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Molto Chic NEW YORK — Step Aside, Layers and Pilings and Bulk

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COSTS COOL VF NET/2 THE VERSACES’ HOLLYWOOD MOMENT/16 WWDWomen’s Wear Daily •WEDNESDAY The Retailers’ Daily Newspaper • February 7, 2007 • $2.00 Sportswear Molto Chic NEW YORK — Step aside, layers and pilings and bulk. Marc Jacobs took a 180 on Monday night, delivering a stunning, austere collection inspired by Bertolucci’s “The Conformist.” And there was plenty of understated drama, too, as demonstrated by this sequined, tailored jumpsuit. For more on the shows, see pages 6 to 15. Adding Different Facets: Swarovski Eyes Growth Via Beauty and Jewelry By Amanda Kaiser WATTENS, Austria — Swarovski wants to be more than a crystal. The nearly $3 billion company is on a mission to maintain its dominance of the crystal market through innovation while diversifying into precious stones, beauty products and even wedding planning. “This whole parent brand approach was really our starting point…to develop something which can go beyond crystal,” Markus Langes-Swarovski, a member of the executive board and Daniel Swarovski’s great-great- grandson, told WWD in an interview at corporate headquarters here. See Swarovski, Page38 PHOTO BY GEORGE CHINSEE PHOTO BY 2 WWD, WEDNESDAY, FEBRUARY 7, 2007 WWD.COM Charges Hurt VF 4th-Qtr Profi t WWDWEDNESDAY Sportswear FASHION As Revenue Grows 9.3 Percent Marc Jacobs, fed up with craziness and fashion hijinks, made a big 6 move with a beautiful collection that was full of bourgeois grandeur. By Ross Tucker NEW YORK — VF Corp.’s sale of its intimates seg- GENERAL ment hampered fourth-quarter earnings, but failed Swarovski, a $3 billion fi rm, wants to grow through innovation and to slow the revenue-generating momentum of the 1 diversifi cation in areas like precious stones and wedding planning. company’s growing portfolio of lifestyle brands. VF Corp. fi nished off the year with a 5.3 percent earnings gain and “Certainly, we’re in a very different position revenues of $6.14 billion, a 10 percent increase over the year before. today than we were several years ago,” Mackey 2 McDonald, chairman and chief executive offi cer, EYE: An unusual array of celebrities showed up to applaud Marc Jacobs said during a conference call with analysts. “Our 4 at his show, from Rod Stewart to Lee Radziwill to Michelle Rodriguez. growth plan is working.” Versace has reopened a sleeker Beverly Hills fl agship, coinciding with For the fourth quarter ended Dec. 31, the Greens- Donatella Versace getting a Rodeo Drive Walk of Style award. boro, N.C., manufacturing giant reported a 14.8 per- 18 cent earnings decline, to $108.6 million, or 95 cents MAINSTREAM: Another busy year of mergers and acquisitions is ex- a diluted share, compared with earnings of $127.5 20 pected, especially from midsize fi rms looking for ways to compete. million, or $1.13 a share, in the same period a year Avon Products has turned a corner, ending the fi rst year of its multiyear ago. However, excluding charges related to the sale restructuring plan with a 9 percent fourth-quarter revenue gain. of its intimates division, the company would have 24 reported an earnings gain of 12.5 percent. Brands such as The North Face, Vans (shown here) and With a glitzy party at a ski resort in Chamonix, France, Mont Blanc Revenues for the three months grew 9.3 per- JanSport continued to fuel the company’s outdoor segment. 26 showcased its desire to become a player in the diamond jewelry market. cent, to $1.6 billion from $1.46 billion in the year- door segment, noted that The North Face managed WEST: Turnberry Associates is targeting locals rather than tourists at ago period. Sales grew 9.3 percent, to $1.58 billion to generate double-digit gains despite the unseason- Las Vegas Town Square, a $750 million mall to open in October. from $1.44 billion, and royalty income rose 13.4 ably warm temperatures during the quarter. 40 percent, to $21.9 million from $19.3 million. In contrast, Angelo LaGrega, president of VF’s A Coterie preview is included as a Section II with this issue. McDonald assured analysts that the compa- jeanswear coalition in the Americas, said, “The dy- ny would continue to add lifestyle brands to its namics of the [jeanswear] business shifted during Classifi ed Advertisements.............................................................41-51 portfolio through acquisitions. VF was large- the fourth quarter,” as several major customers To e-mail reporters and editors at WWD, the address is fi rstname. ly dormant on the acquisition front experienced lagging same-store sales throughout the year, acquiring only due to warm weather. “We will still be [email protected], using the individual’s name. the Eagle Creek brand in late working down inventories in the WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. December. Still, McDonald be- fi rst quarter in the mass channel” VOLUME 193, NO. 29. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one lieves the results continue to as a result, said LaGrega. additional issue in January and November, two additional issues in March, May, June, August and December, and three additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance support management’s con- Despite the problems Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by centration on investing in caused by warmer weather, Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human its current brand stable. the jeanswear segment, Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail “Organic growth has the company’s largest and Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return Mackey undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: picked up sharply, validat- oldest division, posted SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA ing our decision to invest McDonald noteworthy gains. Overall 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit more in our brands,” said jeanswear revenues rose www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new McDonald. 1.9 percent, to $700 mil- subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, Brands such as The lion from $686.8 million. please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other North Face, Vans and The bulk of gains was at- Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. JanSport continued to fuel tributable to a 7 percent rise If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA the company’s outdoor seg- in international revenues. 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, ment, which again posted the Domestic revenues were fl at, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR largest gains for the quarter and with the exception of the Lee CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR year-end period. Outdoor revenues brand, which had a 16 percent DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY rose 31.6 percent, to $452.6 million jump in revenues. A SELF-ADDRESSED STAMPED ENVELOPE. from $343.9 million during the quarter, The sportswear division’s revenues with The North Face, Vans, Kipling and JanSport increased 7.8 percent, to $197.2 million from all reporting double-digit revenue gains. According $182.9 million, driven by double-digit gains in the to the company, domestic revenues rose 34 percent Kipling and John Varvatos brands. In Brief and international revenues spiked 28 percent. Imagewear, which includes Harley Davidson The North Face stands out as perhaps the stron- apparel and industrial apparel, had a 2 percent ● PACSUN CLOSINGS: Pacifi c Sunwear of California said Tues- gest example of the type of lifestyle brands VF decline in revenues, to $230 million, owing to a day that it planned to close 74 underperforming d.e.m.o. stores is looking to acquire. The brand has consistently planned exit from a commodity fl eece business. that contributed to a pre-tax operating loss of about $9 million in turned in double-digit revenue gains, and during the For the full year, VF reported a 5.3 percent rise 2006. The teen specialty retailer will renovate 20 to 25 top-per- fourth quarter, in particular, consumers were willing in earnings, to $533.5 million, or $4.72 a share, com- forming d.e.m.o.
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