Kate Spade’s Busy Saturday
In a perfect world, every day would be Saturday. That’s the concept behind a new global lifestyle brand called Kate Spade Saturday, which launches this spring. “It’s meant to capture the spirit of Saturday every day of the week,” said Craig Leavitt, president of Kate Spade LLC, a division of Fifth & Pacific Inc.
The new multicategory brand will offer brightly colored apparel (dresses, jackets, denim, T-shirts, sweaters and swimwear) and accessories (handbags, small leather goods, jewelry, watches, footwear, eyewear and tech accessories), as well as beauty, tabletop and home decor items. The average price point for Kate Spade Saturday categories will be $90 for apparel, $40 for fashion accessories; $130 for handbags, $30 for jewelry and $85 for shoes.
“This is not a diffusion line,” said Leavitt. Kate Spade Saturday won’t be sold in Kate Spade New York stores, nor department stores that carry the Kate Spade New York brand. “The entire brand is a vertical proposition,” said Leavitt, referring to the Web site and freestanding stores only. On the other hand, Kate Spade New York’s distribution is 55 percent direct and 45 percent wholesale.
Target Cuts its Credit Cards
Target Corp. agreed to sell its credit card business to TD Bank Group for about $5.9 billion. The deal will effectively get Target out of the back end of the credit card business — a step most retailers who dabbled in holding credit card receivables have already taken. The ultimate price on the transaction will be equal the total gross value of the portfolio’s outstanding receivables when the deal closes in the first half of next year.
Target’s third-quarter bottom line will show a roughly $150 million pretax gain as the company accounts for the credit card receivables as “held for sale.” And then after closing, the retailer will see a pretax gain of $350 million to $450 million. About 90 percent of the proceeds from the deal will go to pay down debt.
Yucaipa and HMX?
Ron Burkle’s Yucaipa Cos. will have to pay more than $72.3 million if it wants to get control of HMX Group. Although HMX has agreed to sell itself to Authentic Brands Group for $72.3 million, WWD learned that Yucaipa has signed a confidentiality agreement and is interested in bidding for all of HMX’s assets — including its North American factories. A source familiar with Yucaipa’s plans said the private equity firm, if it were to make a bid, is prepared to acquire the entire company — a move that could keep the firm intact as Authentic Brands plans to sell the Canadian factory operations.
“Essentially we are interested in the entire company, not just the intellectual property [assets], but also the facilities and the factories,” said the Yucaipa source, who requested anonymity. “We think [the facilities and factories are] one of their strengths.”
– Taneisha Jordan
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