NEW YORK — Caché Inc. has agreed to acquire Adrienne Victoria Designs, its largest supplier, the company said Wednesday. The deal is to close around June 30.
The acquisition came as the company announced that first-quarter earnings plummeted 91 percent, hurt by soft sportswear sales. The sportswear fashion misses led to higher markdowns and marketing expenses, the company said.
But the purchase of Adrienne Victoria Designs "represents an important strategic fit for us, as it significantly advances our direct sourcing and manufacturing efforts and expands our talent in design, production and merchandising," Brian Wolfe, chairman and chief executive officer, said in a statement.
"This acquisition creates a vertical platform for Caché. Adrienne and Robert Kantor, [AVD] founders, are extremely talented people who will join the Caché team and continue to run the company," said Gilbert Harrison, chairman of investment banking firm Financo Inc., which represented Caché.
The deal will help Caché, owner and operator of specialty stores selling sportswear, eveningwear and accessories, with its next growth phase, which includes its Caché Luxe concept, Harrison said. Marketing Management Group represented Adrienne Victoria Designs.
Caché said that income for the quarter ended March 31 plunged to $145,000, or 1 cent a share, from $1.7 million, or 11 cents, in the year-ago period. Sales inched up by 0.8 percent, to $64.4 million from $63.8 million, and total same-store sales gained 3 percent.
Because of a $1.8 million jump in marketing costs, operating expenses increased to $29.5 million from $26.9 million last year.
The company said it expected second-quarter diluted earnings per share in the range of 20 cents to 24 cents, on estimated sales of $73 million to $75 million. Full-year 2007 diluted EPS are expected in the range of 75 cents to 80 cents, on sales of between $284 million and $294 million.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion