Country: Australia

Billabong International Limited has announced the appointment of Jim Howell as Chief Financial Officer (CFO) of the company, succeeding Peter Myers, who has served in the role since January 2013.

Commenting on his appointment, Chief Executive Officer of the company Neil Fiske said “Howell, whose appointment comes after an extensive global search, has deep experience in retail, finance and operational management which is strongly aligned with Billabong’s business strategy.”

Howell has spent the last 10 years leading the finance and treasury division at Nordstrom, one of the largest retailers in the United States, where he oversaw significant cost management improvements, capital management and growth initiatives. Howell will take up his new role on June 12, 2017.

Also Read – Billabong sells Tigerlily business; reports drop in sales

Chair of Billabong, Ian Pollard said, “We are very pleased that we have been able to appoint Jim to the role as Group CFO. He brings considerable financial experience from the retail sector and together with Neil, will provide strong oversight as Billabong moves into the next phase of its strategy. I have no doubt that he will provide the necessary management of our finances to support the success of Billabong in the coming years and I look forward to working with Jim.”

Uniqlo, Japan-based fast fashion brand, has proclaimed that it will continue to broaden its horizon in Australia by expanding into the state of Queensland. The brand has decided to open its fourth store in the state later this year. Located in the northern suburb of Chermside in Brisbane, this new store will cover an area of 792 square metres. There are also expectations that more than 50 jobs may be created in the state once the store is opened.

It is imperative to note that ever since entering the market in 2014, Uniqlo Chermside will be the thirteenth store for the company in Australia and the fourth in Queensland in last two years. The fashion brand has also announced the availability of full LifeWear range for women, men, children and babies in the store.

Also Read – UNIQLO to open third store in Canada

“Since opening our first store in Queensland in 2015, we have received a very positive response from local shoppers who have loved the wide range of everyday products and innovative fabrics that we sell,” averred Kenji Tsuji, COO, Uniqlo Australia. Further corroborating on this, he said, “It made sense to continue to expand our presence in the region, and we are thrilled to be able to make the Uniqlo brand more accessible for shoppers across the Queensland state.”

South African fashion retail company, The Foschini Group (TFG), has bought 100 per cent shares in Australian Retail Apparel Group (RAG) which will become its fully-owned subsidiary by the third quarter of this calendar year. The leading menswear retailer has been sold at an enterprise value of US $ 302.5 million.

It’s worth recalling here that in 2011, private equity group Navis Capital bought 75 per cent of RAG and had been preparing to list it on the Australian Securities Exchange (ASX). The remaining 25 per cent was owned by founder Stephen Leibowitz and company managers.

Gary Novis will continue as CEO of RAG under the new arrangements after acquisition, together with the existing senior management team. “We enjoyed working with the Navis team and have appreciated their support over the last six years. We are excited to be partnering with The Foschini Group, a pre-eminent retailer in South Africa, UK and Australia, and we look forward to further expanding and enhancing our offering with their support,” commented Novis.

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RAG – which runs more than 400 stores – is reported to be on target to post double-digit increase in revenue and profit this year, despite the dejection in the $ 300 billion retail sector that has seen fashion chains collapse since Christmas. Whereas, TFG currently owns 22 retail brands, covering men’s and women’s clothing, homewares, jewellery, sporting and outdoor apparel, and more than 3,000 outlets in Africa and around the world. It has been planning to expand to Australia for several years.

CEO of TFG, Doug Murray said, “We are excited to be able to realise our ambition to expand into Australasia through the very successful RAG business and its well established and experienced management team.”

Britain’s leading apparel sports retailer, JD Sports is all set to launch its first store in Australia in the month of April this year, marking its presence to 11 countries outside the UK.

Spreading over 540-square-metre, the store will offer a range of leading global brands, including Nike, Adidas, Lacoste, Reebok, Ellesse, The North Face and Puma, servicing men, women and children through a wide range of footwear and apparel.

Hilton Seskin, Head, JD Sports Australia said, “The store’s launch would not disappoint. Our shoppers will get first pick of limited-edition styles, global launches and JD exclusives from the heavy-hitters, including Adidas and Nike.”

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The retailer is further aiming to expand throughout Australia in the current fiscal with more store launches planned for Victoria, NSW and Queensland. Also, a dedicated localized e-commerce offering will also be launched in conjunction with the first store in Melbourne

Peter Cowgill, Executive Chairman, JD Sports added, “We hope that the people of Melbourne will be as excited as we are by our extensive range of product and our ability to provide the best sneakers, in the best environment, from all the major brands.”

Billabong, a surf company/clothing retailer, has decided to sell the Tigerlily business to Crescent Capital Partners for Au $ 60 million. Established in 2000, Tigerlily is a leader in premium swimwear and beachwear and its revenue amounted to Au $ 30 million for the twelve-month period ended December 31, 2016.

“With the sale of Tigerlily, we’re simplifying our portfolio and paying down debt. We’re seeing a strong profit lift in the Americas and our key initiatives are set to deliver substantial margin improvements,” said Neil Fiske, Chief Executive Officer, Billabong.

Also Read – Billabong to streamline its brands

Following this, the company also released its financial results for the first half of the fiscal 2017. Total Group sales in this period stood at Au $ 508 million, down 5.8 per cent on a comparable constant currency basis.

Sales in American region declined 9.5 per cent on constant currency basis to Au $ 192.1 million from last year’s Au $ 219.9 million. Gross profit in this region also decreased 6.3 per cent to Au $ 92.5 million. In Asia Pacific, sales were Au $ 231.3 million with 6.7 per cent decline. In addition, gross profit dived 9 per cent to Au $ 126.9 million. European region also faced a loss of 5.9 per cent in sales to Au $ 84.9 million and 8.5 per cent in gross profit to Au $ 43 million.

T.J. Maxx, one of the largest clothing retailers in the United States, has reportedly decided to open its first store in Australian city of Melbourne. However, an official announcement regarding the same is yet to be made by the company, which currently manages more than 1,000 stores across the US along with its online operations.

The company is a part of TJX Companies and offers men’s, women’s and children’s apparels. The retailer is believed to be currently fitting out a 2,000 square metres retail space in Kingston Central Plaza at Moorabbin Airport in the city’s southern suburbs, reports a leading Australian daily.

Also Read – H&M to open 430 new stores in FY ’17

In the recent times, fashion brands such as H&M, Zara, and Uniqlo have opted to reach the capital cities in Australia, to capitalize on the opportunities available in the market. Another American retail major Amazon is also expected to foray into Australian market by July this year.