The Price Is Right NEW YORK — with Memorial Day Weekend Coming Up, WWD Celebrates Summer This Week with a Look at Warm-Weather Merch
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CHINA TARIFF IMPACT/3 GWYNETH’S LAUDER DEAL/23 Women’s Wear Daily • The Retailers’ Daily Newspaper • May 23, 2005 • $2.00 WWDMONDAY ▲ Gwyneth Paltrow Accessories/Innerwear/Legwear The Price Is Right NEW YORK — With Memorial Day Weekend coming up, WWD celebrates summer this week with a look at warm-weather merch. First up: fabulous fashion that costs $50 and less. Here, Old Navy’s nylon, Lycra and polyester bikini top, $14.50; Viktoria Hayman’s wood necklace, $50, 877-352-4224; A.P.C.’s cotton pareo, $34, at apc.fr; a dyed cornhusk tote with raffia flower from Redfish Designs, $33, at redfishdesigns.com; Old Navy’s plastic sunglasses, $10, and a leather sandal from Seychelles, $48, at Shopintuition.com. For more summer hits, see pages 6 and 7. Coty’s Global Ambitions: Calvin Klein Key to Unilever Deal By Molly Prior And Beetz showed it on Friday analysts said could catapult the NEW YORK — Coty Inc. chief executive when Coty acquired the marquee company into the top five of global officer Bernd Beetz is serious when Calvin Klein fragrance by signing a fragrance firms. he talks about grooming the deal to buy Unilever’s global Beetz has bigger ideas. He intends privately held company to be the prestige fragrance business for to become “the world fragrance world’s leading beauty firm. $800 million, a move that some See Coty, Page 22 PHOTO BY GEORGEPHOTO BY JULIA TOPOLSKI CHINSEE; STYLED BY 2 WWD, MONDAY, MAY 23, 2005 WWD.COM There’s No Dearth in Denim By Sharon Edelson stocks Friday — American Eagle $26.64, and PacSun closed at WWDMONDAY Outfitters, Abercrombie & Fitch $20.99, down 69 cents, both on the Accessories/Innerwear/Legwear NEW YORK — There can be too and Pacific Sunwear of Cali- Nasdaq. A&F closed at $54.49, much of a good thing — perhaps fornia — to “underweight” from down 71 cents, on the New York FASHION even for denim. “neutral.” Stock Exchange. Summer is meant to be easy and breezy, so there’s no need to spend big Fashion trends generally flow “Our sense is that denim for Guess will increase denim in- 6 bucks when chic looks can be had at affordable prices. in three-year cycles, but a lot can the industry continues to be ventory by 25 percent, and Aber- happen to shorten that life span. strong, but we also feel a glut crombie’s inventory is up 50 per- The most common and damaging brewing as retailer after retailer cent, compared with being down GENERAL is overexposure. Think of any de- talks about the larger denim in- 20 percent last year, Graves said. Coty Inc. acquired the Calvin Klein fragrance business by signing a deal to signer handbag or runway craze vestment and higher prices they He added that America Eagle is 1 acquire Unilever’s global prestige fragrance business for $800 million. whose facsimile turned up in the are planning on that denim,” up 5 percent. Others loading up As stores increase denim orders for fall, two Wall Street analysts have windows of Express, Zara and Pak wrote in a research note. on denim include Express, Gap 2 raised concerns there may be too much denim chasing too few customers. H&M a few months later. Jeffrey Klinefelter, a senior and Aeropostale. “If everybody makes the same research analyst at Piper Jaffray, Retailers most at risk are U.S. sourcing executives saw the move by China to place higher tariffs on bet, you’ll have a sea of sameness, said the moderate denim space those selling commodity-type 3 its apparel and textile exports as more symbolic than substantive. where everybody’s window is full is getting crowded. “Although we products. “There’s not enough INNERWEAR: The focus on newness at this month’s market overtook the of denim,” said Andy Graves, sen- are encouraged by American premium-priced denim or 8 apprehensive mood related to retail consolidation and lackluster sales. ior analyst at Pacific Growth Eagle’s decision to expand its al- adorned denim,” Graves said. Estée Lauder Cos. has snatched another bold-faced name, Gwyneth Equities, referring to the high ready dominant denim assort- “We’re in a good cycle, but the Paltrow, to be a spokeswoman for the Estée Lauder brand. denim inventories some retailers ment for back-to-school, we are product has to be creative. It 23 have planned for fall. “That could concerned about the number of can’t be a once-washed, five- Chanel shoppers gave the label two thumbs up to the tune of $5.6 million in cause backlash and buyer confu- competitors who have witnessed pocket blue jean.” 24 sales during a three-day record-breaking Bergdorf Goodman trunk show. sion. If the Gap doesn’t hit its AE’s success and will be joining Rob Wilson, president and EYE: AmFAR’s Cinema Against AIDS benefit at Cannes brought out the dazzling sales targets, the stores will start the denim fray in earnest this founder of Tiberon Research, 28 dresses missing from the red carpet all week and the stars to wear them. to mark down, and you’ll get a dis- summer and fall,” he wrote in a said that A&F is less exposed counting cycle. That’s the risk.” research note. because the company increased Classified Advertisements ..................................................................25-27 Even as retailers increase Klinefelter lowered Ameri- its price points and separated it- To e-mail reporters and editors at WWD, the address is denim orders for back-to-school, can Eagle’s rating from “outper- self from the pack. [email protected], using the individual’s name. at least two Wall Street analysts form” to “perform.” “The more commoditized WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 have raised concerns that by fall Executives at A&F, American brands have more exposure,” he FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 189, NO. 109. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one there may be too much denim Eagle and PacSun did not return said. “There may be more expo- additional issue in June; two additional issues in April, May, August, October, November and December, and three additional chasing too few customers. phone calls seeking comment. sure with department stores and issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL Stacy Pak, a Prudential retail On Friday, shares of American brands like Old Navy...The people OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill analyst, downgraded three retail Eagle declined $1.07, to close at really at risk are the wholesalers.” Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. 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