Sustained cold promotes fur retail sales in US

SANDY PARKER REPORT, VOL. 31, ISSUE 46, JAN. 28, 2008
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
Sustained cold promotes fur retail sales in US
WINTRY WEATHER HAS BEEN BRINGING OUT THE FUR CUSTOMERS and retailers are not letting many walk away empty-handed, but the traffic is described as not quite what it should be and the blame is being placed on the economy. January fur sales have picked up nicely following an uncertain start and more seasonable temperatures have been providing the stimulus that had been mostly missing for the past two seasons. However, reduced discretionary spending power because of higher living costs, as well as growing uneasiness over the U.S. economy, are believed to be putting a damper on store traffic.
Furs are still riding a popularity crest and early press coverage of the European collections for next fall indicates the leading designers are using at least as much fur as last year. Thus, two of the main factors in the movement of furs – desirability and immediate wearability – are in place. What retailers think has weakened is the affordability factor. Not a matter of price, which has come down from a year ago, but consumers’ ability to fit a new fur into their budgets.
NET PROFIT FOR FINNISH FUR SALES IN ITS LATEST FISCAL YEAR ended Aug. 31, 2007, plunged 65%, reflecting the sharp drop in pelt prices, but also the declining value of the dollar. The financial report indicated after-tax profits totaled 2.7 million euros, compared with 7.6 million euros the previous year.
The company’s mink volume increased markedly during the year, mainly as a result of higher production in Poland. Fox volume, however, decreased in line with a production decline due to lower price levels. Russia, Turkey and Italy were the major fox buyers, while Hong Kong/China bought less as a consequence of increased domestic production of foxes and raccoons and import regulations that favored China’s domestic crops.
IN THIS ISSUE:
Sustained Cold Promotes Sales
January Retail Shaping Up…
…but Economy Is Seen Hurting
Interest Rate Cut Expected to Help
Foxes Strong at Finnish Sale
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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