The Ones to Watch


THE GIFTS & GAMES GURU

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Coy Clement, CEO, The Paragon

CEO since: January 1997

Company founded: 1971

Catalogs: gifts catalog The Paragon and puzzles catalog Bits & Pieces (acquired at the end of 1997)

Key manager: Stephen Rowley, president

1997 sales: approaching $60 million

1997 earnings: n/a

1996 sales: about $40 million

Growth rate: 50% on Clement's brief watch

Expected sales for 2001: $150 million-$200 million

House file: 1 million 12-month buyers

Track record: Clement's long career includes stints as marketing director of kits cataloger Heathkit, vice president of furniture catalog Yield House and outdoor apparel mailer Eddie Bauer, and president of tool and kits catalog Leichtung Workshops. Launched Improvements home products catalog; helped turn Bauer from Bean clone to casual clothing marketer.

Why a leader: Clement, in one year, has shown he knows how to expand a catalog franchise-fast. Now, using The Paragon as a platform, he is encouraging acquisitions and new business opportunities.

What they say: Clement, who convinced investment group Wand Partners to buy The Paragon with him, "understands the dynamics of the catalog business, and the add-on acquisitions [that are planned] will capitalize on The Paragon's very, very efficient fulfillment and distribution and customer service. The investors understand the key to business is excellent management, and they've been bringing in excellent managers. The Paragon is a company you'll see branch out."-Battle

Prospects: Clement has shown that he knows how to grow a variety of new businesses. No reason he can't do the same here.

THE MAKEOVER MAN

Gordon Cooke, president/CEO, DM Management

CEO since: 1996

Company founded: 1987. Publicly traded since 1993.

Catalogs: women's apparel titles J. Jill and Nicole Summers

Key managers: John Hayes, executive vice president; Olga Conley, chief financial officer

1997 sales: $135.5 million

1997 earnings: $6.4 million

1996 sales: $84.6 million

1996 earnings: $2.3 million

Growth rate: 60% sales, 100% EBIT

House file: J. Jill: 505,000 12-month buyers (up 192% from year earlier); Nicole Summers: 325,000 12-month buyers (up 5% from year earlier)

Track record: Prior to DM Management, Cooke turned Bloomingdale's by Mail into a premier apparel cataloger.

Why a leader: After wheezing losses in 1995, DM Management-in Cooke's hands-turned sharply around with a distinctive, focused merchandise offering and product presentation. Customer segmentation and aggressive prospecting have made the catalogs major contenders in women's apparel.

What they say: "Gordon Cooke thinks outside of the box. I think the company will continue to do well."-Tony White, president, co-op database Abacus Direct

Prospects: Cooke has an instinct for branding and merchandising, backed up with Hayes's solid numbers management. Still no sales plateau in sight.


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