There was a plethora of earnings reports in the past week, but none was as dramatic as Targets, for the following reason: Their first quarter profit rose 28.5% with same store sales rising 2.8%. But, what makes that news so impactful is that a large contributor to the profit picture was in apparel, which is in stark contrast to the very visible weak apparel returns at rival Walmart. While we are firm believers in Walmart’s stock being undervalued, it is pretty apparent that Target is eating Walmart’s lunch in soft goods.
AllSaints, the British based contemporary brand, opened it’s first New York store in Soho on lower Broadway on Friday and did $10,000 in the first hour of business. The 13,600 sq foot location is in the middle of a popular area for shoppers and pedestrians, within 2 blocks of the new Hollister, Uniglo, Bloomingdales and Topshop stores. It is the third store to open in the US, all in the last 7 months, first in Los Angeles and then Miami and most recently in Boston. The LA and Miami stores are tracking well ahead of plan. Later this year 4 more stores are set to open here, San Francisco, Chciago, Las Vegas and Seattle. AllSaints operates 70 freestanding stores and 70 in-store concession shops around the world, including Bloomingdales 59th st.
Jones Apparel signed a licensing agreement to market men’s denim under Andrew Marc and derivative labels, Marc Moto and Marc New York. The outerwear company, which was bought by G-III Apparel 2 years ago, is well-known for contemporary men’s and women’s outerwear and also has licenses for women’s shoes and bags and men’s accessories. Jones, which has a large women’s and junior jeans business that is close to a $1 billion in volume, with LEI as an exclusive at Walmart and Gloria Vanderbilt as the 2 largest revenue producers. Their recent launch of Jessica Simpson Jeans is said to be exhibiting signs of success as well. Jones has never had much traction in the men’s arena and Andrew Marc is not a powerful enough brand to generate big returns, but can be the nucleus of an emerging men’s business.
There was a lot of cheering on Friday when it was announced that Devi Kroell was leaving her namesake designer shoe and handbag company. Or more accurately, was being forced out by her backer and partner Ralph Bartel. Kroell, well know in the industry, for mistreating employees, suppliers, buyers and just about anyone else that came in contact with her, will not be missed.
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