(wwd)Men’s Spring 2011 Trend:
By the Sea

“Casual dressing infused with a seaside flair and a bohemian attitude is the unifying message for the spring collections being shown at New York market week. The must-haves are pleated shorter shorts, oversize summer knits and airy trenches. Vendors are favoring creams and beiges in linen and cotton blends for an overall fun and relaxed season.”

(the washington post)French burqa ban, Iranian mullets: Faith and the fashion police

“The Washington Post’s Edward Cody reported Tuesday that the French parliament’s lower house voted 335-1 to ban its female citizens from wearing the burqa or similar Islamic facial veils. The legislation imposes a $185 fine or compulsory ‘citizen lessons’ to any woman found violating the measure, which awaits final vote in the Senate. Do the citizen lessons include tips on how to wear the beret, instead? The legislation’s advocates say that the full facial coverings undermine French values and oppress women. But in previous protests over the legislation, veiled French women have chanted the mantra “Where is France? Where is tolerance? The veil is my choice.”

In another faith and fashion moment, last week the Iranian government announced a ban on ‘decadent’ Western haircuts in order to “confront the cultural assault by the West.” On the Iranian chopping block?: The very anti-authoritarian American mullet as well as the manlytail -otherwise known as the male ponytail. Who knew David Beckham, Andre Aggasi and Chuck Norris were so subversive? Gawker called the mullet ban “a move of government oppression we can sort of get behind” and bloggers had a field day. But France and Iran’s clash with ‘the other’ in their midsts is profoundly serious. France struggles to understand and assimilate its Muslim population (5 million strong), while Iran’s religious regime lurches for control over its progressive populace. Both states want to legislate what not to wear, despite the desires of their citizens. In the French example, the government seeks to keep the sacred out of the secular; in Iran, the religious government wants to keep the secular West out of its Islamic state. Should France and Iran tell their citizens how to dress? What does such legislation say about French and Iranian values? Are the policies oppressive or true to the ideals of the states? What do the fashion police say? read more

(wsj)H&M Same-Store Sales Rise 9%

Swedish fashion retailer Hennes & Mauritz AB Thursday reported a 9% rise in same-store sales in June after its sales a year earlier were weighed by slow consumer spending in the economic downturn. H&M, the world’s third-largest fashion chain after U.S.-based Gap Inc. and Spain’s Inditex S.A., slightly underperformed expectations for an 11% rise in stores open longer than one year. The company’s total sales, including sales in new stores, were up 20% in June, just below forecasts of a 21% rise. A strong sales increase had been expected after H&M in its second-quarter report last month said its total sales from June 1 to June 22 were up 22% compared with the same period a year earlier. Thursday’s sales report comes after H&M’s rival Gap last week said its same-store sales in June were largely flat compared with a year earlier. H&M said its total number of stores world-wide increased 13% to 2,062 in June from 1,827 a year earlier. The company, which is expanding rapidly in markets world-wide, last month said it expects to open 180 new stores in the second half of 2010 in countries including Germany, the U.S. and China. read more

(wwd)Men’s Retailers Adjust to Economic Challenge

Men’s retailers are looking over their shoulders — and hope that ill winds aren’t gaining on them. On the eve of New York market week, men’s merchants said business is stable, but far from spectacular. Sales have picked up from the depths of the recession last year, although customers — including luxury shoppers — are still holding back and looking for value, forcing retailers to adjust their buying strategies and tightly edit assortments.  The slow and difficult climb out of the economic downturn is shadowed — and sometimes overshadowed — by concerns about growth, deflation, falling consumer confidence, persistent high unemployment, government budget shortfalls, an uneven stock market and other factors. “Maybe we should have done this when business was good,” said Dan Farrington, general merchandise manager of the Mitchells Family of Stores. Men’s specialty stores will be in New York this week to attend trade shows — Agenda, Capsule, ENK New York and MRket — and shop showrooms. Lightweight sport coats, slim-fit suits and sport shirts to coordinate with denim are at the top of shopping lists.  “Things are certainly better,” said Ken Giddon, president of Rothmans, a New York City-based specialty store. “The fear factor is gone, but we’re not racing to the bank with all the money we’re making.” David Rubenstein, owner of Rubensteins in New Orleans, was apprehensive. “I’m kind of concerned, I really don’t know how to project business,” he said. Although his inventories are in good shape — even light in some areas — Rubenstein foresees fall getting off to a late start. Business for spring and summer has been good, however, and he expects to post a high-single-digit increase. Top sellers include seersucker, cotton-linen pants, unconstructed lightweight jackets and hybrid sport dress shirts. Sport coats are still solid and clothing sales are steady, he said.  read more

(wwd)Hilfiger Launching Collection and Retail Concept

Tommy Hilfiger is out to woo the twentysomething customer with a new men’s and women’s lifestyle collection that has its own retail footprint. Meet Tommy, the brand’s effort to lure customers from American Apparel, Gap, Abercrombie & Fitch and American Eagle Outfitters. The line will target an audience with a median age of 25 and veer away from the preppy looks that are the mainstay of Hilfiger’s collection sold exclusively at Macy’s. Tommy aims to focus on handmade details, distinctive materials and unexpected pairings for unique looks. For example, a washed, tailored jacket could be mixed with vintage-inspired long johns and hand-painted brogues, or a men’s wear shirt coupled with a slouchy boy-fit sweatshirt and destroyed denim and cropped motorcycle boots shown with a feminine clutch. “Tommy gives us more flexibility and freedom to do something truly conceptual,” said company founder and principal designer Tommy Hilfiger. Tommy is “absolutely a reaction” to the ubiquity of specialty store environments, said Gary Sheinbaum, chief executive officer of Tommy Hilfiger USA. “The way we’re going to merchandise Tommy will be distinctive and different, not so formulaic. It will be more of a fun, dynamic experience. The product itself, we feel, is going to be a fresh take on the preppy traffic, done in a fresh, young, cool way. When we look around, we don’t see anyone doing anything like this.” Knits will sell for $24 to $59, and denim, $79 to $129. Outerwear will start at $129 for men and $139 for women. read more

(wwd)Chinese Textile Industry Warns of Bankruptcies

“China’s textile industry could face serious repercussions if the value of the yuan appreciates 5 percent against the dollar, state media reported Tuesday. China National Textile & Apparel Council vice president Gao Yong told the China Daily that a 5 percent currency appreciation could cause half of the country’s textile companies to go bankrupt. He said the bankruptcies would be spurred by the industry’s thin profit margins of around 3 to 5 percent. The textile industry output in 2009 accounted for just more than 11 percent of China’s gross domestic product, a Ministry of Commerce report said. The Chinese government conducted a yuan stress test in March that indicated textile manufacturers’ profit margins would decline 1 percent if the currency appreciates by 1 percent, according to the newspaper. China’s central bank announced last month it would allow greater flexibility in the value of the yuan against the dollar, amid pressure from the U.S. and other trading partners. The People’s Bank of China did not say how far the currency might fluctuate. Analysts told state media that textile industry profit margins already have been affected by rising raw material and labor costs, together with an appreciating yuan, which rose 21 percent against the dollar from 2005 to 2008. Zhang Bin, an analyst with Sinolink Securities, said textile products have become more expensive, resulting in diminishing price advantages compared with Vietnam, Indonesia and other Southeast Asian countries. China’s textile manufacturers could further be squeezed by rising labor costs, Zhang said. Demands from factory workers for higher wages have become a central focus around the country after a spate of suicides at Foxconn Technology, a hardware producer in the southern city of Shenzhen.” read more

(bloomberg)Polo, Hugo Boss, Hermes-Linked Fashion Notes Sold By Vontobel

“Vontobel Holding AG, a Swiss private bank, is marketing structured notes that track the stocks of fashion companies including Hugo Boss AG, Polo Ralph Lauren Corp. and Hermes International SCA. The two-year note is aimed at private banks and asset managers, according to Georg Vonwattenwyl, Vontobel’s Zurich- based head of financial products distribution. The bank will issue as much as 20 million euros ($25 million) of the notes, which start trading July 16 on the SIX Swiss Exchange Ltd. and Germany’s Stuttgart and Frankfurt bourses. Luxury goods companies in Europe are expected to post sales growth of 7 percent on average this year, after slumping 6.6 percent in 2009, according to a Vontobel report. Fashion companies returned about 50 percent last year, according to the Swiss bank, almost double the 27 percent gain in the MSCI Europe Index of 461 stocks. “We have seen some interest in the fashion story this year,” Vonwattenwyl said. “The global development of wealth and the demand for luxury products, particularly in Asia, should benefit these stocks in the future.” Vontobel’s notes will return to investors any gain or loss on the basket of 11 stocks that also includes Bulgari SpA, Burberry Group Plc, Coach Inc., Cie Financiere Richemont SA, Louis Vitton Moet Hennessy SA, Swatch Group AG, Tiffany & Co. and Tod’s SpA. The Swiss bank issued similar notes in 2004 that earned 20.3 percent for buyers that held them for all of their 18-month term.” read more

(wwd)J. Crew Names Jenna Lyons President

Jenna Lyons was named Tuesday as president of J. Crew Group Inc. after the resignation of Tracy Gardner, president of retail and direct channels. Lyons will retain her responsibilities as executive creative director. Gardner is leaving the company effective Sept. 13. “This is nothing other than an important personal decision” for Gardner, said Millard “Mickey” Drexler, chairman and chief executive officer, adding that she wants to “spend more time with her children.” Drexler, who worked with Gardner for almost 20 years at J. Crew and their former employer, Gap Inc., described her as “a great merchant, business partner and human being. But we have a really strong team and there are people in place to step up and take on more responsibility.” Drexler said J. Crew will spread Gardner’s duties among executives. Libby Wadle, who had overseen the factory outlets, will become executive vice president of retail and factory. Charlie Phillips, senior vice president of men’s and women’s retail merchandising, now will serve as senior vice president of factory and men’s retail merchandising. Renee Brantjes will continue as vice president of women’s retail merchandising. Merchandise production responsibilities will be under James Scully, chief administrative officer and chief financial officer. Trish Donnelly will continue as executive vice president of the direct channel, and Laura Willensky will remain as senior vice president of the Madewell retail channel. The last person to hold the president’s position at J. Crew was Jeff Pfeifle, a close associate of Drexler, who left the company two years ago. “The team at J. Crew has considerable depth, and I am…confident in our ability to achieve a seamless transition,” Drexler said read more

(myfashionplate)Stella McCartney To Design Olympic Sportswear

“Stella McCartney is one of the UK’s most successful fashion designers and has previously collaborated with the likes of H&M on accessible ranges for those of us who can’t afford designer price tags in our virtual closet organizer. But now the daughter of the former Beatles legend has been appointed as the creative director of Adidas’ 2012 Olympic Team GB ranges. Of course, this is not the first time McCartney has worked with the sports brand, as she designed a performance collection back in 1995. ”As a British fashion designer it is an amazing, once-in-a-lifetime opportunity to be creative director of Team GB as the hosting nation of the London 2012 Olympic Games,” McCartney said. Plus, it is not just the athletes that will get to wear the fashionable sports gear, as there will also be a fan wear range to match. McCartney launched her own fashion house as a joint venture with Gucci Group in 2001. They may only be sports kits, but it’ll still be interesting to see what she comes up with! We’ll just have to remember to keep our eyes on our own athletes as well.” read more

(wsj)French Court Kicks Google/LVMH Case Back To Appeals

The French Supreme Court Tuesday referred a previous ruling against Internet search giant Google Inc. (GOOG) back to the Court of Appeal, effectively canceling an earlier decision in favour of French luxury goods company LVMH Moet Hennessy Louis Vuitton SA (MC.FR), which complained that searches on Google’s website for its Louis Vuitton trademark generated adverts for counterfeiters and fake Louis Vuitton goods. The court, which is known in France as the Cour de Cassation, canceled a June 2006 Court of Appeals decision condemning Google to a EUR300,000 fine, and referred the case back to the appellate bench. The dispute concerns Google’s AdWords business. Google, like others in the multi-billion-dollar Internet search industry, derives valuable income from enabling advertisers to tag their ads to particular search words, often famous brands. LVMH has complained that searches on Google’s website for its Louis Vuitton trademark generated adverts for counterfeiters and fake Louis Vuitton goods. On March 23, the European Court of Justice ruled that Google could allow advertisers to use trademarks of brands as search keywords, but may be liable for polic

(wwd)Wal-Mart Charts New Course

“It’s hard to nudge an 800-pound gorilla in a different direction, but Wal-Mart U.S. appears to be doing just that. With same-store sales declining for the last four consecutive quarters and traffic decreasing, Wal-Mart needs to develop — and execute — new retail concepts if it is to grow beyond the rural and exurban markets that it has almost saturated in the U.S. To be sure, chasing trendy fashion isn’t in the cards for a chain whose apparel business is a chronic underachiever. When vice chairman Eduardo Castro-Wright relinquished his job as chief executive officer of Wal-Mart U.S. on June 29, he set in motion a management shake-up that will bring fundamental and cultural changes to the $400 billion retailer. Bill Simon, who succeeds Castro-Wright, seems to share the belief of Wal-Mart Stores Inc. ceo Mike Duke that the world’s largest retailer should return its focus to core competencies — moving enormous quantities of goods around the world as cheaply and efficiently as possible, rather than the more creative and style-driven marketing and merchandising. “The new ceo [Duke] is directing the company more toward logistics and operations and not marketing,” said Bill Dreher, a retail analyst at Deutsche Bank. Castro-Wright, who retains the vice chairman title, became president and ceo of global.com and global sourcing, allowing him to relocate to California, where his wife is recuperating from a heart transplant. He has been described as an innovative thinker and was the architect of the store remodeling initiative Project Impact and its transformational merchandising and marketing programs.” read more

(wwd)Prada Gets $455M Loan

“Prada SpA has negotiated a three-year loan agreement of 360 million euros, or $454.8 million at current exchange, which will be used to refinance a long-standing debt and to propel the company’s retail growth, its top priority. Prada is eyeing an initial public offering for the fourth time, possibly as soon as the first quarter of 2012. The timing coincides with the expiration of a 450 million euro, or $568.5 million, debt, which will partly be written off by this fresh loan, secured at lower interest rates. The brand’s goal is to generate more than 70 percent of consolidated turnover from directly operated stores next year. The brand has 280 units in 76 countries. The new loan is a move that will help both the banks and Prada, said Armando Branchini, vice president of Milan-based consulting firm Intercorporate. “Prada is currently undergoing a very positive sales growth, and I believe that by 2013 the return of the company’s retail investment will outdo this loan, especially with today’s cost of money,” he said. “Having more sales points will also make Prada more palatable for the IPO.” Prada spokesman Stefano Cantino said it was premature to say how the loan would be divided. Regarding store openings in the pipeline for this year, there are 30 new ones planned, with a focus on Asia-Pacific. “We are also strengthening our presence in Europe with openings in Frankfurt, Prague, Berlin and Lisbon,” Cantino said. Prada SpA reported operating profit in the first quarter ended April 30 rose almost sixfold, given a boost by strong retail sales in the U.S. and the Far East. Earnings before interest, taxes, depreciation and amortization increased to 64 million euros, or $86.4 million.” read more

(wwd)Burberry Sales Rise 31 Percent in First Quarter

“Fueled by sales of non-apparel and outerwear, Burberry revenue rose 30.6 percent to 282 million pounds, or $420.2 million, from 216 million pounds, or $321.8 million, in the first quarter ended June 30, the company said Tuesday. Figures have been calculated at average exchange rates for the three-month period. The first quarter revenue figure does not include Burberry’s Spanish operations, which are to be discontinued as of the fall 2010 season. Beginning with the spring 2011 collection, Burberry will sell its global collection, rather than the locally-produced one, in Spain. Including Spanish operations, sales in the three-month period would have increased 27.1 percent to 291 million pounds, or $433.6 million, from 229 million pounds, or $341.2 million. “The clear momentum in the business and our robust financial position together reinforce our confidence to increase investment for the future, while continuing to enhance the brand,” chief executive Angela Ahrendts stated. She added that the company would open 20-30 stores in the current year, mostly in the Americas and Asia Pacific regions.” read more

(bloomberg)Harrods Sees Profit From Islamic Fashion as Qatar Takes Control

Fashion designer Hind Beljafla makes abayas to match the Gucci shoes and Hermes handbags of high- spending women in the Gulf. Now these women can buy her elegant versions of the black Islamic robes, which obscure the contours of a woman’s body, when they head to London this summer to escape the Arabian Peninsula’s sweltering heat. Harrods started selling abayas by Beljafla’s DAS Collection in June, a month after Qatar’s sovereign-wealth fund bought the landmark store. “Muslim women are like any women around the world: they love fashion and love shopping,” Beljafla, 24, said in a July 1 interview in her Dubai store. Together with her 26-year-old sister Reem, she uses splashes of color, embroidery and even leather and metal studs on the plain black abaya. Fashion houses in Milan and Paris are waking up to the commercial potential for Muslim women’s clothing that respects religious values and sets new standards for style. The global Muslim fashion industry would be worth $96 billion if half of the world’s 1.6 billion Muslims spend just $120 a year on clothing, according to French Fashion University Esmod in Dubai. Gas exporter Qatar ranks among the world’s wealthiest nations, with a gross domestic product per capita of $121,000, while Saudi Arabia sits on a fifth of the planet’s oil reserves.

John Galliano was among 21 designers who participated in a Paris show in June 2009 at Hotel George V, owned by Saudi Prince Alwaleed Bin Talal. The made-to-measure abayas displayed there, worth up to $10,000, were donated to buyers, including members of the Saudi royal family. Saks Fifth Avenue, which hosted the event, then put designer ready-to-wear abayas on sale for as much as $12,000 at its stores in the Saudi cities of Riyadh and Jeddah. The abayas are displayed alongside designer evening gowns on the women-only floor of a shopping mall in Riyadh’s glass skyscraper, the Kingdom Center, owned by Alwaleed. At the top end of the market, Saudi princesses sometimes buy 15 to 20 evening gowns for as much as $20,000 each after ordering Saks to bring a selection of the latest Paris and Milan collections to their palaces, store manager Mohammed Nafisa said. They want abayas by the same designers to match. “They normally buy an outfit to be used only once at an evening reception,” which is an all-female gathering, he said. Saudi Arabia, which follows a strict interpretation of Islam, forbids mixing in public between men and women unrelated by family.” read more

(wwd)Fakes Continue to Grow, Despite More Seizures

“As quickly as they’re seized, more flood the market. Counterfeit products are benefiting from the economy’s woes as consumers still try to flaunt a well-known brand but are perhaps no longer able to afford the real thing, while the criminal element, including terrorists, seeks to generate ever more funds by moving into the counterfeiting business. The result is that, even as federal and local governments crack down harder on fake goods, the activity is increasing at a record rate. The flood of counterfeit goods into the U.S., mostly from China, costs legitimate businesses an estimated $250 billion a year in lost revenues and is responsible for the loss of 750,000 jobs annually, according to the International AntiCounterfeiting Coalition. In fiscal year 2009, U.S. Customs & Border Protection seized $260.7 million of fake merchandise. Shoes are the most common counterfeit product, accounting for 38 percent of infringing goods seized, but handbags, watches, jewelry, sunglasses, perfumes, pharmaceuticals and other consumer goods continue to be knocked off at alarming rates, according to the most recent figures from Customs. In 2009, seizures netted $99.8 million of footwear, $21.5 million of handbags and wallets, $21.5 million of wearing apparel, $15.53 million of watches and $10.5 million of jewelry. Luxury brands’ counterfeit problems have escalated even as statistics from Customs & Border Protection reveal a slight decline in seizures. The value of goods seized in 2009 dropped 4 percent to $260.7 million from $272.7 million in 2008, and the number of seizures declined 1 percent to 14,841 in 2009.” read more

(nyt)High Fashion Relents to Web’s Pull

“In the genteel world of luxury, companies long felt that the Web was no place for merchandising exclusive products. And there was a gentlemen’s agreement with department stores not to siphon sales by reaching out directly to wealthy customers. Then, in came the recession, and out went the niceties. Department stores slashed prices on $1,200 handbags, while luxury lines fretted about losing their exclusivity. Now, come September, marcjacobs.com is going retail, 10 years after most brands opened Web showrooms. “I was so annoyed last year that I wished no one had our merchandise,” said Robert Duffy, the president and vice chairman of Marc Jacobs. “All the department stores were panicked, and they were marking things down.” Other luxury brands — Jimmy Choo, Hugo Boss, Vince, Lancôme, St. John, Theory, Kiehl’s, Lilly Pulitzer, Donna Karan and La Perla — have started or soon will start selling their products through their Web sites. If it infuriates department stores or brings in customers who might have earned a glare from haughty clerks, who cares, as long as people are buying at full price? “These brands are finally taking the plunge to establish an online retail presence,” said Jeffrey Max, chief executive of Venda, which handles technology for e-commerce sites. “The recession forced these manufacturers to realize they needed to look for revenue wherever they could.” Adding to the Web’s appeal, profits are much higher on clothes sold directly to consumers, since no middleman takes a cut. And the brands can control pricing and styling on their sites.Hugo Boss uses the same models from its ads so its marketing is consistent, for instance, while Lacoste “won’t have any discount pricing on the Web, never, never, ever,” said Eric Bascle, director of strategic projects and e-commerce. When companies started to sell items online in the 1990s, most luxury brands paid little attention. By the mid-2000s, a few high-end companies were selling their products directly, but most still didn’t bother. “The classic luxury brand Web site is basically a Flash site with lots of beautiful imagery, but no one ever goes to it,” said Aaron Shapiro, a partner at the Web design firm Huge. Brands whose boutiques have fresh flowers and fawning salespeople could not translate that to the Web. “Luxury brands were a little hesitant or reticent, because they were struggling with how to convey and create an experience that was rich,” said Mark Brashear, chairman and chief executive for the Americas at Hugo Boss, which introduced its e-commerce site in April. But by the time the luxury market slid last year, attitudes were changing. Technology was improving, so sites could add features like zoom, videos and live help. And with budgets for store openings frozen, a Web store was a relatively cheap way to expand a business.” read more

(wwd)Billabong Agrees to Buy RVCA

“Billabong International Limited said Monday that it has reached a “conditional agreement” to buy California.-based skate and lifestyle brand RVCA for an undisclosed amount. “RVCA is not defined by any single sport or culture. It represents a community of culturally aware youth and is inspired by a diverse range of interests, each of which is underpinned by an original, highly creative design element,” Billabong International Limited chief executive officer Derek O’Neill said. “It is a brand that has developed a very strong presence in the United States, particularly in southern California, on the strength of its fashion-forward ranges in categories including art-driven t-shirts, denim, wovens, boardshorts and, more recently, its girls’ line,” the executive said. The acquisition includes the current management team, headed up by RVCA founder Pat Tenore, who established the brand in 2000.”

(wwd)Macy’s Names Langenstein

Macy’s Inc. has its fashion guru.  Molly Langenstein has been promoted to executive vice president of fashion and new business development, establishing the Macy’s veteran as the department store chain’s first national fashion director.  “She’ll be in charge of the overall fashion direction for Macy’s,” said Jim Sluzewski, Macy’s corporate spokesman. It’s the one top national slot Macy’s hasn’t filled since it centralized into a national chain from four divisions last year and seven divisions two years ago, and reorganized the top management with new assignments and titles. Langenstein will work with the market on fashion direction and trends that translate into sales opportunities and will report to chief merchandising officer Jeff Gennette. Nicole Fischelis continues as fashion director for women’s and will report to Langenstein. Other fashion directors in men’s wear and home areas also will report to Langenstein. Langenstein also will be responsible for procuring lease business opportunities and overseeing the multicultural business development organization, which seeks to develop minority- and women-owned merchandise suppliers and identify merchandise for multicultural customers. Macy’s leased operations inside the stores include Sunglass Hut and Motherhood Maternity shops, but the company is seeking to add more leased shops to fill voids in the assortments. “We are always looking to fill any white space,” Sluzewski said. “It tends to be specialty businesses — niche categories that take a special expertise.” Previously, Langenstein was group vice president and divisional merchandise manager for neo sportswear [contemporary brands] and Impulse [young contemporary sportswear]. Moving up to Langenstein’s previous spot is Tim Baxter, who has been group vice president and dmm of fashion jewelry and watches. Langenstein joined Macy’s in January 1985 as a group manager for ready-to-wear in Boynton Beach, Fla., and steadily rose up the merchandising ranks.”