NEW YORK — After a spring characterized by slumping domestic sales, some intimate apparel manufacturers are depending on acquisitions and new product offerings to reverse the trend for fall.
The Warnaco Group Inc. has been among the most active. In the first quarter ended April 3, Warnaco’s intimate apparel sales slipped 3.8 percent to $141.2 million, and management is seeking to revitalize the Lejaby and Olga brands. The drop-off was countered by a strong performance from Calvin Klein underwear.
“Our plans include further expansion in Japan, China, Russia, South America, as well as further penetration in Europe,” Joseph Gromek, Warnaco’s president and chief executive officer, said in May during a conference call with Wall Street analysts after the earnings report.
“We continue to believe that Calvin Klein underwear freestanding retail stores represent an effective way to showcase the full assortment of Calvin Klein underwear in an image consistent with the brand,’’ he said. “We are on track to end the year with over 60 stores in Europe, Asia and North America.”
The company last month opened its second Calvin underwear store in Manhattan.
Management is counting on the introduction of the new JLo line to energize domestic sales. During the May call, Tom Wyatt, who was at the time president of the intimate apparel group, said the company was on track for the JLo line to reach more than 800 department and specialty stores.
“Given the favorable response to the brand by retailers, we are expecting a solid performance by JLo for the back-to- school period,” said Wyatt. “We expect JLo lingerie to contribute $15 million to $20 million in gross revenues in the second half of 2004.”
Wyatt resigned in May for personal reasons, after spending two years commuting to Manhattan, where Warnaco has its headquarters, from Birmingham, Ala. He was succeeded in June by Helen McCluskey, who was president of the Special Markets Group of Liz Claiborne Inc.
Movie Star Inc. is another company that saw sales plunge heading into spring, more dramatically than Warnaco. In its third quarter ended March 31, the New York-based intimates manufacturer saw sales decline 28.1 percent to $12.2 million.Since then, the company has made moves that it hopes will reverse the trend. On July 26, the company announced it had secured a new $17.5 million credit facility with HSBC International, funds the company said would be used for “working capital requirements.” Only days later the company announced it had reached an agreement to acquire New York-based retailer Sidney Bernstein & Son Lingerie Inc.
“We are excited to be acquiring Sidney Bernstein & Son as we have been actively pursuing various business opportunities that will contribute to enhancing future financial results,” said Melvin Knigin, chief executive officer, in a statement. “Last year, their sales were in excess of $18 million.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews