Catching Up with Fred Derring and Lee Leonard

Few people have a better handle on the state of menswear business than Fred Derring and Lee Leonard of DLS, whose buying office caters to 170 better men’s specialty stores across the country. Here, an excerpt from an interview that will appear in the January 2010 issue of MR Magazine.

So how’s business?

Fred: It’s definitely picking up! Since early October, stores have been moving goods and even looking for reorders.

At left: Fred Derring, toasting a healthy holiday season in menswear!

Lee: Believe it or not, some stores have been unaffected by the economy: Wooden Nickel, Deans and Berlins to name a few. Why? Wooden Nickel changed his business to 70% women’s with a mix of different denim lines (their men’s features North Face); Deans focuses on a mix of dressy sportswear; Berlins has instituted a minimal monthly markdown strategy.

And these are not the only stores doing well! It’s about diversification of product which means adding categories e.g. women’s, outdoor apparel, gifts, readers, fragrance. On the other hand, a few stores have hit a brick wall and have never seen worse sales in their history. So despite improved October business, it’s still a roller coaster ride out there! (And November has started out slow… )

What’s selling well these days?

Fred: The biggest surprise is how well custom clothing is selling again: it had been way down and it’s now up, in both suits and shirts. Key brands here include Coppley, HSM, Hickey Freeman, Jack Victor, Ravazzolo and Oxxford. And it’s not just custom. Consumers are feeling better and stores are doing business, calling for more inventory across the board. All menswear categories are pretty good except for off-the-rack suits which are still tough. Half-canvas suits from China, however, are doing fairly well at $495 to $895 retail from several different vendors.

Lee: The phone last week was ringing off the hook with stores looking for woven sportshirts and cashmere (or cashmere blend) sweaters. There were also plenty of requests for specials, especially in topcoats and raincoats. Affordable luxury is the buzz, especially among higher-price stores that need to find realistic options. In sweaters, silk/cashmere has become more important than cashmere because of the price…

Fred: Other hot categories this season: woven shirts from Robert Graham, Thomas Dean, Scott Barber, the crossover outerwear/sportcoat with knit inset (the original ID model from Corneliani as well as less expensive versions from S. Cohen and Kroon), faux leather blazers at retails from $150 to $800 (Coppley, Utex, Concorde, S. Cohen), quarter-zip sweaters with suede patches from Alex Cannon (well priced with great margin), North Face outerwear, Agave denim, Ballin trousers, cashmeres at a price (last year’s $95 basic is now $50) and collections from Peter Millar, Tommy Bahama and Bills Khakis.

Your prediction for menswear in 2010?

Lee: The days of waiting to place orders and scrambling for goods are over! Especially in the last 30 days, the market has dried up. You can still find a dozen of this or of that but without the deep discounts. (In fact, I just talked to Seth at Alex Cannon who told me his early fall reorder business was huge!) So for fall 2010, stores will have to schedule out their purchases by delivery.

Fred: But if retailers continue to bring in compelling product (and there’s plenty out there), inspire their sales associates and market their stores aggressively (including in-store events), it will be a great year! After all, much of the competition will be weeded out; those who remain are the strong ones.