The Wall Street Journalreports that men's clothing retailer Jos A. Bank reported profits up 40% on increase sales. Same store stales for the retailer rose 6.2% for the quarter ending August 1st.
"With this quarter's results, we have achieved earnings growth in 31 of the past 32 quarters when compared to the respective prior year periods, including 13 quarters in a row," said President and Chief Executive R. Neal Black.
The company has an advantage in its direct sourcing arrangement with vendors, and it has been more price competitive than rivals. Last month, Jos. A. Bank said it would accelerate store openings next year, with a hopeful eye on rent discounts.
For the quarter ended Aug. 1, the company posted profit of $12.5 million, or 68 cents a share, up from $8.9 million, or 48 cents a share, a year earlier. Net sales increased 9.8% to $167.7 million as same-store sales rose 6.2% and direct-marketing sales fell 6.7%.
Men still need clothes as they hunt for jobs and Jos. A. Bank has been boosting revenues with promotions, such as the $199 suit sale they ran earlier this year.
Emerisque has emerged as the leading
contender to purchase Hartmarx out of bankruptcy. Emerisque is a London-based private equity firm which has reportedly offered $85.5 million in cash and notes for all of the assets of Hartmarx.
The bankrupt firm is seeking approval of bidding procedures for the required court auction to allow for the possibility of better offers. The deadline for bids is June 25, with the auction scheduled for June 30 at the Chicago offices of the Skadden, Arps, Slate, Meagher & Flom LLP law firm.
If the deal doesn't go through, Hartmarx would be responsible for paying Emerisque a $1.65 million break-up fee and reimbursing the London firm for $2 million in expenses.
Emerisque on Wednesday submitted what it termed its "third and final bid in a process which has been lengthy and expensive for all parties" and attached a Thursday expiration date to its offer.
It's not a done deal by any means. Many other stumbling blocks could arise before the transaction is finalized.
Ryan Seacrest and the Custom Tailored Burberry Suits
American Idol wardrobe stylist Miles Siggins takes us on a tour of Ryan Seacrest's custom tailored Burberry suits. The suits are custom-fitted for Ryan, so he does get to keep them after the show is over. The suits are made in London, flown over by courier and hand-delivered to the show. Take a look:
The workers union that staffs the Cleveland factory for Hugo Boss says that Metzingen, the German owner of Hugo Boss, is going to close the factory putting workers out of a job.
The factory, which has served as the center of Boss' American suit production and distribution for 20 years, may go dark as soon as April 2010 when the union employees' contract expires, according to leaders at Workers United. The facility, which produces 150,000 suits a year, employs more than 400 workers, 320 of which are union members.
Responding to the union's contentions, Philipp Wolff, director of communications for Hugo Boss AG, said, "We have not made any strategic decisions. We are evaluating our global business needs in regards to customer demands and will communicate any decisions once they are finalized."
According to Dallas Sells, director of the Ohio State Council for Workers United, attorneys representing Hugo Boss recently met with union leaders to discuss closing the factory and initiate negotiations for union employees' severance.
Sells said the membership has refused severance and will fight the facility's closure. "Without our consent, the operation has to continue in some form," Sells said, noting the contract could prevent shutting the facility completely.
According to the union, Hugo Boss will also move its distribution facility to Savannah, Georgia, which will eliminate more jobs. The factory in question has been in business since the 19th century making suits. Hugo Boss took over the facility in 1989.
Italian men's fashion retailer Brioni is known for its luxurious suits and ties. But the firm is really pushing the line on luxury with its luxury suit line that features suits that retail for up to $43,000. That's a lot of money for one suit, so, is it made of spun gold? Close enough. The specialty suit line is made to measure from rare fibers such as vicuna, pashmina and Qiviuk, which is the inner down of the Canadian Arctic Muskox. The line launched in October, just as the bottom was falling out of the world economy. But the suits are selling.
"The timing was not fortunate for us," says Andrea Perrone, Brioni's co-chief executive. But Mr. Perrone decided to go ahead, figuring it would send a reassuring signal to customers that Brioni was refusing to compromise on "high-quality initiatives."
As manufacturers and retailers hunker down for what could be a prolonged recession, Brioni and a handful of other luxury-goods companies continue to roll out new products at exorbitant prices. This past fall, French luxury label Hermès introduced limited-edition silk scarves inspired by works of the artist Josef Albers at an eye-popping $2,800 each -- the most expensive silk scarf Hermès has ever offered. Van Cleef & Arpels last month launched its 120-piece couture jewelry line, Les Jardins, with prices as high as $2.5 million. Kiton, the Italian designer label, says an $8,125 cashmere-and-vicuna sport coat will be arriving at its stores in a few weeks.
These products and price points were in the works long before consumer spending fell sharply this fall. But the labels behind them are taking comfort in the belief that their target customers -- the wealthiest 1% to 2% of consumers world-wide -- are still spending, even if they are buying fewer things. Individuals in this group, whom Mr. Perrone calls the "elite of the elite," have bought 30 of the $43,000 suits.
The outlook for high-end labels, it turns out, depends on where in the luxury hierarchy they are located. Retailers took a holiday beating in December, and consulting firm Bain & Co. expects demand for luxury goods this year to fall by 3% to 7% overall. But at the market's upper-most crust -- which Bain defines as 70 brands including Loro Piana and Harry Winston, as well as Hermès, Van Cleef and Brioni -- sales for 2009 are expected to hold steady or grow moderately, following growth in 2008 of 8%, says Bain partner Claudia D'Arpizio. Very wealthy people may not be buying as much as they used to, but they aren't reducing their standard of living, she says.
Bain expects sales to continue to decline in what he calls the "aspirational" brands, such as Gucci, Louis Vuitton and Coach which target upper middle class customers. But the ultra rich or the elite elite as he calls them, aren't cutting back on spending. They are cutting back on the number of items they buy but the items that they do buy are of the highest quality. Hence, the $43,000, custom tailored suits. The problem for the economy is that three quarters of all luxury spending is in the aspirational class. And spending at the level has dropped off a cliff.
The Wall Street Journal 
Italian men's fashion retailer 
