Using figures supplied by textile workers' unions in Bangladesh, the Trades Union Congress (TUC) calculated that doubling wages from the minimum wage of $41.50 per month would only add 4 cents to the cost of an average t-shirt. The figure is based on the idea that workers are expected to make six t-shirts an hour, for which they are paid 24 cents. The Trade Unions Congress is a federation of … [Read more...]
UK’s Marks and Spencer Reports Worst Performance in 4 Years
May 22, 2013 by
After two consecutive years of falling profits, the UK’s Marks & Spencer is under increased pressure to defend its strategy. Clothing and homeware sales have dropped for seven consecutive quarters, and the company posted a 6% drop in profits during the fiscal year ending March 2013—its worst performance in four years. Marks & Spencer’s food business, however, has not only … [Read more...]
Target Profits Plummet, Stocks Follow Suit
May 22, 2013 by
Target disappointed investors this morning with first-quarter earnings significantly below expectations: year-on-year, the quarter’s net earnings fell from $697 million to $498 million, a drop of 28.5%. As recently as April, Target had predicted that earnings would fall from $1.04 last year to 87 cents per share. The retailer failed to meet even its own benchmarks, falling 5% to 77 cents per … [Read more...]
Old Faithful: Even With Change, Denim Remains A Constant
May 22, 2013 by
Back in 1873, the airplane had yet to be invented, horses were the most popular mode of transportation, indoor plumbing was a luxury -- and denim jeans were born. While so many other forms of modern living have changed, denim endures -- and remains as popular as ever. The world can thank Levi Strauss and Jacob David for using copper rivets to strengthen the pockets of denim work pants, … [Read more...]
Guest Editorial: Beanie Baby or Barbie? How to Spot the Difference between Fads and Trends
May 22, 2013 by
How can potential investors tell if a product is more Vera Bradley bag or mismatched socks, Atkins or organic? The investment can be profitable either way, but knowing the difference upfront will help determine the correct multiple and drive favorable post-deal economics. In general, there are three key differentiating factors between a fad and a trend. Fad vs. Trend Framework Reason for … [Read more...]
Retailers Come Clean as Info Released On How and Where Products Are Made
May 21, 2013 by
In response to growing consumer demand to know how and where clothing is made, some retailers and brands are now providing that information. Prompted perhaps by the recent collapse of a garment factory in Bangladesh which killed more than 1000 people, a new transparency is developing in many aspects of the manufacturing of apparel where once those details were hush-hush. Nordstrom may add … [Read more...]
Bankrupt in Time For Labor Day? JC Penney Reports Doubled Losses
May 21, 2013 by
JCPenney Inc. has reported doubled losses in its first quarter, sinking from losses of $163 million between February to May of 2012, to losses of $348 million in the same three months of 2013. If the company continues to lose money at its current rate, analysts predict the ailing department stores will be bankrupt by Labor Day. JCPenney execs attribute $72 million of their first-quarter losses … [Read more...]
Apparel Prices Fall for First Time in Two Years
May 20, 2013 by
Apparel prices fell in April for the first time since March 2011, according to Consumer Price Index Data released yesterday by the U.S. Department of Commerce. Most of the decline was due to a plunge in childrenswear prices. Menswear prices bucked the overall apparel trend, as younger fashion-conscious men snapped up premium-priced dressy sportswear in bright colors and tailored pieces in newer … [Read more...]
Penney Pitches Lenders; Needs More Cash For Rebuilding
May 17, 2013 by
J.C. Penney's CEO Mike Ullman says he needs more cash for operations, renovations and rebuilding the company's competitiveness in a dog-eat-dog retailing market. Ullman, formerly Penney's top executive, takes back the CEO's chair after a 25 percent decline in sales for the last fiscal year. Last year's loss hit almost $1 billion. Penney's initial loan of $1.75 billion, arranged by Goldman Sachs, … [Read more...]
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