Mar
 30
 2018



Ulrike

Hello,

Happy Friday and welcome back to The Spin! Today we check out, which sports company saw the accounts of 150 million users hacked, how PVH's Manny Chirico put Amazon in its place, and what Neiman Marcus' former CEO Karen Katz does for revenge. Enjoy the read - and the weekend! Best, Ulrike



brands

Unlawful entry. News of a massive data breach sank Under Armour’s stock almost 4 percent in after hours trading. According the Baltimore-based sports company, an unauthorized party acquired data from about 150 million MyFitnessPal user accounts in February, including names, email addresses and passwords, but not financial information. Under Armour learned (press release) about the incident on March 25 and claims to have alerted the MyFitnessPal community immediately.


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Beating the estimate. Driven by strong growth of its Calvin Klein and Tommy Hilfiger labels, PVH increased Q4 sales by 19 percent, beating analysts’ expectations. Boosted by CEO Emanual Chirico’s estimation, that Trump’s China tariffs will not have a strong impact on its business, the PVH stock rose over 5 percent. For future growth, the company is looking (paywall) at possible license buybacks and new acquisitions, with Tory Burch and Dries van Noten among the names coming up in the rumor mill.



Nobody's buying. Vetements’ Demna Gvasalia, who personally called out the fashion industry for excess and consumerism, might be culpable himself. According to former Vetements employees, sales associates and anonymous buyers, no one is looking at the brand any more. Retail sales have dropped, and to move merchandise, discounts of 60 to 70 percent are not uncommon. In addition to Gvasalia being bored, this might also be a reason why Vetements did not show at Paris Fashion Week last season.





tech

Nobody's using. The same seems true for Amazon’s social network, Spark, which has not yet caught on with influencers, brands or agencies. Launched in July 2017, the picture driven, shoppable network, which is only open to Prime members, still has a ways to go to convince marketers of its value.





retail

A wind of change. Hudson’s Bay’s Q4 was encouraging, but there's still a lot to be done. The biggest headaches are HBC Europe, where less traffic lowered sales by 3.4 percent, and the off-price division which was down 7.6 percent. CEO Helena Foulkes recently toured stores and already announced (earnings call transcript) changes based on the opportunities she sees, both for stores and digital. Resurfacing rumors about takeover talks with Neiman Marcus were not addressed, though.



Carbon footprint. After seven years in business, online luxury sports retailer Carbon38 is getting into physical retail. The brand’s first flagship will open in Los Angeles in September, preceded by a pop-up store in New York’s seaside resort of Bridgehampton this summer. The Californian brand, which sold a minority stake to Foot Locker in January, is also available on Neiman Marcus.





people

Sweetest revenge. When she first applied for a job at the Dallas-based retailer in the early 80s, Neiman Marcus’ former CEO Karen Katz was rejected. So she joined the regional department store chain Foley’s. In 1985 she finally got in at NM as assistant store manager, working her way up until she was awarded the CEO position in 2010. Under her tenure, the online business grew to more than a third of total revenues, while she lived up to her motto of success being sweet revenge.





last

Putting Amazon in place. According to PVH's CEO Emanuel Chirico, Amazon’s algorithms are built on replenishment to keep customers happy in core categories. "The maturity level at Amazon, in particular when it comes to fashion, needs to be further developed", he says in an earnings call. "It’s just not where it needs to be right now. They don't have the metrics at this point, and they don't have the presentation of product to really drive it."







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