Gap revamps, Rodarte reviewed, Fashion fakers, Sir Philip Green interviewed, Graduate Fashion Week winners

oldnavy.com, courtesy of Old Navy

Gap Revamping Old Navy, Seeking To Reclaim Mkt Share (WSJ) “Gap, which is the largest U.S. clothing chain, will remodel 50 Old Navy stores this year after a successful pilot in California, according to Chief Executive Glenn Murphy, speaking at a Piper Jaffray conference in New York Wednesday.” Rodarte: California dreamers put B-movies before business (Times) “Interest in the Mulleavy sisters and their fantastical

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Prada’s profit falls, Cartier cuts hours, Gap teams with ASOS, Missoni’s London store, Ballantyne’s new Chairman

Prada S/S 09 Ad campaign, courtesy of Prada

Prada lays foundations for future growth (Financial Times) “Prada, the privately owned Italian fashion house, reported on Tuesday a 22 per cent fall in net profit for 2008 of €99m and sought to position itself for growth when the global economic crisis eases.” Cartier cuts working hours as demand dwindles (Reuters) “Richemont, the world’s second-largest luxury goods group behind LVMH, is cutting working

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Recessionary designs, Rochas’ clothes, Gap’s boss takes pay cut, Hermes holds steady…

Lanvin A/W '09, courtesy of the New York Times

Two Words for Fall: Toughen Up (New York Times) The recession could turn out to make designers better. Do You Want Clothes to Go With That Perfume? (WSJ) At Rochas, there are now clothes that come with its legendary scent. Gap boss takes pay cut (Drapers) “Gap’s chairman and chief executive Glenn Murphy will take a 15% salary cut as part of plans to cut costs.” Hermès Net Up 0.8 Percent (WWD) Hermès post steady sales

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Gap earnings fall, US economy contracts, Reiss’ younger line, Just Cavalli presents

Gap, photo courtesy of Slate

Gap earnings rise but sales fall (Drapers) “Total international sales fell slightly to $505 million over the fourth quarter.” US economy contracts 6.2% (FT) “The US economy contracted by an annualised 6.2 per cent in the final quarter of last year, revised government figures showed on Friday, the sharpest quarterly contraction since 1982 and a sign of an even deeper recession.” Reiss plans young, cheaper

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Russians in Milan, GAP hires students, Shopping and ethics, Saks Fifth Avenue’s giant loss

Milan

Russians top Milan’s list of shoppers (IHT) “Russians are Milan’s largest national group of fashion shoppers, commanding 38 percent of the tax-free pie in 2008, despite their own economic woes back home,” reports IHT. The GAP Hires Students (Fashionista) Gap taps RISD students to design cardigans. Now that the pricing dam has burst (IHT) “Shopping is becoming a matter of ethics.” Battling the

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Theyskens at Nina Ricci, Retail stocks, New consumer mind-set, Retail winners and losers

Nina Ricci Pre fall 2009, courtesy of WWD

Nina Ricci: Theysken’s Beat Goes On (WWD) Olivier Theyskens will be staying put at Nina Ricci with an “expanded accessories line, particularly handbags.” Retail Stocks: Sizing Up 2009 (Seeking Alpha) Seeking Alpha lists the reasons why 2009 will be an ugly year for many brands. Retail’s winners and losers (Just-Style) Wal-Mart was a retail winner in 2008, but Gap and Abercrombie & Fitch were amongst the

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Japan’s Fast-Fashion Frenzy, McCartney’s new stores, Gap’s resurgence, Shoppers’ short attention

Japan's Fast-Fashion Frenzy (JC Report) "Japanese consumers have fallen head over heels for cheap clothing and may never turn back." McCartney Sets New Tokyo, Paris Stores (WWD) Although the brand is only seven years old, Stella McCartney has opened new stores in Tokyo and Paris. The Gap's Resurgence: Great Start to the Holiday Season (Seeking Alpha) At Gap, "spending is up significantly" for November 2008 compared to last November. Retailers Will Find It Hard to Keep Shoppers' Attention This Year (Seeking Alpha) Though Black Friday sales were impressive in the US, many analysts think that consumers wouldn't be able "to sustain their buying frenzy for the duration of the holiday season." People lining up to purchase goods at Topshop in…

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Mickey Drexler | The magic of merchandising

Mickey Drexler is probably the most famous merchandiser in the fashion world. Merchandisers are known for their magical ability to combine art and science, analytics and gut feel, experience and predictive skills. Over twenty years, Drexler built the Gap into a bonafide worldwide business from a struggling 400-store regional chain, using his product and merchandising skills and a 20-piece wardrobe that he kept on a list in his drawer while middling it out in other roles that didn't inspire him. I came across this conversation from earlier this year between Mr. Drexler and Charlie Rose, one of America's most respected and talented interviewers. Charlie Rose says he "wants to go to school" on Drexler's experience -- which exactly what he…

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The Gap and Zara | A tale of two brands

So it's official. As of the first quarter of 2008, Inditex, the phenomenally successful Spanish fast-fashion conglomerate and parent company of Zara, has officially overtaken The Gap to become the world's biggest fashion retailer. In the meantime, the once venerable Gap is still tweaking its product around the edges, struggling to find a formula that works. Zara stores have been popping up on high streets and in malls around the world, registering  a whopping €6.3b in sales in 2007, making it larger than Louis Vuitton. Perhaps more surprisingly, the performance of Inditex's smaller brands like Bershka and Massimo Dutti has also been strong, registering revenues of €925m and €696m respectively, in 2007, making Bershka's business larger than that of Christian…

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Gap: American slump, European bounce?

Earlier this year, the Business of Fashion visited a Central London outpost of the Gap, one of America's most well-known high street retail chains. We left sorely disappointed with the product, the slow pace of change of collections (the opposite of 'fast fashion'), and the deep discounting that created detrimental expectations in the minds of Gap's core consumer base. Then, a few weeks later Paul Pressler was booted out of the CEO suite, a swift reaction to the  financial results achieved under his tenure.  To say the least, things have been looking pretty dismal indeed. The bad news continued when the Gap reported yet another decrease in overall same-store sales today across its three brands, dropping 7% versus last year…

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Mind the Gap?

Big fashion business news Stateside last week were the dismal sales results of Gap Inc, the venerable American high street retailer that also owns Old Navy and Banana Republic. December 2006 like-for-like sales were down 8% versus 2005, which in turn were down 9% versus 2004. In the same period, many other retailers saw an increase in sales versus last year. Of late, the Gap has been struggling to recapture the heady days of growth and market dominance it enjoyed in the late 1990's. So, what gives? How did the Gap lose its way? The arrival of European retailers like Zara, H&M and Mango has surely played a big part. These retailers, who quickly copy catwalk trends and produce them…

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