Financial sources said Nine West does about $1 billion in annual wholesale volume, and about another $900 million or so in retail sales. A sale of the entire operation could bring in at least $2 billion for Jones, some Wall Street analysts predicted... While the footwear sector is profitable, one Wall Street analyst noted it's an area of little growth. The brand, however, generates a "decent amount of cash flow," the analyst said. He applauded the possible sale of the company, noting Jones has been on a "treadmill for five years" and that streamlining the business would perhaps allow Jones to focus on apparel, its core competency. Another analyst also viewed the sale of Nine West as a "positive," pointing out that while the business is fixable, it is not really Jones' core specialty.

Aerie represents an aggressive effort to maximize a category that has been building at the sportswear chain for six years and challenges the dominance of Victoria's Secret (parent is Limited Brands Inc., ticker: LTD). Company executives said aerie won't have the edginess or raw sexuality of Victoria's Secret, but will still come across as romantic for a narrower segment of consumers ages 15 to 25.

"[An] issue that has impacted Reebok's performance in the last two quarters has been a misperception among some retail partners that Reebok positioning would be dramatically changed or taken downstream as part of the acquisition," said Adidas chief executive officer Herbert Hainer. "While all along we were clear that Reebok is and will remain a performance brand within the Adidas Group, we have reached out through our sales team to reinforce and answer any concerns."

Some of Coach's highest volume locations are in Simon-operated malls and lifestyle centers around the U.S. — such as the Forum Shops at Caesars Palace in Las Vegas, Roosevelt Field on Long Island, New York, and The Mall at Chestnut Hill near Boston — all of which will be targeted for expansion or renovation under the new arrangement," Lew Frankfort, chairman and chief executive officer of Coach, said in a statement. "Further, this more formal, multiproperty agreement will allow Coach to better execute our growth strategy and reach more customers in both new and existing markets.

Oakley, which produces performance and lifestyle apparel, accessories, eyewear, footwear, watches and various electronics, is breaking the "athletic" mold for which it is known without abandoning its roots. The firm held its second-ever runway show on Saturday at Bryant Park and opened a boutique in Manhattan's SoHo neighborhood last year. The company's net sales last year amounted to $638.7 million and generated a net income of $52.6 million.

Does someone see a future in premium denim?!

....third-quarter profits jumped 20.9 percent to $90.7 million from $75 million, helped by strong sales of its high-end luxury goods. But the company cut its forecast on full-year earnings because of the recent acquisition of Polo Jeans and the closings of Club Monaco outlet stores and Club Monaco Caban Home stores in Canada. For the full year 2006, the company said earnings per share would be $2.80 to $2.85, compared with an earlier forecast of between $2.85 and $2.92. For the quarter, total revenues rose 10.4 percent to $995.5 million from $901.6 million, which included a sales gain of 10.6 percent to $933.2 million from $843.6 million.

The deal unites two venerable names in women's retailing and could help answer Wall Street's questions about where Talbots, the far larger of the two Massachusetts-based companies, can find room to grow. Last week, Talbots said sales for its fiscal year ended Jan. 28 increased 7%, with sales at stores open at least a year posting a smaller 2.6% gain...

Last Friday's Women's Wear Daily reported that private equity firm Berkshire Partners now holds a 66% majority ownership in premium denim company Citizens of Humanity (a TRLG competitor). Why is this significant? From Women's Wear Daily:

The offer from Wet Seal was better than that from the joint venture led by Gordon Brothers Retail Partners. Additionally, Wet Seal wants to keep G&G's business open, making it more likely that many store associates will keep their jobs (Gordon Brothers planned to liquidate the company). Wet Seal said it would initially operate 450 stores under the Rave, Rave Girl and G&G brands. As of last week G&G operated 566 stores in the U.S. and Puerto Rico. Women's Wear Daily cautions:

Revlon's point of entry into the prestige realm puts it in the center of one of beauty's most competitive and launch-riddled categories. Only time will tell whether the company is stepping into a rose garden or a lion's den... Revlon is expected to make a large competitive splash in a category that is already overcrowded by giants seeking to gobble up market share...

The sneaker wars, once fought on the basketball courts and football fields of the United States, are increasingly being waged on the track fields of China, the volleyball courts of Brazil and the soccer fields of Mexico, long overlooked markets filled with the fan base that footwear companies thrive on... more and more companies are moving their marketing machines to fertile developing countries to generate the growth they can no longer rely on in the United States and Europe. Nike remains the No. 1 seller of footwear and athletic apparel in the world, but the acquisition of Reebok by Adidas-Salomon, approved this week by Reebok shareholders and the European Union and expected to close next week, could throw up a considerable roadblock to the swoosh across Latin America and Asia.

Nike remains number one in sales of footwear and athletic apparel worldwide. It has built an outdoor sports center in China (Nike Beijing Park), sponsored 21 Chinese sports federations and has endorsement deals with a number of top Chinese athletes. But Adidas and Reebok (numbers two and three, respectively) have staked out a place in the competition. From the Times article: