Fashion jobs, Fashion trade news USA, Fashion World business platform for the global apparel industry, FashionUnited New York, Los Angeles, Miami
Philip Day’s Edinburgh Woollen Mill Group (EWM Group) has reported strong profit growth in its latest financial figures, while losses at its premium fashion brand Jaeger have considerably narrowed.
The group, which also owns brands such as Peacocks, Austin Reed and Jane Norman, reported a profit after tax for the 27-week period to 2 March 2019 of 23.4 million pounds, on sales of 327.14 million pounds.
It is difficult to accurately compare these latest results with those of the prior year because in 2018 the group reported on a 78-week period ending August.
The Edinburgh Woollen Mill brand itself, as opposed to the group, posted a profit after tax of 12 million pounds, while the group's discount fashion retailer Peacocks, which was recently named the preferred bidder for a potential takeover of British womenswear retailer Bonmarché, posted a profit after tax of 17 million pounds.
Jaeger cuts losses
The group's upmarket brand Jaeger, which was acquired by EWM Group in 2017 after falling into administration, saw its losses narrow significantly to 1.1 million pounds while adding seven new standalone stores and four new concession outlets to its UK portfolio. In the year before it collapsed, the brand posted a loss of 7.1 million pounds.
A spokesperson for EWM Group said in a statement: “In the face of a challenging retail environment, our relentless commitment to customers and their wants and needs has allowed us, again, to stand out from the crowd. Customers continue to look for exceptional value for money and reject low-quality, 'wear once' apparel. In response, we have continued to focus not only on retailing at a highly attractive price point, which is essential, but also ensuring a fashionable look and cut, high level of build quality, and extended product longevity across all our brands.
“The turnaround in Jaeger's fortunes validates our heavy investment in the brand and our commitment to hiring top industry talent. It also validates our approach of replacing the company's previous reliance on an unsustainable low-margin, discount-led marketing strategy with our plan to re-establish Jaeger as a badge of quality, which has been done effectively. This echoes our commitment as a group to 'first price, right price' and our resistance to an escalating discounting culture, which we have strongly resisted.”
Photo credit: Jaeger, Facebook
Joules has reported a rise in half-year revenue in a pre-close trading update thanks to a “disciplined” approach to discounting and against a backdrop of “challenging” UK trading conditions.>
For the first six months of the year to November, the premium British lifestyle brand reported a 1.3 percent year-on-year increase in revenue. That was boosted by a 3.1 percent jump in retail sales thanks to a “disciplined approach to promotional activity” and strong e-commerce growth.
Half-year wholesale revenue was down 3.8 percent, although international sales enjoyed a healthy 17 percent growth. The retailer credited this to its strong US wholesale business and its “very strong growth” across international e-commerce markets, which demonstrated “the strengthening international appeal of the Joules brand.”
Wholesale revenue down but US sales surge
The retailer also noted that customers have “continued to respond well” to its product offer and its flexible ‘Total Retail’ model, and said that despite a challenging September it experienced “positive trading momentum” over the last two months, with revenue up by over 9 percent across its own e-commerce and store channels.
Commenting on the results in a statement, CEO Nick Jones said: “Joules has delivered further profitable growth during the period despite the continued challenging trading environment. This performance again reflects the appeal of the brand, the flexibility of our ‘Total Retail’ model and the hard work and skill of our team who have not only helped deliver growth in this tougher climate but have also launched innovative new initiatives like ‘Friends of Joules’ that create future growth opportunities.
“Since joining the business in September, I have been struck by the exceptional strength of the Joules brand as well as its clear potential for growth across channels, markets and product categories. We continue to invest in our proposition to meet changing customer expectations in a scalable and profitable way and, with positive momentum across both digital and physical channels, we are well placed as we enter the important Christmas trading period.”
Photo credit: Joules, Facebook
The company said on Wednesday its Q3 net profit increased. Compared with the same period last year, revenues surged by 5 percent.
The company's net profit for Q3 was 95 million , grew from 94 million a year earlier. Furthermore, revenues grew to 1,128 million .
G-III Apparel Group, Ltd. (NASDAQ: GIII) was founded in 1956 by Aron Goldfarb, who immigrated to the United States and established his own outerwear company in the heart of New York City’s Garment District. Today G-III Apparel is best known for its brand portfolio which includes licences for Guess, Donna Karen, Tommy Hilfiger and Calvin Klein for which the company designs and manufactures collections.
This story was generated by Arria, an NLG tool that turns data into stories. If you spot an error, please help and let us know at firstname.lastname@example.org
For the third quarter, Tilly’s, Inc. reported total net sales of 154.8 million dollars, an increase of 8 million dollars or 5.4 percent, compared to 146.8 million dollars last year. The company ended the quarter with 232 total stores, including one RSQ-branded pop-up store, compared to 227 total stores, including four RSQ-branded pop-up stores, last year. Comparable store net sales, which include e-commerce net sales, increased 3.1 percent, while comparable store net sales in physical stores increased 2.4 percent and ecommerce net sales increased 7.4 percent.
“Tillys continued its positive momentum with its 14th consecutive quarter of flat to positive comparable store net sales during the third quarter, including positive comps from both stores and e-commerce, all merchandising departments, and each month of the quarter,” commented Ed Thomas, President and Chief Executive Officer of the company, adding, “Based on our results during Thanksgiving weekend through Cyber Monday, we believe we are well positioned to continue our momentum during the Holiday season.”
Review of Tilly’s Q3 and nine months results
Gross profit for the quarter was 47.2 million dollars, an increase of 3.5 million dollars or 8.1 percent, gross margin, or gross profit as a percentage of net sales, increased to 30.5 percent from 29.7 percent last year. Operating income was 7.7 million dollars or 5 percent of net sales, compared to 6.7 million dollars or 4.6 percent of net sales, last year, while non-GAAP operating income was 8.4 million dollars or 5.4 percent of net sales compared to 7.5 million dollars or 5.1 percent of net sales, last year. Net income was 6.4 million dollars or 21 cents per diluted share compared to 5.4 million dollars or 18 cents per diluted share, last year, while non-GAAP net income was 6.9 million dollars or 23 cents per diluted share, compared to 6 million dollars or 20 cents per diluted share, last year.
Total net sales for the nine months were 446.8 million dollars, an increase of 19 million dollars or 4.4 percent, Comparable store net sales, which include e-commerce net sales, increased 2 percent, ecommerce net sales increased 16.4 percent and comparable store net sales in physical stores decreased 0.2 percent.
Gross profit for the period was 134.6 million dollars, an increase of 5.8 million dollars or 4.5 percent, while gross margin was 30.1 percent in both years and product margins improved by 10 basis points as a percentage of net sales. Net income was 16.3 million dollars or 55 cents per diluted share, in both years, while non-GAAP net income was 16.8 million dollars or 57 cents per diluted share, compared to 15.9 million dollars or 53 cents per diluted share, last year.
Compared to full-priced retail destinations, Springfields Outlet reported positive trading and footfall stats for the Black Friday trading period. The company said in a statement, from Monday November 25 to Sunday December 1, 2019, footfall rose by 5 percent when compared with the same period last year, while total revenue grew by 6 percent year-on-year.
Commenting on the Black Friday trading, Ian Sanderson, Director at SLR, which developed and asset manages the scheme, said: “The strong trading performance Springfields is experiencing is testament to the environment at the destination. Attracting visitors from a really broad catchment, with significant numbers travelling more than 90 minutes, it’s a real destination for the East Midlands and parts of East Anglia. This is evidenced by the trading and footfall stats which illustrate how positively Springfields is trading in comparison to the wider, full-price sector.”
Springfields witnesses busy Black Friday week
The company added that the same week was the busiest sales week on record for Springfields, beating last year’s record by 3 percent. Every category at the destination reported increased trading stats with fashion and beauty retailers such as Crew Clothing, Joules, Jack Wills, The Cosmetics Company Store, Next Outlet and The Body Shop performing especially well, with stores trading up to 51 percent on a like-for-like basis. The outlet has achieved 14 years of consecutive revenue growth since opening in 2004, with an average occupancy rate of 98 percent.
The 200,000 sq. ft. scheme is home to 50 outlet stores such as Jack Wills, Joules, White Stuff, Fat Face, Crew Clothing, The Cosmetic Company Store, Gap, Next and Skechers. Further demonstrating the success of the scheme, it has been announced that 18 million pounds will be invested into a new extension at the centre. The proposed design, the company further said, will add an additional 50,000 sq. ft. of retail and casual dining space, and some 19 new units, attracting opportunity for further brands at the centre.
Picture credit:Springfields Outlet via Coverdale Barclay
Launchmetrics, the marketing platform and data analytics solution for the fashion, luxury and beauty industries, has acquired visual content creator IMAXtree.
This marks the company’s first acquisition since its 50 million dollar fundraising in September 2018 as part of its strategy to build the most comprehensive, vertical data asset in the industry.
According to Launchmetrics research, 60 percent of marketing budgets are being allocated to content creation, distribution, and promotion. Launchmetrics and IMAXtree aim to launch the go-to solution designed to measure the performance of digital assets, from conception to amplification and to provide key data insights to help brands understand the best content strategies.
“At Launchmetrics, we are empowering companies to build the right content and experiences so they can increase their brand momentum and improve performance,” announced Michael Jais, CEO. “IMAXtree will enhance our Brand Performance Cloud to provide unique assets, tools, and high-touch professional services to our clients,” he continues.
“For over 20 years, IMAXtree has been the leading content creator and distributor in the Fashion & Beauty industries,” states IMAXtree’s CEO, Andrea Oreni. “Now — in the digital era — more than ever, content is a key element in reaching modern consumers and with creative content driving 5 times more value than e-commerce content, having the right assets is even more important. Today, IMAXtree covers 25 fashion weeks worldwide and has a digital asset library of over 4M photos & 4,000 videos as well as a client list of over 2,000 publishers.”
Photo: courtesy Launchmetrics
J. C. Penney Company, Inc. has announced Karl Walsh, an executive with more than 18 years of ecommerce expertise, joined the Company on December 2, 2019 as Senior Vice President, Chief Digital Officer, to lead strategic advancements of the company’s digital platforms and bring the customer experience to life, most notably in its flagship store Jcp.com. In this role, the company added, Walsh will report to Shawn Gensch, Executive Vice President, Chief Customer Officer.
“Nearly 90 percent of shoppers begin their path to purchase online, so Karl’s background of building and executing digital strategies for global brands will help us improve our ecommerce offering and drive traffic across all channels. His strategic vision will be an asset for us as we continue delivering inspiring, shared experiences to our customers, helping to restore JCPenney to sustainable, profitable growth,” said Gensch in a statement.
Most recently, Walsh was chief digital officer at Pandora Jewellery, where he grew its global ecommerce business and increased cross-channel consumer engagement. Previously, he led the US consumer eCcmmerce and digital practice for Boston Consulting Group and served clients in the consumer and retail practices at McKinsey & Company.
Zalando announced that the company acquired a record-breaking number of around 840,000 new customers during its fifth Cyber Week. The company said in a statement that this year’s shopping event, including Black Friday and Cyber Monday, led to 32 percent GMV growth compared to last year’s Cyber Week. In addition, the Partner Program’s share of GMV averaged 20 percent.
Commenting on the update, David Schneider, Co-CEO Zalando SE, said: “We are proud to announce that we surpassed our ambitious targets by far, especially with regards to the Partner Program. The success of this year’s Cyber Week marks another milestone for our growth, our transformation to a platform and another step towards our vision of becoming the starting point for fashion”.
On Black Friday alone, the company added, around 7,200 orders were placed per minute at peak times, breaking last year’s milestone of 4,200. The most-purchased articles during Black Friday were black leggings, t-shirts with a logo and black sneakers.
Guess, Inc. has announced a five-year plan containing long-term strategies and key initiatives to deliver global expansion, profit growth and value creation. As part of the fiscal 2025 strategic plan, the company’s priorities to drive revenue and operating profit growth over the next five years include brand relevancy, customer centricity, global footprint, product excellence and functional capabilities.
Commenting on the announcement, Carlos Alberini, Chief Executive Officer of Guess said in a statement: “I strongly believe that the Guess brand has tremendous potential to continue to expand globally and amplify its customer reach. We have built a plan based on our current regional trends with a clear path to double digit operating margin performance mainly anchored on operational efficiencies.”
Guess reveals strategic plans to drive growth
The plans to optimize brand architecture to be relevant with its three target consumer groups: heritage, millennials, and generation Z, while continuing to execute celebrity and influencer partnerships and collaborations as they are critical to engage more effectively with a younger and broader audience.
The company also intends to place the customers at the center of everything it does by implementing processes and platforms to provide the customers with a seamless omni-channel experience. Guess will continue to expand the reach of its brands by optimizing the productivity and profitability of current footprint and expanding the distribution channels. The company would also aim at driving material operational improvements in the next five years, primarily in the areas of logistics, sourcing, product development and production, inventory management, and overall infrastructure.
The company’s expectations for the fiscal year ending February 1, 2020 and goals for the fiscal year ending February 1, 2025 include sales increase between 2.7 percent and 3 percent for the full year, up low single digit CAGR between fiscal 2021 to 2025 and up approximately 250 million dollars in fiscal 2025 against fiscal 2020, operating profit to increase between 26 percent and 30 percent in fiscal 2020, up mid-teens CAGR between fiscal 2021 and 2025 and up approximately 150 million dollars in 2025 compared to 2020. Gross margin is expected to increase 160bp in 2020, up 80bp annual average between 2021 and 2025 and up 400bp in 2025, while operating margin is anticipated to increase between 100bp and 120bp in 2020, up 90bp annual average between 2021 and 2025 and up 450bp in 2025 against 2020. The company added that EPS is expected to increase between 34 percent and 39 percent to 1.31 to 1.36 dollars in 2020, up high-teens CAGR between 2021 and 2025 and to increase 2.3x to in the range of 3 dollars in 2025 against 1.31 to 1.36 dollars in 2020.
Total sales at John Lewis for the week ending December 3, 2019 were up 60.4 percent on the same week as last year, with Black Friday taking place a week later this year. Fashion sales, the company said, were up 71 percent compared with the same week last year with a record week of sales across menswear, nursery and beauty with best sellers including premium fragrances, Barbour clothing for both men and women and the Joie Spin infant car seat.
Compared with the Black Friday period in 2018, sales were up 2.1 percent - a new record week of sales at John Lewis & Partners. The company said in a statement that total sales for the first 10 days of the Black Friday event between November 22 and December 1, 2019 were up 9.5 percent compared to the same 10 day period around Black Friday last year, driven by demand for Black Friday deals and competitor offers, which it price matched through “Never Knowingly Undersold policy” and the continued strength of our gifting and Christmas assortment also contributed to strong sales.
Home sales were up 18 percent compared to the same week last year with strong sales of gifts, cook and dine products and decorations as customers started preparations for Christmas. Electrical and home technology sales were up 81 percent compared with the same week in 2018.
Picture:John Lewis website