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Tag: bebe

  • Global Brands to Sell US Licensing Businesses to Differential Brands

    Global Brands to Sell US Licensing Businesses to Differential Brands

    Global Brands Group is to sell a substantial part of its North American branded business to Differential Brands Group for US$1.38 billion.

    The move, announced at the release of its annual results yesterday, will allow it to cut debt, pay a modest special dividend to shareholders and free capital to grow “a more focused business”, the company said. It will also result in about half of its 7000 staff leaving the company.

    Global Brands Group is currently carrying about $1.1 billion of debt, much of it related to its 2014 spin-off from Li & Fung and subsequent listing.

    The assets to be transferred include licences for Disney, Star Wars, Calvin Klein, Under Armour, Tommy Hilfiger, Bebe, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Cole Haan, Kenneth Cole and the BCBG Max Azria label which it bought last year for $27.4 million after the company filed for bankruptcy.

    CEO Bruce Rockowitz said the sale was the outcome of a strategic review of the business.

    “We concluded that divesting the portion of our business that has a high present-day value, was the way to move forward. With this transaction, the group will be able to improve our balance sheet significantly and simplify our organisation, while focusing on the less established lines of business where we see high growth potential going forward.”

    Subject to shareholder approval, the deal will see Global Brands Group become “simpler, flatter and more nimble”.

    The company said that on the branded product side, the group’s European and Asian businesses will remain as before, while its US business will now focus on footwear and its remaining fashion business. Brand Management will continue to be managed on a global basis.

    “Looking ahead, we will continue to attract new licenses to our portfolio with a tighter and deeper focus on our businesses,” said Rockowitz. “At the same time, we will continue to improve the efficiency of our existing businesses, delivering synergies across our platforms. In addition, we have embarked on a significant cost reduction program across the organisation and we are committed to improving our cash flow via a combination of tighter working capital management, and even stronger cost discipline.”

    Revenue up but write-downs cost

    For the year to March 31, Global Brands Group increased its revenue by 3.4 per cent to $4.023 billion.

    However sales were impacted by Coach taking its footwear business in-house after their licence expired in June last year, and the cessation of the Quiksilver kids fashion licence when the company declared bankruptcy.

    Total margin increased from 28.5 per cent to 31.2 per cent, however operating costs increased by 37.3 per cent to $1.254 billion, driven largely by transition costs for new licenses in men’s and women’s fashion and additional operation expenses for running the new brands.

    The group also made one-off, non-cash adjustments in relation to impairments from the write-off of a receivable arising from a loan made by the company, and various intangible assets, which totalled $94 million.

    “In addition, taking into account this strategic divestment, the external market condition and business performance, the group performed an impairment test and recognised a non-cash goodwill impairment of $1.05 billion during the financial year,” the company said. That resulted in a net loss of $887 million for the year, however earnings before interest, taxes, depreciation and amortisation was steady at $379 million.

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  • Global Brands Group profit jumps high

    Global Brands Group profit jumps high

    Despite a slight revenue dip, Global Brands Group Holding has almost doubled its first-half operating profit.

    Its total margin continued its upward trajectory, increasing from 28.3 to 30.5 per cent, primarily because of sourcing optimisation.

    As a result of the increased total margin and lower running costs, operating profit for the period to the end of September increased by 94.1 per cent to US$80 million.

    However, revenue eased by 3.2 per cent year on year to $1.7 billion. The branded apparel, footwear and fashion accessories company says this was largely a result of a shift of retail buying to later in the year, as well as the anticipated end of the Quiksilver children’s fashion licence because of the company’s bankruptcy, and Coach taking its footwear business in-house following the expiration of its licence in June.

    “The global retail industry continues to experience a structural transformation, with consumers becoming progressively more powerful when it comes to defining their shopping experience,” says Global Brands CEO/vice-chairman Bruce Rockowitz. To meet ever-changing expectations, he says brands are increasingly looking to work with licensing partners such as Global Brands because of their product expertise, global platforms and multi-channel distribution networks.

    “The industry has seen a growing number of specialised brand investors continue to acquire brands, while looking to separate intellectual property (IP) ownership from brand operations.

    Global Brands has continued to benefit from this trend and has forged an increasing number of long-term licensing agreements with these IP owners.”

    During the reporting period, these notably included the BCBG and Bebe brands.

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  • Bebe to revive e-commerce through new Global Brands Group partnership

    Bebe to revive e-commerce through new Global Brands Group partnership

    Bebe Stores may have terminated its store leases this month, but the company is not totally out of commission. The retailer announced on Thursday that it is partnering with Global Brands Group to relaunch the Bebe e-commerce platform and its international brick-and-mortar stores.

    Global Brands has been a licensee of Bebe, alongside Bluestar Alliance, which forged a joint venture with Bebe in 2016. Bluestar Alliance CEO Joseph Gabbay said that Global Brands will focus on e-commerce while Bluestar will “continue to build out the wholesale and department store distribution for the Bebe brand,” as well as continue managing the brand.

    Gabbay added, “Our efforts will concentrate on an omni-channel distribution approach to service and expand the bebe customer, both domestically and internationally.”

    The agreement marks as the first initiative of Global Brands’ direction for Bebe’s e-commerce, direct-to-consumer divisions and international operations. Global Brands also appointed Nathan Jenden as Creative Director. The designer studied at Central Saint Martins and the Royal College of Art, served as an apprentice under John Galliano, served as Creative Director of DVF and operated his eponymous label.

    “Bebe is an iconic fashion brand with a loyal, global following,” said Sandra Campos, the recently appointed President of the Bebe division at Global Brands Group. “With Global Brands’ renowned expertise behind us, we see a tremendous opportunity to relaunch a new e-commerce platform that best reflects who our global customer is and how she shops.”

    The partnership between Bebe and Global Brands is very similar to a deal Global Brands made with BCBG and Marquee Brands in June. The company reached a deal with BCBG and Marquee Brands to acquire some rights of the BCBG and keep the company in business.

    New partnership deals with Bebe and BCBG are part of Global Brands’ new three-year plan that it announced in June designed for the company to achieve $5 billion in revenue by 2020.

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  • Takashimaya Vietnam opens doors

    Takashimaya Vietnam opens doors

    Three years after the Japanese luxury department store chain announced plans to enter Saigon, Takashimaya Vietnam opened its doors at the weekend.

    As the anchor tenant of  downtown Ho Chi Minh City’s Saigon Center, Takashimaya takes up a whole five floors making it by far the nation’s largest department store – and likely its most expensive.

    The first impression that the department store makes is its spacious interior. Concessions to brands have been arranged to leave unusually wide aisles – ensuring the store was comfortable even on its crowded grand opening day.

    Takashimaya Vietnam - interior

     The central atrium of the expanded Saigon Center featuring Takashimaya’s first Vietnam store.

    The first floor of Takashimaya houses the food maison, most of which is filled by Japanese F&B brands such as Minamoto Kitchoan, Gyumaru, Azabu Sabo, Yamazaki and Suizan. Some tea brands make their way into that space, including Vietnam’s own Phuc Long, Singapore’s TWG tea, and B Tea.

    Targeting the high class consumers in Saigon and Vietnam, Takashimaya has chosen carefully the brands to appear in their stores, including luxury brands coming to Vietnam the first time, complemented by the high level of customer service Takashimaya offers elsewhere in the world.

    Takashimaya Vietnam

    The second floor is exclusively for ladies with international fashion names such as Banana Republic, Bebe, Bonia, Braun Buffel; footwear from Clarks, Geox, Cole Haan; bags from Carlo Rino, Cromia; and Furla with its first flagship in Vietnam after years being distributed by Ha Vang company.

    The rest space is occupied by cosmetics brands, including Korean labels Skinfood, which marked the store’s opening with a special event ‘Makeup Style for Your Summer’.

    Takashimaya Vietnam - Skinfood

    “We offer free makeup and manicure for our customers for two days. Besides, when they buy our products, they will receive a gift set,” said Kieu Oanh, senior PR & marketing executive of Skinfood Vietnam.

    For women, the excitement continues on the next level of Takashimaya: a heaven of luxury cosmetics, jewelleries and fragrances. Christian Dior is prominently located at the front, with rival Lancome opposite. Lancome also opened its own ‘Lancome Cafe’ – a style boutique, where women can take free makeup lessons and receive gifts for the best ‘artwork’.

    Takashimaya Vietnam - Lancome

    Other brands include Bobbi Brown, Shiseido, Estee Lauder, Swarovski, and Mac.

    Takashimaya Vietnam - Yves Rocher

    The next floor features international fashion and cosmetics brands including Diane von Furstenberg, Hugo, Versace and Paul & Shark, along with restaurants and cafes. This level has a rest space with some chairs for visitors arranged around a huge grey pillar.

    Takashimaya Vietnam - Diane von Furstenberg

    Local luxury multibrand retailer Runway comes back after closing its store in Vincom Center in March. As usual, it has a large space in the center, gathering all women’s favourite brands with modern and elegant designs.

    Takashimaya Vietnam - Runway

     The new Runway store replaces the local multi-label luxury brand’s previous space at Vincom. 

    Another highlight is the ready-to-launch space of women handbags Kate Spade New York. That outlet is expected to open soon.

    Takashimaya Vietnam - Kate Spade

    Coming soon: Kate Spade.

    The last level of Takashimaya is filled with men’s fashion and casual wear and children’s clothing and toys. Tommy Hilfiger has the largest outlet here, opposite the first authentic Fred Perry store.

     

    With more than 180 years of experience and US$290 million investment, it is expected that Takashimaya will not only take Vietnamese shopping to a higher level but also mark a turning point for economic development and quality retail in Vietnam.

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  • Bebe Stores forms global JV with Bluestar Alliance

    Bebe Stores forms global JV with Bluestar Alliance

    Bebe Stores has entered into a joint venture with Bluestar Alliance to take over its global marketing and store operations, including in Asia.

    Bluestar, a privately owned brand management company founded in 2006, has paid US$35 million to Bebe Stores for its minority stake in the new company. Until now, Bluestar has managed a plethora of little known brands spanning mass market to luxury, but with cumulative international sales of $1.5 billion through some 200 licensees. Those brands include Kensie, Nanette Lepore, Catherine Malandrino, Michael Bastian, English Laundry and Limited Too.

    Bebe founder, chairman and CEO Manny Mashouf says while Bebe is “one of the great global brands in the women’s fashion world”, the value of the brand, its reach and potential is clearly not reflected in investors’ current perception of the company and its valuation.

    “The strategic decision to aggressively pursue a licensing strategy allows us to capitalise on the value of our brand in all categories and channels on a global scale. We have seen significant demand from prospective licensees and expect to generate long-term, committed royalties.”

    The new JV will manage the brand in both domestic and international markets, including in China where Bebe has achieved rapid growth since forging a five-year partnership with Shanghai-based brand agency Longgoal LLC last August to open between 60 and 150 Bebe stores, shop-in-shops and third-party retailers in Greater China, Hong Kong, Macau and Taiwan. The first store is expected to open in summer 2016.

    Joseph Gabbay, Bluestar CEO said Bebe is an iconic contemporary women’s brand with a loyal customer base and growing international presence.

    “We believe the company has significant long-term growth potential given its distinct market position, multiple channels of distribution and growing international brand awareness. We see a tremendous opportunity to leverage our brand expertise and capitalise Bebe’s differentiated market position to build a global contemporary lifestyle brand.”

    So far, Bebe has licensees in just 20 international markets. It operates 147 retail stores under its own brand and the sister label Bebe Sort, bebe.com and 39 outlet stores in the US, Canada and Peurto Rico.

    The company embarked on a restructuring plan in February after announcing a second quarter loss, laying off 45 employees and replacing then-CEO Jim Wiggett with Mashouf.

  • America’s bebe stores to enter Greater China

    America’s bebe stores to enter Greater China

    US-based global specialty retailer of contemporary women’s apparel and accessories – bebe stores, inc. has announced that it has signed a strategic cooperation agreement with Longgoal LLC, a leading Shanghai-based agency of international high-end brands.

    In a press statement, it said the agreement includes a five-year exclusive license to open between 60 and 150 retail and wholesale bebe points of distribution in Greater China, Hong Kong, Macau and Taiwan. The first boutique is expected to open in the summer of 2016.

    “As we continue to expand our international footprint, our entrance into Greater China is a significant opportunity to accelerate that growth and reinforce bebe as a global lifestyle brand for women. We look forward to working closely with the Longgoal team, who have a proven track record of success and operational experience in introducing high profile retail brands to this key market,” said Jim Wiggett, CEO of bebe stores, inc.

    As a part of the agreement, Longgoal will open a minimum of 60 points of sale in Mainland China, including free standing boutiques and bebe shop-in-shops and identify third party retailers in certain provinces of China to sublicense the brand for retail operations. Longgoal is currently identifying potential locations in Shanghai and Beijing, including flagship boutiques. After the five-year exclusive term, Longgoal retains an option for an additional 10 year partnership with bebe based on performance.

    “bebe is truly an iconic affordable luxury brand and one that we are honored to have the opportunity to introduce to women across Greater China in a variety of ways. As style and design are among the top priorities for sophisticated woman in China, we are confident that bebe’s bold design and contemporary fashion will appeal to the ever-changing lifestyle of the confident and sexy modern Chinese woman,” said Madam Celine Chen, Chairwoman of Longgoal LLC.

    bebe plans to locally design and develop up to 30 per cent of the product for China to create trendy fashion styles to reflect the local fashion and suit the bebe woman’s lifestyle in China. In addition, the company anticipates expanding further into licensing agreements for handbags, shoes and intimates in the initial partnership phase.

    bebe complements Longgoal’s current portfolio of retail brands, including GANT, the original American Sportswear brand launched in China nearly a decade ago, and Thomas Pink, the luxury British shirt brand under the LVMH Group.

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