powered by FU

Executive News

Fashion jobs, Fashion trade news USA, Fashion World business platform for the global apparel industry, FashionUnited New York, Los Angeles, Miami

After taking its website down on Wednesday, House of Fraser has now announced that due to delays in delivering online orders, it has decided to cancel all orders and refund the customers. The action was taken after its warehouse operator XPO Logistics stopped processing orders late last week due to a payment dispute, reports BBC.

Due to delays with delivering online orders, we have taken the decision to cancel and refund all orders that have not already been sent to customers. All customers affected will receive an email in the next couple of days. Please accept our apologies for any inconvenience caused.

— House of Fraser (@houseoffraser) August 16, 2018

Mike Ashley, owner of Sports Direct, purchased the struggling department store chain after it fell into administration, for 90 million pounds. However, it is not legally bound to pay the suppliers’ money owed before the transaction took place.

All online orders cancelled by House of Fraser

According to the Guardian, XPO is among more than 1,000 suppliers to which House of Fraser wrote saying it will not cover money owed before Friday. The logistics firm operates two warehouses, in Wellingborough, Northamptonshire, and Milton Keynes, Buckinghamshire, that handle all House of Fraser’s deliveries to customers as well as to stores. However, access to both warehouses remained closed on Thursday as the dispute remained unresolved and House of Fraser was forced to cancel all the orders.

Picture:Twitter/House of Fraser

Want to stay up-to-date on the latest developments in the fashion industry? Sign up for the FashionUnited newsletter!
Author: Prachi Singh
Posted: ”17-08-2018”

Troubled British department store chain Debenhams continues to reduce headcount as a part of its restructuring exercise. Media reports reveal that as many as 90 positions from the company’s home and fashion team are on the verge of getting terminated.

Commenting on the development, Debenhams spokesperson said in a statement: “We announced our intention to restructure our organisation around three business units: beauty & beauty services, fashion & home and food & events earlier this year. Our work to create a simplified and consistent structure across these units, reducing complexity and driving efficiency in order to deliver our Debenhams Redesigned strategy, is continuing.”

Earlier, refuting media reports stating insurers had cut cover for the company's suppliers, the company had insisted that: “Debenhams has a healthy balance sheet and cash position. All the credit insurers continue to provide cover to our suppliers and we maintain a constructive relationship with them. It is well-documented that market conditions are challenging, but Debenhams continues to be profitable, has a clear strategy in place and is taking decisive actions to strengthen the business.”

In its recent trading update released in June, Debenhams announced that group like-for-like sales for the 15 weeks dropped 1.7 percent and were down 2.1 percent in the 41 weeks period, while in constant currency like-for-like sales declined 2.2 percent and 2.6 percent respectively.

Picture credit:Debenhams press area

Author: Prachi Singh
Posted: ”17-08-2018”

In a tough economic environment in South Africa and in the UK, Truworths Group said that its retail sales for the 52-week period ended July 1, 2018 remained unchanged at 18 billion rand (1.2 billion dollars). Relative to the 53-week prior reporting period ended July 2, 2017, Group retail sales decreased by 2.7 percent. The company added that headline earnings per share (HEPS) and diluted HEPS decreased by 1 percent to 615.7 cents and 1.3 percent to 612.7 cents respectively relative to the comparable prior period. Relative to the 53-week prior period, HEPS and diluted HEPS decreased by 7 percent and 7.3 percent respectively.

The company also announced that during the period Hans Hawinkels and Maya Makanjee were appointed as independent non-executive directors of the company and that the board has resolved to appoint David Pfaff, the new Chief Financial Officer and an executive director of the company, to the newly created role of Group Chief Operating Officer (COO). The company added that Pfaff who was appointed as CFO in March 2013 will now be responsible for retail store operations in addition to his existing portfolio of credit risk, credit operations, information systems and finance.

Review of Truworths’ annual results

The company added that retail sales for the Truworths Africa segment increased by 0.8 percent, with cash sales increasing by 2.6 percent and account sales being unchanged. Relative to the 53-week prior period, Truworths’ retail sales decreased by 2.1 percent, with cash sales unchanged and account sales decreasing by 3 percent. Account sales comprised 69 percent of Truworths’ retail sales. Comparable product deflation (excluding the new Office London footwear chain launched in South Africa and Loads of Living acquired during the period) averaged 1.4 percent.

Retail sales for the Group’s UK-based Office segment decreased by 2.5 percent in pound sterling relative to the comparable prior period. Relative to the 53-week prior period, Office’s retail sales decreased by 4.5 percent to 281 million pounds (357.7 million dollars).

Truworths added 32 stores across all brands during the period, resulting in an increase in trading space of 3.2 percent (Truworths 3.3 percent increase and Office 0.9 percent increase), while Loads of Living accounted for 13 of the new stores. At the end of the period the Group had 969 stores (including 40 concession outlets).

Truworths’ trading profit up 9 percent

The Group’s gross margin was stable at 52.4 percent, while Truworths’ gross margin increased to 55.5 percent. Relative to the comparable prior period trading profit increased by 2.2 percent to 2.5 billion rand. The company added that despite the tough South African consumer environment, Truworths’ trading profit increased by 9 percent relative to the comparable prior period. However, the company said, difficult trading conditions affecting retailers in the UK was evident in the Office segment where trading profit decreased by 32.3 percent in pound sterling relative to the comparable prior period.

The company announced a final cash dividend of 159 cents per share, bringing the annual dividend to 420 cents per share compared to 452 cents per share in 2017.

Picture:Truworths website

Author: Prachi Singh
Posted: ”17-08-2018”

For the period between April 1 to June 30, 2018, Björn Borg AB said that the Group’s net sales increased 4.1 percent to 140.3 million Swedish krona (15.2 million dollars) and excluding currency effects sales rose 1.2 percent. Net sales for the company’s own ecommerce and e-tailers increased 23 percent. Gross profit margin for the period was 59.9 percent compared to 52.1 percent last year, while operating profit amounted to 2.9 million Swedish krona (0.3 million dollars). Profit after tax amounted to 1.5 million Swedish krona (0.1 million dollars) and EPS before and after dilution amounted to 0.06 Swedish krona.

Hover over the graph to learn more.

“In the second quarter we again saw that anything is possible. Our Swedish stores increased their revenues by 15 percent compared with the previous year. It had been some time since we had such strong growth for comparable stores. We also set a new record: Our gross margin has never been higher at nearly 60 percent,” said the company’s CEO Henrik Bunge in a statement.

For the period from January 1to June 30, 2018, the Group’s net sales fell 3.4 percent to 309.5 million Swedish krona (33.6 million dollars) and excluding currency effects sales fell 5.6 percent. Net sales for company-owned e-com and e-tailers however increased 26 percent.

Hover over the graph to learn more.

The gross profit margin was 58.3 percent compared to 50.3 percent last year, while operating profit amounted to 18 million Swedish krona (1.9 million dollars) compared to 6.5 million Swedish krona last year. Profit after tax amounted to 16.3 million Swedish krona (1.7 million dollars) and EPS before and after dilution amounted to 0.66 Swedish krona (0.07 dollar).

Picture:Björn Borg image bank

Author: Prachi Singh
Posted: ”17-08-2018”

American fashion retailer Nordstrom said on Thursday its H1 revenue for 2018 rose 6.5 percent. Profit increased by 43.9 percent from the same period last year. For the second quarter, the company's sales rose by 7.1 percent to 3,980 million dollars compared to 3,717 million dollars last year, while net earnings for the quarter increased to 162 million dollars compared to 110 million dollars last year.

Hover over the graph to learn more.

The company’s sales in H1 2018 were 7,450 million US dollars, up from 6,996 million US dollars a year earlier. Net profit rose to 249 million US dollars. The profit margin of the company increased to 3.3 percent compared to 2.5 percent a year ago. Based on first half results, the company has raised its full year earnings per diluted share expectations to 3.50 dollars to 3.65 dollars from its prior outlook of 3.35 dollars to 3.55 dollars.

Hover over the graph to learn more.

Nordstrom Inc was founded in 1901 by John W. Nordstrom and Carl F. Wallin and is based in Seattle, USA. Founded as a shoe store in 1901, Nordstrom today is a leading American fashion retailer operating through Nordstrom Rack stores; Jeffrey boutiques; clearance stores; Trunk Club clubhouses and its Nordstrom Local service concept.

Offering men's and women's fashion clothing, the Nasdaq-listed company operates more than 373 stores.

For more recent news on the business, collections and executive changes of Nordstrom Inc, click here.

Picture:Nordstrom media centre

Author: Prachi Singh
Posted: ”17-08-2018”

Total revenue at Walmart Inc for the second quarter, the company said, was 128 billion dollars, an increase of 4.7 billion dollars or 3.8 percent. Excluding currency, total revenue was 127.8 billion dollars, an increase of 4.4 billion dollars or 3.6 percent. Walmart reported Q2 GAAP net loss per share of 0.29 dollars and adjusted EPS of 1.29 dollars. Operating income declined 3.7 percent to 5.7 billion dollars.

The company said, comp sales at Walmart US increased 4.5 percent, the strongest growth in more than ten years led by the performance of grocery, apparel and seasonal. Strong comp sales, Walmart added were supported by traffic and ticket growth as each exceeded 2 percent. Net sales at Walmart International were 29.5 billion dollars, an increase of 4 percent, while excluding currency, net sales were 29.2 billion dollars, an increase of 3.1 percent. The company added that comp sales were positive in the four largest markets.

Walmart updates FY19 guidance

Updating its outlook for the fiscal year 2019, Walmart said, it now expects consolidated net sales to rise about 2 percent in constant currency, impacted by sale of a majority stake in Walmart Brazil, Sam’s Club closures and tobacco actions, wind-down of first-party Brazil ecommerce, and divestiture of Suburbia. The company now expects combined impact of the above factors of decline of 180bps compared to prior outlook of 140 bps.

Comparable sales at Walmart US are expected to be up around 3 percent, at Sam's Club: around 3 percent, with negative impact from tobacco of 200 bps. The company earlier expected comparable sales at Walmart US to rise at least 2 percent and decline 1 percent at Sam's Club, with negative impact from tobacco of 400 bps. The company now expects GAAP EPS to range from 2.90 dollars to 3.05 dollars compared to prior outlook of between 4.75 to 5 dollars. Adjusted EPS is expected to range between 4.90 dollars to 5.05 dollars, excluding sale of a majority stake in Walmart Brazil, unrealized losses on JD.com investment and tax reform adjustments. Walmart earlier expected it to range between 4.75 to 5 dollars.

Commenting on Walmart’s Q2 performance, Neil Saunders, Managing Director of GlobalData Retail, said in a media statement: “As painful as they are, the erosion of profitability and margins are necessary evils. Maintaining a price leadership position as well as ensuring the company is an omnichannel leader are clear priorities that require investment. These investments are being made and they are delivering growth, which we believe in a sign that Walmart is succeeding in securing its future as one of the world's leading retailers.”

Picture:Walmart media gallery

Author: Prachi Singh
Posted: ”16-08-2018”

J. C. Penney Company, Inc. has said that for its fiscal second quarter ended August 4, 2018, comparable sales increased 0.3 percent and net loss for the quarter was 101 million dollars or 0.32 dollar per share compared to a net loss of 48 million dollars or 0.15 dollar per share in the same period last year. Total net sales for the quarter decreased 7.5 percent to 2.76 billion dollars, which the company said, was primarily the result of the 141 stores that closed in fiscal 2017.

Hover over the graph to learn more.

"During the second quarter, we delivered a positive sales comp of 0.3 percent. We had a strong start and finish to the quarter, with both May and July comps delivering ahead of our annual comp guidance range. Overall, we are confident that our renewed focus on women's is having a beneficial impact, evidenced by the positive comp sales performance in women's and children's apparel, both of which meaningfully out-performed our total Q2 comp results," said Jeffrey Davis, JCPenney’s Chief Financial Officer in a statement.

The company added that children's, jewelry, Sephora, women's apparel and salon were the company's top performing divisions and categories during the quarter. Geographically, the Gulf Coast, Southeast and Northwest were the best performing regions of the country.

The company’s adjusted net loss was 120 million dollars or 0.38 dollar per share compared to 23 million dollars or 0.07 dollar per share, for the second quarter last year.

The company has revised its 2018 full year guidance and now expects comparable store sales to be approximately flat; and adjusted earnings per share now expected to be a loss of 1 dollar to 0.80 dollar.

Picture:Facebook/JCPenney

Author: Prachi Singh
Posted: ”16-08-2018”

Dillard’s, Inc. has reported net income for the 26 weeks ended August 4, 2018 of 77.7 million dollars or 2.80 dollars per share compared to 49.2 million dollars or 1.62 dollars per share, for the prior year 26-week period. Net sales for the period were 2.926 billion dollars compared to 2.846 billion dollars last year. The company said, total merchandise sales (which excludes CDI) were 2.820 billion dollars compared to 2.770 billion dollars for the 26-week period ended July 29, 2017. Total merchandise sales increased 2 percent and sales in comparable stores for the period increased 2 percent.

Hover over the graph to learn more.

Commenting on the results, Dillard’s Chief Executive Officer, William T. Dillard, II, said in a statement: “While we are not happy with a loss for the quarter, our 32 percent improvement in year-to-date pretax income is a positive. We believe this reflects the continued strength of our customers and their interest in our merchandise selections, and it is encouraging as we head into the important back half of the year."

Dillard’s Q2 net loss reduces, net sales rise to 1.468 billion dollars

For the second quarter, Dillard’s reported a net loss of 2.9 million dollars or 0.10 dollar per share compared to 17.1 million dollars or 0.58 dollar per share, for the prior year second quarter. Net sales for the period were 1.468 billion dollars compared to 1.427 billion dollars, in the second quarter of 2017. Total merchandise sales reached 1.409 billion dollars in the second quarter compared to 1.385 billion dollars for the 13-week period ended July 29, 2017. Total merchandise sales increased 2 percent and sales in comparable stores for the period increased 1 percent.

Hover over the graph to learn more.

Gross margin from retail operations (which excludes CDI) improved 67 basis points of sales for the 26 weeks , while consolidated gross margin improved 32 basis points of sales compared to the prior year-to-date period. Gross margin from retail operations improved 163 basis points of sales for the 13 weeks and consolidated gross margin improved 127 basis points of sales compared to the prior year second quarter.

Picture:Dillard's website

Author: Prachi Singh
Posted: ”16-08-2018”

China’s ecommerce company JD.com, Inc. has reported net revenues for the second quarter of 122.3 billion Chinese yuan (218.5 billion dollars), an increase of 31.2 percent from the second quarter of 2017. The company said, net service revenues for the quarter were 11.8 billion Chinese yuan (1.8 billion dollars), an increase of 51 percent. Net loss from continuing operations attributable to ordinary shareholders was 2,212.5 million Chinese yuan (334.4 million dollars) compared to 287 million Chinese yuan (41.6 million dollars) for the same period last year.

"As China's most trusted e-commerce platform, JD continues to win over quality-focused customers with a premium shopping experience and an unrivaled level of service, no matter where they choose to shop," said Richard Liu, Chairman and CEO of JD.com in a statement, adding, "We are also seeing more corporate clients, both Chinese and international, leveraging JD's superior technology and retail infrastructure to help take their businesses to the next level.”

JD.com increases 31.2 percent from the second quarter of 2017

Operating margin of JD Mall before unallocated items was 1.1 percent compared to 0.8 percent for the same period last year. Non-GAAP net income from continuing operations attributable to ordinary shareholders for the second quarter was 478.1 million Chinese yuan (72.3 million dollars), compared to 976.5 million Chinese yuan for the same period last year. Diluted net loss per ADS from continuing operations was 1.54 Chinese yuan (0.23 dollars), compared to 0.20 Chinese yuan for the second quarter of 2017. Non-GAAP diluted net income per ADS from continuing operations was 0.33 Chinese yuan (0.05 dollars), compared to 0.67 Chinese yuan for the same quarter last year.

The company added that annual active customer accounts increased by 21.5 percent to 313.8 million in the twelve months ended June 30, 2018 from 258.3 million in the twelve months ended June 30, 2017.

JD.com said, net revenues for the third quarter of 2018 are expected to be between 104.5 billion Chinese yuan and 109 billion Chinese yuan, representing a growth rate between 25 percent and 30 percent compared with the third quarter of 2017.

Picture:JD.com media gallery

Author: Prachi Singh
Posted: ”16-08-2018”

Scotland-based footwear brand Schuh has appointed Alice Cleary as its new Chief Marketing Officer with immediate effect. The company said, Cleary will join the existing eight members of the Schuh management team that includes Managing Director, Colin Temple.

“We are fortunate to have a great new dynamic that brings a wealth of experience to our business. Her appointment will further cement Schuh’s position as one of the UK’s leading fashion brands,” said Temple, in a statement.

Schuh added that with over 15 years experience in global marketing, Cleary has a dynamic, creative and commercial background leading brand evolution, market entry and digital growth. Her areas of responsibility at Schuh include marketing, social media, PR, CRM and visual merchandising.

Scottish footwear brand gains a new Chief Marketing Officer

“Schuh is a standout retailer with a genuinely humble, vibrant and supportive culture – which in turn has delivered demonstrable success and a huge footprint within UK footwear retail. I remember celebrating my first ever job with a pair of shoes from Schuh, so life feels full circle as I join the brand,’’ added Cleary.

Prior to her appointment at Schuh, Cleary’s notable roles include global marketing director for Australia’s cosmetic brand, Nude by Nature, with 2500 distribution points across 11 countries, along with Lovisa accessories (formally diva) distributed in 22 countries and Littlewoods Home Shopping Group. She also has extensive experience across fast fashion and also designer apparel, beauty and lingerie.

Picture credit:Alice Cleary via Schuh

Author: Prachi Singh
Posted: ”16-08-2018”