November 2007 Archives
1:19 p.m.
Major Luxury-Goods Conglomerate PPR, which includes such famous brand names such as Gucci, Yves St. Laurent, Sergio Rossi and Balenciaga, as well as newly acquired sports brand Puma, is feeling the pinch of the global credit shakedown as Credit Suisse downgraded its rating of the PPR stock from "outperform" to "neutral", sending shareholders scurrying for the exits.
PPR Cut by Credit Suisse on `Conglomerate' Concern
"PPR SA, the French owner of Gucci Group, was downgraded by Credit Suisse, which said the company deserves a ``greater conglomerate discount'' after expanding its non-luxury business by acquiring Puma AG this year . . . ``The group is becoming less, rather than more, strategically focused,'' the analysts wrote. ``We continue to feel uneasy about the widening scope of the business.''
That's a no-confidence vote from the analysts who believe that PPR has expanded into a volatile and extremely competitive marketplace at just the wrong time.
"According to some analysts, another acquisition is the last thing PPR needs . . . Earlier this month, Societe Generale analyst Nathalie Longuet downgraded PPR to "sell" from "hold" after concluding that investing in new acquisitions, as well as a potential decline in the demand for luxury goods, would hurt the company's earnings going forward."
Meanwhile, internet luxury retailer Net-A-Porter today initiated a post-Thanksgiving sale on a spate of fall fashion goods. A surprising number of allegedly "must-have" items are seeing 40% to 50% price cuts, and this is even before the expiration of the holiday party cycle for which these pieces have been clearly designed. I've seen Matthew Williamson dresses and Marc Jacobs bags go on sale in the shopping doldrums of February, but have never seen them so steeply discounted just days after Thanksgiving.
Are retailers blinking?
U.S. Economy: Home Sales Slide More Than Forecast
"Defaults on subprime mortgages have prompted banks to tighten lending standards, while foreclosures add to a glut of unsold properties that's putting pressure on home prices. Lower property values raise the risk that consumers will curtail spending, making businesses more cautious about investing and compounding a slowdown in economic growth, economists said . . . 'I expect we're going to see a pretty significant slowdown in consumer spending in the first half of next year,' said Christopher Low, chief economist at FTN Financial in New York."
10:33 p.m.
The big news was that retail sales were up 4-5% from Black Friday 2006, but the deep dark lining around that silver cloud is that retailers slashed prices far more aggressively this year than last, and that shoppers lined up to get at those bargains because they have less money to spend this year than previously.
Holiday Sales Fail to Meet Forecasts With Discounts in Demand
"U.S. retailers, offering holiday discounts of 50 percent or more this week, may see profits erode even as customers flock to stores . . . Wal-Mart Stores Inc. will mark down toys and TVs online through this week, while Kohl's Corp., the fourth-biggest U.S. department store, sold jewelry at 60 percent off during the first days of the holiday shopping season . . . More than two-thirds of online retailers surveyed by the Washington-based NRF offered Internet discounts or free shipping to entice consumers. Barnes & Noble Inc. was selling books for as much as 40 percent off, while Circuit City sold digital cameras for 30 percent less."
Yeah, sure, retail sales were up, but how about profits? Slashing prices 50%-60% in the first day of the Christmas shopping season smells like an act of desperation to me, though it seems a couple of dimwitted pundits have invented a creative narrative to fit their new spin suits:
ED MORRISSEY WONDERS WHY THE GOOD NEWS ABOUT RETAIL SALES is being ignored
"As a presidential election draws near, the opposition party inevitably begins talking about how poor the economy has begun. This election has seen an early start to this kind of talk, recalling the 2004 rhetoric about how the rebounding US economy then resembled the Great Depression -- laughable in retrospect and educational in review. It appears that Christmas shoppers have both laughed and learned this weekend as well."
Translation: "Psst, it's a political conspiracy cooked up by the Democratic media to make Republicans look bad, pass it on!"
You know, maybe the "good news" about retail sales is being "ignored" because when you take a closer look at the numbers, it isn't really good news -- more shoppers waiting in line for hours in the cold just for the opportunity to rush at deeply discounted merchandise does not inspire optimism from sane analysts. But what did I expect? These are the same people who look at a rapidly depreciating dollar and crow about how great it is for exports . . .
4:32 p.m.
I'm a little more than a week late to the news, but one of my favorite young designers, Marios Schwab, was awarded the Swiss Textiles Award in Zurich, after also winning Best New Designer at the British Fashion Awards in 2006.
The Swiss award is financially lucrative (100,000 euros to the winner) and intended to help winning designers purchase materials and access financial services that will assist a breakthrough into the global fashion arena. Schwab is only 30 years old.
Like the majority of his peers, Schwab explored bright colors, flowing patterns and softer silhouettes for his Spring/Summer collection. For the most part, Spring 2008 is shaping up to be much more womanly, more sexually sophisticated than the girlish, almost childish, lines from last year. I wouldn't be particularly bothered if I never saw another baby-doll dress in my lifetime.
5:31 p.m.
Along with the eighties pop-culture revival comes a renewed interest in incorporating masculine elements into women's clothing to offer traditionally feminine shapes some extra edge and power. Here's an article from India that addresses the topic:
Dressing up, the androgynous way
"Mix the male and female look this season and voila, you're up there on the style-o-meter. On the international fashion radar, the androgynous has been termed the 'it' trend of Fall '07 . . . British fashion designer Paul Smith, whose recent collection epitomizes the look, has warned that the trend should not be taken literally. "Androgyny doesn't have to mean a buttoned-up shirt, a tie and a blazer," he has said in a magazine interview. "Women could wear a big masculine coat with a little vintage lacy shirt, or a little lace dress with a large sweater."
Perhaps the increasing popularity of the clutch as the new bag of choice is one of the ways to reference this androgyny -- opting to carry a wallet type item in hand rather than the huge and more traditional shoulder bag or tote.
9:08 p.m.
If the following article is any indication, global luxury groups are in for a bumpy ride come 2008 / 2009:
At Subprime Event Too Early to Tell Who'll Survive
"The subprime crisis, which has claimed the jobs of three chief executive officers and prompted more than $45 billion in writedowns at the world's biggest banks, may end up spilling into 2009 . . . ``These events tend to become deeper and play out longer than most people initially expect,'' says Michael Mayo, an analyst who covers securities firms at Deutsche Bank AG in New York. ``This is one of the slowest-moving train wrecks we've seen.''
And then there's this:
Slowing Economy Proves Fitzgerald Wrong: Rich Aren't Different
"Affluent consumers, pinched by shrinking stock portfolios, falling property values and smaller bonuses, are behaving like their less-well-off peers: They're reining in spending . . . That portends a steeper slowdown than originally forecast for the U.S. economy, or even a recession, because the richest fifth of American households accounts for almost 40 percent of consumer spending, the main engine of economic growth."
Maybe Prada should rethink that IPO idea . . . again.
9:27 p.m.
And this is just another brick in the wall:
"The likely bursting of the Chinese stock market bubble will probably depress consumer confidence and spending as well as business investment. And the fall could be great since Shanghai shares now sell at about 55 times earnings after tripling in price in the last year, compared with 18 times for the S&P 500 . . . And with U.S. consumers likely to end their 25 years of borrowing and spending and mount a saving spree as American housing collapses, exports to the U.S., and hence growth in local spending in Asia, will be severely restricted."
Fendi just recently held their Spring 2008 fashion show on China's Great Wall. Do you think that Western luxury groups are arriving at the party just as all the cool kids are getting in their cars to leave?
6:20 p.m.
There's been rumblings of discontent in fashion blogs and fashion reviews over the spring and summer about the gargantuan proportions that handbags and totes are beginning to achieve, with many writers and shoppers wondering if it's even possible for normal human beings to carry something any larger:
This Bag is Too Big: Marc by Marc Jacobs Lovely Behati Bag
" . . . the Lovely Behati was right in front of my eyes and it was beautiful. It should have been a moment of retail perfection, I should have been euphoric, but after the initial delight of seeing it in the flesh, reality set it. Though "lovely," that bag was freaking gigantic!"
Everywhere you look, women are at risk of being swallowed whole by the lavish maws of totes, hobos, satchels and shoppers that increasingly resemble exotic diaper bags more than a must-have fashion accessory.
But when the pendulum swings too far, there's always a blowback in the collective psyche; hence, the introduction of the oversized clutch. A larger bag begs to be filled, while an oversized clutch whispers sweet promises of freedom from the sweat and drudgery of lugging around the kitchen sink in a bag:
I Am Fashion: Oversized Clutches
"On a recent shopping spree, I was bored, waiting outside the changing room, and I started picking up the bags around. After a few bags, I picked up this large Marni clutch, looked into the mirror and got that feeling -- that unexpected, novel feeling. After carrying large handbags during daytime for so long, it was SO refreshing to carry this clutch . . . . it's such a nice feeling to carry a bag with only the things you actually need, instead of the ten million random, useless things you probably have in your bag."
My friend Louise said pretty much the same thing when we talked about the possibilities of the clutch for daytime use. It was almost as if leaving behind the paperback novel, the notebook, the collection of ballpoint pens, packs of gum, aspirin bottle, hand lotions, sanitizing wipes, hair products, backup YSL cosmetics kit and extra pair of Wolford tights was a positively revolutionary (and exceedingly welcome) idea.
Jalda has forged ahead with a number of colors and skins for their line of fold-over "Bean" clutches that convert to mini-totes in a pinch. At 9"x5"x1" they're roomy enough to keep you out of trouble while still svelte enough to transition from day to evening use. Below are photos of their Pony-skin and Python skin models:
Fendi is making waves for the spring with its collection of oversized baguettes, which look more like just regular sized shoulder purses to me -- at least what used to pass for a regular sized shoulder bag before all the fashion houses took the blue pill and jumped down the rabbit hole into waaaay out-of-proportion land. What makes their new big baguettes even better is the slavish devotion to the eighties revival trend. Just take a look at the colors! I want my MTV!
Chloe is also jumping on the smaller-is-better trend and issuing a trimmed down line of shoulder bags that offer plenty o' room coupled with plenty o' style. Their Eddie Leather Shoulder Bag is a delightfully liberating 7"x5"x2" while their Heloise Quilted Bag (which I've mentioned before) has chiseled away the excess bloat that recent designers have tacked onto the poor unsuspecting shoulder bag model to reveal a lean, mean fighting machine in a giddy, patent orange package.
And then, of course, there's always the trend-blazing, fashionably spot-on Jimmy Choo with a functional for day yet sublimely stylish for evening fold-over patent clutch with chunky hardware and wristlet strap. Below are photo slices of three different colors offered:
Who wouldn't opt for one of these sleek babies in the hand over some Godzilla-sized tote straining at the neck, shoulder and arm?
8:32 p.m.
Clash of the Titans? McDonald's Eyes Ballooning Coffee Market
"After the success of its upgraded drip coffee -- which even managed to snag a thumbs-up from testers at Consumer Reports earlier this year -- the fast food chain known for super-size meals is gearing up for a massive expansion into the world of lattes . . . Restaurants will offer lattes, mochas, cappuccinos and espressos with a choice of different flavorings and milk. Industry watchers say the drinks cost about 50 cents less than at Starbucks."
Many are the times I've been on a road trip, driving round and round in a vain search for a Starbucks in order to quench my caffeine jones while passing by numerous McDonald's stores in the process. I'm not too much of a snob to run into a fast-food joint if it offers a decent latte, and since McDonald's is already frickin' everywhere, it certainly would up the convenience ante by a major quotient.
The article goes on to quote Starbucks Chairman Howard Schultz engaging in some hot-air about how he's not worried about the competition, but if were him, I'd be shaking in my shoes. We're not talking Tully's here -- McDonald's doesn't have to go out and build a bunch of coffee shops to compete against Starbucks because McDonald's already has more locations across the country, and the world, than Starbucks can ever possibly hope to match . . . and they serve real food, too! Not just a bunch of scones, muffins and cold sandwiches.
Yeah, McDonald's isn't the first place I think of when I consider going to a coffee shop and lounging with a book and a latte, but give 'em some time. Profit margins from coffee drinks are even higher than hamburgers and fries, and now that they offer WiFi in their restaurants, I could easily be persuaded to say, like, "Starbucks who?"
Cuz, really, when all is said and done, it's not about green awnings or golden arches, it's about feeding the latte monster. McDonald's might possibly do that just as easily, and even as well, as Starbucks.
Roberto Cavalli debuted his line of cheap fashion wear for fast fashion chain H&M, and the crowds ate it up like a pack of starving tigers set loose in your local Sizzler!
In New York:
The Fashion Bomb Does...Roberto Cavalli @ H&M
And in London:
Roberto Cavalli at H&M: The queues, the scrum, the madness!
Cavalli's H&M collection sells out
There are even stories of ill-mannered shoppers scoring coveted items from the very dressing rooms of unsuspecting targets:
Roberto Cavalli: Beware the clothes-nappers
"This week, it was reported that Linzi Stoppard, daughter-in-law of playwright Tom, was so desperate to obtain a £200 gold beaded Roberto Cavalli dress from H&M that she resorted to clothes-napping: she slipped her hand into another woman's changing room and whipped the frock she wanted from the hanger."
I was talking just last week with a friend of mine who was bemoaning designer Cavalli's move into low-end, mass-produced chic: "Why?!" she wailed. "Why is he doing this? He doesn't need the money, he doesn't need the fame! Why is he tarnishing a lifetime of work in the couture field with this?"
I had to remind her that while she may think he doesn't need the money, perhaps HE thinks he could use it just fine, and believe me, I'm sure he's making bank off this endeavor -- and what with animal prints pretty much played out in the high-end lines (look for them to mostly disappear from the runways after this season), Cavalli, the king of the leopard print bag and the tiger striped dress, has nowhere else to go but way way way down the fashion food chain to find a customer base still willing to strut about in yet another tired old zebra print blouse.
Don't get me wrong, there's much to like about Roberto Cavalli's creations (I nabbed Louise a pair of these sensational, laser-cut pumps this past spring), but methinks his animal print fetish has finally worn out its welcome in polite fashion circles. Don't believe me? Just read this:
"Mr. Cavalli has boiled down his signature looks for the masses into what you could call the Cavalli DNA. Unfortunately, that would be leopard prints for women and pimp wear for men. . . . Looking at a $249 long-haired fake fox bomber with a wide, excessively studded leather belt, there's really not much difference from what you might find under the "street walker" section of the (Halloween) costumes on sale at Ricky's."
Judging from the sold-out frenzy at H&M's global array of stores, perhaps it's best not to underestimate a young, mainstream, middle-class girl's desire to dress like a cheap Italian hooker.
"We'd only do this for Cavalli. We love him," said Cigdem Keles flushed and bright eyed after fighting off other shoppers to grab more than 500 pounds ($1,050) worth of clothes."
And it's unsolicited praise like this that's got Roberto grinning from ear to ear. H&M's sales for November are already predicted to spike due to what analysts are calling "The Cavalli Effect" . . .
4:32 p.m.
Say the name "Burberry" and you're likely to conjure an image of khaki trench coats and prim tweed suits, but Burberry is your grandmother's brand that has now gone modern with a vengeance, pushing aside the emphasis on staid wardrobe styles and refocusing on the bread and butter of every brand with respectable world wide aspirations: accessories!
Bags, bags and more bags, plus umbrellas, wallets, cuff links, caps, scarves, gloves, boxers, belts and socks. Pretty much anything that's not a dress, shirt, skirt or pair of trousers contributes a greater good to a company's bottom line by crossing stylistic and geographical borders without the difficulty of needing to fit a wide variety of shoulders, hips, arms, necks, legs and backsides. I mean, a blouse that fits a South Side London girl is not going to play well on physiques in Tokyo, but a studded leather shoulder bag bridges all continents with ease.
UK: Burberry half-year profits climb 31%
"Burberry Group's profit for the six months ended 30 September climbed 31%, with luxury handbags a key revenue driver . . . Reported revenue increased 15% for the interim period, reaching GBP (British Pound) 449.1m, with accessories including handbags representing 31% of sales. Currently, luxury handbags in the group's European and US retail stores account for 50-60% of all handbag sales compared to less than 40% a year ago, and less than 5% 18 months ago."
Charge cards to the rescue!
If you've been wondering why you're seeing new luxury stores cropping up that look more like shrines to the handbag than a proper clothing store, sales figures like this are the reason. The handbag is the singularly most profitable item in every major designer group's arsenal, with mark-ups that approach 1000% and no hassles with difficult sizing or unpopular hem lengths -- and if you're Louis Vuitton, you can just recycle unsold handbags and call it a special limited edition must have!
Or you can just grab one of these great new Burberry studded bags, made special for the 21st century brand whore! You gotta admit, it's pretty darn sweet:
This is my favorite kind of stud.
3:45 p.m.
The first time Prada announced its intention to launch an IPO, September 11th, 2001 stepped into its path and obliterated the attempt. In 2002, Prada was game for a second IPO shot, only to veer off the path once they got a whiff in the air that fashion behemoth Burberry was making plans to do the same. One to two more (depending on who's talking) aborted attempts later, Prada is announcing IPO plans yet again, and damn the torpedos!
Prada, Ferragamo go head to head in luxury IPO race
"To its disadvantage, Prada, owned by husband and wife Patrizio Bertelli and Miuccia Prada and their families, has created some skepticism in the financial world for shelving an IPO four times since 2001 . . . 'The pressure is on for Bertelli. If he cancels once more he will never be taken seriously by the financial community again,' an investment banker said."
But Prada is rumored to be hiring heavyweight investment firm Goldman Sachs this time around, and if there's one thing Goldman Sachs knows how to do, it's take a company public and make a sh*tload of cash in the process.
Both Italian fashion houses have been around for a long time, and have had their fair share of up and down years, with Prada reeling from market oversaturation and customer dissatisfaction due to a global onslaught of counterfeit goods, and Ferragamo languishing in creative purgatory until they brought sharp young designer Graeme Black on board to infuse their staid line-up with some fresh blood -- Cristina Ortiz, who ironically used to work for Prada before moving on to do some shake-up work with both Lanvin and then Brioni, replaces Graeme Black after the Spring 2008 collection.
Prada Spring 2008 pics below -- does this strike you as a collection designed to inspire investor confidence? I can tell you that I'm not exactly brimming over with the urge to fork over my own cash:
"Hey, throw your good money right down the crapper, ya stock pickin' fools!"
And below are pieces from the Salvatore Ferragamo Spring 2008 collection, which actually look wearable, comfortable and like someone with more than half a doddering brain in his head put them together:
"That's right, girls -- show the old Italian biddy how it's done."
Prada is the bigger and more modern empire of the two, embracing contemporary tastes with its nylon bags and bold color choices, but Ferragamo boasts a reputation for consistent quality in both materials and craftsmanship -- which is why I'm betting on Prada to win the IPO race. I mean, really, no one in the corporate office gives a rat's ass about quality anymore when there are margins to squeeze and profits to make . . .
4:42 p.m.
After months of being assaulted with nothing but black, grey, deep chocolate brown and variations thereof, it's nice to finally start seeing a bit of color out there in the great wide world of what to wear:
1.) This Mulberry Mabel is the shiniest, grapiest (is that even a word -- never mind, I declare it so!) purple leather bag I've ever laid eyes on. I ordered it for my best Seattle friend so that she can have the solace of bold color on her arm while she runs errands throughout the drizzly, dreary, overcast Pacific Northwest winter.
Now this is what I call juicy couture!
I found it at Net-A-Porter. I saw another version at Intermix for a couple of hundred dollars less, but it wasn't shiny patent, which robbed the deep, rich purpleness of most of its allure.
2.) Chloe usually bores me to snores with its endless iterations on black, brown, tan and beige, so imagine my shock and awe when I spotted their new Patent Leather orange quilted 'Eloise' pochette bag. Good golly -- what a jolt of caffeinated color this little baby churns out:
Tangerine Trees and Marmalade Skies, indeed.
Browns Fashion out of London carries this little bucket of voltage.
3.) SumFortune is a relative new kid on the fashion block with their first collection debuting in only 2006, but damn if they're not doing their best to get noticed with these splashes of sunny, funky, trippy color that highlight their Fall/Winter 2007/2008 collection:
Like a big bowl of candy coated goodness.
Shirley Sum (one half of SumFortune) used to work as a designer with Jimmy Choo, and while the influence is obvious, what's also obvious is that she's got her own groovelicious sense of personal style shakin' it all over the place. Sock those winter doldrums right out of me!
You can find SumFortune at Matches Fashion, another Brit-based retailer.
5:52 p.m.
My mind is aswim with fashion images and information as I'm right in the middle of page-turning a fascinating behind-the-scenes look at the corporate battlefield of high end fashion -- Deluxe: How Luxury Lost Its Luster. All I can say is, the shoes and bags aren't the only things wearing the snake skin. These people mean business . . . like, billions of dollars worth of business, and aint nobody standin' in their way!
Dana Thomas is an excellent writer, and if you're at all interested in burrowing into the business side of looking good, she's a great guide. I have The House of Mondavi: The Rise and Fall of an American Wine Dynasty by Julia Flynn Siler waiting in the wings.
12:17 p.m.
Ouch. When you fail, sometimes you fail big.
One of the funniest headlines:
'Lions' lie down with lambs and nearly talk them to death
"The film is written by Matthew Michael Carnahan, who, after turning the Middle East conflict into an episode of "CSI" with "The Kingdom," now seems determined to offer penance in the form of a windy screenplay full of shallow talking points best left to Hannity & Colmes."
Even Roger Ebert, who often takes great pains to find the best in the films he reviews (including the ones that don't really deserve it), finds little to get excited about: "There is a long stretch toward the beginning of the film when we're interested, under the delusion that it's going somewhere. When we begin to suspect it's going in circles, our interest flags, and at the end, while rousing music plays, I would have preferred the Peggy Lee version of 'Is That All There Is?'"
But it's getting a good reception outside the country, and maybe that was the whole point to being with . . . ?
1:03 p.m.
So the Broadway stagehands have decided they want some of that media spotlight, too:
Broadway Stagehands Go on Strike, Shutting Down More Than Two Dozen Plays and Musicals
But the best part of the stagehand strike is this precious quote: "The 3,000-member stagehands union, which has between 350 and 500 members working on Broadway at any given time, contends it could find employment for many of its people in television or film if a work stoppage occurs."
Right, just as Hollywood is grinding to a halt with its own strike. Lots of jobs in sunny CA for everyone - I guarantee!
4:21 p.m.
I've always wondered why the grisliest, most gruesome movies are always sure-fire money makers.
That Nearly Scared Me to Death! Let's Do It Again
"The latest research into fear suggests that the neurological systems in our brains that are stimulated by fear are the same as those associated with pleasure. So while you're watching Saw IV or playing Resident Evil, you get the gratification of real fear without any of the danger . . . "The amygdala gets just as activated by fear as it would in the real world, but because your cortex knows you're not in danger, that spillover is rewarding and not frightening," said Yerkes National Primate Research Center neuroscientist Kerry Ressler."
I was never much of a horror movie fan, and even now have difficulty sitting through a horror film without shutting it off half-way through, or closing my eyes when the carnage gets going. Resident Evil or the Alien series are about as horrific as I can go. There's something about the very human and very realistic bloodshed in movies like Saw and Hostel that I simply can't bear to watch . . .
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