Movado’s Juicy Couture License Expires

Movado didn’t renew its license for Juicy Couture watches, ending a 13-year run with the Authentic Brands Group label, the company said in a 10K filing with the SEC. Meanwhile, the company extended its Hugo Boss license, first signed in 2006, last November to 2023. Movado is readying a new sub-brand, Hugo, with a goal of attracting younger consumers with a “modern design, casual feel” and lower price, CEO Efraim Grinberg told analysts. The Hugo Boss products have posted strong sales growth in Europe and have “significant opportunity” for expanding business in the U.S. and China, Grinberg said. Movado also sells licensed Coach, Rebecca Minkoff, Lacoste, Tommy Hilfiger and Ferrari watches, the latter agreement amended in November to apply to products “not to exceed” a €2,500 retail price, Movado said.

Movado’s licensed brands accounted for 48.8% of $567.9 million in sales in the year ended Jan. 31. No single license accounted for more than 20% of Movado’s consolidated net sales, the company said. For the year,  sales of licensed brands increased 4.5% to $277.3 million, while those of owned labels slipped slightly to $204.8 million.

In Q4, the company had a $33.7 million net loss, compared to a $5.2 million profit in the year-earlier period, due largely to a $47 million tax expense provision tied to the new federal tax law. Q4 revenue rose 14.1% to $149.2 million.

Contact:

Movado Group, Sallie DeMarsilis, Chief Financial Officer, 201-267-8000

Dollarama Planning to Have 1,700 Stores by 2027

Canadian value retailer Dollarama plans to open 60-70 stores in Canada this year with a target of having 1,700 locations by 2027, CEO Neil Rossy told analysts. As part of the store expansion plans, Dollarama, which has 1,160 locations, will double the size of its Montreal distribution center to 500,000 sq. ft. by late 2019, Rossy said. The chain also has an option to buy a majority stake in 37-store Dollar City, which has stores in El Salvador (25), Guatemala (2) and Colombia (10), in 2019. Dollarama’s net income grew 11.5% to C$162.8 million in Q4 ended Jan. 28 as revenue rose 9.8% to C$938.1 million on a 5.5% gain in same-store sales.

Contact:

Dollarama, Michael Ross, Chief Financial Officer, 514-737-1006 x1237, Michael.ross@dollarama.com

Bon-Ton Stores in ‘Active Discussions’ with Potential Bidders

Bon-Ton Stores is in “active discussions” with potential buyers of the bankrupt chain amid an April 4 deadline for submitting bids. Bon-Ton, which filed for bankruptcy earlier this year, operates 251 stores (Bon-Ton, Carson’s, Elder-Beerman and Younkers). An auction is set for April 9, and a hearing to approve a potential sale on April 13. Meanwhile, the company posted a $62.9 million loss in the Feb. 4-March 3 period on $147.4 million in sales, it said in a court filing. The loss included a million in bankruptcy expenses.

Contact: Bon-Ton Stores, Michael Culhane, Chief Financial Officer, 717-757-7660

Executives

Brent Novak, ex-Ixia Business Group, named CFO at Jakks Pacific… Robert Denton, ex-Artisan Home Entertainment, joins Genius Brands International as CFO.

Contacts:

Genius Brands International, Robert Denton, Chief Financial Officer, 310-273-4222

Jakks Pacific, Brent Novak, Chief Financial Officer, 424-268-9444, bnovak@jakks.net