Source:  Fashion Newspaper

Date: June 8, 2010

American Eagle Outfitters, Inc. (NYSE: AEO) today announced that total sales for the four weeks ended May 29, 2010 decreased 1% to $193 million, compared to $196 million for the four weeks ended May 30, 2009. Consolidated comparable store sales decreased 3% for the month, compared to a 7% decrease for the same period last year.
Total sales for the year-to-date 17 week period ended May 29, 2010 increased 6% to $853 million, compared to $808 million for the 17 week period ended May 30, 2009. Comparable store sales increased 3% for the year-to-date period compared to a 9% decrease for the same year-to-date period last year.

The company is reiterating its second quarter adjusted earnings guidance of $0.12 to $0.16 per diluted share. On a GAAP basis, second quarter guidance is ($0.01) to $0.03 per diluted share and includes estimated closing charges and an operating loss related to MARTIN+OSA of approximately $0.13 per diluted share as outlined in the table which follows. This guidance also excludes potential investment security charges. Second quarter guidance compares to adjusted earnings of $0.18 per diluted share for the second quarter ended August 1, 2009, which excludes a tax benefit, a non-cash, non-operating foreign currency loss and an operating loss related to MARTIN+OSA as outlined in the table which follows.

From:  Yahoo News: Fashion Wire Daily
Date:   Tuesday June 8, 2010

New York – It may have been the American fashion industry’s big night, but international fashion greats also got their due at the Council of Fashion Designers of America (CFDA) Awards last night at Lincoln Center in New York on Monday, June 7.

The late Alexander McQueen was honored with a special tribute, presented by Sarah Jessica Parker, and his Fall 2010 collection was shown for the first time outside the small Paris presentation in March, where it was originally shown shortly after his death on February 11, 2010.

British designer Christopher Bailey of Burberry also received this year’s “International Award,” presented to him by Donna Karan.

A typically star-studded affair – like the Academy Awards and fashion week wrapped into one event – actors including Jessica Biel, Gwyneth Paltrow, Rachel Weisz and CFDA designers themselves, Ashley and Mary-Kate Olsen, mingled with fashion’s finest, such as CFDA president and designer Diane von Furstenberg, Kenneth Cole, Zac Posen, Betsey Johnson, Rachel Roy, Brian Atwood and Peter Som.

Top honors of the Swarovski-sponsored night went to Marc Jacobs for “Womenswear Designer of the Year,” David Neville and Marcus Wainwright of Rag & Bone for “Menswear Designer of the Year” and the “Accessory Design of the Year” award went to Alexis Bittar.

Swarovski also underwrote the awards for the top emerging designers, who this year included Jason Wu for womenswear, Richard Chai for menswear and Alexander Wang in accessory design. The winners in this category will receive financial support from Swarovski, as well as access to the company’s crystals for use in their own designs.

The Geoffrey Beene Lifetime Achievement Award was given to Michael Kors, presented by Anna Wintour who recalled a humorous anecdote about how Kors once stayed in the ocean in Jamaica for four hours because Ralph Lauren was also on the beach – and Kors didn’t want Lauren to see that he was, in fact, wearing Ralph Lauren swim trunks.

Paper magazine’s founding editor and publisher Kim Hastreiter, a longtime champion of new and undiscovered fashion talents, was given the Eugenia Sheppard Award for excellence in journalism, which actress Brooke Shields introduced, while Caroline Kennedy presented Vogue fashion director Tonne Goodman with the Eleanor Lambert Award. Isabella Rossellini introduced Iman, who received the “Fashion Icon” award.

For the second year in a row, the “Popular Vote” award went to Ralph Lauren. Through a joint Web site sponsored by L’Oreal Paris and WWD.com, anyone could vote for their favorite fashion designer.

Source: Fashion News
Posted: June 8, 2010

Now there’s a new way for consumers to save money and compare prices while shopping online. Superfish, Inc. announces the beta release of Window Shopper, a free browser add-on that once downloaded, places a mark next to product images on hundreds of online stores. Click on the mark and Window Shopper opens up, instantly showing deals for that product as well as similar-looking alternatives.
The secret to Window Shopper is its proprietary visual search technology. The application first recognizes the image on the site and then instantly finds and presents visually identical or similar images from its huge index of product offers. Their index includes over 30 million products in almost every product category. Superfish expects to expand their index to over 50 million products in a few months.

Window Shopper currently functions on hundreds of U.S. online stores including Amazon.com, Best Buy, Macys, Nordstorm, Overstock.com, Staples, Target, and Wal-mart. More stores will be added weekly.

“With the Window Shopper Add-on, there’s no more jumping around from site to site to compare prices or to find what you want,” says Joe Dew, head of product for Superfish. “If we find a deal, we’ll show it. If we can’t, we’ll show you similar products you may also be interested in.

Although it’s been still in beta, thousands of people have already downloaded Window Shopper in its first few weeks since release.

About Superfish, Inc.

Superfish is a young, privately held startup with headquarters in Silicon Valley. The team is made up of technology enthusiasts and mathematicians who have been working for several years on visual search technology. Our vision is that visual search will one day allow people to use any picture at any time from any place as a search query.

Source:  New York Times: Fashion

Posted: 6-8-10

Forever 21 has been sued more than 50 times over the past three years for allegedly knocking off other people’s clothing designs. Not too long ago, Trovata’s high-profile case against the company was brought before a jury, in what was hoped to result in a landmark ruling in knockoff regulations. But the knockoff fight is a hard one for a victim to legally win, and the weary Trovata ended up settling. The genius mind behind Forever 21′s practically iron-clad designer-imitation design business is CEO Don Chang, and The Wall Street Journal shares his story today. After moving to L.A. from Korea in the early eighties, he pumped gas, among his many first jobs as a new immigrant. The gas led him to his calling: After he noticed that clothing-store owners had the nicest cars, he knew where he belonged. After all, L.A. is a place where nice cars really matter.

So Chang opened Fashion 21 in L.A. in 1984. He enjoyed sales of $947 million in 2005, more than doubled those to $2.3 billion in 2009, and expects to do $3.2 billion in sales this year. Most of his 480 Forever 21 stores are in the U.S., but he hopes to open 100 eventually in Japan, where he just opened his fourth store. And don’t forget that a Forever 21 that is so massive it’s terrifying is about to open in Times Square. But Chang’s personal touches remain:

The Los Angeles fast-fashion retailer famously has “John 3:16” printed on the bottom of its yellow shopping bags, a reference to a New Testament scripture.

“That’s my purpose of life,” said Mr. Chang, a lifelong Christian.

We are curious as to when Chang decided to change the store name from Fashion 21 to Forever 21, which is pretty brilliant since it encapsulates that thing so many women want, which is to look 21 years old forever. And no matter how much its purported shoddy labor practices and knockoffs bother us, we all shop there anyway.

From:  Retail News

Date:  2/23/09

An often-cited marketing maxim holds that around 80 percent of consumer purchases are driven by women. The figure is often cited to emphasize how women are underestimated and under-served as customers. But the generally-accepted principle frequently leaves retailers and brands guessing at the extent of women’s buying influence within given categories.

The theory bases its high purchasing power on how much a women will buy for herself, how much she buys for others (i.e., husband, boyfriend, kids, nephews, male friends, etc.) and even how much a women will influenceother purchases. Their buying acumen is often backed by stats around the female gender’s growing economic power, their increasing influence in the household, as well as perhaps stereotypical views on their propensity to shop.

The finding is most often quoted from Tom Peters’ Re-Imagine! Business Excellence in a Disruptive Age. In the book published in 2003, the management guru claims that women make up 83 percent of all consumer purchases. The book notes that in category after category, women are “instigators-in-chief” of most consumer purchases.

Breaking out few categories, the book estimates that women determine a whopping 94 percent of home furnishings purchases, 92 percent of vacations, 91 percent of new homes, 80 percent of DIY (do-it-yourself) projects, 68 percent of car purchases, and 51 percent of consumer electronics buys. The book also found that women make up about 89 percent of the spending decisions around new bank accounts and 80 percent around healthcare decisions.

But it’s tough to figure out women’s influence across all categories.

For instance, take the often male-skewed sporting goods industry. In its annual Sporting Goods Market Report, the National Sporting Goods Association (NSGA) finds that women on their own behalf acquire about 55 percent of units sold in 14 categories of athletic footwear (excluding rugged outdoor, hunting boots, cleated footwear and water sport). Including purchases she drove for her husband, sons, and other male friends, purchasing power around athletic footwear could be argued to come close to the 80 percent mark. Falling well short might be the category of sports equipment, in which women make up about a third of sales and where purchasing decisions for children are often driven by the father.

But in his book, Mr. Peters laments on how, given their dominant purchasing power, women are rarely turned to when it comes to marketing and product design. And he predicted in Business Week last year that with women outpacing men in college degrees, they’ll increasingly be leading decision making in Corporate America.

Mr. Peters said, “It’s going to be so extreme in the next 20 years, it’s just eye popping.”

From:  Daily Herald

Date:  3/11/2009

NEW YORK — American Eagle Outfitters Inc. said Wednesday that unplanned markdowns during the weak holiday season and a charge related to the declining value of some investment securities sent its fourth-quarter profit tumbling 77 percent.

Its adjusted results matched Wall Street’s expectations, however, as did the company’s first-quarter outlook.

Teen-focused American Eagle has struggled with its women’s fashion and Chief Executive Jim O’Donnell said in the fourth quarter the company faced “particular softness” in that business.

That and the overall drop-off in consumer spending were factors in pushing the company’s profit down to $32.7 million, or 16 cents per share, in the three months that ended Jan. 31. That compares with $140.5 million, or 66 cents per share, in the same period a year earlier.

Excluding charges and one-time items, the company earned 19 cents per share, which met the estimates of analysts polled by Thomson Reuters. Analysts’ estimates typically exclude one-time items.

Sales fell 9 percent to $905.7 million from $995.4 million a year earlier, below the $911.8 million analysts expected. Sales in stores that have been open at least one year, a key retail metric known as same-store sales, slid 16 percent.

While teens can be notoriously fickle, clothing retailers who have hit the fashion trends they crave — at the right price — have fared better than other specialty retailers.

Rival The Buckle Inc., which also targets teens, said its fourth-quarter profit rose 18 percent as sales jumped 21 percent as shoppers snapped up its trendy jeans and accessories. But J. Crew Group Inc. said it swung to a fourth-quarter loss and AnnTaylor Stores Inc. reported last week that its fourth-quarter loss widened over the year before.

O’Donnell said in a statement that lower demand during the quarter led to a boost in unplanned promotions, which helped clear out some inventory.

“Looking ahead, we cannot accept this kind of performance, recession or not. We know that our customer responds when we have the right fashion at the right price,” he said.

The Pittsburgh-based company hired Roger Markfield in January to a new position of vice chairman and executive creative director to revamp its merchandise selection. O’Donnell said his presence will begin to be fully felt with the back-to-school collections.

American Eagle also means to offer more planned promotions — such as a February event when all jeans were under $30 — rather than unplanned markdowns during the year and has improved its women’s collection, including adjusting fits in women’s jeans and expanding its dress offerings from less than 10 choices to 40 styles in the spring.

It is cutting capital spending by half, to $110 million to $135 million, and trimming other costs.

In the first quarter, American Eagle expects a profit of 4 cents to 7 cents per share, while analysts expect 6 cents per share.

Full-year net income sagged 55 percent to $179.1 million, or 86 cents per share, from $400 million, or $1.82 per share, in the previous year. Revenue fell 2 percent to $2.99 billion, while same-store sales fell 10 percent.

American Eagle shares rose 14 cents to $9.71 in midday trading, while Buckle Inc.’s shares rose $1.35, or 5.7 percent, to $25.22.

From:  Canadian Business Magazine

Date:  2/10/2009

NEW YORK (AP) – Apparel maker J. Crew Group Inc. on Tuesday reported a fiscal fourth-quarter loss on lower demand, but results were better than analysts had predicted, sending shares up 10 percent in aftermarket trading.

Losses for the three months ended Jan. 31 totaled $13.5 million, or 22 cents per share, compared with a year-ago profit of $25 million, or 39 cents per share, last year. Excluding impairment charges, the latest-quarter loss totaled 20 cents per share.

Revenue fell 3 percent to $388 million from $399.9 million last year.

But the results topped expectations of analysts polled by Thomson Reuters, who on average predicted a wider loss of 27 cents per share on revenue of $372.8 million. Analyst estimates typically exclude one-time charges.

The company itself had forecast a wider loss between 24 cents and 29 cents per share.

Demand for J.Crew’s preppy clothing has dropped amid the recession and consumer spending pullback. Late last month the company said it would cut jobs, eliminate merit-based wage increases and suspend its 401(k) matching contribution plan through the rest of the year to shore up costs.

Millard Drexler, company chief executive, said in a statement J. Crew is adjusting to the “new, not fun, retail reality.”

For the year, profit fell 44 percent to $54.1 million, or 85 cents per share, from $97.1 million, or $1.52 per share, a year ago. But revenue rose 7 percent to $1.42 billion from $1.33 billion last year.

The company forecast first-quarter adjusted earnings between 7 and 12 cents per share, down sharply from last year’s 48-cent profit but still in range of analysts’ average forecast of 10 cents per share.

Shares rose 36 cents, or 3.9 percent, to close earlier at $9.72, and jumped 98 cents to $10.70 in after-hours electronic trading.

From:  KHQ-TV

Associated Press – March 11, 2009 8:45 PM ET

WILLIAMSPORT, Pa. (AP) – North-central Pennsylvania clothing manufacturer Woolrich Inc. is dropping its trademark infringement lawsuit against specialty retailer Eddie Bauer Inc.

A document filed recently in federal court in Williamsport says Woolrich is dismissing “all claims asserted in the complaint” filed in January. It doesn’t say why.

The earlier complaint said Woolrich had been using the slogan “The Original Outdoor Clothing Company” since 1997. It said that Bellevue, Wash.-based Eddie Bauer’s slogan, “The Original Outdoor Outfitter,” was too similar. Woolrich said in the earlier complaint that Eddie Bauer began using its slogan in October.

Woolrich was started in 1830 by English immigrant John Rich. It is based in the small town that bears its name, about 90 miles north of Harrisburg.

From: MRketplace.com

Fashion and lifestyle firm Tommy Hilfiger is merging its operations in the U.S. and Canada, the company confirmed on Friday, March 6, in a move that will create a new business unit called Tommy Hilfiger North America.

Some jobs will be lost in the merger, a spokesperson for Tommy Hilfiger confirmed this morning. “A few staff positions will be made redundant but it is close to nothing,” he said.

The changes come after a review of Tommy Hilfiger’s operations identified synergies between the two units which have both shifted their focus onto their retail businesses in recent years.

The new consolidated business will be headed by Gary Sheinbaum, group president of North American Retail.

Colleen Kelly, group president of North American Wholesale, will oversee U.S. and Canadian wholesale activities.

Sheinbaum and Kelly will continue to report directly to Fred Gehring, CEO of the Tommy Hilfiger Group.

Once the integration is complete in June 2009, Howard Starr, CEO of Tommy Hilfiger Canada, will resign.

The changes come after a period in which the company has been expanding its retail business in Canada where it operates more than 50 retail locations.

Under Tommy Hilfiger North America, the Montreal office will remain the Canadian corporate office with regional offices in Toronto and Vancouver.

“The unprecedented economic crisis around the world has led us, like all other companies, to review the business structure and identify areas of consolidation and efficiency,” said Fred Gehring in a statement mailed to just-style.

“The business profiles of Tommy Hilfiger USA and Tommy Hilfiger Canada have many parallels, including a recent shift to a primarily retail business, creating an opportunity to maximize alignment and synergy.

“The integration is in line with our strategy to consolidate brand management and enhance our international presence by approaching markets in a globally coordinated effort.”

Tommy Hilfiger has been making a major push to expand its retail presence in the U.S., and is seeing significant growth from its partnership with Macy’s — which has been the exclusive department store retailer of its men’s and women’s sportswear since last autumn.

In its most recent financial update, the firm, which is owned by private equity firm Apax Partners, said its U.S. sales rose 16.7% to $356m in the six months to 30 September. U.S. same-store sales were up 6.0%. However, sales in Canada were 1.9% below last year.

From:  Reuters

CHICAGO (Reuters) – Teen clothing retailer Abercrombie & Fitch (ANF.N) beat Wall Street profit expectations on Friday and said it is optimistic about international expansion, lifting its shares more than 13 percent.

Abercrombie also said it is reviewing its operating expenses, has already started to cut costs and plans significantly less in capital expenditures this year.

Management is “actively managing expenses, while at the same time protecting the brand for the long term,” Credit Suisse analyst Paul Lejuez said in a research note.

Once a high-flyer in teen apparel retail, Abercrombie has seen a protracted sales slump as rivals such as Aeropostale (ARO.N) take market share by cutting prices.

Net profit fell sharply to $68.4 million, or 78 cents per share, in the fourth quarter that ended January 31 from $216.8 million, or $2.40 per share, a year earlier.

Excluding impairment charges and costs tied to a new employment agreement that extends CEO Mike Jeffries’ contract until 2014, Abercrombie’s profit of $1.10 per share topped analysts’ average forecast of $1.01, according to Reuters Estimates.

Sales fell 19 percent to $998 million. Sales at stores open at least a year fell 25 percent.

Abercrombie’s strategy of keeping prices higher than competitors to increase its cachet has put off many U.S. shoppers looking for bargains, although the retailer has discounted clearance items.

On Friday, the company stood by its strategy.

“We are not promotional and will not be promotional, and by promotional I mean 50 percent off a category, buy one, get 17 free, or somebody whispering to you about a secret sale; we don’t do stuff like that,” Jeffries said during a morning conference call.

The company has cut some prices at its Hollister and abercrombie kids chains, but said the changes were not significant.

OVERSEAS MARKETS

Abercrombie is “very bullish” on the potential it sees in international markets, while it is “not bullish on U.S. malls at this point,” Jeffries said.

The retailer said it is committed to opening some stores, such as its namesake ones in Milan and Tokyo in 2009, but would postpone opening its namesake store in Copenhagen and an abercrombie flagship in New York to 2010.

Jeffries said he sees the opportunity for 30 Hollister stores in the United Kingdom. There are currently three Hollister stores in London. 

Abercrombie had warned last month that its fourth-quarter earnings would be significantly below the outlook of $1 to $1.05 per share that it had previously issued.

The company said it expected a difficult selling environment to continue in 2009 and did not issue an earnings outlook for the fiscal year, citing volatile sales levels.

Abercrombie expects capital expenditures of $165 million to $175 million in the fiscal year that began this month, a major portion of which is tied to new stores and remodeling.

The company spent about $370 million on capital expenditures last year.

Its shares were up 13.3 percent at $23.46 on the New York Stock Exchange.

(Additional reporting by Aarthi Sivaraman in New York and Alexandria Sage in San Francisco; Editing by Lisa Von Ahn, Dave Zimmerman)