Gucci owner swoops on sportswear firm Puma
GUCCI
Gucci owner swoops on sportswear firm Puma (11 April 2007)PPR, the French luxury brands owner, has grabbed control of the German sportswear group Puma, acquiring a 27 per cent stake in a deal that values the company at €5.3bn (£3.7bn).
The owner of the Gucci and Yves Saint Laurent brands also made an offer for the rest of Puma. However, the 27 per cent stake already puts it in charge, as it comes with three of the six seats on the Puma supervisory board and the support of the German company's management. There have been long-running rumours that Nike or Adidas would swoop on Puma. There was still talk of a counter bid yesterday, with analysts suggesting the €330-a-share offer price was low. However industry sources said that competitors had, in effect, been shut out, through the acquisition of the stake directly from the German billionaires Günter and Daniela Herz.
Adidas bought Reebok last year for $3.8bn (£1.9bn) but Puma was not keen on becoming part of a larger sportswear group. Under PPR, Puma will continue to be run as a stand-alone brand. The move on Puma was the first major acquisition by PPR under its chief executive François-Henri Pinault, who took over from his father François Pinault three years ago.
François-Henri Pinault said: "We guarantee Puma's continuity as an autonomous company within the PPR Group ... The company's [PPR's] strategy is one of organic growth. We don't need to make acquisitions to grow but we will be able to take hold of any other opportunities."
Jochen Zeitz, Puma's chief executive and chairman, said that the company's board "is convinced that PPR, as one of the world's top fashion and retail firms, will be the perfect partner for Puma, one of the world's leading sport lifestyle companies. Both companies have a European background and ideally complement each other with regard to their global perspective."
PPR will now push the retail presence of Puma, as it has with Gucci, and expand it internationally. Currently 85 per cent of Puma's business is wholesale. For PPR, Puma may be a better fit than other sportswear businesses as Puma markets itself as a lifestyle brand.
Last year, it launched a joint footwear collection with Alexander McQueen, also part of the PPR group. The French company said its strategy was to added to its portfolio higher growth and higher-margin businesses.
Puma, sponsor of Italy's national football team, has quadrupled sales in five years. Last year, revenues at Puma amounted to €2.4bn, producing a net profit of €263m. PPR pledged that the jobs of Puma's 7,800 workers were safe.
Puma was launched in 1948, by Rudolf Dassler, brother of the founder of Adidas. The company's logo has been worn by stars ranging from Pele, during two successful World Cups, to Boris Becker when he first won Wimbledon in 1985.
The Herz brother and sister duo are believed to have made a profit of about 75 per cent on the Puma stake they bought less than two years ago.
Levi's Goes Organic
LEVI
Levi's Goes Organic NEW YORK (July 10, 2006) - Levi's blue jeans are going green. The San Francisco based denim giant will introduce new lines of jeans made from organic cotton this fall, under the Levi's Eco moniker. Priced 10 to 20 percent higher than standard Levi's jeans, the Eco product is targeting environmentally conscious consumers while burnishing Levi's reputation as a good corporate citizen.David Chu Signs Canada License
DAVID CHU
NEW YORK (July 10, 2006) - David Chu inked his first licensing agreement last week, signing up Toronto-based Caulfeild Apparel Group to sell and distribute his collections in Canada.Supima to Launch Luxury Trade Show
SUPIMA
NEW YORK (July 10, 2006) - As of January, textile trade shows will be undergoing a paradigm shift. Dissatisfied with available show formats and venues, Supima, a marketing company for U.S.-grown luxury cotton, will stage a semi-annual hybrid show aimed at better department stores and specialty stores such as Neiman Marcus, Brooks Brothers and Nordstrom, according to marketing director Buxton Midyette.Men's Wearhouse Up in June
MEN'S WEARHOUSE
NEW YORK (July 6, 2006) - Men's Wearhouse beat analyst expectations with U.S. same-store sales in June of 3.7 percent, the company announced yesterday. Wall Street had expected the Houston-based men's specialty retailer to come in at 3.2 percent. Total sales for the month hit $189.3 million, up 9.2 percent from June 2005. For the year, Men's Wearhouse?s sales are up 7.1 percent to $781.5 million, while same-store sales are up 3.4 percent. Despite the upbeat announcement, the retailer?s shares fell 50 cents yesterday, and closed at $31.21 on the New York Stock Exchange.Ronda Walker Exits Pool Trade Show
RONDA WALKER
NEW YORK (July 6, 2006) - Ronda Walker has parted ways with the Pool Trade Show, the company she founded in 2001. Her last official day as general manager of the show was Monday, July 3. Walker is leaving to pursue other business opportunities, according to Advanstar Communications, the media and expositions company that acquired Pool in August 2005.At the time of the deal, Walker signed a three-year employment contract to remain at the helm of the low-cost show aimed at directional streetwear labels and boutique buyers.
?Ronda?s departure was a mutual decision. She wanted to go try other things, and we were okay with that,? said Joe Loggia, president and CEO of Advanstar Communications. These things are not that uncommon when a company is sold.
In a statement, Walker noted, Although I will no longer remain the general manager of Pool, I leave behind a staff with the continued sincerity and passion which Pool is known for. With the initiatives for 2007 and Advanstar?s strong commitment to success, I am confident that Pool will remain the alternative choice of trade shows for all boutique designers.
Walker?s position as general manager will not be filled, according to Loggia. The show is now being headed by Mindy Wiener, director of operations at Pool. She reports to Laura McConnell, executive vice-president, fashion, at Advanstar Communications.
Pool will debut its first New York show next week, from July 17 to 19, at the Jacob Javits Center. It will be staged simultaneously there with Project New York, which was also acquired by Advanstar Communications last August.
Loggia said the direction and execution of the Pool trade shows in New York and Las Vegas would not be impacted by Walker's departure. I don't think it means anything. She created it, she did a very good job, and it was her vision, but as part of that she developed a good team there and they will carry on Pool's mission, he noted.
Alan Burks Joining Henry Jacobson
HENRY JACOBSON
NEW YORK (July 3, 2006) - Alan Burks, the former executive vice-president/chief marketing officer for Haggar Corp., has been named president of both Mulberry Neckwear LLC and Henry Jacobson LLC, the lifestyle designer collection. He took over these twin positions last Thursday and is currently relocating to the Richmond, Calif., area where the two companies are headquartered. He replaces Katie Smith, who recently left the company.Atrium Expands Its Reach
ATRIUM
NEW YORK (July 3, 2006) - Sam Ben-Avraham, the owner of the hip New York City boutique Atriumm has officially extended his retail empire across the Hudson into Livingston, N.J., and announced plans to open a Miami outpost this November. Atrium Miami will occupy a 5,000-square-foot space at 1931 Collins Avenue in South Beach, adjacent to the city?s landmark Setai hotel.Department Store Contraction Hurts Hartmarx
NEW YORK (July 3, 2006) - Consolidation among the major department-store groups took a heavy toll on Hartmarx Corp.'s bottom line in the second quarter, with profits down 28 percent despite a 4.7 percent sales gain. The tough showing prompted the Chicago-based apparel giant to lower its full-year earnings guidance to a range of 50 to 55 cents per diluted share, which compares to the previous guidance of a 12 to 20 percent earnings improvement over last year?s 63 cents per diluted share.LVMH Wins Appeal Against Morgan Stanley
LVMH
PARIS (July 3, 2006) - LVMH Moet Hennessy Louis Vuitton claimed another victory Friday when the appeals court here upheld a 2004 decision finding Morgan Stanley guilty of gross misconduct for a biased portrayal of the French luxury group's fortunes versus its archrival Gucci Group. But the investment bank also found cause for celebration, proclaiming that the court vindicated analyst Claire Kent of unfair equity research, save for errors in the disclosure section of her reports and erroneous remarks by one bank executive in a newspaper interview. Morgan Stanley was ordered by the Paris commercial court in 2004 to pay a 30 million euro, or $37.5 million, penalty to LVMH. The appeals court said Friday the court-appointed expert already assigned to assess material damages should also revisit the initial penalty for moral prejudice. The expert, Didier Kling, has until July 2007 to table his findings.Gottschalks' Joseph Levy to Retire at Year's End
JOSEPH LEVY
LOS ANGELES (June 30, 2006) - Joseph Levy, 74, chairman of the board of the Fresno, Calif.?based Gottschalks Inc. department-store chain, will retire at the end of the year. Levy, a member of the chain?s founding family who has served in that post since the company went public two decades ago, made the announcement at the company?s annual shareholders? meeting on June 28. He will continue to serve on the board after his retirement. 
Talks to Acquire
VALENTINO
Valentino, the fashion house based in Rome and which has dressed several of the world's first ladies, is being considered as an acquisition by the Italian company Holding di Partecipazioni Industriali (HPI).
Designer Valentino Garavani, 65, and his business partner Giancarlo Giammetti, 60, said earlier this year that they wanted to sell the fashion house in order to secure the group's future after they leave the business.
HPI are still assessing the value of Valentino. Too little detailed data has been available from the Valentino fashion group to judge how much such a purchase might cost.
"Valentino and I started this business in the '60s and we don't want to toss it to the wind, or see it fall into the wrong hands," Giammetti is quoted as saying.
Valentino first came to fame while working with Jean Desses and Guy Laroche, and eventually made a name for himself with his own fashion house. Since then, he has designed both haute couture and quality ready-to-wear, dressing Princess Diana, Elizabeth Taylor, Jackie Kennedy Onassis, Sophia Loren, and receiving national recognition in his native Italy. He later added perfume to his collections.
HPI already has investments in Fila Sportswear, GFT, a clothing manufacturer, and publishing house Rizzoli Corriere Della Sera. The acquisition of Valentino if it took place, would be part of HPI's plan for creating an Italian fashion powerhouse capable of competing in global markets.
HPI produces Valentino's boutique, and ready-to-wear lines, and Miss Valentino and Valentino Uomo ranges. It also makes apparel for Giorgio Armani.
Earlier this year HPI had plans to join with family-owned clothing manufacturer and retailer, Marzotto SpA but this failed when the Marzotto family decided it would not have enough say in managing the resulting conglomerate.
The merged HPI-Marzotto company would have had 8.2 trillion lire ($US4.6 billion) in sales.