The Ones to Watch
| MR. BIG | |||
Peter J. Canzone, CEO/chairman, Brylane
CEO since: 1978.
Founded: as Lane Bryant, 1904. Publicly traded since February 1997.
Catalogs: larger-size apparel catalogs Lane Bryant, Roaman's, Jessica London, and King Size for Men; regular-size apparel titles Chadwick's of Boston, Lerner, Bridgewater, and Sue Brett; launching Gramercy Home in September.
1997 sales: $1.3 billion
1997 earnings: $54.7 million
1996 sales: $1.2 billion
1996 earnings: $37.9 million
Growth rate: Specialty-size books growing annually in low double digits; regular-size catalogs growing in mid double digits.
House file: 12 million 12-month buyers
Track record: Canzone has spent 29 years at Brylane, starting as divisional vice president of Lane Bryant in 1969. Prior to that, he'd been with general merchants Spiegel and J.C. Penney
Why a leader: Over the past few years, Canzone executed a successful leveraged buyout from The Limited (1993), blasted into the public market (earnings per share up nearly 50% its first year), and turned a specialty-size apparel house into a sturdy platform for startups and acquisitions. By acquiring Chadwick's of Boston late in 1996, Brylane has become a major player in "regular" apparel sizes. Currently just 38% of its business comes from its larger-size books.
What they say:"Right now, it's definitely considered a happening company."-John Hayes, executive vice president, DM Management
Prospects: Canzone's surehanded management has made every Brylane book an earnings winner. Now with 40% of its stock owned by $18 billion French retail/catalog conglomerate Pinault Printemps-Redoute, Brylane has rosy international horizons as well.
| THE YOUNG GUN | |||
Stephen Kahn, cofounder/president/CEO, Delia's
Company founded: 1993. Publicly traded since 1996.
Key managers: Christopher Edgar, cofounder/chief operating officer; Evan Guillemin, chief financial officer
Catalogs: teen girls' apparel book Delia's, home accessories title Delia's Contents, soccer catalog TSI Soccer
1997 sales: $113 million
1997 earnings: $4.4 million
1996 sales: $54 million
1996 earnings: $2.2 million
House file: 1.3 million
Track record: Youngsters all (just 31 years old), the cofounders had been investment analysts before hitting on the Delia's idea in their mid-20s.
Why a leader: Delia's is the one catalog company that seems to know what Generation Next wants. Among junior high girls, Delia's has as much squeal appeal as Leonardo DiCaprio. Almost.
What they say: "I was the guy who pooh-poohed Delia's, but it has to be regarded as the most notable startup in past five years. And I think it will develop a family of catalogs toward Generation Y, which is a good market. Generation Y's folks haven't cut them off yet, so they have access to money, and they're undermarketed."-Bill Nicolai, The Good Catalog Co.
"Delia's was able to say, 'There's this big market of girls and nobody's marketing to them.' That it pulled that off to the degree it has shows that it will be really successful and think ahead."-consultant Katie Muldoon
Prospects: Biggest Generation Y list in the business, thanks to acquiring TSI Soccer in 1997. If any catalog can get kids to shop mail order, this one can.
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