May
 02
 2017



Ulrike

Greeting

As the fashion market is evolving at a head-spinning pace, we are working tirelessly to keep you informed on the latest global developments. While Trump is hammering out a tax reform in the US, it looks like the US retail crisis might swap over to Australia. Deckers Brands is putting itself up for sale, analysts predict that Gucci's phenomenal growth might soon come to a halt, and - on a lighter note - consumers in the US will soon be able to order new Calvin Klein underwear by simply pressing an Amazon Dash button. Enjoy the read!



brands

Gucci might have reached its zenith. Shares in French luxury conglomerate Kering, which owns the highly successful Gucci brand, have almost doubled over the past twelve months. According to market insiders, this level of performance is unlikely to continue for much longer. Soon, Kering's remaining brands will have to step up their game, most notably Saint Laurent Paris and Bottega Veneta.



Ivanka Trump's business booms in China. While anti-Trump protesters in the US continue to call for the boycott of Ivanka Trump 's product lines, the first daughter's business is booming in China .



Deckers Brands ponders sale. Californian footwear company Deckers Brands has initiated a comprehensive review of strategic alternatives to enhance stockholder value. According to the company's press release , this includes a possible sale or other transaction. Analysts estimate a sales price of up to $69 per share , which values the company at approximately $2.2 billion. The Company’s portfolio of brands includes UGG®, Koolaburra® by UGG, HOKA ONE ONE®, Teva® and Sanuk®.





retail

Boohoo records "momentous year". Thanks in part to successful celebrity and influencer campaigns on social media, Manchester-based fast fashion E-tailer Boohoo increased sales by 51% to £295 million in 2016. The company's pre-tax profit rose by 97% to £31 million. According to CFO Neil Catto, the company’s success with millennial customers has been driven by its focus on encouraging celebrities and bloggers to publish posts with the retailer’s clothes on Instagram. In February 2017, Boohoo bought fashion website Nasty Gal .



US retail crisis might swap over to Australia. According to Moody's, the US retail industry is stabilizing but profits will be lean . Meanwhile, the US retail crisis might hit Australia since many Australian retailers have modeled their operations on US models.





tech

Amazon now offers style checks, weather-based shopping recommendations and a Dash button for underwear. Amazon's voice-controlled smart home camera, Echo Look , functions as a cloud-connected fashion consultant. Style-challenged customers can snap selfies in different outfits and ask Alexa for style advice. New underwear can now be shopped by the simple push of a Dash button , and a new shopping tool offers buying recommendations based on local weather conditions. Those technologies add to the massive amount of consumer data being collected by the online giant.



Retailers and fashion brands cooperate on data strategies. To ramp up sales, retailers and fashion companies are increasingly sharing customer insights including number and duration of visits to online stores, search results and purchases. Luxury brand Altuzarra, for example, directs traffic from its own website to its retail partners and then gathers data around customer search and purchase intent. New technologies analyze customer behavior to see which online retailers they visit, where they hover and what leads them to click and buy.





people

Mindy Grossmann moves from Home Shopping Network to Weight Watchers. CEO Mindy Grossman is leaving HSN , Inc (HSNi) to join Weight Watchers as CEO. Grossman joined HSN in 2008 and has turned around the home shopping television channel by livening it up with live concerts and celebrity sellers like P.Diddy and Serena Williams. Her resignation will be effective on May 24. Until a successor is named, the board has established an office of the chief executive whose members are to manage the company’s day-to-day operations. Grossman will work with the office to ensure a smooth transition. According to HSNi, a search firm has been retained and both internal and external candidates are being considered.



Abercrombie's Fran Horowitz took 1% cut in compensation. Fran Horowitz, who became CEO of embattled US fashion retailer Abercrombie & Fitch in February 2017, took a 1% cut in total compensation in 2016. At that time, she still held the position of President and Chief Merchandising Officer. According to the company’s proxy filing with the Securities and Exchange Commission, Horowitz’s compensation totaled $4.76 million in 2016. While her base salary jumped 9.4% $1.1 million, stock awards were about $3.6 million. The remaining balance includes contributions to a 401(k) plan and insurance premiums. In 2015, Horowitz's total compensation was $4.8 million.





markets

Highly taxed US apparel industry not (yet) excited about Trump's tax reform plan. US President Donald Trump's tax-reform plan provides for a significant reduction of the corporate tax rate from currently 35% to 15% as well as a reduction in the number of individual tax brackets from seven to three at 10 percent, 25 percent and 35 percent. This should be good news for the US apparel sector, but first reactions have been mixed. Since the administration has not yet fully explained how the tax reform is going to be funded, industry insiders are concerned are that a controversial border adjusted tax (BAT) for imports might be used to finance it.







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