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Ten notable from world’s top retailers

Textile retailing is the dealing that has the most swift, most noticeable & deepest impact on economic development & growth. Expansions & changes in retailing are bound to get noticed because they closely & directly touch each one of us, regardless of our age, class or profession. Thus retail is the motto. Retail is the management hymn. Retail is where to be. In this section we discuss the most recent activities ofglobal top retailers those who are purchasing huge quantities of textile productsfrom Bangladesh. If you have any connected information mail to farhan@textiletoday.com.bd

JCPenney same store sales increased 6.0 %

Texas based J. C. Penney Company, Inc. has announced financial results for the quarter ended Aug. 2, 2014.

For the second quarter, JCPenney reported net sales of $2.80 billion compared to $2.66 billion in the second quarter of 2013. Same store sales increased 6.0 % for the quarter. Online sales through jcp.com were $249 million for the quarter, up 16.7 % versus the same period last year.

Women’s and Men’s apparel and accessories, Home and Fine Jewelry were the Company’s top performing merchandise divisions in the quarter. Sephora inside JCPenney also continued its strong performance. Geographically, all regions delivered sales gains over the same period last year with the best performance in the southern and western regions of the country.

For the second quarter, gross margin was 36.0 % of sales, compared to 29.6 % in the same quarter last year, representing a 640 basis point improvement. Gross margin improved sequentially throughout the quarter and was positively impacted by improvement in the Company’s clearance sales performance.

Retailers and clothing brands asked for another $6.8m

Retailers and clothing brands are being ask to pay an extra $6.8m (£4m) towards factory inspections and worker education following the collapse last year of the Rana Plaza garment factory in Bangladesh.

The group, which was set up soon after the Rana Plaza factory complex in Dhaka collapsed causing the deaths of 1,129 people in April 2013, said it still expected to spend up to $48m over five years on the project but needed to frontload expenditure to complete the inspections, instead of spending in equal amounts over five years. So retailers and brands are being asked to contribute $16m this year, up from $9.2m last year towards completion of the programme, amounting to an increase of $6.8m.

In the alliance annual report, it estimated that the cost of fixing up the 600 factories its members used would cost $150m. Again those funds were to be supplied by factory owners. Signatories to the alliance, such as Walmart and Gap, are being asked to assist with soft loans or promises of orders to help factory owners comply with improvements.

Gap Inc. announces third quarter dividend

Gap Inc. has just announced that its Board of Directors authorized a quarterly dividend of $0.22 per share payable on or after October 29, 2014 to shareholders of record at the close of business on October 8, 2014. They also reported that June net sales increased 1 percent compared with last year. Net sales for the five-week period ended July, 2014 were $1.54 billion compared with net sales of $1.53 billion for the five-week period ended July, 2013. Gap Inc.’s comparable sales for June 2014 were down 2 percent versus a 7 percent increase last year.

Primark sales surges as warm weather dresses up profits

Sales at cut-price fashion chain Primark surged this spring as shoppers snapped up playsuits, kimonos and long floaty dresses in the warm weather. Analysts said the pace of growth in established stores had doubled to 8% in the three months to June, compared to 4% in the previous quarter, partly helped by the later timing of Easter. The company said sales at the fashion chain, which now has stores in nine countries, rose 22% as it added just over 11% more store space.

Sales at new stores in France were particularly strong as Primark’s fashions, particularly maxi-dresses, are proving a hit with French women. The strong sales at Primark helped ABF offset poor trading at its sugar division where revenues slumped 20% at constant currency rates as a result of lower sugar prices and weaker sales in Europe

Hugo Boss to take full control of China store network

German fashion house Hugo Boss is taking full control of its store network in China and Macau as it seeks to improve the way its brand is presented, a move that mirrors a broader trend by luxury goods groups in emerging markets. Big brands have been opening more directly-operated stores, buying back franchises and taking stakes in retail partners in Asia, Russia and the Middle East to give them more control over store design and how their goods are marketed.

Luxury brands that have bought out their retail partners include Gucci, Hermes and Prada in Russia, Burberry in China and Japan and watchmaker Swatch in the Middle East. Hugo Boss said in a statement it was buying a 40 percent stake in its joint venture in China and Macau from franchise partner Rainbow Group but did not say how much it paid. The operations comprising 55 stores generated sales of 94 million euros ($128 million) in 2013, contributing to total sales in China of 211 million euros from 126 stores and concessions, about 9 percent of group sales.

American Eagle to open London stores in fall

American Eagle Outfitters Inc. has made its first foray into the United Kingdom by opening three stores in the London area during the fall, the South Side-based teen clothing retailer said. The stores will be company-owned, joining nearly 120 American Eagle stores outside the United States in Canada, Mexico, Hong Kong, China and Puerto Rico. American Eagle’s sales in America have been slumping, along with many other clothing retailers, and the company has said it trying to diversify geographically.

The company is considering adding stores in Asia and Mexico. While opening shops overseas, American Eagle is closing U.S. stores as profits fall. Last month, the retailer said it would shutter 150 stores over three years because net income plummeted 86 percent in the first quarter. The company has about 950 U.S. stores.

M&S publishes new 2020 eco and ethical plan

Marks & Spencer (M&S) publishes its 2014 Plan A Report which launches a new, agile and stronger sustainable business plan which extends Plan A across M&S’ international business over the next six years. Called Plan A 2020, the 100  commitment plan retains and strengthens M&S’ 2015 eco and ethical commitments and includes new commitments that tackle both today’s and tomorrow’s sustainable retail challenges. The key plan are Energy efficiency target increased from 35% to 50% per sq ft by 2020 and UK stores to raise £1 million every year for local charities and plan to raise £20 million for health and well being charities by 2020.

Costs push Levi Strauss Q2 earnings down

Levi Strauss & Co. (LS&Co.) announced financial results for the second quarter ended last month. Net revenues declined two percent on a reported basis and one percent on a constant-currency basis, reflecting lower sales at wholesale in the Americas, partially of set by improved performance in Europe and Asia. Second quarter net income declined to $11 million primarily reflecting $28 million in restructuring and other charges related to the company’s global productivity initiative, and a debt extinguishment charge of $11 million associated with the partial redemption of its 7.75% Euro

Senior Notes due 2018. Excluding the global productivity initiative charges, adjusted EBIT declined six percent to $93 million due to a lower gross margin and the net revenues decline.

TargetreducesCambodia garment sourcing

US retailer Target Corp is another apparel manufacturer to have reportedly reduced its sourcing from Cambodian garment factories in response to industry turmoil in the country. Cambodia’s Minister of Commerce, Sun Chanthol, revealed the move by Target during a recent trade mission to the US. According to The Phnom Penh post, the minister said Target had joined clothing brand Levi Strauss in reducing orders following a deadly strike by apparel workers in early January. During January’s strike by garment workers calling for an increase in the minimum wage to US$160 per month, five people were killed when security forces opened fire on protesters with live ammunition. Report said the government is working with the International Labour Organization and the World Bank to calculate the appropriate minimum wage for the sector, in an attempt to help defuse the turmoil in the industry.

UNIQLO to Open Three Pop-Up Shops in Los Angeles and Orange County This Summer

UNIQLO, the global clothing retailer, has launched three pop-up stores in this July throughout the Los Angeles area where shoppers will get a sneak peak at UNIQLO’s signature clothing lines and world-class customer service. The pop-ups has featured a selection of UNIQLO’s high-quality, casual clothing for men and women. These items include Ultra-Light Down (from $49.90), AIRism innerwear for hot weather (from $12.90), the Supima cotton line (from $12.90), Chinos shorts (from $19.90), premium Jeans (from $39.90) and exceptional basics such as polos and the UT T-shirt collection. In 2014, UNIQLO will also be opening more new stores in Philadelphia, Boston, San Francisco or Northern California, Connecticut, New Jersey and New York. To staff these new stores, UNIQLO plans to hire and train several hundred full-time and part-time employees at all levels.

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