(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