The Ones to Watch
| THE GIFTS & GAMES GURU | |||
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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