Bernard Arnault, Francois Pinault and Ralph Lauren, courtesy of Forbes

Fashion’s Billionaires (Forbes)
“If hemlines suggest whether the stock market goes up or down, most economic indicators say it’s likely we’ll be looking at longer skirts for the foreseeable future. But even if the economy doesn’t show us more leg for a while, the fortunes of fashion billionaires–who decide what we wear, where we buy it and what bag and shoes goes with it–should remain relatively flush.”

As Fashion Exports Drop, Hong Kong Refocuses on Design (Voice of America)
“Hong Kong’s Fashion Week features the usual parade of models on catwalks showing the latest designs, many of which end up in stores worldwide a year later. But as the global economic crisis lingers, exports of Hong Kong fashions are down more than 75 percent for January through April, from a year ago.”

CIT, Clients Scramble to Secure Lifelines (WSJ)
“Worries about the fate of CIT Group Inc. cascaded through the retail and manufacturing industries on Thursday, as companies stopped shipments and businesses worried about cash being tied up at the lender should it file for bankruptcy-court protection.”

Kellwood Extends Deadline For Debt Exchange Offer To Fri (WSJ)
“Kellwood Co. said it was unable to renegotiate and extend its bond issue that matured Wednesday and its board extended the deadline for acceptance of a proposed debt exchange until midnight Friday.”

Uniqlo visual merchandising

LONDON, United Kingdom — “Men’s and women’s polo t-shirts in 25 colours from £12.99!” Ads announcing this Uniqlo promotion have been plastered alongside London buses this month, as well as being featured front-and-centre in Uniqlo shops everywhere. Same-store sales rose 18.3 percent in May 2009 over last year for the Japanese retailer, and the company’s stock hit five-year record highs.

Over at American Apparel, which uses a similar merchandising approach, total retail sales increased 16.5 percent to $78 million for the first quarter of 2009 compared to the same period in 2008. It would seem that both American Apparel and Uniqlo have managed to accurately address the mood of the market, hitting a sweet spot in an otherwise suffering sector. Although many factors play into these high street success stories, it is worth having a closer look at the merchandising strategy shared by both, offering a functional item in a variety of colours and encouraging the purchase of multiple units.

… Continue Reading

Hermès store in London, courtesy of 2cvtv.com

Hermès shows resistance in luxury downturn (The Globe and Mail)
“We have seen a slowdown in sales growth since October but we are still growing,” says Hermès finance director Mireille Maury.

Bally to Launch E-Commerce (WWD)
Bally, the Swiss luxury brand joins in on the e-commerce game. (Subscription required)

Polo Ralph Lauren’s Net Falls 6.6% (WSJ)
Ralph Lauren Q3 earnings fell 6.6%, and plans to cut back on their fiscal outlook this year were reviewed.

LVMH says January “not bad,” no 2009 outlook (Reuters)
LVMH Chief Executive Bernard Arnault said on Thursday January was ‘not a bad month’ with sales rising.

It’s been a milestone year for Ralph Lauren, who has been celebrating 40 years of WASP-inspired fashion, which he has successfully taken all over the world. This should be no surprise, as it’s not like Lauren has been quiet about it.

Along with a gala event held during fashion week in Central Park in New York, he has had wall-to-wall coverage of his anniversary in almost every fashion magazine on the planet from the ultra-mainstream to the uber-edgy.  I must have seen at least 10 multi-page spreads, celebrating Lauren and his contribution to fashion.

To his credit, Ralph Lauren has had something genuinely impressive to celebrate. How many other American designers (or any designer, for that matter) can boast of a multi-billion dollar empire built from scratch without the help of a major luxury group? The only other one that comes to mind is Armani.

In any case, it must have been extremely disappointing then for the company to release a surprise profit warning, stating:

Given the current macroeconomic challenges in the U.S., the Company thought is was prudent to recalibrate expectations for the back half of this fiscal year with a more cautious view on sales and margins for its domestic operations.

… Continue Reading