Abercrombie & Fitch is attempting to cash in on a booming lingerie market with its fifth concept, Gilly Hicks.
Inspired by the city of Sydney, the first store will open in the Natick Mall in Massachusetts on Jan. 21. The company made a presentation at a Needham & Co. investor conference Thursday, briefly mentioning the new concept.
While management has yet to reveal long-term plans for Gilly Hicks, Dana Telsey, chief research officer of Telsey Advisory Group, said during a same-store sales conference call on Thursday that she expects the company to open five of the lingerie stores in the U.S.
Abercrombie & Fitch will be up against American Eagle Outfitters' already successful aerie business and Victoria Secret's Pink line.
"There are few who do sexy better than Abercrombie & Fitch," said Christine Chen, specialty retail analyst at Needham & Co. "I think it will be a store kids love and parents hate."
In its most recent quarter, the teen retailer posted a 15 percent jump in earnings to $117.6 million, or $1.29 a diluted share, from $102 million, or $1.11, in the year-ago period. Sales for the quarter grew 13 percent to $973.9 million from $863.4 million, while total same-store sales increased 1 percent.
On Thursday, the retailer said December comps declined 2 percent.
"Our negative 2 percent comps were at full price," said Michael Kramer, chief financial officer of the apparel company at the Needham & Co. conference. "You will never see a huge sale sign at the front of the store. We will never, ever buy short-term sales because you will get hit with it long term."
Near term the company is banking on its Hollister and Reuhl divisions, new bath and body line and Abercrombie & Fitch's international expansion, as growth vehicles.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)