Macy’s, Inc. Board of Directors Elects Jeff Gennette Chief Executive Officer

Macy’s, Inc. today announced that its board of directors has unanimously elected Jeff Gennette chief executive officer, effective this past week. As previously announced, Gennette succeeds Terry J. Lundgren, who will continue as executive chairman.macys inc

Jeff will be a terrific CEO for Macy’s, Inc. He has a deep knowledge of this company, coupled with the vision and determination to continue Macy’s transformation for the next generation. Jeff has a proven track record as a successful retail operator, seasoned merchant, and business leader and has contributed significantly to the company’s long history of success,” said Lundgren. “I’ve been honored to lead this great company, am thrilled to be passing the baton to such an exceptional leader, and look forward to my continued role on the board of directors.

Jeff Gennette - President and Chief Executive Officer, Macy's, Inc. (Photo Credit - Business Wire)

Jeff Gennette – President and Chief Executive Officer, Macy’s, Inc. (Photo Credit – Business Wire)

Gennette began his retail career in 1983 as an executive trainee at Macy’s West in San Francisco. He held positions of increasing responsibilities, including vice president and division merchandise manager for men’s collections, and senior vice president and general merchandise manager for men’s and children’s. In 2004, Gennette was appointed executive vice president and director of stores at Macy’s Central in Atlanta. During his career, he also served as a store manager for FAO Schwarz and director of stores for Broadway Stores, Inc. From February 2006 to February 2008, Gennette served as chairman and chief executive officer of Seattle-based Macy’s Northwest. February 2008 to February 2009 brought him back to San Francisco as chairman and CEO of Macy’s West.

It’s a very meaningful day for me as I take on the leadership of the company I’ve worked for and the colleagues I’ve worked with for more than 30 years. I’m honored to be taking on this role and excited about Macy’s prospects. While we certainly have our challenges, we also have great assets and opportunity. No company is better up to the task of re-invention than Macy’s,” said Gennette. “I want to personally thank Terry Lundgren for his leadership, his mentorship, and the support he has shown me over my career at Macy’s. Terry is a legend in retail and no one could have asked for a better teacher.

Jeff Gennette was elected president and chief executive officer on March 23, 2017. Prior to CEO, Gennette was president of Macy’s, Inc. since March 2014. Previously, he was the chief merchandising officer of Macy’s, Inc. (formerly known as Federated Department Stores, Inc.), a position to which he was appointed in February 2009.

Marna C. Whittington, Macy’s, Inc. lead independent director, added, “Jeff is an extremely talented executive who has had an enormous impact on the Macy’s, Inc. organization over his tenure. We are confident that he will be a strong leader, guiding the company on the path to growth and increasing shareholder value. On behalf of the entire board of directors, I also want to thank Terry for his outstanding leadership. We are happy to continue our partnership with him in his role of executive chairman.”

erry J. Lundgren - Executive Chairman, Macy's, Inc. and Chairman of the Board of Directors (Photo Credit - Business Wire)

Terry J. Lundgren – Executive Chairman, Macy’s, Inc. and Chairman of the Board of Directors (Photo Credit – Business Wire)

Terry Lundgren is executive chairman of Macy’s, Inc. and chairman of the board of directors, roles to which he was elected on March 23, 2017. Previously, Lundgren was chairman and chief executive officer of Macy’s, Inc. since January 2004, and also served as president and CEO from February 2003 to March 2014. Prior to 2003, he served as president and chief merchandising officer since May 1997.

Lundgren began his retailing career in 1975 as a trainee with Bullock’s, a Los Angeles-based division of Federated. He held positions of increasing responsibility over the next decade in buying, store management, human resources and senior-level store management, as well as serving as the division’s director of stores. Lundgren was named senior vice president and general merchandising manager of Bullock’s in 1984. In 1987, he was named president and chief executive officer of Bullocks Wilshire, then an upscale chain of specialty department stores owned by Federated.

Lundgren left Federated in 1988 to join Neiman Marcus, where he served as executive vice president and shortly thereafter was named chairman and chief executive officer. He returned to Federated in April 1994 as chairman and chief executive officer of the Federated Merchandising Group.

Target Reveals Design Elements of Next Generation of Stores

First, fully reimagined store to open this fall in Houston market, with plans to roll out new elements of design to hundreds more

Target Corporation today unveiled design elements for the company’s most ambitious store re-design to date, with plans for the first fully reimagined store to open in the Houston suburb of Richmond near Grand Parkway Southwest in Aliana’s Market Center From the stage at Shoptalk, the retail and e-commerce event held in Las Vegas, Target’s chairman and CEO Brian Cornell introduced Target’s newest store redesign plans as part of the company’s commitment to invest billions of dollars over the next three years to reimagine hundreds of existing stores.

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The inspiration entrance features displays of exclusive brands and inspiring seasonal moments. (Photo: Business Wire)

With our next generation of store design, we’re investing to take the Target shopping experience to the next level by offering more elevated product presentations and a number of time-saving features,” said Cornell. “The new design for this Houston store will provide the vision for the 500 reimagined stores planned for 2018 and 2019, with the goal of taking a customized approach to creating an enhanced shopping experience.”

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Elevated, cross-merchandise product presentations will amplify Target’s exclusive style assortment across various departments. (Photo: Business Wire)

The Next Generation of Target’s Store Design

In October, Target will open its first fully reimagined store 35 miles southwest of Houston. There, the new 124,000 square-foot store will offer guests the newest shopping experience as Target evolves its stores.

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New for Target, curved, more circular center aisles will feature merchandise displays to engage guests with compelling products in unexpected places. (Photo: Business Wire)

In addition to the Houston location, 40 additional stores will receive elements of Target’s next generation re-design when they are updated in October 2017. Guest feedback and learnings from this new design will influence Target’s customized approach to the 500 stores being reimagined in 2018 and 2019. Continue reading

IZOD Signs Multi-Year Marketing Partnership with 16 Times Grand Slam Champs, the Bryan Brothers

PVH Corp. announced today a multi-year marketing partnership agreement for its IZOD brand with Olympic gold medalists and champion tennis players, Bob and Mike Bryan. The Bryan Brothers will wear IZOD Advantage Performance apparel as official brand ambassadors, making their first appearance at the BNP Paribas Open in Indian Wells, CA, which runs from March 6-19, 2017.izod_golf

With 112 tour title wins, the Bryan Brothers are the most successful men’s tennis doubles team in history, holding the record for the most team match, tournament, and Grand Slam double victories.

We think there is no better pair to represent the IZOD brand both on and off the court, given their youthful spirits, and long-standing reign as champions in tennis,” said Mike Kelly, Executive Vice President of Marketing for PVH.

The Bryan Brothers will wear complete outfits from IZOD’s seasonal offerings including branded shirts, shorts, hats, and socks. They will appear in a national advertising campaign for IZOD, premiering this spring, and will participate in media appearances and retail opportunities.

IZOD Signs Multi-Year Marketing Partnership with 16 Times Grand Slam Champs, the Bryan Brothers

IZOD Signs Multi-Year Marketing Partnership with 16 Times Grand Slam Champs, the Bryan Brothers

We’re honored and excited to begin working with IZOD,” said Bob Bryan. “The brand has been developing some really innovative products and we look forward working with their design team to develop more.”

It was a natural progression to work with IZOD,” said Mike Bryan. “They have an impressive history of their own in tennis and golf, and a long legacy of partnering with great athletes. My brother and I are proud to join those ranks.”

Lane Bryant Introduces New Spring 2017 Campaign: Inspired by #ThisBody

Throughout the past year, Lane Bryant, the most recognized specialty size apparel brand, has shown what #ThisBody is made for, and how #ThisBody shines through negativity. Now, the company aims to demonstrate how #ThisBody’s powerful mantra inspires, through a message of body-inclusivity and empowerment with its newest campaign: Inspired by #ThisBody.

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Lane Bryant Introduces New Spring 2017 Campaign: Inspired by #ThisBody

Inspired by #ThisBody enlists the talent of some beyond inspirational women: recording artist Lizzo, artist and poet Ashlee Haze, and members of the dance company, Pretty Big Movement. Through powerful and thought-provoking imagery and video, shot by famed fashion photographer Peggy Sirota, Lane Bryant will invite those who interact with the campaign to share what inspires #ThisBody throughout their daily lives.

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Lane Bryant Introduces New Spring 2017 Campaign: Inspired by #ThisBody

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Lane Bryant Introduces New Spring 2017 Campaign: Inspired by #ThisBody

Inspired by #ThisBody will also include powerful testimonials from Lizzo, Ashlee, and Pretty Big Movement, sharing how each woman was inspired along her respective journey to who she is today. The campaign will roll out across Lane Bryant’s stores and social media channels, as well as on billboards, magazines, partnerships with Refinery 29 and Glamour, as well as a strong digital presence. Fashion from the campaign creative is also shoppable in store and on www.lanebryant.com.

The campaign will be visible throughout the pages of top publications, including the 2017 Sports Illustrated Swimsuit Issue (with an ad starring model Denise Bidot in Cacique Swim) and Glamour magazine. The Prabal Gurung X Lane Bryant collection also debuted in the March issue of Vogue magazine, with an Inspired by #ThisBody-esque ad starring Gurung and campaign model Ashley Graham.

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Lane Bryant Introduces New Spring 2017 Campaign: Inspired by #ThisBody

Continue reading

New York & Company Launches Customer-Inspired Capsule Collections

The #IAmNYandCo Campaign Launched Online and in Atlanta Stores on February 22nd

Specialty women’s apparel chain, New York & Company, Inc. has announced the launch of collections inspired by customers. These collections will derive inspiration directly from New York & Company’s most loyal shoppers to create diverse styles that attest to the brand’s dedication to empowering women.

The first collection of this kind is inspired by long-time New York & Company customer, Dr. Roblena E Walker. Walker, a Research Scientist and Public Health Professor, has been a loyal New York & Company client for over 20 years. Since her first purchase of white-washed boot cut jeans, Walker has believed in the clothing and the brand. “The thing I love most about this brand is that the pieces are more than just clothes – it’s a way of life. I am New York & Company,” Walker expresses. “When I slip on a beautiful dress and statement necklace, I can conquer any obstacle I may encounter. More importantly, I immediately obtain a huge boost in confidence that further positions me to empower other women.”

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Dr. Roblena E Walker, a Research Scientist and Public Health Professor, has been a loyal New York & Company client for over 20 years and the inspiration for New York & Company’s first Customer-Inspired Capsule Collection.

Walker stars in the brand’s newest campaign, where she styles each look herself. “It’s always exciting to see how our clients style each piece in their own way,” states Greg Scott, CEO of New York & Company. “We will continue turning to them for inspiration while in doing so, #IAmNYandCo will give women who share a love for fashion a chance to inspire each other.”NYCo logo and web

To celebrate, New York & Company is hosting in-store launch parties for Walker in her hometown of Atlanta, GA on February 24th and 25th at Cumberland Mall and The Shoppes at Webb Gin, respectively. The capsule collection will consist of 9 styles, which is now available online and in select Atlanta stores.

Retail News: Macy’s, Inc. Reports Fourth Quarter and FY2016 Results

Diluted 2016 EPS is $1.99, or $3.11 as adjusted; Company provides 2017 sales and earnings guidance

Macy’s, Inc. (NYSE: M) today reported fiscal 2016 earnings per diluted share of $1.99, or $3.11 per diluted share excluding certain items discussed below.macyslogo

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2016 sales of $25.778 billion. The company operates more than 700 department stores under the nameplates Macy’s and Bloomingdale’s, and approximately 125 specialty stores that include Bloomingdale’s Outlet, Bluemercury and Macy’s Backstage, in 45 states, the District of Columbia, Guam and Puerto Rico, as well as the macys.com, bloomingdales.com, and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.

While 2016 was not the year we expected, we made significant progress on key initiatives that are starting to bear fruit. These include continued improvement in our digital platforms, the rollout of our new approach to fine jewelry and women’s shoes, an increase in exclusive merchandise and the refinement of our clearance and off-price strategy. We also took a big step forward in rightsizing our physical footprint and restructuring our entire organization. The combination of these initiatives will help us gain market share, return to growth and drive enhanced value for our shareholders over time,” said Terry J. Lundgren, Macy’s chairman and chief executive officer.

We will be investing for the future in 2017. Looking at the continued challenges in the retail environment and changing consumer shopping behaviors, we know we must evolve our strategy and execute faster,” Lundgren said. “Key to this is enhancing the customer experience in our stores where we are developing and testing concepts that feature new merchandise and entertainment options alongside enhanced technology to make shopping simpler. Additional initiatives that we believe will improve sales trends in 2017 include continued omnichannel improvements, an updated marketing strategy, and a simplified pricing structure.”

We continued to make progress on the execution of our real estate strategy in the fourth quarter of 2016 and will carry that momentum into 2017. Overall, real estate transactions in fiscal 2016 generated cash proceeds of approximately $675 million, which is helping to fund continued reinvestment in the business. We also began work on deriving value from our partnership with Brookfield Asset Management. We are excited by the potential of our real estate strategy, and in 2017, we will focus on advancing the Brookfield partnership and continuing to monetize the locations that we have closed or plan to close. We are also developing strategies that will help create value for Herald Square while making the store an even more vibrant retail experience,” Lundgren added.

For the full year 2016, adjusted earnings (excluding items described below) were $3.11 per diluted share. This exceeds the company’s most recent guidance for 2016 earnings of $2.95 to $3.10 on the same basis. Fiscal 2016 comparable sales on an owned basis declined by 3.5 percent. On an owned plus licensed basis, comparable sales for fiscal 2016 declined by 2.9 percent. This compares to the most recent guidance for 2016 sales on an owned plus licensed basis to be down 2.5 percent to 3.0 percent.

Sales

Sales in the fourth quarter of 2016 totaled $8.515 billion, down 4.0 percent from total sales of $8.869 billion in the fourth quarter of 2015. On an owned basis, fourth quarter comparable sales declined by 2.7 percent. Comparable sales on an owned plus licensed basis for the fourth quarter were down 2.1 percent.

Sales in fiscal 2016 totaled $25.778 billion, down 4.8 percent from total sales of $27.079 billion in fiscal 2015. On an owned basis, fiscal 2016 comparable sales were down 3.5 percent. Comparable sales on an owned plus licensed basis for fiscal 2016 declined by 2.9 percent.

In fiscal 2016, the company opened 27 stores and closed 66 stores, all as previously announced. Macy’s, Inc. plans to close an additional approximately 34 stores over the next few years for a total of approximately 100 stores. New stores opened in fiscal 2016 included one Macy’s store in Kapolei, HI, 24 Bluemercury freestanding stores, one Macy’s Backstage freestanding store in San Antonio, TX, and one Bloomingdale’s Outlet in Orange, CA.

Operating Income

Macy’s, Inc.’s operating income totaled $815 million, or 9.6 percent of sales, for the fourth quarter ended Jan. 28, 2017, compared with operating income of $936 million, or 10.6 percent of sales, for the fourth quarter of fiscal 2015.

Macy’s, Inc.’s fourth quarter 2016 operating income included $230 million of impairments, store closing, and other costs. The $230 million included $38 million of asset impairment charges primarily related to the store closings announced in January 2017, $166 million of severance and other costs primarily associated with organizational changes and store closings announced in January 2017 and $26 million of other related costs and expenses. Excluding these items, as well as non-cash settlement charges related to the company’s retirement plans of $17 million, operating income for the fourth quarter of 2016 was $1.062 billion or 12.5 percent of sales.

Fourth quarter 2015 operating income included $177 million of impairments, store closing, and other costs. Excluding these items, operating income for the fourth quarter of 2015 was $1.113 billion or 12.6 percent of sales.

For fiscal 2016, Macy’s, Inc.’s operating income totaled $1.315 billion, or 5.1 percent of sales, compared with operating income of $2.039 billion, or 7.5 percent of sales, for fiscal 2015.

Macy’s, Inc.’s fiscal 2016 operating income included $479 million of impairments, store closing, and other costs. The $479 million included $265 million of asset impairment charges primarily related to the store closings announced in January 2017, $168 million of severance and other costs primarily associated with organizational changes and store closings announced in January 2017 and $46 million of other related costs and expenses. Excluding these items, as well as non-cash settlement charges related to the company’s retirement plans of $98 million, operating income for fiscal 2016 was $1.892 billion or 7.3 percent of sales.

Macy’s, Inc.’s fiscal 2015 operating income included $288 million of impairments, store closing, and other costs. Excluding these items, operating income for fiscal 2015 was $2.327 billion or 8.6 percent of sales. Continue reading

Ralph Lauren Corporation Strengthens Leadership with Chief Marketing Officer and Men’s Brand President Appointments

Jonathan Bottomley to lead enterprise-wide marketing and Tom Mendenhall to head all men’s brand functions

Ralph Lauren Corporation (NYSE:RL) announces two senior executive appointments, further solidifying its leadership team in support of its Way Forward Plan.ralph-lauren

Jonathan Bottomley has been named Chief Marketing Officer, a newly created role for the Company. He will be responsible for evolving Ralph Lauren’s brand voice, leading the global marketing team and building cut-through marketing strategies across the Company’s brands.

Bottomley joins Ralph Lauren most recently from Vice Media, where he served as Chief Strategy Officer. Prior to that, he was Chief Strategy Officer and Managing Partner in the London headquarters of Bartle Bogle Hegarty where he led strategic brand-building efforts for clients across the luxury and consumer lifestyle sectors. He will be a part of the Company’s Executive Team and dual report to Valerie Hermann, President of Global Brands and Ralph Lauren, Executive Chairman and Chief Creative Officer, on an interim basis. He will then report to the new CEO, once that appointment is made. He begins at the Company on April 3.

Tom Mendenhall has been named Brand President, Men’s Polo, Purple Label and Double RL. In this newly created role, all men’s brand functions will report into Mendenhall, including design and merchandising, and he will be charged with maximizing brand strength to improve sales growth.

Mendenhall joins Ralph Lauren from Tom Ford International, where he served as Chief Operating Officer for more than a decade, working alongside Tom Ford to build the brand from its inception. Prior to that, Tom was a Senior Vice President at Abercrombie & Fitch. He also spent eight years as Worldwide Director of Merchandising at Gucci. He will report to Valerie Hermann, President of Global Brands, and will begin with the Company on March 29.

Ralph Lauren said, “As we write our next chapter, we continue to add exceptionally strong leaders with the passion, energy, and talent to lead our Company into the future. Both Jonathan and Tom bring a fresh perspective and incredible depth of brand experience to Ralph Lauren. They each have impressive track records and we are looking forward to welcoming them into our leadership as our evolution continues.

Hermann added, “Jonathan and Tom will play critical roles as we move forward in our evolution as a brand and Company. Jonathan’s innovative, integrated approach will bring freshness and cohesion to our iconic marketing efforts, while Tom’s proven experience and recognized excellence in men’s will support our continued growth in this category.”