Ksubi claims that they have taken up to $7 million in losses for the year.

The Australian Tax Office has been the main opposition against a proposed agreement that would make Quicksilver’s founder Harry Hodge and Ksubi’s Distributor, Bleach, to pay $5 million for the business in parts until March 2013.

Mr Billingham stated there is “no doubt that the books and records of the company were insufficient, therefore the statutory assumption of insolvency will apply”.

He then goes on to say “he did not believe that the directors have any significant financial assets, which would make it commercially viable to pursue any insolvent trading claims,”

Despite a weak start to the holiday shopping season and snowstorms on historically big spending days, the nation’s retailers managed to have a better Christmas than in 2008, according to the latest data

Read whole article at NYTimes

Japanese fashion designer Yohji Yamamoto recently presented his black, white and edgy designs at Spring-Summer 2010 fashion week in Paris but things weren’t so rosy behind the scenes. The brand has filed for bankruptcy protection listing debts of six billion yen, or $67.8 million. The firm is planning to continue to operate while in bankruptcy. The brand Yohji Yamamoto was formed by the designer in 1984 and he is part of an influential group of designers from Japan, including Rei Kawakubo and Issey Miyake, who gained influence in the 1980s. The brand’s moderately priced Y-3 line with Adidas is set to continue.

The economy is being blamed for the financial situation. Japan’s luxury market appears to be less robust lately, especially in light of the recent announcement by Versace that it is closing its Japan boutiques. But Yamamoto’s popularity extends beyond Japan. The minimalist line, which offers easy-to-wear clothing with unique cuts, has a small but devoted following. Other nIche brands like Escada and Christian Lacroix has faced similar financial woes. As in other industries smaller fashion businesses often don’t have the resources or name recognition to compete once overall spending goes down. Another determining factor for many of the smaller brands has also been the decrease in orders from department stores. As stores and boutiques trim their orders many of the less well-known brands are being left behind.

UPDATE:Yohji Yamamoto Inc. has found a new investor. Integral Corp., a Japanese private equity fund, will finance the company’s restructure. WWD says that pending court approval, Integral plans to create a separate company to acquire the Yamamoto business and assets which will become the new Yohji Yamamoto Inc. with Yamamoto himself retaining a minority stake.

Source :  Luxist.com

The amount represents about 6.2 percent of the off-price retailer’s…

Source WWD

Fashion is a business in which copying plays a major role in driving new styles and trends. Marc Jacobs putting his own twist on a classic Chanel design; fashion on the streets inspiring fashion on the runway; low-end retailers democratizing high-end trends by selling more cheaply made versions of designer apparel—these are all integral parts of the fashion ecology. It is thanks to copying that trends have such a frantic life cycle.

Read Full Article At : Publicknowledge

TOKYO–Takashimaya Co. announced a steep drop both in sales and profits for the first quarter ended May 31.

Net profit dropped a whopping 93 percent to 316 million yen,…

Source : WWD & Takashimaya

Retail is definatly hurting during this economic downturn.

Source:  WWD

LONDON, United Kingdom — “Men’s and women’s polo t-shirts in 25 colours from £12.99!” Ads announcing this Uniqlo promotion have been plastered alongside London buses this month, as well as being featured front-and-centre in Uniqlo shops everywhere. Same-store sales rose 18.3 percent in May 2009 over last year for the Japanese retailer, and the company’s stock hit five-year record highs.

Over at American Apparel, which uses a similar merchandising approach, total retail sales increased 16.5 percent to $78 million for the first quarter of 2009 compared to the same period in 2008. It would seem that both American Apparel and Uniqlo have managed to accurately address the mood of the market, hitting a sweet spot in an otherwise suffering sector. Although many factors play into these high street success stories, it is worth having a closer look at the merchandising strategy shared by both, offering a functional item in a variety of colours and encouraging the purchase of multiple units.

Read more of this article at : business of fashion

The Company reported a net loss of $3.1 million for the 13 weeks ended May 2, 2009 compared to net earnings of $55.4 million in the prior year. EBITDA for the third quarter of fiscal year 2009 was $105.3 million compared to EBITDA of $202.0 million in the third quarter of fiscal year 2008.

For the 39 weeks ended May 2, 2009, the Company reported total revenues of $2.88 billion compared to $3.57 billion in the prior year. Comparable revenues decreased 20.8 percent. The Company recorded an operating loss for the 39 weeks ended May 2, 2009 of $460.8 million compared to operating earnings of $472.6 million for the comparable period a year ago. Adjusted operating earnings for the 39 weeks ended May 2, 2009 were $99.3 million compared to $440.1 million for the comparable period a year ago.

Including non-cash impairment charges of $560.1 million and a $32.5 million pension curtailment gain as described below under “Other Items,” the Company reported a net loss of $499.5 million for the 39 weeks ended May 2, 2009 compared to net earnings of $178.5 million in the prior year. Adjusted EBITDA for the 39 weeks ended May 2, 2009 was $268.1 million compared to Adjusted EBITDA of $599.7 million for the comparable period a year ago.

This release contains information regarding the Company’s adjusted operating earnings, EBITDA and adjusted EBITDA, all of which are non-GAAP financial measures. A reconciliation of these figures to the most directly comparable GAAP figures, together with certain other information, can be found at the end of this release.

Other Items

The Company recorded non-cash impairment charges of $560.1 million in the second quarter of fiscal year 2009 which represents 1) $291.1 million pretax impairment charge related to the writedown to fair value of goodwill 2) $242.2 million pretax impairment charge related to the writedown to fair value of the net carrying value of tradenames and 3) $26.8 million pretax impairment charge related to the writedown to fair value of the net carrying value of certain long-lived assets. The Company also recorded other income of $32.5 million in the first quarter of fiscal year 2008 which represents a one-time pension curtailment gain as a result of the Company’s decision to freeze pension and retirement benefits as of December 31, 2007.

A live webcast of the conference call on earnings can be accessed through the Investor Information section of the Neiman Marcus, Inc. website at www.neimanmarcusgroup.com on Wednesday, June 10, 2009 beginning at 9:00 a.m. Central Standard Time. Following the live broadcast, interested parties may replay the webcast by accessing this website. To access financial information that will be presented during the call, please visit the Investor Information section of the Neiman Marcus, Inc. website at www.neimanmarcusgroup.com.

From time to time, the Company may make statements that predict or forecast future events or results, depend on future events for their accuracy or otherwise contain “forward-looking information.” These statements are made based on management’s expectations and beliefs concerning future events and are not guarantees of future performance.

The Company cautions readers that actual results may differ materially as a result of various factors, some of which are beyond its control, including but not limited to: political or economic conditions; terrorist activities in the United States and elsewhere; disruptions in business at the Company’s stores, distribution centers or offices; changes in consumer confidence resulting in a reduction of discretionary spending on goods; changes in demographic or retail environments; changes in consumer preferences or fashion trends; competitive responses to the Company’s marketing, merchandising and promotional efforts; changes in the Company’s relationships with key customers; delays in the receipt of merchandise; seasonality of the retail business; adverse weather conditions, particularly during peak selling seasons; delays in anticipated store openings or renovations; natural disasters; significant increases in paper, printing and postage costs; litigation that may have an adverse effect on the Company’s financial results or reputation; changes in the Company’s relationships with designers, vendors and other sources of merchandise; the Company’s success in enforcing its intellectual property rights; the effects of incurring a substantial amount of indebtedness under the Company’s senior secured credit facilities, senior notes and senior subordinated notes and of complying with the related covenants and conditions; the financial viability of the Company’s designers, vendors and other sources of merchandise; the design and implementation of new information systems or enhancement of existing systems; changes in foreign currency exchange rates or inflation rates; impact of funding requirements related to the Company’s noncontributory defined benefit pension plan; changes in the Company’s relationships with certain of key sales associates; changes in key management personnel; changes in the Company’s proprietary credit card arrangement that adversely impact its ability to provide consumer credit; or changes in government or regulatory requirements increasing the Company’s cost of operations.

These and other factors that may adversely effect the Company’s future performance or financial condition are contained in its Annual Report in Form 10-K and other reports filed with and available from the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances.

NEIMAN MARCUS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

May 2, April 26,
(in thousands) 2009 2008

ASSETS
Current assets:
Cash and cash equivalents $ 229,388 $ 206,104
Merchandise inventories 865,980 958,895
Other current assets 165,098 144,743
Total current assets 1,260,466 1,309,742

Property and equipment, net 1,015,060 1,071,875
Goodwill and intangible assets, net 3,437,578 4,095,249
Other assets 69,462 83,717
Total assets $ 5,782,566 $ 6,560,583

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 158,975 $ 234,457
Accrued liabilities 347,421 402,187
Total current liabilities 506,396 636,644

Long-term liabilities:
Long-term debt 2,963,311 2,946,053
Deferred income taxes 771,409 966,844
Other long-term liabilities 449,181 300,061
Total long-term liabilities 4,183,901 4,212,958

Total shareholders’ equity 1,092,269 1,710,981
Total liabilities and shareholders’ equity $ 5,782,566 $ 6,560,583

NEIMAN MARCUS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)

Thirteen Weeks Ended Thirty-Nine Weeks Ended
May 2, April 26, May 2, April 26,
(in thousands) 2009 2008 2009 2008

Revenues $ 810,086 $ 1,062,161 $ 2,875,253 $ 3,568,259
Cost of goods sold including buying and occupancy costs 514,765 636,987 1,953,877 2,217,357
Selling, general and administrative expenses 200,515 238,855 686,959 803,404
Income from credit card program, net (10,494 ) (15,704 ) (33,682 ) (52,267 )
Depreciation expense 36,667 35,474 114,378 105,695
Amortization of intangible assets 13,845 13,568 40,981 40,747
Amortization of favorable lease commitments 4,469 4,385 13,408 13,155
Impairment charges – – 560,159 –
Other income – – – (32,450 )

Operating earnings (loss) 50,319 148,596 (460,827 ) 472,618

Interest expense, net 58,250 57,303 174,676 178,923

(Loss) earnings before income taxes (7,931 ) 91,293 (635,503 ) 293,695

Income tax (benefit) expense (4,796 ) 35,898 (135,990 ) 115,239

Net (loss) earnings $ (3,135 ) $ 55,395 $ (499,513 ) $ 178,456

NEIMAN MARCUS, INC.
OTHER OPERATING DATA
(UNAUDITED)

SEGMENTS: Thirteen Weeks Ended Thirty-Nine Weeks Ended
May 2, April 26, May 2, April 26,
(dollars in millions) 2009 2008 2009 2008

REVENUES:
Specialty Retail Stores $ 665.6 $ 893.6 $ 2,363.2 $ 2,991.5
Direct Marketing 144.5 168.6 512.0 576.8
Total $ 810.1 $ 1,062.2 $ 2,875.2 $ 3,568.3

OPERATING EARNINGS (LOSS):
Specialty Retail Stores $ 62.6 $ 151.3 $ 143.2 $ 444.8
Direct Marketing 20.4 28.0 54.4 93.2
Corporate expenses (14.4 ) (12.8 ) (43.9 ) (44.0 )
Amortization of intangible assets and favorable lease commitments
(18.3 ) (17.9 ) (54.4 ) (53.9 )
ADJUSTED OPERATING EARNINGS* $ 50.3 $ 148.6 $ 99.3 $ 440.1
Impairment charges – – (560.1 ) –
Other income – – – 32.5
OPERATING EARNINGS (LOSS) $ 50.3 $ 148.6 $ (460.8 ) $ 472.6

*Adjusted operating earnings, a non-GAAP financial measure, represents operating earnings (loss) excluding impairment charges and other income.

Neiman Marcus, Inc. believes reporting adjusted operating earnings is a more meaningful representation of the Company’s on-going economic performance and therefore uses adjusted reporting internally to evaluate and manage the Company’s operations. Neiman Marcus, Inc. has chosen to provide this information to investors to enable them to perform more meaningful comparisons of operating results and as a means to emphasize the results of on-going operations. Adjusted operating earnings is not a recognized term under generally accepted accounting principles (GAAP). Adjusted operating earnings should not be considered as an alternative to operating earnings (loss) or net earnings (loss) as a measure of operating performance or cash flows as a measure of liquidity. Adjusted operating earnings should not be considered in isolation to, or as a substitute for, analysis of the Company’s results reported in accordance with generally accepted accounting principles. Adjusted operating earnings as presented herein are not necessarily comparable to similarly titled measures.

NEIMAN MARCUS, INC.
OTHER OPERATING DATA
(UNAUDITED)

OTHER DATA:

Thirteen Weeks Ended Thirty-Nine Weeks Ended
May 2, April 26, May 2, April 26,
(dollars in millions) 2009 2008 2009 2008

Capital expenditures $ 17 $ 45 $ 81 $ 133

Depreciation $ 37 $ 35 $ 114 $ 106
Amortization of intangibles $ 18 $ 18 $ 54 $ 54

Rent expense $ 20 $ 22 $ 64 $ 70

EBITDA* $ 105 $ 202 $ (292 ) $ 632
Adjusted EBITDA* $ 105 $ 202 $ 268 $ 600

*For an explanation of EBITDA and Adjusted EBITDA, see “Non-GAAP Financial Measure.”

NEIMAN MARCUS, INC.
NON-GAAP FINANCIAL MEASURE
(UNAUDITED)

The following table reconciles net (loss) earnings as reflected in the Company’s consolidated statements of

earnings prepared in accordance with GAAP to EBITDA and Adjusted EBITDA:

Thirteen Weeks Ended Thirty-Nine Weeks Ended
May 2, April 26, May 2, April 26,
(dollars in millions) 2009 2008 2009 2008

Net (loss) earnings $ (3.1 ) $ 55.4 $ (499.5 ) $ 178.5
Income tax (benefit) expense (4.8 ) 35.9 (136.0 ) 115.2
Interest expense, net 58.2 57.3 174.7 178.9
Depreciation 36.7 35.5 114.4 105.7
Amortization of intangible assets and favorable lease commitments
18.3 17.9 54.4 53.9
EBITDA 105.3 202.0 (292.0 ) 632.2
Non-cash impairment of long-lived assets – – 560.1 –
Non-cash gain on curtailment of defined benefit retirement obligations
– – –
(32.5
)

Adjusted EBITDA $ 105.3 $ 202.0 $ 268.1 $ 599.7

We present the non-GAAP financial measures EBITDA and Adjusted EBITDA because we use these measures to monitor and evaluate the performance of our business and believe the presentation of these measures will enhance investors’ ability to analyze trends in our business, evaluate our performance relative to other companies in our industry and evaluate our ability to service our debt. In addition, we use EBITDA and Adjusted EBITDA as components of the measurement of incentive compensation.

EBITDA and Adjusted EBITDA are not presentations made in accordance with GAAP and this computation may vary from others in the industry. In addition, EBITDA and Adjusted EBITDA contain some, but not all, adjustments that are taken into account in the calculation of the components of various covenants in the indentures governing the Company’s senior secured Asset-Based Revolving Credit Facility, Senior Secured Term Loan Facility, Senior Notes and Senior Subordinated Notes. EBITDA and Adjusted EBITDA should not be considered as alternatives to operating earnings (loss) or net earnings (loss) as measures of operating performance or cash flows as measures of liquidity. EBITDA and Adjusted EBITDA have important limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of the Company’s results as reported under GAAP. For example, EBITDA and Adjusted EBITDA do not reflect cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect changes in, or cash requirements, for working capital needs; do not reflect our considerable interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debt; exclude tax payments that represent a reduction in cash available; and do not reflect any cash requirements for assets being depreciated and amortized that may have to be replaced in the future.