Daniel Liu: Blue Sherling Sailing vest
Black nylon active pant
Fabrizio Freda Rocks Out with his Stock Out.
In reporting a 15.4 percent increase in second-quarter profits and releasing third-quarter guidance, Lauder said it anticipated a slowdown in the rate of sales growth in Western Europe and in China — a statement that sent its shares down 2.3 percent.
Lauder is increasingly in a position to tailor its assortment to gain customers wherever they might be geographically.
Fabrizio Freda, Lauder’s president and chief executive officer, said in a telephone interview that technology has impacted how the company operates by enabling it to drill down on information that helps it understand customers by geographic region and shopping patterns. It’s all part of a change in the firm’s planning methodology that was featured in Lauder’s four-year strategic plan, which was implemented in 2009.
One example of how the fine-tuning in logistics has boosted sales is in the travel retail category.
According to Freda, “We have a clear understanding of how many Chinese shop in certain places, whether a MAC store in Times Square or the Galeries Lafayette in Paris. We know when they show. We have a clear calendar of the tourist movement….”
Freda explained that with that enhanced knowledge, the firm can plan its product offering so that it’s tailored to the clientele. He noted that Brazilian shoppers often buy MAC eyewear products. So where there is a heavy concentration of Brazilian tourism during any given part of the year, wherever that may be, the firm will have a higher inventory of eyewear products to cater to that shopper as well as have sales associates present who speak Brazilian Portuguese. In addition, marketing materials such as brochures and displays would also be in the language native to the tourist.
In another example, Freda said: “If we know when a lot of Chinese will be traveling, [then] before that period we will advertise certain products [in their home region] and then sell it wherever they are traveling to.”
The company also coordinates advertising and sales flow throughout the travel process to ensure multiple points of contact from where travelers leave to the different stopovers to the ultimate destination, according to the ceo.
Looking ahead, Freda said the firm “always looks at acquisitions” around the world, and would consider making a move when the right opportunity comes up. For now, he emphasized that there is no indication or likelihood of one on the horizon. “Our focus is on [ensuring] our brands continue to grow,” he said.
In the short term, however, the ongoing financial woes in the Euro zone and slower China growth are expected to impact Lauder.
The company projected diluted earnings per share of between 28 cents to 32 cents, excluding restructuring charges, compared with analysts’ consensus expectations of 41 cents.
For the three months ended Dec. 31, earnings attributed to Lauder were $396.7 million, or $1 a diluted share, from $343.9 million, or 86 cents, a year ago. The results include pre-tax charges of $6.1 million for restructuring activities. Per share data has been adjusted to reflect the firm’s two-for-one common stock split last month.
Sales in the quarter grew 10 percent to $2.74 billion from $2.49 billion. While the most volume in the quarter was still from the Americas, with Europe, the Middle East and Africa a close second, the rate of growth skyrocketed in the Asia/Pacific region by 21 percent.
Freda said during the investor call, “Our terrific performance was broad-based across geographies, categories and brands.…Spending by affluent consumers remained buoyant this quarter, particularly for the kind of affordable luxuries that we offer. Sales of our higher-end brands including La Mer, Bobbi Brown, Jo Malone and Tom Ford enjoyed sharp double-digit growth globally.”
He also noted the firm’s increases in advertising expenditures, which will be ramped up in the third quarter to coincide with major launches as well as for continued support of existing franchises. One introduction Freda noted is the new skin care product from the Estée Lauder brand developed for the European market called Revitalizing Supreme Global Anti-Aging Creme. The new product is based on “exclusive technology” and consumer research on what European women want in a multitasking cream, Freda said.
Given the firm’s first-half performance to date and reflecting on positive momentum expected for the full fiscal year, the company increased its local currency sales forecast to between 9 and 10 percent, as well as revised its diluted earnings per share up to $2.16 to $2.23, before restructuring charges. The previous guidance was between $2.12 and $2.23. The diluted EPS range reflects the two-for-one common stock split last month.
Shares of Lauder closed down at $57.48 in trading Friday.
HAIR: Eugene Souleiman for Wella Professionals
MAKEUP: Dick Page for Shiseido
OVERALL TAKEAWAY: Rodriguez showed a more masculine and understated side to his latest range by working with heavier fabrics in demure tones.
Narciso Rodriguez is known for his modern aesthetic and clean, elegant lines, and his Fall collection delivered on that promise. But this season, the designer’s colorblocking technique (often used with blacks and whites) was used with actual color. Yes, color, at Narciso. But don’t worry, black was still predominant throughout the collection.
The coats were a knockout. The opening look—a black number with a hint of red on the sleeves and a diagonal cream stripe—was modern minimalism at its best. Further in, a black and cream jacket revealed a crimson (the color of the week) and deep violet top—bright but well placed so as to not overwhelm. There were also artful prints and textured layers in his more signature dresses, with peach interacting with stark blacks and grays.
Leather and chiffon dresses added a feminine touch to the show, but they were tempered by the outerwear and cuts. The collection brought us back to an easier and more simplistic way of dressing; every look seemed so effortless and casual, though at second glance the details—like hidden red lining or a colored piping—showcased just how complicated the pieces were.
For devoted fans, Rodriguez provided the femininity they’ll want, with just enough of a masculine undertone. In a word, it was very Narciso.
VF Corp. plans to more than double The North Face’s volume to $3 billion in the next five years.
The strategy, which would add $1.6 billion to its current sales of $1.4 billion by December 2015.
Expect to see a whole lot more of the Trump name — and not just in real estate news.
Ivanka Trump, businesswoman and first daughter of developer Donald Trump, has already taken on more than her executive role in her father’s company, bowing a namesake, high-end jewelry collection and writing a best-selling book offering young women tips for getting ahead. Now she’s taking on shoes.
Teaming up with Marc Fisher Footwear, the 28-year-old is debuting a complete collection of moderately priced footwear for spring ’11, which includes a mix of stilettos, flip-flops, sneakers and ballet flats. The line, Trump said, showcases her affinity for sophisticated and elegant looks and weaves in contemporary and modern twists.
“There’s a great opportunity to position stylish, yet refined, shoes,” she said of the collection, which debuts at FFANY next week. “What you tend to see are totally unwearable, over-the-top styles, or [looks that are] comfortable to the point of forgoing any appealing aesthetic. I’m going for the middle.”
Though price points are still being worked out, Marc Fisher Footwear President Susan Itzkowitz said the 75-to-100-style line is tentatively priced between $80 and $140 and is being targeted to department stores in the U.S., Canada and Mexico in its first season.
“There’s a real niche for a line like this,” said Itzkowitz. “Every part of the collection will be very reflective of Ivanka, [and] it gives us an opportunity to have a beautifully executed line for that classy, contemporary woman. It gives us a whole new dimension to our business.”
While Trump also has partnered with handbag licensee Mondani on a collection for spring ’11 and spun out her jewelry line to wholesale, the Wharton School of Business grad said she’s content — for now — to focus on these ventures.
“I don’t take these partnerships lightly. It’s about creating a sustainable, long-term business,” she said.
This is Paolo....Paolo shoots accessories only for Digital Milano, a photo agency in Milan. This means when someone comes down the runway he’s shooting bracelets, hats, hand bags…maybe if someone else frm Digital Milano isn’t doing them…shoes. Paolo does not speak a word of English except the words; “Como esti” and, also, probaly the words. “This is my spot, no?” We have always said that Glamwire would begin issuing the greatest awards in fashion…and that they would be called…The Paolos (Tm) We are preparing to award out very first Paolo…for best Runway show 2010. We only saw 22 of them…your nominations are appreciated. Our shows…are all below… We will make an 8 by 10 photobased cartoon by Cal Rhodes….with Paolo saying “Ciao” and the winners name and award category and year emblazoned accross the bottom. We will frame one print of the award with minimal but very tastefull matting (maybe no matting….these questions loom in the face of history) with a gilded very chic frame….we will announce the Paolo here first on Feb 28th before midnight. And then present it to the recipient at the appropriate time. Ladies and gentlemen, we at Glamwire are announce the commencement of the greatest award in fashion History….The Paolo for best Runway Show in New York (London Paris or Milan)
Where is the next Great American Jeans Company coming from? Well, Phoenix based photographer J.R. Holy suggests that it might just be coming from Pocono Summit, Pennsylvania. That’s where ParishRFormel, which under Shawn Mosely, since the 1993 has been designing formal wear and then in 2001 , with new partner Kyle Hoesel, started an upscale denim line with fabulous attention detail and a really rocking, ruby red logo that is absolutely dazzling. Also note Mr. Holy’s excellent photography, a key part of the ParishRFormel look. To see more and shop, click here. Fashion. Fashion news.