Monday, November 8, 2010
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY
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hometextilestoday.com
| Vol. 31, No.26 | $8.00
Home Again for Ralph Lauren BY WARREN SHOULBERG NEW YORK— Maybe Ralph Lauren Land isn’t exactly what they were going for, but the new Polo store complex at 72nd Street and Madison Avenue here is probably the most spectacular themed retail campus to be found anywhere. Three stores — including the new beaux arts mansion that houses an unprecedented Ralph Exclusive Lauren Home floor – represent the state of the upstairs art in merchandising luxury products. The new home for home tops the latest addition to the Polo stable, a 22,000-squarefeet structure across the street from the landmark Rhinelander mansion store, which now is being used exclusively for men’s, and The new Ralph Lauren next to a free-standstore is the feminine counterpart to the ing children’s store. original Rhinelander Home had previMansion Madison ously been on the Avenue flagship and top floor of the origincludes an expanded home department.
Ralph Lauren Signs with Sferra NEW YORK – Answering half of one of the biggest questions floating around the home textiles industry, Ralph Lauren Home announced last night that it has signed up Sferra Bros. Ltd. to produce bed and bath linens for the upstairs and hospitality markets. The agreement does not include Lauren Ralph Lauren bed
and bath products, which represent the bulk of the company’s home textiles business and are currently licensed to WestPoint Home. This new licensing agreement with Sferra takes Ralph Lauren into several additional channels of distribution, including hotel, SEE RL/SFERRA PAGE 23
Rising Costs a Concern For Bath Textiles Suppliers BY CECILE B. CORRAL NEW YORK — The bath segment of the home textiles industry grappling with a double whammy. Cotton price hikes are said to have reached a 15-year high as Pakistan reels from devastating floods and China tries to overcome a drought that together have plagued key global cotton sources. And a rubber shortage similarly prompted by heavy rains and floods in the rubber-growing regions of Thailand and Indonesia is poised to impact bath rug suppliers and manufacturers who rely on the rubber component of latex for the non-skid rug backing of their rug products. “It’s a huge problem,” said Wade Maples, coowner of Scottsboro, Ala.-based Maples Rugs. “The price [of rubber-related materials] has doubled, and there is no relief in sight. It is just SEE BATH PAGE 6
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Cobra by Espalma
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Retail Briefs Cost Plus, Southwest Airlines Partner to Stir Holiday Sales
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ost Plus World Market has come up with a creative marketing campaign with Southwest Airlines to spur sales of its holiday decorating and entertaining merchandise. Via the new “Buy and Fly” promotion scheduled October 23 to November 6, shoppers who make a purchase of $20 or more at any of Cost Plus’ 263 units in 30 states is eligible to receive a 15% discount on a Southwest Airlines airfare purchase. Online purchases are not applicable. Once customers make a qualifying in-store purchase, they must register the barcode on their receipt at www.cpwmswa.com to receive their Southwest Airlines discount code. Limited quantities available and the offer is on a “first come, first serve” basis. Some restrictions apply – complete terms and conditions are available at www.southwest.com/costplusfaresaver.
Sears Earns EPA National Building Competition Awards
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ears Holdings Corporation’s Glen Burnie, Md.based store earned second place in the U.S Environmental Protection Agency’s (EPA) first-ever National Building Competition. This competition challenged teams from 14 buildings across the country to measure their energy use and work off the waste with help from the EPA’s Energy Star program. The Glen Burnie store team accomplished several achievements: A 31.7% reduction in energy use, which is comparable to the electricity used in 33 homes for a year; $45,612 in savings on the store’s energy bills, creating enough money to buy 61 Energy Star Kenmore Elite high-efficiency top load washers; And reduced the carbon footprint of the store by more than 272 metric tons of carbon dioxide, which is equal to taking 52 cars off the road for a year. Additionally, the Glen Burnie Sears reduced its energy consumption through numerous energy efficiency initiatives including, but not limited to: an interior lighting retrofit of the entire store that called for replacing inefficient 4 lamp 30w light fixtures with energy efficient 2 lamp 32w light fixtures, thus reducing consumption and realizing higher light output to brighten the store for its associates and customers; the use of modified level lighting during maintenance crew cleaning times by rebalancing the light to the proper level.
November 8, 2010
News
Iconix Brands hits record revenues and earnings in Q3 BY CECILE B. CORRAL NEW YORK – Multi-brand house Iconix Brand Group Inc. experienced “record” revenue and earnings in its third quarter, with high double-digit increases for both. Total revenue for the third quarter soared 63% to approximately $96.9 million versus approximately $59.4 million for the year-ago period. Net income on a non-GAAP basis, which excludes non-cash interest related to the company’s convertible debt, also grew significantly but less so -- 32% -to approximately $29.8 million, and diluted earnings per share for the quarter was 40 cents compared to 31 cents last year. On a GAAP basis, net income increased 34% to approximately $27.4 million and GAAP diluted
EPS was 37 cents versus 28 cents in last year’s third quarter. Iconix noted that its third quarter 2010 financials include $12.5 million of revenue, or approximately 2 cents of diluted EPS, related to the new five-year contract it signed with the ABC network for the Peanuts holiday program specials. Year-to-date results were also strong for Iconix. Total revenue for the ninemonth period grew 47% to $244.6 million compared to $166.3 million last year. Net income on a non-GAAP basis increased 36% to $83.3 million and non-GAAP diluted earnings per share increased to $1.12 versus 93 cents for the prior year period. On a GAAP basis, net income increased 39% to $76.7 million
and GAAP diluted earnings per share was $1.03 versus 83 cents. Neil Cole, chairman and ceo, said during Iconix’s quarterly conference call this morning that the “driving factor for the increases were a full quarter with the Peanuts revenue…a full quarter with the Echo brand, as well as the healthy performance across our overall portfolio.” Iconix’s domestic business “remains strong and growing,” said Yehuda Shmidman, evp, operations, with the company’s more than 1,400 licensees. A large contributor to this segment is Iconix’s direct business, which achieved double-digit growth in the third quarter. While the company did not offer many details on the recent progress of its home business, it SEE ICONIX PAGE 23
Kohl’s, Macy’s, Target in Black Friday mode N E W Y O R K – Kohl’s Corp.,
Macy’s Inc. and Target Corp. each released their respective sales, promotions and marketing plans for the upcoming holiday as they look to the shopping season’s kickoff on Black Friday. Menomonee Falls, Wis.based Kohl’s is launching its 2010 integrated holiday campaign emphasizing “an unparalleled combination of even more incredible savings opportunities than last year,” the mid-tier department store chain said. Kohl’s “key messages” for the season will be “Give, Save and Be Merry,” “Give, Save and Enjoy Easy Shopping” and
“Give, Save and Save Again with the Kohl’s Charge” – all of which are set to be communicated across multiple mediums, including print advertising, direct mail, e-mail, digital and social media, Kohls.com, television, radio, in-store, “and – new for the holiday 2010 season – mobile access to Kohls.com,” the retailer said. The new Kohls.com Mobile allows customers to shop the store online using their mobile devices for the first time. “We expect that consumers will take a responsible, resourceful approach to their holiday gifting this year as the economic
environment remains uncertain,” said Kevin Mansell, Kohl’s chairman, president and ceo. Also for this holiday, Kohl’s said it will be offering more “Power Hour” and “Early Bird” shopping time frames versus last year, as well as a bevy of other new conveniences for shoppers. Cincinnati-based Macy’s is taking “a stepped-up approach to holiday shopping” this year, the department store said, with new gift-giving options such as Macy’s first-ever “Gift Shops” and “Celebrity Gift Shops” as well as the new International Gifting Center, “featuring SEE BLACK FRIDAY PAGE 23
Springs signs Nate Berkus for soft and hard home NEW YORK – Springs Global US
added yet another license to its expanding brand portfolio and will debut a collection from designer and talk show host Nate Berkus in spring 2012. The line will include bedding, bath, decorative accessories, dinnerware, lighting, area rugs, window, design solutions and furniture pieces. In recent months, Springs Global US signed similarly
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expansive agreements with designers Diane von Furstenberg and Espacio Sami Hayek as well as Waterworks for bed and bath. Price points will be “accessible,” according to Joe Granger, president of Springs Global US. “Nate represents a unique combination of a trusted design authority, a lifestyle brand and a solutions-based approach to home design. The line will be
comprehensive in scope and will communicate his wellknown lifestyle message effectively,” said Granger. Said Berkus: “In Springs Global, I’ve found a team that mirrors my passion and commitment to making well-thought out products at an affordable price... and, the fact that they can look at pair of vintage cuff links I’ve found and see my vision for them as a frame is thrilling.” HTT
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Creative Bath Products Founder Mat Meinzinger Passes UPPER BROOKVILLE, N.Y.– Mathias “Mat” Meinzinger, president, ceo
and founder of longtime bath coordinates and housewares manufacturer Creative Bath Products, died Oct. 31 after a 10-month battle with pancreatic cancer. He was 74. Originally from Hungary, Meinzinger moved to the United States in 1956. In 1973, he and his business partner, Guenther Bartsch, opened Creative Bath Products with only $10,000 and two employees. On the company’s website, Meinzinger is quoted as having said that in the company’s first year, “sales were only $40,000, and I wondered if I would survive.” Today the company, which is headquartered in Central Islip, N.Y., in a 750,000-squarefoot facility, and has a staff of 500, generated $53 million in bath accessory sales and $32 million in shower curtain sales in 2009, ranking it in the second and fourth largest supplier in those categories, respectively, in the U.S. home textiles industry. In his free time, Meinzinger enjoyed breeding and racing horses, and was an avid tennis player. “Mat lived a remarkable and fulfilling life and will remain an inspiration to all who had the privilege to know him,” said Bob Weiss, who was recently named president of the company. “Mat brightened our lives, a man whose goodness, generosity and kindness will stay in our hearts and minds forever. He never, ever took anything for granted and always tried, as he put it, to ‘do the right thing.’” Meinzinger is survived by his wife of 52 years, Christa; his brother Joseph; sisters Theresa Baumann and Veronica Penka; and many nieces and nephews. In lieu of flowers, donations can be made to the Lustgarden Foundation for the research of Pancreatic Cancer, 1111 Stewart Avenue, Bethpage, NY 11714. HTT
News
Industry Players Form Group to Push RFID L AWRENC EVILLE , N.J. — Several trade associations representing retailers, manufacturers and technology companies have banded together to guide the adoption of radio frequency identification (RFID) technology in retail. The advisory board for the Item Level RFID Initiative includes executives from Walmart, Kohl’s, Macy’s, Li & Fung and Dillards, among others. Participating associations include NRF (National Retail Federation), RILA (Retail Industry Leaders Association), VICS (Voluntary Interindustry Commerce Solutions), AAFA (American Apparel & Footwear Association), and CSCMP (Council
Retail Federation’s 100th annual convention will take place in New York in January with leading speakers to include Macy’s chairman, president and ceo Terry Lundren, Mark Zandi, chief economist and co-founder of Moody’s Economy.com, and Mindy Grossman, CEO of HSN, Inc. The three-day event will take place at the Javits Convention Center beginning Jan. 9. Super sessions will include: • The Rise of the Individual: Understand and Respond to Smarter Consumers’ Wants and
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Needs: Jan. 9, 1:45 p.m. – 2:45 p.m. Dan Heath, co-author of “Switch: How to Change Things When Change is Hard,” and Jill Puleri, Worldwide Retail, IBM Global Business, will discuss how retailers can predict what smarter consumers will want and quickly change direction accordingly. • Retail’s Road to Recovery: Status Report on the Global Economy: Jan. 10, 8:30 a.m. – 9:30 a.m. Mark Greene, ceo of FICO, will moderate a panel that will examine the state of the global economic recovery and its impact on the retail busi-
of Supply Chain Management Professionals) as well as the standards organizations GS1 Canada and GS1 US. “This initiative could change the way the retail industry does business – and could lead to the biggest supply-chain transformation since the introduction of the bar code,” said Joseph Andraski, president ceo of VICS. The effort will first focus on the apparel category. “We believe it is time for the industry to come together to advance the use of this technology throughout the retail supply chain,” said Peter Longo, president of Macy’s logistics and operations. According to research done by the University of Arkansas,
RIFD technology offers inventory accuracy rates of more than 95%, up from an average of 62%, can count 5,000 items per hours (vs. 200 per hour using barcodes) and reduces out-ofstocks up to 50%. The group will develop guidelines and standards to support the rollout of RFID. “The retail sector stands on the brink of a key technology shift, and members of the Item Level RFID Initiative believe that now is the time for the entire industry to move toward a more efficient system for manufacturing, supplying, selling and buying products,” said Art Smith, ceo, GS1 Canada. More information is available at vics.org/ILRI. HTT
Julia B Launches Luxury Line with Vintage Looks STAMFORD, CONN. — Handmade
luxury linen house Julia B is launching a new line of vintageinspired bedding using high-end color linens from Ireland. The new program spans 11 vintage-inspired designs, each one customizable with 23 vibrant color choices. “We are excited to be part of a new generation of entrepreneurial companies that could not have existed a few short years ago, creating new and important possibilities” said designer Julia Low.
Macy’s Lundgren Among NRF Headliners WASHINGTON — The National
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ness as well as the potential consequences for retailers of a valued-added tax. Panelists include Claudio Del Vecchio, chairman and ceo, Retail Brand Alliance (parent of Brooks Brothers), and Mark Zandi, chief economist and co-founder, Moody’s Economy.com. • Consumer 2020: What Lies Ahead for the Retail Industry?: Jan. 10, 9:45 a.m. – 10:45 a.m. Allison Paul, Deloitte’s vice chairman and U.S. retail leader, will moderate a panel discussion about major demographic, technological and business trends the industry will need to adjust
“Our new range exemplifies the high quality and style accessible through the important partnerships we have established.” Other customization options offered for the program includes fine embroidery and monogramming this available through Julie B’s “strong relationships with women-led businesses in Vietnam and Madagascar, renowned for producing the finest craftsmanship in the world,” the company noted. Customers can order up to three-letter
monogram choices, along with a multitude of different color threads. Establishing the company in 2008, Low set-out to create relationships with suppliers around the world who shared her “vision and commitment to empowering women through global entrepreneurship,” she said. This approach, she added, allows her to offer an exclusive line of custom linen products “with clean designs and exquisite quality at an accessible price.” HTT
to in the coming years. Panelists include Cathy Green,president, Food Lion Family (Food Lion, Bloom, Harveys & Reids); Ira Kalish, global director, Deloitte Research; and Peter Sachse, cmo, chairman and ceo, Macys.com. • The Magic of the Disney Store: Jan. 11, 9:45 a.m. – 10:45 a.m. Duncan Angove, gm and senior vp, Global Business Unit, Oracle; and Stephen Finney, Senior Vice President, Global Retail, Operations, Disney Store, will review how Disney builds a comprehensive brand experience. • The Future is Big, the Future is Now: Jan. 12, 9:45 a.m. – 10:45 a.m. Macy’s Lundgren
will conduct a panel discussion about key turning points in the industry and predict the new ideas that will shape the industry. Panelists include Ben Fischman, ceo, Retail Convergence (Rue La La and Smartbargains.com); Mindy Grossman, ceo, HSNi.; and Bobbie Lenga, managing director, Global Consumer Sector leader, Russell Reynolds Associates. In addition, the NRF convention and expo will feature concurrent sessions on store design, merchandising, information technology, supply chain, sustainability, digital retailing and many more areas of retail. For more information, visit www.nrf.com. HTT
11/3/2010 10:33:39 AM
January 12 – 15, 2011 Frankfurt, Germany
guided by creativity The perfect combination of inspiration, creativity and business is just what you’ll find at Heimtextil, the leading international trade show for textile interior design. Benefit from the latest collections of exhibitors from all over the world. Use the innovations, trends and valuable contacts at the show to improve your business success. Be a part of the global community. We look forward to seeing you. For more information, visit: www.heimtextil.messefrankfurt.com info@usa.messefrankfurt.com Tel. 770.984.8016
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Big Lots 3Q sales, comps inch upward C O L U M B U S , O H I O – Big Lots
Inc.’s third quarter net sales and comparable store sales rose somewhat in the third quarter Net sales increased 2.4% to $1,039.7 million compared to $1,015.6 million for the third quarter, ended October 30. Comparable store sales for stores open at least two years at the beginning of the fiscal year increased 0.7%. Year-to-date results proved better, with retail sales totaling $3,393.5 million, a 5.5% increase versus $3,216.2 million last year. And comparable store sales increased 3.6% for the period. “While sales results were solid during the first half of the quarter, we began to experience more volatile and inconsistent sales trends in late September lasting through October,” said
Steve Fishman, chairman, ceo and president of the 1,389-unit closeout chain in 48 states. “Our customers were very selective but were still willing to spend money where they saw tremendous values as evidenced by the continued strength in certain of our higher ticket, discretionary categories.” Fishman added that from a merchandising perspective, furniture and home “continued to be leading categories in our store, with furniture in particular comping up in the low double digits.” Big Lots is also “encouraged” by the high-single digit comps it churned in its seasonal category and the early performance of its holiday toy business, “as each of these strategies are critical components of our fourth quarter holiday plans.” HTT
Gordman’s appoints Kasen and Shea to board O M A H A – Apparel and home décor retailer Gordmans Stores Inc. has appointed Stewart Kasen and James Shea to the company’s board of directors, effective November 3. Kasen is also joining Gordman’s audit committee. He was formerly president and ceo of menswear retail chain S&K Famous Brands Inc. from 2002 through his retirement in 2007. Prior to that, Kasen served as ceo of several retail organizations, including: department stores Thalhimers and Emporium-Capwell; Best Products Co. Inc., a catalog showroom; Factory Card Outlet, a chain of greeting cards and party goods; and Schwarzschilds, a fine Jewelry chain. Kasen currently serves on two public company boards -Markel Corp., a property and casualty insurance company; and Ret ail Holdings NV, a retailer of consumer durables in Southeast Asia. In the past, he has also served on a number of public boards including Lenox Group Inc., Elder-Beer-
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man, O’Sullivan Industries and K2. Shea recently retired from AutoZone, where he was evp of merchandising, marketing and supply chain. Prior to that, he co-founded Portero, an Internet retailer of luxury goods. Between 1999 and 2003, he was ceo and a director of Party City. Shea has also held management positions with various retail and consumer companies, including: Lechters Housewares, May Department Stores, Target Corporation, Eddie Bauer and General Mills. “Stewart’s distinguished retail career has been highlighted by his appointment as chief executive officer of several companies, both public and private,” Jeff Gordman, president and ceo. “Similarly, [Shea] has held key senior management positions with a number of companies in the industry. We are confident that their leadership capabilities and broad range of experience will be invaluable as we continue to expand our national footprint.” HTT
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In Detail: Bath BATH FROM PAGE 1
now starting, and we are trying to figure out how to cope with it.” He said that as a result, “there is no question” rug prices are going up, too. “The cost of making rugs and the cost of selling them is going up.” Like his competitors, Maples expects “tremendous resistance” from retailers to price increases. But, he warned, “It has to happen because this is too much. The manufacturers just cannot absorb this much.” Mohawk Home’s Bart Hill, general manager, shares Maples’ concerns. “The natural rubber component of our latex backing is at an all-time high, and I’m talking big time increases,” he said. While cotton comprises about 20% of Mohawk Home’s bath rug business, “all of our bath rugs have latex. The backing piece has affected us more than the fiber piece. And that is what is really going to be impactful to us at the end of this year and next year.” Cotton, however, comprises the bulk of the business, if not all, for many other bath companies that produce towels, like Loftex, Revere Mills, Trident and Espalma by Cobra – all of whom offered HTT their respective concerns and estimations of how the cotton shortage and resulting skyrocketing prices for it will affect business. Loftex USA is in a “wait-andsee” mode, struggling to aptly quote customers with the right price for product. “The cost of cotton is the highest since I started in the business. We are on a waitand-see at the moment as it is becoming increasingly hard to quote on new programs with this constantly rising target,” said Gretchen Dale, coo. Making the hurdle harder to overcome, she said, is that it is “compounded by many other factors as well,” such as increased labor costs and rapidly escalating freight rates. “There are no clear answers as to when all this will level out, but we have to be a lot smarter in how we spec and construct goods with this burden heavy on our heads,” Dale continued. “I would love to tell you we have an answer, but we don’t.
It is more a wait-and-see at the moment.” John Vanden Berge, ceo of Des Plaines, Ill.-based Revere Mill International Group, also cited the disparity between daily price increases on cotton against lead times as a problem. “Cotton prices continue to rise with the market changing every day, so you think about the lead times we work with,” he said. “Between the time a customer decides to make a purchase and the time the order arrives, there are five to six months. If you think about when people were making their purchasing decisions six months ago and cotton prices today, it’s ridiculous.” Joanne Krakowski, the New York-based U.S. sales and marketing manager of Abhishek Industries LTD.: The Trident Group, said her company is
“The cost of cotton is the highest since I started in the business. We are on a wait-and-see at the moment as it is becoming increasingly hard to quote on new programs.” — GRETCHEN DALE, Loftex USA
“working with our customers by apprising them on the situation so that through partnership we both arrive at a win-win situation.” Additionally, Trident’s product development team is working on alternative product offerings “to the current products, and also are priced competitively,” she said, and the company is reexamining at its supply chain “to find opportunities for improvement.” Revere Mills International Group has been successful “most of the time, in different situations” in raising its prices to retailers, and “I would think everyone would have to be,” said Vanden Berge. But what has been harder is developing a bath towel that uses different blended yarns to reduce the cotton content and ultimately keep the price down. “The consumer would have
to accept a towel not made of cotton, and that is easier said than done,” he cautioned. “Towels are for the most part an allcotton product. And even if you put 10% or 20% of polyester in a towel, it still won’t alleviate the [price] problem.” Demand is the other concern bath towel companies need to consider, not only when competing against each other for cotton but especially when they have to fight for it against the apparel industry, Vanden Berge said. “We need to remember that apparel manufacturers are also affected by this cotton increase,” he said. “With jeans, t-shirts, [and] underwear, manufacturers have the ability, it appears, to turn to blended fabrics more easily than towel manufacturers like us because [blended fabrics] are accepted in the garment world. But at the same time, apparel requires the use of a lot more labor in the product, allowing apparel manufacturers to pay a little more for cotton. So guess where the cotton is going to go when it starts to become available?” Espalma by Cobra’s president and managing director, Kurt Hamburger, said “certain importers may have had a built up inventory and choose to sell that inventory at prices based upon their ownership.” He called this “short-term solutions.” He added that some retailers “are hunting for these bargains now but they will be shortly exhausted.” Ultimately, Hamburger said bath suppliers must raise prices modestly. Should customers “rebel,” he said, “we will do less volume but we will not go out of business by selling goods below cost.” Town and Country, which offers bath coordinate products in its mix, is also wrestling with higher raw material costs. Neil Mandell, chief merchandising officer, said the company still doesn’t know “how receptive retailers are [to the price increases] because we are still in ordering process.” But he does suspect retailers are looking at cutting back on orders in general – “they are not ordering as much as maybe they should have and instead are just covering themselves until hopefully the price of cotton comes down.” HTT
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A broad, strong brush swept across the paper and another Vera design began. From her canvas to your bath.
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Surya Releases Fall 2010 Catalog C A L H O U N , G A . — Surya Inc.
is releasing its new new “Fall 2010” product catalog to its retail customer base. The bi-annual catalog is delivered to all active customers twice each year at no cost, the company said. It features color-accurate images of the company’s more than 1,500 individual products.
For this fall’s edition, Surya is introducing a “Quick Ship Program” for the company’s top 200 rugs, which are guaranteed to be in stock in 5-by-8 and 8-by-11 sizes and can be shipped within 72 hours of a placed order. The catalog features several “Display and Sampling Programs” designed to help retail-
ers invest less in inventory and offer a wider range of products. In addition to more style and texture photos, rug specifications and details are listed with each individual rug, describing some of the elements and features that can’t be seen from a photograph, such as hand-carving, viscose accents, thickness,
and others. “We want to provide our customers with tools that actually help them increase sales on the retail floor,” said Satya Tiwari, president. “Our catalog has always been an effective instrument for our clients, but we feel we have taken our catalog to another level with this edition.” HTT
Feizy, Tracy Porter Debut “Vardo” DALLAS — Feizy and designer
Tracy Porter launched their joint collection, Vardo, at High Point Market last month. The Vardo collection comprises six designs, each available in multiple colorways. The pieces are hand knotted of premium hand-spun wool, and one has been antique-washed to soften the hand and slightly distress the look for an heirloom design quality. Transitional styling and accents of vibrant colors update the otherwise antique styling, making these rugs easily complement current upholstery trends, Feizy said. The company has added its Tracy Porter rugs to its Feizy Fine collection, as have the company’s own Dayuan and Kashgar collections, both of which are Tibetan hand-knotted groupings. To its Feizy Home collection, the company showed the new Waulee and Bamboo Lattice collections. HTT
Clariant Textile Unit Goes to Asia MUTTENZ, SWITZERLAND — Spe-
cialty chemical company Clariant is relocating the headquarters of its Textile Chemicals Business Unit to Singapore, putting it closer to the major textiles manufacturing countries. The move should be completed by mid 2011. The new headquarters will house the senior textile chemicals management was will as the global textile application technology group. The application development laborartory for technical textiles and finishing will be relocated to Muttenz along with the business unit’s 60-perosn European sales and marketing operations group. HTT Manhattan Properties.indd 1
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Lord and Taylor Celebrates Home Store Launch NEW YORK — Celebrating a major makeover of the store, including a new home floor, Lord & Taylor earlier this month unveiled its new look with a gala event that featured celebrities as well as a greeting from New York’s mayor Michael Bloomberg. The 21,000-square-foot ninth floor houses a complete Calvin Klein Home offering, including Collection, Studio and White Label as well as the total home collection of Lauren Ralph Lauren — all encompassing bed, bath, furniture, rugs, tabletop and gifts. HTT
Brendan Hoffman, left, Lord & Taylor’s ceo with Frank Guzzetta, president of Ralph Lauren Home, in the designer’s Lauren Ralph Lauren total home presentation.
The Calvin Klein Home rug collection is set on hanging racks in a living room vignette.
Steve Zaffos, left, and Bentley Hardwick, both Calvin Klein Home, with Brendan Hoffman, Lord & Taylor’s ceo in the Calvin Klein Home area dedicated to the brand’s complete home collection. A Calvin Klein Home dining room with tabletop and table linens dressing the furniture.
Above: A living room setting showcases a group of silver covered decorative pillows, all part of the Calvin Klein Home presentation.
At left: An overview of the Calvin Klein Home section with two beds leading back to several room vignettes.
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Registration Open for HFPA Annual Meeting NEW YORK — The Home Fash-
ion Products Association has set up online registration for its Nov. 16 annual meeting. The meeting will take place 7 W New York, located at 7 West 34th St. Registration is free for
HFPA members and $50 for non members. The site is homefashionproducts.com/2010_am.php A continental breakfast will take place from 9:00 a.m. to 9:30 a.m., followed by the meeting from 9:30 a.m. to 10:00 a.m.
Afterward, trend tracker Janine Finkle, vp of market intelligence for Design Research Reports, will present “Macro-Trends Affecting the Home Furnishings Market: Tracking Consumer Attitudes and Behavior.” HTT
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Karastan Loans World’s Fair Rug to Chicago Macy’s DALTON , GA . — Seventy-seven years since Karastan presented its multi-colored panel Kirman 791 at the Chicago World’s Fair, the company brought the rug back to Chicago at Macy’s on State Street. Earlier this month, attendees from the original World’s Fair
celebrated the grand reopening of the Macy’s Fine Rug Gallery in Chicago with a special ribbon-cutting event that had as its centerpiece the Kirman 791 Karastan rug. The original rug was on display at the department store through Oct. 24. It was in 1932 that Karastan first introduced its multicolor panel Kirman 791. The company said the rug’s “tree of life” pattern “symbolizes divine power and perpetual life in Persian design.” It was part of the Karastan Rug Collection and was labeled “The Wonder Rug of America.” The collection comprises power-loomed rugs made of worsted New Zealand wool, woven “through the back” and luster washed to simulate the handknotted look of the originals. To prove the lasting quality of its rugs, Karastan wear-tested its multicolor panel Kirman 791 at the 1933–34 Chicago World’s Fair. The rug was then taken to the Karastan mill in Eden, N.C., where only half of the rug was washed. “One side remained almost unrecognizable, while the washed portion returned the rug to its original beauty of 33 skein-dyed colors,” Karastan noted. HTT
Celebrating the return to the Windy City of the original Karastan Multicolor Panel Kirman 791 from the 1933 Chicago World’s Fair were Anne Poglitsch (Karastan sales rep), LaVerne Breisch (Poglitsch’s mother) and Kevin Welch (Midwest regional vice president for Karastan Rugs).
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11/3/2010 11:46:38 AM
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November 8, 2010
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WONZ Earns Award for Textile Development L ONDON — Wools of New Zea-
land has earned special recognition for its collaborative work in the development of WoJo – a sustainable textile developed for Starbucks. The award was presented last month on behalf of the 2010 Campaign for Wool, convened
by the HRH Prince of Wales and in association with The Society of British Interior Design (SBID). Development of WoJo was conceptualized by The Formary, a New Zealand-based design company charged with the challenge of converting Starbuck’s
jute coffee sacks into a sustainable fabric. HTT Steven Parsons, innovations manager; Elise Demboski, North American market manager; and David Hammond, European market manager, all of Wools of New Zealand
Statement of Policy Concerning Gifts and Other Items of Value
To our Valued Suppliers, We are taking this opportunity to restate our policy concerning gift-giving, not only during the forthcoming holiday season, but throughout the year. On any occasion, gifts, no matter how small or well-intentioned by the donor, are against our Company’s policy. Accordingly, for the mutual protection of those involved, we prohibit all of our Associates from accepting gifts, gratuities, payments, favors or other items of value. Gifts received by any Associates will be returned to the donor or donated to charitable organizations. Our Associates are also advised that any violation of this policy will be taken very seriously. We respectfully ask that you assist us in this matter by refraining from offering Associates gifts or items of value. Your kind cooperation with this policy will foster the continuation of fair business practices that favor our close working relationship. Thank you very much for your support. We wish you a happy holiday season and a prosperous New Year.
Bernard Cammarata Chairman of the Board
Carol Meyrowitz President & Chief Executive Officer
The Marmaxx Group/T.J.Maxx/Marshalls l HG Buying, Inc./HomeGoods l Winners Merchants International LP/Winners/HomeSense Concord Buying Group, Inc./AJWright l TK Maxx
770 Cochituate Road, Framingham, MA 01701 l www.tjx.com ©2010 The TJX Companies, Inc.
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FTA Seeks Stricter Rules for Green Claims W A SH INGTO N — The Federal Trade Commission plans to revise its “Green Guides” by clarifying what constitutes a valid claim – including use of product certifications, seals of approval, and claims that about renewable energy, renewable materials and carbon offsets. The government is seeking public comment on the proposed changes until Dec. 10. The proposed changes can be found at ftc.gov/green. “In recent years, businesses have increasingly used ‘green’ marketing to capture consumers’ attention and move Americans toward a more environmentally friendly future. But what companies think green claims mean and what consumers really understand are sometimes two different things,” said FTC chairman Jon Leibowitz. “The proposed updates to the Green Guides will help businesses better align their product claims with consumer expectations “Organic” claims made for textiles and other products derived from agricultural products are covered by the U.S. Department of Agriculture’s National Organic Program. One of the changes the FTC is considering would advise marketers who tout the use of “renewable materials” or “renewable energy” to provide specific information about the materials and type of energy used. The review also covers claims about recyclable products. HTT
10/11/2010 9:04:37 AM
11/3/2010 9:28:33 AM
START YOUR OWN
SOCIAL COMMUNITY Don’t get left behind. As the Home Furnishings Industry Leader we can help your company with a custom social media strategy and turn-key program. New to social networking? Lacking time and resources? We’ve got you covered!
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For more information, please contact Penny Schneck, Online Sales Manager 336.605.1084 | pschneck@sandowmedia.com
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November 8, 2010
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Ralph Lauren Home
RALPH FROM PAGE 1
inal store but its move across the street represents a doubling of retail selling space and the chance to show the line in an expanded setting. “Over 25 years ago, I stood on the corner of Madison and 72nd Street and watched the amazing restoration of the Rhinelander mansion,” said Ralph Lauren. “Today I stand on the opposite corner reveling once again in the elegant beauty of the new mansion. “It is the most romantic setting for all my women’s collections, accessories, fine jewelry and home.” The space allows for both lifestyle and classification presentations and for its opening last month, there were three groups on display, each elaborately vignetted and featuring Ralph Lauren bedding, furniture, lighting and decorative accessories. No Lauren Ralph Lauren product is included, that line being reserved for distribution through the traditional department store channel. Textiles, lighting and window hardware are shown in classification displays and there is also an extensive giftware department. The company is rolling out an expanded gift line, separate and apart from its Lauren licensed program through Fitz and Floyd. Included in the gift area are some one-of-a-kind vintage items as well. The entry to the home floor, either by elevator or a grand marble staircase, is a swing shop which for the opening had a mix of books, gifts and soft home, centered on a giant, life-size horse sculpture. This area will go to a holiday assortment later this month and will progress to other seasonal displays, although books will always be a central element. There is also a design center with work table, fabric and wall covering library and lighting and window hardware. Custom monogramming is also available. On the home floor as well as throughout the building, it’s the details that truly distinguish the new store. While most of the structure itself is new, replacing an
existing Ralph Lauren store that housed its Sport line, the company said “the exterior’s neo-classical French design is inspired by the architectural heritage of the Upper East Side” and indeed, the building looks like it has been there as long as its near-twin across the street. The new store does incorporate an existing town house that faced 72nd Street but it has been incorporated into the new structure in a largely seamless match. The limestone building is accented with beaux-arts detailing, including brackets, corbels, elaborate wall coverings and dramatic lighting throughout. There is even a second floor terrace overlooking Madison Avenue. The first floor of the new structure houses accessories, footwear and the first Ralph Lauren fine jewelry and watch department. The second and third floors are
reserved for the various women’s collections, including Black Label, Blue Label and RLX. There is also a madeto measure department, another first, and a VIP dressing room that is as large as a good-sized Manhattan onebedroom apartment. Virtually all of the furniture, wall and window coverings, lighting and wall art throughout the women’s areas are from the home collection. Across the street, the original store has been turned over totally to men’s, although it too does include a gift area with books, games and some one-of-a-kind finds including a $12,000 record turntable. Lauren himself describes the new building as the feminine counterpart to the original mansion. “It fulfills my dream of the ultimate experience for women in New York City.” HTT
Through the Years 1986 1967
1972
Ralph Lauren founds the company with a line of men’s ties. He names it Polo.
The polo player logo is used for the first time, on men’s shirts.
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The Rhinelander Mansion on Madison Avenue in New York opens as the company’s first flagship store.
2000 Polo.com debuts as an e-commerce and informational site.
1971
1983
1997
2010
The first women’s line debuts.
The Home Collection is launched with bed, bath and accessories. It will eventually be joined by furniture, tabletop, fabrics, paint and other home products.
Polo Ralph Lauren goes public.
The new women’s and home store opens opposite the original flagship in Madison Avenue.
11/4/2010 4:57:12 PM
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News
November 8, 2010
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Home Textiles Today
â&#x20AC;&#x153;The ultimate experience for women in New York City.â&#x20AC;? Home gets twice as much as space in the new store as it did in its previous location and uses it to show the collection in both lifestyle and classification presentations. Clockwise from upper left: One of three vignettes that incorporates the full breadth of Ralph Lauren home products including, bedding, furniture, lighting and wall coverings; Virtually all of the product on display is from the line and is shown in integrated presentations; Giftware makes a major statement in the new store, shown here with table linens.
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November 8, 2010
> hometextilestoday.com
PEOPLETodaY Int’l Textile Market Association Names New Officers H I G H P O I N T , N.C. — Robert
Patton, v/p of P/Kaufmann, has been named president of the International Textile Market Association (ITMA), producer of the semi-annual Showtime fabric shows and the ITMA Educational Foundation. Patton succeeds Steve Shelly of Classical Elements. New board
members are MacLane, American Silk Mills, Kiran Singh, Laura & Kiran, and Jeff Veach, Brentwood Textiles.. Continuing on the board are Ismail Arslan, DeLeo Textiles, Robert Lachow, J.B. Martin, Wesley Mancini, Wesley Mancini Ltd., Jesse Rector, The Leather Collection, Art Reilly, Van Latham USA,
and Robin Starnes, Covington Fabric & Design. Industry liaisons Jim Calhoun, Michael Thomas/Miles Talbott Furniture; Anne Hood, Century Furniture and Regina Payne, Taylor King Furniture continue to serve on the board as industry liaisons. The next Showtime will be Dec. 5 through 8. HTT
Ralph Lauren Home Vet Joins HL Group NEW YORK — Adrian Kahan has joined communications and marketing services firm HL Group as a vice president overseeing the home and design business. For the past 14 years, she has been with Ralph Lauren Home as the vp of marketing and com-
munications involved with building the brand’s luxury image. Prior that, Kahan worked as an interior designer with the firm of Peter Marino Architects focusing mainly on residential projects. Guillermo Zalamea, Partner at HL Group, said, “Adrian
Kahan is a highly respected professional of the home and interior design world, her experience will not only be invaluable to our current clients business, but it will also be integral in growing this important category within HL Group.” HTT
Marvin Smith, 81, Passes W ESTBURY, N.Y. — Longtime
industry salesman Marvin Smith passed away Oct. 12 of cardiac arrest during a procedure for throat cancer. He was 81. Smith spent 56 years in the home textiles industry, most of them in the New York show-
room building at 261 Fifth Ave. His career included posts at Atlas Hartley, Wilshire Curtain, and Beatrice. In 1991, he and his son Harlan Smith founded Smith & Sons Sales, Inc., also located at 261. He never retired.
In addition to Harlan Smith, he is survived by his other son, Alden Smith. Donations in his memory can be made to the Head and Neck Society at http://www.headandneckcancer.org/foundation/ pledgeform.pdf. HTT
OW/Sphinx Georgia rep, Bahamonde, Dies D A L T O N , G A . — Longtime
Sphinx By Oriental Weavers area rug sales representative, Hector Bahamonde, died October 24 of a heart attack. He was 60 years old. Bahamonde’s career in the industry spanned more than 30 years. His first job was working in sales for Jonny Graham at Monticello Carpet Mills. In 1995, Bahamonde became a salesperson for Sphinx, his last place of employment. Originally from New York, Bahamonde moved to the
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Atlanta area in the early 1980s to cover sales in the Georgia, Alabama and Northern Florida territories for several companies – among them, MER, Imperial Rugs, Mastercraft Imports, and Vantage Industries – before joining Sphinx. Bahamonde is survived by his wife, Diana Bahamonde, of Lawrenceville, Ga.; daughter Michelle Lisa Laureano and her husband, Louie, of New York; two sons, Hector Juan Bahamonde III and Aidan Charles Bahamonde, both of Lawrenceville; parents
Hector Juan and Haydee Bahamonde of Buford, S.C.; brother and sister-in-law George and Gladys Bahamonde and brothers Robert Bahamonde and Charles Bahamonde, all of New York; sisters and brothers-in-law Iris and Joe Perez of Florida and Sandi and Jeff Reddish of Buford, S.C., and sister Miriam Adams of Florida; and grandchildren Isabella and Nicholas Laureano. In lieu of flowers, the family requests memorials to the Family Trust Fund at any Wells Fargo Bank. HTT
Weiss Promoted at Creative Bath C E N T R A L I S L I P , N.Y. — Bob
Weiss has been promoted to president of Creative Bath. For the past five years, he has been vp of sales and marketing. Weiss said he will continue to focus on the framework of the company’s core businesses to
further enhance Creative’s competitiveness in the marketplace as an partner and supplier to its customers. Creative Bath is a domestic manufacturer and importer of bath, housewares and storage & organizational products. HTT
7 W Adds Kreider as Marketing Manager N EW YORK — Home textiles
industry showroom hub 7 W New York has appointed Jessica Kreider as its new marketing manager. Kreider, who joined in September, works closely with Su Hilty, vp of marketing, and is charged with helping drive the mart’s comprehensive marketing initiatives. “We found a truly great asset in Jessica,” Hilty said. “From the moment she joined us at 7 W, she hit the ground running. She had to, because we had the NY Gift & Home Textiles Market event in her
first month on staff.” Kreider brings a diverse career background that includes leadership, event planning, and relationship building roles. She has held positions at MSKCC and BNP Media as well as worked on high profile NYC events such as Fashion Week and The Tribeca Film Festival. While at BNP Media, she excelled in event logistics, IT and web design, and is credited with restructuring the marketing plans and objectives for more than 10 publications HTT
Baltic’s Neilinger Passes N EW YORK — Barry Neilinger, the longtime president of bedding and bath textiles company The Baltic Linen Co.’s retail division, passed away peacefully in his sleep on Oct. 23. He was 67 years old. Neilinger, a graduate of Penn State, began his career in textiles with the opening of his own children’s apparel company in Montreal, Quebec. He relocated in 1996 to New York to become Baltic’s president of the retail division, reporting to company owner Mark Lichter. Baltic also operates two other divisions for its textiles – hospitality and laundry. “He really has seen the company experience unprecedented growth,” the company told HTT.
“While he was in change, the company grew to sell its products to all levels of retail – from opening price point dollar stores to high-end department stores. He was able to tap into our hospitality division and tailor the product to serve our different retailer customers” Funeral services were held last week at Central Synagogue in New York. Neilinger is survived by: his wife of 47 years, Dorey Neilinger; his two sons and their spouses — Neil and Karen, and Brian and Sheila; and his twoyear-old grandson Kevin. In lieu of flowers, the family requests that donations be made to The Lupus Research Institute, 330 Seventh Ave., suite 1701, NY, NY 10001. HTT
11/3/2010 9:33:32 AM
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SHOULDN’T YOU BE ALL OVER THEM?
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November 8, 2010
BUSINESS TodaY Soft home a Bright Spot in MSLO’s Otherwise Lackluster 3Q BY CECILE B. CORRAL N E W YO R K — Sales of home
décor and home improvement product, in particular home textiles, helped Martha Stewart Living Omnimedia merchandising business deliver strong results in the third quarter even as the company’s overall results were lackluster. Robin Marino, MSLO president and ceo of merchandising, attributed her division’s favorable performance to the “continued expansion of our product line at The Home Depot, solid results for our Martha Stewart Collection at Macy’s, and our Martha Stewart crafts line.” She added the company also had a “very strong response to our Martha Stewart pets line at PetSmart stores and on petsmart. com.” MSLO’s merchandising revenue was up 7% to $9.6 million over the prior year’s $8.9 million, “with key partnerships across our Martha Stewart and Emeril brands demonstrating year-overyear sales increases in quarter,” she added. Merchandising’s operating income was $5.5 million for the third quarter, compared to $3.5 million last year. By comparison, MSLO revenues declined 0.2% to $49.7 million in the third quarter from $49.8 million in the yearago period. Showing improvement was the company’s third quarter operating loss, which was $(7.9) million compared to $(11.7) million for 2009’s third quarter. MSLO said this year’s third quarter benefited from both the smaller cash accrual and the absence of any non-cash bonus accrual, which was included in last year’s third quarter. Net loss per share was 16 cents versus a net loss per share of 22 cents for the third quarter of 2009. Marino offered color on the company’s various merchandis-
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ing activities over the quarter. “We’re feeling great with our home improvement line at The Home Depot,” which to date spans 14 product categories. A highlight “that has been very well-received by consumers” has been the Martha Stewart special-order carpet program, Marino noted, which launched in the third quarter and was supported by television and print media advertising. The collection comprises 36 nylon styles that come in a palette that matches directly with the brand’s paint line. The Martha Stewart pet line at PetSmart also launched in the third quarter. Shopper response has been “very positive” thus far, and the company plans to expand its product offering with several new items, including some for cats. Last month marked the third anniversary of the Martha Stewart Collection at Macy’s, “and we think there’s a lot to celebrate,” Marion said. “In a short period of time we’ve emerged as the No. 1 brand in the Macy’s Home Store,” she continued. “We had another solid performance in the third quarter, driven by sales of soft home textiles.” Another plus at Macy’s has been the performance of the lower price point Martha Stewart Essentials program, which “launched successfully in the quarter.” Martha Stewart Crafts also “performed well” in the quarter, due to expanded distribution, including shipments of seasonal Halloween products into Jo-Ann Stores, and Stewart’s appearance in July on the Home Shopping Network (HSN). “For the past five years, we have been focused on diversifying and expanding our merchandising business for long-term growth and we are seeing our efforts bear fruit in this quarter’s results,” said Charles Koppelman, executive chairman and principal executive officer. HTT
Tuesday Morning Sees Comp, Net Sales Gains in First Quarter BY CECILE B. CORRAL DALLAS — Business is looking up at closeout chain Tuesday Morning Corp., which experienced its fourth consecutive period of positive comp sales in the just-ended first quarter thanks to traffic improvements, as well as better net sales with modest increases. “This top-ine improvement, driven by a steady increase in traffic, demonstrates that Tuesday Morning continues to resonate with both new and existing customers,” explained Michael Marchetti, evp, coo, during the quarterly webcast for the 840unit chain. “Our value proposition is intact.” Net sales for the first quarter, ended Sept. 30, increased by 4.2% to $172.8 million compared to $165.9 million in the year-ago period. And comparable-store sales grew similarly, by 4.3%, comprised of a 6.1% increase in traffic offset by a 1.8% decrease in average ticket.
Net loss for the quarter also showed improvement at $2.6 million, or a 6 cent loss per diluted share, compared to a net loss of $4.7 million, or an 11 cent loss per diluted share, for the same period last year. Marchetti noted other quarterly gains, such as Tuesday Morning’s balance sheet, which “has remained strong. We ended the quarter with $4 million on a revolver versus $5.3 million on Sept. 30, 2009. The first quarter is the only quarter end that we expect to have a balance on our credit facility as we build inventory for the holiday season.” Tuesday Morning had $158.1 million available at the end of the quarter, and the chain will continue to focus on managing inventories “in response to customer demand as well as control expenses to maintain our solid balance sheet position,” Marchetti said. Inventory-wise, Tuesday Morning ended the first quarter with a 9.2% increase to $306.5
million compared with inventory of $280.7 million on Sept. 30, 2009. “This increase is due to the timing of merchandise receipts for the holiday season,” Marchetti explained. On the real estate front, the retailer expects to build up its store closings, relocations and new store openings to bring the total store count to approximately 870 units by fiscal yearend. In terms of store locations, the impact on the home furnishings sector from the housing and credit crisis “continues to affect us in certain regions of the country,” namely Florida, California, Nevada and Arizona, he continued. On the flip side, Texas “has been very strong,” as has the rest of the Southeast region. While Florida and California are “nowhere near to back to what they were prior to 2008,” Marchetti said, “they are not as weak as they were a couple of years ago. We’re seeing some leveling out there.” HTT
Welspun India Posts Profitable 2Q M U M B A I — Higher volumes
helped push Welspun India’s first half sales ahead by 17% to 10.2 billion Rs, or approximately $231 million US. With margins under pressure from higher raw material costs, the manufacturer reported earnings per share of 5.95 Rs, down about 42% from EPS of 10.26 in last year’s first fiscal half.
For the second quarter ended Sept. 30, sales rose 24% to 5.7 billion Rs, or approximately $129 million US. Earnings per share were 4.09 Rs compared to EPS of 5.71 Rs is the year-ago period. “In the U.S., the positive trend of growth continues, similar to the UK market, which has seem retail sales improvement,”
the company said in a release accompanying the numbers. Welspun India also noted that in addition to rising cotton prices, it is contending with higher crude oil and power prices. Going forward, the company said it will work on strengthening its hospitality business to boost profitability. HTT
Unifi Sees Net Income, Net Sales Climb in Q1 GREENSBORO, N.C. — Unifi Inc.,
a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials, reported strong growth in net income as well as a double-digit percentage increase in net sales in its first quarter. Net income for the quarter, which ended Sept. 26, was
$10.2 million or 17 cents per share, compared to $2.5 million or 4 cents per share for the prior year first quarter ended Sept. 27, 2009. And Unifi’s net sales for the period grew by 22% to $174 million versus $143 million in the year-ago quarter. “We are pleased to begin our 2011 fiscal year with a prof-
itable quarter, driven by the strong results of our underlying business,” said Bill Jasper, president and ceo. “Although uncertainty remains around consumer demand amid rising raw material prices, we are prepared to react quickly and are confident in our ability to recoup raw material cost increases we are experiencing. ” HTT
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Business
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September’s buoyancy sinks in October BY CECILE B. CORRAL N EW YORK – The glimmer of
light that shone in September, when all 13 of the key retailers tracked monthly by HTT posted positive comp results, turned dim in October as six reported declines. Each blamed unseasonably warm weather, especially in the back half of the month. The two biggest comp losers,
dar compared to the prior year, “which accelerated sales into the early months of the quarter.” Warmer-than-normal weather was also to blame. By product category, home textiles along with ladies’ special sizes and casual sportswear experienced weakness in the month. The Bon-Ton Stores, based in York, Pa., also attributed its declines to the weather.
10.0% 8.5% 7.0%
October Same-Store Sales Johnson Redbook Index
1.6%
OCTOBER SALES FOR KEY RETAILERS Five weeks ended October 30 a (dollar amounts in millions) a BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. c d Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
5.5%
2.5% 1.0% -0.5% -2.0% -3.5% -5.0% OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Source: Johnson Redbook Retail Sales Average, a unit of Instinet, a Reuters company.
Stein Mart with a 6.5% decline and Stein Mart at -4.2% for the four-week period, posted deeper losses than the list’s biggest comp winner, Costco, which reported a 4.0% comp club increase for the month. Only one retailer – TJX Cos. – came in with flat comps in October, hitting the high-end of its expectations, said Carol Meyrowitz, president and ceo. “I am particularly pleased as October was one of the warmest in recent history, which was not conducive to shopping for cold weather apparel,” she said. Encouraged by this performance, TJX now expects earnings per share for the quarter to be at the high end of its projected range of 89 cents to 91 cents. “We are in a great position to make the right buys and flow the right merchandise into our stores throughout the holiday season and continue to see opportunities to drive sales and margins in the fourth quarter,” Meyrowitz added. Jacksonville, Fla.-based Stein Mart, which operates 263 units, said its sales performance in October was impacted by changes in the promotional calen-
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WINNERS Same-store sales % change
WINNERS Costco Wholesale Corp. Ross Stores BJ’s Wholesale Club Macy’s Inc. Target Corp. Fred’s Inc.
4.0% 4.0% 3.7% 2.5% 1.7% 1.2%
LOSERS Stein Mart Inc. The Bon-Ton Stores Inc. Duckwall-Alco Kohl’s Corp. J.C.Penney Dillard’s Inc.
(6.5)% (4.2%) (3.7)% (2.5)% (1.9)% (1.0)%
“Unseasonably warm weather in the month pressured demand for cold-weather merchandise; the weak performance of these categories resulted in the sales decrease for the month,” said Tony Buccina, vice chairman and president – merchandising, of the 277-unit chain. “By contrast, we experienced sales increases in dresses, shoes, cosmetics and better missy and better men’s sportswear. We are excited about the upcoming holiday shopping season; our inventories are fresh with outstanding new offerings and clearance 9%
2009 SALES
$812.7 $214.2 $6,300.0 $356.1 $34.4 $131.1 $1,270.0 $1,260.0 $1,807.0 $600.0 $85.5 $4,641.0 $1,800.0
$764.7 $224.0 $5,690.0 $361.7 $34.9 $127.9 $1,313.0 $1,273.0 $1,693.0 $557.0 $92.2 $4,541.0 $1,700.0
TOTAL % CHG.
SAME-STORE % CHG.
6.3 (4.4) 11.0 (2.0) (1.7) 3.0 (3.3) (1.0) 6.8 8.0 (7.2) 2.2 5.0
3.7 (4.2) 4.0 (1.0) (3.7) 1.2 (1.9) (2.5) 2.5 4.0 (6.5) 1.7 0.0
TOTAL % CHG.
SAME-STORE % CHG.
8.6 0.7 10.0 0.0 (2.9) 3.0 0.4 7.4 7.0 10.0 (3.7) 4.1 9.0
4.8 0.9 3.0 1.0 (4.2) 2.1 1.5 4.4 4.7 6.0 (2.0) 2.0 4.0
39 WEEKS
2010 year-over-year
4.0%
2010 SALES
BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. e Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
2010 SALES
2009 SALES
$7,840.0 $1,970.5 $13,810.0 $4,105.6 $335.8 $1,356.0 $12,056.0 $12,353.0 $16,735.0 $5,721.0 $844.8 $45,509.0 $15,600.0
$7,220.0 $1,957.7 $12,530.0 $4,095.4 $346.0 $1,315.0 $12,006.0 $11,496.0 $15,640.0 $5,204.0 $877.3 $43,717.0 $14,300.0
a. Reporting periods vary from chain to chain. b. Excluding gasoline, merchandise comparable club sales increased 2.2% for the four-week period. Year to date merchandise comparable club sales excluding gasoline increased 2.8%. c. Total sales results include sales fromthe company’s Mexico joint venture. d. Comp club results are for the U.S. division. Excluding the positive impacts of inflation in gasoline prices and strengthening foreign currencies, comparable club sales for the month were up 3% in
below the prior year period.” Of the six retailers with comp declines, Little Rock, Ark.-based Dillard’s had the least with a 1.0% loss. But its home business – including furniture – was among the mostly poorly performing areas of the store. Taking a sharp turn from September, when they were among the higher comp gainers, were Kohl’s and JCPenney with -2.5% and -1.9% comp declines, respectively, in October. Kohl’s did better in the second half of the month, but not enough to offset the harsh warm-weather impacts to the first two weeks. Kevin Mansell, chairman, president and ceo, noted Kohl’s footwear business “again reported the strongest comparable store sales” and its e-commerce business “continues to report strong growth.” JCP’s sales of “non-weather sensitive merchandise,” such
the U.S. division, 10% in the international division, and 5% for the total company. e. Because it is on a different fiscal calendar than most of the other key retailers on this list, Costco’s year-to-date sales and comp results reflect the past nine-week period. Excluding the positive impact of inflation in gasoline and strengthening foreign currencies, comparable club sales were up 2% in the U.S., 10% in the International division, and 4% for the total company for the nineweek period.
as fashion jewelry, luggage and housewares as well as beauty products through Sephora, “continued their positive sales trend for the month.” Overall, shoes and men’s apparel were the top performing divisions, and sales of the recently installed Liz Claiborne merchandise “continue to perform very well, ahead of expectations, attracting new customers to JCPenney,” the 1,100-unit plus mid-tier department store said. Warehouse clubs Costco and BJ’s lead the winner’s pack along with off-price chain Ross Stores. At Natick, Mass.-based BJ’s, sales of food drove the performance with 5% category sales increases versus sales of general merchandise, which decreased about 3% for the month. Home was one of two top-performing merchandise categories at Pleasanton, Calif.-based Ross Stores, where overall sales of
$600 million for October were ahead of expectations of flat to up 1.0%, said Michael Balmuth, vice chairman and ceo. Another surprise – Florida was the best performing market for Ross in the month. Balmuth added that based on better-than-expected sales and margins in October, the 990-unit Ross and 67-unit dd’s Discounts retailer now estimates earnings per share for the 13 weeks ended Oct. 30 will increase 20% to 21%, to $1.01 to $1.02, from last year’s 94 cents per share. “While we experienced some softness in sales early in October given the unseasonably warm weather, we ended the month with a strong trend going into the holiday selling season,” said Terry Lundgren, chairman, president and ceo of Cincinnati-based Macy’s Inc., which enjoyed a 2.5% comp gain following its September 4.8% increase. HTT
11/4/2010 3:47:07 PM
Business
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HSNi Net Sales Climb 10% as Cornerstone, HSN Strengthen ST. P ETERSBURG , FLA . — Sales
grew but profits fell at HSNi during its third quarter. Net income fell 10% to $14.9 million. Sales for the period ended Sept. 30 rose 10% to $708.4 million. By segment, sales increases in the quarter were strongest at Cornerstone, up 23% to $214.7 million - “the largest year-overyear growth rate of any quarter since 2005,” said Mindy Grossman, HSNi ceo. Internet sales represented 56.9% of sales. “We undertook key strategic initiatives this quarter that were focused on customer engagement by creating contentimmersive experiences and
leveraging our unique multichannel platform,” she explained. Cornestone’s sales growth was attributable, the company said, to “an increase in demand for luxury and outdoor products, the execution of strategic merchandising and marketing initiatives and an investment in catalog circulation in Cornerstone’s three largest brands -- Frontgate, Ballard Designs and Garnet Hill.” The return rate increased to 15.9% from 14.2% primarily due to a $2.5 million sales provision recorded for the voluntary product recall. Sales also increased at HSN
Home Textiles Today
November 8, 2010
but more modestly — by 6% — to $493.7 million, including a 10% sales growth at HSN.com, representing 30.9% of HSN’s net sales, up from 29.8% in the prior year. Units shipped and average price point increased 3% and 2%, respectively. Also during the quarter, HSN also enjoyed “best customer growth” of 9%, due primarily to strength in apparel, accessories and electronics as well as the addition of new brand partners and marketing initiatives, Grossman said. Year-to-date, net income soared by 73% to $57.236 million on a 9% sales increase to $2.08 billion. HTT
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Same-store sales
October Ends with Comp Gains Johnson Redbook Index Fourth week of October, year-over-year % change WEEK ENDED
Department stores* Discounters Redbook Index
10/9
10/16
10/23
1.7 3.0 2.5
1.9 3.1 2.7
1.9 3.2 2.8
10/30
1.7 2.8 2.5
MONTH
1.8 3.0 2.6
TARGET
1.8 3.2 2.7
*Including chain stores and traditional department stores Source: Johnson Redbook Index
NEW YORK — Same-store sales during the final week of October mostly hit their mark, according to the Johnson Redbook. The Johnson Redbook Index for the week ended Oct. 30 was up 2.5%, with discounter comps rising 2.8% and department store comps up 1.7%. Comps for the month of October were up 2.6% yearover-year and up 0.2% over September. “Halloween business was on target according to most retailers, boosting volume at those stores which cater to it but also keeping shoppers away from
stores which don’t,” said Catlin Levis, Redbook analyst. Since Halloween fell one day later this year and on a Sunday – Redbook’s weekly calendar ends on Saturdays – some related sales will be shifted to this week, she noted. “Meanwhile, holiday merchandise is beginning to be displayed in stores as retailers are promoting earlier than usual,” said Levis. Redbook’s preliminary target for November is for 2.8% year-over-year same-store growth, generating a monthto-month gain of 0.2% versus October. HTT
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Home Textiles Today
November 8, 2010
OPINIONTodaY The Time of the Tough Comparisons Bears Down on Some Retail Results If the monthly comps sales reported last week for October weren’t dazzling, bear this in mind: October 2009 was one of only three months during which the over comp was positive during the first 10 months of the year.
S
everal of last year’s high fliers are bumping up debt…or maybe they’re conserving cash against the posagainst devilishly tough comps now. Last month, sibility of job loss. TJX reported flat comps (and that was at the high The America’s Research Group/UBS Consumer Mind end of its expectations), but in October 2009, Reader Survey released earlier this fall found only 14.8% TJX’s comps were up handsomely, +10%. Home comps of consumers consider their bills and debts to be a big at TJMaxx/Marshall’s were up 14%, and the HomeGoods problem, down from 23.3% going into the fall in 2009. chain rang up an 18% comp gain. Those are tough numHowever, close to half the 1,000 consumers surveyed bers to beat at a time when consumers are being said they were worse off than last year, and Amervery careful with their money. ica’s Research Group said it had seen the weakA year ago, the numbers were so encouragest rating in more than 20 years for planned puring that TJX, Ross Stores, JCPenney and Jo-Ann chases of $1,000 or more. Stores all raised their profit forecasts. Despite EDITOR-IN-CHIEF ARG’s outlook for the holiday season: “dissmaller gains last month, TJX and Ross both mal.” But it must be noted ARG tends to foreraised their earnings outlook. cast conservatively. Last year, it adjusted its iniLast year, the talk was about consumers tial projection upward to a sales decline of 1.2%. shifting their priorities to pay down debt. They Holiday sales actually grew (barely) by 0.4%. still are, according to a recent report from the The National Retail Federal is forecasting a Capital Access Network, but at a slower pace. 2.3% growth in holiday sales in 2010. Last year, For the third quarter of 2010, consumers reNRF predicted a 1.0% decline. duced credit card spending at brick-and-mortar So we shall soon see. Will Christmas be scarretailers, service providers and restaurants by 5.06% -- a ier than Halloween? Or will consumers be enticed by far cry form the 14.8% drop in the third quarter of 2009. all the promotions to dig a little deeper than they had Maybe consumers feel they’re getting a handle on their planned? HTT
Jennifer Marks
Off to An Early Start By Election Day the promotional hysteria reached what might be expected to be termed peak.
B
lack Friday has already arrived. In some cases it Macy’s, it appears, will drop five million catalogs – but arrived quietly, in others it was a mighty roar. But with variables of 30,000 versions of product. This in addinonetheless, it got here much earlier than any- tion to its weekly newspaper inserts that promote the stores one really anticipated. across the country in every department. Walking through a number of stores in mid-October, At the same time, JCPenney has unleashed its promoalready there were signs of an early Christmas tional might in a similar vein. Its promotion– even as Halloween was still the focus on the al blitz is getting more and more intense. Last floors. Who, with the weather in the 80s in New week’s event called the sale “the biggest sale of York, even was thinking about Christmas, boots them all” with store hours from, 7 am to 11 pm FOUNDING or down comforters? – and the tag line “it’s all on sale.” Forward a few weeks and the newspapers EDITOR-IN-CHIEF These are just two examples of the myriad are full of heavy duty promotions for store-wide events – including viral activities – a growing sales. In most cases, these were massive boxes of item after new way of communicating with the contemporary conitem after item across the store that had no more identity sumer. But the issue is – does this consumer really care for a consumer than one could imagine. about store-wide blockbuster sales – or is the quest for By Election Day the promotional hysteria reached what something more specific to her needs and budget? might be expected to be termed “peak” – but as things later It’s an issue still under debate – and probably will not emerged, the Election Day events merely were a drop in be resolved for years to come. HTT the promotional bucket.
Carole Sloan
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360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 375 South End Avenue #32U New York, N.Y. 10280 (212) 945-9151 | jnegley@hometextilestoday.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 16 E. 96th St., New York, NY 10128 Tel: (212) 831-8266 | Fax: (212) 831-0814 PRODUCT EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com COPY EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com ASSOCIATE PUBLISHER Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 nancy@oceaniamedia.net MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | kj_reeds@yahoo.co.in ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com VP, PUBLISHING DIRECTOR Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com
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THE WEEKLY BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 30 times a year except for the weeks of 1/18, 2/1, 2/15, 3/15, 3/29, 4/5, 4/19, 5/3, 5/17, 5/31, 6/14, 6/28, 7/5, 8/2, 8/23, 8/30, 9/20, 10/4, 10/18, 11/1, 11/15, 11/29, 12/13 and 12/27 plus extra issues 1/26 and 11/22, by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2010 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail and $525.00 for airmail. All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405. HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. (Posted under Canadian International Publication Agreement No.4202803. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; Box 697 STN A, Windsor Ontario N9A 6N4. Printed in the USA.
11/4/2010 5:09:27 PM
November 8, 2010
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Textiles of the Rich and Famous “With the opening of these two new very important stores, the rules have been changed in the upstairs market.”
I
F T H E HIGH-EN D, better goods portion of the home textiles market is dead, apparently Ralph Lauren and Lord & Taylor didn’t get the memo. PUBLISHER/ Each has opened a new, drop-dead gorEDITORIAL DIRECTOR geous home department at its New York City flagship and they represent the state of the art when it comes to merchandising presentation in the business. But that’s not all. With the opening of these two new very important stores, the rules have been changed in the upstairs market and we are likely to see reverberations up and down the food chain for some time to come. The Lord & Taylor move, remaking the ninth floor of its former dowager-like store into a home floor, is probably the more surprising of the two moves. L&T got out of the home business some 20 years ago and in the interim turned into a May Co. clone that was neither here nor there … and looked it. Under former president Jane Elfers the store began to un-May itself, proving there was life after the matrix. She wasn’t kept around long enough to see the process through but the store – at least the flagship anyway – is being reawoken and the new home floor is part of that. It sports twin Lauren Ralph Lauren and Calvin Klein departments that both compliment and complement each other, breaking down the department in department stores to show largely integrated merchandising assortments in room vignettes and, in the case of Calvin, in a mock house format. They are not the greatest thing since sliced bread, but they are among the most well-done examples of the department store genre around. The new Ralph Lauren Home floor at the company’s justopened store across from its Rhinelander Mansion flagship is in a league by itself. This is Ralph Lauren as only Ralph Lauren can pull off. The marble budget alone would sink most retailers’ annual capital expenditures. The use of high-end materials to set the stage for the product is extraordinary and again the integration of classifications into unified lifestyles is something virtually nobody else could pull off. If you have not seen these two stores yet, get there fast. And when you do, you will probably have plenty of company. Not only will vendors be there – some were making the rounds on a recent day – but those suspicious looking groups of people in suits will no doubt be executives from Bloomingdale’s, Nordstrom’s, Saks and Neiman’s. For Bloomingdale’s, these two stores represent the first serious challenge the company has had on the island of Manhattan in a long, long time. And while Bloomies does as good a job with as bad a space for its home textiles floor at 59th Street, these two new stores raise the bar considerably. The store will need to react somehow, the only questions remains how. For the other three stores, it’s time to shift or get off the pot. They have been messing around with home for years, sticking this merchandising toe in that product on and off for years. As long as nobody else was doing it, they didn’t feel as if they were losing out to anybody else. Now they are. One of these stores is going to blink and that’s a good thing for the home textiles industry. New retail outlets exposing the product to the consumer are critical for the overall success of the industry. And how ironic is it that the retailer starting this process off – L&T – sounds awfully close to another of the industry’s game changers, the late, lamented LNT? HTT
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Warren Shoulberg
Sferra RL/SFERRA FROM PAGE 1
resort and spa. The line will also be available to the company’s own home stores, specialty stores, high-end department stores and e-commerce, according to the announcement. For this channel, the Sferra license also includes table linens. In the mid 1990s, Ralph Lauren introduced a two-tier merchandising structure which focused most of its attention – and business – on the Lauren brand,
Iconix ICONIX FROM PAGE 2
did note that the Fieldcrest brand “is doing well,” Cole said,” having recently signed a five-year contract renewal with Target, and Waverly launched in the third quarter a new disposable tablewear collection that is being sold throughout the mass market, including Walmart and Kroger stores. Shmidman said Iconix has high expectations for its recently acquired Peanuts brand. As the company continues to restructure it, there are many efforts in the works to build the brand nationally and internationally. The company is currently “exiting unprofitable businesses, such a certain third-party representation contracts, and therefore we expect the revenue for Peanuts worldwide to reach approximately $70 million by 2011. This number does not include any additional [direct to retailer]
Holiday BLACK FRIDAY FROM PAGE 2
presents with purpose.” In 400 Macy’s stores nationwide and on macys.com, new main floor “Gift Shops” will offer limited-edition gifts exclusive to Macy’s, including techie gadgets, apparel and accessories, pet accessories, beauty finds, and even “chic home goods.” “This holiday season we’ve acknowledged our customers’ need for grab-and-go shopping and taken the idea of gift giving to the next level with branded shops featuring trendy and affordable product in a range of categories and pre-packaged gifts,” said Martine Reardon, evp, marketing.
Home Textiles Today
23
which became the workhorse for the department store channel. Ralph Lauren branded textiles were essentially sold only in the company’s own stores, which have limited home assortments. So, this license represents an expansion of the company’s efforts in soft home. For Sferra, the arrangement is a coup for a company that has been probably the most consistently successful supplier to the high-end trade recently. Sferra, founded 120 years ago, has expanded under Paul Hooker, its president and principle, over the
past years, signing such licenses as Kelly Wearstler while developing its own 1891 brand. “The opportunity to work with such a world renowned leader of fashion and exceptional taste is a natural for Sferra,” said Hooker in announcing the deal. “We are thrilled to partner with Sferra,” said Frank Guzzetta, president of Ralph Lauren Home, “a world class company that has a genuine understanding of our brand and the luxury market.” Added Hooker, “Their customer is our customer.” HTT
or other initiatives in the works.” Iconix’s international business – which represents close to 20% of the company’s pro forma revenue -- remains a focus for Iconix. Among its many growth plans for this segment is a new office in Tokyo set to open its doors shortly. Also coming soon is a second brand for an international audience with Madonna, through MG Icon, “that we believe can be as big and exciting as Material Girl,” Cole said. “With 27 brands today that represent approximately $12 billion in annual global retail sales, we are the second largest consumer products licensing company in the world, and we remain committed to expanding and growing our portfolio of iconic brands through new categories, geographies and distributions,” Cole said. “As we look ahead to 2011, we feel confident about the overall strength of our existing brand portfolio and our ability to
acquire world class brands.” Encouraged by its recent successes, Iconix is raising its fullyear 2010 revenue guidance to $323million to $328 million from $305 million to $315 million as well as its 2010 non-GAAP diluted EPS guidance to $1.38 to $1.42 from $1.35 to $1.40 and its GAAP diluted EPS guidance to $1.26 to $1.30 from $1.23 to $1.28. The company also said it expects to continue to generate strong free cash flow for 2010 of approximately $150 million to $155 million. This guidance relates to the existing portfolio of brands only and does not include any additional acquisitions. Looking to 2011, Iconix offered revenue guidance of $340 million to $350 million, 2011 non-GAAP diluted EPS guidance of $1.53 to $1.58 and GAAP diluted EPS guidance of $1.40 to $1.45. The company estimates that free cash flow for 2011 will be approximately $160 million to $165 million. HTT
Minneapolis-based Target is holding a pre-Thanksgiving four-day sale which will include “deep discounts” on toys, electronics and other items. Coupons will be available in Target’s Nov. 21 weekly ad to provide even greater value on holiday gifts, entertaining items and food. On Target.com, the retailer will also host a one-day online event on Thanksgiving Day with online-only deals not available in the post-Thanksgiving two-day sale. Target.com is offering its largest free-shipping event ever – shoppers who spend $50 or more on Target.com from Nov. 21 to Dec. 11 will receive free shipping directly to their home on more than 800,000 items.
For after-Thanksgiving shoppers, Target will have a two-day sale Nov. 26 and 27. This event will comprise 11 more “doorbuster” deals than the prior year for a total of 25 bargains. Additionally, the two-day sale will feature savings on home, apparel, electronics, entertainment, toys and more. Shoppers who spend $100 or more before 10 a.m. on Black Friday will receive a $10 Target gift card toward future purchases. And for mobile shoppers, Target will make store maps available on Target.com two days before Black Friday to allow shoppers to prepare in advance their shopping trip with store navigation and doorbuster sites within the store. HTT
11/4/2010 3:50:18 PM
HTT March 9th Daily Supima.indd 1
3/1/2010 7:41:28 PM