NEW YORK — IMG just expanded its reach in the creative field.

The sports, entertainment and media conglomerate, which also owns fashion-related enterprises such as Mercedes-Benz Fashion Week and IMG Models, has acquired Art + Commerce for an undisclosed sum. The New York-based agency's clients include creative directors to photographers, stylists, to hairdressers and make-up artists.


LVMH Profit Up 30%

PARIS – Let private equity funds overspend on acquisitions. Bernard Arnault said he prefers to bank on the stars – both proven and budding – already in his LVMH Moet Hennessy Louis Vuitton luxury empire.

“We have the potential to double our performance on a like-for-like basis in the next five years,” he said Wednesday in reporting a 30 percent leap in 2006 net profits to 1.88 billion euros, or $2.66 billion, as LVMH revenues rose 10 percent to surpass the 15-billion euro threshold to 15.31 billion euros, or $19.23 billion. “We have an optimized portfolio. … It’s certainly not a favorable environment to make acquisitions.”

Despite an unfavorable currency environment and worries about Japan, an upbeat Arnault said he was “very sanguine” about 2007, especially given the growing appetite – and thirst - for luxury worldwide.



Jones Revenue Down at End of Fiscal Year
by Vicki M. Young

NEW YORK — Jones Apparel Group on Wednesday posted losses in both the fourth quarter and the 2006 full-year period, attributable in part to previously announced non-cash charges, but the bright spot is still Barneys New York as it continues to exceed expectations.

For the three months ended Dec. 31, Jones reported a loss of $269.5 million, or $2.51 a share, versus income of $55.7 million, or 48 cents, in the same year-ago quarter. The non-cash charges were for the impairment of goodwill and trademarks. Total revenues dipped by 0.7 percent to $1.21 billion from $1.22 billion, which included a 1.1 percent drop in sales to $1.19 billlion from $1.20 billion last year. Its specialty chain Barneys posted a same-store sales gain of 11.2 percent in quarter.

For the year, the loss was $144.1 million, or $1.30 a diluted share, compared with income of $274.3 million, or $2.30, in 2005. Total revenues fell by 6.5 percent to $4.74 billion from $5.07 billion, which included a sales decline of 6.9 percent to $4.67 billion from $5.01 billion.

“During the fourth quarter, we continued to execute well against our strategic plan to improve operations, reduce costs and strengthen the overall performance of our apparel, footwear, and accessories across brands. We experienced an expansion in the adjusted operating profit margin in a number of our businesses. The wholesale better apparel business expanded its operating profit margin by 160 basis points, benefiting from improved gross margins and lower operating expenses versus the year ago period. Additionally, our denim businesses (which include Gloria Vanderbilt and l.e.i.) experienced an approximate 180 basis point operating margin expansion, and the moderate sportswear business achieved its planned operating margin target for the period,” said Peter Boneparth, chief executive officer, in a statement.


For complete coverage see tomorrow's issue of WWD.