(advertisement)
 
(advertisement)
Aeffe's FY17 revenues rise 11.6 percent

According to the preliminary data, in the year 2017 Aeffe Group registered sales of 312.6 million euros (383.6 million dollars) compared to 280.7 million euros (344.5 million dollars) in 2016, an 11.6 percent increase at constant exchange and 11.4 percent at current exchange rates. The company said, revenues of the prêt-à-porter division amounted to 239.8 million euros (294.3 million dollars), up by 11.4 percent at constant exchange and 11.1 percent at current exchange rates compared to 2016. Revenues of the footwear and leather goods division increased by 12.8 percent to 108.2 million euros (132.8 million dollars) both at constant and current exchange rates.

Commenting on the results, Massimo Ferretti, Executive Chairman of Aeffe Spa, said in a media statement: “The trend of 2017 reflects the strategy of constant attention to quality and to enhancement of our brands’ international positioning. Therefore we are very satisfied with the results achieved in terms of revenues, with double-digit growth of all the group’s proprietary brands. In light of 15 percent for our S/S 2018 sales campaign and the positive trend for the A/W 2018 pre-collections, we look to the future with renewed optimism.”

Aeffe’s performance across geographies

In 2017, sales in Italy, amounting to 48.7 percent of consolidated sales, registered a positive increase marking a 20.7 percent growth to 152.1 million euros (186.7 million dollars) compared to 2016, driven by organic growth both in wholesale and in the retail channel, which both benefited from local customers and high-end tourist flows. At constant exchange rates, sales in Europe, contributing to 21.7 percent of consolidated sales, increased by 13.6 percent, driven especially by the good performance in UK, Germany and France. Sales data, the company added, were positive both for the directly operated stores channel and for the wholesale channel.

The Russian market, Aeffe said, representing 2.9 percent of consolidated sales, reported a constant trend compared to last year, showing good signs of recovery in the last quarter of the year. Sales in the United States, contributing to 6 percent of consolidated sales, posted in the period a decrease of 17.5 percent at constant exchange rates. This change was mainly due to the slowdown in sales in the department stores. In the rest of the world, the group’s sales totalled 65 million euros (79.8 million dollars), amounting to 20.8 percent of consolidated sales, recording an increase of 3.7 percent at constant exchange rates compared to 2016, driven by positive trend in Greater China, which posted a 16.5 percent growth.

By distribution channel, in 2017, wholesale sales grew by 9 percent at constant exchange and 8.9 percent at current exchange rates, contributing to 70.1 percent of consolidated sales. The sales of directly-operated stores (DOS), representing 26.7percent of consolidated sales, showed a solid progression posting an 18.9 percent increase at constant exchange and 18.4 percent at current exchange rates, compared with 2016. The company further added that royalty incomes, representing 3.2 percent of consolidated sales, recorded an 11.4 percent increase compared to 2016.

Picture:Alberta Ferretti website

Hudson’s Bay Company (HBC) has announced that after a review and consideration conducted in consultation with financial and legal advisors which included an in-person meeting with Signa Holding GmbH and its advisors, the company’s board of directors has unanimously rejected the unsolicited proposal to acquire the German business and related real estate assets.

“The Board has unanimously concluded that Signa's proposal is not in the best interest of HBC's shareholders. It significantly undervalues our German business and related real estate assets and is not supported by sufficient certainty of financing to warrant further consideration at this time," said David Leith, lead independent Director of the HBC board in a statement.

"Our European business and related real estate assets represent critical components of our long-term strategy and we continue to have a high degree of confidence in our ability to drive results across our iconic retail banners. The company appreciates the interest in its European business and real estate assets, which validates the company's view of the considerable underlying value these assets provide to HBC's shareholders," added Richard Baker, HBC's Governor, Executive Chairman and interim CEO.

Zumiez January net sales surge 33.6 percent

Zumiez Inc. total net sales for the five-week period ended February 3, 2018 increased 33.6 percent to 66 million dollars, compared to 49.4 million dollars for the four-week period ended January 28, 2017. Excluding the impact of the 53rd week in fiscal 2018, total net sales in January increased 12.8 percent from the prior year. The company said, comparable sales increased 6.3 percent for the five-week period compared to 9.4 percent for the four-week period ended January 28, 2017.

Based on slightly higher than expected sales, the company now expects fourth quarter 2017 earnings per share to be toward the high-end of it most recent guidance range of 0.88 dollar to 0.90 dollar, which excludes any potential impact of recently passed tax reform.

Picture:Zumiez website

Primark publishes global supplier list as it embraces transparency

Value fashion retailer Primark has finally published a list of all the suppliers the company sources its clothes from. On Wednesday, the retail giant released the names and addresses of over 1,000 factories in 31 countries, along with the number of employees working in each factory and the gender distribution among employees.

The move comes after 70,000 consumers signed a petition calling on leading fashion brands including Armani, Primark, Urban Outfitters, Forever 21 and Walmart, asking them to publicly share information on their suppliers. The #GoTransparent campaign led by a coalition consisting of Human Rights Watch, Clean Clothes Campaign and the International Labor Rights Forum has been calling for greater transparency from these brands. However, Primark has so far been hesitant about publicly sharing the names of its suppliers.

Primark publishes global supplier list as it embraces transparency

Citing reason behind not revealing the names earlier, Paul Lister, who heads the Ethical Trade Team at Primark told the German Press Agency that the company did not disclose its suppliers' list earlier due to competition, but now no longer wants to avoid the industry trend seeking greater transparency. Prior to Primark sharing its supplier list, leading apparel retailers such as H&M, C&A and brands like Adidas, Esprit and Gap all shared lists of their global suppliers with the public.

Picture:Primark website

Michael Kors Q3 revenues rise 6.5 percent

For the third quarter ended December 30, 2017, total revenue at Michael Kors Holdings Limited increased 6.5 percent to 1.44 billion dollars, including a 114.7 million dollars contribution from Jimmy Choo, which the company owned for two months of the quarter. On a constant currency basis, total revenue increased 4.6 percent.

Commenting on the third quarter results, John D. Idol, the company’s Chairman and Chief Executive Officer, said in a statement: “We delivered better than expected results and saw the successful integration of Jimmy Choo into our luxury group. The Michael Kors brand continued to make progress on Runway 2020 initiatives across product innovation, brand engagement and customer experience.”

Highlights of the third quarter trading

Michael Kors retail revenue increased 1.1 percent to 846.3 million dollars driven in large part by 32 net new store openings since the end of the third quarter of fiscal 2017. The company said, comparable sales decreased 3.2 percent, with better than anticipated performance in the Americas and Europe during the holiday season. On a constant currency basis, retail net sales decreased 1 percent and comparable sales decreased 5.2 percent.

Michael Kors wholesale revenue decreased 8.9 percent to 430.8 million dollars and on a constant currency basis decreased 10.5 percent, driven by a strategic reduction in inventory levels in the channel. Licensing revenue increased 12.3 percent to 48.3 million dollars.

Gross profit for the quarter increased 9.7 percent to 884 million dollars and as a percentage of total revenue was 61.4 percent, while adjusted gross profit increased 9.9 percent to 885.6 million dollars and as a percentage of total revenue was 61.5 percent. This compares to 59.6 percent in the third quarter of fiscal 2017.

Net income attributable to MKHL was 219.4 million dollars or 1.42 dollars per diluted share compared to 271.3 million dollars or 1.64 dollars per diluted share. Adjusted net income attributable to MKHL was 273.4 million dollars or 1.77 dollars per diluted share compared to 271.6 million dollars or 1.64 dollars per diluted share, for the third quarter of fiscal 2017.

At December 30, 2017, Michael Kors operated 848 retail stores, including concessions, and an additional 150 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 998 Michael Kors stores worldwide at the end of the third quarter of fiscal 2018. At December 30, 2017, Jimmy Choo operated 179 retail stores, including concessions, and an additional 55 retail stores, including concessions, were operated through licensing partners. Including licensed locations, there were 234 Jimmy Choo stores worldwide at the end of the third quarter of fiscal 2018.

Michael Kors expects decline in Q4 comparable sales

For the fourth quarter of fiscal 2018, the company expects total revenue to be between 1.11 billion dollars and 1.13 billion dollars, including between 110 million dollars and 115 million dollars of incremental Jimmy Choo revenue. Comparable sales for Michael Kors are expected to decline in the low-single digits.

The company expects operating margin to be approximately 10 percent. Diluted earnings per share are expected to be in the range of 0.50 dollar to 0.55 dollar, including the dilution from Jimmy Choo of approximately 0.07 dollar.

For fiscal 2018, the company expects total revenue to be approximately 4.66 billion dollars, including between 225 million dollars and 230 million dollars of incremental Jimmy Choo revenue. Comparable sales for Michael Kors are expected to decline in the mid-single digits. The company expects operating margin to be approximately 18 percent. Diluted earnings per share are expected to be in the range of 4.40 dollars to 4.45 dollars, with no incremental impact from Jimmy Choo.

Picture:Michael Kors website

Asics Ventures, the investment subsidiary of sportswear brand Asics, has made its first investment, taking a stake in Ai Silk Corporation, a Japanese start-up affiliated with Tohoku University that is developing conductive textiles.

Ai Silk was founded in 2015 and specialises in conductive textiles that are comfortable on the skin, utilising technology researched by Tohoku University. Many devices that gather the body’s data from the skin tend to irritate the wearer’s skin when used over extended periods of time, whereas Ai Silk has developed a proprietary silk textile conductive technology that is gentle on the skin. The fabric is highly absorbent and causes limited allergic reaction and the fabric permits high conductivity and data gathering is extremely user-friendly.

Asics has stated that the technology will be used together with Asics Institute of Sport Science’s expertise in developing sports apparel made of high-performance materials.

One of the core strategies in Asics growth plan 2020 is to create distinctive innovations and the sportswear brand has been focusing on developing revolutionary products, services, and processes that could change customers’ lifestyles and experiences.

Asics Ventures was launched in November 2016 in order to pursue innovations at a faster pace, and has been collaborating with venture companies with leading-edge products, technologies, and personnel.

Louboutin loses EU trademark in red sole court case

Christian Louboutin has lost a landmark case in the European Union’s highest court against others using his signature red-soled shoe design.

The case saw Louboutin file a case against Dutch high street shoe company Van Haren, which in 2013 sold high-heeled shoes with a red sole, a design attributed to Louboutin.

The EU court’s Advocate General Maciej Szpunar sided with the defendant in a trademark suit Louboutin originally filed in 2012. At that time, the designer was victorious when Van Haren was forced to cease production of the shoes in question when the Brussels Court of Appeal ruled in favor of an injunction by Louboutin, finding that the red soles represented a distinctive marker for consumers.

Van Haren, which argued that the trademark in question is invalid, seemed to now have the upper hand, with Szpunar ruling that a trademark combining color and shape — such as Louboutin’s red-soled pumps — could be refused or declared invalid on the grounds of EU trademark law and sent the case back to Dutch courts for consideration.

While Louboutin has been victorious in trademark litigation in the U.S. — the designer successfully sued YSL in 2012 for trademark infringement — the brand has seen mixed rulings in other regions.

In February 2017, Swiss courts turned down a final appeal by the luxury label to trademark its red-soled heels there, finding that the red soles are merely an aesthetic element. The courts further noted that the fact that the brand has won the battle for trademark status in other markets including China, Australia and Russia did not mean the shoes should enjoy the same status in Switzerland.

In December, Louboutin was awarded 150,000 US dollars in damages and a permanent injunction against two shoe dealers — Kamal Family Footwear and Adra Steps — for infringing on the trademark in India.

Photo credit Christian Louboutin website; source Footwear news

Tapestry Q2 revenues jump 35 percent

For the second quarter of fiscal 2018, net sales at Tapestry totalled 1.79 billion dollars compared to 1.32 billion dollars in the prior year, an increase of 35 percent on both a reported and constant currency basis. Gross profit for the period was 1.18 billion dollars on a reported basis, while gross margin was 66 percent on a reported basis compared to 68.6 percent in the prior year. On a non-GAAP basis, gross profit totalled 1.20 billion dollars, while gross margin was 67 percent compared to 68.6 percent in the prior year.

Commenting on the second quarter results, Victor Luis, Chief Executive Officer of Tapestry, Inc., said in a statement, “Our second quarter performance exceeded our expectations, driven by a return to growth for Coach, sales gains at Stuart Weitzman and the contribution of Kate Spade as we continued to make progress on the brand’s integration. We have been especially pleased with the key appointments announced during the second quarter, including strengthening our Coach leadership team with the additions of Laura Dubin-Wander as President, North America and Fredrick Malm as President, Europe & International Wholesale. At Kate Spade, we were delighted to name Nicola Glass as the brand’s new Creative Director.”

Review of Tapestry’s second quarter results

Net income for the quarter was 63 million dollars on a reported basis, with earnings per diluted share of 0.22 dollars compared to 200 million dollars with earnings per diluted share of 0.71 dollar in the prior year period. On a non-GAAP basis, net income for the quarter totalled 306 million dollars, with earnings per diluted share of 1.07 dollars compared to 211 million dollars with earnings per diluted share of 0.75 dollar in the prior year period.

Net sales for Coach brand totalled 1.23 billion dollars, an increase of 2 percent on a reported and constant currency basis. Global comparable store sales rose 3 percent, including a benefit of approximately 100 basis points driven by an increase in global ecommerce. Gross profit for Coach totalled 846 million dollars on a reported and non-GAAP basis and gross margin was 68.8 percent, including approximately 10 basis points of pressure from currency. This compared to gross margin of 69 percent in the prior year period on both a reported and non-GAAP basis.

Net sales for Kate Spade totalled 435 million dollars, while global comparable store sales declined 7 percent, including the negative impact of approximately 400 basis points from a decline in global ecommerce. Gross profit for Kate Spade totalled 258 million dollars on a reported basis, while gross margin for the period was 59.4 percent. On a non-GAAP basis, gross profit was 275 million dollars, while gross margin was 63.3 percent.

Net sales for Stuart Weitzman were 121 million dollars, an increase of 2 percent. Gross profit totalled 73 million dollars on a reported basis, while gross margin for the quarter was 60.8 percent on a reported basis compared to 64.3 percent in the prior year. On a non-GAAP basis, gross profit totalled 75 million dollars, while gross margin was 61.9 percent as compared to 64.4 percent in the prior year.

FY18 revenues expected to increase 30 percent

Tapestry continues to expect revenues for fiscal 2018 to increase about 30 percent versus fiscal 2017, to 5.8 to 5.9 billion dollars, with low-single digit organic growth and the acquisition of Kate Spade adding over 1.2 billion dollars in revenue. In addition, the company continues to project operating income growth of 22 percent to 25 percent driven by mid-single-digit organic growth, the acquisition of Kate Spade, and estimated synergies of 30 to 35 million dollars.

Overall, the company now projects earnings per diluted share in the range of 2.52 dollars-2.60 dollars, an increase of about 17 percent to 21 percent for the year, including mid-to-high single digit accretion from the acquisition of Kate Spade.

Picture credit:Tapestry Inc

John Lewis weekly fashion sale up 2.3 percent

Total sales at John Lewis for the week ending February 4, 2018, were down 0.2 percent on the same period last year. However, fashion sales were up 2.3 percent largely due to beauty, wellbeing and leisure sales, which were up 9.5 percent. The company said, the launch of our spring campaign ‘Only Here’ boosted sales of contemporary lifestyle brand Kin across womenswear, accessories and menswear with Kin womenswear sales up 53 percent on last year.

Electrical and home technology sales were up 4.1 percent driven by strong sales of electrical items with demand for TVs and smart speakers. Sales of televisions were up 26percent compared to last year, while home sales were down 6.9 percent on the same week last year. However, sales of bedlinen were up on last year and Cookshop performed well, with strong sales of re-usable coffee cups and water bottles.

Picture:John Lewis media centre

New Look posts 10.6 percent fall in Q3 like-for-like sales

For the 39 weeks ended December 23, 2017, New Look Group has reported 6.3 percent fall in revenue at 1,069.2 million pounds (1,494.2 million dollars). Group like-for-like sales declined 10.6 percent, while like-for-like sales in the UK were down 10.7 percent. Company-owned website sales dropped 15 percent, however third-party ecommerce sales improved by 21.9 percent.

Commenting on the third quarter trading, Alistair McGeorge, the company’s Executive Chairman, said in a press release: “As we expected, Q3 trading remained challenging, with sales and margins impacted by the high level of discounts. Our immediate priority is to exit the current financial year without excess stock. By entering FY19 with clean stock levels we will be in a good position to deliver a strong full price Spring/Summer offer.”

Adjusted EBITDA in the third quarter was 43.8 million pounds (61.2 million dollars) and underlying operating loss amounted to 5.1 million pounds (7.1 million dollars). The company said, loss before tax reached 123.5 million pounds (172.5 million dollars) during the quarter under review.

Picture:Facebook/New Look Style