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Sweet Talk Lion Synergies in 2016, but Men’S Wearhouse Said Those Pastels Aren’T Just for Girly Dresses

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Sweet Talk Lion Synergies in 2016, but Men’S Wearhouse Said Those Pastels Aren’T Just for Girly Dresses GIGI’S SNOOPY STYLE DIOR AND THE THE BELOVED “PEANUTS” PRINCESS GROUP BEAGLE AND HIS SISTER CHRISTIAN DIOR CATCHING UP BELLE GET THE FASHION LINKS WITH THE WITH GIGI HADID TREATMENT FROM THE PRINCESS GRACE ABOUT MODELING, LIKES OF DRIES VAN NOTEN, FOUNDATION-USA HER FAMOUS ISABEL MARANT, DIANE VON TO SPONSOR ITS FRIENDS AND FURSTENBERG AND MORE. UPCOMING AWARD LOVE. PAGE 10 PAGES 4 AND 5 GALAS. PAGE 6 AIMING TO BE BIGGEST MW Outlines Strategy, Shares Decline 9.9% By JEAN E. PALMIERI THE MEN’S WEARHOUSE INC. has lofty ambitions — to become the largest seller of men’s apparel in the United States — but Wall Street has some doubts about the plan. Currently at number three behind Macy’s Inc. and WEDNESDAY, JULY 30, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY Kohl’s Corp., the retailer is projecting sales of $3.7 bil- WWD lion by the end of 2017 as it works to absorb its former rival and latest conquest, Jos. A. Bank Clothiers Inc. Together, the companies had sales of $2.6 billion in 2013. In an analysts’ presentation in New York City on Tuesday morning, Men’s Wearhouse management said that over the next three years the combined company will have earnings before interest and taxes of $500 mil- lion, an average comparable-store sales increase of 2 to 3 percent, and will open 30 full-line Men’s Wearhouse stores a year until it reaches its goal of 750 units, a num- ber the retailer expects to hit in 2016. Currently, there are 653 full-line Men’s Wearhouse stores. Shares of the stock were hit hard Tuesday when investors appeared to be disappointed that the merg- er between the two companies won’t produce cost savings as soon as some had expected. The stock dropped 9.9 percent to $51.66 with near- ly six million shares trading hands — well above the 651,000 daily average for the past three months. Analyst Janet Kloppenburg of JJK Research said some investors were expecting the company to realize the full benefi t of the deal’s $100 million to $150 mil- Sweet Talk lion synergies in 2016, but Men’s Wearhouse said those Pastels aren’t just for girly dresses. For resort, savings won’t be fully realized until the following year. even suits got a dose of sweetener. Here, Osman’s “It was just the semantics,” Kloppenburg said. cotton, nylon and elastane blazer and skirt and silk “Expectations might have been a little bit higher. It’s still a great story and is going to be a very impactful blouse. Alexis Bittar ring; Marni shoes. integration in terms of cost savings.” In “sharing our vision for the growth of Men’s Wearhouse,” Doug Ewert, president and chief execu- tive offi cer, said that after a rough 2012, all divisions SEE PAGE 9 Wal-Mart on the Prowl To Boost Web Expertise By RACHEL STRUGATZ WAL-MART STORES INC. wants to sharpen its digital game through acquisition. The retailer, which has become one of the most voracious dealmakers in tech, said Tuesday that it would buy social marketplace Luvocracy through its @WalmartLabs research and development arm. The deal marks the unit’s 14th acquisition and another signal that the world’s largest retailer plans to use all the tools at its disposal to boost its market share. Already about 245 million customers visit Wal- Mart’s 10,900 stores and its 10 Web sites each week. The Luvocracy purchase and the expertise it brings on board could be particularly useful for Wal- Mart as it tries to help that army of shoppers navi- gate its vast product offerings. Luvocracy specializes in connecting users with like-minded shoppers and helping them sift through a large number of products and fi nd what they want. “Luvocracy was one of the fi rst companies to en- able the entire social shopping experience — from discovery to commerce — to occur within the four walls of its app,” said Ben Galbraith, vice president of global products for @WalmartLabs. A spokesperson for Wal-Mart said Luvocracy’s technology won’t be integrated into walmart.com, but the team behind the startup will “enable us to inno- vate in design, product and discovery shopping.” Luvocracy was founded in 2011 by Nathan Stoll and Roger Barnett and raised $11 million in funding last PHOTO BY THOMAS IANNACCONE; STYLED BY MAYTE ALLENDE MODEL: FATIMA/IMG; HAIR BY PASCALE POMA USING L’ORÉAL PROFESSIONNEL; MAKEUP BY JAVIER ROMERO USING MAKE UP FOR EVER; FASHION ASSISTANT: ANDREW SHANG ASSISTANT: ROMERO USING MAKE UP FOR EVER; FASHION PROFESSIONNEL; JAVIER MAKEUP BY POMA USING L’ORÉAL PASCALE HAIR BY MODEL: FATIMA/IMG; SEE PAGE 12 2 WWD WEDNESDAY, JULY 30, 2014 WWD.COM NLRB Sides With Bergdorf’s in Union Case THE BRIEFING BOX indicated that the board is taking decisions about By KRISTI ELLIS union bargaining units within stores on a case-by- IN TODAY’S WWD case basis. WASHINGTON — The National Labor Relations The RWDSU petitioned the NLRB to cover 46 Board has ruled in favor of the Neiman Marcus shoe sales associates in the two departments and an Group Inc.’s Bergdorf Goodman in a case involving election was held in June 2012, but the ballots were Gigi Hadid at the Guess event during New York Fashion Week. a union trying to organize two separate shoe de- impounded because of the pending case before the For more on the model, see page 10 and WWD.com. partments within its women’s store in Manhattan. NLRB. In its decision posted late Monday, the NLRB The NLRB said in its decision that the petition dismissed the union’s petition, vacated the union brought by the Retail, Wholesale Department Store election and remanded the case back to an NLRB Union to organize a salon shoe department on the regional director for “further appropriate action.” second floor of the Bergdorf store and a contempo- Neiman Marcus declined to comment on the rary shoe department located on the fifth floor did NLRB decision, but two retail trade and lobbying not represent an “appropriate [bargaining] unit” groups weighed in. because it “lacked a community of interest.” “It is certainly a win for Bergdorf without a Retailers have grown concerned over decisions question,” a spokesman for the Retail Industry handed down by the NLRB, most recently one in Leaders Association said. which it ruled against Macy’s Inc. and allowed a However, even with the decision in favor of union to move forward with an organizing election Bergdorf, RILA and the National Retail Federation GREENE involving employees in a cosmetics and fragrance believe the NLRB will continue to push for the cre- department at one of its stores. The retail commu- ation of micro unions. JENNA nity argues that the Macy’s ruling will pave the way “This is a qualified victory for the retail industry, BY for separate union bargaining units within stores, but significant challenges continue to confront the PHOTO which they say could fragment their business. nation’s retail community,” including the concern But the NLRB’s decision in the Bergdorf case about micro unions, an NRF spokesman said. Men’s Wearhouse is gunning to become the largest men’s apparel retailer in the U.S. PAGE 1 Puma Banking on Marketing Push Wal-Mart Stores Inc. said Tuesday it would buy social marketplace Luvocracy. PAGE 1 good initial sales at retail of Arsenal replica jerseys.” By PAULINA SZMYDKE However, only apparel showed a significant sign Snoopy and his sister Belle will once again be given a makeover of improvement in the second quarter, growing 12.8 with the reprisal of the “Snoopy in Fashion” project. PAGE 4 PARIS — Puma SE continues its rocky road to recovery. percent thanks to World Cup-related sales. By con- The German activewear firm, whose earnings trast, footwear dropped 9.1 percent, while acces- Christian Dior will be the sole presenting sponsor at upcoming and sales continued to slide in the second quarter sories, hindered by declining golf equipment sales, PAGE 6 of 2014, said it was eager to launch the largest global were up 3.4 percent, which is less than in the same Princess Grace Foundation-USA award galas. marketing campaign in its history, hoping to finally quarter last year. BaubleBar has turn around its fortunes. Gulden maintained he felt “comfortable in con- raised $10 million in a Series B financing, led PAGE 6 “It’s a 360-degrees concept, including retail, social firming our guidance,” which projects flat full-year by J. Christopher Burch’s Burch Creative Capital. media, digital and print. The first TV spot will air on currency-adjusted net sales and a 3 percent in- Aug. 7,” Björn Gulden, Puma’s chief executive officer, crease in net earnings. Buyers and manufacturers at the Berlin trade shows have said during a conference call Tuesday. The “Forever Faster” offensive is also expected to become more optimistic about the denim market. PAGE 7 “And it’s just the beginning,” he continued, adding boost confidence among retailers, who have been re- the campaign, dubbed “Forever Faster,” was “a long- luctant to give retail space to Puma, favoring Adidas The unofficial slogan at the upcoming Outdoor Retailer trade term project with continuous investment up to the and Nike over the struggling activewear firm. show might be: Let’s get physical — and fashionable. PAGE 8 Olympic Games in Rio de Janeiro in 2016.” Gulden said the company is channeling its ef- Although Gulden would not disclose the compa- forts toward improving distribution by teaming up Flash-sale site Rue La La has hired J.P.
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