Industry News – May 16th, 2016

Curated fashion industry news links for Monday, May 16th, 2016…

MIXED BAG FOR PENNEY: SALES FALL, BUT PROFITS TOPS FORECASTS – RetailingToday
“J.C. Penney continued a pattern set by Macy’s, Kohl’s and Nordstrom and reported dismal first quarter sales as traffic declined. Penney’s sales for the quarter fell to 1.6% to $2.81 billion, below analysts’ forecasts of $2.92 billion, from $2.86 billion in the year-ago quarter, as traffic declined and cool weather dampened demand for apparel. Same-store sales slipped 0.4%. But while the chain’s sales were worse than expected, it was able to limit the damage to its bottom line, helped by cost controls and improvements in the company’s clearance selling margin. The New York Post reported on May 5th that Penney had taken “drastic cost-cutting steps” in an attempt to protect its bottom line,” including banning markdowns and reducing employees hours.”

H&M SLIDES AS COOL APRIL WEATHER DENTS RETAILER’S MONTHLY SALES – Bloomberg
“Hennes & Mauritz AB shares fell after the clothing retailer said sales in April were hurt by unseasonably cool weather in many parts of Europe. The stock dropped 1.9 percent to 260 kroner at 9:03 a.m. in Stockholm, extending this year’s decline to 14 percent. Sales rose 5 percent last month at local currency rates, missing the 7.9 percent average estimate of analysts surveyed by SME Direkt. Unusually, the company included a commentary with its monthly figures to cite the impact of the weather. “The cold spring which continued into April in several of H&M’s large markets has had an unfavorable impact on sales of transitional garments,” H&M said.”

RETAIL SALES GAIN IS FUELED BY WEB – TheWallStreetJournal
“Consumers boosted spending in April to the highest levels in more than a year, accelerating their turn toward online shopping and widening the divide between in-store retailers and Internet outlets pitching lower prices and convenience.”

UGG KICKS OFF BRAND RE-LAUNCH WITH SLICK NEW RETAIL STORE OPENING – FootwearNews
“UGG’s latest retail store isn’t just a shopping destination — it’s a sensorial experience. The label presented a slick, ultra modern 2,828 square-foot retail space when it opened doors on Sunday at its new flagship store in Disney Springs at Walt Disney World Resort in Lake Buena Vista, Fla. Featuring a Spanish revival-style architecture exterior — a nod to Florida’s early history — the layout inside includes ambient lighting, cinemagraph wall panels designed with striking views of natural environments and deconstructed images of UGG’s “sunflake” pattern, which is found of the sole of the boot.”

WOULD YOU SHARE CLOTHING WITH DOZENS OF STRANGERS – Vogue
“Fast-forward to 2013, when I graduated from college and moved to New York while Liz stayed in Indiana to finish her nursing degree. The division of clothing was stressful; I was losing half of my wardrobe! But whenever Liz flew out to visit me, I couldn’t wait to get my hands on whatever she packed in her suitcase. Part of the thrill was wearing clothes that felt new, or at least new to me. That’s the psychology behind “fashion sharing” apps like Rent the Runway and the just-launched Armarium—you get that little buzz without being financially tied down. Their businesses are based on having “access” to items rather than owning them, and the lack of commitment is probably what gets you hooked.”