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HBC, the owner of Saks, plans to acquire the Neiman Marcus Group for $2.65 billion, pending approval from the Federal Trade Commission. The deal involves investors such as Amazon, Apollo, and Salesforce. The purchase will be financed through a combination of equity capital and debt, and Amazon will collaborate with Saks Global to enhance the customer experience and digital upgrades. The newly formed entity, Saks Global, will include Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, and will operate under their respective brands. The objective of the merger is to create a $7 billion portfolio of luxury retail real estate assets in prominent shopping destinations. The potential combination of Saks Fifth Avenue and Neiman Marcus could result in various changes and advantages, including the consolidation of online buying teams, potential store closures and rent reductions, data and best practice sharing, merging of loyalty programs, and greater differentiation between the two brands. The merged company would also have more bargaining power with vendors, potentially benefiting smaller vendors and allowing for the testing of new vendors. However, the deal may face scrutiny from the Federal Trade Commission and the Justice Department, and concerns exist regarding the long-term viability of the merged company due to sluggish sales and the evolving retail landscape. [Extracted from the article]

The article from WWD: Women's Wear Daily discusses the competitive nature of CEO pay in the fashion industry, highlighting the multimillion-dollar compensation packages received by top executives. The study reveals that most of the compensation is in the form of stock and option awards, with performance-based incentives. While critics argue that CEO pay is excessive compared to workers, shareholders generally support these high pay packages. The article emphasizes the evolving nature of executive compensation and the importance of aligning CEO interests with shareholder interests. [Extracted from the article]

Despite a successful Black Friday weekend, retailers are approaching the holiday season with caution. They are maintaining tempered inventories and modest expectations while increasing price promotions. Retailers anticipate a lull in business until about 10 days before Christmas. The cautious approach is reflected in conservative forecasts for fourth-quarter revenue increases or declines. According to Adobe, there has been a significant increase in sales of smartwatches, TVs, audio equipment, apparel, and jewelry compared to pre-holiday sales in October. Many shoppers are using buy now, pay later options to fund their purchases. Adobe predicts that the spending surge will continue, with projected sales of $10 billion for Friday and Saturday and a 5.4 percent increase in sales on Cyber Monday. The five-day period from Thanksgiving through Cyber Monday is expected to generate $37.2 billion in sales, accounting for 16.8 percent of the full holiday season. Retailers are facing challenges due to reduced inventory and declining customer purchasing power, leading to increased selectivity and bargain hunting among consumers. The success of the holiday season will depend on factors such as real income, consumer preferences for experiences over material goods, and weather conditions. [Extracted from the article]

The article discusses the recent sale of Vera Wang's brand to WHP Global, highlighting the trend of brand management companies acquiring strong brands for growth. The brand management sector, led by companies like Authentic Brands Group, WHP, and Marquee Brands, is rapidly expanding and reshaping the industry. The approach of separating brands from their operating structures and focusing on intellectual property has gained momentum, attracting interest from private equity firms and investors. This trend of consolidation and brand acquisition is not unique to fashion but reflects broader changes in various business sectors. [Extracted from the article]

The article from WWD: Women's Wear Daily discusses the rising issue of organized retail crime and shoplifting in the post-pandemic world. Retailers are implementing tougher security measures, such as locking up products, to combat theft. The article highlights the impact of theft on retail workers' safety and the challenges faced by the industry in addressing this issue. Additionally, it mentions legislative efforts at both state and federal levels to address organized retail crime. [Extracted from the article]

After Donald Trump's election win, Wall Street celebrated with a 3.6% surge in the Dow Jones Industrial Average, but the fashion industry remained cautious due to concerns about higher tariffs. While some fashion stocks saw gains, designers, known for their liberal leanings, were more reserved in their response. The industry is wary of Trump's second term, with lobbying groups emphasizing the need to avoid costly trade wars and uncertain geopolitical shifts. [Extracted from the article]

The fashion industry is navigating uncertainties post-election, with questions about consumer spending, corporate acquisitions, and market performance. Analysts are optimistic about a potential increase in holiday sales, driven by consumer confidence. Companies are expected to make strategic moves post-election, with a focus on restructuring, acquisitions, and growth strategies in a changing consumer landscape. [Extracted from the article]

The article discusses how the outcome of the U.S. election could impact the fashion industry's legislative agenda. Key issues include de minimis rules, tariffs, taxes, trade deals, and environmental policies. Both Democrats and Republicans have differing views on these topics, and the fashion industry is closely monitoring the election results to anticipate potential changes in the business landscape. The article highlights the importance of political decisions on trade regulations, taxes, and sustainability efforts within the fashion sector. [Extracted from the article]

Private equity investors are holding onto fashion companies that may soon return to the market, sparking dealmaking. Some investors are stuck with brands they can't cash out, while others are eager to invest in the next big thing. A backlog of private equity investments in fashion is building up, creating pressure for more deals to be made. Fashion dealmaking may pick up if the market stabilizes, leading to potential mergers and acquisitions in the industry. [Extracted from the article]

In recent years, thecompany has introduced cloth simulation,body mesh and SnapML, and this year,alongside updates to Camera Kit, it alsobirthed the ARES division, short foraugmented reality for enterprise services,and Shopping Suite, its first offering. -- Kathryn Hopkins Barbara Lavernos L'ORÉAL DEPUTY CEO IN CHARGEOF RESEARCH, INNOVATION ANDTECHNOLOGY Since stepping into the new role of L'Oréaldeputy chief executive officer in charge ofresearch, innovation and technology in May2021, Barbara Lavernos has been helping theworld's largest beauty company trail-blazethe future of beauty. As the helm of the teams at Snap leadingthe strategy and launch of its augmentedreality enterprise products, developmentsoftware and tech innovations in AI andML, Carolina Arguelles Navas is, in manyways, the public face of Snapchat's ARinitiative -- a top priority for the company,as it pursues realistic digital appareltry-ons. WWD x FN x BEAUTYINC Women in Power From major public company CEOs to celebritiesshaping fashion culture, see who made this year'sWomen in Power list June Ambrose CREATIVE DIRECTOR & DESIGNER,WOMEN'S HOOPS, PUMA Celebrity stylist, costume designer andcreative director June Ambrose's careerhas spanned more than 30 years. -- Jennifer Wei Nell Diamond FOUNDER AND CEO, HILL HOUSE HOME Nell Diamond, the 35-year-old founderand chief executive officer of Hill HouseHome, runs a company that's beenshowing aggressive growth since it waslaunched in 2016. [Extracted from the article]

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Joanne Crevoiserat, the CEO of Tapestry Inc., has made a deal to buy Capri Holdings, creating a fashion giant with six brands and annual sales of over $12 billion. This unexpected merger caught many off guard, but Crevoiserat believes it is a natural fit and an opportunity to make the business bigger and more relevant. The combination of Tapestry and Capri is a bid for scale in the $200 billion global luxury market, and Crevoiserat plans to leverage their platform to deliver more value and expand their capabilities. The acquisition is seen as a reflection of Tapestry's strength and its successful execution over the years. [Extracted from the article]

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