GOODY’S DECLINE: Shares of Goody’s Family Clothing Inc. fell 17.3 percent in Nasdaq trading Tuesday after the company said first-quarter earnings would be “significantly lower” than the 24 cents a share in last year’s comparable period. Robert Goodfriend, chairman and chief executive officer, said a variety of ills, including cold, wet weather and soaring gas prices, combined with an early Easter forced the firm “to be more promotional in an effort to stimulate sluggish sales.” The announcement, made late Monday, touched off selling Tuesday that reduced the price of a share of Goody’s by $1.89 to $9.05. Goody’s first quarter concludes at the end of April.
HUMAN FACTOR: François-Henri Pinault, a day after taking over as chief executive officer of PPR from Serge Weinberg, on Tuesday named Alain Luchez senior vice president of human resources of the French luxury and retail conglomerate. Luchez, who will also become a member of PPR’s executive committee, succeeds François Potier, who is leaving. Luchez, 52, was previously senior vice president of human resources at PPR’s Redcat’s mail-order division.
SAFEGUARD STAY: The U.S. Court of Appeals for the Federal Circuit has deferred until May consideration of the U.S. government’s motion to stay a preliminary injunction that has suspended its review of China safeguard petitions for more than two months. The court is to hear oral arguments in the case at that time. The deferral was the latest development in a legal battle between importers opposed to safeguard quotas and challenging federal authority to impose them and the federal government. It is another disappointment for a coalition of domestic textile and fiber producers and organized labor that had hoped the appeals court would overturn the injunction and allow 12 threat-based petitions targeting $1.9 billion in Chinese apparel and textile exports to move forward.
This story first appeared in the March 23, 2005 issue of WWD. Subscribe Today.