Men’s denim sales have shrunk like a pair of 501’s in the wash this year, as the gloomy economy, high unemployment and a bearish stock market deflated consumer spending on jeans.
Total men’s jeans sales declined 2 percent for the 12 months ended in August to $5.17 billion, according to The NPD Group figures. Unit sales decreased 3 percent to 218.6 million, with the average price per pair bumped up less than 1 percent to $23.64 — as companies inch up price tags due to higher cotton and production costs.
The premium market has taken the biggest hit in sales, with men’s jeans priced over $50 contracting 11 percent in sales to $624 million.
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“My mind is on the economy every single day. But rather than complain about the economy, we need to focus on what we can do better and how to make life for our customers better,” said Cristiano Quieti, chief executive officer at Diesel USA. “But the economy is what it is. We have to give our customers a reason to buy. If shoppers have limited money, you have to create something that gives them an emotional experience rather than just another five-pocket jean.”
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Among Diesel’s initiatives for spring is a new capsule line of premium designs under the Our Glory moniker that taps into the vintage heritage of the brand, with jeans priced at $300 to $350.
While Diesel is emphasizing superpremium product for a specialized audience, the bulk of American shoppers are seeking out lower prices. Overall men’s denim sales have fallen at both department stores and mass merchants, as budget-minded shoppers have pumped up sales at off-price retailers by 14 percent and at factory outlets by 45 percent over the past year. (See chart.)
Fall sales have not been helped by the unseasonably warm weather in both the U.S. and Europe, pointed out Jeff Rudes, ceo of J Brand. “Changes in weather really help kick off the fall shopping season, and that hasn’t happened,” he noted. “It shrinks the fall selling season.”
However, J Brand sales are up this year and the company is counting on colored denim, skinny fits and soft and lightweight fabrications to spur sales further come spring. “We know it’s a tough environment. But we know people still want to buy fashion, and people always need a new a pair of jeans to look great and feel sexy,” said Rudes.
Trendy labels with the right product can clearly buck the overall downward trend. At AG Adriano Goldschmied, men’s denim sales are up over 40 percent this year, according to design director Sam Ku. Sales have been driven by slim-straight fits and denim blend fabrics with lyocell that add softness and drape to jeans. Jeans with an element of stretch have grown to over half of AG Adriano Goldschmied men’s business.
South Gate, Calif.-based Koos Mfg., which owns AG Adriano Goldschmied and manufactures the jeans in its own facility, recently placed an order for 22 laser machines. Each machine costs around $200,000 and uses lasers to create wash and whisker effects on jeans, without the use of water or chemicals. “Lasers are very efficient and eco-friendly. We use them to save time and money on dry processes like hand-scraping and sandpapering,” explained Ku. “It’s a big investment up front, but in the long run it will save money on labor and materials. Plus, it’s better for the environment.”
G-Star is similarly upbeat on the coming year and plans to open six new freestanding stores in the U.S., via franchises, in addition to five new Q-Stores, which are specialty stores that focus the majority of real estate on G-Star product and installations.
“The issues remain the same, with the key issues being quality, price and innovation,” said Stuart Millar, executive vice president of G-Star North America, which does about 65 percent of its business in men’s. “The consumer wants good quality for a good price, and we cater toward this with the price point of $140 to $190.”
At Seven For All Mankind, men’s sales are up double digits in the brand’s own stores, said president Barry Miguel. The company, a unit of VF Corp., currently operates 29 full-price stores and 11 outlets in the U.S. Another outlet unit opens on the Jersey Shore on Friday, and seven additional stores are planned in the next year. “Our own stores are doing very well and our department store business is doing well. The specialty channel has had a harder time as it’s been harder hit by the retail climate,” said Miguel.
The men’s segment has grown to about 40 percent of total Seven For All Mankind sales. For spring, colored denim in shades of brick, green, gold and an array of earth tones are key trends for the brand. “Our guy is really reacting to color,” said Miguel.
On Tuesday, Saks Fifth Avenue co-hosted a men’s denim forum at its New York flagship with Fashion Group International and participants were sanguine about the business, despite the overall market trend. Tom Ott, senior vice president and general merchandise manager of men’s wear, said the premium denim business is strong at Saks and is expected to continue to outpace other categories.
Ott noted that dark, clean styles are trending up on the East Coast while West Coast customers are more drawn to distressed offerings. But in all cases, customers are seeking details about the jeans, asking why they cost what they cost — making fit seminars, internal fashion shows and other educational programs crucial for sales associates.
