• RICHEMONT SHARES CLIMB: Shares in Compagnie Financière Richemont soared nearly 40 percent on Tuesday, their first day of trading as a stand-alone luxury goods stock. Richemont, which still trades on the Swiss Stock Exchange, closed at 25.90 Swiss francs, or $22.42, up from a pro-forma closing price of 18.73 Swiss francs, or $16.21, a 38.2 percent change. All dollar figures have been calculated at current exchange. Luca Solca, a retail analyst at Bernstein in London, said the luxury-only stock is now more attractive to some investors. Richemont was split in two earlier this month: A luxury company that owns brands including Cartier, Dunhill and Chloé, and the holding company Reinet, whose investments include British American Tobacco.
This story first appeared in the October 22, 2008 issue of WWD. Subscribe Today.
• PACSUN SPURNS BID: Pacific Sunwear of California Inc. on Tuesday rejected an unsolicited buyout offer from extreme sports retailer Adrenalina, saying the bid was “not in the best interests of its shareholders.” Miami-based Adrenalina offered to buy PacSun for $4.50 a share in cash and stock, valuing the retailer at about $300 million, after chief executive officer Ilia Lekach made several unsuccessful attempts to contact PacSun’s ceo Sally Frame Kasaks. “I’m not surprised at all,” said Pali Capital retail analyst Amy Noblin of PacSun’s reaction, adding that she doubted Adrenalina would “be able to secure the financing.” PacSun saw its shares decline 5.3 percent, to $3.60, at the end of trading Tuesday. Shares of Adrenalina dropped 10.3 percent to $1.30.
• NEW DOLCE & GABBANA ORGANIZATION: To optimize resources and continue its U.S. expansion, Dolce & Gabbana Group said sales for both the signature line and D&G will be centralized in the company’s Milan headquarters, starting with the fall 2009 collection. In the U.S., come December, the two brands will be under one roof in New York’s SoHo district. The new 47,000-square-foot U.S. headquarters will house a showroom, a staff dedicated to the brands’ retail operations, a press office and a human resources department, among other things.