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Standouts Sell at LA International Textile Show by Dorothy Crouch Associate Editor

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Standouts Sell at LA International Textile Show by Dorothy Crouch Associate Editor NEWSPAPER 2ND CLASS $2.99 VOLUME 74, NUMBER 10 MARCH 9–15, 2018 THE VOICE OF THE INDUSTRY FOR 73 YEARS Standouts Sell at LA International Textile Show By Dorothy Crouch Associate Editor Now in its 25th year, the Los Angeles International Tex- tile Show at the California Market Center brought togeth- er manufacturers, designers and production specialists who attended the three-day show, which took place March 5–7. Attendees could find fresh takes on materials for their lines and discover valuable information regarding topics such as branding, design and technology at seminars that took place throughout the course of the event. Although they couldn’t identify a clear reason for the change, many vendors and attendees commented on the de- crease in the number of booths. “We’ve noticed that this show is a little bit downsized. ➥ LA Textile Show page 10 UCLA Anderson Forecast Sees Big Changes in Store for U.S. Economy By Deborah Belgum Executive Editor What a difference a year makes. Last year, President Trump had just taken office and the economy was slowly slogging forward as unemployment rates dropped steadily, inflation was modest and interest rates were changing every so slightly. One year later, the most recent UCLA Anderson Fore- cast, released March 7, sees benchmark interest rates in- creasing four times this year, inflation heating up, business investments becoming a prominent player in the faster- growing economy and trillion-dollar deficits on the horizon. “Business investment is going to be driving the bus this ➥ Forecast page 11 DOROTHY CROUCH LA INTERNATIONAL TEXTILE SHOW: Vibrant colors and welcoming expressions created an inviting atmosphere within the Alexander Henry Fabrics booth at the Los Angeles International Textile Show, which took place at the California Market Center INSIDE: March 5–7. Where fashion gets down to business SM Skechers Makes Its First Wholesale Apparel Line By Andrew Asch Retail Editor the concept for Skechers Apparel, a new wholesale apparel 6 9 line that was introduced at the Active Collective trade show With more than $4 billion in net sales in 2017 and a fleet last January in Anaheim, Calif. Westside Pavilion changing ... p. 2 Showroom Profiles ... pp. 16, 17 of 2,750 stores aross the world—645 of them are company About six months before the men’s and women’s whole- Methven lingerie line ... p. 4 New Lines ... pp. 18–19 owned—Skechers USA Inc. has been ranked as the second- sale apparel line was at the trade show, the company hired best-selling sneaker brand in America. Lauren Martone to guide it to market. “It feels like a startup,” Cherokee CEO talks brand building Fashion District Resources … p. 20 But even with that success, it has been looking for ways to said Martone, Skechers’ national account manager, apparel. ... p. 14 expand and extend its profile. From its headquarters, located “There’s a lot of firsts happening. We’re working with cer- in affluent Manhattan Beach, Calif., Skechers came up with ➥ Skechers page 8 www.apparelnews.net 01,8,10-11.cover.indd 1 3/8/18 6:28 PM NEWS Westside Pavilion Shopping Center to Be Remodeled Into Offices Facing a future as a mall with no tradition- man and chief executive officer. creative office space on the upper levels and al anchors, Los Angeles’ Westside Pavilion The project’s cost is estimated to be boutiques and eateries on the lower levels. will be undergoing a major revamp to turn it between $425 million and $475 million. The decision to convert Westside Pavilion into creative offices. Construction is scheduled to be completed into offices was made after the mall’s two On March 5, Westside Pavilion owner Ma- by mid-2021 on the mall, which opened in major department stores moved to Westfield cerich Inc. announced it had formed a joint 1985. Hudson Pacific will act as the prop- Century City. Nordstrom was enticed to the venture with Hudson Pacific Properties Inc. erty’s day-to-day operator and developer. mall after it underwent a $1 billion renova- to redevelop the 500,000-square-foot mall into Victor Coleman, Hudson Pacific’s chair- tion, and Macy’s revamped its existing store 400,000 square feet of creative office space. man and chief executive officer, said there is at the mall, located only a few miles from The remaining 100,000 square feet will contin- strong demand for creative office space on Westside Pavilion. ue to operate as an entertainment/retail space Los Angeles’ Westside. Other Westside de- Redeveloping malls and buildings into housing the Landmark Theatres, which fo- velopers have been remodeling retail proper- destinations with offices, retail and other cuses on independent and foreign films. ties into creative office space. uses such as fitness studios, civic buildings The joint venture will be 75 percent In 2016, the Platform bowed in Culver and doctors’ offices is part of a trend called owned by Hudson Pacific and 25 percent by City, Calif., as a compound for retail, dining “blended uses,” said Larry Kosmont, presi- Macerich. “Our joint venture with Hudson and creative offices. A year later, Platform dent of Kosmont Companies, a real-estate Pacific will enable us to maximize the value owner Runyon Group took on leasing du- consultant to cities and retailers. of this incredibly well-situated real estate ties for the Row DTLA compound in down- Developers want to build places with a with dynamic new uses—something Mac- town Los Angeles, which offers a mix of re- multiplicity of uses. “It’s a blending of desti- erich has always excelled at. Hudson Pacific tail, dining and creative office space. nations. It will convince people to leave their brings great expertise in the creative-office- The Sears located on Colorado Avenue in computers long enough to go to the blend- space segment, and we are pleased to partner Santa Monica, Calif., closed last year and is ed-use destination,” Kosmont said. “It’s the with them on this exciting, high-visibility being remodeled by Seritage Growth Prop- future of where the development business is project,” said Art Coppola, Macerich’s chair- erties into The Mark 302, which will have going.”—Andrew Asch The interior of Westside Pavilion Fourth-Quarter Sales Climb for Ross Stores Off-price retailer Ross Stores Inc. report- of the Dublin, Calif.–based Ross, said that value-driven shoppers.” For its fiscal 2018 year, Ross is forecast- ed a very good fourth quarter in fiscal 2017. results, which were reported on March 6, In a March 6 research note, Wall Street ing that sales will grow 1 percent to 2 per- Net sales for the fourth quarter were $4.1 beat the offpricer’s forecasts. “Despite our analyst Adrienne Yih of Wolfe Research cent. Rentler called the forecast “prudent.” billion, up 16 percent from the same quarter own difficult multiyear comparisons and a wrote that Ross has been reaping the bene- “While we are encouraged by our recent the previous year. Net earnings for the quar- very competitive retail climate, sales and fits from a good plan of action. “[Ross] once strong sales and earnings results, we again ter, which ended Feb. 3, were $451 million earnings were well ahead of our expecta- again proved its winning strategy of chasing face our own challenging multiyear compari- compared to $301 million the previous year. tions for both the fourth quarter and the into known winners and providing incredible sons as well as a very competitive retail envi- Same-store sales for the fourth quarter in- full year,” she said in a statement. “We are value that resonates. [Ross’] versatility ex- ronment,” she said in a statement. creased 5 percent compared to a 4 percent pleased with these results, which reflect our tends to economic cycles as well, perform- For the upcoming year, Ross plans to increase last year. ongoing success in delivering broad assort- ing well in tough times as consumers traded open 100 stores. It will open 75 Ross Dress Barbara Rentler, chief executive officer ments of compelling bargains to today’s down and taking outsized market share dur- for Less stores and 25 doors for its dd’s Dis- ing good times,” she wrote. counts nameplate.—A.A. RETAIL SALES Retail Sales Up in February February was a very good month for re- retailer The Buckle Inc. and value retailer tailers, who reported strong sales across the Cato Corp. These retailers reported net board. sales increases of 2 percent and 5 percent, Retail Metrics Inc., a market-research respectively. But their same-store sales de- group based in Massachusetts, said its index clined 5.3 percent and 5 percent, respec- rose 9.6 percent. It had previously estimated tively. that retail sales would rise 7.4 percent. John Cato, Cato’s chairman, president Ken Perkins, president of Retail Met- and chief executive officer, said February rics, credited a strong economy for the good same-store sales were below the company’s showing. “Weekly initial jobless claims expectations. “However, inventory levels touched a low last week not seen since are in line, due to strong inventory manage- 1969,” he wrote in a March 6 note. “Person- ment.” al income increased in January. Tax cuts are Mall retailer Zumiez Inc. said it would putting more money in consumers’ pockets. report its February sales on March 15. Consumer confidence is elevated. … The Retail analysts were cheered by news of consumer is spending.” successful fourth quarters recently reported However, he cautioned against thinking by Abercrombie & Fitch Co. and Urban that the past month’s sales will put retailers Outfitters Inc. in the black.
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