OPERATIONS

VF completes acquisition of Timberland; Jeffrey Swartz out in management changes

BY Marianne Wilson

Greensboro, N.C. — Apparel giant VP Corp. announced that it has completed its previously-announced acquisition of The Timberland Company in a deal valued at $2.3 billion.

Timberland will become part of VF’s Outdoor & Action Sports Coalition, which includes The North Face. The formerly family-held company will remain headquartered in Stratham, N.H.

"Today marks the beginning of a very exciting chapter for Timberland," said Jeff Swartz, former Timberland president and CEO. "I am confident that while our ownership structure has changed, what makes Timberland unique and special will not. VF has an enviable track record of allowing its brands to execute their distinct strategic visions. “

In a release, VF said Swartz is leaving Timberland to pursue other interests. Appointed president and CEO in 1998, he has developed a reputation as one of the industry’s leading advocates of corporate social responsibility and sustainability. Swartz’s grandfather, Nathan Swartz, founded the company in 1953.

Patrik Frisk, president, VF Outdoor & Action Sports’ Europe, Middle East and Africa regions, has been named president of Timberland. He will serve as the global leader for the Timberland brand.

In addition to Swartz, two other executives are leaving the company. Carrie Teffner, VP and CFO, and Danette Wineberg, VP general counsel and secretary, are both leaving in September.

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News

Best Buy quarter shows little sign of tech splurging

BY CSA STAFF

MINNEAPOLIS — Earnings and comparable-store sales slipped at Best Buy, where the retailer suffered slower sales in key departments and a slowdown in consumer spending.Best Buy has reported net earnings of $177 million, or 47 cents per diluted share, for its fiscal second quarter ended Aug. 27, compared with $254 million, or 60 cents per diluted share, for the prior-year period.

The company reported total revenue of $11.3 billion for the quarter, which was essentially flat compared to the prior-year period and included a comparable-store sales decline of 2.8%. Comparable-store sales growth within the company’s domestic segment included mobile computing, appliances and e-readers. The online channel delivered a 13% revenue increase in the domestic segment during the quarter, driven largely by traffic growth. These sales gains were offset primarily by comparable-store sales declines in television, gaming, digital imaging and physical media. Mobile phones comparable-store sales fell 5%, which Best Buy blamed on ndustry softness driven by the lack of significant new phone launches during the quarter relative to the prior-year period.

Best Buy said that in light of consumer spending and CE industry trends it continues to expect full year revenue to be in the range of$51 billion to $52.5 billion. Comparable-store sales continued to be expected in the range of flat to a 3% decline. Annual net earnings per diluted share (EPS) are expected to be in the range of $3.35 to $3.65 (including the impact from fiscal 2012 share repurchases).

"I’d like to thank our employees around the world for continuing to provide a great experience for our customers," said Brian Dunn, CEO of Best Buy. "While results in the second quarter and our outlook reflect continued macro challenges to overall consumer spending and lower consumer electronics industry sales, we have made good progress on our key strategic focus areas in this environment. Looking forward to the important holiday season, I believe Best Buy is well positioned to bring the benefits of our multi-channel model to our customers and shareholders."

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HOT CONCEPTS

Uniqlo Pop-Ups

BY CSA STAFF

Uniqlo is popping-up all over Manhattan. As the prelude to the opening of its Fifth Avenue global flagship in October, the Japanese apparel retailer opened four temporary “Brand Shops” around the city. Each location is cleverly designed and smartly outfitted.

In addition, the retailer has opened six mobile pop-ups, called Uniqlo Cubes, that can fit into a variety of spaces. Four are traveling the city and making appearances at special events, and two are located next to the outdoor roller-skating rink below the High Line pedestrian walkway on the city’s West Side. (Uniqlo is also the sponsor of the rink, open July through September). The white cube-like structures, 64 sq. ft. each, were designed by HWKN, New York City, have a high-tech surface that glows brightly at night. Once the cube is put into its location, a section of the form slides open like a vault, allowing customers to enter.

Click here for More Hot Concepts.

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L.Jandayan says:
Mar-07-2013 10:57 am

Some business establishments
Some business establishments tend to open temporary shops in order to test if their business attracts attention of the consumers, this kind of strategy is good and will not let you spent a lot of time and money. If you see everything clicks, you can now go a permanent one. - J. Kale Flagg

L.Jandayan says:
Mar-07-2013 10:57 am

Some business establishments tend to open temporary shops in order to test if their business attracts attention of the consumers, this kind of strategy is good and will not let you spent a lot of time and money. If you see everything clicks, you can now go a permanent one. - J. Kale Flagg

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

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