The Ones to Watch Jun 1, 1998 12:00 PM
, Diane Cyr
JobZone
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For more than 100 years, cataloging has been an upstart business. But by
2001, look for the big boys to be taking over. And as you'd expect, the
people who'll be leading this bigger, grown-up industry won't be kids with
hot ideas just out of business school. By and large, they'll be
experienced, seasoned executives with a common quest: to build big
companies, carefully but aggressively, one solid catalog at a time.
Among those listed here, few are gamblers. Almost all are
acquisition-minded and old hands, having led, built, or rescued other
catalogs. And all have strong, optimistic growth goals.
In fact, most of these names are pretty familiar. They're proven not only
at surviving a tougher catalog industry, but at thriving as well. "The
number of catalogs that make it from one year to the next, and continue to
grow, are clearly in the distinct minority," says David Leibowitz, managing
director of Burnham Securities. Well, if this bunch doesn't make it, maybe
nobody can. The year 2001 is only three years away, but as Leibowitz points
out, "three years is an awfully long time" in the catalog world. Stay tuned.
THE ONE TO BEAT
Dennis Pence, cofounder/CEO, Coldwater Creek
Company founded: 1984. Publicly traded since 1997.
Catalogs: gifts and apparel book Northcountry, apparel titles Spirit of the
West and Milepost Four, linens book Bed & Bath
Key manager: Ann Pence, creative director
1997 sales: $246.7 million
1997 earnings: $11.7 million
1996 sales: $143 million
1996 earnings: $5.9 million
Growth rate: 66% annually since 1992
House file: 1.65 million 12-month buyers
Track record: American dream. Dennis Pence was a national marketing manager
for Sony, Ann Pence a freelance ad copywriter when they decided to chuck it
all and move to Sandpoint, ID.
Why a leader: In a tough, oversold casual apparel market, Pence managed to
give serious chase to L.L. Bean and Lands' End. To raise capital, Pence
could have sold the company. Instead, he bet on himself, going public and
making a killing.
What they say: "I think the catalog is a real star."-consultant Don Libey
"Ultimately, by segmenting its customer file and seeing product
opportunity, Pence has created a tremendously successful catalog."-Craig
Battle, managing director, Tucker Capital
Prospects: Although Coldwater stumbled a bit this spring, most believe that
in timing, marketing, and product selection, Pence has struck gold.
THE (YOUNG) OLD HAND
Mike Smith, president/CEO, Lands' End
CEO since: 1994
Company founded: 1963. Publicly traded since 1986.
Catalogs: apparel catalogs Lands' End, Kids, Beyond Buttondowns (tailored
men's clothing), First Person Singular (tailored women's clothing), and
Willis & Geiger (adventure wear); linens book Coming Home
Key managers: Gary Comer, founder/chairman; Bradley Johnson, chief
financial officer; Chip Orum, chief operating officer; Mary Nordloh,
creative director; Francis Schaecher, senior vice president, operations;
William Ferry, vice chairman, sales
1997 sales: $1.26 billion
1997 earnings: $64.2 million
1996 sales: $1.12 billion
1996 earnings: $51 million
Growth rate: Sales up 9% during Smith's watch; earnings up 21%
House file: 9.6 million 36-month buyers
Track record: Smith, just 37, had already spent 14 years at Lands' End and
led the successful Coming Home launch before being appointed to top post.
Why a leader: Nobody does it better than Lands' End. Under Smith's
leadership, the catalog has continued its innovative marketing strategies
and strong intuition for product, which is all layered over enormous brand
equity. The cataloger is now opening up serious overseas potential in
Japan, the U.K., and Germany.
What they say: "Everyone will still be chasing Lands' End in 2001. It is
very, very strong and will be getting stronger. The children's book started
at zip and right now is a category killer. The company plans extremely well: It does five-year plans and gets through them in four years."-AnonymousP
rospects: Lands' End is continually surprising in its marketing prowess. If
Smith keeps the cataloger on course, it will likely only get stronger.
