NEW YORK — A 110 percent increase in revenues helped catapult Alloy Inc. into the black in the third quarter.
For the three months ended Oct. 31, the New York-based Generation Y direct merchant reported a swing to net income of $11.6 million, or 28 cents a diluted share. That compares with a net loss of $2.7 million, or 11 cents, in last year’s quarter. Sales more than doubled to $93.2 million from $44.5 million.
Sponsorship and other revenues were $52 million, up 309 percent, driven by a larger advertising sales force, a broader client base and a wider range of media services. Merchandise revenues were up 29.9 percent to $41.3 million, reflecting improved catalog circulation and productivity, improved merchandising and a full quarter of sales from Dan’s Competition versus one month last year.
"We enjoyed solid revenue contributions from both our sponsorship and merchandise businesses, with a particularly strong performance registered by our newspaper advertising business," Matt Diamond, chairman and chief executive, said in a statement. "In market conditions that are considered to be challenging, our integrated businesses continue to thrive."
He noted youth spending remains robust and the demographic remains a highly desirable market for advertisers.
As of Oct. 31, Alloy’s consolidated database of Generation Y consumers grew to more than 12.3 million names, of which roughly 4.1 million were established buyers, versus 8.5 million names and 2.2 million established buyers last year.
Diamond is forecasting fourth-quarter earnings before taxes and amortization between $15 million and $16 million, merchandise revenues between $60 million and $62 million and sponsorship and other revenues between $34 million and $36 million. In 2003, he said he is expecting at least $190 million in merchandise revenues and $180 million in sponsorship revenues.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast