Textiles

The Style File Daily Cheat Sheet

(wwd)Chinese Textile Industry Warns of Bankruptcies

"China’s textile industry could face serious repercussions if the value of the yuan appreciates 5 percent against the dollar, state media reported Tuesday. China National Textile & Apparel Council vice president Gao Yong told the China Daily that a 5 percent currency appreciation could cause half of the country’s textile companies to go bankrupt. He said the bankruptcies would be spurred by the industry’s thin profit margins of around 3 to 5 percent. The textile industry output in 2009 accounted for just more than 11 percent of China’s gross domestic product, a Ministry of Commerce report said. The Chinese government conducted a yuan stress test in March that indicated textile manufacturers’ profit margins would decline 1 percent if the currency appreciates by 1 percent, according to the newspaper. China’s central bank announced last month it would allow greater flexibility in the value of the yuan against the dollar, amid pressure from the U.S. and other trading partners. The People’s Bank of China did not say how far the currency might fluctuate. Analysts told state media that textile industry profit margins already have been affected by rising raw material and labor costs, together with an appreciating yuan, which rose 21 percent against the dollar from 2005 to 2008. Zhang Bin, an analyst with Sinolink Securities, said textile products have become more expensive, resulting in diminishing price advantages compared with Vietnam, Indonesia and other Southeast Asian countries. China’s textile manufacturers could further be squeezed by rising labor costs, Zhang said. Demands from factory workers for higher wages have become a central focus around the country after a spate of suicides at Foxconn Technology, a hardware producer in the southern city of Shenzhen." read more

(bloomberg)Polo, Hugo Boss, Hermes-Linked Fashion Notes Sold By Vontobel

"Vontobel Holding AG, a Swiss private bank, is marketing structured notes that track the stocks of fashion companies including Hugo Boss AG, Polo Ralph Lauren Corp. and Hermes International SCA. The two-year note is aimed at private banks and asset managers, according to Georg Vonwattenwyl, Vontobel’s Zurich- based head of financial products distribution. The bank will issue as much as 20 million euros ($25 million) of the notes, which start trading July 16 on the SIX Swiss Exchange Ltd. and Germany’s Stuttgart and Frankfurt bourses. Luxury goods companies in Europe are expected to post sales growth of 7 percent on average this year, after slumping 6.6 percent in 2009, according to a Vontobel report. Fashion companies returned about 50 percent last year, according to the Swiss bank, almost double the 27 percent gain in the MSCI Europe Index of 461 stocks. “We have seen some interest in the fashion story this year,” Vonwattenwyl said. “The global development of wealth and the demand for luxury products, particularly in Asia, should benefit these stocks in the future.” Vontobel’s notes will return to investors any gain or loss on the basket of 11 stocks that also includes Bulgari SpA, Burberry Group Plc, Coach Inc., Cie Financiere Richemont SA, Louis Vitton Moet Hennessy SA, Swatch Group AG, Tiffany & Co. and Tod’s SpA. The Swiss bank issued similar notes in 2004 that earned 20.3 percent for buyers that held them for all of their 18-month term." read more

(wwd)J. Crew Names Jenna Lyons President

Jenna Lyons was named Tuesday as president of J. Crew Group Inc. after the resignation of Tracy Gardner, president of retail and direct channels. Lyons will retain her responsibilities as executive creative director. Gardner is leaving the company effective Sept. 13. “This is nothing other than an important personal decision” for Gardner, said Millard “Mickey” Drexler, chairman and chief executive officer, adding that she wants to “spend more time with her children.” Drexler, who worked with Gardner for almost 20 years at J. Crew and their former employer, Gap Inc., described her as “a great merchant, business partner and human being. But we have a really strong team and there are people in place to step up and take on more responsibility.” Drexler said J. Crew will spread Gardner’s duties among executives. Libby Wadle, who had overseen the factory outlets, will become executive vice president of retail and factory. Charlie Phillips, senior vice president of men’s and women’s retail merchandising, now will serve as senior vice president of factory and men’s retail merchandising. Renee Brantjes will continue as vice president of women’s retail merchandising. Merchandise production responsibilities will be under James Scully, chief administrative officer and chief financial officer. Trish Donnelly will continue as executive vice president of the direct channel, and Laura Willensky will remain as senior vice president of the Madewell retail channel. The last person to hold the president’s position at J. Crew was Jeff Pfeifle, a close associate of Drexler, who left the company two years ago. “The team at J. Crew has considerable depth, and I am…confident in our ability to achieve a seamless transition,” Drexler said read more

(myfashionplate)Stella McCartney To Design Olympic Sportswear

"Stella McCartney is one of the UK’s most successful fashion designers and has previously collaborated with the likes of H&M on accessible ranges for those of us who can’t afford designer price tags in our virtual closet organizer. But now the daughter of the former Beatles legend has been appointed as the creative director of Adidas’ 2012 Olympic Team GB ranges. Of course, this is not the first time McCartney has worked with the sports brand, as she designed a performance collection back in 1995. "As a British fashion designer it is an amazing, once-in-a-lifetime opportunity to be creative director of Team GB as the hosting nation of the London 2012 Olympic Games," McCartney said. Plus, it is not just the athletes that will get to wear the fashionable sports gear, as there will also be a fan wear range to match. McCartney launched her own fashion house as a joint venture with Gucci Group in 2001. They may only be sports kits, but it’ll still be interesting to see what she comes up with! We’ll just have to remember to keep our eyes on our own athletes as well." read more

(wsj)French Court Kicks Google/LVMH Case Back To Appeals

The French Supreme Court Tuesday referred a previous ruling against Internet search giant Google Inc. (GOOG) back to the Court of Appeal, effectively canceling an earlier decision in favour of French luxury goods company LVMH Moet Hennessy Louis Vuitton SA (MC.FR), which complained that searches on Google's website for its Louis Vuitton trademark generated adverts for counterfeiters and fake Louis Vuitton goods. The court, which is known in France as the Cour de Cassation, canceled a June 2006 Court of Appeals decision condemning Google to a EUR300,000 fine, and referred the case back to the appellate bench. The dispute concerns Google's AdWords business. Google, like others in the multi-billion-dollar Internet search industry, derives valuable income from enabling advertisers to tag their ads to particular search words, often famous brands. LVMH has complained that searches on Google's website for its Louis Vuitton trademark generated adverts for counterfeiters and fake Louis Vuitton goods. On March 23, the European Court of Justice ruled that Google could allow advertisers to use trademarks of brands as search keywords, but may be liable for polic

The Style File Daily Cheat Sheet

Giles Deacon at Ungaro, Lindsey Lohan's New Accessory, New Projects at LV, Textile Import Fraud, PVH Corp. and Tommy Hilfiger, Fashion on the Tennis Court.

Giles Deacon for Ungaro

(nymag)Emanuel Ungaro Hires Giles Deacon to Design

We are really hoping that after struggling for years with it's so-so Creative Directors and designers, Ungaro has FINALLY made a good decision. "With the housekeeping finally complete and Lindsay Lohan and Estrella Archs tossed out like cigarette-burned leggings, Emanuel Ungaro has finally appointed a new designer: Giles Deacon. The designer — a designer first and foremost by profession, it must be noted — will stage a presentation at Paris Fashion Week in October, and probably another presentation for the following Fashion Week in March. He wants to really get his feet wet before hitting the runway — no slapdash "I wasn’t aware of the nipple tassels on the girls until they were walking out" kinds of collections." read more

(cbs)SCRAM Bracelet: Lindsay Lohan's Newest Court Ordered Fashion Statement

What the heck is a "SCRAM" bracelet?

"Simply put, it's "Secure Continuous Remote Alcohol Monitoring" or an alcohol monitoring device, like the one Lohan wore after her arrest on a DUI charge in 2007. The actress has been on probation since August 2007 after pleading guilty to misdemeanor drug charges and no contest to three driving charges. A judge ordered her to wear one today after her appearance in a Los Angeles courtroom over a missed probation hearing. You might recall she claimed she was stuck in Cannes after her passport was stolen last week." read more

(wwd)Yves Carcelle Talks Retail Projects for Louis Vuitton

When asked by WWD in an interview on Tuesday, "what is the company’s bigger priority this year, opening stores or optimizing business in the existing stores?",  Yves Carcelle, CEO say's both. "It was clear there was a period when we needed to cover the planet as quickly as possible. I would say that in the last 10 years we really needed to conquer new countries where luxury was appearing. The desire for luxury design had become a worldwide desire. I think today we have already covered [the globe] quite well, but that doesn’t mean we don’t have new countries in our plan. This year, we opened our first stores in Lebanon, Poland and the Dominican Republic — that makes three new countries this year. We will open in three new cities in China — Nanning, Hohhot and Fuzhou — and some second stores in Chinese cities." read more of the interview

(wwd)Congress Seeks Tougher Policing of Textile Import Fraud

"Congress will consider legislation to crack down on textile import fraud, which is battering the weakened domestic industry. Yarn spinners and denim fabric makers said they have suffered major damage from the increasing illegal activity that undercuts their $10.2 billion export business to Central America, Mexico and four Andean countries, all of which have duty preferences with the U.S... The Textile Enforcement and Security Act, sponsored by Reps. John Spratt (D., S.C.), Howard Coble (R., N.C.), Larry Kissell (D., N.C.) and Walter Jones (R., N.C.), is intended to close enforcement loopholes by placing additional Customs inspectors in Central America and Mexico, expanding penalties to more firms in the supply chain, decreasing the use of “blanket” affidavits that certify all imported products comply with U.S. rules and starting a verification system to track yarn and fabric in regions that have free trade agreements with the U.S." read more

(wwd)Hilfiger Buy Weighs on PVH in Qtr.

Phillips-Van Heusen Corp. said Monday that it posted a first-quarter loss, hurt in part by expenses from the $3 billion purchase of Tommy Hilfiger and hedges to cover a portion of that euro-denominated acquisition. For the three months ended May 2, the net loss was $27.6 million, or 53 cents a diluted share, versus net income of $24.7 million, or 48 cents, in the year-ago quarter. Eliminating over $100 million in onetime costs related to the Hilfiger acquisition, earnings per share rose to positive territory, coming in at 83 cents, 4 cents higher than the consensus estimate of 79 cents. The Hilfiger transaction, in tandem with the earlier purchase of Calvin Klein, created a global powerhouse with two of the most recognized designer brands. “This extended brand portfolio and operating platform creates unique growth opportunities across additional geographies and product categories, which we are positioned to capitalize upon to drive future revenue and earnings growth as well as strong returns to our stockholders." read more

(washington post)Williams Sisters Turn Heads with Fashion at the French Open

Fashionable tennis wear? I'm not quite sure the Williams sisters have it down yet... Here are some pictures of their most recent fashions on the court... what do you think?