Home / Knowledge / News / Fashion / Justice fashion brand for teen girls
Justice fashion brand for teen girls
Aug '08
Tween Brands Inc announced that it will convert approximately 560 Limited Too stores across the country to its more value-oriented Justice brand to drive growth and profitability. Both brands sell fashion basics and lifestyle items to 7-14 year old girls.

Upon completion of the conversion by the end of the first quarter of 2009, the Justice chain, which has 310 stores and has averaged double-digit comparable store sales over the last 14 quarters, will have more than 900 stores nationwide. The Company will no longer operate any Limited Too stores in the United States following the conversion, but will continue to sell Limited Too branded product at select Justice stores.

By refocusing on one store brand, the Company expects to achieve annual after-tax savings of $20-$25 million, or $0.80-$1.00 per share. The Company notes that the expected annual after-tax savings of as much as $25 million include approximately $15 million from reduced headcount in the home office and approximately $9 million in reduced marketing and store operation expenses.

Anticipated 2009 capital expenditure savings as a result of remodeling 20-25 former Limited Too stores with the less expensive Justice store design package are expected to substantially fund the store signage conversion program. The Company's 2009 capital expenditures budget is now expected to be approximately $45-50 million.

The Company expects to record a charge of approximately $18 million, or $0.45 per share, in the second half of 2008 related to the brand transition including severance, removal of Limited Too signage, asset impairments related to IT and store closings.

Tween Brands plans to close 26 underperforming Limited Too stores by the end of fiscal 2008 and monitor an additional 90 former Limited Too locations for possible off-mall relocation under the Justice brand. In a limited number of prior conversions from Limited Too, the new Justice stores have done equal or more volume, and in a few cases, significantly more.

“This is a bold strategy to capitalize on the tremendous success of Justice and the changing trends in our economy and our customers' preferences,” said Tween Brands chairman and chief executive officer Mike Rayden. “Especially in these tough economic times, our customers are seeking the more value-oriented apparel available at Justice, which is priced on average approximately 20-25% lower than Limited Too.”

Noting that the Limited Too brand was established in 1987, Rayden continued: “Limited Too was the brand that introduced great fashion to tween girls, but our customers are looking for the next great thing and their parents want more value for their dollar.

We believe Justice fits that bill as evidenced by strong sales comps at Justice and weaker comps at Limited Too, including this quarter's results. In fact, from fiscal year 2005 to fiscal year 2007, overall net sales at Tween Brands have increased 34%, yet our operating income has increased only 2% due in large part to the significant investments we have made to differentiate Justice and Limited Too.

Must ReadView All

Courtesy: Nine West

Fashion | On 17th Jun 2018

ABG wins bid in Nine West Holdings auction

Authentic Brands Group (ABG), owner of a global portfolio of...

Courtesy: Kreussler

Textiles | On 17th Jun 2018

USDA certifies Kreussler's solvent as biobased

The US Department of Agriculture (USDA) has certified Kreussler's...

Courtesy: ITUC

Textiles | On 17th Jun 2018

Democratic space shrink & corporate greed are rising: ITUC

Shrinking democratic space for working people and unchecked corporate ...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Indian fashion industry

Organic the first choice of any environment-conscious person

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search