The Value of Michael Kors: $666 Million Man

March 13, 2012

Let's be clear: Michael Kors is on a pretty good run, but it's not that he hasn't had a few disappointments. He, for instance, is not a teacher in Ontario.

So far, they are the real winners in Kors' December IPO. The Ontario Teachers Pension Plan Board was the only named Kors investor that didn't sell stock in the public offering.

And so instead of getting $20 a share -- as Kors himself did when he sold off 5.8 million shares, raising $117 million -- the pension plan's 13.2 million shares are now worth $42.08 each.

Kors, sadly, sold at what now seems to be a low price.

He might have another chance to get a better valuation since he, along with chief executive officer John Idol and backers Silas Chou and Lawrence Stroll, also has a stake in the Michael Kors operations in China, Hong Kong, Macau and Taiwan, which were not part of the IPO.

And he has steady employment.

The designer's contract gives him a job for life, an annual salary of $2.5 million and creative control over products bearing his name, assuming he can stay on the right side of "commercially reasonable." (The Wall Street types apparently don't approve of art for art's sake.) Kors is also eligible for a bonus and certain "perquisites" including life insurance, health club membership, car and driver for business purposes and tax services.

It's not the deal scored by Tommy Hilfiger -- who received 1.5 percent of U.S. revenues over $48 million when his company was public -- but it seems to be enough for Kors to keep the heat on.

If he does have to dip into the piggybank, he still owns 15.8 million shares of the company that bears his name, or 8.3 percent of those outstanding. On paper, that's worth $666.8 million, so he could always buy half a million of his $1,295 shearling racing jackets to keep warm.

That's something, at least.

For more information, visit: http://www.wwd.com/fashion-blogs/michael_kors_the_666_million_m-12-02

How Some Dutch Children Go To School

February 7, 2012

The Dutch are bicycle fanatics. Almost half of daily travel in the Netherlands is by bicycle, while the country’s bike fleet comfortably outnumbers its 16 million people. Devotees of the national obsession have taken the next logical step by launching what is likely the first bicycle school bus.

Built by Tolkamp Metaalspecials, and sold by the De Cafe Racer company, the bicycle school bus (BCO in Dutch) is powered entirely by children and the one adult driver (although there is an electric motor for tough hills). Its simple design has eight sets of pedals for the kids (ages 4 to 12), a driver seat for the adult, and three bench seats for freeloaders. The top speed is about 10 miles per hour, and features a sound system and canvas awning to ward off rainy days.

Co.Exist spoke with Thomas Tolkamp who built the BCO about its origins and how the idea is catching on around the world for the sets of 11 lucky kids who get to arrive in school pedaling their own school bus. 

Co.Exist: What was the inspiration for the bus?

Tolkamp: I had already made other big bikes (like the Beerbikes) and a few years ago someone mailed me with the question if I could develop a bike especially for transporting kids. So for that other company (a child care) I made the first bicycle. Some other companies were also interested, so I began to produce more bicycles and have improved the bike. 

How many of these have been sold? How many are in use?

We’ve sold around 25 bikes. They are still all in use, except for the very first one, which was a prototype.
   

Does it only come in yellow?

No, we’ve sold bicycles in green, blue, purple, grey, red, yellow, but all [standard] colors are available.

How much does it cost?

Around $15,000, so less than a taxi or normal bus.
   

Can the kids alone make it go?

It’s possible to ride the bike without the motor when most seats are in use, but it wouldn’t be safe to ride without an adult.
    

Do you have plans to export it?

We have already exported some bikes to Belgium and Germany, but not this kind of bike. We have gotten frequent requests for information about the bike from all around the world (North America, South America, Europe) but we’ve never sold a bike outside of Europe.
   

Do you think it will work well in other countries, or is it something special about the Dutch culture?

I don’t know really, but what I do know is that people from all around the world like the idea. We have gotten interest from the press all over the world and all people are positive.

I hope I can sell the bike in the near future to a foreign country and see how people at other countries react on the bike. I think it will work well in other countries, because as more and more people [are] becoming fat and "green living" becomes more important, ideas like this get more popular.

For more information: http://www.fastcoexist.com/1679248/dutch-kids-pedal-their-own-bus-to-school

Staying Warm This Winter!

December 27, 2011

http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=106419

A Nordstrom In Manhattan, Too?

July 21, 2009

Seattle-based Nordstrom, Inc., a leading fashion specialty retailer, announced it will open a 32,136 square-foot Nordstrom Rack, a unit of the company’s off-price retail division, in Manhattan at One Union Square South on 14th Street between Broadway and Fourth Avenue on the south side of Union Square Park. Scheduled to open in spring 2010, this will be the retailer’s first Nordstrom Rack in Manhattan.

“We’re pleased to announce the first Manhattan Nordstrom Rack,” said Scott Meden, president of Nordstrom Rack. “This is a rare opportunity that opened at the right time for us. Union Square is a thriving retail area and is an ideal location for the city’s first Rack. When we open for business next spring, customers can expect to find savings on merchandise from many of the same brands carried at Nordstrom stores.”

Nordstrom Rack carries merchandise from Nordstrom stores and Nordstrom.com at 50-60% off original Nordstrom prices. Nordstrom Rack also offers a wide selection of apparel, accessories and shoes from many of the lines carried in Nordstrom stores and purchased specially for Nordstrom Rack, with most at savings of 30-70% off.

In the tri-state area, the company currently operates eight Nordstrom stores and three Nordstrom Racks.

“Nordstrom is one of the nation’s leading fashion retailers and we are delighted that they have chosen

Union Square, one of New York City’s most desirable commercial destinations for their first Manhattan Nordstrom Rack store. Related has played a key role in the revitalization of Union Square for over a decade and we are proud to continue to contribute to the transformation of the area,” said Jeff T. Blau, president of Related Companies.

One Union Square South consists of a 22-story luxury residential rental tower located above a five-story retail block that includes Regal Cinemas and several other prime retail spaces. The building’s facade features a public artwall containing the mixed-media Metronome by Andrew Ginzel and Kristin Jones that was at the time the largest private commission of public art in New York City’s history. Nordstrom Rack at One Union Square South will have 30 feet of street level storefront and will occupy the lower level of the former Virgin Megastore. Also joining Nordstrom at One Union Square South is Best Buy, which is expected to open in the former Circuit City space during the fourth quarter of 2009.

One of the most vibrant districts in New York City, Union Square is a dynamic center of food and fashion, culture and cutting edge businesses. The approximately 12,000 businesses located within a half-mile radius of Union Square employs about 140,000 people. Union Square is home to the City’s oldest Greenmarket, a beautiful historic park, and hundreds of restaurants and shops.

Nordstrom, Inc. is one of the nation’s leading fashion specialty retailers, with 175 stores located in 28 states. Founded in 1901 as a shoe store in Seattle, today Nordstrom operates 111 full-line stores, 61 Nordstrom Racks, two Jeffrey boutiques and one clearance store.

For further information, visit: http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/07-21-2009/0005063554&EDATE=