Founded in 2016, OnTheList is a members-based flash sale company that offers premium goods at unbeatable prices. As of March 2017, OnTheList has called its showroom on Duddell Street, home. In 2018, OnTheList opened pop-up showrooms in Hong Kong, launched in Singapore, and is now ready to expand into other countries in Asia.
In 2019, OnTheList is jetting off to another Asian city to host the first Flash Sale in Taiwan in March.
The Amsterdam-based watch brand renowned for its timeless sophistication and strong focus on materials, quality, and style has just opened its first monobrand store in Taiwan in partnership with Bluebell. This CLUSE monobrand POS is a rotating pop-up in partnership with Eslite, which aims to attract visitors from different cities in Taiwan. This month the pop-up stops at the Eslite Taichung Parklane by CMP Store, 1F.
CLUSE, created in Amsterdam in 2013 by a team of young and ambitious individuals, is a fast-growing watch brand for the modern and fashionable woman.
Named after “Cluses”, one of the oldest watchmaking towns in France, CLUSE is able to combine a modern, minimalistic, and elegant design yet remaining faithful to its heritage by crafting authentic, quality analogue timepieces.
CLUSE was discovered at an early stage by the fashion-loving crowd on social media, and among others, it has acquired worldwide fame on Instagram and Facebook, being recognized as a successful Facebook story for its effective digital marketing strategies.
Thanks to the profound in-house knowledge of Social Media marketing, a data-driven approach and a clear customer profile based on campaign data, CLUSE has managed to grow to a staggering 1.6 million Facebook fans and 700K Instagram followers within 3 years.
This success is boosted by CLUSE’s brand ambassadors who are recognized among the most influential kol worldwide like @sincerelyjules and @retroflame who live their life with the same philosophy of the brand.
Drawing inspiration from minimalist fashion and subtle colours, CLUSE represents the mentality of simplicity of being grounded, empowered, sophisticated and true to oneself.
CLUSE is designed not only to indicate time, but also to define the best moments in life.
CLUSE is designed for dynamic and versatile women. One CLUSE watch allows infinite possibilities thanks to the mix&match easily interchangeable straps.
CLUSE has soon become the most popular lifestyle watch brand in Europe and invested into a high-end network of distributors.
After expanding in Europe, CLUSE has quickly conquered millennials in different countries, and it led to simultaneously launch in wholesale in Japan, Korea, Malaysia, and wholesale and mono-brand stores in Hong Kong, Singapore, and now Taiwan.
The latest collection is La Tétragone (this new classic square shape design launched in SS18), and Triomphe (also launched in SS18).
Following the success of CLUSE timepieces, the brand has started a new adventure into jewelry. Three collections have been created Essentielle, Idylle, and Amourette to translated unique personalities into unique pieces.
CLUSE is definitely a brand to keep an eye on, strong brand identity, effective digital marketing strategy, and an army of influencers boosting its brand image.
Affordable luxury brand BA&SH has marked the second anniversary of its launch in Asia by revealing plans to quadruple its sales in the region within two years and introduce a new store concept. Last year the company opened seven stores in Mainland China, three in Hong Kong and two in Macau, taking its Greater China footprint to 20 points of sale.
“We are thrilled about Hong Kong hitting the podium already and convinced China has the potential to drive the brand’s growth in a near future,” says Isolde Andouard, BA&SH’s CEO for Apac.
“Asian market accounts for 6 per cent of our global sales as of today and we are targeting to reach 17 per cent by 2020. We forecast to multiply our turnover fourfold within the next two years,” she said.
Stores in Hong Kong and Mainland China achieved profitability after just three months of operation, allowing the brand to build a regional store pool contributing significantly to global results.
BA&SH unveiled a new store concept in the US last September, located in New York City’s Nolita neighbourhood, a store designed around themes of friendship and customer experience.
“We chose New York to test the water with this new concept as this retailtainment experience must be combined with a heavy digital approach and US is clearly ahead of time on this,” says the company’s global CEO Pierre Arnaud Grenade.
“As the US and Asia are our two strongest focuses for the time being, Hong Kong will definitely be the second city to inaugurate this model.”
Sustained investments from LVMH-sponsored L Catterton have been supporting BA&SH’s strong growth over the past years and a strong emphasis on Greater China was seen as critical to the brand’s globalisation.
Hong Kong stores, the first of which opened almost two years ago, now rank within BA&SH’s top five worldwide in turnover. Andouard says that proves the BA&SH concept is a great fit for Asia, with the Hong Kong stores recording average like-for-like sales growth of more than 40 per cent year on year. Some stores in Greater China doubled their sales year on year.
BA&SH has focused on opening boutiques in premium locations and already counts most of the city’s major retail property owners among their landlords – including Swire, Sun Hung Kai, Sands, Wharf, China Resources and Value Retail.
“We didn’t bet on such a warm welcome from the local operators, because BA&SH is quite a new concept to Asia,” says Laura Marquant, strategy & development director Apac. “Yet we see the market is becoming more mature and is looking for the freshness BA&SH is offering.”
E-commerce focus
Meanwhile, on the strength of the Greater China success, BA&SH has expanded its reach online through Alibaba, opening a flagship on Tmall last June, less than a year after the brand launched in Mainland China.
“As far as digital is concerned, New Retail and omnichannel are more than ever on the table, and the redesign of the brand’s Hong Kong website with new features and tools are the next steps to come,” says Andouard.
Skechers has bought its joint venture partner in Skechers India, taking the business inhouse. Skechers India has 223 retail locations across the country, 61 of which are company owned and operated, with the remainder franchised. Last year, Skechers saw double-digit increases in wholesale and retail sales and an 80 per cent increase in pairs sold, reaching 2.7 million.
An additional 80 to 100 stores are planned for this year – of which about 20 will be company-owned.
The dual-ownership model is expected to allow Skechers India to grow and expand its presence faster, the parent company said in a statement.
“Skechers is still a relatively young brand in this country, having been in India for less than a decade, yet in the last five years, we have seen significant growth through our joint venture,” said Michael Greenberg, president of Skechers.
“The substantial existing retail network of over 200 stores, a strong wholesale business and a recently launched e-commerce site is a solid foundation that we can build upon. These accomplishments, as well as opportunities we see to increase the brand’s exposure and drive sales, give us great optimism and confidence for the growth of Skechers in India.”
Rahul Vira, CEO at Skechers South Asia, said the company was delighted to become a wholly-owned subsidiary of Skechers.
“This development will enable us to amplify our growth plans, accelerate expansion of our operations and build a stronger network to further gain market share in India,” he said.
Skechers India will continue operating under its existing structure and from its existing headquarters in Mumbai.
Iconic American fashion brand Guess Inc. announced that its chief executive officer and director, Victor Herrero, is leaving the company effective February 2, 2019. Carlos Alberini, who served as Guess’s president and chief operating officer more than ten years ago, will replace Herrero.
“On behalf of the Board of Directors, I want to thank Victor for his contributions during his tenure and wish him well in his endeavors,” said Maurice Marciano, chairman of the board.
Alberini has been appointed as the new CEO and a Director of the company, “effective upon his separation from his current employer,” said Guess in a press release detailing the new hire on January 28.
Alberini served as COO for the Californian company from 2000 to 2010. He was co-CEO of Restoration Hardware until 2014, and a director on the board of Restoration Hardware from 2010 until present.
More recently, Alberini has been the Chairman and CEO of Lucky Brand, a role he took on from 2014.
“I am very excited to have Carlos coming back as CEO at Guess. He was instrumental in building the international business in Europe and Asia during his 10-year tenure with the company,” said Maurice Marciano.
The company also announced that Marciano has agreed to remain as Chief Creative Officer. His employment will be “at will”, according to Guess.
During the transition, Marciano will be acting as interim Chief Executive Officer.
In 2017-2018 financial year, Guess witnessed a steady growth track in Asia, notably in China.
In March last year, the brand said it planned to open 60 stores in Asia, after also opening its first subsidiary in Singapore.
In same financial year, the group said it improved its gross margin in Asia by 470 base points, with sales up 40 percent.
International fashion magazine Vogue has opened its first wedding dress salon. Facing Aoyama Kotto-dori in Tokyo’s Omotesando district, the salon has hired specialist staff to offer tasteful suggestions not only with regard to dresses and accessories but also extending to hair, makeup and photography services.“The biggest single keyword for contemporary today’s weddings is ‘diversification of values’”, said Vogue Wedding creative director Mayumi Nakamura. “Now is a time for brides who embrace different values to rejoice in their individuality.
“At Vogue Wedding Salon, in addition to traditional wedding dresses, we have prepared a wide variety of more adventurous styles. These items include stunning bridal gowns from popular designer brands that will be familiar to readers of Vogue such as Alexander McQueen, Giambattista Valli, Oscar de la Renta, Sergio Rossi, and so on. I hope that at Vogue Wedding Salon you will enjoy choosing a stylish dress that is not bound by existing rules.
View the gallery below (4 images) :
In addition to traditional wedding dresses, visitors can expect to encounter a variety of fashionably styled modern dresses selected by Vogue and created by top international designers based in the world’s fashion capitals beginning with Paris, New York, Milan, and London. Visitors will find a lineup of popular luxury bridal gown brands, as well as a selection of brands that are available exclusively from Vogue Wedding Salon.
The salon is also equipped with a photo space where aspiring brides and grooms can take advantage of Vogue’s wedding photography services.
In addition to wedding dresses, an extensive range of eveningwear and luxury brand shoes and accessories are available. The salon can also offer customers a luxury shoe brand custom order service.
Luxury brand Dolce & Gabbana has opened a new D&G Osaka store. The two-level, 905sqm #DGLovesOsaka boutique at Midosuji is designed to reflect the unique local features of Osaka while still representing the brand’s heritage, with red marble and pink onyx finishings touched off by pink rugs and wallpaper. A large baroque-styled mirror is a centrepiece of the decor.
The #DGLovesOsaka boutique stocks ready-to-wear collections and accessories for men, women, and children.
Global fashion retail brand Penshoppe has unveiled the latest addition to its roster of international ambassadors – 23-year-old world’s highest-paid supermodel and one of the most followed celebrities on social media, Kendall Jenner. The model initially appeared on Penshoppe’s DenimLab campaign in 2015, and is now headlining the brand’s Spring Summer 2019 Campaign with Zayn Malik, Paris Jackson, Nam Joo Hyuk and Sandara Park.
“As we move from strength to strength, we couldn’t think of a better addition to our growing list of global ambassadors”, said Golden ABC’s VP for brand management Jeff Bascon. “It’s good to have you back, Kendall!”
Penshoppe has more than 400 locations across Bahrain, Cambodia, Indonesia, Saudi Arabia, Myanmar, Thailand, Vietnam and the Philippines. The brand is available online in Singapore, Malaysia, Hong Kong, Taiwan and Indonesia.
HYKE enjoys a massive following in its native Japan, slowly developed since its inception in 2013. Over the past six years the label, led by married designers Yukiko Ode and Hideaki Yoshihara, has cultivated a horde of Japanese devotees attracted to HYKE’s neutral color palettes, tweaked militaria and effortless elegance. This following has garnered stockists that include some of the nation’s largest department stores, like Isetan, UNITED ARROWS and the Japanese branch of Barneys New York.
Despite the independent brand’s commercial and critical success in Japan, HYKE remained an obscurity to even the most fashion-savvy shoppers outside of Asia. That was until the brand’s collections with The North Face received such international acclaim that the partners created a dedicated Instagram page and website exclusively for the ongoing collaboration.
Behind the covetable technical collaborations, however, the underappreciated Japanese label has quietly advanced its singular vision with a laser focus.
In 1997, Ode and Yoshihara launched a vintage clothing store, dubbed “bowls.” “We would go buy only the best clothes overseas and then put our favorite items on display in the shop,” the designers told the Woolmark Company in August 2016. “When we found clothes we liked, we didn’t want to sell them to anyone else. We decided that we would instead make clothing that contained the essence of what we liked, and that’s how our first brand, green, started.”
Veterans of two different Japanese fashion schools, Ode and Yoshihara spent time as a stylist and patternmaker, respectively, before opening the store and launching green a year later.
Guided by the philosophy of beauty through functionality, green offered simple yet thoughtfully-crafted, vintage-inspired womenswear in an era that was not known for understated clothing. Though minimalist fashion is de rigueur now, early 2000s style was rife with loud party dresses, flashy logos and gold accents.
Thus, green’s fur-trimmed parkas, relaxed denim and muted trench coats seem even more prescient when reexamined 20 years later. A growing demand encouraged Ode and Yoshihara to introduce a brief men’s offering alongside the more expansive womenswear line, eventually taking green to the runway for the label’s final season, Spring/Summer 2009.
Following green’s tenth anniversary, Ode and Yoshihara shuttered the label in October 2009; by then green had ballooned from a small side project to one of Japan’s pre-eminent womenswear brands. The couple retreated from fashion altogether, taking several years off to reformat their approach to design and raise their two children. In doing so, the duo shifted bowls from a vintage boutique to a management company before debuting their new flagship label, HYKE, in 2013.
HYKE thrived almost immediately, thanks to its appreciably clean, minimalistic designs and the accumulated green fanbase. Ode and Yoshihara aim “to evolve fashion history by our heartstrings,” recreating militaristic garments with custom fabrics. Though some clothes sport playful fringe or deep pleats, the basis of each collection remains the same: the couple sources key vintage pieces for inspiration — be it a classic M65 jacket or fishtail parka — deconstructs the garments to study patterns, threads and craftsmanship, before piecing them back together via contemporary pattern-making. Using simple, versatile colors and unparalleled craft, HYKE’s consistently wearable offerings prove reliably popular. This consistent demand encouraged both Mackintosh and adidas Originals to join forces with HYKE in 2014.
The one-off Mackintosh collaboration yielded a workmanlike approach to reimagining the British heritage brand’s signature outerwear, with HYKE serving up four muted, militaristic iterations of three classic coats for both men and women. Meanwhile, the adidas Originals partnership continued until Fall/Winter 2016, with each season gradually expanding HYKE’s design ethos. A quick comparison of the first drop — minimalist Trefoil hoodies, army green pullovers and velcro-strapped adilette runners — to the final release — monochrome Seeulaters, faux croc skin adidas clutch bags, sporty capes and occasional snakeskin patterns — makes the evolution all the more dramatic. The success of these lines, as well as the continuing growth of the main line, helped Ode and Yoshihara win the 35th Mainichi Fashion Grand Prix in 2017.
Both the Mackintosh and adidas collaborations received global releases, but the reception was muted in comparison to HYKE’s headline-stealing collaboration with The North Face. The collection debuted during HYKE’s Spring/Summer 2018 runway, immediately establishing an ideal marriage of HYKE’s minimalist taste with The North Face’s utilitarian gear, informed by the Japanese label’s desire to combine “the functionality of outdoor sports wear with the sensitivity of HYKE.”
HYKE’s preferred army green, black and white color palette returned for the collection, along with playful snakeskin patterns and signature garments, like the cropped Bolero Jacket and solid-color pullovers. With each collaborative release since that first joint effort, the duo have introduced small expansions to keep the line fresh — oversized pullovers, sock-like sneakers and even menswear — while retaining much of the same elements from past drops. However, The North Face Japan’s complicated licensing prevents the collection from seeing worldwide release, despite the overwhelmingly positive international reception and the recent addition of menswear to the line.
To make a complex issue very simple: America’s The North Face is a different company from Japan’s The North Face. In 1978, outdoors company Goldwin began distributing The North Face in its native Japan, eventually purchasing the exclusive Japanese (and partial Asian) TNF license from the American branch. This exclusive license still remains in Goldwin’s possession; thus, American The North Face products can’t sold in Japan and Goldwin’s The North Face goods can’t be sold outside of the island nation. Since HYKE x The North Face is produced by Goldwin, that means that distribution will likely never expand beyond Asia, unless the Japanese The North Face strikes a deal with its American counterpart, as Goldwin recently did with THE NORTH FACE PURPLE LABEL.
Regardless of legal qualms, HYKE maintains a massive following in its native Japan, with a developing influence throughout Asia as Korean and Chinese retailers take note of the brand’s adaptable designs. And more The North Face collections will only aid HYKE in increasing its global presence. Although the license quagmire will keep those collaborations from being sold overseas, HYKE could potentially bring its in-house creations abroad. If savvy Western retailers snap up the Japanese brand’s minimalist wares, it may open the floodgates for future expansion — possibly even bending the rules for The North Face.
After six years back in fashion, Ode and Yoshihara remain unflinching in their dedication to realize the identity they established with the launch of HYKE. With no desire to cut corners (or prices) on its detail-oriented Japanese expertise, the designers are in no hurry to broaden its global footprint, or even create a proper menswear offering. Next up for the brand? Perhaps HYKE will finally open a Japanese flagship store, a hard-won focal point in service of clientele who appreciate the label’s unwavering commitment to independence.
HYKE x The North Face Spring/Summer 2019 drops February 6 exclusively at The North Face Futakotamagawa and Isetan Shinjuku before hitting other Japanese TNF outposts on February 16.
Affluent Chinese consumers have for years shown a preference for global, well-known brands and labels. But with growing sophistication in tastes and a penchant for unique styles, the well-heeled are now increasingly gravitating towards high-end Chinese designers.
“While global forces will continue to impact China’s luxury market, domestically there’s this whole new wave [of Chinese designers] that is coming through and is transforming the market,” said Simon Tye, executive director of Hong Kong-based market research company Consumer Search Group (CSG).
In a report released last month along with US and China-based public relations company Ruder Finn Group, CSG found that 74 per cent of affluent Chinese consumers are aware of at least one Chinese designer, and 45 per cent intend to buy more Chinese designs over the next 12 months.
According to report, titled “The 2019 China Luxury Forecast”, a shift in purchasing attitude from buying to “show-off to outsiders” to a “reflection of personal taste” is evident in 76 per cent of Chinese consumers. These respondents said they buy luxury items that reflect personal taste, up by about 30 per cent since 2012, according to the report.
According to Mintel China, another market research company, niche luxury brands are particularly popular among women between the ages of 20 and 24, who are single and have a postgraduate or higher degree.
Karen Zhang, 24, a banking professional from Beijing, said: “I still like my Gucci and Dior bags, but nowadays I like to explore luxury brands that have interesting stories and doesn’t shout extravagance. I also like to buy products by Chinese brands that have a unique twist.”
The growing interest in Chinese designers is illustrated by a fivefold increase in the number of such brands featured by Hong Kong-headquartered luxury goods store chain Lane Crawford in recent years, according to strategy consultancy OC&C. Comme Moi, a brand founded by Chinese model Lu Yan, is among the fastest growing brands in Lane Crawford stores in China.
JNBY, regarded as the most commercially successful Chinese designer brand, has more than 1,500 stores worldwide. Angel Chen, known for her colourful approach to fashion and fusion of eastern and western aesthetics, is stocked internationally by 30 retailers, including Lane Crawford, Luisa Via Roma, H. Lorenzo and Dong Liang. She is part of the “new wave” making an impact locally and globally, according to CSG.
Unlike traditional brands, which spend on large-scale marketing and advertising campaigns, these new brands rely more on their unique designs and the power of celebrities and “key opinion leaders” for publicity.
“For instance, Chictopia, founded by a local designer, Christine Lau, offers innovative and high-quality products with a clear story theme for each season,” said Veronica Wang, associate partner at OC&C. “The brand is followed by a group of top local celebrities, such as Fan Bingbing and Angelababy, which helps to establish awareness among the young generation.”
The brand launched an official website in 2016, which provides an online sales channel and allows for the sharing of the brand’s latest collections through WeChat.
Wilson Li, 28, a Chinese designer, said: “This is a very interesting time [for Chinese designers] right now. Around 20 years ago, Chinese clothing companies produced items that were extremely cheap, and they didn’t care much about quality. But this isn’t the case any more.”
Li said the US-China trade war was pushing the market to improve its offering: “The only way for Chinese designers and companies to break out is to improve their standards.”
Li, founder and head designer at Wilson PK, is known for his innovative fabrics and creative knitwear. He said a growing number of Chinese companies had been investing more in research and development as well as quality control over the past 10 years, with the aim of shaking off the image being of “cheap”.
His brand, which has been around for five years, can count celebrities such as American singer Lady Gaga and British musician Lianne la Havas as its fans.
“For custom fashion pieces, which are priced between US$960-US$3,830, we usually reach our target consumers through our online look book and stylists,” said Li. “Mass market customers can shop the ready-to-wear collection on our website, with prices starting from US$50.”
Li, a fashion design graduate of Central Saint Martins Art and Design College, added: “Nowadays, Chinese consumers don’t just want luxury, they want the stories that come with it.”
Industry experts say it is important for niche luxury brands to maintain a sense of exclusivity and rarity through storytelling. Scarlett Zhao, associate research analyst at Mintel China, said: “Niche brand lovers tend to be better informed and are willing to pay more for a brand’s unique meaning.”
According to these experts, the biggest competitive edge Chinese designers have is their understanding of local preferences. And according to Wilson PK’s LI, while it is too early for local designers to be considered as rivals to established global fashion houses, there are more opportunities for Chinese brands in the current market.
“Let’s be honest, calling it a competition would be too difficult. But as a Chinese designer, I definitely want to liberate my own culture,” he said.
Luxury fashion is all about breaking codes, creating a new, irresistible message that captivates consumers. But some of the globe’s top brands have raised eyebrows with designs that have seemingly racist undertones. The latest instance of that was Italian fashion designer Gucci, which produced a black wool balaclava jumper with an oversized collar that pulls over the chin and nose. It includes a slit where the mouth is, ringed with what look like giant red lips.
Its similarity to blackface prompted an instant backlash from the public and forced the company to apologise publicly on Wednesday.
Gucci also withdrew the offending garment from sale on websites and stores. It said the incident would be “a powerful learning moment for the Gucci team and beyond”.
But the question persists: how can fashion houses that thrive on detail miss such critical social cues?
Prada similarly withdrew a monkey bag charm that recalled blackface in December, saying it “abhors racist imagery.” And Dolce & Gabbana issued a video apology after one of the designers made insulting remarks about Chinese people in a private chat discussing the questionable depiction of a Chinese model in a campaign.
“Luxury brands used to be able to get away with provocative and eccentric ads that push the boundaries of our society and culture in the name of being creative and cutting edge,” says Qing Wang, a professor of marketing at Warwick Business School in the United Kingdom.
“However, a long list of recent incidents have caused public outrage, suggesting that era is now gone, or that luxury brands have lost touch with public sentiment. What used to be considered ‘creativity’ has now turned into ‘bad taste’ or even ‘racist’.
He cited other fashion fails that evoked stereotypes, including Dolce & Gabbana’s “slave sandal” in its spring-summer 2016 collection and a recent Burberry campaign for the Chinese New Year that was compared to Asian horror films.
While many of these incidents have caused immediate social media backlashes, the longer-term impact will take time to measure, and will depend on the brands’ reaction and future sensitivity.
Dolce & Gabbana was forced to cancel its Shanghai runway show after the insulting remarks were publicised, top Asian influencers backed out of campaigns and Chinese websites dropped their line – a warning sign from a region that holds great sway in global luxury sales.
The blackface images have particular resonance in the United States, where the governor of Virginia and his attorney general have been caught up in a scandal over blackface incidents from their college days in the 1980s. The offensive depictions are reminiscent of travelling entertainers from the 19th century, who would paint their faces black to portray African characters in a ridiculous and mocking fashion, spreading racial stereotypes along the way.
Italian sociologist Michele Sorice at Rome’s Luiss university says that the evocation of blackface by Italian fashion houses signals “a mixture of good faith, and ignorance”. He notes that Italian society still isn’t fully aware of the racial charge in some words and images.
“I imagine that they don’t truly think they are racist,” Sorice says. “I think they didn’t have the instruments to understand that these images are archetypes that were used to contrast the concept of blackness and make them ridiculous. I think that many simply don’t know. It is a cultural issue.”
Paolo Cillo, a marketing professor at Milan’s Bocconi University, says the designer’s intent may have been taken out of context and amplified, and she credits Gucci with acting swiftly to quell the controversy.
“I wouldn’t stigmatise fashion,” Cillo says, comparing the fashion designer process to artistic pursuits like filmmaking, painting or music. “There are artists in the world of culture that did more outrageous things and no one ever said a thing. There is a perception that fashion is ephemeral, or commercial. But from my point of view, it is not. It reflects the times, like all other artistic forms.”
While the fashion world has been at the forefront of addressing sexual norms – Gucci has been redefining genderless dress codes under Alessandro Michele – it has lagged behind other industries in taking on social issues such as racial tolerance, climate change or women’s empowerment, according to Larry Chiagouris, a marketing professor at Pace University, US.
“It is not clear why this is,” Chiagouris says, “but the evidence clearly points to the fashion industry’s need … to catch up with the rest of the world.”
Over the past 12 months, shares of lululemon athletica have risen 90%. The most recent surge came after an upgrade on 2018 holiday season guidance, helping the athletic-wear stock rebound from a slump brought on by a broad stock market sell-off at the end of the year. Lululemon has enjoyed several tailwinds. Athleisure (that is, activewear and sports-inspired clothing for all situations) has continued to grow in popularity, and consumers have been generously spending — to the tune of 4.9% more on clothing alone in 2018, according to the U.S. Census Bureau. After a blockbuster run, though, Lululemon may have a difficult time repeating that same success in the new year.
It is easy to see why shares of the clothing company have come roaring back. During the all-important holiday shopping season, management updated revenue guidance to between $1.14 billion and $1.15 billion, up from previous guidance of $1.12 billion. Earnings per share also got an upgrade to a range of $1.72 to $1.74, up from a range of $1.64 to $1.67.
The results are impressive, but Lululemon has been measured by how it approaches expansion. Through the third quarter of 2018, there were 426 physical stores, up a net 22 from the start of the year. Instead of growing primarily by new openings, the company has instead benefited from a surge in same-store sales at existing stores — which increased 6% during the third quarter — as well as directing traffic to the online store. Direct-to-consumer sales were 25.3% of revenue in the third quarter, compared with 21.2% in the same period in 2017.
Lululemon is not alone in the athleisure-wear category, though. Gap and its Old Navy and Athleta brands continue to grow their presence in sportswear, and the largest sports-only chain, Dick’s Sporting Goods, has also launched its own branded lines of clothing. Yet in spite of the competition, Lululemon has continued to resonate with new and existing buyers, both here in the states and abroad.
The maker of stretchy pants and other sports-inspired clothing could nevertheless continue to run higher. After all, Lululemon has momentum on its side, both on the top and bottom lines. Even should sales growth take a breather, management has said it thinks gross profit margin on product sold could continue to expand, especially as a result of the emphasis on direct selling online and new higher-margin products such as coats and sweaters.
On the other hand, there is reason for investors to give pause before jumping on the bandwagon. Even after earnings nearly doubled in 2018, the stock still trades at a premium, largely because share performance matched that of earnings. The trailing-12-month price-to-earnings (P/E) ratio currently sits at 52.5, a metric that only slightly improves to 43.2 when using free cash flow — a better measure of profitability, as it factors only for basic operating expenses and capital expenditures and excludes items such as depreciation and amortization.
On a one-year forward basis, the P/E is currently at 40. Paying for decades’ worth of profits that haven’t yet been realized only makes sense if the bottom line continues to expand at breakneck speeds, and that’s what is implied in the rich valuation. Thus, there’s little room for error, and if there’s any slowdown at Lululemon, the stock could suffer losses at current levels.
Of course, for those looking to the long term, Lululemon looks like a solid bet on the apparel industry of the future. Nevertheless, after renewed investor optimism over new fourth-quarter guidance, the stock is too rich for my taste.
Ambience Mall, Gurgaon, with some of the biggest food and fashion brands such as H&M, Gap, Zara, Marks & Spencers, Kiko Milano, Luxe Bridge, Iconic, Da Milano, Jack & Jones, Cover Story, Ritu Kumar etc, is the perfect destination for shoppers of all age groups. To augment its standing as the numero uno, two more luxury brands Ted Baker and Hackett London have opened their stores in the mall recently.
British clothing and accessories brand Ted Baker known for designer apparel and signature tailoring opened its latest store at the Ambience Mall, Gurgaon. The store is equipped with glamorous interiors and tons of charm. The brightly-lit store will house their wide range of both menswear and womenswear. Ted Baker is a mainstay for every stylish wardrobe with a collection of bright dresses, tops, menswear, luxe accessories and add-ons.
Located adjacent to the Ted Baker store, Hackett London is a multi-channel British menswear retailer, specialising in vintage clothing for men. As the official couturier for the British Army Polo team, the Henley Royal Regatta, the BAFTA awards and Aston Martin Racing, Hackett London is steeped in Britain’s rich sartorial heritage. With a wide repertoire of fine casual and formal clothing the store is a niche addition to the malls offering.
Speaking on the store launch, Arjun Gehlot, Director, Ambience Malls, said, “We are delighted to have some of the best international fashion luxury brands Ted Baker and Hackett London in our mall. This is part of our commitment to offer International and Domestic premium quality brands to our customers under one roof. We will continue to bring best quality brands in the future as well.”
The Ambience mall with the best offers in shopping, entertainment and culinary offering under its roof is the definitive favorite of shoppers looking for premium international and domestic brands. With an eclectic mix of top international and Indian clothing brands to cater to all age groups, wide array of entertainment options and unique decorative concepts that is constantly refreshed in-tune with changing seasons and festivities, the Ambience Mall, Gurgaon has indeed cemented its place as the perfect destination for shopping enthusiasts and thrill seekers in Delhi-NCR.
Giorgio Armani Beauty is starting the year of 2019 strong by collaborating with DFS on celebrating Chinese New Year. In January, Giorgio Armani Beauty launched its first Chinese New Year pop-up stores at T Galleria Beauty By DFS, Causeway Bay and T Galleria By DFS, Canton Road respectively. Iconizing the brand’s 3 star products – the legendary Lip Maestro, the iconic My Armani To Go Cushion Foundation and the new bestselling fragrance – Sì Passione, the pop-up stores reflected Armani’s commitment to modernity whilst celebrating the traditional festival with the Asian consumers.
A UNIQUE BEAUTY EXPERIENCE Visitors were able to indulge themselves in a unique Armani Beauty experience under the Chinese New Year festivity. They discovered New Year fortune and recommended Giorgio Armani Beauty products through the in-store digital app, try their luck on the app and receive attractive gifts upon purchase; and completed their memorable experience by getting the exclusive gift set of the 3 star products featuring My Armani To Go Cushion Limited Edition “Cushion Couture”. Customers also enjoyed professional make up consultation by Giorgio Armani Beauty Face Designers.
Premium lifestyle brand Ralph Lauren increased gross profit across its third quarter period by 6 per cent to $1.46 billion (US$1.05 billion), compared to $1.37 billion (US$996 million) the year prior. The growth was driven by a 90 bps increase in gross margin to 61.6 per cent, as a result of reduced promotional activity and improved pricing.
“Solid execution on our key initiatives, especially during the important holiday period, delivered better-than-expected results for the third quarter as we drove higher average unit retail and continued to improve quality of sales overall,” Ralph Lauren president and chief executive Patrice Louvet said.
“These results give us confidence that our strategic investments in brand-building, product, digital, and global expansion are on the right track, while the strength of our balance sheet will continue to be a competitive advantage as we manage through an increasingly volatile global environment.”
The business saw momentum in Asia continue, with 11 per cent revenue growth to $379.65 million (US$275 million) led by 19 per cent constant currency growth in Greater China, and strength across Japan, South Korea and Australia.
North American sales increased by 3 per cent to $1.25 billion (US$909 million), and enjoyed flat comparable bricks-and-mortar sales and a 21 per cent increase in digital sales for the region.
Global revenue for the brand’s digital offering improved 20 per cent over the last year, with growth in the brand’s directly-operated digital flagships exceeding expectations.
Net income for the period grew to $165.67 million (US$120 million), or $2.04 per diluted share (US$1.48).
Looking toward the final quarter of fiscal 2019, Ralph Lauren expects net revenue to drop slightly due to a planned reduction in off-price sales, though predicts net revenue for the fiscal year will be up slightly, though didn’t provide concrete figures.