RETURNING TO PROFITABILITY...INSIDER BUYING...MULTI-BAGGER
TARGET: $3+ NEXT SUMMER.......ONLY 5M SHARE FLOAT..
- BLUE's NEW CEO HAS ESTABLISHED AND IS EXECUTING AN AGGRESSIVE RESTRUCTURING PROGRAM AIMED AT RETURNING THE COMPANY TO PROFITABILITY AND STEADY GROWTH:
* STAFF REDUCTIONS AIMED AT SAVING $700K/QUARTER OR 12c/SH/YR.....GUIDANCE CALLS FOR RETURN TO PROFITABILITY THIS QUARTER
* FOCUS on ANTIK DENIM, TAVERNITY SO, and YANUK FASHION JEANS
* SIGNED DEALS TO SELL ITS JEANS AT MACY's, DILLARDS, AND MANY OTHER HIGH END FASHION STORES
- RECENTLY RECEIVER ALMOST $3M FROM IRS SHORING UP ITS BALANCE SHEET
- COMPETITOR TRLG UP HUGE TODAY ON STRONG EARNINGS/HEALTH OF SECTOR
....AN INDUSTRY ANALYST WROTE THIS ABOUT BLUE TURNAROUND LAST MONTH:
?We like Glenn a lot. He has turnaround experience and he is a very bottom-line, no-nonsense kind of guy. If anyone can turn this company, he can,? said Beder.
To increase sales, Palmer has decided to focus on growing Antik Denim?Blue Holdings? largest business?in the department store channel, rather than in the brand?s customary high-end specialty store base. For spring ?08, Antik Denim will begin selling at Macy?s East and Dillard?s doors for the first time. Palmer believes the Macy?s business will reach $5 million within a year. The jeans will be priced from $158 to $198 at retail, down from the $200 to over $300 that were the former retail prices.
?The whole premium market has come down, and you need to be priced according to the market you?re retailing in,? pointed out Palmer.
While the move may alienate tastemaking specialty boutiques, Beder believes it?s a smart initiative considering Blue Holdings? financial position. ?Right now is not the time for management to overlook any potential revenue-generating opportunities,? he said.
Additionally, Palmer is refocusing Antik Denim and Taverniti So on core products and moving away from the fashion-heavy looks the brands were known for. The company is also implementing EDI replenishment systems for its core styles at department stores.
To that same end, Blue Holdings is relaunching its Yanuk brand as a non-premium denim and sportswear range for fall ?08, with retail prices ranging from $89 to $125. The company hopes to reach sales of $3 million to $4 million in the first season.
The company?s overseas sales have mirrored weakness domestically, with international sales contributing 20.9 percent of revenue in the first three quarters of 2007, versus 30 percent a year ago. To jump-start that business, the company recently signed a new three-year Canada license for Antik Denim, is in negotiations for a Japan license for Yanuk, and is close to announcing deals for Taverniti So in England, the Far East and the Middle East, according to Palmer.
To cut costs, Blue Holdings has eliminated $2.4 million in annual payroll expenses, or over 35 jobs, since Palmer joined the company. ?The cuts came from across the company. We are right-sizing; there was a lot of fat,? he noted bluntly.
The company also shuttered its nascent Life & Death brand and is reexamining its deal to launch a label with Will.i.am of the music group Black Eyed Peas. However, the company has still not decided whether or not to close its two freestanding stores in L.A. and San Francisco, as it previously announced it would.
Despite the daunting challenges facing Blue Holdings, Palmer is confident the company can regain its footing. Its top-priced Taverniti So line continues to sell well at retailers like Saks Fifth Avenue, Neiman Marcus, H. Lorenzo and Atrium, he noted
ABOUT BLUE:
Blue Holdings, Inc., through its subsidiaries, engages in the design, development, marketing, and distribution of fashion jeans, apparel, and accessories for women, men, and children. The company's products include jeans, jackets, belts, purses, and T-shirts. It sells its products under Antik Denim, Yanuk, U, Life & Death, Faith Connexion, and Taverniti So Jeans brand names in the US and overseas.
TARGET: $3+ NEXT SUMMER.......ONLY 5M SHARE FLOAT..
- BLUE's NEW CEO HAS ESTABLISHED AND IS EXECUTING AN AGGRESSIVE RESTRUCTURING PROGRAM AIMED AT RETURNING THE COMPANY TO PROFITABILITY AND STEADY GROWTH:
* STAFF REDUCTIONS AIMED AT SAVING $700K/QUARTER OR 12c/SH/YR.....GUIDANCE CALLS FOR RETURN TO PROFITABILITY THIS QUARTER
* FOCUS on ANTIK DENIM, TAVERNITY SO, and YANUK FASHION JEANS
* SIGNED DEALS TO SELL ITS JEANS AT MACY's, DILLARDS, AND MANY OTHER HIGH END FASHION STORES
- RECENTLY RECEIVER ALMOST $3M FROM IRS SHORING UP ITS BALANCE SHEET
- COMPETITOR TRLG UP HUGE TODAY ON STRONG EARNINGS/HEALTH OF SECTOR
....AN INDUSTRY ANALYST WROTE THIS ABOUT BLUE TURNAROUND LAST MONTH:
?We like Glenn a lot. He has turnaround experience and he is a very bottom-line, no-nonsense kind of guy. If anyone can turn this company, he can,? said Beder.
To increase sales, Palmer has decided to focus on growing Antik Denim?Blue Holdings? largest business?in the department store channel, rather than in the brand?s customary high-end specialty store base. For spring ?08, Antik Denim will begin selling at Macy?s East and Dillard?s doors for the first time. Palmer believes the Macy?s business will reach $5 million within a year. The jeans will be priced from $158 to $198 at retail, down from the $200 to over $300 that were the former retail prices.
?The whole premium market has come down, and you need to be priced according to the market you?re retailing in,? pointed out Palmer.
While the move may alienate tastemaking specialty boutiques, Beder believes it?s a smart initiative considering Blue Holdings? financial position. ?Right now is not the time for management to overlook any potential revenue-generating opportunities,? he said.
Additionally, Palmer is refocusing Antik Denim and Taverniti So on core products and moving away from the fashion-heavy looks the brands were known for. The company is also implementing EDI replenishment systems for its core styles at department stores.
To that same end, Blue Holdings is relaunching its Yanuk brand as a non-premium denim and sportswear range for fall ?08, with retail prices ranging from $89 to $125. The company hopes to reach sales of $3 million to $4 million in the first season.
The company?s overseas sales have mirrored weakness domestically, with international sales contributing 20.9 percent of revenue in the first three quarters of 2007, versus 30 percent a year ago. To jump-start that business, the company recently signed a new three-year Canada license for Antik Denim, is in negotiations for a Japan license for Yanuk, and is close to announcing deals for Taverniti So in England, the Far East and the Middle East, according to Palmer.
To cut costs, Blue Holdings has eliminated $2.4 million in annual payroll expenses, or over 35 jobs, since Palmer joined the company. ?The cuts came from across the company. We are right-sizing; there was a lot of fat,? he noted bluntly.
The company also shuttered its nascent Life & Death brand and is reexamining its deal to launch a label with Will.i.am of the music group Black Eyed Peas. However, the company has still not decided whether or not to close its two freestanding stores in L.A. and San Francisco, as it previously announced it would.
Despite the daunting challenges facing Blue Holdings, Palmer is confident the company can regain its footing. Its top-priced Taverniti So line continues to sell well at retailers like Saks Fifth Avenue, Neiman Marcus, H. Lorenzo and Atrium, he noted
ABOUT BLUE:
Blue Holdings, Inc., through its subsidiaries, engages in the design, development, marketing, and distribution of fashion jeans, apparel, and accessories for women, men, and children. The company's products include jeans, jackets, belts, purses, and T-shirts. It sells its products under Antik Denim, Yanuk, U, Life & Death, Faith Connexion, and Taverniti So Jeans brand names in the US and overseas.