Rising costs weigh on retailers
Even though raw material costs have been falling, the ramifications continue to weigh on retailers. Combined with unusually warm weather in both the US and in Europe, and a highly aggressive promotional environment, recent results point to continuing pressures in the months ahead.
In the money: HanesBrands hails success of price rises
17 February 2012
T-shirt and underwear maker HanesBrands says its decision to raise prices three times over the past year in response to rising input costs "worked well" in its core business, and that retailers "have come to appreciate that price increases are driving their comp sales and profitability."
In the money: Year of two halves beckons for VF
17 February 2012
VF Corporation boss Eric Wiseman appears to have the Midas touch just now: forget integrating the Timberland acquisition and riding out product cost increases – it seems he can even defy the weather.
US: Timberland helps lift VF Q4 profit by 34%
17 February 2012
Apparel giant VF Corporation recorded a 34% increase in fourth quarter profit, boosted by gains from new acquisition Timberland, plus growth in direct-to-consumer (DTC) and international sales.
In the money: A&F accentuates the positive as cotton weighs on Q4
16 February 2012
One thing is clear from a swift perusal of fashion retailer Abercrombie & Fitch’s financials for the fourth quarter of fiscal 2011: the company’s margins were savaged over the vital holiday period.
US: HanesBrands reports 25% jump in FY profit
16 February 2012
Apparel group HanesBrands has reported a 25% jump in full-year profit, but admitted that sales softened during the fourth quarter.
US: Perry Ellis to review brands, streamline operations
14 February 2012
Apparel maker Perry Ellis is reviewing its brand portfolio and streamlining its operations to "eliminate less productive overhead," after warning that increased discounting is likely to hurt its fourth quarter and full year profits.
US: Cotton costs halve Levi Strauss Q4 profit
8 February 2012
Jeans giant Levi Strauss & Co has seen its fourth quarter profit nearly cut in half as rising cotton costs outpaced higher ticket prices.
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