NEW YORK — Reductions in its business with Target and investments in its infrastructure translated into lower fourth-quarter and full-year profits at Mossimo Inc.
The Santa Monica, Calif.-based design and licensing company reported that, in the three months ended Dec. 31, net income slid 9.2 percent to $629,000, or 4 cents a diluted share, from $693,000, also 4 cents, in the prior-year period.
Net revenues were up 5.5 percent to $3.2 million from $3 million. The addition of $624,000 in Modern Amusement sales and an increase in royalties and fees attributable to customers other than Target — to $695,000 from $605,000 — more than compensated for a reduction in Target-related royalties and fees, to $1.8 million from $2.4 million.
Edwin Lewis, president and co-chief executive officer of the firm, said on a company conference call, “At Target, our business was down year-over-year primarily to ongoing issues with our plus-size and kids’ categories. At Zellers, we were impacted by continued weakness in the Canadian retail environment. We continued to work with both retailers to improve our performance.”
He said business in Mexico, with Intermodal, “is off to a solid start.”
Lewis added that Modern Amusement has performed better in what he termed “image-building specialty stores. As a result, we have lost some department store doors, but we have gained some within the specialty channel….We continue to believe that Modern represents an interesting opportunity but, again, it is small and will take time to build.”
For the full year, net income dropped 40.8 percent to $2.7 million, or 17 cents, as revenues moved up 3.2 percent, to $20.5 million, overcoming a 5.9 percent drop in royalties and fees.
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