steve Madden’s net sales in the first quarter increased 6.2 percent to 389 million dollars, while gross margin was 36.2 percent. Adjusted gross margin in the first quarter of 2017 was 36.6 percent. Net income was 28.7 million dollars or 0.50 dollar per diluted share, compared to 20.2 million dollars or 0.35 dollar per diluted share, in the prior year's first quarter.
Commenting on the company’s performance, Edward Rosenfeld, the company’s Chairman and CEO said in a media statement: “We are off to a good start in 2018, with first quarter results that exceeded our expectations. As we look ahead, we are confident that, based on the power of our brands and the strength of our business model, we are well-positioned to drive sales and earnings growth in 2018 and beyond.”
Q1 operating income increases 36.6 mn dollars
Operating income for the quarter totalled 36.6 million dollars or 9.4 percent of net sales, compared to 30.8 million dollars or 8.4 percent of net sales, in the same period of 2017. Adjusted operating income was 39.6 million dollars or 10.2 percent of net sales compared to 39.5 million dollars or 10.8 percent of net sales, in the same period of 2017. Adjusted net income was 31 million dollars or 0.54 dollar per diluted share, compared to 27.5 million dollars or 0.47 dollar per diluted share, in the prior year's first quarter.
Net sales for the wholesale business increased 5.8 percent to 331.2 million dollars, with strong gains in both the wholesale footwear and wholesale accessories businesses. Gross margin in the wholesale business was 32.6 percent compared to 32.4 percent last year. Adjusted gross margin in the wholesale business in last year’s first quarter was 32.8 percent was the result of strong growth in the company’s private label business, which carries a lower gross margin.
Retail net sales increased 8.6 percent to 57.9 million dollars. The company said, same-store sales decreased 1.2 percent in the quarter as the result of a decline in the boot category. Retail gross margin decreased to 56.7 percent compared to 58.7 percent in the same quarter of the prior year due primarily to deep discounting of slow-selling inventory in the boot category.
During the first quarter, the company opened two stores and closed five stores in the United States. The company also opened one store in Mexico and one store in China and ended the quarter with 207 company-operated retail locations, including six Internet stores. In addition, during the first quarter, the company opened two concessions in China and ended the quarter with 40 company-operated concessions in international markets.
FY18 net sales expected to rise between 5 to 7 percent
For fiscal year 2018, the company continues to expect net sales will increase 5 percent to 7 percent over net sales in 2017 and diluted EPS for fiscal year is anticipated in the range of 2.55 dollars to 2.62 dollars. The company expects adjusted diluted EPS to be in the range of 2.60 dollars to 2.67 dollars.
Steve Madden’s board of directors has declared a quarterly cash dividend of 0.20 dollar per share, which will be paid on June 29, 2018, to shareholders of record at the close of business on June 12, 2018.
Picture:Facebook/Steve Madden EU
Burberry has appointed Gavin Haig as the company’s Chief Commercial Officer, effective April 23, 2018. The company said, in this newly created position, Haig will be responsible for all regions in which Burberry operates. He will report to Marco Gobbetti, Chief Executive Officer of Burberry Group plc.
Commenting on Haig’s appointment, Gobbetti said in a statement: “I am delighted to announce the appointment of Gavin Haig to the newly created position of Chief Commercial Officer. Gavin has extensive experience in global luxury retail, which will be invaluable as we implement our strategy.”
Haig joins Burberry after four years at Belstaff, where he served as CEO. He previously spent a decade at Cartier, where he led commercial teams globally as managing director international. He has also held senior positions at Alfred Dunhill and Wedgwood.
US shoe maker Skechers said on Thursday its Q1 net profit increased 25.2 percent. Revenues increased by 16.5 percent from the same period last year.
The company’s net profit for Q1 2018 was 117.7 million US dollars, up from 94 million US dollars a year earlier. Revenues increased to 1250 million US dollars.
Skechers USA, Inc. Was founded 1992 and is based in Manhattan Beach, California, United States. The New York-listed company offers two distinct categories: A lifestyle division and performance footwear.