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2007 CENSUS REPORT

HANDBAGS | SMALL LEATHER GOODS | JEWELRY | WATCHES | LEGWEAR | SLIPPERS & CASUAL FOOTWEAR
BELTS | EYEWEAR & READERS | SCARVES & WRAPS | COLD WEATHER/RAINWEAR | HATS | CENSUS MAIN



TOTAL US HAT RETAIL SALES
$ Millions
Projected 2007 980.5
2006 980.5
2005 966.0
2004 937.4
2003 870.5





2006 HAT OPERATING STATISTICS AND AVERAGE RETAIL PRICEPOINTS
Department Stores Mass Retailers
Initial Markup 58% 60%
Gross Margin 46-48% 48%
Annual Turn 2x 3x
Avg. Retail $30 $15






2006 HAT MARKET SHARE BY RETAIL OUTLET
% Of Total U.S. Retail Sales $ Millions
Department Stores 35% $347.5
Specialty Dept. Stores 30% $336.4
Specialty Chains 16% $116.2
Mass Retailers 14% $136.1
Other (Flea Market and Vintage Stores) 5% $44.3
Total 100% $980.5

Hats: 2007 Key Retail Trends

  • Hats had a good year, with fresh fashion silhouettes to drive the classification—particularly those with a short brim.


  • Hat styles were shaped closer to the face this year, with turned-down brims and cloches that captured a retro, ladylike look. Other hot looks that blew out were the Mod cap, often in red, black or winter white, and the equestrian riding cap. The latter, interpreted right from Balenciaga’s popular runway collection, sold-through across the board. Fedoras slowed down, as fresher styles took center stage.


  • For Spring/Summer ’’07, multipurpose hats (notably sun protection hats with larger brims) sold best. Newsboys were the best department store performers, while cowboys were the worst. Other key looks for spring were black and white combinations.


  • Dressy hats (a.k.a. “church hats”) proved to be strong for retailers committed to these customers, despite being underplayed by the fashion press.


  • For Fall ’07, newsboys and knitted styles were strong, as were caps and buckets. Menswear fabrications such as houndstooth and herringbone sold well. Berets, particularly in wool flannel, looked fresh again, and many deigners featured the style on the runway.


  • Looking ahead to Spring ’08, hats are getting big and floppy, with very wide brims capturing a glamorous look. Spiral-sewn ribbon hats, particularly in black-and-white spectator styles will also be strong.




Hairgoods: 2007 Key Retail Trends

  • As many department stores have abandoned hairgoods, specialty stores stepped in to benefit noting that hairgoods - particularly headbands - have become favorite multiple purchase items.


  • Yet department stores that committed to hairgoods, and called out trend tables with other fashion accessories, were winners. One store recorded a whopping 270-percent increase for spring (approximately 100 percent for fall), with headbands as the strongest fashion trend.


  • Designer runways also drove the headband trend at retail. Valentino showcased skinny double headband styles for Spring ’07, while Michael Kors showed ultra-wide versions.


  • Headband widths were polarized—from super skinny (1/4-inch or less) to ultra-wide. Double skinny head bands sold well, letting hair to show through.


  • Padded and covered headbands sold well, either in fabric or leather. Key styles and materials included: madras plaid in feminine pales, slick patent, metallic leathers, silk charmeuse and menswear fabrics such as tweeds, collegiate plaid and argyle looks.


  • Fourth quarter featured metallic leathers and surfaces and faceted jewels. Embellishments were key for holiday, with large clear or colorful gems often set on top of thin bands.


  • Pony-O’s, particularly with clusters, sold well at specialty stores that took a jewelry approach to this category.


  • Clever merchandising came into play with headbands, with retailers stacking them in rows or displaying them in fishbowls. Online, e-tailers took the opportunity to show images of popular celebrities (like Paris Hilton) wearing headbands to drive sales on the site.


  • Hairgoods that need demonstration sold best at specialty stores, with one manufacturer even creating videos to train salespeople.


  • For Spring ’08, eyes are on turban-inspired headbands and wide, flat-stretch headbands, as they figured prominently on designer runways.






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