Great Outfitter Denim Rocks Fashion & Retail Sales

by Gaurav Doshi - Date: 2006-11-30 - Word Count: 1174 Share This!

Denim has changed radically in past few years, from basic work clothing, to a high-end stylish and fashion oriented attire. Denim is presently a 10 billion dollar industry in the US. From retailer selling in mass market to exclusive couture designers, everyone has identified denim as a profitable business.

The apparel industry veterans are amazed by the success of denim. Reviewing recent sales-graph and fiscal year results of the leading retailers and brands, the analysts forecast a better future for denim on condition that the product should appeal different to the consumer looking while sustaining the traditional fabric.

The American consumers approximately purchase 450 million pairs of jeans per year. The denim market has been performing well, except for a drop in the sales was witnessed because of stiff competition with the alternative products like cargos, fatigues, cotton combat and khaki trousers, which led market at a saturation point in mid 2004.

The saturation in the denim market was a result coming-out of garments and fabric in developing countries, due to the elimination of a quota system, in the beginning of 2005. However, the denim industry emerged again during 2005-2006. The evergreen work-wear fabric is back on track with the efforts of companies, such as ITG, Levi Strauss & Co., VF Corporation, American Eagle Outfitters and Perry Ellis performed well throughout 2005. American Eagle Outfitters

American Eagle Outfitters come into view as triumph last year, emerging as leader in specialty store brands for the age group of 15 to 25. Comparing the $143.4 million sales month which ended April 30, 2005, the company recorded 25% climb in sales for April 29, 2006. The month of April depicted an optimistic consumer response to the company's excellent initiatives for product assortments, designed for spring and summer that were also focused at other age groups.

The success standing behind, American Eagle Outfitters, in the denim market, is an outcome of right allocation of initiatives for various market phases. The perfect blend of the American West with European touch was the key reason of the gained success.

American Eagle Outfitters is a leading retailer that designs, markets, and sells it's own brand of laidback, current clothing for 15 to 25 year old, providing high-quality merchandise at affordable prices. AE's original collection includes standards like jeans and graphic T's as well as essentials like accessories, outer wear, footwear, basics and swim wear. ITG

Identifying the opportunities for growth in denim market, the Cone Denim business of International Textile Group (ITG) is focusing to meet its growing demand by making sourcing based in African developing countries. The company has recently taken initiatives to set-up a 28 million yard capacity denim plant in Nicaragua. This plant is anticipated to generate employment for nearly 750 people.

The Company has also announced that its Burlington WorldWide division plans to build a state-of-the-art cotton manufacturing complex in DaNang, Vietnam. The complex will be a joint venture operation called Burlington Phong Phu Supply Chain City, 60 percent owned by a subsidiary of ITG (a WL Ross & Co company) and 40 percent owned by Phong Phu Corporation, one of the largest textile and garment enterprises in Vietnam. The investment will exceed US$80 million.

International Textile Group, Inc. was organized in March 2004, by Wilbur L.Ross, to combine the assets of Burlington Industries and Cone Mills. ITG is a diverse, innovative provider of global textile solutions and distinguished market brands to apparel and interior furnishing customers worldwide. ITG operates four business units: Cone Denim, Burlington Worldwide (apparel fabrics), Interior Fabrics, Carlisle Finishing, and is affiliated with Nano-Tex.

Perry Ellis International

In a move to produce and distribute Levi's Dockers men's outer wear again in the US and Mexico, Perry Ellis International has entered an agreement with Levi Strauss & Co. for another strategic alliance. Dockers is considered as a world class brand that reveals the American style. The company plans to run the segment as a separate unit with the help and experienced of designers in Seattle.

Both companies have agreed in terms to distribute the brand through December 2009, with a renewal period by Dec 2012. The product line includes men's coats, denim jackets, and synthetic fleece. Perry Ellis will start delivering the product this month into selected stores and networks.

Perry Ellis International, Inc. is a leading designer, distributor, and licensor of a broad line of high quality men's and women's apparel, accessories, and fragrances, including: dress and casual shirts, golf sportswear, sweaters, dress and casual pants and shorts, jeans wear, active wear, and men's and women's swimwear to all major levels of retail distribution.

The company, through its wholly owned subsidiaries, owns a portfolio of highly recognized brands including Perry Ellis, Jantzen, Cubavera, Munsingwear, Savane, Original Penguin, Grand Slam, Natural Issue, Pro Player, the Havanera Co., Axis, Tricots St. Raphael, Gotcha, Girl Star, and MCD. The company is also licensed to trademark from third parties including: Dockers for outerwear, Nike for swimwear, PING and PGA TOUR for golf apparel. Levi Strauss & Co.

Meanwhile, the clothing giant, Levi Strauss & Co. has projected denim as a reputable outer wear. The company has reported a climb in net income for the Q1 FY2005-06 compared with last year. Even sales slipped, net income was up taking denim to the higher level of market. The company is already in the middle of transformation business to Europe, which will result the product assortment featuring more fashion and style.

The introduction of super-slim cigarette denim pant is an initial launch to this season. The looks of this collection can be ruthless at times, however, with the appropriate match it gives a nice slim look. The reason behind success to this collection is long and bunchy looks at the bottom that put one in illusion about the length of the pant.

Levi Strauss & Co is one of the world's leading branded apparel companies, marketing its products in more than 100 countries worldwide. Jeans giant Levi Strauss & Co has launched a new corporate Website at:

The site provides consumers, students, potential employees, news media, investors and anyone interested in Levi Strauss and Co.'s rich, 153-year history with easy access to current and historical information about the company.

Levi Strauss & Co. designs and markets jeans, casual wear and related accessories under the Levi's, Dockers and Levi Strauss Signature brands.

VF Corporation

VF Corporation has recorded a climb in full year earnings guidance, on a strong Q1 performance. Significantly, performance this year is being led by a powerful strategy for organic growth. The company is anticipating a climb in revenues by 6 to 7%, led by the momentum in outdoor alliances and higher anticipated revenues from its local Jeans wear business.

VF Corp. is planning to enter Indian markets through an equity joint venture with Arvind Mills. Licensing agreement between Arvind Mills and VF Corporation includes brands like Lee, Wrangler and Nautica. Both are likely to enter in 50:50 partnerships.

VF Corporation is a leader in branded apparel including: jeans wear, outdoor products, intimate apparel, image apparel, and sportswear. It's principal brands include: Lee, Wrangler, Riders, Rustler,Vanity Fair, Vassarette, Bestform, Lily of France, Nautica, John Varvatos, JanSport, Eastpak, The North Face, Vans, Napapijri, Kipling, Lee Sport, and Red Kap.

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