retail Business news
ALEXON offloads its menswear division
Alexon Group plc [LSE: AXN] (owners of: Ann Harvey, Eastex, Dash, Minuet, Kaliko, Bay Trading and Alex & Co. brands), announced their preliminary results for the 52 weeks ending on the 26th of January 2008.

The main financial highlights are as follows:
— Operating profit, before exceptional items, of £15.0m (2007: £14.5m)
— Operating profit, after exceptional items, of £10.5m (2007: £9.9m)
— Turnover from continuing operations of £262.1m (2007: £271.2m)
— L-f-l sales (excluding Menswear) for the period down 5.6 per cent, with gross margins up 1.5 per cent on prior year.
— £17.1m returned to shareholders in December 2007 with £4.5m cash balances and a strong balance sheet.
— Unchanged final ordinary dividend of 6.00p, making a total of 9.00p for the year (2007: 9.00p)

John Osborn, Chief Executive, commented: “The disposal of the Menswear Division now eliminates ongoing losses associated with this division and enables us to concentrate on our core womenswear business. Whilst the outcome for the year will be affected by the overall trading climate, the business is well placed to continue its recovery.”

The company stated the Menswear Division had no strategic future within the Group and the business was sold at the beginning of February 2008 for £1. A loss of £15.1 million after tax was recorded in the year, as the division was reclassified as held for sale and its assets and liabilities recorded at fair value.

Visit: Alexon Group Plc [31 March 2008]

John Lewis launches Spring television advertising campaign
John Lewis will launch its Spring television advertising campaign on Tuesday 1st of April — its first at this time of year since 2005.

Created by Lowe London, the campaign — consisting of one 40-second ad and four 10-second ads — will showcase the new collection of Spring homeware.

'We were keen to show how just one product can transform both a person's outlook and home,' said Gill Barr, Marketing Director, John Lewis. 'The ad aims to give our customers inspiration and to help them see their home in a new light.'

The TV ad is set on a theatre stage and features four different performances inspired by John Lewis products. Each performance focuses on one of four products — a yellow parasol, a field of cushions, a chaise lounge and a variety of chandeliers. Each scene has a different musical style to complement the product. The ad concludes with all four performers taking a bow on the stage with the end line — John Lewis. Set the stage for Spring.

Tom Hudson, Creative Director at Lowe London, said: 'The new commercial is bursting with colour and music that makes you smile. It's bright and beautiful. Like Spring at John Lewis.'

The campaign will run for four weeks on TV, with its first slot during the Champions League on ITV1.

Visit: John Lewis Partnership | Greenbee | Waitrose [28 March 2008]

Under the direction of True Religion Founder, Chairman, Chief Executive Officer and Creative Director Jeffrey Lubell, the women's ad images were shot in Malibu, California by photographer Ashley Barrett, whose clients include Dior, Bloomingdale's, Elle, and Women's Wear Daily. The women's ads showcase supermodel Marisa Miller, a Victoria's Secret Angel and the 2008 Sports Illustrated Swimsuit Edition cover girl, in True Religion's premium denim, distinctive knits and sportswear, swimwear, footwear and accessories. The men's ads feature the Nathan Giant Big T in the newly introduced Blacklight denim group.

Jeffrey Lubell, Chairman and Chief Executive Officer of True Religion Apparel, Inc said: "Our advertising campaign in top-tier fashion magazines will bolster True Religion's position as a premier luxury brand," said Michael Buckley, President of True Religion Apparel, Inc. "We are confident that our advertising investment of nearly $2 million will increase awareness of the True Religion brand and translate into sales growth across all of our sales channels."

Visit: True Religion Apparel, Inc. [27 March 2008]

— Profit after financial items for the first quarter was SEK 4,057 m (3,411), an increase of 19 per cent. Group profit after tax was SEK 2,941 m (€2,302), corresponding to SEK 3.55 (€2.78) per share, an increase of 28 per cent.

— Gross profit amounted to SEK 11,770 m (€9,876), corresponding to a gross margin of 59.6 per cent (58.9).

— Operating profit amounted to SEK 3,799 m (€3,223). The operating margin was 19.2 per cent (19.2).

Visit: H&M [27 March 2008]

The ‘celebrity’ fragrances tend to be more expensive than mass-market scents but more modestly priced than classic brands and, as such, have been responsible for consumers trading up, at the expense of cheaper products, rather than cannibalising sales of premium products.

According to the Scottish Daily Record (17th October 2007), around one in five young adults in the UK use a fragrance endorsed by a celebrity, of which there were at least 30 new introductions in 2007 alone.  The popularity of scents such as: Stunning by Katie Price, Stella by Stella McCartney and Mystery by Naomi Campbell; has boosted retail sales significantly.

Despite predictions for a frugal Christmas on the high street in 2007, the fortunes of retailers varied.  For example, Superdrug said its Christmas sales of fragrances were boosted by the popularity of celebrity perfumes, which made up around 40 per cent of all fine fragrances sold at its high-street chains that Christmas.

It would seem the proliferation of celebrity magazines and programmes have fuelled demand as, consumers not only wish to look like their favourite but aspire to live their lifestyles too.

The Cosmetics & Fragrances Market Report 2008
Price: £605
Sales Tel: 020-8481 8750 | E-mail: sales@keynote.co.uk
Visit: Key Note

Guess' marciano pleased with strong performance
Guess?, Inc. (NYSE: GES) financial results for the thirteen weeks ending on the 2nd of February 2008, recorded net earnings of $55.2 million, an increase of 20.3 per cent compared to net earnings of $45.9 million for the recast fourteen week period ending on the 3rd of February 2007.

Diluted earnings per share increased 20.4 per cent to $0.59 in the current quarter, versus $0.49 for the comparable period last year. There were several items that impacted the comparability of the quarterly results. Last year's quarter included an extra operating week, non-operating asset gains, a low tax rate and debt retirement costs, while the tax rate for this year's fourth quarter was relatively high. Collectively, these issues negatively impacted the quarterly earnings per share comparison by about $0.08 per share.

Paul Marciano, Chief Executive Officer, commented, "We are very pleased with our strong financial performance this quarter, especially considering the current economic environment. Once again, all of our business segments contributed to our solid revenue and earnings growth in the period. Our international businesses remained the primary drivers of this growth, with Europe and Asia representing about two-thirds of the revenue increase and half of the operating profit growth in the quarter. These results marked our 18th consecutive quarter of earnings growth."

Marciano continued, "We had another outstanding quarter which capped off yet another record-setting year in which we increased revenues by 40 per cent and net earnings by 42 per cent. In fiscal 2008, our international businesses accounted for more than two-thirds of our operating earnings, further solidifying our position as a true global fashion brand. This proves that the strategic investments we are making continue to yield results. Our focus remains the globalization of our brand. We continue to expand both domestically and internationally to capitalize on the strength of our brand and the power of our highly diversified business model. We are confident that we are well positioned to continue to deliver strong financial results in fiscal year 2009 and beyond."

Visit: Guess [27 March 2008]

Poor Mum
According to figures released by shopping portal eDealsUK, consumers spent 15 per cent less on pressies for their mother's on Mothering Sunday compared to last year.

The figures compiled by the portal revealed the average online spend per gift was down 15 per cent compared to 2007 figures. eDealsUK analysed the shopping trends of half a million of its members across more than 100 big name shopping websites. While the average spend per gift was down, the total amount of online Mother’s Day spend went up 71 per cent year-on-year. Flowers, greeting cards and chocolates remained the predictable favourites for the celebration on 2nd March. But eDealsUK also saw a 62 per cent increase in sale of beauty products such as anti-aging creams. The site’s marketing manager Nadeem Azam said: “This is a clear indication that the rising cost of living is starting to affect consumer purchases. More and more people turned to the internet as a source of presents for their mother this year, but spent less on each gift."

He continued: “It is fascinating to see an increase in online sales of beauty products. Maybe as children have turned to the internet and asked an adult to help them with a purchase, they have been persuaded to buy useful products rather than flowers which look nice, but don’t last.”

eDeals UK Limited has been providing cash back services for hundreds of thousands of customers, who have saved on millions of pounds of shopping over the last four years. The concept is simple. Shoppers log into eDealsUK before shopping on big name website as normal. Most of the commission earned by eDealsUK is then returned to the shopper as cash back. It has 44 staff supporting its 180 websites, including more than 50 loyalty reward portals run on behalf of partners. In all the company gives customers cash back from more than 1,400 UK retailers. Affiliate marketing grew by 45 per cent in the UK last year, with sales exceeding £3 billion in 2007.

Visit: eDeals UK [25 March 2008]

“CenterStone provides a worldwide B2B e-commerce solution that is being used by thousands of specialty retailers, sales reps and industry professionals in the snow sports and outdoor recreation industries,” said Peter Leffler, Director of Customer Relations at The Quiksilver Rossignol Group. "In order to continue to provide a superior level of customer service in today’s business environment we felt that our Mountain Center brands — including Rossignol, Dynastar, Lange, Mervin Manufacturing and Roxy — needed a proven solution that would be quickly adopted by users, and CenterStone’s iVendix solution has rapidly become the industry standard for B2B. With more than 10,000 users of their Web-based application, we are confident that our customers will also be quick to embrace CenterStone’s iVendix solution. Our customers will be able to conduct business with all our brands, see product availability and place orders 24/7, at their convenience. Having the best products has always been an important tradition at The Quiksilver Rossignol Group, but being easy to do business with will also help us continue to set our brands apart. By adopting iVendix, with this new B2B solution, The Quiksilver Rossignol Group expects to take a leadership role by setting a new standard for customer service for hard goods and apparel in the snow sports industry.”

“The Quiksilver Rossignol Group is now ‘live’ on iVendix, and CenterStone is already processing pre-season orders for Rossignol, Dynastar, Roxy and their other brands for the ’08-’09 season, which means that these brands are already getting a head start on their profitability for next season,” said Tom Detmer, CEO of CenterStone Technologies. “The Quiksilver Rossignol Group has many sought-after brands for a large percentage of specialty retailers that currently use our B2B solution, so CenterStone’s dealer community is very pleased that they selected iVendix for their B2B e-commerce needs. iVendix delivers an extensive user community in the snow sports industry that is continuing to grow at a very rapid pace. And, it is the adoption rate by this user community that will drive the ROI for The Quiksilver Rossignol Group. Based upon our success with other leading consumer brands that sell through specialty retail, we have no doubt that CenterStone will contribute to the ongoing growth and success of The Quiksilver Rossignol Group,” Detmer added.

CenterStone Technologies, Inc. is an international developer of Web-based B2B e-commerce software for manufacturers selling through specialty retail channels.

Visit: CenterStone Technologies Inc. [25 March 2008]

Next Prepares for Difficult Times Ahead
Next plc's [LSE: NXT] is one of the many UK retailing giants who are battening down the hatches to accommodate a retailing downturn that is causing havoc with profits. Increases in store trading space from 4,823 to 5,201 (including stand alone Home Stores in Thurrock Retail Park and on Tottenham Court Road, London) has produced only modest returns for the financial year ending in January 2008.

Next plc's Retail profit increased by 1.0 per cent against last year however, the company's Directory achieved bumper growth, with revenues (excluding VAT to January) rising from £774.5m in 2007 to £799.8m in 2008.

In foreign markets too, Next made marked gains from £49.8m in 2007 to £54.1m in 2008 indicating opportunities for further growth. John Barton, Chairman, said: "We have a robust operating model and strong cash flows, which will stand us in good stead as we go through what we anticipate will be a difficult trading period. We will continue to return cash to our shareholders through dividends and share buybacks. However, our first priority will be to ensure that the Company protects its strong financial base."

Next also announced that during the year, Steve Barber joined the Board as a Non-Executive Director and he will take over from Derek as Chairman of the Audit Committee.

Visit: Next Plc [25 March 2008]

Oscar Feldenkreis, President and Chief Operating Officer of Perry Ellis International, said: “Home Fashion was a missing element of the Perry Ellis lifestyle. We are very excited about this new partnership with Revman, a leader in the home fashion industry. Their design capabilities and industry knowledge make them the right partner to interpret the significance of the Perry Ellis lifestyle for the Home.”

The line will be available at Dillard’s and other department stores nationwide in fall 2008.

Visit: Perry Ellis International | Revman International Inc. [24 March 2008]

Phillips-Van Heusen brands face up to the challenging economic times
Phillips-Van Heusen Corporation [NYSE: PVH] reported 2007 fourth quarter and full year results.

The company's financial highlights for the quarter included:
— Earnings per share increased 17 per cent to $0.55 from $0.47 in the prior year’s fourth quarter.
— Net income was $30.3 million compared to $26.8 million in the prior year’s fourth quarter.
— Revenue increased 5 per cent to $584.5 million from $557.0 million in the prior year’s fourth quarter.

And for the year 2007:
— Earnings per share was $3.21, an increase of 22 per cent over the prior year’s earnings per share of $2.64.
— Net income was $183.3 million compared to prior year net income of $155.2 million.
— Revenue increased 16 per cent to $2,425.2 million from $2,090.6 million in the prior year.

Commenting on these results, Emanuel Chirico, Chairman and Chief Executive Officer, noted, “Given the difficult retail environment, we are extremely pleased with our fourth quarter and full year results. Calvin Klein continues to exhibit strength both domestically and internationally and is driving our revenue and earnings growth. Our strategy of operating multiple brands across multiple channels of distribution has also helped us achieve our strong results in spite of the macroeconomic challenges that the overall retail environment has been facing. Additionally, it enables us to continue investing in new areas of growth, as well as in marketing in order to maintain the strength of our brands and keep them relevant to our target consumers.”

Chirico continued, “We remain focused on investing in and growing our businesses and maximizing the potential of each of our brands. Specific growth initiatives include the 2007 launches of both IZOD women’s sportswear and Calvin Klein specialty retail, as well as the upcoming launch of Timberland men’s sportswear, targeted for Fall 2008. In addition, we were able to bring in-house the Calvin Klein, IZOD and Eagle neckwear businesses, allowing us to further leverage the operating platform of our Neckwear Group. There continues to be high global demand for our Calvin Klein brand, and this demand continues to grow as we enter into additional markets, in: China, India and Russia, and new product categories, like cosmetics. As a testament to our commitment to grow all of our brands internationally, we have recently expanded our wholesale operations to include sales of certain of our products to department and specialty stores throughout Canada and parts of Europe, and have entered into many new license agreements for our brands with partners across the globe. In fact, approximately 25 per cent of our consolidated earnings before interest and taxes is generated internationally, driven by the significant international component of the Calvin Klein licensing business. As we move forward into 2008, we will continue to keep these international growth opportunities in the forefront of our strategy.”

Visit: Phillips Van Heusen Corporation [24 March 2008]

IZOD Arrives in India with Arvind
A new licensing agreement between Phillips-Van Heusen Corporation (NYSE: PVH) and Arvind Brands Ltd. (a division of Arvind Mills Ltd); will see the design, wholesale and distribution of apparel — under PVH's well-known IZOD sport-inspired lifestyle brand — in India.

"PVH is represented in India through the presence of several of its brands, including ARROW, which Arvind has distributed for more than 15 years. We have been impressed by Arvind's management team and the growth of our ARROW brand in India, as well as the number of other prominent international brands Arvind manages in India. We believe that Arvind has the skill, business acumen, experience and infrastructure to introduce and develop successfully the IZOD brand in India." said Kenneth Wyse, President — Licensing, PVH.

"Arvind Brands is excited to be furthering its relationship with PVH - a company with which we have a close relationship," said J. Suresh, CEO of Arvind Brands. Continuing, he said, "With this relationship, we will now have a true iconic American sportswear brand with which to build a strong presence in the sportswear segment. We believe this is a segment that is at the cusp of explosive growth in India."

Visit: Phillips-Van Heusen Corporation | IZOD [24 March 2008]

BANANA REPUBLIC opens first EUROPEAN FLAGSHIP STORE in london
London's position as 'the' premiere capital of fashion, has been reinforced by yet another opening of a flagship store.

Not long after H&M unveiled its new flagship store on London's Regent Street, Gap has opened its Banana Republic store; the company’s first European flagship store based in the heart of London’s west end in Regent Street. Stephen Sunnucks, President, Gap Inc. Europe comments, “With its affinity for fashion and luxury products, London has the potential to be a strong market for Banana Republic, and our customers in Europe have expressed a great deal of interest in us bringing the brand here. This is an exciting first step for Banana Republic in Europe.”

The 17,000 square foot store — consisting of three floors of retail heaven — houses Banana Republics women’s and men’s ready-to-wear collections, accessories and personal care products.

In renovating this flagship space, Banana Republic retains the building’s rich history while combining contemporary and traditional elements to evoke the brand’s essence of affordable modern luxury.

Delivering elevated design and luxurious fabrications at affordable prices, Banana Republic presents a range of great working wardrobe solutions. The new Regent Street store also introduces Monogram — a new collection of wardrobe builders and statement makers that represent the very best of Banana Republic. Each item is created in limited quantities using the finest fabrics, most refined techniques and meticulous attention to detail.

It is hoped the newly opened store will become ‘the’ shopping destination for Londoners and visitors alike.

Banana Republic 224 Regent Street, London W1B 3BR

Visit: Banana Republic [20 March 2008]

NEW GUIDANCE FROM BSI BRITISH STANDARDS TARGETS LOW CONSUMER SATISFACTION AND CONFIDENCE 
Freedom of choice is allowing consumers to vote with their purse if, they feel they are not receiving the customer service they deserve according to new research from BSI British Standards. The report, which also announced new customer satisfaction standards, also found:
 
— 64 per cent of those surveyed believe that customer service in the UK is getting worse
— 72 per cent moved to a competitor after receiving poor customer service
— 55 per cent of customers are left unsatisfied by the handling of their complaint
 
To help organizations improve levels of satisfaction among their customers, BSI British Standards has recently published two new standards in this area:
 
BS ISO 10001 Customer satisfaction —
Guidelines for codes of conduct for organizations provides guidance on the design and implementation of a customer satisfaction code of conduct.  Implementation of the standard will potentially reduce confusion about the products and services a customer will receive and will explain what will happen in the event of a quality problem.
 
BS ISO 10003 Quality management — Customer satisfaction —
Guidelines for dispute resolution external to organizations is designed for situations when complaints cannot be resolved within an organization.  It gives guidance on facilitation, advice and decision making within the dispute resolution process, including direction on the selection of resolution services and the involvement of top management in the process.
 
Mike Low, Director of BSI British Standards, said, “Many people will have experienced poor customer service and this survey shows just how damaging that can be to an organization.  Customers are not afraid to turn to a competitor if they feel they have been treated poorly.  It’s also very important that customers are aware of how their complaint will be handled and how disputes will be resolved.  BSI is now offering a suite of customer satisfaction standards which have the potential to address these issues and improve customer confidence.”
 
Both new standards are suitable for use by a wide range of organizations, including small businesses.
 
Visit: BS ISO 10001 is available to purchase from BSI Group
Visit: BS ISO 10003 is available to purchase from BSI Group

Ted Bake's up sales increase
The only certainty there is in the current economic climate, is the fact that retail personnel will have to work so much harder to get the units of sales needed to keep them afloat.

Relying on impulse buys from consumers keen on emulating the latest celebrity favourite or those who use shopping as a leisure passtime, seems to herald back to the times of plenty. Now, with living costs rising it would seem consumers are only venturing into shops for things they truly need — not what they desire or what at a whim. Trying to get them to continue to buy to the extent where merchandise stays in their wardrobe and not on the returns rail, will take strategies that: puts goods on par with covetable items to be found in the realms of the luxury goods market and, a finely tuned business adept at procuring market share, controlling stock levels as well as staff.

As many of the high street stalwarts bemoan trading conditions, relatively new players like Ted Baker [LSE: TBK] are finding ways of bucking the downward sales trend but, what's their secret? According to Ray Kelvin, Founder and Chief Executive, he said of the company's results (for the 52 weeks ending on the 26th of January 2008): “I am delighted to report yet another year of success for Ted Baker as we continue the careful international expansion of the brand. The reaction to our Spring Summer 2008 collection has been encouraging with retail sales ahead 16.1 per cent on the same period last year. We believe that the strength of our brand and our robust business model mean we are well placed to navigate the current uncertain economic outlook. At this early stage, we look forward to another year of growth and development of the Ted Baker brand.”

With profits before tax up 10 per cent from £20.1m in 2007 to £22.1m and predictions of growth in a year others are describing as 'challenging', they are doing something right.

Visit: Ted Baker [18 March 2008]

Debenhams benefits from the season of good will
Debenhams plc [LSE: DEB], made a modest improvement in sales for the 26 weeks ending on the 1st of March 2008.

The 1.2 per cent increase on the previous year, was attributed to gains made over the crucial trading period over Christmas and the new year. Like-for-like sales for the period were 0.7 per cent lower than last year, reflecting challenging trading conditions across the sector in January and February. Despite this, Debenhams has gained market share in all major clothing categories.

Gross margin for the first half is expected to be down year-on-year by some 20 basis points. This is largely due to price realignments in some ranges in the second half of last year, particularly in menswear. Terminal stocks are as planned and remain at historical levels.

Profit before tax for the first half is expected to be in line with market estimates.

Commenting on the first half sales, Rob Templeman, CEO of Debenhams, said: “Following a good performance over Christmas and the January sale, market conditions were tough through the remainder of January and February. Nevertheless, we are pleased with the response of customers to our new season’s ranges and to the improvements we have made in quality, design and value at all price levels, as evidenced by our market share gains." He added: “the macro economic climate leads us to expect the retail environment to remain challenging and we are therefore focusing on driving sales, gaining market share and controlling our stocks and cost base."

Debenhams’ interim results will be announced on 15 April 2008.

Visit: Debenhams [18 March 2008]

Perry Ellis International: In great financial shape
Perry Ellis International, Inc. (NASDAQ:PERY) shareholders must have been in a celebratory mood, after the company reported results for the fourth quarter of fiscal 2008 and fiscal year ending on the 31st of January 2008.

Fiscal 2008 total revenues grew to a record level of $863.9 million, a 4.1 per cent increase compared to $829.8 million reported in the year ending on the 31st of January 2007. Gross margin rose 52 basis points to 33.8 per cent from 33.2 per cent in fiscal 2007, driven by the Company’s focus on higher margin branded products.

Other financial achievements included:
— Record Earnings per Fully Diluted Share at $1.80 — a 24 per cent increase to reported and a 14 per cent increase to proforma
— Fiscal 2008 EBITDA Margin Improvement to 8.8 per cent of Revenues
— Fiscal 2009 revenue guidance range of $910 million to $925 million — a 5 per cent to 7 per cent increase
— Fiscal 2009 earnings guidance range of $1.95 to $2.00 — an 8 per cent to 11 per cent increase

“We had an outstanding year at Perry Ellis International. We attribute our success to initiatives aimed at expanding our growth platforms while reducing private label offerings,” said Oscar Feldenkreis, President and COO. “Our key growth platforms — Perry Ellis Collection, Swim, Golf, Hispanic, Licensing and Retail, are well positioned for future growth following a record performance in fiscal 2008.”

As of the 31st of January 2008, Perry Ellis International was in a very strong financial position which allowed the Company to completely pay-off its revolving credit facility. This has enabled the Company to reduce its debt to total capital ratio to 39 per cent from 49 per cent in Fiscal 2007. Working capital was also significantly improved. The Company finished the year with Inventories at $136.4 million, a reduction of $3.3 million or 2.3 per cent compared to last year.

“We are proud of our fiscal 2008 results. We believe that our organic initiatives and strong financial discipline allow us to start fiscal 2009 in great financial shape and positioned to maximize market share during this difficult macroeconomic environment. Our positive outlook is a testament to the strength of our brands, growth platforms and diversified business model,” George Feldenkreis, Chairman and CEO, commented.

Visit: Perry Ellis International [17 March 2008]

Tommy Hilfiger to open Global Flagship Store in New York City
Tommy Hilfiger Group has announced that it is to open a global flagship store at 681 Fifth Avenue, between 53rd and 54th streets, in New York City. The 22,000 square foot store, spread over four floors, will become the premiere flagship store in the company's global retail portfolio, which over the years has grown to consist of 545 stores worldwide.

The store, set to open in November 2008, will join the newly opened Hilfiger Denim concept store and the women's boutique on Bleecker Street in Manhattan, the Georgetown store in Washington, D.C. and the soon to be opened Miami Beach, Florida.

The new flagship location will be the first Tommy Hilfiger store worldwide to incorporate every product category of the Tommy Hilfiger lifestyle, including: the runway collection, menswear, womenswear, childrenswear, tailored, footwear, accessories, home, as well as the complete Hilfiger Denim collection.

Fred Gehring, CEO of Tommy Hilfiger Group states, "Tommy Hilfiger has grown to become a globally recognized, premium lifestyle brand representing the quintessential values of 'Classic American Cool.' We have established an important retail presence throughout the world in cities such as London, Paris, Milan, Moscow, Shanghai, and Sao Paolo. Yet we were missing a real global anchor in New York City, the home of our brand, for quite some time. We are incredibly excited that following a long search, we have secured the perfect location for this very important initiative."

"The New York store will be a true flagship for the brand with global exposure and impact," states Tommy Hilfiger. "It is also a very important strategic move in our efforts to further redefine and elevate the brand's positioning in the US market, a process which is well underway since our privatization in 2006. We intend to escalate the rate of new store openings over the years to come. We believe that the balance between these select new retail locations and the nationwide presence at wholesale via our strategic alliance with Macy's will firmly anchor the brand in America for many years of growth."

Visit: Tommy Hilfiger Group [12 March 2008]

Global Ethical Revolution — Per head spend on fair-trade products highest among Brits
From its humble beginnings in the 1950s, fair-trade has developed into a global movement. A new report by independent market analyst Datamonitor, The Next Step in the ethical consumer revolution, reveals fair-trade sales across Europe, the US, Australia & New Zealand and Japan have experienced double digit growth since 2002.
 
“Ethical consumerism will increasingly come to the fore as people shop for products they feel akin to politically, ethically and aesthetically, says Nick Beevors, Consumer Market Analyst at Datamonitor and the report’s author. “Consumers will choose brands that are actively making a difference in a transparent and trustworthy manner. This is reflected by the double-digit growth of 15.7 per cent (between 2007-2012),which Datamonitor forecasts for fair-trade purchases over the next 5 years, in the 11 countries covered in the report.”
 
Brits’ spend per head on fair-trade products outstrips that of the rest of Europe, the US, Australia & New Zealand and Japan
Worth £455.3m, the US has the largest fair-trade market of the regions covered.
 
In Europe, the UK remains the largest market for fair-trade products with a value of £395m (£6.50 per capita) in 2007, followed by France and Germany with a value of £152m (£2.50 per capita) and £99m (£1.20 per capita) respectively. By 2012, Datamonitor expects the UK market for fair-trade goods is to exceed £800 million.
 
Meanwhile with per capita expenditure at 50 pence and under, consumers in Italy, Spain, New Zealand and Japan spend the least on fair-trade goods.
 
Across all countries, Beverages account for the largest share of fair-trade product sales. In the UK for example, fair-trade coffee and tea have become hugely popular and are widely available in many supermarkets and coffee shops.

Growing environmental concerns fuel growth
Environmental concerns represent the most important issue in ethical consumption today, helping to drive the growth of ethical markets such as fair-trade. Consumers are becoming more concerned with how their actions are affecting the world around them, even eclipsing general concerns about society, economic and animal cruelty issues.
 
Catastrophic natural disasters in the western world, such as hurricane Katrina in the US, drought in Australia and floods in the UK, are increasingly attributed to climatic change and as the threat becomes more ‘real’ to western consumers, the trend will become increasingly important. “Consumers are most concerned about climate change not just in an altruistic way regarding the fate of nature, but as genuine concern for human life and importantly, their own quality of life,” says Beevors.
 
As ethical and environmental consciousness grows so too will certain types of buying behaviour. This is reflected by the growth of key product segments, notably fair-trade and organic consumption. As more businesses adopt more ethically sound policies, transparency and trust will become an increasingly important currency as manufacturers attempt to cool a potential consumer backlash to ‘greenwashing’ in the search for clear, honest and effective environmental benefits.
 
Beevors concludes: “Fair-trade products meet both social and environmental standards set by the group, creating a fair deal for producers and minimal environmental impact. Another important driver of fair-trade purchases is the perceived authenticity, detail and overall sense of provenance associated with such products. Consumers increasingly want to become engaged with issues such as origin and production details. Fair-trade labeling is something that gives them a degree of confidence over these issues.”

Visit: Datamonitor [12 March 2008]

SLOW FEBRUARY SALES SIGNAL TIGHT OUTLOOK

— UK retail sales rose 1.5 per cent on a like-for-like basis, compared with February 2007, when sales were up 3.3 per cent compared with a weak February 2006.
— The three-month trend rate of growth edged up to 1.6 per cent from 1.5 per cent in January for like-for-like sales, and to 4.0 per cent from 3.7 per cent for total sales, reflecting the continuing growth of retail space.
— Food sales remained strong. Despite some continued discounting, clothing and footwear were down on a year ago. Homewares and furniture weakened further, generally down on a year ago, but health and beauty benefited from the early Mothering Sunday.
— Consumer confidence has fallen further to all-time lows. Shoppers are still very price-conscious and reluctant to splash out on major purchases, so discounting was still needed to tempt customers to buy.

Stephen Robertson, Director General, British Retail Consortium, said: “After a blip at the start of the year as clearance sales temporarily got customers spending, belt tightening began in earnest in February when the Christmas and New Year credit card bills came home to roost. Although a welcome boost was provided by this year’s early Mothering Sunday, which helped food sales as well as health and beauty, customers remained cautious. “Both retailers and consumers are being squeezed by sharp increases in utility bills and fuel costs. So the Chancellor’s theme on Wednesday should be a Budget to revive the economy, rather than one piling on new taxes and regulations.”

Helen Dickinson, Head of Retail, KPMG, said: "The divergence between the best and worst performing retail sectors continues to grow. Food and drink continued their strong start to 2008, with an even better performance than in January. This sector remains the primary driving force behind the figures, given that it’s such a large part of total retail spending at around 40 per cent of the total market. Meanwhile at the other end of the retail spectrum, the furniture and floorcoverings sector, which was successful in the New Year sales period in using promotional activity to drive momentum, has seen a contraction in market size in February. “February's figures are slightly inflated by the timing of Mothering Sunday this year, as spending in the lead up to it is included this month, whereas this occurred in March in 2007. Therefore caution about the outlook remains the order of the day."

Visit: British Retail Consortium | KMPG [11 March 2008]

Quiksilver set to tap into growth opportunities
Quiksilver, Inc. (NYSE:ZQK) operating results for the first quarter ending on the 31st of January 2008, showed consolidated revenue from continuing operations increased 14 per cent to $605.3 million from $528.7 million in the first quarter of fiscal 2007. Consolidated income from continuing operations was at a loss of $14.7 million, or $0.12 per share, compared to income of $6.8 million, or $0.05 per share, for the first quarter of fiscal 2007.

Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, "Although we are not satisfied with our financial results in general, we are pleased that our core apparel and footwear operations enabled us to partially offset the more difficult than expected results from our wintersports equipment business. As we go forward, we are energized to regain focus on our core opportunities. We are executing a variety of strategies to improve our gross margin, reduce our expense levels and generate cash flow to repay our indebtedness. We are resolved to continue to pursue strategic transactions to reduce or eliminate our exposure to our wintersports equipment business."

McKnight concluded, "I am excited to return to the role of President of Quiksilver. This is a unique company with compelling growth opportunities in each of its major brands, within existing markets, in new markets and across a wide range of categories. We have been through difficult situations at a variety of points in our 30-year history and have always emerged stronger and been able to unlock significant value to our shareholders in the process. We believe that a focus on profitability and on our key strengths as one of the few, true branded lifestyle apparel companies will enable us to do so once again."

Visit: Quiksilver [7 March 2008]

Visit: Estée Lauder | HSN [6 March 2008]

Comparable store sales by division for February 2008 were as follows:
— Gap North America: negative 3 per cent versus negative 5 per cent last year
— Banana Republic North America: negative 5 per cent versus flat last year
— Old Navy North America: negative 8 per cent versus negative 6 per cent last year
— International: negative 7 per cent versus positive 2 per cent last year

"While overall results were mixed across our brands, total company merchandise margins were above last year," said Sabrina Simmons, Executive Vice President and Chief Financial Officer at Gap Inc. "We will continue to manage inventory tightly as we bring summer product into our stores."

The company will report March sales on the 10th of April 2008.

Visit: Gap Inc. [6 March 2008]

Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, "Our consolidated comparable store sales increase of 3 per cent in February was in line with our expectations, despite unfavourable weather patterns in parts of the U.S. We continue to deliver great values for our customers in a challenging retail environment. We have strong liquidity in our inventories, putting us in an excellent position to capitalize on marketplace opportunities. Our stores look extremely fresh as we begin the spring selling season."

Visit: TJX Companies [6 March 2008]

By division, net sales for Ann Taylor totalled $50.0 million in February 2008, compared with net sales of $54.6 million in February 2007. For Ann Taylor LOFT, net sales totalled $66.9 million in February 2008, compared with net sales of $60.8 million in February 2007.

Comparable store sales for February 2008 decreased 1.7 per cent. By division, comparable store sales for Ann Taylor decreased 8.7 per cent, while at Ann Taylor LOFT, comparable store sales increased 2.8 per cent.

Commenting on the announcement, Ann Taylor President & Chief Executive Officer Kay Krill stated, "As we expected, our results in the month of February reflected continued soft traffic trends in our business, albeit improved versus last month. At Ann Taylor, we were highly promotional during the month to keep our inventory turning and to move through the less-compelling January and February store sets. At LOFT, well-received product assortments and very strong in-store metrics more than offset the impact of the weak traffic environment. Importantly, we ended the month with inventories at both divisions in good shape."

Ann Taylor is one of the America's leading women's specialty retailers, operating 921 stores in 46 states, the District of Columbia and Puerto Rico, and also Online Stores at www.anntaylor.com and www.anntaylorLOFT.com as of the 3rd of November 2007.

Visit: Ann Taylor [6 March 2008]

At a glance, the financial developments in February 2008 include:
— Total Company net sales increased 11 per cent
— Total Company direct-to-consumer net sales increased 39 per cent
— Total Company comparable store sales decreased 2 per cent
— Abercrombie & Fitch comparable store sales increased 2 per cent
— abercrombie comparable store sales decreased 7 per cent
— Hollister Co. comparable store sales decreased 4 per cent
— RUEHL comparable store sales decreased 15 per cent

Abercrombie & Fitch operates through 353 Abercrombie & Fitch stores, 200 abercrombie stores, 452 Hollister Co. stores, 22 RUEHL stores and five Gilly Hicks stores in the United States at the end of fiscal February. The Company also operated three Abercrombie & Fitch stores and three Hollister Co. stores in Canada and one Abercrombie & Fitch flagship in London, England.

The Company operates e-commerce websites at: www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com and www.RUEHL.com.

Visit: Abercrombie [6 March 2008]

For February, the strongest categories at Saks Fifth Avenue were men's shoes, accessories, and contemporary apparel; fine jewellery; and fragrances. The weakest categories at Saks Fifth Avenue for February were women's classic bridge apparel, women's petites and large sizes, women's designer eveningwear, and soft accessories. Saks Direct and Off 5th performed well for the month.

Saks Incorporated currently operates Saks Fifth Avenue, which consists of 54 Saks Fifth Avenue stores, 48 Saks Off 5th stores, and saks.com.

The Company also operates Club Libby Lu specialty stores.

Visit: Saks [6 March 2008]

H&M ACQUIRES THE COMPANY BEHIND CHEAP MONDAY, WEEKDAY AND MONKI
H&M has signed an agreement to acquire 60 per cent of the privately owned Swedish fashion company Fabric Scandinavien AB for SEK 564 million in cash. The company, founded by Adam Friberg, Lars Karlsson, Örjan Andersson and Linda Fribergthat; runs the store chains Weekday and Monki. The Group also designs and sells fashion through a number of own brands, such as Cheap Monday.

H&M's CEO Rolf Eriksen, said of the acquisition: "We have been impressed by Fabric Scandinavien's development for a long time and we see a potential to develop stores and concepts in other markets. By working together we can accelerate the growth further. We can also do it in a more efficient manner by drawing on H&M's experience and knowledge of for example production, logistics and establishment."

"H&M is a fantastic company and we have found that we share the same values. Together with H&M we will have better opportunities to truly develop our ideas within fashion and design. H&M's knowledge of for instance production and international expansion will be extremely valuable to us," says Fabric Scandinavien's CEO Lars Karlsson.

The founders of Fabric Scandinavien will all continue to work within the company as too will the 300 employees who's employment will not change as a result of the transaction. In connection with the transaction, the parties entered into agreement according to which H&M has the possibility/obligation to acquire the remaining shares in the company within three to five years.

The total turnover of the Group's business was approximately SEK 250 million during the financial year 2006/07, with an operating result of SEK 67 million. The expected turnover for the financial year 2007/08 is approximately SEK 400 million with continued good profitability.

The subsidiary Weekday Brands designs, produces and runs wholesale selling of young fashion. Its largest own brand is Cheap Monday, primarily a denim line. The idea behind Cheap Monday is fashion at good prices, something that goes well with H&M's business idea; fashion and quality at the best price. Cheap Monday is sold in more than 1,000 stores globally. Among the brands are also MTWTFSS Weekday and Sunday Sun.

The store chain Weekday is an urban unisex concept with a total of six stores in Stockholm, Uppsala, Gothenburg and Malmö. In March the first store will open outside Sweden in Copenhagen, Denmark.

Monki is a store concept and an own brand for young females. Since the start in Gothenburg in 2006 Monki has expanded to Stockholm, Uppsala, Malmö, Karlstad, Sundsvall and Norrköping, amounting to a total of twelve stores.

The company will be run as a stand alone subsidiary within the H&M Group.

Visit: H&M [6 March 2008]

John Lewis Partners rewarded
It would seem the old adage: 'A company is only as good as its staff' rings true in the case of John Lewis Partnership. Figures in for the year to the 26th of January 2008, showed group sales were up 6.3 per cent to £6.8bn. This increase has been attributed to the professionalism of the 69,000 partners who own the company, and who will benefit from a bonus that has increased by 18.7 per cent which, is equivalent to 10 weeks' pay or 20 per cent of their salary. The £379.8m windfall (that motivates employees into producing these type of sales results), has made the company the envy of the high street.

Charlie Mayfield, Chairman of John Lewis Partnership, commented: "The Partnership has had a successful year in a challenging trading environment. The key to our success is the commitment of our Partners who consistently deliver the customer service and professionalism that underpins our reputation for value, choice, quality and honesty."

He added: "While we expect trading conditions to continue to be challenging in the year ahead, we are confident that the diversity of our business and our Partnership model makes us resilient and able to perform well even in the most testing market conditions. We are committed to the growth plans for our business and I am confident that we can deliver our long term plans."

At a glance, below are the results for the year ending on the 26th of January 2008:
GROUP
— Group sales up £400.5m, 6.3 per cent, to £6.8bn
— Operating profit (excluding property profits) up £58.6m, 17.1 per cent, to £402.0m; including property, operating profits up £55.8m, 15.7 per cent, to £411.1m
— Profit before Partnership Bonus and tax up £59.7m, 18.7 per cent, to £379.8m
— Partnership Bonus payment of £181.1m; up £27m (increase of 18 per cent); 20 per cent of salary (equal to more than 10 weeks' pay)
— Return on Invested Capital of 8.5 per cent
— Group sales for 5 weeks to 1 March up 6 per cent

JOHN LEWIS
— Sales up £148.9m, 5.6 per cent, to £2.8bn
— Operating profit (excluding property profits) up £20.3m, 12.0 per cent, to £189.9m; including property, operating profits up £12.0m, 6.7 per cent, to £190.4m
— Like-for-like sales up 5.0 per cent
— John Lewis Direct sales up £82.8m, 44.6 per cent to £268.1m
— Market share up 0.5 per cent to 19.3 per cent
— Operating margin up 38 basis points to 6.8 per cent (excluding property profits)

Visit: John Lewis Partnership | John Lewis | Waitrose | Greenbee [6 March 2008]

adidas Group Sports 14% sales Growth
adidas Group (FWB:ADS) fourth quarter group revenues grew 14 per cent on a currency-neutral basis. This development was driven by strong sales increases at both adidas and TaylorMade-adidas Golf. Reebok sales, however, declined. On a regional basis, sales grew by double-digit rates in all regions except North America, where sales increased at a low-single-digit rate. Currency movements negatively impacted revenues in euro terms. Group sales in euro terms increased 8 per cent to € 2.419 billion in the fourth quarter of 2007 (2006: € 2.248 billion).

At a glance, the financial developments in February 2008 include:
— Q4 currency-neutral sales up 14 per cent with increases in all regions
— Q4 net income grows 63 per cent
— Currency-neutral adidas backlogs at highest level in almost 10 years
— Currency-neutral sales grow 7 per cent in 2007
— Full year net income attributable to shareholders up 14 per cent
— Net borrowings reduced by nearly €500 million to € 1.766 billion
— Currency-neutral adidas backlogs grow 17 per cent
— Reebok backlogs decrease 8 per cent on a currency-neutral basis
— Group gross profit increased 15 per cent to € 1.127 billion (2006: € 976 million)

“Our Group made big strides in 2007,” commented adidas AG Chairman and CEO Herbert Hainer. “Our focus on performance and executional excellence was a big contributor to our success. I am extremely proud that all our hard work has helped the Group achieve new record sales and net income levels — and all this despite conditions that got tougher in some important markets as the year went on.”

Visit: adidas Group [5 March 2008]

ANNUAL SHOP PRICE INFLATION UNCHANGED
 The latest figures released by the London Retail Consortium shows the rate of change in shop inflation remains the same.

YEAR-ON-YEAR
For the second consecutive month shop prices in London were 2.5 per cent up compared to a year ago thus remaining at the lowest rate of inflation since June 2007. London continues to show shop price inflation that is significantly higher than the UK as a whole where annual inflation rose to 1.3 per cent in February from January’s rate of 1.2 per cent.

MONTH-ON-MONTH
In February shop prices were up 0.4 per cent compared with the previous month. Prices picked up again in February as discounts became less widespread. February’s 0.4 per cent increase on a month-on-month basis offset January’s 0.4 per cent fall in prices compared with a month ago. This follows the same trend as both the UK and Scotland, where prices rose in February after falling in January.

The BRC's new Director General, Stephen Robertson, said: “Discounting continued to be used by London retailers to encourage customers to spend. In February annual price inflation remained the same as the previous month, the lowest rate since June last year. Shoppers remained cautious about purchases as concerns about the economy continued.”

Mike Watkins, Senior Manager, Retailer Services, Nielsen comments: “More stable prices in non-food in recent weeks are no longer providing a counterbalance for the consumer as food prices continue to increase. So with overall spend still slowing, retailers in London may need to consider increased promotional activity post Easter to drive sales.”

Visit: British Retail Consortium [5 March 2008]

Tommy Hilfiger to Bring Men's and Women's Footwear License In-House
Tommy Hilfiger Group is to bring in-house its men's and women's footwear, as it feels the move would be more beneficial to the company.

The mutual agreement with Stride Rite — a unit of Collective Brands, Inc. (NYSE:PSS) licensee of Tommy Hilfiger footwear for more than 10 years — will see Tommy Hilfiger bring its footwear line, in-house from the 1st of January 2009. Stride Rite will continue to remain a licensee for the Tommy Hilfiger Kids footwear line, through to the 31st of December 2009.

"We have always had a very successful relationship with Stride Rite and appreciate its valuable contributions to the brand over the past decade. However, since the Tommy Hilfiger Group acquired Tommy Hilfiger Footwear GmbH in 2007, the company that operates the footwear business internationally under a separate license agreement, we have experienced the benefits of having this type of dedicated expertise in-house," said Fred Gehring, CEO of Tommy Hilfiger Group. "Therefore, we firmly believe that bringing the U.S. footwear business in-house as well will allow us to benefit from global economies of scale and further brand alignment."

As part of the transition plan, Stride Rite will deliver the full Tommy Hilfiger Footwear collection for 2008. Several Stride Rite associates that have been directly involved with the Tommy Hilfiger business will join Tommy Hilfiger U.S.A., Inc.'s newly created Tommy Hilfiger Footwear division, and report to Anne Marino, President of Tommy Hilfiger Licensing.

The Tommy Hilfiger Footwear collections will continue to be distributed through high-quality distribution networks, as well as in Tommy Hilfiger's own specialty stores in the United States.

Collective Brands expects no material financial impact in fiscal year 2008 as a result of this move.

Visit: Collective Brands [5 March 2008]

Kenneth Cole: can't get no satisfaction
Despite Kenneth Cole Productions, Inc. [KCP] fourth quarter results being in line with prior guidance, management are disappointed with them. Bolstered by a board approved [additional] four million share buyback program and, a reduction in dividends to $0.09 per quarter versus prior level of $0.18, figures reflected the difficult trading environment.

Net revenues decreased by 2.1 per cent to $132.1 million, for the fourth quarter ending on the 31st of December 2008.

The company's latest reported financial results also showed wholesale revenues were down by some 3.1 per cent to $61.9 million, compared with the prior year's level of $63.9 million. Consumer direct revenues for the fourth quarter decreased to $57.6 million versus $58.4 million, with a comparable store sales decline of 0.6 per cent versus the year-ago quarter. Licensing revenue for the fourth quarter was $12.6 million, flat to last year.

As for the company's gross margin, it was up slightly, rising to 45.6 per cent, versus the year-ago level of 45.5 per cent.

Chairman and Chief Executive Officer Kenneth Cole said, "Although there are bright spots in our business, we are not satisfied by our results. We believe that the business and financial decisions we are making will serve both the needs of the business and its shareholders. We will continue to operate the business prudently. At the same time, we are confident that our brands remain strong and that our opportunities for growth are significant."

Visit: Kenneth Cole [4 March 2008]

Cherokee Licenses Its Brand in Spain
Cherokee Inc. (NASDAQ: CHKE) has signed an exclusive international license agreement for its Cherokee brand with Grupo Eroski, one of Spain's largest retailers.

The multi-year agreement covers a wide range of categories including men's, women's and children's clothing, footwear, accessories and other categories. Eroski operates more than 1,100 supermarkets and hypermarkets throughout Spain and the Balearic and Canary Islands. Its supermarkets operate under the monikers EROSKI/center and EROSKI/city, and its hypermarkets use the banner EROSKI.

The driving force behind EROSKI's activity is their response to the requirements and purchasing habits of customers, to provide them with a great variety of establishments. Although EROSKI started operating local shops and hypermarkets, over time they have also developed other establishments to complement those of food distribution: travel agencies, leisure and sports shops, perfumeries, service stations, opticians, Solutions spaces (sales of real estate, insurance and financial products and money remittance agencies), Internet travel sales, and leisure and culture shops.

Ana Cueves, Textile Commercial Director for Grupo Eroski, said, "The Cherokee brand is having tremendous success around the world. We are very excited to license Cherokee and believe that it will become one of the premier family brands in Spain. We will be working closely with the Cherokee team and look forward to much success." [4 March 2008]

John Lewis Partnership to use secure mobile technology
Looks like John Lewis Partnership is evaluating every aspect of its business, to ensure that it isn't knocked off its pedestal as one of the UK's most formidable retailers.

The company has now turned its attention to the security of its corporate systems, through the signing of a deal with SecurEnvoy, which will enable its 15,000 workforce to use their mobile phones, to gain secure access to corporate systems.  

SecurAccess — SecurEnvoy’s cost-effective, two-factor authentication solution — transforms mobile phones into virtual tokens.
 
The new system, supersedes the old tokens or smart cards, and will make considerable savings when it comes to authentication passwords and software downloads.   The user licence is also cheaper than purchasing, replacing and distributing tokens, and deployment costs are lower with no need for extensive training courses. 
 
“The John Lewis Partnership has been using traditional token based two factor authentication with its remote access systems since the late 1990’s. However, after reviewing the capital, revenue and administration costs associated with the existing system, we decided to look for a cheaper alternative and found SecurEnvoy’s tokenless approach to be a far superior and cost effective solution,” says Matthew Clements, Principal Programmer for the John Lewis Partnership.
 
“The flexibility, efficiency and additional security of using mobile phones and SMS offer clear advantages over traditional methods of two factor authentication,” says Steve Watts, UK Sales Director for SecurEnvoy.  “Customers such as John Lewis continue to choose SecurEnvoy for our speed of deployment, cost per seat model, unlimited scalability and proven track record.”

Visit: John Lewis [3 March 2008]

USEFUL SITES
> Association of Gloves
> British Retail Consortium
> Business in the Community's Awards for Excellence
> Clerkenwell Dressed
> Director E
> E Mediac
> Fashion Group International
> IGD
> Inca Productions
> London Apparel
> London Fashion Week
> London Fashion Forum
> Mad.co.uk
> Natural Yes/Lenzing
> Retail Week Seminars
> Serebella
> Tencel
> Textronic Yarn
> Texyard
> The British Travel Goods & Accessories Association
> The Retail Week Conference
> The Retail Zone
> TNT Retail
> Wool Mark