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Daily News – August 5, 2009

August 5, 2009

To try something a bit different, this is a quick rundown of industry and a few other news points worth being aware of:

True Religion Denin Is Growing Fast - Thanks To Its Direct-To-Consumer Approach

True Religion Denin Is Growing Fast - Thanks To It's Direct-To-Consumer Approach

True Religion – a premium denim label – has sales up over 12% in the second quarter. Reuters has the details here, but the company is crediting their growth in this time to retail / direct-to-consumer sales.  The company has opened stores directly and as reported in the past, is doing very well with them. The transcript of the True Religion conference call (where the company discussed it’s performance and results) is here. The reason for the revenue increase now is obvious to those in retail, but perhaps lost on the rest of us: Retail or direct to consumer shopping means not only higher margins, but revenue earned right away as opposed to waiting for a store to ramp up their orders (bookings) and pay on time.  Smaller companies who supply less reliable stores may also rely on factoring, which is an expensive way to finance.

Gucci has announced they will be opening pop-up, temporary retail shops around the world later this year.  Their focus will be on selling (mostly) men’s sneakers, and Elle UK reports Marc Ronson will be designing them:

The temporary store will trade for two weeks in six or seven locations around the world. The first stop on the tour will be Crosby Street in New York’s SoHo on October 23. Other stops will include London, Berlin, Paris, Hong Kong and Tokyo.

Gucci Sneaker Shop

Gucci Sneaker Shop

Marketwatch is reporting that Ralph Lauren‘s profits are down 19% this quarter, and blames the consumer reluctance to purchase non-essential products.

And two other things you should know about:

Bill Clinton went to North Korea and rescued two American journalists who were being held there.  The North Korea president, Kim Jong Il, gave them a pardon.

Reuters is reporting four people were shot dead in a Pennsylvania athletic facility Latin dance class last night, when a gunman walked into the class, turned off the lights, opened fire on the group of women participants, and then turned the gun on himself.


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