Coach Gets Exclusive With Saks and Rumors of a Collabo With J.C. Penney

Saks Fifth Avenue has been tapped by Coach to be the exclusive retailer for the Reed Krakoff line that will debut this fall. This exclusive arrangement will last for six months, after which Saks will continue to have some form of exclusivity when distribution of the brand widens.

But the news that has the fashion blogosphere buzzing is the rumor that Coach may collaborate with J.C. Penney on an accessories collection:

Coach chairman and chief executive officer Lew Frankfort — spotted chatting with Penney’s chairman and ceo Myron E. “Mike” Ullman 3rd at the Mandarin Hotel, scene of Thursday’s night Global Department Store Summit dinner — acknowledged a collaboration is a possibility, but he stressed it would not be under the Coach label and it would have to be a new brand for the new channel. Ullman said nothing after Frankfort made his comment.

So, what will this new brand be called? According to the U.S. Patent and Trademark Office, since December 2009, the company has registered three trademarks: "Ribbon", "Sonoma" and "510". The goods and services that could be launched under these trademarks range from accessories such as handbags, wallets and backpacks, and, in the case of the "510" trademark, beauty products and clothing. Coach aficionados will recognize the "Sonoma" name from the company's Sonoma Collection of the late '90s. Might Coach revive that line for J.C. Penney? Time will tell.


Disclosure: Haute Retail holds positions in Coach, Inc.

HR Quarterly Round-Up: Abercrombie & Fitch, Saks, Limited Brands

Abercrombie & Fitch Narrows F1Q Loss, Expanding Abroad (WSJ): Abercrombie & Fitch Co.'s (ANF) fiscal first-quarter loss narrowed, and the high-priced teen-apparel retailer outlined further plans to expand its presence overseas.

Saks Profit Surpasses Projections on Fewer Markdowns (Businessweek): Saks Inc., the New York-based luxury retail chain, reported first-quarter earnings that beat analysts’ estimates after marking down fewer goods.

Limited Brands Beats Street, Outlook Disappoints (Reuters): Limited Brands Inc., the operator of the Victoria's Secret and Bath & Body Works chains, posted better-than-expected quarterly net income on Wednesday, but the midpoint of a profit outlook fell short of expectations, sending the company's shares down 5 percent.

HR Quarterly Round-Up: Saks, Revlon, Limited Brands

Vintage Revlon Ad From The July 1949 Issue of Ladies' Home Journal

(Photo: Vintage 123)

Saks Fourth-Quarter Loss Narrows As Luxury Demand Heals (MarketWatch): Luxury retailer Saks Inc.'s fourth-quarter loss narrowed after it controlled inventory and expenses and slowed the rate of its sales decline.

Revlon 4Q Profit Up As International Sales Climb (Business Week): Beauty products company Revlon Inc. said Thursday that its profit rose 13 percent in the fourth quarter as reduced expenses, increased international sales and favorable exchange rates more than offset lower sales in the U.S.

Limited Beats Street, Bullish On February Sales (Reuters): Limited Brands Inc posted sharply higher profit on Wednesday that beat Wall Street estimates, and said its February same-store sales would likely be far better than expected.

Saks Drops "Poison-Pill" Plan

From NYTimes.com:

Saks Dismantles Shareholder Rights Plan
December 14, 2009, 6:48 pm

Saks said on Monday it was ending changes it made to its shareholders rights plan last year when it sought to prevent a potential hostile takeover by Mexican billionaire investor Carlos Slim Helu, Reuters reported.

In a statement, Saks’s chief executive, Steve Sadove, said those steps were “no longer necessary” because of a change made last month to its revolving credit agreement, which raised a “change-of-control” threshold to 40 percent from 20 percent.

In November 2008, the upscale retailer, known for its flagship Saks Fifth Avenue store in Manhattan, introduced the changes to protect itself after Mr. Slim reported a stake in the company of 17.8 percent, making him the biggest investor.

At the time, the company said it would distribute one preferred share purchase right for each outstanding share of Saks common stock.

Saks had also said last year that if any individual or investor reached or surpassed a 20 percent stake, those rights would let shareholders buy shares at a 50 percent discount and give them ammunition to block an unwanted overture.

Saks said at the time that the action was intended to “impose a significant penalty upon any person or group” acquiring 20 percent.

Mr. Slim owned 25.6 million shares, or 16.1 percent, of Saks’s shares as of April 6, the most recent date for which data is available, according to Thomson Reuters.