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Sales on Sheer Pantyhose
Slide
Wearing pantyhose is no fun. Sure, their sheer allure enhances the legs. But they're tight, uncomfortable and one little rip can make them run — and ruin an entire outfit. And although they once were a staple in a career woman's wardrobe, sheer hosiery today faces an even bigger snag that can't be fixed with clear nail polish — more than a decade of declining sales.
At Hanesbrands Inc., the nation's leading seller of women's sheer hosiery, the company has been straightforward with investors about the decline. The company said it continued to work on product innovations and was trying to take advantage of current fashion trends, but acknowledged that there was little that could be done about the sales decline until the fashion pendulum swung back its way.
"The casualization of the workplace, it is not as strict as before," said Romaine Sargent, vice president and general manager of marketing for hosiery at Hanesbrands. "Women have more options and some are choosing to wear sheer hosiery less."
According to the company, women ages 25 to 54 wear pantyhose an average of 1.8 times a week, down from 3.5 times a week a decade ago. Hosiery sales at Hanesbrands, which includes sheer hosiery (pantyhose, knee-high and thigh high), leggings, tights and trouser socks, totaled $290 million in fiscal 2006 — a nearly 68% drop from the $895 million in sales the company did in fiscal 1995.
The snag, industry experts say, is the generation gap between women who remember a time when stockings and pumps were required workplace attire and slacks were a no-no, an era enshrined forever in the 1980 Jane Fonda-Lily Tomlin comedy "9 to 5."
Nowadays, trendsetters in many offices wear Capri-style pants, dress shorts, open toe sandals or even flip-flops.
"The traditional waist-high pantyhose garment thrived in the 1980s, it was at a peak," said Sally Kay, president and chief executive of the Hosiery Assn., a Charlotte, N.C.-based trade organization. "But with the onset of the Internet in the '90s, and the ability to work from home, that's when we start to see sales decline."
Hanesbrands, created in September when Sara Lee Corp. spun off its apparel business, makes lingerie, underwear and other clothing for large retailers. The Greensboro, N.C.-based company's top brand is Hanes, whose products include underwear, bras, socks and T-shirts. About 6.5% of Hanesbrands' sales comes from hosiery, and those sales have dropped each year since 1995.
Women 40 and older are Hanesbrands' best hosiery customers. Women in the 20-to-35-year-old range wear less sheer hosiery, but show greater interest in alternatives such as leggings, tights, trouser socks and even thigh-high hosiery.
"I have a love-hate relationship with pantyhose," said 34-year-old LeeAna S. Valkovschi, a marketing specialist from Charlotte who wears nylons two or three times a week. "I love that they are complimenting to any imperfections that I may have. I hate that by the end of the day they are so binding."
That kind of attitude has contributed to the 24% drop in overall sales in Hanesbrands' hosiery business in the last two years.
The current generation of adolescents and young adults — Generation Y, or those born between 1977 and 1994 — "has been known to create their own trends," said David Morrison, founder of young adult marketing consultancy Twentysomething Inc. in Philadelphia. "Whatever they are going to be comfortable in is going to have main appeal."
Morrison and others note that although young people often take any fashion trend to its extreme, they aren't the only ones dressing down. The casual Friday trend that started in the 1990s continues to seep into the rest of the workweek.
"The idea of simplicity is very appealing," Morrison said. "Whatever can be done to sleep a couple extra minutes."
And possibly save a couple of extra dollars. Depending on where you shop and the brand you buy, a pair of regular, reinforced toe pantyhose runs about $5 to $9; a three-pair pack about $10 to $15, maybe cheaper if on sale.
Hanesbrands is addressing its problem in several ways. One is by offering pantyhose alternatives like tights, leggings and trouser socks, although Sargent cautions that the company is not "looking to aggressively spend money" on product development in those areas.
Another is by marketing various sheer hosiery innovations. In addition to the long-standing "control top" feature, the company now offers "anti-cellulite" nylons and even stockings that promise to hydrate your legs.
Those kind of innovations raise costs, however — prices for some brands sold at high-end department stores can reach $50 a pair.
It might be easier for companies just to let the fashion cycle take its course — and wait for the seemingly inevitable return of sheer, nude-colored pantyhose, said Clare Sauro, assistant curator of accessories of the Museum at New York's Fashion Institute of Technology.
1/13
Endeavor to Acquire
American Apparel
In a transaction as unconventional as its growth has been dramatic and its advertising and founder controversial, American Apparel Inc
plans to be acquired by Endeavor Acquisition Corp for about US$244m, including the assumption of about $110m in debt.
In the deal to be finalized next summer, American Apparel, the Los Angeles-based manufacturer/retailer of US-produced T-shirts and other
cotton basics, would be acquired by Endeavor, which raised nearly $130m in an initial public offering one year ago.
Among the unusual features of the transaction would be the creation of a one-time bonus pool of $2.5m for American’s 5,000 employees, who
would also be eligible for up to about 2.7m shares of Endeavor stock.
However, the deal calls for American founder and chief executive Dov Charney to purchase the shares of another, unidentified American
principal for $60m prior to the close of the transaction, making $120m in capital available to American.
If Charney is unable to complete the side deal, Endeavor will purchase the shares from the American stockholder and Charney would
forfeit 7.7m of the nearly 33.3m shares of restricted Endeavor stock he is expected to receive as part of the acquisition.
Charney’s failure to complete the deal with the stockholder would cut the capital available to American in half, to $60m.
Charney will continue as CEO of the combined entity, which will operate as American Apparel and is expected to be traded on the
American Stock Exchange, as Endeavor is now, or another national stock exchange.
The transaction is contingent upon customary conditions, as well as the receipt by Endeavor of an opinion from an independent investment
bank. Charney has agreed to a full lock-up of his Endeavor shares for at least three years following consummation of the deal.
Founded just nine years ago, American Apparel expects sales of $275m during the fiscal year ending this month. Its EBITDA – earnings
before interest, taxes, depreciation and amortization – will be approximately $30m, the company said.
It operates 143 retail locations in 11 countries and has the capacity to produce 1 million T-shirts per week in its Los Angeles facilities.
Eric Watson, chairman of Endeavor, described American Apparel as “a unique company in the apparel manufacturing and retailing industry
with a visionary leader, passionate employees and loyal customers.
“Its cutting-edge brand building efforts and vertically integrated ‘made in downtown Los Angeles’ operation have created significant
brand awareness and a ‘cult’ status worldwide.”
That awareness has included sexually charged advertising and a reputation for social awareness, particularly as it relates to its
workforce, which is dominated by Hispanic minorities.
Charney also has had to answer to a number of allegations of sexual harassment, although the CEO has steadfastly denied all accusations.
3/12
Buyers' Best Sellers
Attention
All Buyers, Boutique
and Online Store Owners
McPete Sez wants to know what is your hottest selling garment. What is selling out
because McPete Sez readers want to know. Please send an email to info@mcpetesez.com
and include your name, your store's name, city and state along with a phone number
and email, stating your best seller, and who the manufacturer is.
If you would rather keep your best selling item a secret..... please
just tell us who the manufacturer is.
If your email is chosen, you will be contacted and
your email will be posted in McPete Sez, along with your store
information.
2/24
Premiere Vision Preview
New York
This January 24 and 25, Spring Summer 2008 arrives in the heart of New York. For its 14th session, Premiere Vision Preview New York will present the latest collections of some 140 of the world's top weavers and fashion
accessory producers, in advance of the major Paris show. This salon i key to preparing the new season, and a must-see even for fashion professionals from top companies such as DKNY, Calvin Klein, Marc Jacobs, Tommy Hilfiger, Banana Republic and Urban Outfitters.
Buyers and fashion specialists will be given the keys to Spring Summer 08 thanks to the following exclusive services proposed over the course of the two-day salon:
A Trend Tasting - Sabine Le Chatelier, Associate Fashion Director of Premiere Vision Paris, welcomes an intimate number of visitors to a fashion presentation decoding the season's moods and fabrics highlights, exclusive color combinations along with a private showing of Premiere Vision film.
A color Card and a color wall - the best way to get an overall view of the Spring Summer 2008 color trends.
A Fabric Forum - inspiration and innovation come together in a display illustrating the season's major trends, using fabrics drawn from the offer.
The organization of the salon into 4 fashion universes, introduced at the July 2006 show, continues to win a great number of New York buyers. For this edition of the salon, exhibitors will once again be grouped into these 4 style universes:
-Fancy Seduction: the world of fantasy and fluidity
-Tailored Distinction: the elegant, formal and structured universe
-Relaxed Attitude: the casual, comfortable, relaxed universe
-Active Pulsation: the sport, technical and performance universe
www.premierevision-newyork.com
_________________________________________________
A little boy asked his father,
"Daddy, how much does it cost to get married?"
Father replied, "I don't know son, I'm still paying."
First guy says, "My wife's an angel!"
Second guy remarks, "You're lucky, mine's still alive."
" A Woman's Prayer: Dear Lord, I pray for: Wisdom, To understand a man , to Love and to forgive him , and for patience, For his moods.
Because Lord, if I pray for Strength I'll just beat him to death "
_________________________________________________
"Ask Andy"
Andy Weinstock has been in the fabric and textile business all his life, but professionally since 1969. 
"I love what I do, selling fabrics around the globe. I've met lots of interesting, creative, dynamic
folks; some have become dear friends. I love to help new businesses find the things they need to become successful. It works for everyone."
You can ask Andy questions about Fabrics at
Andy@mcpetesez.com
I have a Pendelton wool coat that is 35 years old but there are small moth holes through out the coat, not many. Can these be
repaired?
James: it probably will cost more to repair the coat than to buy a new one. Happy Shopping and Good Luck,
Andy
The "Ask Andy" Column is an opinion Column and may
not necessarily reflect the views of
McPete Sez
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