Lululemon Soars and PVH Banks on Tommy Hilfiger
PVH TO BANK ON TOMMY HILFIGER THIS YEAR
Apparel maker PVH forecasted full-year adjusted profit and sales above Wall Street expectations, banking on higher demand for its Tommy Hilfiger branded apparel and accessories. The New York-based company has been giving lesser discounts to maintain its premium brand cachet while collaborating with social media influencers such as Kendall Jenner, Shawn Mendes, and Zendaya to boost its Tommy Hilfiger and Calvin Klein brands among millennial and Gen-Z shoppers.
"The quarter has been stellar. Tommy Hilfiger far outperformed our expectations, " said C.L King and Associates analyst Steven Marotta.
Sales at Tommy Hilfiger, the biggest contributor to PVH's sales, rose 2.3 percent to $1.2 billion during the reported quarter. The company expects the brand's sales to grow about 6 percent in full-year 2019.
FUR BAN IN NYC? New York may soon join the likes of San Francisco, Berkeley, Los Angeles, and West Hollywood by banning the sale of fur thanks to two new efforts. New York Assemblywoman Linda Rosenthal announced a bill, if enacted, that would ban the manufacturing of fur and also make it illegal to “sell, offer for sale, display for sale, trade, give, donate, or otherwise distribute a fur product by any means in the state,” beginning on January 1, 2021. Read More |
TARGET'S NEW CLIMATE GOALS Target has taken its entire supply chain into account when calculating greenhouse gas emissions, a spokesperson told Supply Chain Dive in an email, adding the supply chain represents 96% of Target's total emissions. This week the company released new climate goals that not only reduce its own carbon emissions targets, but also require 80% of the retailer's suppliers set science-based reduction targets by 2023. Read More |
LULULEMON EXCEEDS EXPECATIONS
Shares of Lululemon jumped more than 10% in after-hours trading this week after the company reported fourth-quarter results that topped Wall Street estimates. The company's full-year profits guidance also topped company expectations. In a January release , the athletic-apparel company expected net revenue of between $1.14 billion and $1.15 billion, up from its prior forecast of $1.115 billion and $1.125 billion.
The Canadian retailer also authorized a $500 million buyback program, adding to what looks to be another record year for corporate buybacks in 2019. In the fourth-quarter, the company bought back 1.5 million shares of its stock at an average cost of $120.99 per share!
As Lululemon continues to soar, it's letting retail know that athleisure is here to stay.
OPPORTUNITIES IN LUXURY
It's no small feat to weed out even the most sophisticated counterfeits when it comes to resale luxury platforms. As they grow rapidly, so is the pertinent need for authenticators. While these new employment opportunities are on the rise, this poses an arduous task for HR, since the relatively new job description can take on the form of gemologists, horologists and art curators.
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THIS WEEK'S BRIGHT SPOT
This week Lacoste celebrated its new capsule, a collaboration with the late Keith Haring, with a party at Pioneer Works in Brooklyn. In addition to celebrity appearances, a special dance performance by Salif Lasource and NYC Hit Squad, attendees were treated to a first look at the reinstallation of Haring’s Boys Club Mural (1987), a piece has not been seen in public for over a decade.
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