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Following the resignation of Tiger of Sweden CEO Hans-Christian Meyer on February 18, 2019, IC Group A/S has appointed the brand’s Chief Marketing Officer Moa Strand, as interim CEO. The company said in a statement that it has already embarked on the recruitment process for a new CEO of Tiger of Sweden.
In its recent trading update on February 6, the company said that it expects a minor revenue reduction measured in local currency for the full year, while EBIT margin is expected at a level of 1 to 2 percent prior to non-recurring costs in respect of the transformation of the group. For Tiger of Sweden, the company added, a minor revenue reduction measured in local currency and a moderate decline in nominal earnings are expected compared to prior outlook of increase in revenue and nominal earnings at the same level as last financial year.
Picture:Tiger of Sweden website
Gerry Weber International Ag has appointed Urun Gursu as member of the managing board of the Group. Joining on March 1, 2019, the company said, as Chief Product Officer (CPO), Gursu will be responsible for the area ‘product and creation’ for Gerry Weber brands. Additionally, he will lead the newly established central group purchasing, including the foreign offices and inbound logistics.
“We are delighted, to very soon start working with Urun Gursu, an extremely well-versed and successful manager in the fashion industry,” said Johannes Ehling in a statement, adding, “In the past months, Gerry Weber has successfully repositioned itself, despite all structural challenges. Urun Gursu possesses deep expert knowledge in vertical value adding processes. Together with Florian Frank and myself, we will drive the repositioning of Gerry Weber substantially forward.”
Gursu joins the company after holding the position of head of merchandising men Europe at Esprit GmbH, Düsseldorf, where he was responsible for the majority of the worldwide menswear value chain. Previously, the company added, Gursu headed the four brand segments, as well as the overall brand strategy as chief product officer and member of the executive committee at Mango in Spain. At Mango, he oversaw various areas of responsibility for more than ten years; and was responsible for the biggest part of the product and range development between 2005 and 2012.
For the period from October 1 to December 31, 2018, Björn Borg Group’s net sales increased 15.6 percent to 196.9 million Swedish krona (21 million dollars). The company said, excluding currency effects, sales increased 11.6 percent. Net sales for the company’s own e-commerce and e-tailers amounted to 36.3 million Swedish krona (3.8 million dollars), an increase of 23.6 percent.
“Our e-tailers continue to produce results and this customer group saw growth of 54.2 percent in the quarter,” said the company’s CEO Henrik Bunge in a statement.
Highlights of Björn Borg’s results
Gross profit margin for the quarter was 55.5 percent compared to 58.3 percent last year, while, operating profit amounted to 16 million Swedish krona compared to 16.9 million Swedish krona last year. Profit after tax increased to 14.6 million Swedish krona (1.5 million dollars), while earnings per share before and after dilution amounted to 0.58 Swedish krona compared to 0.43 Swedish krona last year.
For the period from January 1 to December 31, 2018, the company added, net sales increased 1.9 percent to 709.6 million Swedish krona (75.7 million dollars), while excluding currency effects, sales decreased 1.6 percent. Net sales for the company’s own e-commerce and e-tailers amounted to 141.4 million Swedish krona (15.1 million dollars), an increase of 24.7 percent.
Gross profit margin reached 57.4 percent compared to 54 percent for the period under review. Operating profit increased to 71 million Swedish krona (7.5 million dollars) and profit after tax increased to 59.9 million Swedish krona (6.4 million dollars), while earnings per share before and after dilution amounted to 2.39 Swedish krona compared to 1.48 Swedish krona in the prior year.
Björn Borg said that the company’s board of directors has decided to propose a distribution of 2 Swedish kroan per share, totalling 50.3 million Swedish krona (5.3 million dollars).
Hudson’s Bay Company (HBC) has announced the closure of its Home Outfitters business in Canada and is performing a fleet review of Saks Off 5th’s 133 stores, with an estimate of closing up to 20 locations in the US. The company said, these actions are part of the company’s strategic plan to reduce costs, simplify the business and improve overall profitability.
“Further streamlining our retail portfolio enables even greater focus on our businesses with the strongest growth opportunities. The divestiture of Gilt, rightsizing of Lord & Taylor, the recent merger of our European retail operations in Germany, and today’s announcement exemplify the bold strategic actions we are taking to set HBC up for long-term success,” said Helena Foulkes, HBC’s Chief Executive Officer in a statement.
The company added that Home Outfitters is expected to close in 2019. The vast majority of markets in which it operates are served by Hudson’s Bay, which includes home furnishings departments and accepts Home Outfitters gift cards. Once completed, HBC expects these closures to be slightly favourable to adjusted EBITDA.
Announcing its financial results for the fourth quarter and full year, Gildan Activewear Inc. said strong performance in the fourth quarter reflected an increase of 16 percent in GAAP diluted EPS and an increase of 39 percent in adjusted diluted EPS, driven by sales growth of approximately 14 percent and a 230 basis point improvement in adjusted operating margin over the same quarter last year. On a full year basis, the company reported GAAP diluted EPS of 1.66 dollars, up 3 percent over the prior year, and adjusted diluted EPS of 1.86 dollars, up 8 percent on sales growth of around 6 percent, which the company said was in-line with its latest guidance for adjusted diluted EPS of 1.85 dollars to 1.87 dollars and mid-single-digit sales growth.
The company added that combined with dividends, it returned more than 460 million dollars to shareholders in 2018. Gildan has announced the seventh consecutive 20 percent increase in the amount of its quarterly dividend to 134 cents per share. The company generated a higher return on net assets (RONA) for 2018, which improved to 15.6 percent, up 70 basis points from 14.9 percent in 2017.
Review of Gildan’s fourth quarter results
Net sales for the fourth quarter ended December 30, 2018 of 742.7 million dollars were up 13.6 percent, driven by a 22.3 percent increase in activewear sales, partly offset by a 7.9 percent sales decline in the hosiery and underwear category. The activewear category generated 569 million dollars in net sales, whose volume growth reflected higher shipments of imprintable products in North America and a 29 percent increase in international shipments, as well as higher sales to global lifestyle brands and retailers.
Sales in the hosiery and underwear category totalled 173 million dollars, down 15 million dollars from the fourth quarter last year primarily due to lower Gildan sock sales in mass and lower mass retailer replenishment of Gildan underwear in the quarter.
Net earnings for the quarter totalled 59.6 million dollars or 29 cents per share on a diluted basis compared with 54.9 million dollars or 25 cents per share for the three months ended December 31, 2017. Adjusted net earnings of 88.9 million dollars were up 31.5 percent and the company generated adjusted diluted EPS of 43 cents, up 38.7 percent compared to last year mainly due to higher adjusted operating income and the benefit of a lower share count compared to the prior year, partly offset by higher financial and income tax expenses.
Highlights of Gildan’s full year performance
Net sales of 2,908.6 million dollars in 2018 were up 5.7 percent over last year, which reflected a 13.6 percent increase in activewear sales, partly offset by a 17 percent decline in the hosiery and underwear category.
Net earnings for 2018 were 350.8 million dollars, down from 362.3 million dollars in 2017. On a diluted basis, GAAP EPS totalled 1.66 dollars, up 3.1 percent from 1.61 dollars in the prior year. Adjusted net earnings were 393.1 million dollars or 1.86 dollars per diluted share, up 1.6 percent and 8.1 percent, respectively. Adjusted EBITDA for the year totalled 595.5 million dollars.
Gildan projects outlook for 2019
For 2019, the company os projecting GAAP diluted EPS growth of 17 percent and adjusted diluted EPS growth of 10 percent over 2018, at the mid-point of its guidance range, on projected sales growth in the mid-single-digit range. GAAP diluted EPS is expected to be between 1.90 dollars to 2 dollars, and adjusted diluted EPS in the range of 2 dollars to 2.10 dollars after excluding the impact of projected restructuring and acquisition-related costs of approximately 20 million dollars,
Adjusted diluted EPS in the first half of the year is projected to be down compared to the first half of 2018, and higher in the second half of 2019 over the same period in the prior year. Adjusted EBITDA for 2019 is expected to be in excess of 630 million dollars. Sales growth in 2019 is expected to be driven by higher sales volume in key growth areas, including fashion basics, international markets, global lifestyle brands, and strong underwear growth. The positive impact of these factors on sales are expected to be partly offset by anticipated lower sales of activewear basics and socks, as well as an unfavourable impact of foreign exchange.
Gildan is projecting adjusted diluted EPS of24 cents - 26 cents for the first quarter of 2019, down from adjusted EPS of 34 cents in the first quarter of 2018, as a result of high raw material and other input cost pressures and a mid to high-single-digit sales decline projected in the first quarter.
Tapestry, Inc. has declared a quarterly cash dividend of 3375 cents per common share. The company said in a statement that this dividend is payable on April 1, 2019 to shareholders of record as of the close of business on March 8, 2019.
Announcing its second quarter results at the beginning of this month, Tapestry said net sales were 1.80 billion dollars, an increase of 1 percent on a reported basis and 2 percent in constant currency. Net income for the quarter was 255 million dollars on a reported basis, with earnings per diluted share of 88 cents compared to 63 million dollars with earnings per diluted share of 22 cents in the prior year period. On a non-GAAP basis, net income for the quarter was 310 million dollars, with earnings per diluted share of 1.07 dollars compared to 306 million dollars with earnings per diluted share of 1.07 dollars in the prior year period.
The company expects revenues for fiscal 2019 to increase at a low-to-mid-single-digit rate from fiscal 2018. In addition, the company projects earnings per diluted share in the range of 2.55 dollars to 2.60 dollars.
MPs have urged the government to consider an online sales tax as part of a package to save the UK’s struggling high street.
A report published on Thursday by the Housing, Communities and Local Government Committee urged the governmentto put more money into local authorities, and said that rules allowing developers to knock down offices to make way for flats without proper permission should be scrapped.
High streets to become 'ghost towns' if nothing is done
The report, led by MP Clive Betts, said that “business rates are stacking the odds against high street retailers,” and that “more fundamental changes to the business rates system, to business taxation and to planning are required” in order to ensure the survival of the ailing high street.
The report continued: "Some formerly thriving shopping areas are likely to become ghost towns and effectively close down altogether unless the government, councils, retailers, landlords and the local community act together."
The committee also said that high street retailers were currently paying much higher business rates than online retailers. Amazon UK’s rates, for example, are about 0.7 percent of its UK turnover, while brick-and-mortar stores pay between 1.5 percent and 6.5 percent.
'Tax reforms are needed to level the playing field'
“It is likely that the heyday of the high street primarily as a retail hub is at an end. However, this need not be its death knell,” Clive Betts commented in the report. “Local authorities must get to grips with the fact that their town centres need to change; they need to innovate, setting out a long-term strategy for renewal, reconfiguring the town centre and finding new ways of using buildings and encouraging new independent retailers."
Betts continued: “Dated planning policy must be reformed to reflect the needs of modern high streets and town centres. Business rates must be made fair. They are currently stacking the odds against businesses with a high street presence and this must end. Tax reforms are needed to level the playing field between online and high street retailers, and we urge the Government to investigate all the options in this area, including an Online Sales Tax.”
Photo credit: FashionUnited
PVH Corp. has entered into a definitive agreement to acquire Gazal Corporation Limited that it does not already own for 6 Australian dollars per share. The company said, Gazal has been PVH’s long term partner in Australia and if the acquisition is consummated, PVH will acquire its joint venture with Gazal, “PVH Brands Australia Pty Limited”, which commenced doing business in 2014.
“I’m pleased that we have agreed to acquire Gazal. PVH currently – and for many years – has had a successful business relationship with our Australian partners and would be pleased to bring them into the larger PVH family,” said Emanuel Chirico, Chairman and CEO, PVH Corp. in a statement.
The JV holds licenses for PVH’s Calvin Klein, Tommy Hilfiger and Van Heusen brands, as well as the Pierre Cardin, Bracks and Nancy Ganz brands in Australia, New Zealand and other parts of Oceania. The JV generated approximately 260 million Australian dollars in revenues on a twelve-month trailing basis as of July 2018.
The company added that aggregate net purchase price for the approximately 78 percent of Gazal shares being acquired is approximately 124 million Australian dollars, after taking into account the divestiture to a third party of Gazal’s owned office building and warehouse in Banksmeadow, New South Wales, which will take place shortly following the closing date of the acquisition.
PVH further said that the transaction is expected to result in a material increase to its 2019 earnings per share on a GAAP basis, as it expects to record a noncash gain to write-up its equity investments in Gazal and the JV to fair value. Excluding this noncash gain, the transaction is expected to be slightly accretive to 2019 earnings on a non-GAAP basis.
Picture credit:Gazal website
Wolverine Worldwide, Inc. said reported revenue of 579.6 million dollars increased 0.2 percent during the fourth quarter, while underlying revenue increased 3.8 percent and further adjusting for currency, increased 4.6 percent. Reported revenue of 2,239.2 million dollars decreased 4.7 percent for the full year. Underlying revenue increased 2.5 percent and further adjusting for currency, increased 2.3 percent.
“Our ‘Global Growth Agenda’ gained momentum in the fourth quarter, with underlying revenue growing 4.6 percent on a constant currency basis. This was the highest quarterly revenue growth of the year driven by our two largest brands Merrell and Sperry,” said Blake Krueger, Wolverine Worldwide’s Chairman, CEO and President in a statement, adding, “For the full-year, we achieved attractive underlying revenue growth and our efficient business model allowed us to deliver significant profit leverage including record gross margin and earnings."
Highlights of Wolverine Worldwide’s Q4 and full year results
Reported gross margin for the quarter was 39.2 percent compared to 38.4 percent in the prior year and on an adjusted basis, gross margin expanded 70 basis points compared to the prior year. Reported operating margin was 9.3 percent, while adjusted operating margin was 10.7 percent, a decrease of 30 basis points compared to the prior year.
Reported gross margin for the full year of 41.1 percent was, Wolverine Worldwide said, a record for the company and compares to 38.9% in the prior year. On an adjusted basis, gross margin expanded 150 basis points compared to the prior year. Reported operating margin was 11.2 percent compared to 1.3 percent in the prior year, while adjusted operating margin was 12 percent, an increase of 80 basis points compared to the prior year.
Fourth quarter reported diluted earnings per share were 40 cents, compared to a loss per share of 65 cents in the prior year, while adjusted diluted earnings per share were 52 cents compared to 41 cents in the prior year, an increase of 27 percent. Reported diluted earnings per share were 2.05 dollars for the year, compared to 0 dollar in the prior year, while adjusted diluted earnings per share were 2.17 dollars compared to 1.64 dollars in the prior year, an increase of 32 percent.
Wolverine Worldwide provides initial revenue and earnings outlook
For the fiscal year 2019, the company added, revenue is expected to be in the range of 2.28 billion dollars to 2.33 billion dollars, representing growth of 3 percent at the mid-point of the range.
Gross margin is expected to be in the range of 41.3 percent to 41.8 percent, up 45 basis points at the mid-point of the range. Reported operating margin is expected to be in the range of 11.4 percent to 11.8 percent and adjusted operating margin in the range of 12.2 percent to 12.6 percent, including 40 million dollars of on-going investments to support the company’s Global Growth Agenda.
Reported diluted earnings per share are expected to be between 2.03 dollars to 2.18 dollars and adjusted diluted earnings per share are expected to be between 2.20 dollars to 2.35 dollars.
Picture:Facebook/Wolverine Boots & Apparel
Destination XL Group, Inc. has appointed Harvey S. Kanter as the company’s new President and Chief Executive Officer and a member of its board. The company said, Kanter joined Destination XL as an employee on February 19, 2019, and, in order to ensure a smooth and orderly transition, will serve as advisor to the acting CEO David Levin, until April 1, 2019.
Commenting on Kanter’s appointment, John Kyees, Chairman of the company’s board, said in a statement: “We also want to thank David Levin for his outstanding contributions and significant accomplishments during his 18 years as President and CEO of the company. We are very impressed with Harvey’s track record of creating shareholder value and his digital experience, as well as his strategic and operational expertise. We are confident that his consumer-focused mindset, passion for omni-channel retail and deep understanding of the new economy will successfully steer the DXL concept through its next phase of growth.”
Harvey Kanter is the new CEO of Destination XL
Kanter, the company added, brings a proven track record in leading executive teams, driving strategy, growing profitability and creating shareholder value for consumer-centric experiential brands. He was most recently president, CEO and chairman of the board of Blue Nile, Inc., an online retailer of high-quality diamonds and fine jewellery. Blue Nile was purchased and taken private by Bain Capital in early 2017 and Kanter continues to serve as Chairman of the board of Blue Nile.
Before Blue Nile, Kanter was the president and CEO of Moosejaw Mountaineering and Backcountry Travel, Inc., a multi-channel retailer of premium outdoor apparel and gear, where he drove a successful turnaround that led to the acquisition of Moosejaw by Walmart. Prior to Moosejaw, he served in executive positions at Michael’s Stores, Inc. and Eddie Bauer, Inc. Kanter currently also serves on the board of directors of Potbelly Corporation, an international sandwich concept and he is a brand ambassador for the Fred Hutch Cancer Research Institute and an advisory board member to the Seattle University Executive MBA Program.
“DXLG has a tremendous opportunity as the leader in the big & tall men’s apparel sector with a large, growing and addressable market. The company’s continued evolution across a highly effective bricks-and-mortar and digital platform enhances an already first-class retail experience for its loyal customer base. Leveraging its omni-channel and wholesale capabilities to reach a broader customer base will drive the next growth chapter,” added Kanter.
Picture:Facebook/DXL Men's Apparel