American Apparel Struggles, Target's Profits Rise, Designers and Digital Prints, Lucky's new CEO and A Tour of The CFDA Incubator
(wwd)American Apparel Facing New Credit Crisis
"Shares of the Los Angeles-based retailer fell more than 40 percent Wednesday after it said it does not expect to be in compliance with a covenant covering debt to adjusted earnings before interest, taxes, depreciation and amortization under a credit agreement with Lion Capital as of June 30. The firm based the projection on “existing trends” and results for the first quarter ended March 31. London-based Lion provided American Apparel with $80 million in financing in March 2009, allowing it to pay off a $51 million loan from SOF Investment, an arm of computer tycoon Michael S. Dell’s MSD Investments. American Apparel said it is working with the lender to amend the agreement, but could provide “no assurances” it would obtain appropriate amendments prior to the anticipated covenant default." read more
(wsj)Are You Wearing a Watercolor?
"Presenting high fashion—now brought to you by inkjet printer. The stores and runways this spring are full of clothes with intricate prints—not just flowers but unique, often enigmatic designs resembling artwork. Behind this profusion of patterns is a familiar piece of technology: a printer not unlike the one sitting on your desk." We love that designers can take inspiration and images directly from nature and with digital technology, instantly turn it into the most beautiful printed fabric. read more
(wwd)Target 1st-Qtr. Profits Gain 28.5%
"Customers “are putting well-considered discretionary items back in their baskets,” said Kathryn Tesija, executive vice president of merchandising. “They are indulging while feeling smart in their decisions. We’re seeing this trend particularly in home and apparel. Both men and women are freshening up their casual wardrobes and picking up new shoes and accessories for spring.” For the quarter ended May 1, Minneapolis-based Target reported net income of $671 million, compared with $522 million in the same year-ago quarter." read more
(wwd)New Lucky Brand CEO Seeks Sharper Focus
"Four months after joining Lucky, DeMattei is applying his 25 years of retail experience gained at Williams-Sonoma, J. Crew, Gap and Banana Republic to turn Lucky around. His first order of business is to entice shoppers with snazzy display windows that show off jeans selling for less than $119. Second, he plans to do more direct marketing to the 500,000 customers in Lucky’s database with e-mail blasts and catalogues. Third, all Lucky stores will begin using a new computerized replenishment system that will help them restock popular styles more quickly. Last, and perhaps most important, he plans to focus intensely on product and merchandise management. DeMattei is reducing the number of graphic T-shirts, increasing the number of women’s styles by 30 percent and expanding offerings for woven tops, sweaters, dresses, skirts and jackets." read more
(wwd/style.com)CFDA Fashion Incubator Is Ready to Go
"The incubator was launched by the Council of Fashion Designers of America with Mayor Michael Bloomberg in partnership with Newmark Holdings and the New York City Economic Development Corp. The initiative consists of a full floor at 209 West 38th Street, where 12 up-and-coming designers have taken two-year leases for studios at rents from $1,000 to $2,000 — far below the market rate for space so centrally located in the Garment District. It also provides mentorship from industry professionals." read more