American Eagle Outfitters INC. said Tuesday that its money-losing Martin + Osa retail concept is shutting down. The company said “after an extensive evaluation and review of strategic alternatives” the 28 stores and online business are expected to be substantially closed by the end of the second quarter. “Closing Martin + Osa was a difficult decision, particularly in light of the progress that was made over the past year,” said Jim O’Donnell, chief executive officer. “However, it is in the best interest of our company and stakeholders to focus our efforts on the brands that capitalize on our strengths and have the highest potential. Creating new brands is never an easy endeavor. The valuable lessons and experiences we gained will serve us well, as we continue to develop and launch new lifestyle brands.” The Pittsburgh-based retailer said it plans to focus on its American Eagle, aerie and 77kids concepts. Martin + Osa, which offers contemporary apparel and accessories for men and women aged 28 to 40, has failed to gain traction since launching four years ago.The concept generated an after-tax loss of about $44 million in fiscal 2008, including an estimated noncash impairment charge of $11 million, net of tax.In December, the company said it was “evaluating” the future of the concept although same-store sales had increased and the bottom line was better. The next month, Martin + Osa president Laura Dubin-Wander departed and was not replaced. As a result of the closure, the company expects the fiscal 2010 cash outflow, net of associated tax benefits, to be about $10 million to $40 million. This is comprised of pre-tax charges of $32 million to $77 million for severance and lease-related and other charges. In addition, the company estimated $29 million of noncash, pretax impairment charges and inventory writedowns. The charges are expected to be recognized in the first and second quarters. American Eagle will report its fourth-quarter results today.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim