Rebekah Wing
Lisa Dengler
Kristin G
Martina M
Lina S
Fiscal 2010 will be a year of growth again for HUGO BOSS AG. The company generated significant double-digit increases in sales and profit in the third quarter.
"Our growth in the third quarter is broad-based, with all regions, distribution channels and brands contributing to it,” said Claus-Dietrich Lahrs, CEO and Chairman of the Managing Board of HUGO BOSS AG, of the publication of the quarterly report. “The results show that we have chosen the right path to achieve our goals for 2015.”
EBITDA before special items up 42% in Q3
In the third quarter of 2010, HUGO BOSS Group sales were up 14% on a currency-neutral basis. In euro terms, the Group posted a sales increase of 19% to EUR 538 million (2009: EUR 450 million). The improvement was supported by double-digit currency-neutral growth in all regions (Europe +12%, America +13%, Asia/Pacific +27%). Wholesale revenues were 6% higher than in the previous year after adjustment for currency effects. Retail sales (including outlets and online) increased by 36% after adjustment for currency effects.
The first-time consolidation of the joint venture with the Rainbow Group in China supported this development. On a like-for-like basis, revenues at directly operated retail stores rose by 15% after adjustment for currency effects. As a result of the growing share of retail sales, a consistent pricing policy and efficiency improvements in production and sourcing activities, the gross profit margin increased by 4.9 percentage points to 59.2% (2009: 54.3%). The rise in the gross profit margin also resulted in an increase of 4.5 percentage points in the EBITDA margin before special items, which amounted to 27.9% (2009: 23.4%).
Gross profit margin improves by 5.4 percentage points after nine months In the first nine months of 2010, HUGO BOSS Group sales were up 2% on a currency-neutral basis. In the reporting currency, revenues increased 6% to EUR 1,307 million (2009: EUR 1,238 million). Europe posted a currency-neutral decline of 2%, whereas sales in America and Asia/Pacific improved by 11% and 16% respectively. While wholesale revenues were down 8% after adjustment for currency effects, retail sales rose 27% in the first nine months. On a like-for-like basis and after adjustment for currency effects, the sales increase at directly operated retail stores amounted to 10%. The gross profit margin grew by 5.4 percentage points to 58.0% (2009: 52.6%). The EBITDA margin before special items rose by 3.1 percentage points to 20.9% (2009: 17.8%).
Considerable decrease in debt
Strict monitoring of net working capital led to a year-on-year improvement of 15% to EUR 265 million (September 30, 2009: EUR 311 million). The net financial position decreased by 34% to EUR 304 million (September 30, 2009: EUR 459 million).
Sales and earnings forecast raised
As third quarter results were considerably better than originally expected, the Group has raised its forecasts for the full year. Management now anticipates a currency-neutral sales increase of 5% for fiscal 2010 (previously: increase between 3% and 5%). As a result of significant improvements in the gross profit margin, operating income (EBITDA before special items) is expected to see stronger growth than sales of approximately 20% (previously: between 10% and 12%).
Following the January 2010 launch of “Gucci Collector: Presented by Christie’s,” the first nine months of the collector’s service have unearthed more than 600 submissions from over 25 countries. The first Gucci-certified online destination for appraising vintage Gucci products receives regular uploads from Gucci collectors all over the world, which are then appraised by a team of experts from Christie’s and from Gucci’s own Archive Department. Over 30 of the most precious and unique items, including handbags and jewellery, will be featured in Christie’s upcoming annual Fashion Through The Ages sale on December 2, 2010.
For nearly 90 years, the House of Gucci has continuously produced spectacular products that have been treasured and passed down through family generations or avidly hunted down by vintage connoisseurs. The impeccable quality and craftsmanship of Gucci’s products has ensured their value as investment pieces, while the innovative designs have rendered these items timeless. “Gucci Collector: Presented by Christie’s” has been designed specifically for those impassioned collectors who want to learn more about their vintage treasures, both in provenance and worth, and has become the ultimate resource for vintage and interested novices alike.
Gucci items ranging in value from £600 to £3,000 will be featured in Christie’s Fashion Through The Ages sale, originally submitted through the free service offered on a dedicated section of the Christie’s website accessible both via gucci.com and christies.com.
The customized section, which allows owners to upload photos of their vintage items and to submit an appraisal request, is the first single fashion house specialization to be featured on the auctioneer’s site. Within a 2 to 4 week period, “Gucci Collectors” receive an auction estimate, prepared by Christie’s Director of Fashion and Textiles, Patricia Frost and her team of costume specialists in collaboration with the Gucci Archive Department.
Collectors are also informed as to whether the product would be appropriate either for a potential Christie’s vintage sale, or if it might be of interest to either Gucci or Christie’s from an historical perspective. Participation in sales is purely optional for owners seeking appraisal, while prospective buyers can be assured that the products have received an official appraisal from one of the world’s most respected auction houses.
In anticipation of the December 2 auction, Gucci’s Archivist has selected her top picks of the most unusual and desirable items for a special preview currently available on Gucci.com. In addition, Christie’s Director of Fashion and Textiles Pat Frost has also compiled her favorite items submitted through the appraisal service and selected for sale, available for viewing on Christies.com.
Since the launch, the vast majority of submissions have been treasured possessions that were inherited or passed down through family generations. Many items were once their owner’s favorites, for example a rare beauty case from the late Seventies/early Eighties which traveled the world and yet remains in excellent condition, reflecting the House’s unparalleled craftsmanship.
Another testament to the endurance and quality of Gucci is the outstanding look and feel of a rediscovered white leather handbag with bamboo detailing from the late Fifties. Upon appraisal for their items, the select collectors invited to participate in the auction were delighted to learn that their Gucci items have a chance of returning to their home as the House may reacquire them for its own archives.
The Gucci Collector initiative coincides with the House’s plans to open a Gucci museum in Florence, the birthplace of the Italian House, to coincide with Gucci’s 90th anniversary in 2011. The museum will include rare pieces which Gucci has been able to reacquire for its archives through the collector’s service.
An intense interest has been expressed by leading designers Louis Vuitton, Giorgio Armani, Prada and Zara in batik and songket designs of Terengganu state of Malaysia.
In a promotional blitz by the state government in Milan, Barcelona, London, and Paris, representatives of all the above mentioned companies showed their interests in the Malaysian state's local textiles.
The elaborate patterns and designs of batik and songket impressed the European designers the most. Several top European fashion designers are also very interested in creating their collections using these textiles.
These textiles have also impressed the fashion writers in Barcelona. It is expected that Terengganu’s textile industry will emerge as a high-revenue generator of the state because of its European connections.
Batik is a popular textile design in Malaysia which has been flaunted by several politicians at public places. In a bid to endorse state’s local textile industry, the state government will further keep on inviting fashion designers of other countries.
NIKE, Inc. announced Carl Grebert has been named Vice President and General Manager of Nike Japan. In this role, Grebert will be responsible for leading the company's strategy for growth in Japan including product alignment, sales, marketing and consumer connections across the geography.
Jim Godbout, previous Vice President and General Manager for Japan, will return to Nike's corporate headquarters in Beaverton, OR, to assume a new role in global sales.
Grebert, age 41, has been with Nike for 13 years and has held various senior management positions in the company's Asia Pacific and European businesses.
"Carl is a proven leader and brings strong global management experience to this important geography for the company," said NIKE, Inc. President of Global Operations Gary DeStefano. "We look forward to Carl strengthening and growing the Nike brand in Japan by leading our strategy of connecting with consumers in a market that continues to influence trends and inspire everyone around the world."
World fibre production fell by 0.7% in 2009 following a 6.8% decline in 2008. The fall in 2009 was due entirely to a 5.7% decline in natural fibre production. Man-made fibre output, by contrast, recovered, having increased by 2.4% after a 4.2% drop in 2008. However, the increase was confined largely to China and India.
The recovery in man-made fibres stemmed from growth in synthetic fibres as well as cellulosic fibres, although the rise in synthetics was less marked. Polyester production reached a new high but nylon output continued to decline. As a result of these developments, the share of natural fibres fell for the third consecutive year to 36.6%, due chiefly to a 5.9% decline in cotton demand. However, declines were also recorded in wool and silk consumption.
The cotton price has been increasing steadily since March 2009, reflecting a decline in stocks to what some regard as dangerously low levels. The decline in stocks stemmed from a recovery in demand combined with declining output as low prices in 2008/09 discouraged farmers from planting cotton.
Furthermore, fears over stock shortages have been exacerbated by the recent flooding in Pakistan. In fact the cotton price has risen above the one dollar barrier for only the second time in its history, and by September 29, 2010, it hit 115.6 cents/lb from a low of 51.50 in March 2009. For the 2010/11 crop year as a whole (August 1, 2010-July 31, 2011) demand will continue to exceed supply slightly and stocks will diminish as a consequence. Nonetheless, the average price is expected to soften as global supplies increase.
Wool prices also rose during the 2009/10 seasonâ???due to concern over future stock levelsâ???to reach A$9.22 per kg in March 2010. But the price then fell back due to the strengthening of the Australian dollar and by September 30, 2010, it stood at A$8.75 per kg. Looking ahead, the price looks set to remain below A$9 per kg as customers seem unlikely to increase their purchases significantly. Over the 2010/11 season, consumption is expected to be slightly higher than output. Stocks are therefore likely to rise and the increase looks to be enough to constrain prices.
Global demand for wool fibre is being sustained largely by consumption in China. Elsewhere, it is being depressed by the restructuring of the textile industries in industrialised countries. In the EU, consumer demand looks weak and stocks of finished items continue to grow. The problems are particularly acute in Italy, where a substantial amount of manufacturing capacity is being relocated to Eastern Europe and China.
German manufacturer of knitted sportswear Schneider Sportswear OHG from Albstadt in Baden-W??rttemberg has been awarded the Hohenstein Institute's first Wellness Label for textiles and clothing. The company's senior management was presented with the label for use on its products in September by Silke Off, Head of the Laboratory for Clothing Physiology at the Hohenstein Institute, who had played an important part in designing, developing and introducing the new label.
Certified for Wellness
People want to feel comfortable in their clothes. Especially for leisure activities and sport, but also just for relaxing on the sofa at home, there is a big demand for feel-good textiles. They should be as comfortable as possible, soft and supple, skin-friendly and breathable. They should also be high-quality garments which do not lose either their colour or their shape, even after being washed many times, says the Hohenstein Institute. Now, thanks to its new Wellness Label, consumers can look specifically for certified products which are particularly comfortable to wear and are also easy to look after.
According to the Hohenstein, the concept of wellness textiles is not confined to traditional leisure and wellness clothing but can also apply to items such as dressing-gowns or towels. The new label from the Hohenstein Institute makes it possible for textile products to be objectively measured for their suitability for wellness purposes and means that shoppers can also regard certified products as being of higher quality, because of the extensive testing they have undergone. For sellers, the label is said to be a perfect selling point when they are advising their customers.
Before a textile product can be certified, it must go through a specially developed programme of tests at the independent Hohenstein Institute. For this, appropriate measuring instruments are used to test textile products against defined criteria and assess them. If they are suitable to be classed as wellness tested textiles according to the current guidelines, this is then confirmed.
Skin sensory comfort
How comfortable a textile product is to wear is largely determined by its skin sensory properties. This is the term used to describe the immediate touch sensation that the product makes on the skin, Hohenstein's scientists say. Five different measurements are taken in order to quantify objectively how a textile product feels to the wearer when it is in direct contact with their skin.
The surface finish index states whether the product scratches the skin or feels nice and soft. The sticking index shows how much a textile product sticks to damp skin and consequently feels uncomfortable. The wetting index provides information about how quickly moisture is absorbed by the textile product when you sweat, and is subsequently carried away from the skin. The number of contact points between the textile and the skin is used to measure how quickly the textile starts to feel clammy and damp.
The stiffness measurement is important for how well the textile product fits your body and can be an indication of how comfortable in general the garment seems to the wearer. The breathability of the textile is also measured. Taking all the measurements together, the level of skin sensory comfort is calculated and the skin sensory properties of the textile product that is being tested are judged against defined limit values.
As well as the skin sensory properties, the ease of care of textile products is also tested, with regard to their colourfastness under ISO 105-B02, their dimensional stability after 20 washes and their general resistance to washing. If the textile product that is being tested meets all the target specifications, it is endorsed with the Wellness Label.
Top priorities for Schneider Sportswear
Wellness, comfort and quality are said to be top priorities for Schneider Sportswear, as Silke Off explains: "This company, which sets such high standards for its products, is tailor-made to launch the new Wellness Label. During its development phase, both sides benefited from our close cooperation."
Schneider operates in the sports fabrics segment which is mainly dominated by the world-famous brand names of powerful global players. However, rather than making products for top athletes, the traditional company makes high-quality sportswear for people of all ages who take an active approach to life. Annette Kemmler, Managing Director of Schneider Sportswear OHG, explains: "We want to offer the best possible wellness clothing for people who have found their own, individual interpretation of sport and fitness as part of their personal lifestyle. For us, it's enormously important that our products meet all the highest specifications for quality and fit."
With its unique selling point of a Sizing service, which guarantees a perfect fit by means of a clever system of colours and numbers, the company's strategy is to produce consumer-oriented collections for customers in German speaking countries. What is extremely important here is that the company develops its own fabrics, always with a view to the design and function of the products in question.
Knitted fabrics are manufactured to the highest quality standards in Schneider's new knitting and technology centre in Albstadt-Pfeffingen which went into operation in 2009. The facility is equipped with the latest knitting machines and as part of a pilot project, extra lint extractors are installed to provide optimised knitting conditions. Together with EDP controlled processes, conditions in the knitting room ensure maximum production efficiency. Schneider Sportswear currently employs 60 people in Albstadt-Pfeffingen and a further 180 garment assemblers Eastern Europe, 80 of them at its own factory in Bulgaria.
Posted by FNA-India has been in talks with Bangladesh about offering swift relief for Bangladeshi leathergoods producers.
According to Bangladesh’s commerce minister, Faruk Khan, India is considering lifting import duties on 61 Bangladeshi products including leathergoods and textiles.
"In a bid to enhance bilateral trade relations between the two SAARC neighbours, Delhi has assured Dhaka to give duty-free entry of 61 local goods, including textiles and leather to the Indian territory," Khan said.
India exported goods worth $4 billion from Bangladesh in 2009 and imported goods worth $330 million from the neighbouring country.
The young couple appears in the new winter catalogue and poses with the designs of Spain’s most international brand.
Born in New York on 28 February 1986, Olivia Palermo grew up in New York City, Connecticut and Paris. Her elegant and effortless personal style and her ability to perfectly combine the must-haves of the moment have garnered her worldwide recognition as a fashion trendsetter. She lives in Brooklyn with her boyfriend, German-born model Johannes Huebl, who has appeared in top fashion magazines such as Vogue, ELLE, Harper’s Bazaar, and GQ.
The famous party photographer Patrick McMullan was the first to discover Olivia’s charm, style and beauty and started taking her photos at social events about town. Since then she has starred in a popular reality TV series about the fashion industry and has appeared in numerous international magazines such as Vogue, Harper’s Bazaar, ELLE, and InStyle, among many others. In her spare time, she supports charitable organizations, in particular Operation Smile and New Yorkers for Children.
During the photo shoot for the new catalogue, in which day and night looks are combined, Olivia and Johannes revealed their chemistry by posing in a totally natural way in front of the photographer Txema Yeste at Barcelona’s Hotel Palace. The model declared: I love working with Johannes, and the photographers love seeing the chemistry that exists between us. Also, working with MANGO is like a dream, because it is a wonderful company. The styling was done by the MANGO team, while the make-up and hair styling was the responsibility of Jordi Fontanals and Christoph Hasenbein respectively.
This season, the Spanish firm continues to reinterpret traditional country garments, such as the cape, garments with leather and suede applications, or thick knits with a handmade appearance. All of them feature a range of camel tones and winter reds, combined with touches of grey and blue. For evening wear, the brand has gone for a theatrical and romantic air by applying elements such as feathers, sequins or stones. The colour palette comprises tones associated with vintage, such as make-up and beige, mixed with chocolate and caramel, while gold and copper add a touch of light.
MANGO, which opened its first store in Barcelona’s Passeig de Gràcia in 1984, now has over 1,600 stores in 100 countries. It is Spain’s second biggest fashion export company and its concept is based on an alliance between a quality product, in accordance with the latest fashion trends, and an affordable price. The brand image is reinforced by its stores, which benefit from a dynamic image in accordance with the personality of its customers, and represent the calling card for the brand.
The latest move by a luxury brand to promote its iconic stature and heritage among Chinese luxury consumers, Chanel will hold an exhibition at the Museum of Contemporary Art (MoCA) in Shanghai to profile the inspirations behind its couture designs.
The exhibit titled Culture Chanel will run from Jan. 15-March 14. Taking over both floors of the glass structure museum and curated by French art director and critic, Jean-Louis Froment with Chanel's support, the exhibit will feature some 400 items of clothing, artwork, films, and manuscripts.
Though not organized chronologically, it will span the history of Chanel, especially Gabrielle Chanel's rapport with artists including Jean Cocteau, Pablo Picasso and Igor Stravinsky, through to the Karl Lagerfeld era.
This is not the first fashion exhibit for MoCA. It organized the Salvatore Ferragamo's Evolving Legend 1928-2008 exhibit in honor of the Italian fashion house's 80th anniversary in 2008.
Considered "The Paris of the East", Shanghai is a hot destination for luxury labels looking to establish prominence in China. Luxury brands have taken a number of initiatives to endear themselves to this cosmopolitan city. According to The Independent:
In November 2009, to commemorate the opening of a Chanel boutique at the Peninsula Hotel in Shanghai, Chanel launched a website devoted exclusively to happenings in Shanghai.
And this past May, to mark the grand reopening of the Christian Dior boutique at the Shanghai Plaza, the French luxury brand rolled out a limited-edition Dior Blue collection that was sold exclusively at the Shanghai store.
But it's French luxury house Hermes that has invested the most heavily in Shanghai. This past September, it opened its first boutique in the city for its new clothing and lifestyle brand Shang Xia. The Chinese sub-label, which means "Up Down" in Mandarin, "aims to boost what [Hermes CEO Patrick] Thomas told AFP was 'very strong growth' in mainland China, Hong Kong, Macau and Taiwan - collectively now Hermes' 'principal market.'"
Imports of fur apparel into the U.S. rose sharply in August, continuing this year's solid uptrend following more than two years of monthly decreases.
The latest gain confirmed the trade's need to restock in greater depth as a result of last season's strong windup. But the dollar increase also reflected this year's much higher price structure.
From a unit standpoint - that data not available for comparable items, such as coats this year vs coats last year - the increase was thought to be slight. Significantly, most of the increase was in furs other than mink, an indication that retailers were stocking up on lower-priced items.
Imports from all sources in August jumped 43% to $16.3 million, according to the latest Commerce Dept. data. Interestingly, the mink portion dipped slightly to $5.4 million, while other furs soared 84% to $10.9 million, a rare development. This brought the eight-month total to $60.9 million, an increase of 29% over last year's period.
