Direct To Consumer (DTC)

By Ted Vaughan, [email protected]

The year 2012 was the best year for retail IPOs since 2002 — S&P Capital IQ reported seven offerings for the year — and when we released our 2013 IPO Outlook Study earlier this year, 30% of capital markets executives expected initial public offerings (IPOs) in the retail and consumer products space to continue to grow in 2013. Now that we’re well into the second half of the year, how have those expectations fared?

Columbus, Ohio -- The Limited said Wednesday it has appointed former Brooks Bros. president and COO Diane Ellis as its new CEO, effective Aug. 26.
 
In her role at Brooks Bros., Ellis oversaw information technology, human resources, retail and outlet stores, planning and allocation, product development, sourcing, supply chain, e-commerce and finance.

Webster, Texas -- Seattle-based Nordstrom will add a new Nordstrom Rack location in the Houston area, opening a 31,000-sq.-ft. store in spring 2015 at Baybrook Square in Webster, Texas.

The Baybrook Square Rack will be the fourth Houston-area off-price store for Nordstrom. In July the company announced plans to open a third Rack location at Willowbrook Mall in fall 2014.

The new Nordstrom Rack will move into a space currently occupied by DSW, which is relocating within the center. Baybrook Square is managed by Fidelis Realty Partners.

Philadelphia - David Johnston, COO of Five Below, Inc., will leave his position at the company effective Aug. 31. In the wake of his departure, the company is seeking a president who will report directly to co-founder and CEO Thomas Vellios.

Walmart may make a bid for 345 store Hong Kong supermarket chain known as ParknShop that is owned by Hutchison Whampoa, according to a Reuters report that cited people familiar with the matter.

Walmart is often linked to international retailers as a potential acquirer and according to the Reuters report it is among eight potential suitors for ParknShop who have until August 16 to submit preliminary offers.

Affluent shoppers feeling better about their personal balance sheets helped global luxury brand Tumi grow total sales by 12.9%, same store sales by 4.6% and double profits in the second quarter ended June 24.

Best known for its expensive luggage, Tumi said sales total $108.2 million during the period and profits increased to $11.2 million, or 16 cents a share, compared to profits of $6.5 million, or 10 cents a share in the same period the prior year.

Minneapolis -- Target Corp. announced plans to acquire online beauty retailer DermStore for an undisclosed sum.

The move will allow Target to further tap into the online beauty market, as well as continue its trend toward acquiring specialty businesses to ramp up its presence in various niche markets. In March, Target announced its acquisition of Chefs Catalog and Cooking.com in two separate transactions to create a subsidiary.

New York -- Fashion presence Michael Kors Holdings Ltd. reported a first-quarter profit of $125 million, nearly double the $68.6 million profit of the year-ago period.

Revenue for the quarter ended June 29 soared 54% percent to $640.9 million, well above Wall Street’s expected $570.5 million. Same-store sales climbed 27.3%. In North America, which generates 86% of the company's business, same-store sales rose 25%.

New York -- Tween apparel retailer Delia’s has hired Daphne Smith as the company’s executive VP operations, reporting to CEO Tracy Gardner.

Smith was previously with J. Crew for 16 years, working in various roles including senior VP of direct. She has spent the past 18 months at New York & Company as the company’s senior VP e-commerce.

Pittsburgh – American Eagle Outfitters is lowering its earnings outlook for the second quarter of fiscal 2013 due to what the retailer characterizes as weak sales and margins. The company now forecasts earnings per share (EPS) for the quarter of about $0.10, down significantly from $0.21 in the second quarter of last year.