netrashetty
Netra Shetty
Leadership Style at Bath & Body Works : Bath & Body Works, LLC, is an American retail store under the Limited Brands umbrella. It was founded in 1990 in New Albany, Ohio and has since expanded across the United States and Canada.[1] It specializes in lotions, bath items, personal care items, and home fragrances.
The company launched both a seasonal catalog and a website in 2006. In November 2006, Bath and Body Works launched its first television commercial advertisement.[2] Net sales as of January 28, 2006, were US$2,285,000,000, significantly higher than all other Limited Brands, except Victoria's Secret.
In July 2008, the company announced that it was opening six locations in Canada. With the company acquiring Canadian-based La Senza, they felt it was the opportunity to move into a growing Canadian market, with The Body Shop being its main competition.[3][4]
In January 2009, they introduced the new packaging for the Signature Collection. The labels have also changed for the Signature Collection bodycare products, as well as the Slatkin & Co. and Bath and Body Works Signature home fragrance scents, including plug-in Wallflowers, Scentports, candles, room sprays and fragrance oils. They have also begun offering shipping to Canada. Bath and Body Works operates more than 1,600 stores.[5]
Inc. (Nasdaq: EBHI) today announced that its board of directors has elected
Neil S. Fiske as the Company's new president and chief executive officer
effective July 9, 2007. Mr. Fiske, who will also be appointed to the board
of directors, succeeds Howard Gross, a member of the Board who was
appointed interim CEO in February. Mr. Fiske, 45, has over 18 years
experience in the retail and related industries, having served most
recently as chief executive officer of the Bath and Body Works, a division
of Limited Brands.
William End, Chairman of Eddie Bauer, said, "On behalf of the entire
Board, I would like to recognize the leadership and efforts of Howard
Gross, who stepped in at a very important time, to stabilize and lead the
Company as interim CEO. We are pleased that we will continue to benefit
from Howard's perspective and experience as a board member.
"Neil Fiske is the ideal candidate for Eddie Bauer at this stage of its
evolution, with his knowledge of the retail industry and experience in
transforming brands and building management teams. We feel fortunate to
have someone of Neil's caliber and vision to lead the Company."
Neil Fiske said, "I am excited to join Eddie Bauer, a Company with a
rich legacy and a distinctive heritage as an active outdoor lifestyle
brand. I look forward to building on the momentum the Company has achieved
in its turnaround efforts. There is enormous potential for Eddie Bauer, and
I look forward to helping maximize the Company's opportunities and creating
sustainable long-term growth."
As chief executive officer of Bath and Body Works of Limited Brands,
Mr. Fiske led the turnaround and brand transformation of a leading
specialty retailer, reversing more than two years of negative comp store
sales and declining profits. Under his four-year tenure, Bath and Body
Works grew from $1.8 to $2.5 billion, achieved record profits in 2006 and
launched a number of innovative, industry leading brands. Mr. Fiske also
helped launch a highly successful e-commerce and catalog business. He was
recognized as "Marketer of the Year" and "Retailer of the Year" in 2004 and
2005 by Women's Wear Daily.
Prior to Limited Brands, Mr. Fiske spent fourteen years at Boston
Consulting Group focused on the Consumer Goods and Retail sector where he
gained experience in branding, retailing, consumer marketing and
operations. He is the author of "Trading Up: The New American Luxury," a
Business Week bestseller and winner of the American Marketing Association's
Newberry award for best marketing book. Mr. Fiske is a graduate of Harvard
The story of Eddie Bauer today can be summarized in one phrase: good company, great brand, bad balance sheet.
We are in the process of turning around this classic iconic American brand and have demonstrated tangible progress. In the recession year of 2008, we generated $52.7 million in EBITDA excluding non-recurring and non-operational items — $10.8 million higher than the year before. Our comparable store sales outpaced most of the specialty retail sector and our competitors by a substantial margin. We took $48 million out of the operating cost structure of the business last year, with another $15 million coming out in 2009. We generated cash, with $60 million of cash on our balance sheet at the end of the year and a $15 million excess cash flow prepayment made to the Term Loan holders in April 2009. Thus far, we have delivered on what we said we would do.
Unfortunately, a crushing debt burden left from the Spiegel bankruptcy combined with the severe, prolonged recession have left us with no choice but to look for ways to restructure the company's balance sheet. We have made every effort possible to do this out of court, but have been unsuccessful in getting the various and diverse parties in our capital structure to agree to either a process or a plan. Rumors, speculation, and misinformation have put additional pressure on the company and made it necessary for us to take decisive action.
We are already fixing this business. We are restoring a great American brand. We have made progress and know what remains to be done. But we need some help.
I came to Eddie Bauer in July of 2007 after running the successful turnaround of Bath and Body Works for four years. Having spent the better part of a 20 year career working on building consumer and retail brands, I was attracted by the enormous potential that could be realized by bringing Eddie Bauer back to its roots. I used to be a customer. I used to love the brand. In fact, I bought one of the first Eddie Bauer Ford Explorers. But like many, I drifted away over the years as the company went through a number of leadership changes and confusing diversions from the core Eddie Bauer brand equity. As I contemplated the move to the company, I was deeply impressed and swayed by a book that was given to me: The Legend of Eddie Bauer.
Heritage brands always have comeback potential — and few have a heritage as rich and compelling as Eddie Bauer's. There is no other brand that embodies both the spirit of the American Sportsman and the spirit of the American Explorer/Adventurer. The values and the aspirations personified therein are as timeless as they are universal. Eddie built product around the things that he loved to do outdoors, often in collaboration with experts in the field. He invented and later patented the first quilted down jacket in America after almost freezing to death on a winter fishing trip. He outfitted U.S. Army Air Corps pilots in World War II with the famous B-9 down parka and A-8 flight pants. He developed outerwear and gear for the major triumphs in the golden age of American Mountaineering. He became a champion breeder of black labs, always his faithful companion in the field.
But our heritage isn't just interesting lore. It's the guide for everything we do, a wellspring of inspiration for new products, innovation, and commercial ideas. We have, for example, launched First Ascent, our new premium outerwear and gear line built in partnership with some of the best mountaineers in the world. First Ascent brings back our heritage as America's premier expedition outfitter and the many renowned First Ascents accomplished with the help of Eddie Bauer gear. Jim Whittaker, the first American to summit Mt Everest, expressed the standard against which we are rebuilding this brand: "Without exception, every article of down equipment we used carried the Bauer label ... and it was superb."
First Ascent is now the official product line of Rainier Mountaineering (RMI), America's largest and most respected mountain guide service. More than 60 RMI guides around the world live in our gear. Their safety and security, and that of their clients, depends on our gear. Our "dream team" of mountaineers tested the First Ascent product line at every stage of its development on mountains like Rainier, McKinley, Cotopaxi (Ecuador), and Aconcagua (Argentina) — culminating in Eddie Bauer's return to the Everest Summit this May. It's what Eddie would have done if he was still running the company.
First Ascent has been enthusiastically received and strong early selling is ahead of expectations. It will roll out to 180 stores this fall, merchandised in a First Ascent "shop" within the store featuring a 65 inch plasma TV playing highlights of our expeditions. It will re-establish our credibility in the outerwear category while adding excitement and emotion to the store experience. A few minutes of our video dispatches from Everest will bring this to life.
Also coming this fall is our heritage collection, built in the tradition of Eddie Bauer field and stream. By October, consumers will see a revitalized Eddie Bauer store with field and stream inspired merchandise in the front of the store, expedition inspired product in the back. The "old" Eddie Bauer will be back, but with fresh, innovative, exciting new product and marketing. Taking an old idea and making it new again — it's a formula that works over and over in retail brands.
We are confident in this direction. Everything we have done in the past two years that goes back to our heritage has worked. We have validated our strategy with early wins. Now, we are prepared and ready for a powerful set of launches that we believe will cut through the clutter and put Eddie Bauer back on the map of exciting brands.
Nobody thought this turnaround was going to be easy. We've been working on our five part turnaround agenda for nearly two years. And we have results to show for it. We weathered the recession better than many because we got ahead of it. At the same time, we kept pushing forward with "offense," new products and new ideas that will generate sales growth and elevate the brand. Without a heavy debt burden, we will be successful.
To us, this is more than a company. It's a mission. There is a level of passion and dedication at Eddie Bauer that I have seldom seen in companies. We bleed Eddie Bauer green. Our 8,600 employees take pride in what we have accomplished so far, but know that much remains to be done. Most importantly, we know we can do it if given a fair chance and a better balance sheet.
The company launched both a seasonal catalog and a website in 2006. In November 2006, Bath and Body Works launched its first television commercial advertisement.[2] Net sales as of January 28, 2006, were US$2,285,000,000, significantly higher than all other Limited Brands, except Victoria's Secret.
In July 2008, the company announced that it was opening six locations in Canada. With the company acquiring Canadian-based La Senza, they felt it was the opportunity to move into a growing Canadian market, with The Body Shop being its main competition.[3][4]
In January 2009, they introduced the new packaging for the Signature Collection. The labels have also changed for the Signature Collection bodycare products, as well as the Slatkin & Co. and Bath and Body Works Signature home fragrance scents, including plug-in Wallflowers, Scentports, candles, room sprays and fragrance oils. They have also begun offering shipping to Canada. Bath and Body Works operates more than 1,600 stores.[5]
Inc. (Nasdaq: EBHI) today announced that its board of directors has elected
Neil S. Fiske as the Company's new president and chief executive officer
effective July 9, 2007. Mr. Fiske, who will also be appointed to the board
of directors, succeeds Howard Gross, a member of the Board who was
appointed interim CEO in February. Mr. Fiske, 45, has over 18 years
experience in the retail and related industries, having served most
recently as chief executive officer of the Bath and Body Works, a division
of Limited Brands.
William End, Chairman of Eddie Bauer, said, "On behalf of the entire
Board, I would like to recognize the leadership and efforts of Howard
Gross, who stepped in at a very important time, to stabilize and lead the
Company as interim CEO. We are pleased that we will continue to benefit
from Howard's perspective and experience as a board member.
"Neil Fiske is the ideal candidate for Eddie Bauer at this stage of its
evolution, with his knowledge of the retail industry and experience in
transforming brands and building management teams. We feel fortunate to
have someone of Neil's caliber and vision to lead the Company."
Neil Fiske said, "I am excited to join Eddie Bauer, a Company with a
rich legacy and a distinctive heritage as an active outdoor lifestyle
brand. I look forward to building on the momentum the Company has achieved
in its turnaround efforts. There is enormous potential for Eddie Bauer, and
I look forward to helping maximize the Company's opportunities and creating
sustainable long-term growth."
As chief executive officer of Bath and Body Works of Limited Brands,
Mr. Fiske led the turnaround and brand transformation of a leading
specialty retailer, reversing more than two years of negative comp store
sales and declining profits. Under his four-year tenure, Bath and Body
Works grew from $1.8 to $2.5 billion, achieved record profits in 2006 and
launched a number of innovative, industry leading brands. Mr. Fiske also
helped launch a highly successful e-commerce and catalog business. He was
recognized as "Marketer of the Year" and "Retailer of the Year" in 2004 and
2005 by Women's Wear Daily.
Prior to Limited Brands, Mr. Fiske spent fourteen years at Boston
Consulting Group focused on the Consumer Goods and Retail sector where he
gained experience in branding, retailing, consumer marketing and
operations. He is the author of "Trading Up: The New American Luxury," a
Business Week bestseller and winner of the American Marketing Association's
Newberry award for best marketing book. Mr. Fiske is a graduate of Harvard
The story of Eddie Bauer today can be summarized in one phrase: good company, great brand, bad balance sheet.
We are in the process of turning around this classic iconic American brand and have demonstrated tangible progress. In the recession year of 2008, we generated $52.7 million in EBITDA excluding non-recurring and non-operational items — $10.8 million higher than the year before. Our comparable store sales outpaced most of the specialty retail sector and our competitors by a substantial margin. We took $48 million out of the operating cost structure of the business last year, with another $15 million coming out in 2009. We generated cash, with $60 million of cash on our balance sheet at the end of the year and a $15 million excess cash flow prepayment made to the Term Loan holders in April 2009. Thus far, we have delivered on what we said we would do.
Unfortunately, a crushing debt burden left from the Spiegel bankruptcy combined with the severe, prolonged recession have left us with no choice but to look for ways to restructure the company's balance sheet. We have made every effort possible to do this out of court, but have been unsuccessful in getting the various and diverse parties in our capital structure to agree to either a process or a plan. Rumors, speculation, and misinformation have put additional pressure on the company and made it necessary for us to take decisive action.
We are already fixing this business. We are restoring a great American brand. We have made progress and know what remains to be done. But we need some help.
I came to Eddie Bauer in July of 2007 after running the successful turnaround of Bath and Body Works for four years. Having spent the better part of a 20 year career working on building consumer and retail brands, I was attracted by the enormous potential that could be realized by bringing Eddie Bauer back to its roots. I used to be a customer. I used to love the brand. In fact, I bought one of the first Eddie Bauer Ford Explorers. But like many, I drifted away over the years as the company went through a number of leadership changes and confusing diversions from the core Eddie Bauer brand equity. As I contemplated the move to the company, I was deeply impressed and swayed by a book that was given to me: The Legend of Eddie Bauer.
Heritage brands always have comeback potential — and few have a heritage as rich and compelling as Eddie Bauer's. There is no other brand that embodies both the spirit of the American Sportsman and the spirit of the American Explorer/Adventurer. The values and the aspirations personified therein are as timeless as they are universal. Eddie built product around the things that he loved to do outdoors, often in collaboration with experts in the field. He invented and later patented the first quilted down jacket in America after almost freezing to death on a winter fishing trip. He outfitted U.S. Army Air Corps pilots in World War II with the famous B-9 down parka and A-8 flight pants. He developed outerwear and gear for the major triumphs in the golden age of American Mountaineering. He became a champion breeder of black labs, always his faithful companion in the field.
But our heritage isn't just interesting lore. It's the guide for everything we do, a wellspring of inspiration for new products, innovation, and commercial ideas. We have, for example, launched First Ascent, our new premium outerwear and gear line built in partnership with some of the best mountaineers in the world. First Ascent brings back our heritage as America's premier expedition outfitter and the many renowned First Ascents accomplished with the help of Eddie Bauer gear. Jim Whittaker, the first American to summit Mt Everest, expressed the standard against which we are rebuilding this brand: "Without exception, every article of down equipment we used carried the Bauer label ... and it was superb."
First Ascent is now the official product line of Rainier Mountaineering (RMI), America's largest and most respected mountain guide service. More than 60 RMI guides around the world live in our gear. Their safety and security, and that of their clients, depends on our gear. Our "dream team" of mountaineers tested the First Ascent product line at every stage of its development on mountains like Rainier, McKinley, Cotopaxi (Ecuador), and Aconcagua (Argentina) — culminating in Eddie Bauer's return to the Everest Summit this May. It's what Eddie would have done if he was still running the company.
First Ascent has been enthusiastically received and strong early selling is ahead of expectations. It will roll out to 180 stores this fall, merchandised in a First Ascent "shop" within the store featuring a 65 inch plasma TV playing highlights of our expeditions. It will re-establish our credibility in the outerwear category while adding excitement and emotion to the store experience. A few minutes of our video dispatches from Everest will bring this to life.
Also coming this fall is our heritage collection, built in the tradition of Eddie Bauer field and stream. By October, consumers will see a revitalized Eddie Bauer store with field and stream inspired merchandise in the front of the store, expedition inspired product in the back. The "old" Eddie Bauer will be back, but with fresh, innovative, exciting new product and marketing. Taking an old idea and making it new again — it's a formula that works over and over in retail brands.
We are confident in this direction. Everything we have done in the past two years that goes back to our heritage has worked. We have validated our strategy with early wins. Now, we are prepared and ready for a powerful set of launches that we believe will cut through the clutter and put Eddie Bauer back on the map of exciting brands.
Nobody thought this turnaround was going to be easy. We've been working on our five part turnaround agenda for nearly two years. And we have results to show for it. We weathered the recession better than many because we got ahead of it. At the same time, we kept pushing forward with "offense," new products and new ideas that will generate sales growth and elevate the brand. Without a heavy debt burden, we will be successful.
To us, this is more than a company. It's a mission. There is a level of passion and dedication at Eddie Bauer that I have seldom seen in companies. We bleed Eddie Bauer green. Our 8,600 employees take pride in what we have accomplished so far, but know that much remains to be done. Most importantly, we know we can do it if given a fair chance and a better balance sheet.
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