Fashion and marketing success formula at Chicos
Surprisingly strong third quarter same store sales growth at Chico’s was attributed to a blend of compelling fall fashion assortments and effective marketing.
Same store sales at the Chico’s and Soma Intimate brands division increased 11.6% while the White House Black Market division increased 6.4%. The solid sales growth enabled the company to record net income that grew 57.4% to $41.7 million, or 25 cents per share, compared to $26.5 million, or 16 cents a share. Even if some non-recurring acquisition and integration costs related to last year’s purchase of Boston Proper are excluded profits still increased 38.9% to 25 cents a share from 18 cents a share, the company’s best third quarter performance since 2005.
"Overall, our unique leading edge fashion and innovative marketing continue to drive significant achievements, including a double-digit increase in new customers and increases in both average dollar sales and transactions," CEO David Dyer said during a conference call. "These results mark our 14th consecutive quarter of comparable sales increases and the 15th consecutive quarter of double-digit earnings per share growth, demonstrating a consistent level of strong performance."
Year to date, Chico’s has opened 111 new stores, of which 60 are outlet locations. It ended the quarter with 614 stores and 99 outlets under its Chico’s brand, 401 White House Black Market stores, 194 stores and 16 outlets under the Soma Intimates banner and the recently acquired high end, direct to consumer brand Boston Proper.
Green Mountain appoints former P&G, Coke exec as new CEO
WATERBURY, Vt. — Green Mountain Coffee Roasters has named former P&G and Coca-Cola executive Brian Kelley as its new president and CEO, effective Dec. 3.
Kelley replaces Lawrence Blanford, who held the company’s top spot since 2007 and announced his plans to retire in Feb. With Blanford at its helm, Green Mountain acquired Keurig, a manufacturer of single-cup coffee machines, in 2006, making it one of the fastest-growing U.S. companies. Although the company’s market value increased five-fold with Blanford in charge, shares fell 41% this year.
Kelley comes on board during trying times for Green Mountain. Its patents are now expired and it faces increased competition from low-cost rivals. Green Mountain is also fending off questions about its business model and accounting practices.
"GMCR is a company with strong character and compelling purpose, coupled with strong brands and products about which consumers are passionate. With its truly disruptive Keurig brewing technology, GMCR’s accomplished something unique in the world of consumer products: it is changing consumer behavior by changing the way we brew and enjoy coffee," said Kelley. "I am honored and excited by the opportunity to lead this organization whose products have sparked unparalleled growth in specialty coffee, and I look forward to working with its dedicated employees to drive continued growth and to deliver new innovations."
Kelley joined Coca-Cola in 2007 as president and GM, Still Beverages and Supply Chain North America. The business consisted of all Coca-Cola juices, waters, teas, sports drinks, enhanced waters and energy drinks. He was charged with 15 major brands, including Vitaminwater, Smartwater, Simply, Minute Maid, odwalla, Fuze, Nestea, Dasani, Powerade and Gold Peak.
Kelley was chief product supply officer of Coca-Cola Refreshments since Oct. 2010, and was named president of Coca-Cola Refreshments in Sept. 2012, which was to be effective Jan. 1, 2013. In his prior role as president of North America Business Integration, he led the total integration of the acquisition of the North American assets of Coca-Cola Enterprises, combining Coca-Cola North America and Coca-Cola Enterprises’ North American operations into a new company, Coca-Cola Refreshments.
Macy’s Herald Square debuts ‘World’s Largest Shoe Floor’
NEW YORK — Never to be outdone during the holiday season, Macy’s Herald Square has unveiled its new “World’s Largest Shoe Floor,” featuring more than 250,000 pairs of women’s shoes in a new 63,000-sq.-ft. space on the second floor.
The $400 million renovation project boasts luxury shoe shops, a designer shoe salon, shoe closets inspired by New York City’s trendiest neighborhoods and a new coffee, champagne and chocolate bar. The project, which spans the iconic flagship’s entire second floor, also offers a nod to the building’s history. The windows have been renovated and made visible to the public for the first time in decades.
The selection of shoe brands includes Stuart Weitzman, RACHEL Rachel Roy, Dolce Vita, Vince Camuto, Lucky, Sperry, Nine West, I.N.C., Lauren, Nike, Puma, Keds, Clarks and Naturalizer. New shops from Calvin Klein, Coach, Michael Kors and Cole Haan round out the selection in the designer shoe salon and 29 new vendors will be located on the second floor, including French Sole’ Juicy Couture, L.A.M.B., La Fenice, Seven for All Mankind and Truth or Dare by Madonna. Prices range from $49 to $1,600 and sizes range from 5-12.
In conjunction with the renovation project, Macy’s introduced a new Macy’s Herald Square app to assist customers in navigating the Shoe Salon, as well as the rest of Macy’s Herald Square. In addition to the app, employees are equipped with state-of-the-art mobile scanning devices that give them access to inventory and allows them to determine the availability of a given size and style instantly. The floor also features 21 LCD monitors and four LED screens showcasing key trends, brands and styles, as well as Macy’s iconic brand imagery.
The Herald Square Café serves varieties of Starbucks Reserve coffees, champagne from Moët & Chandon, hand-crafted chocolates by Vosges Haut-Chocolat and an assortment of menu items. The café spans 1,434 sq.-ft. and seats 45. A grand clock fashioned after the original timepiece that overlooks Broadway Blvd. overlooks the communal champagne tasting table.