Europe Watch: Bloc Party … French Pinch … German Blues
BLOC PARTY: Zara is boosting its presence in Eastern Europe. The Spanish fast-fashion chain, part of the Inditex retail group, said it opened a 20,000-square-foot flagship in Budapest on Friday, a week after opening its first store in the...
BLOC PARTY: Zara is boosting its presence in Eastern Europe. The Spanish fast-fashion chain, part of the Inditex retail group, said it opened a 20,000-square-foot flagship in Budapest on Friday, a week after opening its first store in the Hungarian capital. Meanwhile, next Friday the chain plans to open its first boutique in Lithuania, in the capital of Vilnius. Zara has been making a concentrated push into the former Communist bloc. It recently opened units in the Czech Republic, Slovenia and Slovakia.
FRENCH PINCH: The French spent 1.4 percent less on clothes in September compared with a year ago, according to a study by the Institut Français de la Mode. The hardest hit were hypermarket operators; sales fell 9.2 percent in chains such as Carrefour and Auchan. Sales at fast-fashion stores dipped 2.3 percent in the month and sales fell 1.1 percent among independent retailers. But not everyone lost. Clothing sales at French department stores rose 5.6 percent.
GERMAN BLUES: It’s not getting any better in Germany, either. Apparel sales in the country contracted 2 to 3 percent in the first 10 months of the year, according to the German Apparel Retailers Association, BTE. Sales were down 5 percent in the same period a year ago, and retailers are worried. “Germans fear for the future,” explained Klaus Magnus, president of BTE. “They buy less.” Some are expecting a wave of consolidation as major chains, such as Karstadt, have fallen on hard times.
KarstadtQuelle Group reported huge third-quarter losses last Wednesday and adjusted its full-year forecast further downward. Third-quarter EBTA dived to a loss of 1.1 billion euros, or $1.4 billion. KarstadtQuelle pointed out that quarterly earnings were especially hard hit by special one-off factors related to the restructuring and realignment of the group. After adjusting for these special factors, EBTA for the quarter amounted to a loss of 31.1 million euros, or $39.5 million, versus 31.4 million euros, or $39.9 million, in the same period in 2003.
The firm is projecting an operating loss of 280 million to 295 million euros, or $355.6 million to $374.7 million, for 2004. Group sales are expected to fall 7 percent, compared with the 4.5 to 5 percent dip previously forecast. — Melissa Drier
“I see things on the hanger and I’m, like, ‘I never knew that color worked on me.’ It’s things you necessarily wouldn’t choose to wear, but once you put them on, you see why Janie is who Janie is." — Lily Collins on working with former "Mad Men" costume designer, Janie Bryant on creating looks for her role as Celia Brady's in Amazon series, "The Last Tycoon." 📸@jilliansollazzo #wwdeye
EXCLUSIVE: Sarah Rutson has been tapped to Build New American Fashion Group. The parent of Joie, Equipment and Current/Elliott hired the merchant to rev up its brands and expand its portfolio into designer, beauty and lifestyle categories. Read more on WWD.com, link in bio. #wwdfashion
Michael Kors' $1.3B Jimmy Choo deal has the company squaring off with Coach Inc. as both seek to build American powerhouses. Coach bought Stuart Weitzman in 2015 and Kate Spade just two weeks ago, but Michael Kors' acquisition may be putting pressure on its rival in the new push for scale. #wwdnews (📷: George Chinsee)
Meet actress Lucy Boynton, who plays opposite Naomi Watts in the recently released Netflix series "Gypsy." Boynton stopped by WWD to talk about her upcoming projects and her nomadic lifestyle. Get all the details on WWD.com. #wwdeye (📷: @dandoperalski)