First in teen medai news, ZelnickMedia and Alloy, Inc. announced yesterday that ZelnickMedia has agreed to acquire Alloy for $126.5 million or $9.80 per share in cash. Alloy, which has an online component and major hits such as Gossp Girl, The Sisterhood of the Traveling Pants, and The Vampire Diaries, has a strong reputation for creating content for youth people. The new investors claim they hope to build Alloy into a “leading entertainment and media brand” for the millennial generation of 10-29-year-olds.
H & M HENNES & MAURITZ announce profits up 30%
Yesterday, fast-fashion retailer H&M, which we see increasing in favorite store preferences in our Spring and upcoming Summer Youth Culture Studies, released their financial reports yesterday announcing that their first half-year profit had increased 30%, and their second quarter up a whopping 65.9% for gross profit. Obviously this continues to make this retailer one to watch, especially with their various expansions (do a keyword search on “H&M” on Label Networks for a series of additional stories).
Plans for H&M include new stores in Croatia and Romania in the spring of 2011 and Morocco in the fall of 2011.
In terms of fashion, you can expect a not to early eighties for their Fall collection. Here’s more: “The soft volumes and classic tweeds and silks from that era are back, along with the brown and beige colour palette. The suit and the blazer are functional everyday pieces teamed with denim or romantic frills and draping. Knitwear takes on new meaning in the autumn wardrobe, with classic fine knits like the oversized polo neck or boyfriend-style cardigan, or a feminine, figure-hugging jumper set. There are also creative jacquard-, cable- or braided knits, and heavy outerwear knits and accessories. Fine leather accessories, a cool man’s hat and a scarf complete the look.”
Nike Sales Grew 8% in 4th Quarter
Nike, Inc. announced yesterday that sales for this period grew 8% the 4th quarter to $5.1 billion from $4.7 billion in the same period last year. What did well for the brand among other things were it’s properties in youth culture namely Hurley and Converse.
“We finished strong with a great quarter and accelerating momentum across the business,” said Mark Parker, President and Chief Executive Officer of NIKE, Inc.
“During tough economic times our goal is to deliver solid financial performance and create competitive separation in the marketplace. We did that in 2010.”
If you look at the growth for Nike by geography however you can see where the greatest growth lies, namely China.
Gap in China
Speaking of China, The Gap is planning its first store in China by the end of the year. Shanghai and Beijing will get 2 Gap outlets each, plus 3 stores similar to their San Francisco flagship store. They will also begin selling online to Chinese customers as well.
In the last quarter, ending in May, the Gap closed 18 North American stores. So like many other brands, the company is looking to China, which despite the recession, grew 11.9%.
Levi’s Launches Levi’s XX -Premium Division in Amsterdam
Lead by Senior Vice President Maurizio Donaldi, Levi’s XX will focused solely on the creation of a premium collection. This collection will also include Levi’s Vintage Clothing, and handcrafted styles from the company’s massive archive.
Finally, Forever 21, the fast-fashion retailer that is forever in lawsuits for copyright design infringement, but still doing well among youth culture, has opened an enormous flagship store in Times Square as of June 24.