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PHOTO BY DOMINIQUE MAITRE WWD WWD Women’s Newspaper Daily •March5,2009$3.00 Wear •TheRetailers’ Daily Women’s Newspaper Daily •March5,2009$3.00 Wear •TheRetailers’ Daily

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launches page 16. ▲ NEWS: Natalie AmazingGrays worked here into a skirt suit with fur trim. For more on how Dior is upping the luxury pages 8 and 9. And to see more designers these prints,” John Galliano says of the Ikat getting ready for Paris Fashion Week, which kicks into highgear today, see pages 4 to 7. PARIS – “I’m sure Mr. Dior would have loved weave he used for Christian Dior’s fall- weave heusedfor Christian Dior’s ante with its stores and products, see winter in the house’s signature grays, Sportswear/Men’s quarter — representing the bulk of its loss — quarter —representingthebulkofitsloss $693 million impairment charge in the fourth Stock Exchange. The company said it took a close at $2.50 Wednesday on the New York dismal finalquarterof2008. improvement forretailsalesin2009fromthe Wednesday that he anticipates no immediate L. McComb warned on an earnings call chiefexecutiveofficerWilliam Claiborne due to “the highly uncertain environment,” and iseyeingadditionalcostcuts. “meaningful” lossesinthefirsthalfof2009 Inc.isexpectingfurther Liz Claiborne million, mainly due to a goodwill writedown, After postingafourth-quarterlossof$828.9 By WhitneyBeckett More Expectedin’09 To $829MillionLoss, Writedowns DragLiz Claiborne’s shares fell 11.4 percent to sharesfell11.4percentto Claiborne’s guidance Declining toprovide2009earnings

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WWDThursSportswear/Men’sDay Dior FASHION 4 French designers get ready for Paris Fashion Week, ™ which hits its stride today. A weekly update on consumer attitudes and behavior based GENERAL on ongoing research from Cotton Incorporated 1 Goodwill writedowns of $693 million on top of a rough economy contributed to Liz Claiborne Inc.’s DRESSED TO THE ‘09 $828.9 million fourth-quarter loss. s 8 Dior continues to ramp up its luxury quotient, The Dress Stands Out as One Smart Garment This Year even as the economic downturn bites. 11 THE BEAT: Junior sportswear companies brace A woman who is ‘dressed to the nines’ is attired In today’s highly competitive retail marketplace, themselves for a bumpy back-to-school ride. flamboyantly or smartly, according to definition. it is entirely possible to get more than you pay for, 13 Bucking the downward trend, Martin Margiela’s Dressing for ’09, however, is less about dressing promises Stoner from Edressme, and that should freestanding stores and corners in Paris logged a smartly and more about dressing intelligently. It is a be welcome news to the 94% of female respondents 21 percent increase in January versus a year ago. new era where a challenging financial environment who reported to the Monitor survey that they plan to 14 Anemic consumer spending, jittery retailers and challenges all women to do more with less—enter, spend the same or less on clothing this year versus last uncertainty about near-term business has put a happily, the dress. year. “Interesting silhouettes, colors and fabrics used chill on the licensing business. “In these tough economic times, purchasing are making even dresses under $99 competitive with a versatile dress that can translate from work to a more expensive designer offerings,” notes Stoner. 16 Net-a-porter.com will unveil a new brand, night out is a smart purchase,” says designer Lauren One of the fabrics that resonate with women Outnet.com, a discount designer outlet that will Moffat. “It is like having two dresses in one.” today is cotton. “We are seeing cotton’s share of the launch next month with more than 200 brands. The right dress enriches a wardrobe, without market going up and women are choosing it for both 18 Adidas AG reported net profits leaped 151 taxing the mind when trying to casual and dressier apparel,” Bastos percent to $71.2 million in the fourth quarter. select something to wear, promises says. “Consumers love cotton Classified Advertisements...... 27 Joanne Stoner, Chief Executive “In these tough economic times, because it is so easy to care for. Officer of Edressme, an online Our data tell us that most women To e-mail reporTers and ediTors aT WWd, The address is [email protected], using The individual’s name. dress retailer. “Dresses require purchasing a versatile dress prefer to clean their garments WWD IS A ReGISteReD tRADeMARK oF ADVANCe MAGAZINe PUBLISHeRS INC. CoPYRIGHt ©2009 much less thinking when putting that can translate from work to at home, versus dry cleaning, FAIRCHILD FASHIoN GRoU P. ALL RIGHtS ReSeRVeD. PRINteD IN tHe U.S.A. together an outfit,” she says. “The a night out is a smart purchase.” because it allows them to be wise VOLUME 197, NO. 47. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with ease of throwing on a dress in about their spending.” When one additional issue in January, May, October, November and December, two additional issues in March, April, June – Lauren Moffatt, Designer and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division the morning has spoiled many asked by the Monitor survey how of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services women because it is no-fuss, they typically wash a dress, 53% of provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage practical and there are so many female respondents say that they paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. fashionable choices.” wash a dress in cold water and 19% in warm water. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian “A dress is a good investment piece because a Only 26% say that they dry clean. The respondents addresses to: P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 PoStMASteR: SeND ADDReSS CHANGeS to WoMeN’S WeAR DAILY, P. o. Box 15008, North Hollywood, CA 91615–5008. FoR SUBSCRIPtIoNS, ADDReSS great fitting style can be worn day or night by just also claim that they typically wash or dry clean a CHANGeS, ADJUStMeNtS, oR BACK ISSUe INQUIRIeS: Please write to WWD, P. O . Box 15008, North Hollywood, CA changing your shoes or outerwear,” adds Kate dress after two wearings. “Women can get good use 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all Ciepluch, Fashion Director of online retailer out of a dress; it’s that simple,” says Bastos. editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. Shopbop.com. Even beyond the workplace, the dress is a For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online That versatility clearly holds an appeal for the garment that women can wear for every occasion. at www.wwd.com. To subscribe to other 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 majority of women. Almost seven out of ten female “There’s a wide variety of styles, silhouettes and that we believe would interest our readers. If you do not want to receive these offers and/or information, please respondents (68%) tell the Cotton Incorporated trends in dresses today,” says Stoner. “Edressme has advise us at P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT ™ RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, Lifestyle Monitor survey that they prefer to wear just over four thousand styles of dresses for all occasions, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR one comfortable outfit all day, rather than changing from casual to office dresses, cocktail, evening and ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER clothes to fit different activities. formal gowns.” MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE “Dresses are the mainstay of many women’s In these tough economic times, it is becoming ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. wardrobes for several reasons,” Moffatt observes. increasingly less surprising that women are looking “They are go-to pieces, you know how you feel in it to economize with even the most formal of dresses, and you don’t have to worry about what to wear with Stoner observes. “There truly is an element of ‘Can I it. It is a total look in one piece. Any accessorizing or wear it again?’ among brides and bridesmaids when DAILY Right now fashion layering is just icing on the cake.” picking out bridesmaids dresses. It’s less about trend “ Women already appreciate the value of the dress; or color and more about getting greater life and value QUote should be a morale according to Monitor data, female respondents out of the dress,” says Stoner. currently own an And with a little booster, escapist, excellent and average of six dresses. How Women Dress for Different Activities style savvy, women The current are doing just that constant. Now is the time to invest in popularity of the dress these days, she notes. stands in stark contrast “A cocktail dress luxury, quality and excellence. to the decline of the can become office ” business suit. In 2000, appropriate just by — Dior’s John Galliano. Page 8. the typical female adding opaque tights respondent owned 4 Change from otherwise bare Pajamas suits on average; in clothes to fit legs, dressing down TODAY ON 2008, she owned 2 29% the jewelry and often suits. Undoubtedly, 32% adding a cardigan or .com prevalence of business Wear one blazer.” WWD casual in today’s work comfortable outfit Turning to the environments is a dress helps many Roberto Cavalli contributing factor 68% women get the most for ready- to the phenomena. In their fashion budgets to-wear 2008, Monitor data in this dour economic fall 2009 reveal an extremely climate, and ensures backstage. low 4% of female that any woman has a respondents cited a quick and easy solution conservative business for being dressed to the D r suit as the clothing nines in 2009. A h they wear to work, while 38% said that they C A e wear casual clothing and 30% wear business-like IN h clothing with freedom, all of which leave ample This story is one in a series of articles based on find- LP De room for the dress. y B

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Dresses today can serve dual purposes, bridging t tracking research. Appearing Thursdays in these O

the gap between fashion-forward and budget- Ph friendly, asserts Melissa Bastos, Manager of Market pages, each story will focus on a specific topic as it Research at Cotton Incorporated. “A dress today relates to the American consumer and her attitudes • Featured Images: Backstage looks from the Milan shows is a really stylish item and the good news is that and behavior regarding clothing, • Ongoing coverage of Paris Fashion Week including reviews, we are seeing many dresses at lower prices. It’s one appearance, fashion, fiber selection and parties and Fashion Scoops garment that serves multiple purposes.” many other timely, relevant subjects. • More photos of Paris designers getting ready • Videos of key collections in New York, Milan and Paris • Full runs of show from all the ready-to-wear collections WWD, thursday, march 5, 2009 3 WWD.COM Roberto Cavalli Opens Paris Flagship FASHION SCOOPS COSTUME BALL: It will be a starry night when the Metropolitan Opera By Alessandra Ilari and Katya Foreman The final floor includes an intimate lingerie celebrates its 125th anniversary on March 15 with a gala evening space with “sexy toys,” a selection of pieces from sponsored by Yves Saint Laurent. Not only will musical icons like Renée PARIS — “I’m a firm believer that there’s no suc- Cavalli’s home furnishings line, as well as a pet Fleming, Roberto Alagna, Joseph Calleja, Natalie Dessay and Angela cess without excess. That’s my mantra.” corner that showcases the house’s new dogwear Gheorghiu be among those performing 26 different scenes on stage, but So says Roberto Cavalli, who describes his new line, offering everything from a bathrobe to a Placido Domingo will be feting the 40th anniversary of his Met debut. 8,640-square-foot Paris flagship — slated to open snow-white ski suit for mutts. Offstage will be celebs from the Honorary Committee, which includes to the public on Monday with an inaugural bash “Our house is full of dogs, and we thought this was Nicole Kidman, Tilda Swinton, Julianne Moore, Linda Evangelista, Claudia Saturday — as his most “ambitious and surprising a fun project that reflects the Cavalli glamour with the Schiffer, Carine Roitfeld, Eva Mendes, Claire Danes and Ginnifer Goodwin. project to date.” Meanwhile, Tony-award-winning costume designer Catherine Zuber has Located in a seven-story build- been deep in the Met archives re-creating 35 ensembles for the event. ing on the corner of Rue Saint- Among them is a matador-inspired gown originally designed by the Honoré and Rue Cambon, and couturier Valentina in 1935 for “Carmen.” The modern-day version will be loaded with gleaming surfaces, worn by mezzo-soprano Waltraud Meier. it is hardly understated and — the designer fretted — might be DREAM A LITTLE DREAM: Mid-masthead editors who have found themselves perceived as over-the-top in this struck from the seating chart as shows downsize during the economic economy. crisis needn’t fret about Lanvin. Alber Elbaz said Wednesday he does not “I had some doubts on the new consider an inclusive guest list a luxury. “Now, everybody said, ‘Let’s blueprint, but this shop was in the do a small show,’ ” said Elbaz. “Intimate, I believe in, but a small show works for three years, and many — if you invite only the editors in chief — all the writers, the assistants things changed in the meanwhile,” lose the dream. This is the time to invite the people who dream.” Not to the designer said in an exclusive mention the people who are the industry’s future editors in chief. interview. “The whole store is a declaration of love toward women, FEET FIRST: English stylist Tabitha Simmons, who is married to fantasy and my work.” photographer Craig McDean, is stepping into a new role: Shoe designer. The final version is less lav- Simmons plans to unveil her first collection Monday night during Paris ish than the initial plan. Midway Fashion Week at a cocktail at Lapérouse. through the remodeling, Cavalli opted for a lighter mood, con- SNAP JUDGMENT: “It’s much better to be an active part of fashion than just ceived with his longtime architect watching,” said Zoe Cassavetes, who’ll be snapping portraits for jewelry friend Italo Rota. brand Dinh Van over the coming days. The young director, who attended “We wanted to give the space Kris Van Assche’s the rhythm and structure of a cou- show on Wednesday, ture house,” said Rota. “It’s a grand said she’s also project that is at the same time in- working on a short timate, made with scintillating ma- film in L.A. terials, niches, unexpected corners and tiny living rooms.” BREAK TIME: The boutique has a Seventies Apparently some vibe with retro merchandising people think that units in gold metal and a palette the weak economy of browns, including a gleaming doesn’t preclude chocolate resin floor that lightens vacations — in fact, in intensity as customers move up the Gansevoort Hotel through the building. Group is hoping that An ornamental cagelike struc- it will mean folks ture dominates the entrance, in will want to escape even more. With that golden metal, suspended from the Views of the new Roberto Cavalli boutique. level above like a sci-fi chandelier. in mind, they are The work is a wink to the recently opened Cavalli animal prints,” said Eva Cavalli, the designer’s wife. opening a 91-room club in Florence. Housed in the three floors above the store are hotel in Turks and The Gansevoort Hotel is opening hotels The first floor is dedicated mainly to acces- the Paris press and administrative offices, as well Caicos next week. in Turks and Caicos. sories, including a floor-to-ceiling honeycomb- as an apartment for the designing couple. It’s the third after the shaped eyewear unit in gold metal. Cavalli called having a lavish Paris flagship Meatpacking District and the recent Miami addition. (Next up is one Daywear is found on the second floor, reached “a dream come true. I’ve been designing for on Park Avenue and 29th Street in New York, followed by Toronto and by a golden elevator or brushed metal staircase, quite some time and I’ll never forget my young Chicago). Of course, the hotel group is importing a little bit of Manhattan while the third floor houses eveningwear as well days spent in Paris when couture was palpable to Providenciales Island in the form of a Bagatelle restaurant, an open-air as a private salon for made-to-measure, contained throughout the city,” he said. “I was so intimidat- Exhale Spa and staff wearing Rag & Bone uniforms. in a separate wing that retains the building’s orig- ed every time I walked past the headquarters of inal, 18th-century classic French features. an atelier.” CAR CULTURE: In recent years, Louis Vuitton has collaborated with Stephen Sprouse, Takashi Murakami and Richard Prince. The house’s newest partner, though, is not from the arts world. At the Louis Vuitton Classic Awards, which were held in Geneva on Monday, the company unveiled Yamamoto Links With Ferragamo that it teamed up with Infiniti, the luxe division of Nissan Motor Co., on a new set of luggage MILAN — Salvatore Ferragamo and Yohji black-and-white pattern; a smooth two-toned for the brand’s Essence Yamamoto have linked to produce a small foot- lace-up, and a strawberry red pull-on ankle boot. hybrid concept car. The wear collection called Salvatore Ferragamo Retail prices range from $470 to $1,050. Damier Graphite canvas for Yohji Yamamoto. The sculptured shoes will The shoes’ simplicity, built on complicated luggage pieces — currently premiere in red on the designer’s fall runway constructions, impressed James Ferragamo, di- displayed at the Geneva on Friday. rector of the women’s leather goods department, Motor Show — are “Ferragamo is the top specialist in shoe making who worked with Yamamoto on the project. “It designed to fit into the and working with them was an amazing experi- was a wonderful exercise in design. Yamamoto trunk of the car, and one of ence that bought me lots of is very precise and very the cases is hand-painted happiness,” said Yamamoto A look from concentrated. We were in Infiniti colors with the in an exclusive interview. Salvatore challenged with molding initials of Nissan design As the project unfurled, Ferragamo for the leather to get the soles director Shiro Nakamura. Yamamoto traveled to Yohji Yamamoto. right, especially when the A piece from Louis Vuitton’s luggage set The project is in the spirit Ferragamo’s Florentine heel was part of it, and for Infiniti’s new Essence car. of Vuitton’s history. More headquarters, where he getting all the pieces to than a century ago, the met matriarch Wanda match,” said Ferragamo. house made trunks for automobile makers like Mercedes, Hotchkiss and Ferragamo, toured the mu- Yamamoto added that Panhard-Levassor, and accessories for companies such as Bugatti, Rolls- seum and mined the ar- he has always wanted to Royce and Kellner. chives. He was fascinated collaborate with the best by Ferragamo’s trailblazing makers, especially when COAST TO COAST: How do New Yorkers compare to Angelenos when it styles, to the point that he they “safeguard their long- comes to the ideal body for clothes? “Athletic and augmented, that’s the believes they would “dis- established brands in to- AA of L.A.,” Cameron Silver of Decades declared on Tuesday, at a gathering appoint any student who day’s complicated fashion at the Metropolitan Museum of Art on “Fashion Fault Lines: West Coast/ thinks his work is original.” market.” East Coast.” Los Angeles’ Silver discussed the topic with New Yorker But the one thing the ar- “High quality crafts- Tiffany Dubin and Costume Institute curator Andrew Bolton. Silver said the chives lacked was “mannish, unisex and neutral manship is similar to the secret recipe of a long- style on the West Coast is defined by the juxtaposition between casual, shoes,” said Yamamoto. established restaurant, which is not to be removed activewear looks worn for Starbucks runs and the glittery evening gowns So he took care of that with seven unfussy and from the premises,” he contended. on the red-carpet circuit. “It’s schleppy versus fabulous,” he said. The trio sinuous styles, at times influenced by the house’s The shoes will be available starting in early talked about the significance of stylists and how every socialite and actress iconic Vara ballerina or archival patterns. July in Yamamoto boutiques, in 35 Ferragamo flag- demands free clothes today, before the conversation veered toward vintage Among the standouts are a man’s shoe laced ships and select points of sale. clothing — something vintage lover Dubin knows much about. “You’re an to the tip; an urban take on the hiking boot in a — A.I. owner, not a loaner, that’s why we love you,” Silver told her. 4 WWD, THURSDAY, MARCH 5, 2009

Karl Lagerfeld and his entourage at work under Mademoiselle Chanel’s watchful eye. Down to The Wire

Photos BY Dominique Maitre FranCois GoizE Anuschka Blommers and Niels Schumm

Decision Snap-happy time at at Anne Lutz. Valérie Hash.

s Bringing on the bangles at Loewe. WWD, THURSDAY, MARCH 5, 2009 5 WWD.COM

Doing the Ungaro twist “Who’d have thought I’d be doing this at almost 60!” whooped with Esteban Cortazar. Jean-Charles de Castelbajac, munching on a toy tiger destined for his “Sesame Street”-themed fall collection. And he wasn’t the only one looking to put the fun back into fashion. Ungaro’s Esteban Cortazar even broke into a dance during his fittings. And could Martin Margiela’s Cinderella-style glass slippers hint at a fairy-tale ending at his Maison? Here, a first look inside Paris ateliers and studios as designers geared up for the season.

Who will fit into Maison Martin Margiela’s crystal slippers?

PARIScollections/fall ’09

Chain reaction at Chloé. s Meshing about at Sharon Wauchob. 6 WWD, THURSDAY, MARCH 5, 2009

Sonia Rykiel wishes Naked ambitions upon a star. at Viktor & Rolf.

Feeling like a muppet at Jean-Charles de Castelbajac.

Suited and booted at Rick Owens. WWD, THURSDAY, MARCH 5, 2009 7 WWD.COM

Christian Lacroix pulls a surprise out of his tulle box.

PARIScollections/fall ’09 8 WWD, THURSDAY, MARCH 5, 2009 Dior Goes Ultraluxe Despite Tough Economy By Miles Socha PARIS — Long before the economic crisis, Christian Dior started to further ramp up its luxury quotient, from install- ing thicker carpets in its boutiques and displaying more crocodile handbags on the shelves to dispatching direct- mail catalogues too sumptuous to consider discarding. According to Dior president and chief executive of- ficer Sidney Toledano, the crisis will only speed up a trend the French firm already spied: a widening gulf be- tween ultraluxury players and also-rans. “What we have done the last two years is consoli- date our position at the summit of the luxury pyramid,” Toledano said. “It was the right choice. You either choose to be at the top, or down.” Dior was prescient in another way: In marking its 60th anniversary last year, the fashion house and its couturier, John Galliano, tuned into the house’s codes — from the famous “bar” jacket to the cane-work print — and turned up the volume on its heritage via products and advertis- ing. In the midst of a glut of “It” bags and shoes, “we were foreseeing that the customer might be saturated with the offer, and that they would at one point return to the strong players,” Toledano said in an interview in Dior’s stately gray offices on the Avenue Montaigne. “I think the crisis will accelerate this momentum.” “In a time of uncertainty, it is a time for decisiveness and for conviction. It is the time to turn to brands you know and can trust,” Galliano agreed. Toledano declined to divulge figures, but said the more luxurious store concept and upscale product offer has boosted the company’s “average basket” and that Dior has gained market share in handbags priced over 1,000 euros, or $1,250 at current exchange. In May, the house will shoot a second batch of ads for the Lady Dior handbag featuring Oscar-winning actress Marion Cotillard, depicted in the first episode clutching the lace-like metallic grid of the Eiffel Tower, the purse slung on her arm etched with a similar pattern. (Also coming out soon on Dior’s Web site is a mini-movie with Cotillard devoted to the making of the campaign.) Suggesting a trend back to “investment dressing,” the Lady Dior, first introduced in 1995, is now the company’s top-selling handbag worldwide, posting double-digit gains in recent years. The style, famously carried by the late Princess Diana, retails from $1,400 and never goes on sale. Toledano said the bag has been among its top-three sellers since its introduction but moved into the top spot last year, ahead of the Cotillard campaign. His explana- tion? Customers are looking for iconic products, made with quality and with the “sure value” of buying into a top luxury brand, Toledano said. He also credited con- tinued innovation with the style, which has appeared in “maybe 500 versions” since it was launched, from soft ones in woven leather to others in mink or crocodile. “The crisis is even developing this,” he asserted. “People are ready to pay for a more expensive product. They consider it an investment. They want to be able to use the bag several times a week, so it has to be of high quality, functional and also a perennial.” Toledano stressed people are “very selective” today when they make an investment, whether it’s in a house, stocks or a product. “It’s not that investment has stopped. People will continue buying, but in a different way,” he said. For example, in the United States, where the down- turn has hit hard, flaunting wealth is not apropos. “People want to be more low profile,” he said. “But you know, these people are not looking for cheap products. You can be low-key but still buy high quality.” Dior’s next contender in leather goods is the Trente bag, named after the French word for the number 30, the historic Avenue Montaigne address for Dior and the number of key design elements of the bag, including a logo medallion in a very Thirties style. The lambskin style, with the cane-work pattern hand- embroidered in the same soft leather, boasts a double- chain handle with glinting, faceted links carved using fine jewelry techniques. It began arriving in stores late last month, retailing from $2,300. Other iconic products include the Miss Dior shoe, a pump style that, like the Lady Dior, is refreshed con- tinually, while maintaining its perennial appeal. Despite a slowdown in sales and profitability in 2008 as business toughened, particularly in America and Japan, Dior cited good momentum in its own store net- work, which numbered 237 at the end of 2008. Toledano said Dior would open about 10 locations this year with a focus on emerging markets: China, the Middle East and Russia, where he said business in the firm’s own stores is holding up and new units are slated for Saint Petersburg and Ekatrinaburg this year. All the new units are based on the luxurious, 13,000-square-foot Inside the Dior flagship on Paris flagship, refreshed and enlarged by architect Peter Avenue Montaigne in Paris. Marino in fall 2007, boasting silk carpets hand-woven in WWD, THURSDAY, MARCH 5, 2009 9 WWD.COM Dior Goes Ultraluxe Despite Tough Economy The facade of the Dior boutique in Tianjin, China.

For more on Dior, see WWD.com.

A look from the Tibet, fitting rooms wallpapered in embossed leather, 56 “More and more women are coming each season to Dior 2009 pre-fall ready- discreet shades of gray and Louis XVI moldings. to do their wardrobe,” Toledano said. to-wear collection. The “haute” retail environment is “working really Galliano, couturier at the house for more than a de- well in emerging countries,” Toledano said, showing cade, said he has absorbed Dior’s DNA, and “even after photographs of recently opened new-look boutiques in all this time, it remains endlessly inspiring, exciting and Macau and Shenyang in China and New Delhi in India. unexpected. Mr. Dior was a genius, I am in awe of what Most of the new units are larger, ranging from 5,000 he created and only hope I can add and enhance this to 10,000 square feet, and showcase a range of prod- legacy,” he said. “This is a credit, not a creative, crisis. ucts, including women’s ready-to-wear, leather goods, Our clients still want fashion, still want to be inspired. fine jewelry, men’s wear and all manner of accessories. My role, now more than ever, is to dress their desires. “We want to show more of the universe,” Toledano ex- Right now fashion should be a morale booster, escap- plained. Coming soon is an 8,000-square-foot unit in ist, excellent and constant. Now is the time to invest in Dubai — a vote of longer-term confidence in an area luxury, quality and excellence.” hit by an economic meltdown. In tandem with the emphasis on iconic, upscale As reported, Dior has exited the logo and ac- products is a shift in communication, with “less sea- cessibly priced business as the company pur- sonal” campaigns like the Cotillard one coming to sues its upscaling drive, which impacted 2008 the fore. According to Toledano, advertising needs sales. Products that are too short-term, fash- Dior’s a story and strong brand elements to stand out from ion-driven and “too attractively priced” can new the crowd. “People are looking for real communica- “betray your client base,” Toledano said. “Our Trente tion,” he said. “What is this brand telling me?” average price has increased over the past three bag. Dior’s stable of celebrity pitchwomen, years. Even 2008 versus 2007, there was an for fashion and beauty products, includes increase in prices, but due to an Charlize Theron, Monica Bellucci, increase in value: the quality, the Eva Green and Sharon Stone, and leather, the details.” the house continues to rack up high- The Galliano era at Dior has impact red-carpet moments, most been marked by some of fash- recently with Sarah Jessica Parker ion’s most fantastical moments, in a white couture confection at from Pocahantas couture arriv- the Oscars. ing on a steaming locomotive “Dior is not an apparel ven- to wild, rockabilly rtw with dor; it’s not a bag vendor or a linebacker shoulders. More shoe vendor. This is why it’s recently, Dior’s New Look so close to the movie indus- has been more demure, ex- try,” Toledano said. “These emplified by French First actresses are showing the Lady Carla Bruni-Sarkozy, dream through Dior…this who has worn compara- dimension of dream, glam- tively prim suits, dresses our and elegance.” and coats for important state Having famous women functions, including a visit to the U.K. last year that wearing Dior, from royals and political figures to celeb- prompted a torrent of international media coverage and rities, is not meant to achieve a short-term impact, but comparisons to Jacqueline Kennedy. to feed the brand’s momentum and “add more substance Toledano said the new fashion direction was “not to the story of the brand. It’s a long-term process.” to calm down, but to put the pedal to the metal on the For his part, Galliano said it’s time to excel and push Dior codes.” Dior and himself further. In this aspect, he describes Galliano as a “gold mine. “Dior was a house born postwar. It created a New He’s the perfect designer to interpret that. Dior is not a Look that lifted morale and made women beautiful black box. Dior is an open universe and someone like again,” he said. “I want to continue the legacy, to con- John can really interpret it. This is the role of John, to tinue the dream and create modern beauty, luxury and bring all this newness.” new objects of desire. We need beauty, inspiration, cre- He said the new fashion direction has been a com- ativity — and in downturns, it is my role more than ever mercial success, particularly in Europe, in both couture to inspire the dreams of women.” and rtw, and has fanned the loyalty of its customer base. — With contributions from Teresa Lee 10 WWD, THURSDAY, MARCH 5, 2009 WWD.COM As the Paris fall season began, Anne ValErie Hash showed a collection with a masculine- feminine theme, while Gareth Pugh’s video projection featured graphic elements. Opening MovesAnne Gareth Pugh Valérie Hash

Gareth Pugh Anne Valérie Hash: Preshow, Anne Valérie Hash noted that fall revolves around a play of masculine and feminine. That’s no news flash to those already familiar with her oeuvre; her collections are always about the deft dance between the two. But this time, rather than splicing both motifs into a single garment, Hash divvied them up — the first half of the show focused on heavy tailoring; the second half a light, gentle romance. Hash opened her show, held in a former-brothel-turned-atelier, with a spare blazer over trousers. What followed was more of the conservative same — oversize mannish coats, boxy furs and pea jackets in a palette of grays and navys. Then came the feminine fare, all frothily ruffled and elegantly draped, some shot up with ample moments of sheer. It was pretty, but not without its hiccups, like the back-bustled frock or the tutu-esque peplums tracing the hips of dresses and pants. Still, all was forgiven by the time the evening gowns came around, especially the lovely metallic tulle number with tightly packed petal embellishments.

Gareth Pugh: Gareth Pugh opted to surprise his audience and show his fall collection as a large-screen video projection starring Natasa Vojnovic as a Gothic model caught in a modern dance trance. It’s an approach that would probably play better in London (here it bordered close to parody once a club kid in the audience declared, “So cool!” while the footage had yet to roll), but the film was well executed in an artsy, avant-garde style. As for Pugh’s message — strong and graphic — it was obvious, even if the clothes weren’t entirely clear. Between the graphic effects and the seemingly black-and-white production, it was hard to tell what was what. There was a breast-baring, slashed shirt worn with pleated, oversize palazzo pants, a bubble coat and several variations on a spiky pin motif. But fabrics and quality were impossible to discern and, ultimately, Anne Valérie Hash judgment should be withheld until a trip can be taken to the showroom.

Irfé’s cocoon Talent Contest PARIScollections/fall cape Crisis, schmisis. Off the runways, an inspiring crop of first-timers at Paris Fashion Week are rising to the ’09 challenge, some boasting heavyweight financial backing and others simply courage. Norway’s Kristofer Kongshaug, who will show for the first time here from Saturday to March 13 at the Door Studios, is one to watch. His darkly architec- tural line, handmade in Italy, features deft construction techniques, with one heavy felt wool coat fashioned from 60 pieces of fabric. Private backers Hugues and Marie Taittinger will host a debut presentation for the Heal collection on Tuesday at 5, Rue Clement Marot in the 8th arrondissement. Designed by the husband-and-wife team Hervé Koelich and Alice Reydellet, the experimental line ranges from a scuba diving-esque jersey bodysuit to a textured navy cocktail dress with a giant parrot appliqué. Fun daywear options, such as a gorilla-print silk skirt, lighten the lineup. Elsewhere, L’Officiel’s jewelry editor, Emily Minchella, and Caroline Baltz Nielsen, who works in the luxury timepiece sector, will present their new young cashmere line, Leetha, featuring T-shirts, ready-to-wear and accessories, on Sunday and Monday at Hotel Costes. The sprawling ready-to-wear and accessories collection by Irfé, the revived Russian Heal’s cashmere

couture house, runs the gamut from a sleeveless, cocoon-shaped wool coat to a multicolor GIANNONI AND DOMINIQUE MAITRE STEPHANE FEUGERE, GIOVANNI cocktail dress constructed from panels of draped silk. Developed by creative director jersey Olga Sorokina, the line, produced principally in Europe, includes gloves made by Agnelle parrot dress and jewelry made by Florentine artisans. — Katya Foreman PHOTOS BY WWD, THURSDAY, MARCH 5, 2009 11 WWD.COM The Beat Banking on Teens for B-t-s Tween Retailer Crafts

By Julee Kaplan A back-to-school look Online Experience from Dollhouse. JUNIOR SPORTSWEAR VENDORS SHOULD By Cate T. Corcoran hold on tight — the upcoming back-to-school season is sure to be the bumpiest ride yet. FASHIONOLOGY HAS MOVED ITS TWEEN FASHION- “The good news is that teens are still spend- craft-party concept online, making its Web store one of the ing. They are being more careful about how more unusual launches in cyberspace and at an unlikely time, they spend, but they are spending,” said Jane given the economy. Buckingham, president of The Intelligence When the retailer opened its fi rst store in Beverly Hills last Group, a market research and consulting fi rm June, the company’s Web site (at the time, a nontransactional with offi ces in New York and Los Angeles. one) was deluged with e-mails from girls as far away as India and “Also good is the fact that teens still see going Australia eager to know when a store would open near them. to the mall as an activity, a time passer and “We thought the best way to reach the most amount of they want to gather there.” tween girls who want to design and make their own clothes That said, Buckingham added that enticing was online,” said co-founder Elizabeth Wiatt, a former editor teens to spend their cash once they step foot at Marie Claire who, along with co-founder Jamie Tisch, is the into the mall means giving them a great deal of mother of tween girls. “Of course we wanted to be online. I guidance. This is especially important for b-t-s, don’t think you can be a modern retailer and not have a pres- when teens are most likely to spend the bulk of ence online.” their money on apparel. Girls select an item of clothing such as a sweatshirt or skirt “It’s going to be all about versatility and re- to embellish with iron-on transfers, charms, sparkles and jew- plenishment, not replacement,” Buckingham elry. The online experience is similar to the in-store kiosks, said. “Companies should be thinking about with fi ve fashion “moods” to choose from and an animated showing them ways to freshen up their looks, program that makes designing into a game. give advice on things like ‘10 ways to wear this At the store, the resident “fashionologist” prints the girl’s outfi t.’ Shopping for back-to-school will be all design plan. The girl adds fi nishing touches such as charms. about fi nding pieces they can feel great about.” Rob Callender, trends director at the Chicago-based Teenage Research Unlimited, said that in this economy he doesn’t expect it to be easy to capture the attention of teen shoppers.

“The majority of teens and ▲ Vanilla Star’s fall ads will twentysomethings are very feature Kate Voegele. concerned about the state of the economy,” Callender said. “However, teens are less con- Beyoncé Knowles in a recent Deréon ad. cerned than twentysomethings, and 10- to 12-year-olds are even less concerned than teens.” Callender said he thinks this is the case since tweens are more sheltered by their parents and are too young to know what is happening with the economy. He said that since more parents have been forced to discuss budgets with their teens, that age group tends to be more concerned about what they spend their The Fashionology Web store. money on. Online, a girl can save her creation and show it to others “Parents have a much greater con- on the site or via e-mail. If she (or, more likely, her parent) trol over what gets purchased and what buys it online, staff at the store print the design plan, iron on does not,” he said. “My advice would be the graphics, and package the accessories the girl will need to to be mindful of that when creating these Deréon’s president, Phillip Davis, said that as complete the creation at home. clothes — don’t make things too revealing long as it has Knowles as the face, it should con- Online, girls can see each others’ profi les, designs and or too sexy, being parent-friendly may be tinue to do well. rooms, and post messages and comments through the blog. At the best way to go.” “We’ve always believed that the line should the store, a girl can book a two-hour party with a fashionolo- At the New York-based Vanilla Star, Mark not be limited to an urban, streetwear customer, gist and games starting at $60 a person. Levy, president, said he has always been and we’ve honestly been doing exceptionally This week the site added partly fi nished garments that par- mindful of offering parent-friendly apparel. well across the board in department and spe- ents can order for slumber parties at home. Coming soon is a Not only is the line moderately priced, but cialty stores,” he said. “Of course, we are for- gift card tweens can use to make purchases online. last year he featured Olympic gymnastics gold tunate to have the Knowles family; it’s our A tank top is $16.50, sweatshirts are $42, and charms start medalist Nastia Liukin in the brand’s ad cam- biggest advantage.” at $2. paign, further sparking interest from parents. Davis said customers have been re- Last week, Fashionology publicized the online store with “We were at this in-store appearance sponding to product that relates directly a cross-promotion with Disney and the Jonas Brothers. Since with Nastia in Plano, Tex., and parents lit- to Beyoncé, such as T-shirts with song lyrics the store opened two weeks ago, thousands of girls have reg- erally thanked me for putting a face in our on them. He said the company is currently istered online. ads that girls can look up to,” Levy said. “Nastia brainstorming new ideas for b-t-s. Big Buddha Baba of Los Angeles helped design the store, which drew 6,000 people to that store that day, which just Also looking to capitalize on a familiar face is is run and hosted by Fashionology. The retailer employs seven peo- goes to show you how far a good-girl image goes.” Rampage, which has tapped Gisele Bündchen, ple and plans to expand, perhaps by opening fl agships or licensed As the father of two teenage daughters, Levy aka Mrs. Tom Brady, to feature in the brand’s ads stores in other cities, but has not yet settled on specifi cs. Each sea- said he has his next “good girl” lined up for the fall for the entire year. But Kimberly Lee Minor, vice son it updates the designs based on feedback from girls. Vanilla Star ads — Kate Voegele, who plays Mia on president of brand management at the Iconix Like all retailers, Fashionology has felt the economic down- “One Tree Hill” and has a lot of buzz surrounding Brand Group-owned Rampage, stressed that while turn, said Wiatt, who declined to disclose revenues. On some her music career. Bündchen can attract consumers’ attention, it’s weekends as many as six parties are booked per day. Tween celeb- “Kate is widely popular on ‘One Tree Hill’ and the product that will keep them shopping. That’s rities such as Sabrina Bryan of The Cheetah Girls have made ap- has that good-girl look,” Levy said. “We are cur- why the company has chosen to partner with ECI, pearances, and Teri Hatcher has stopped by with her daughter. rently negotiating some in-store appearances with a contemporary dress company, to produce the “These innovative hybrids of retail and entertainment are her for back-to-school, which I’m thinking could do Rampage apparel. what keep retail fresh and cause your audience to cross over really well.” “Partnering with ECI has enabled us to capture a on your threshold whether virtual or real,” said Wiatt. For Dollhouse, the coming b-t-s season means more sophisticated core customer through expand- returning to its roots and offering a full assortment ed retail distribution,” she said, noting the brand of junior sportswear. will reenter Dillard’s stores this month for the fi rst “We’ve been in business for 30 years, and time in years and that Rampage will also be sold years ago we did well with every classifi cation,” on Lord & Taylor’s contemporary fl oor in April. “We said Valerie Krioski, vice president of sales at are still on the junior fl oor in most stores, but ECI THE PERCENTAGE Dollhouse. “In more recent years, our core has be- has improved our quality, which has allowed us to OF TEEN GIRLS come denim, but for fall we are concentrating on expand into that contemporary arena.” WHO VIEW THEIR offering the full package — tops, dresses, skirts and Minor expects the coming b-t-s season to be CELL PHONES jeans. We want to be known as the one-stop shop strong for the brand, despite the economic crisis. AS A “FASHION where a girl can outfi t herself from head-to-toe.” “When we fi rst showed the product to the junior ACCESSORY.” The junior label Deréon has an inbuilt advan- buyers, they thought it was going to cost too much,” tage in that cofounder Beyoncé Knowles serves as she said. “But we’ve been able to maintain our % the brand’s face. Sources said Deréon has become price points [wholesaling between $11.50 and $35], SOURCE: TEEN VOGUE’S “IT GIRL” READER PANEL, FALL 2008 one of the most popular labels on the selling fl oor. which is especially important in this economy.” 57 12 WWD, THURSDAY, MARCH 5, 2009

Men’s L&T to Take Black Brown 1826 to the Runway

By Brenner Thomas Looks from MEN’S WEAR DESIGNER JOSEPH ABBOUD the fall Black will return to the runway tonight when he Brown 1826 presents the fall collection of Black Brown collection. 1826, the proprietary brand he designs for Lord & Taylor. The 30-look show, to be staged in the top- fl oor theater at Lord & Taylor’s Fifth Avenue fl agship, marks the retailer’s attempt to stoke the brand’s early success. Launched by Creative Design Studios, a brand incubator formed by L&T’s par- ent company, Black Brown hit all 47 Lord & Taylor doors this past fall, defying the econom- ic downturn and post- Joseph ing strong sell-throughs, Abboud Lord & Taylor executives said. Although L&T did not release sales fi gures, the line quickly joined the retailer’s top-selling men’s brands such as Polo Ralph Lauren and Calvin Klein. “The customer immedi- ately responded to the life- style brand and to the clas- sifi cations,” said L&T chief executive offi cer Brendan Hoffman, who joined the store in September. “It was a successful launch in an otherwise diffi cult sell- ing season.” Lord & Taylor and executives at parent

Hudson’s Bay Trading Co. — which is owned THOMAS IANNACCONE by NRDC Equity Partners — plan to expand the Black Brown offering next fall by adding new categories and programs. The brand is PHOTOS BY also launching in Canada this spring. The Bay, a better department store chain NRDC acquired last “Black Brown has strong quality and value that is un- The collection features lean textured trousers, piled- summer, will stock the full Black & Brown collection in derpinned by a real design aesthetic,” said Mary Beth on knits, soft tweed jackets and washed leathers that 50 of its 94 doors. Sheridan, Lord & Taylor’s head men’s merchant. “[Abboud] balance the rugged ease of a turn-of-the-century laborer The Bay is promoting Black Brown’s arrival, kicking knows how to appeal to our modern, updated base.” with the traditions of English tailoring. off festivities next week with in-store events, an edito- Imbued with Abboud’s signature texture, many items “Working-class luxury just feels right in this climate,” rial push and placements in Canadian magazines. in Black Brown appear to be more expensive than they Abboud said during a preview at the brand’s showroom While initial plans called for L&T to wholesale the are, including the nine-ply cashmere sweater that re- here. “Fashion needs to connect in this climate. It’s time line after the fi rst year, Hoffman said he’s in no rush. tails for less than $400 and the sport coat with leather to get back to stylish, relevant clothes.” “With the economy the way it is, it makes sense to fi ne trim for $225. Abboud was last on the runway four tune the brand here and maximize it within our own Lord & Taylor executives hope tonight’s show will years ago with the namesake line he space,” he explained. pique the interest of the fashion press and burnish the founded in the Eighties. Lord & Taylor executives said the line’s success is brand’s image. “When you have a success like Black “At this point, I don’t need to largely attributable to Abboud, the two-time CFDA award Brown, you want to give it the exposure it deserves be hot,” he said. “I just need to winner who ran his namesake brand through 2005. and not treat it like a house brand,” Hoffman said. WWD be good.” sons and even made a $4,200 custom suit for a three-year-old The Maestro of Custom Clothing to ring the bell at the New York Men’s Stock Exchange. “He probably By Jean E. Palmieri are “investments. You have them forever.” wore it once,” Spano said. Spano is known for his classic suits Although Spano does feel the ef- AFTER A CAREER THAT INCLUDES and unique sport coats, but he has recent- fects of the recession, “I did not lose stints at Bergdorf Goodman, Alfred ly introduced a new model that features a any customers,” he said. “They’re still Dunhill and Alan Flusser, custom tailor plain-front trouser, softer shoulder, larger coming in. I don’t sell things people need, Domenico “Mimmo” Spano will be hon- lapel and a higher two- or three-button I sell things they want.” ored tonight with Saks Fifth Avenue’s in- stance. “It’s a really modern silhouette,” Part of Spano’s success derives from augural Men’s Wear Icon Award. Ott said, adding the store is “talking about his silhouettes — he describes them as Spano has headed Saks’ custom de- putting an outpost [for Spano] on the sev- very Gary Cooper or Clark Gable — as partment since 2002 and is the store’s top enth fl oor,” where it houses its more-con- well as his exclusive fabric selection. salesperson, according to Tom Ott, senior temporary merchandise. Every year he works with the English mill vice president and general merchandise With his Italian accent, impeccable Moxon Hudder to design about 10 fabrics manager of men’s for the luxury retailer. manners and personal style, Spano is the that will sport his name on the bolt. “With business being this diffi cult, we quintessential custom tailor. He gave up a Despite his heritage, Spano is proud were looking for something we all could career in the Italian military to follow his to boast that everything he produces is feel good about, both internally and in future wife to the United States in 1971, made in America. “We can do everything the industry,” Ott said. “Mimmo is cel- without a job or a grasp of English. But in this country,” he said, crediting his ebrating his 35th anniversary and has a his future father-in-law, Joseph Gangemi, master tailor, Antonio, who has been with very strong following. In fact, many of his was “the premier custom tailor in New him for 25 years and the 12 additional tai- clients thought he should be honored. So York” and counted Nelson Rockefeller Domenico Spano will lors provided by Saks . we decided to launch an annual recogni- and Joe DiMaggio among his custom- be feted with a dinner Although he’s 64, Spano has no inten- tion award and start with Mimmo.” ers, Spano said. He loved the old movie at Saks tonight. tion of retiring. “The body ages, but the Although executives declined to pro- stars and was “interested in style,” so he mind does not,” he said. “I still think I’m vide fi gures, Spano is believed to have joined the business, making $75 a week. in 2002. He credits Dawn Mello, formerly 20 years old. My goal is to work as much the largest “true bespoke business in the After Gangemi’s death, he worked of Bergdorf, with helping him name his as I can and then train someone to take U.S.,” according to Ott. Loyal customers for Roy Rogers for a while — “I dressed label, insisting on Domenico Spano rath- over for me. That would be my legacy.” tend to buy his suits, which require sev- like a cowboy for two years and learned er than his nickname, Mimmo. “She said But he knows tailoring is a dying art, eral fi ttings, in multiples. Even though to say, ‘Happy Trails,’ ” he said. — but it sounded like someone who played soc- and Spano wouldn’t be surprised if cus- CHINSEE the suits retail for $4,500 on average, Ott saw an ad in the New York Times from cer,” he said. tom clothing in the future were made by said Spano’s business is “actually pretty Dunhill seeking a bilingual tailor. Today, his closely guarded client book machine. “It’s amazing what machines good. He sees his top 100 to 150 clients on After Dunhill, Spano managed the boasts over 1,000 steady customers, many can do,” he said. “I believe that 10 years a regular basis.” Alan Flusser custom business before of whom have followed Spano’s career from now there won’t be tailors, and tech-

Ott said Spano’s suits and sport coats joining Bergdorf Goodman and then Saks path for years. He dresses fathers and nology will take over.” GEORGE PHOTO BY WWD, THURSDAY, MARCH 5, 2009 13 WWD.COM Men’s Hartmarx Seeks to Be Sold Intact More Margiela, Less Martin By Brenner Thomas and Vicki M. Young By Miles Socha WITH THE BLUE BOOKS ISSUED AND THE DEADLINE FOR INITIAL BIDS NOW PARIS — How’s this for conceptual: Despite passed for potential buyers of bankrupt Hartmarx Corp., the firm’s chief executive a grim economic climate, Martin Margiela’s officer said those waiting to buy just a brand or two may be disappointed. freestanding stores and corners in Paris Sources at the troubled company, which filed for Chapter 11 bankruptcy protec- logged a 21 percent sales increase in January tion on Jan. 23, said offers from more than 10 entities, including both private equity versus a year ago. concerns and strategic buyers, were submitted by last week’s deadline. On average, sales in Margiela’s 35 shops “The interest has been extremely robust, and I’m very pleased with the re- and corners around the world posted a sponse,” said Homi Patel, chairman and ceo of Hartmarx. January bump north of 10 percent. Patel is confident Hartmarx will be sold as a single entity and not auctioned off It’s a sign of continued, albeit tempered, in pieces, as many analysts have suggested. “It’s our intent to get bids for the full momentum for the iconoclastic men’s and company, and it’s very feasible that will happen. More than feasible,” he said. women’s wear designer, who celebrated 20 A source familiar with one bid said Hartmarx was offered about $100 million for years in fashion last fall amid wide specula- the entire company. Bids at this stage are nonbinding. tion he was walking off into the sunset. Hartmarx did not release the names of potential buyers, but market sources in- “He’s still in his position,” assured dicate IAG, the apparel company led by Spencer Hays, is among the bidders, as is Margiela chief executive Giovanni Pungetti, a Chicago-based venture capital group led by men’s wear designer Joseph Abboud. while disclosing the Belgian designer has Both declined to comment on their interest in the company. recently reduced his day-to-day involvement Hartmarx has the exclusive right to file a plan of reorganization for 120 days from and is now rarely spotted in the company’s the date of its filing, with an extension of up to 18 months at the discretion of the rickety, all-white hallways. “He’s not here bankruptcy court. eight hours a day.” The presence of private equity players will undoubtedly surprise some in the Asked if Margiela would be backstage at men’s wear market, who presumed the investment community wouldn’t have the his women’s fall fashion show on Friday, the The London store means or the patience to mend the venerable, if beleaguered, apparel firm. ceo shrugged, “I don’t know. Sometimes he is, Not so, according to Bruce Raynor, the president of labor union UNITE HERE, sometimes not.” A men’s wear which has more than 2,000 members at Hartmarx. He has hit the road in the past In an interview in his office at Margiela’s look for fall. four weeks to pitch the company to possible buyers who might keep the company quirky headquarters, his desk a thick pane of whole and preserve jobs. glass laid over two sawhorses, Pungetti said “There are three firms that I know of who would keep the company intact,” said the company would continue to expand its Raynor. “It’s more likely in the current economy to be a private equity player.” product universe and exhibit at Milan’s fur- Last month, private equity firm Carlyle Group sought the bankruptcy court’s per- niture fair Salone del Mobile next month. mission to be put on the ser- “The idea is to go to Milan to show our vice list of all documents in philosophy in interiors that can be inter- the Hartmarx bankruptcy, a preted in the future. We feel our brand is a request that was approved universe that can be enlarged to other terri- on Feb. 12. Why it would tories,” he said. want all court documents Pungetti was cryptic so as not to spoil the remains unclear. Calls to “surprise” of its presentation. He character- the firm weren’t returned. ized the Salone presence as more of a teaser Carlyle already owns for a launch in 2010 rather than an introduc- Alliance Boots and a 48 per- tion of home objects or furniture. cent stake in Moncler. The furniture collection is another exam- ique Maitre n Patel and others at ple of the expansion of the brand since it was i Hartmarx, as well as their acquired by Renzo Rosso’s Only the Brave Srl m Do

financial advisers, will in 2002. The house’s first fragrance, under li- by begin meeting with poten- cense with beauty giant L’Oréal, will be un- tial buyers as soon as today, veiled to the trade in November, with distri- as the firm begins stage two bution to follow in 2010, Pungetti confirmed. of the sale process. “There What’s more, a second collection of fine Margiela arvey;

are at least half a dozen jewelry, in partnership with Italy’s Damiani, H that will remain in,” he will be unveiled later this year. Pungetti cited said. “From there, one or promising sell-through above 40 percent Nick two companies will make it in the company’s London and Paris stores to the finish.” for the first collection, which arrived last One banker, who rep- November. Retail prices range from 1,000 to

resents a potential buyer 5,000 euros, or $1,250 to $7,250. Store photo by interested in a few of the Pungetti expressed regret the economic Hartmarx brands, said slowdown has thrown a wrench into the firm’s strong, profitable growth vector — the distressed manufac- and retail expansion drive. Business has toughened in Asia and Russia, and Japan turer, known best for its remains challenging. Europe, by contrast, “is quite a good surprise because we are men’s wear brands such increasing in some markets; France, the U.K., and Italy are stable. The retail busi- as Hickey Freeman and ness is going very well all over the world,” he said. Hart Schaffner Marx, has Pungetti attributed the gains, in contrast to double-digit declines at many depart- declined to speak with ment stores and retail chains, to growing awareness and popularity of the brand, anyone who has expressed boosted partly by widespread media coverage of last year’s milestone anniversary, interest in the individual which included a retrospective exhibit at Antwerp’s MoMu fashion museum. brands. Many of them are He also credited early deliveries and “good collections,” particularly the women’s now waiting in the wings, line, which has recently ignited a trend to broad shoulders and sculptural necklines. believing there’s more Last year, revenues at Margiela rose 20 percent to around 70 million euros, or $103 value in breaking up the million at average exchange rates for the period. Full-year retail sales rose 31 per- bankrupt firm than selling cent in London, 35 percent in New York and 16 percent in Seoul, Pungetti noted. it as a whole. Hart Schaffner Marx, He forecast an increase in the range of 10 percent for 2009, and said the company One ceo of a major shown here, is one of would operate at breakeven. Women’s wholesale orders for fall, including its first men’s wear brand, who re- Hartmarx’s prize brands. pre-collection, dubbed Avant Premiere, have been “good,” he said. quested anonymity, said he “The collection that we have downstairs [in the showroom] that we are selling is will make a play for Hickey absolutely one of the most Margiela collections we have ever had,” he said. Freeman and Hart Schaffner Marx if, and when, they are liquidated. “I just don’t see Still, the economic slowdown means Margiela will rein in its store expansion. how the company will be sold in one piece,” he said. Margiela’s first Dubai boutique, in partnership with Villa Moda Lifestyle, is slated Of course, the interests of the creditors will be the paramount concern of the to open this month. The brand will also fete its recently completed and expanded bankruptcy court in Chicago. Munich location, and go ahead with a refit in Tokyo and a relocation in Seoul. Through the first nine months of last year, Hartmarx lost $7.5 million, versus net Other projects are on standby, although the brand will continue to scout for retail income of $2.5 million in the corresponding period a year earlier, and saw sales opportunities in Rome and Berlin, for example, Pungetti said. decline 8.9 percent to $374.5 million, according to court documents. Fourth-quarter “We have to be prudent and careful. This is not the moment to spend too much,” results have yet to be reported. he said, citing tight controls on general expenses, for example. Bankruptcy has prompted Hartmarx to trim its operations over the past two As for Margiela himself, Pungetti insisted the speculation about the designer’s weeks. It recently shuttered Zooey, a women’s casual line it acquired in 2006, which exit did not hamper the business, and said it’s been a “gradual” process of with- did less than $5 million at wholesale. “The brand was not profitable,” said Patel. “It drawal as he built his teams and entrusted them. He noted that one senior creative was a very small business.” staffer has been with Margiela for 19 years, and that the founder recently screened In an attempt to expand its portfolio into women’s wear and higher-margin busi- and recruited a successor to a senior designer who had recently resigned. The design nesses in recent years, Hartmarx had acquired not only Zooey but also Exclusively team numbers 16, not including product development staff, Pungetti said. Misook, Christopher Blue and other labels. It also acquired Monarchy Collection, a “He’s concentrating on more strategic projects. He’s still working with us in the men’s and women’s contemporary collection, in 2007. key decisions of the company,” he said. “Yesterday, we were calling each other. Hartmarx also closed or plans to close three Bobby Jones-Hickey Freeman out- “This is the spirit [Martin] wanted to create; that’s his philosophy,” Pungetti ex- lets, as well as one full-price Bobby Jones store in Honolulu. The company will con- plained. “He’s more consulting with us than designing every product. The team is tinue to operate four other Bobby Jones-Hickey Freeman outlets. more Margiela than him.” 14 WWD, thursday, march 5, 2009 WWD.COM Men’s The Big Rush Into Licensing Cools Down By Brenner Thomas To accommodate what they perceive as increased JA Apparel kicked off demand for licensing deals, Robert Burke Associates Anemic consumer spending, jittery retailers its license in China partnered with CS West International to launch RBA/ and uncertainty about near-term sales have put a chill with a runway show CSWI Global Licensing. on the licensing business. last year. “Licensing goes in cycles, and about six to eight “It’s a difficult time for the industry and a difficult months ago, more clients started coming to us looking time for licensing,” said attorney Charles Klein, who for licenses, whether for new categories of business or heads up the fashion practice at Davidoff, Malito & for a master license in countries where they weren’t Hutcher, where he specializes in corporate licensing. present,” said Robert Burke, president and ceo of the He said the yearlong recession has altered his business consulting firm. “With the economy in the state that it significantly. “New business has slowed and the parties is, and sales being difficult to come by, people are look- working on deals are being much more careful. It’s a ing to grow new categories of business that are in keep- ‘buyer beware’ market.” ing with their brand.” In times where capital is at a premium and organic Burke said two areas of interest are global licenses, growth is hard to secure, companies such as Liz particularly in countries like Japan and South Korea, and Claiborne Inc. are looking to licensing. accessories licenses, especially jewelry and sunglasses. “Our brands are identifying capital-light But the economy is affecting the terms of new deals. ways to grow through strategic partner- Brands profit from licensing by renting their intellectual ships,” said Claiborne chief executive offi- property to a manufacturer in return for a percentage of cer William L. McComb during its fourth- sales, or a royalty. Licensees also agree to a minimum quarter earnings call Wednesday. “Our annual payment. In good times, the terms of the royalty U.S.-based direct brands have significant WwD and minimum payments form the battleground of any untapped opportunity in markets all deal, but in a recession, when retail- over the world. In some cases, we have ers are reluctant to take a chance on partners in place, and in other areas, we Men’s new products, settling on numbers don’t. Juicy, for example, will now be part- becomes more difficult. nering in Greece, in Mexico and developing “It’s difficult to set minimums a very aggressive travel retail program. in an unpredictable market,” said “We’re looking at where product licensing Stone. “I’m recommending that makes sense,” McComb continued. “Lucky Brand, clients be flexible on terms, even for instance, will be launching footwear at wholesale advising to drop royalty rates by with the Camuto Group this fall, and we’re looking at 10 percent. It’s a new day and similar deals on other brands.” the goal is getting the product to Retail sales from fashion licensing contracted last year market, not making it difficult for in the U.S. and Canada to $8.5 billion, down 8 percent from and want more of it. licensees.” 2007, according to The Licensing Letter. According to Ira Executives said licensing deals Burke agreed that new deals are Mayer, the publication’s editor in chief, that number should in the apparel segment — espe- being structured with “more realistic drop again in 2009 as the recession continues to retard cially the once ubiquitous partner- minimums.” For existing deals, he launches and slow sales of existing licensed products. ships between celebrities and re- said, “Companies are certainly reex- It’s a far cry from the late Nineties when retail sales tailers — have been hardest hit. amining existing deals because they from licensed fashion products topped $13.5 billion as As an example, Stone cited realize what minimums are achiev- the apparel business rapidly moved to a lifestyle model Sarah Jessica Parker’s line able today are different than they that prompted niche brands to expand into multiple clas- Bitten, which is still tied up were two years ago,” said Burke. sifications, tiers of distribution and international mar- in bankruptcy proceedings The time horizon of new deals kets. In the last few years, celebrities ranging from Reba after the line’s exclusive re- is also getting shorter. A three-year McEntire to Jennifer Lopez have been busy lining up li- tail partner, Steve & Barry’s, agreement is standard in licensing, censes, and well-known designers such as Calvin Klein liquidated late last year. but sources said companies are build- and Betsey Johnson have successfully augmented their Celebrity licensing ar- ing flexibility into partnerships by businesses with licensed categories ranging from fra- rangements with Amanda agreeing to shorter time frames. grances and swimwear to costume jewelry and eyewear. Bynes and Venus Williams Additionally, existing licens- But today, brands — even ones in expansion mode — were also affected at ing partners are revisiting old are cooling their heels as consumers cut spending and Steve & Barry’s. Betsey Johnson has expanded her world by signing deals for contracts as manufacturers are retailers become allergic to untested merchandise. Meanwhile, top- swimwear, outerwear, costume jewelry and other products. squeezed by markdowns and a gen- JA Apparel, the company that owns Joseph Abboud, tier brands are finding eral downturn in consumer spend- has experienced rapid growth over the past five years it easier to ink deals than their lower-profile competi- ing. Some licensees are not making their minimums. through a raft of licensing deals that brought the men’s tors. Andrew Jassin, partner in consulting firm Jassin- “In the midtier, licensees are going back to brand wear brand overseas and into myriad new classifica- O’Rourke, said luxury brands with strong consumer con- owners for relief because they are missing their quotas,” tions. Marty Staff, president and ceo, said the company nections are still finding licensing easy, but not so with Jassin said. That presents brand owners with options: is still looking to push into additional markets — most secondary brands. “In the past if someone came up with either waive or lower the minimum payment, extend notably women’s wear — but isn’t eager to rush into a a good idea and a decent name, there was a market you the deadline for payment or terminate the agreement deal in the current market. could go to, a retailer that would take a chance on in- and take the licensee to court. Licensing agreements at the Beanstalk Group, the stinct,” he said. “Today, unless there’s a retailer on board Michael Lichtenstein, owner and founder of Group L agency that manages licenses for the Andy Warhol at signing, it won’t happen.” Consulting, a licensing firm in New York, expects mini- Foundation, Samsonite, and L.L. Bean, were down 50 The market for accessories, young men’s and interna- mums in this economy to be lower in most cases and even percent for the fourth quarter, according to president tional licenses has also held up. “nominal.” In existing licensing deals, Lichtenstein said he and ceo Michael Stone. “Licensees are reluctant,” he Geoffrey Beene, whose wide range of products is hasn’t “heard any cries for the renegotiating of minimums said. “The whole manufacturing community is experi- completely made under license, continues to rack up yet.” Because minimums are addressed quarterly, but part encing great caution.” new deals, especially for international markets, as in of a yearlong measurement, he expects those indicators Last summer, Neema Clothing, a men’s suit manu- its recent agreements for master licenses in Mexico and will be clearer around the second or third quarter. He said facturer, unveiled plans to turn Haspel, once a major Indonesia. The brand’s president of licensing, Merle he does not expect royalty size to become an issue. player in the men’s clothing business, into a lifestyle Sloss, sees the slow economy as a good opportunity to Secondly, in negotiating new licensing deals, brand. But company president Jim Ammeen said he’s sign competitive licensing contracts. Lichtenstein expects designers will become more flex- being more careful in vetting potential licensees, which “In the short term, there’s less competition for new ible in allowing their goods to be sold not only in the is slowing the process. partners,” she said, adding the moderately priced brand standard channel of distribution, but also a notch or two Licensors and licensees are scrutinizing potential will ink three to five new deals this year. “Globally, below, so licensees can expect higher volume through partners more thoroughly these days. there’s lots of opportunity for the brand.” more mass channels. “Due diligence has historically not been the hallmark of One of the flourishing areas of licensing these days is In fact, he expects diffusion lines and retailer exclusive the fashion industry,” said Klein. “But it’s happening now.” taking the brand overseas. For example, in January Tibi, lines, along the lines of Simply Vera Vera Wang at Kohl’s, In this environment, licensors are getting extensive the women’s contemporary firm, signed a licensing agree- will be an increasingly popular licensing category. business plans upfront and confirming the licensee’s ment with the Japanese Marubeni Fashion Planning Another profitable licensing category, even in the cash position before moving forward. Licensees are Corp. to produce and distribute in Japan, which could slowed economy, continues to be international licenses, doing their part by ensuring the prospective licensor’s more than double Tibi’s volume. particularly in Asia and the Middle East. brand is performing; that the company’s balance sheet While the pace of signing new licenses in the wom- “If you made a deal today, it wouldn’t be on tap is in good order, and that retailers support the product en’s business appears to have slowed in recent months, for product for another 18 months — and hopefully there are still deals to be made. Tory Burch struck its in 18 months from now, things will be better,” said first licensing deal for eyewear with Luxottica Group, Lichtenstein. although no new licensing deals are in the works. VF At Joseph Abboud, five out of 50 licensees will miss Corp. licensed its women’s Nautica outerwear to the their minimums this year, according to Staff, who said a $8.5 billion Levy Group, which has successfully grown with its few of the company’s licensing partners have met with stable of licensed outerwear labels such as A.B.S. by him over the past two months to ask for relief. “As a Retail sales from fashion licensing in the Allen Schwartz, Laundry, Betsey Johnson, Esprit, Liz general statement, we like to help the licensee without Claiborne, Claiborne men’s, Joseph Abboud and Perry hurting ourselves,” the executive explained. “We either U.S. and Canada last year. Ellis. Children’s lines are another popular extension, extend the length of the license, or trade money for Source: The Licensing Letter with firms such as Skechers USA Inc. and Jean Paul more time.” Gaultier inking licensing deals in the last few months. — With contributions from Whitney Beckett

16 WWD, THURSDAY, MARCH 5, 2009 WWD.COM Net-a-porter.com to Launch Discount Site By Samantha Conti Stephanie Phair and Natalie Massenet said the new site was a natural outgrowth Massenet of the core business, and denied the dismal economic LONDON — Net-a-porter.com is set to unveil a new brand: climate was a reason behind the launch of the brand. a discount designer outlet that aims to celebrate season- “Net-a-Porter has always had a very high sell-through less fashion. in the sale shop,” she said, adding this was not an “op- Next month, theOutnet.com will launch with a lineup of portunistic” launch. “When we do come out of this cur- more than 200 brands familiar to luxury shoppers, includ- rent crisis, theOutnet will still be relevant. This is really ing Christian Louboutin, Alberta Ferretti, Chloé, Oscar de about the life cycle of fashion, and for us there are good la Renta, Diane von Furstenberg and Hervé Léger. margins to be made. It’s not about a fire sale,” she said. On offer will be a mix of the former season’s mer- Although Massenet declined to give sales projections, chandise, classic pieces and greatest hits resurrected she said the team was expecting “healthy revenue and from designers’ archives, all with average discounts of profits,” given the existing customer base at Net-a-porter. 40 to 60 percent. The company also plans to give some She emphasized that while theOutnet may be new, it items away for free. would benefit from Net-a-porter’s infrastructure, mar- “We’ve been thinking of doing a sale shop — under a keting, buying and customer-service know-how. separate brand — for years, and now is the right time to Massenet said she expected there to be some cus- focus on it,” said Natalie Massenet, founder and chair- TIM JENKINS PHOTO BY tomer overlap between the two companies, but stressed man of Net-a-porter. product, use and trend rather than by season. the launch was an opportunity to “reach out” to a new “We are no longer a start-up, but a mature, estab- The new company is a division of the London-based consumer base. “The Net-a-porter customer is not price lished business, and we want to follow in the footsteps Net-a-porter Ltd. Stephanie Phair, who was previously sensitive,” she said, adding the average purchase price of stores like Barneys Co-op and Neiman Marcus’ Last vice president of merchandising at Portero, the luxury on the site last week was more than 600 pounds, or $840 Call,” she said, adding the new company aims to service auction Web site, has been named director. Phair is at current exchange. “We see this site as a place the sale customers and brands alike. building a separate team that will work alongside that shopper can call her own.” For customers, “It’s going to be about ‘the find,’ and of Net-a-porter. Massenet said she realizes Net-a-porter is not rein- giving them what they may have missed buying in pre- “Seasons are becoming less relevant, and for a lot of venting the lightbulb. Online operations such as Yoox. vious seasons,” Massenet said. For the brands, Net-a- customers it’s about finding the great product — no mat- com, Bluefly.com and even Amazon.com have been selling porter is offering “end-to-end” service and a “360 de- ter what the season,” said Phair. discounted designer gear for years. Most of the big Italian gree partnership.” The site will offer one-off “pop-up sales,” as well as brands have their own brick-and-mortar outlet stores in Massenet added the new on-line store will also pro- weekly promotions and giveaways. Fresh stock will be Europe, and discount villages run by companies such as vide an outlet infrastructure for smaller labels, such as added weekly. Value Retail and McArthurGlen Group, are doing roaring Temperley London, and give designers the chance to TheOutnet’s branding is distinct from Net-a-porter’s, businesses throughout the U.K. and Continental Europe. offer their classic pieces or put a new spin on old favor- with a hot pink and black logo, and the trademarked tag “There is room for a lot of players. What we’re doing is ites from past seasons. line: “It’s chic-onomics!” The fully recycled white shop- editing what’s available and offering the full service you’d The site will offer merchandise including rtw, acces- ping bags resemble Chinese laundry carriers, and say, get with Net-a-porter,” she said. “We want to give customers sories, lingerie and swimwear, and will be organized by “Please Re-Use” on the bottom. a fresh take on sales shopping and celebrating fashion.”

Fitting the handle on Luxury Firms Battle Changes in Online Rules a Louis Vuitton By Ellen Groves al of some 30,000 luxury boutiques, hundreds of thousands trunk. of jobs in Europe and the luxury business model itself. PARIS — Besides the financial crisis, luxury players say one Being able to impose certain criteria, such as excluding of the biggest threats to their businesses is possible chang- Internet-only retailers from their network, is critical, they es in European regulations that could affect their ability say. A pure e-tailer buying products at wholesale prices, to choose where and how their products are sold in the for instance, doesn’t have to pay store maintenance costs es z

Internet age. It could prove the biggest showdown yet in the so can retail a product for, say, 20 percent less and enjoy o ongoing battle between the luxury industry and eBay. higher net profits than brick-and-mortar stores, which is R While the lobbying intensifies in Brussels over the dubbed free riding. “Faced with that, the boutique is no proposed changes, a Paris court will next week release longer in a position to compete, and boutiques will disap- ntoine its ruling in a lawsuit waged by French cosmetics giant pear over a certain period of time,” warned a spokesman L’Oréal that accuses eBay of allegedly selling counter- for LVMH, which states the case for selective distribution feit fragrance bottles and for allowing the sale of genu- in a 43-page report dubbed “Handle with Care.” A PHOTO BY ine products by unauthorized dealers. While possible solutions to free riding range from between the online and the offline worlds. U.K. consumer The ruling will come as Europe’s competition poli- charging pure-players higher wholesale prices or even group Which also doesn’t believe manufacturers should cymakers are reviewing 10-year-old retail regulations, making customers pay for in-store advice, luxury groups be able to insist on a brick-and-mortar presence. referred to as Regulation 2790/1999 and Guidelines on say the freedom to exclude pure players is the ideal an- Since authorized retailers are allowed to establish Vertical Restraints, which allow for selective distribution swer. But they want to reserve the right to choose. The e-tail sites, they should be allowed to do so on eBay, networks, permitting manufacturers of everything from cars successful Net-a-porter site, for instance, carries LVMH argued Nash. “Retailers can take advantage of design to jewelry to impose quality standards on distributors. labels Fendi and Celine. tools and set up shop on eBay, offering the same images, As part of the review, competition commissioner “If the luxury dream we create, and which is expect- the same branding experience and information about Neelie Kroes initiated a consultation last fall to inves- ed by our consumers, is interrupted at no matter which products, in exactly the same way as a non-eBay site,” tigate the opportunities and stage, everything crumbles,” he said. “If distributors fulfill contractual arrangements barriers to e-commerce for said the LVMH spokesman. on their own Web site, there’s no reason to preemptively the estimated 500 million In the same way as its prod- say you can’t do that on eBay.” Internet users across Europe. ucts aren’t available through Manufacturers impose particularly onerous re- As reported, she recently met mass-market channels or cata- quirements for reselling goods online, the auction with Karl Lagerfeld. logue retailers, selling them any platform claims. While the consultation con- which way on the Internet would Extreme examples include that sales only be made to tinues, Kroes intends to pres- damage the image of its brands. customers with Web cameras or that Web sites carry recom- ent her main proposals this “It would be useless to make mendations that the consumer buys from a store instead. summer and the updated — or all these investments at the de- Online and offline shopping are complementary, in- unchanged — regulation will sign stage, in advertising, in man- sisted Nash. “It becomes a choice issue for the consum- be implemented in May 2010 ufacturing,” continued LVMH’s er. If they find a physical outlet, there won’t necessarily when the existing rule expires. spokesman. “If our product is be a market for Internet-only shops.” The review is expected to sold as a banal product, it is no Echoing the “there’s no need to fix what isn’t broken” iron out discrepancies in how longer a luxury product.” message that Lagerfeld conveyed to Kroes last month, national competition authori- Authorized LVMH retailers luxury players say there’s no need to intervene in what ties interpret selective distri- with physical boutiques can they insist is already a highly competitive industry. bution in the online world, to sell on the Internet provided “The top 10 luxury players generate 45 percent of sales harmonize consumers’ access A plethora of products on eBay. they create a Web site whose in the total industry,” said Elisabeth Ponsolle des Portes, online across Europe’s 27 member countries. quality is equivalent to that of their boutiques. LVMH chairwoman and president of the Comite Colbert. “In the Following a ruling by a Paris court last June, for also allows individual sellers to sell its products via automobile industry, the top 10 manufacturers generate 75 instance, French consumers cannot buy LVMH Moët some 40 auction platforms that on its request have im- percent of sales. So we’re much more competitive.” Hennessy Louis Vuitton-owned beauty brands Givenchy posed measures including refusing professional sellers, Ponsolle des Portes pointed to the success of rela- Parfums, Christian Dior Parfums, Kenzo Parfums and banning the use of pseudonyms and asking for payment tively new players, like Viktor & Rolf or Acne Jeans, as Guerlain on eBay, while Europeans elsewhere can. only upon delivery, to reduce the volumes of counter- further proof. “We want to show how much of a growth “That’s well beyond the existing European rules on se- feit goods. Ebay has declined to take such measures, driver we are for 21st century Europe,” she said. lective distribution,” asserted Richard Nash, senior manag- maintaining its professional sellers, of which there are “The luxury business in Europe represents the activity er for EU Public Affairs at eBay, which is calling for existing around 250,000 in the U.K., for instance, play an impor- the least affected by the current economic crisis,” added European rules to be clarified to prevent what it claims are tant role in creating new markets and spurring growth. LVMH’s spokesman. “It would be madness, under the pre- excessive limits on consumers’ access to products online. LVMH claims 90 percent of its luxury products avail- text of leaving freedom to e-business to develop uncontrol- Luxury players warn that removing manufacturers’ able on eBay between 2006 and 2007 were fakes. lably, to condemn a sector which works so well.” power to impose quality standards on online retailers as Arguing the right to selective distribution is already part of a wider move to liberalize the Internet could both a major concession from normal European competition Tell us what you think: hamper anticounterfeiting efforts and threaten the surviv- rules, eBay contends there should be no discrimination Go to WWD.com to comment on this article WWD, THURSDAY, MARCH 5, 2009 17 WWD.COM Generating buzz — both good and bad — takes on added importance in a period of negative economic reports. The research firm BrandIndex provided WWD with a ranking of stores recording the most positive buzz TheWwDList scores through Feb. 24. “We ask our respondents to consider news stories, advertising and word of mouth,” said Ted Marzilli, general manager. Buzz scores are determined by subtracting negative feedback from positive feedback, with a high of 100 and a low of -100. Target Corp. generated the most buzz through the end of February. “These top 10 retailers all have On the Radar significant buzz scores,” Marzilli said. “They are really high…so at least they Major retailers that have recently generated the highest amount of are on the consumers’ radar screens. But that’s just the beginning: There’s still work to be done. Retailers are still faced with the challenge of having to buzz among females ages 18-34. get them into the store to make a purchase.” — Cecily Hall

TARGET BrandIndex Buzz Score (out of 100): 43.2 Things are rough when the retailer with the top score is cutting jobs and reports weaker-than-expected sales, a drop in net income and appears to admit rival Wal-Mart Stores Inc. is winning the value-perception game. However, Minneapolis-based Target Corp. plans to open 27 stores across 15 states on Sunday, including the chain’s first two locations in Hawaii. And WWD reported this week that Jaye Hersh will launch a more mass-priced 1 line, Hollywood Intuition for Target, in July. The collection includes of-the-moment sunglasses, handbags, jewelry, small leather goods, scarves, headbands and hats, priced from $2.99 for a headband to $29.99 for a handbag, and sold only at Target stores.

AMAZON.COM Buzz score: 38.3 The February launch of Amazon.com’s Kindle 2 electronic reader (left) has lovers of books pumped up — and company revenues aren’t hurting, either. The Seattle-based e-tailer said in January that fourth-quarter volume jumped 18 percent to $6.7 billion compared with the same period a year ago. The company reported a 9 percent increase in net income to $225 million for the quarter, or 52 cents a diluted share. “We’re particularly 2 grateful for the unusually strong demand for Kindle in the fourth quarter,” said chief executive officer Jeff Bezos. Amazon.com reported its best holiday season in 14 years of business. “We’re really, really pleased by how the holidays went,” Amazon spokeswoman Tracy Ogden told WWD.

KOHL’S Buzz score: 30 Although the Menomonee Falls, Wisc.-based chain said last week that fourth-quarter profits declined 18.4 percent to $336 million, or $1.10 a diluted share, “a greater emphasis on proprietary brands provided a recessionary bright spot,” WWD noted. The company is generating buzz from Dana Buchman, which hit stores on Presidents’ Day, and Hang Ten, slated to make its debut in 300 warm-weather units in April. “The customer 3 responds well to new brand launches,” president and ceo Kevin Mansell said. “And we have room to grow on our exclusive brand front.” He pointed out that exclusive labels such as Simply Vera Vera Wang (an ad for the brand is seen left), Chaps, Tony Hawk, Daisy Fuentes and Fila have had “high consumer acceptance.” BEST BUY Buzz score: 28 The shutdown of Circuit City, the No. 2 consumer electronics chain behind Best Buy, will likely boost business at the $40 billion company headquartered in Richfield, Minn. Circuit City began liquidating its remaining 597 U.S. stores last month and expects to close all of them by the end of March. “Best Buy should be the big winner,” analyst Bradley Thomas of KeyBanc Capital Markets, told Investor’s Business Daily. 4 He expects Best Buy to pick up 25 percent of Circuit City’s sales, which would add about $2.5 billion to annual revenue. The retailer laid off 250 workers at its headquarters last month but, on the upside, it will create 210 posts that the displaced workers could take, for a net loss of 40 jobs.

J.C. PENNEY Buzz score: 27.5 “Customers are looking for style, a sense of design and affordable prices,” said chairman and ceo Myron “Mike” Ullman 3rd. “We are stepping up our style.” Toward that end, the $19 billion retailer threw a party in New York last month for 700 suppliers, Wall Street analysts, consultants and media to meet its merchants and the five celebrity designers who have created exclusive lines for the store: Kimora Lee Simmons (Fabulosity); 5 Allen Schwartz (Allen B.); Charlotte Ronson (I [Heart] Ronson); Michele Bohbot (Bisou Bisou), and Nicole Miller (nicole). Spring fashions and a related advertising campaign were unveiled at the event. The Plano, Tex.-based chain posted a 51 percent slide in fourth-quarter profits two weeks ago, but still beat Wall Street’s expectations by 3 cents. WAL-MART Buzz score: 27.4 “Wal-Mart Stores Inc. demonstrated the importance of price when it posted fourth-quarter profits that beat expectations and sales that were its highest ever,” WWD reported last month. The world’s largest retailer said net profits for the three months ended Jan. 31 dropped 7.4 percent to $3.8 billion, or 96 cents a diluted share, from $4.1 billion, or $1.02 a diluted share, a year earlier, but the numbers beat the company’s previously 6 lowered forecast. “Our performance relative to competitors was exceptionally strong in the fourth quarter and throughout the year,” said Mike Duke, president and ceo, during an earnings call. Wal-Mart has been generating buzz for the March 21 DVD release of the “Twilight” movie by launching “Twilight Shops” — designated sections of all locations — devoted to exclusive merchandise. OLD NAVY Buzz score: 24 Old Navy’s latest lineup of kitschy ads — TV, online and in-store — launched last month. Ads feature 12 custom-made mannequins called the “SuperModelquins.” And Old Navy’s newly designed weekly circular (seen left) spoofs celebrity fashion magazines. The headline on the launch is b circular reads, “YES, THEY’RE FAKE! These pretty mannequins may be plastic, but the FUNdamental sale is very very real!” Glenn Murphy, or C / chairman and ceo of parent Gap Inc., said on a conference call last week: “There’s some light at the end of the tunnel [for Old Navy], despite y 7 horrific January [sales.]” He said the chain has a better balance between seasonal basics and fashion, and its value message is clearer: “It’s eann F positioned as fun fashion for all. It is starting to get better, but still has a very long way to go.” ajlah

N MACY’S

by Buzz score: 19.5 * Despite falling income and revenues and a major restructuring, Macy’s says it’s performing better than its rivals. Last week, the department store sears said fourth-quarter profits fell 58.7 percent to $310 million, or 73 cents a diluted share, from $750 million, or $1.74, a year ago. Revenues dropped is; b 7.7 percent to $7.93 billion from $8.59 billion. Still, Macy’s claimed a market share victory. “We beat every single competitor you could probably or C 8 name,” Terry Lundgren, Macy’s Inc. chairman, ceo and president, said. “No apparel-based department store was near us.” While striving to reduce expenses, Macy’s is advancing its “My Macy’s” strategy nationally, which is geared to tailor merchandise on a local basis. Bentall/ SEARS

leanor Buzz score: 19.5 E

by In his annual letter to shareholders last week, Sears Holdings Corp.’s chairman Edward Lampert criticized both Sears’ and Kmart’s apparel

’s * y businesses. For the three months ended Jan. 31, the owner of Sears and Kmart reported net income fell 55.4 percent to $190 million, or $1.55 a diluted share, from $426 million, or $3.17 a share, in the comparable quarter a year ago. Lampert did highlight brighter points in the 8,525-word mac

es; letter, noting, “The decline in profit has been a source of concern, but we remain highly profitable with overall adjusted EBITDA [earnings before g 9 interest, taxes, depreciation and amortization] for the year in excess of $1.6 billion.” Sears reported lower but better-than-expected fourth-quarter ma I

y results and said it would close another 24 stores. J. CREW aedle/Gett Buzz score: 15.4 R

oe First Lady Michelle Obama generated attention for this New York-based retailer when she chose a J. Crew cardigan as part of her wardrobe for a J

by spread in the March issue of Vogue. She also wore J. Crew on “The Tonight Show” last year, and her daughters were wearing the brand’s Crewcuts line at the inauguration. In addition, ABC’s “Good Morning America” jumped onto the J. Crew bandwagon last month when viewers selected a J. 10 Crew gown for anchorwoman Robin Roberts to wear to the Oscars. But J. Crew has not been immune to the recession. The company last month et Photo

g eliminated 95 positions and suspended 401(k) matching contributions and merit-based wage increases for the entire workforce through 2009. ar T source: YouGovPolimetrix’s BrandIndex, based in Palo Alto, CAlif., and new york; the brand research firm tracks over 1,000 consumer brands; data was tallied through feb. 24; *Indicates a tie; the brand polled over 800 women ages 18-34 for this study; all retailers in this ranking were classified as “major retail brands” by brandindex 18 WWD, THURSDAY, MARCH 5, 2009 WWD.COM Mission Skincare Fetes Williams, MEMO PAD CLEARING THINGS UP — OR NOT: Bauer Media’s newly writing a survival guide,” she said of her blog. Instead, relaunched Pop magazine named a starry editorial she reflects on her emotional discoveries and trials, such Taps Pro Golfer as Spokesman board last week, whose members include Alice as digesting the plethora of advice from peers — “If one Two months after signing Serena Williams as Rawsthorn, Julia Restoin-Roitfeld and Peter Saville. But more person tells me I should ‘take some time to think a spokeswoman, Mission Skincare has said it has signed pro there seems to be some confusion over exactly who’s about what I want next,’ I think I’ll scream. Again,” she golfer Sergio Garcia as spokesman. on the team and what their roles will be. wrote in her third post. While the tone of her blog steers The Garcia announcement came Tuesday night, after One person the group won’t include is Daphne clear from bitterness against her former employer, Nelson Williams was introduced to the press at an event at Manhattan’s Guinness, despite Pop editorial director Ashley Heath’s admits that unemployment does at times stir some Philippe restaurant. earlier claims she’d be on the board. “While I have emotions. “While I have been luckier than some people Mission is fronted by multiple athletes who also have equity admired the work of the editorial team at Pop for some and have had some interest in my work, it’s really day- stakes in the brand. time, it was not correct to say that I had agreed to be to-day. My mood is like the weather in San Francisco, Josh Shaw, Mission’s founder, noted that Garcia will initially on the editorial board,” Guinness said. “While it was one minute it’s great, the next it’s horrible,” she said. help develop a lip balm and then represent a body product set flattering to have been asked, I do not want to be so Nevertheless, she has surprised herself by her own to launch in the fourth quarter. closely associated with one magazine. I am very fond of resilience. “I didn’t think I was going to fall apart, but At the event, Williams, who had just Ashley and there is every possibility that we will work I’ve been in a more philosophical mood than I thought I come off winning the Billy Jean King Cup on a project at some point in the future.” would be.” Nelson plans on posting twice a week and will at Madison Square Garden on Monday As for Heath, he said of Guinness, “She wants to be continue the blog for three months. — Stephanie D. Smith night, talked about developing a pome- seen as media neutral, and I respect Daphne’s wishes granate lip balm for Mission Skincare. on that. The important thing is Daphne feels she can ON SECOND THOUGHT: This week, Vogue executive “Pomegranate was my idea,” she said, contribute to the magazine going forward in a free and beauty director Toria Garrett was due to join In Style as “because it’s an antioxidant and people adventurous manner.” advertising director, beauty and lifestyle. But just when are crazy about it now.” There also seems to be some confusion about another Vogue colleague, Connie Anne Phillips, signed on Discussing her role at Mission in an Olympia Scarry’s role. Scarry told WWD last week that as publisher, Garrett returned to Condé Nast. Garrett was interview after the event, she said, “It she would be artistic director. Not so, according to appointed advertising director at Vogue, an expanded means a lot because Mission is great skin Heath, who said her role will be announced along with role that gives her oversight of Vogue’s beauty clients and care but beyond that, we do a lot of char- the rest of the magazine’s creative team. non-endemic business, and was hired back by associate ity work.” Heath stressed the group won’t be actually running publisher Tim O’Connor. She first joined Vogue in 2005 as The brand, which is slated to reach 10,000 the magazine, adding he plans to reveal the full beauty marketing director; she also held various top-level U.S. doors this spring, donates 10 percent of editorial team in London after the Paris shows. “The marketing positions at Calvin Klein and L’Oréal. — S.D.S. all revenues to charities chosen by the mul- editorial board is very important, but it’s not the tiple athletes, according to executives. masthead. I think there’s been some confusion over KEEPING MUM: Kelly Killoren Bensimon has been a Serena Williams Clad in a champagne-colored Yves that,” he said. “The concept of the editorial board is a familiar face in fashion circles for years, but she’s Saint Laurent dress and YSL pumps, Williams noted she has group of collaborative friends or trustees who constantly becoming more of a household name now, on Bravo’s learned much about beauty products after representing Avon talk through and enhance ideas the magazine is “The Real Housewives of New York City.” She finished with sister Venus about eight years ago and then serving as considering covering. [They’re like] the guardians of our taping the reality show late last year, and now is on to guest creative director of The Estée Lauder Cos. Inc.’s Flirt Pop universe, and therefore of Pop the magazine.” Do new things — including a turn as stylist, consultant brand several years ago. they get superhero costumes? — Nina Jones and model for the new Saks Fifth Avenue catalogue. She said she believes the most important beauty product On Wednesday, she invited friends including Isabel one can wear is sunscreen, and touted Mission’s multiple SPF BLOGGING BACK: Sara Nelson, the editor in chief of Dupre and Ivan Bart of IMG Models to lunch at Saks to products. Publishers Weekly until she was laid off in February, fete her new partnership. Dupre, who formerly was at She also talked about her fashion and accessories line that has continued to write about the book business for The Elle, is now styling for In Style, while Bart, who works is slated to launch on HSN at the end of April. Aside from ten- Daily Beast and TheWrap.com since her departure. But with Gisele Bündchen, was peppered with questions nis, Williams also mentioned her own fashion skills. the editor is taking a more personal approach in her new about the supermodel’s recent nuptials. “They are the “I went to the Art Institute in Ft. Lauderdale and worked on Reinvention Diary for More.com. The blog is where Nelson perfect couple,” he said of Bündchen and New England fashion design, so I know how to sew. My [YSL] dress broke and will discuss the challenge of both finding a new job and Patriots quarterback Tom Brady. “Other than that, you’re I sewed it back together!” managing her newfound free time. “I’m not interested in not going to get anything else from me.” — Amy Wicks — Matthew W. Evans BEAUTY BEAT Adidas Net Profits Rise in Fourth Quarter Helen of Troy Buys Infusium 23 By Ellen Groves Helen of Troy has acquired hair care brand Infusium 23 from Procter & Gamble Co. for an undisclosed sum, the firm an- PARIS — Thanks to lower marketing expenses and nounced Wednesday. a lower tax rate, Adidas AG said fourth-quarter The transaction is expected to close by March 31. net profits rose 151 percent, to 54 million euros, or Infusium 23 will be integrated into the El Paso-based com- $71.2 million, in the quarter. pany’s Idelle Labs division, which also houses the Ogilvie, The world’s second-largest sporting goods maker Vitalis, Final Net, Condition 3-in-1 and Ammens brands. after Nike Inc. met its full-year 2008 sales and prof- Helen of Troy is best known for its wide range of branded its targets, but warned sales and profits would de- heating appliances and brushes under the licensed trade- cline this year. marks of Revlon, Vidal Sassoon and Tigi. P&G became owner Chairman and chief executive Herbert Hainer said of Infusium 23 as part of its acquisition of Clairol in 2001. 2008 “was a great year, in which we delivered strongly Over the past several years, Infusium 23, which has a con- and prepared all our brands for even better perfor- ditioning and treatment positioning, made strides in upgrad- mance going forward.” Looking forward, he said: ing its formulations and packaging. Gerald J. Rubin, chairman, “Consumers will spend less. And that will have chief executive officer and president of Helen of Troy, said he a bearing on virtually all consumer goods expects Infusium to generate $40 million in sales on an annual- companies and retailers.” Reebok’s latest ized basis. In the quarter, strong growth at the Adidas collaboration with — Andrea Nagel Adidas brand offset declines at both chairman Cirque du Soleil. Reebok and TaylorMade-Adidas Golf and ceo Symrise ’08 Net Income Drops 7 Percent to lift group sales 6 percent to 2.57 Herbert ing markets, rising raw material and BERLIN — Hit by the negative impact of the financial crisis on billion euros, or $3.39 billion. Dollar Hainer. labor costs would impact its 2009 per- customer orders and an increase in the cost of raw materials, figures have been converted from formance. The company is forecasting a German fragrance and flavors maker Symrise reported its full- euros at average exchange rates. low- to midsingle-digit sales decline on year 2008 net income decreased by 7 percent to 90.4 million Clocking up its eighth year of dou- a currency-neutral basis. It also expects euros, or $132.9 million at average exchange. ble-digit earnings growth, the group’s operating margin and earnings per share Citing the market’s current volatility, the Holzminden- full-year net profits beat forecasts to to decline this year. and Frankfurt-based company stopped short of giving full- grow 16 percent to 642 million euros, or Reflecting the tougher climate, Reebok’s year 2009 profit projections in its annual report, which was $944.6 million. That showing came on full- order backlogs at yearend were down 17 percent published Wednesday. While Symrise predicted the first half year sales that rose 5 percent to 10.79 billion euros, while backlogs for Adidas were down 6 percent. of the year will be weaker than the same period in 2008, for or $15.89 billion. Apart from North America, all re- Hainer said the group will take a two-fold strate- the year as a whole, the firm said it expects to grow faster gions generated double-digit growth. gy to tackle the current downturn: Controlling costs than the market. Boosted by an action-packed sporting calendar, while at the same time investing in developing its The company, which said it outperformed the market in 2008, Adidas, which celebrates its 60th anniversary this own retail doors and signing partnerships. “We posted sales up 3.6 percent at current exchange, or up 6.5 per- year, grew sales 10 percent to 7.82 billion euros, or will not cost-cut our way out of this crisis,” Hainer cent in local currencies, last year to 1.32 billion euros, or $1.94 $11.5 billion; Tailormade-Adidas Golf inched up 1 insisted Wednesday. “I believe the real winners of billion. Earnings before interest, taxes, depreciation and amor- percent to 812 million euros, or $1.19 billion, while this crisis will be the ones who remain consistent tization decreased by 4 percent, to 262.5 million euro, or $385.9 Reebok continued its downward trend. The brand with their long-term strategies.” million. Symrise’s EBITDA margin came in at 19.9 percent. posted an 8 percent sales decline to 2.15 billion He added the group will continue to prioritize its The firm’s Scent & Care business, which accounts for more euros, or $3.16 billion. own retail network with plans to generate 35 percent than half of its revenues, registered a 0.1 percent uptick at The company said Reebok has now cleared out of revenues through its own stores, shop-in-shops and current exchange, or grew by 3 percent in local currencies, to most of its old lower-priced stock and hopes upcom- e-commerce outlets in the coming years, from 18 per- 671.8 million euros, or $987.5 million. ing product innovations, such as the partnership cent in 2008. Next week, Adidas will unveil a Paris “Despite the challenging business environment, we consider with Cirque du Soleil announced last week, will help boutique for its new fashion-orientated SLVR label our core business to be as stable and robust as ever,” stated Dr. drive the brand to maintain sales levels in 2009. after a New York boutique opened in February. Gerold Linzbach, chief executive officer of Symrise. However, Hainer warned that ongoing discounting Adidas share price closed up 0.31 percent on the — Susan Stone in mature markets plus slowing growth rates in emerg- Frankfurt bourse to 23 euros, or $28.90. WWD, THURSDAY, MARCH 5, 2009 19 WWD.COM Claiborne Posts 4th-Quarter Loss of $828.9M Continued from page one 2008,” according to chief financial officer Andrew Warren. The company said it has because market capitalization declined below book value as the company’s cut 2,700 positions and realized $450 million in cost savings through restructuring shares declined. and, for 2009, is further reducing capital expenditures to $60 million to $70 million to For the three months ended Jan. 3, the company nearly doubled its loss to $8.85 a increase liquidity and pay down debt. diluted share, compared with a loss of $4.55 a share, or $435.7 million, in the fourth “I wouldn’t say that there is a lot of fat left,” said McComb. “But I would say that quarter last year. definitely there are additional cost places that we can and will go, and I am not even Sales in the quarter fell 22 percent to $911.2 million from $1.17 billion, hurt by so sure that we’re going to wait to trigger based on a softening environment.” steep losses in the partnered brands division as well as in Mexx, which the company If the company’s margin expectations decline, McComb said most areas that have broke into a third category — “international-based direct brands” — for the first time already had cuts could sustain further reductions, but that Mexx would be a particu- to separate the troubled Amsterdam-based retailer from the better performing direct lar target. Mexx sales dropped 29 percent to $238 million, or 19 percent excluding brands Juicy Couture, Lucky Brand and Kate Spade. exchange rate impact. McComb said he is close to finding a new ceo for Mexx. Partnered brands sales dropped 38 percent to $322 million, hurt by a $94 million I wouldn’t say that decrease from discontinued “ brands, as well as weak sales there is a lot of fat from its brands’ retail partners in the fourth quarter. left. But I would say Despite the economy, fourth- quarter sales for direct brands that definitely there still climbed 11 percent to $350 million, or 18 percent exclud- are additional cost ing the impact of licensing fra- grances in the second quarter places that we can of 2008. Juicy sales were $172 mil- and will go. lion, a 2 percent rise or, ex- — William” L. McComb, cluding fragrance licensing, 17 percent growth. Lucky sales Liz Claiborne Inc. were $138 million, a 21 percent increase, or 17 percent exclud- ing fragrance. Kate Spade sales climbed 28 percent to $40 million. Brights spots within the direct brands port- folio have included the new Juicy intimates line, the new Kate Spade jewelry line, Lucky accessories and the new Juicy flagship on Fifth Avenue in New York, according to the company. But Claiborne is phasing out the Juicy men’s business to use the space in its re- tail stores to grow the intimates and chil- dren’s wear segments. The company is also readjusting its Liz Claiborne’s new shop-in-shop in Macy’s Herald Square, which opened this week. price mix to the economy. “We also have rethought opening price Excluding streamlining expenses, goodwill impairment charges and point and their penetration in our lines,” brands that have been licensed or exited, the adjusted loss from continuing said McComb. “On all the brands, we’re operations was 4 cents a share, beating the loss of 5 cents a share expected rounding down price points that go beyond by analysts polled by Yahoo Finance. In January, the company attempted to new consumer price sensitivities, like $225 manage expectations, saying its quarterly loss could run as high as 15 cents a to $195, as an example.” share. The company reported positive sales on its re- For fiscal year 2008, Claiborne saw a loss of $951.8 million, or $10.17 a diluted launched Liz Claiborne New York line under Isaac share, compared with a 2007 loss of $372.8 million, or $3.74. Annual revenues fell 10 Mizrahi, with product starting to hit stores last month. percent to $3.98 billion from $4.44 billion. The brand opened a renovated shop-in-shop in Macy’s Due to economic uncertainty, Claiborne is “dramatically reducing this reinvest- Herald Square this week, and is launching e-commerce on the full collection in ment in 2009 as we plan to open approximately 12 stores versus the 139 stores in May on lizclaiborne.com. Labor Lobbying Revved Up Macy’s Raises $800K for ‘Go Red’ One day while in Spain, STEPHANIE Oster thought she was experiencing indiges- tion. “It became excruciatingly painful,” said For Union Organizing Bill Oster, who was 39 at the time. She actually suf- By Kristi Ellis fered a heart attack. Four years later, she suf- fered another one. “In my mind it was a freak WASHINGTON — Labor groups ramped up the push on Wednesday for a bill occurrence, but it wasn’t. I had heart disease,” that would make it easier for workers to organize unions, seeking to lever- she said. age a new study that found one in four workers was illegally fired during Oster told her tale at a Macy’s-sponsored union campaigns. luncheon Friday at the Waldorf-Astoria, which The Center for Economic and Policy Research, a liberal think tank raised $800,000 for the “Go Red” campaign to here, said 26 percent of union election campaigns from 2001 through 2007 fight heart disease. had illegal firings, compared with about 16 percent in the late Nineties. The event featured a performance by the The Employee Free Choice Act, which would make it easier to organize Total Praise Ensemble of the Abyssinian by allowing a majority of workers to sign a card in support of a union, is Baptist Church and culminated with moving opposed by most of the business community and could be a significant leg- testimonials from a dozen women who have islative test for President Obama. He cosponsored the bill in the Senate battled heart disease. and said during the campaign that he would enact it if elected president. In addition to Macy’s Inc., sponsors in- But Obama indicated in January to the Washington Post’s editorial board cluded Merck & Co. Inc., WNBC, Telemundo that he would be open to a compromise. Communications Group Inc., Shering-Plough, The bill would also stiffen penalties against employers that illegally Geoffrey Beene and Jones Apparel Group Inc. fire or discriminate against workers for their union activity during an Macy’s has raised awareness and funds — over Dr. Nieca Goldberg; Dr. Yu Chen, associate professor, organizing or contract drive. $19 million since first getting involved in 2004 NYU School of Medicine, and Jane Chestnutt. “We need the Employee Free Choice Act to fix a broken system that — through promotions, events and special mer- gives corporations far too much power” in union organizing drives, said chandise. “Heart disease is the number-one killer of women. No one knows this,” said Martine Mary Beth Maxwell, executive director for American Rights At Work. Reardon, executive vice president of Macy’s corporate marketing. Business opponents said the proposal would eliminate management’s The two founders of the luncheon — Jane Chesnutt, editor in chief of Woman’s Day, and Dr. ability to argue against unionization and abolish secret ballot elections. Nieca Goldberg, clinical associate professor of medicine at NYU Women’s Heart Program — Executives also oppose the provision that gives control of a contract to a received the “Women with Heart” awards. Other speakers were Nicole Fischelis, vice presi- third-party arbitrator in the event of an impasse. dent and fashion director for Macy’s, among the event co-chairs with Reardon; Hoda Kotb, The legislation, which stalled in the Senate in 2007, is expected to co-anchor of the Fourth Hour of the “Today” show, and Darlene Rodriguez, co-anchor of the soon be reintroduced by Sen. Edward Kennedy (D., Mass.) and Rep. “Today” show. George Miller (D., Calif.). — David Moin 20 WWD, THURSDAY, MARCH 5, 2009 WWD.COM Dallas Market Preview DMC Serves Up All-Inclusive Plan By Holly Haber The Dallas Market Center is touting one-stop shopping at its fall market March 12 to 15. The annual market opens the doors on 1 million square feet of fashion and accessory exhibits, with hundreds of gift, home and body care showrooms in the World Trade Center and adja- cent Trade Mart, noted Cindy Morris, chief operating officer of the DMC. The complex comprises some 5 million square feet in all. “Now more than ever, it is important for buyers to diversify and strengthen their merchandise mix,” Morris asserted. “Our March market offers a complete marketplace in mid-America, the most cost-efficient travel option compared with other shows, and new resources and educational opportunities.” Recaps of fall trends will be presented by Gregor Simmons, owner of the namesake buying office, who will display examples of fashions available in Dallas during her rapid-fire seminars on contemporary, bridge and designer styles. In addition, the DMC will also feature edited informal mod- eling during its inaugural “First Look” cocktail party Thursday evening, with a performance by kitschy girl band Rotel and the Hot Tomatoes. Donald McEvoy, whose eponymous showroom specializes in gifts and decorative items but also carries accessories including jewelry by Vanessa Swarovski Piedra, explained March is one of the smaller gift shows, but is important for holiday deliveries for some vendors. “We are open and we get traffic from Prospect Denim is the [apparel] show when it’s not even a opening a showroom cross-over market,” he said. at the DMC. Several showrooms and plenty of la- bels will be new to FashionCenterDallas, which spans women’s, children’s, men’s, Apparel takes center stage at DMC. the SCENE juried contemporary and bridge show, bridal, the Southwest Shoe Expo, western wear and Temporaries on 12, which includes trendy value-priced Now more than ever, it is important for buyers to fashions, novelties and cowboy boots. “ “It’s been good over here,” said diversify and strengthen their merchandise mix. ­ Meredith Hite, a spokeswoman for the — Cindy Morris, Dallas Market” Center DMC. “People have been signing leases, and we’re hopeful.” Laundry by Shelli Segal will open a Precious Formals presents eye-catching glamour for prom, pageant and evening corporate showroom on the 15th floor as with colorful, sexy gowns accented with a bit of glitz. Both companies also make poufy Perry Ellis International continues to quinceañera styles. relaunch the brand as a flirty, feminine John Amato shows Maggie Sottero, and Sam Sales offers prom and formal wear. dress line. Laundry previously had a In addition, new Dallas company Prospect Denim will launch a corporate show- showroom on the atrium at the WTC, but room in the District One Five contemporary area. The company cuts about 30 styles of it closed in November 2007, a result of premium jeans in various rises for men and women and specializes in hand-washing faltering business. Laundry’s new show- and finishing. The jeans are made in El Paso, Tex., said Ava Carmichael, an owner room is located next to Lilly Pulitzer. and senior designer. “We brought back Shelli Segal’s de- “We have paint-splattered and destroyed [looks], and some that are pretty classic,” sign team, and she’s consulting,” noted she said. Jamie Brown, sales manager. New showrooms on the 13th floor include Yellow Box shoes and Behringer Four permanent showrooms will Accessories. open in the new bridal and prom area that opened in October on the 14th floor. With Among fashion lines new to the complex are Lesley Evers colorful “everyday” the addition of Allure Bridals, Precious Formals, John Amato and Sam Sales, the area dresses and skirts at Indigo Studio; Jon by Teri Jon bridge sportswear and ECO-ganik now features nine showrooms representing dozens of resources. contemporary sportswear in sustainable fabrics at Ritz Group; Sworn Virgins trendy Allure offers a full spectrum of elegant bridal looks from embroidered tulle and lace bamboo knits at Harry Metrik; Alex Woo’s celebrity-favored fine jewelry at Cook confections to slim styles for beach weddings, large sizes and bridesmaids’ dresses. Diamonds, and Calvin Klein Performance activewear at John C. Hirsch.

Hunt, 214- 637-5164. Friday, March 13 Market Calendar Show hours: 8:30 a.m. to 7 p.m. (Many showrooms open until at least 7 p.m.) Dallas Market Center Apparel, 9 a.m.: Fall trends in bridge and designer by Gregor Simmons, Accessories and Total Home and SCENE stage, 13th floor. 10 a.m.: Discovery tour of fashion on the 14th and 15th floors Gift Show March 12-15, World Trade with Rawlins Gilliland; meet at Kim Dawson Runway Cafe, 14th Center and Trade Mart. floor. Noon and 1 p.m.: Runway shows, Kim Dawson Runway Cafe, Daily Events: 14th floor. 8:30 a.m.: Hot breakfast, front and back skylights, 14th floor. 3 p.m.: Discovery tour of SCENE trends with Rawlins Gilliland; 9 a.m.: Market orientation tour, Room 156A. meet at front of SCENE, 13th floor. 9:30 a.m.: Breakfast, SCENE, a juried show of contemporary 5 p.m.: Cocktail parties in participating showrooms, 14th floor. and bridge, 13th floor. 5 to 7 p.m.: Western exhibitors cocktail party, suite 12-24, 12th 9:30 a.m. to 5:30 p.m.: Massages, 12th floor atrium. floor. 10 a.m.: KidsWorld brunch, eighth-floor atrium. 6 to 7 p.m.: Extended hours in participating showrooms.

Thursday, March 12 Saturday, March 14 Show hours: 8:30 a.m. to 6 p.m. Show hours: 8:30 a.m. to 6 p.m. 11 a.m.: Theater of Retail — Chris Hite, founder of Hite 10 a.m.: Discovery tour of best-selling gifts and decorative Advertising and Brand Consulting and former marketing The atrium at the World Trade Center. accessories with Rawlins Gilliland; meet at front escalators, director for Neiman Marcus’ InCircle loyalty program, offers tips Trade Mart. on advertising and marketing, room 9065. Noon and 1 p.m.: Runway shows, Kim Dawson Runway Cafe, 3 p.m.: Discovery tour of accessories with Rawlins Gilliland; 6:15 p.m.: First Look cocktail party with informal modeling of 14th floor. meet at Kim Dawson Runway Cafe, 14th floor. fall fashions and entertainment by Rotel and the Hot Tomatoes, 4 p.m.: Trends in SCENE contemporary and bridge fashion and Hall of Nations atrium, first floor. Sunday, March 15 accessories by Gregor Simmons of Gregor Simmons Buying 6:30 p.m.: Children’s fashion show and 7 p.m. dinner, Kim Show hours: 8:30 a.m. to 3 p.m. (Many showrooms open until Office, SCENE stage, 13th floor. Dawson Runway Cafe, 14th floor. For tickets contact Priscilla 6 p.m.) CORPORATE HEADQUARTERS COLLECTION CONRAD C 9320 St. Laurent Blvd. Suite 200 Montreal, QC H2N 1N7 Canada

Tel: 514.385.9599 Canada Toll-Free: 1.888.561.4416 US Toll-Free: 1.800.561.4416 [email protected] • conradc.com

NEW YORK SOUTHWEST Elizabeth Giebel Ray Rak 485–7th Ave. Suite 906 World Trade Center New York, NY 10018 Tel: 972.386.6298 Tel: 212.967.8181 NEW ENGLAND SOUTHEAST Reza Khoyi Jeffrey Schechter Tel: 781.376.0002 Atlanta Apparel Mart Tel: 404.577.4717 MID ATLANTIC Myron Kerbel MID-WEST Tel: 215.518.2350 Philip Kafoure Tel: 1.800.882.8337 WEST COAST Nancy Hopkins Hank Remboldt Tel: 1.800.929.1969 California Market Center Cell: 760.409.1874

COME VISIT US AT:

FASHION CENTER DALLAS World Trade Center Ray Rak, Showroom #15165 March 12-15, 2009

ATLANTA APPAREL MARKET Americasmart Jeffrey Schechter, Suite #11 S335A March 28-30, 2009 22 WWD, THURSDAY, MARCH 5, 2009 WWD.COM Dallas Market Preview marketing for Blue Star Land L P. Dallas Cowboys owner Jerry Jones and his children own and manage Blue Star. Retail Openings Bring Some Hope “We anticipate breaking ground in 2011 or ’12,” Devoto said. “We are aggressively taking letters of intent. By Holly Haber 80-acre mixed-use complex in Plano, said Robert Dozier, Everyone is taking a wait-and-see [attitude].” executive vice president. “We own the land. It’s just that North Texas is in recession, but it’s not as bad as most DESPITE THE RECESSIONARY CHILL OVER MOST we’re going to wait for the right time.” other places in the U.S., said Bernard Weinstein, director big mixed-use and retail centers that developers “We don’t anticipate any activity toward develop- of the Center for Economic Development and Research at planned for the Dallas area, three major properties ment for at least 12 months,” said Marc Sullivan, senior the University of North Texas. “This is not going to be a will open phases this year: Park Lane across from vice president at Icon Partners, the company behind happy year,” he noted. “We will continue to see job losses NorthPark Center and the joint Village at Allen and Midtown and the Shops at Mercer Crossing. “Retailers throughout much of this year. When the national economy Village at Fairview properties about 30 miles north of aren’t in the market, and now is not a great time to be rebounds, I am confident that Texas, and particularly the downtown Dallas. making deals with anybody. It’s best to let those things Dallas-Fort Worth area, will once again grow much faster “We’ll see about 3 million square feet of new space in sit and see how things shake out.” than the national norm. What’s more, just as we saw after Dallas this year,” said Herbert Weitzman, chairman and the recessions of the early Eighties and Nineties, we will chief executive officer of The Weitzman Group and Cencor see a new surge of people and business into North Texas.” Realty Services. “Most of this is in projects already under Meanwhile, unemployment has been rising, reaching way, such as Park Lane and the Village at Fairview. These 5.8 percent in the Dallas metro area in December and 6 projects all have strong anchors and are in areas of good percent statewide as the national rate hit 7.2 percent, residential density, so they should do fine.” according to the Texas Workforce Commission. Projects on hold that never broke ground include Village Still, retailers are setting up shop in the fast-growing 121, a mixed-use center in Plano; the Shops at Mercer exurb of Allen, where the area’s largest mixed-use project Crossing designer outlets in Farmers Branch; Prime Outlets is under construction. The Village at Allen and adjacent in Grand Prairie; the retail component of Vitruvian Park in Village at Fairview comprise 3 million square feet of space, Addison, and Midtown, a $1 billion mixed-use complex near including 2 million square feet of retail that is 66 percent Galleria Dallas, the developers reported. leased, said Gar Herring, president of MJ Herring Group. Plans have stalled to erect a mixed-use center Super Target, Petsmart and smaller stores will open in place of the landmark Texas Stadium, and the Sunday at the Village at Allen, where TJ Maxx, Dick’s city of Irving has leased the 77-acre site to the Texas Sporting Goods and four other big-box tenants opened Department of Transportation to stage roadway con- A rendering of the Park Lane development opening next month. last October. A Marriott Hotel and the Allen Event struction, with the option to relocate the DOT should a Bob Brvenik, president of Prime Retail, has also Center are slated for completion by fall. development opportunity arise. delayed building. “We have three announced new de- Across Stacy Road, the first phase of the Village at “There is no financing for new projects,” said Barry velopments and a number of others in our pipeline, Fairview will open Aug. 5 with Macy’s and J.C. Penney. Rosenberg, president of Steiner + Associates, which and, like everyone else, we extended them until we see Dillard’s broke ground in January. last spring backed out of co-developing the massive what’s happening in the economy,” he said. “Originally Park Lane, a $750 million mixed-use development with GloryPark complex in Arlington. “We’ve stopped all we looked at a fall ’09 opening for Grand Prairie. 650,000 square feet of retail facing NorthPark Center, of them, and we don’t think any of those types of proj- Realistically, it’s a late ’10 opening.” plans to open Nordstrom Rack, a flagship Children’s ects will start up for another two years. The general The Grand Prairie outlets are 50 percent leased, with Place, Lane Bryant, Cacique and Dick’s Sporting Goods thought is that tenants will be looking to expand in the tenants including Last Call, Off 5th, BCBG, Cole Haan by early April. October openings are on tap for a flag- fourth quarter of ’10. Relocations are a different story. and Dooney & Burke. In general, the pool of potential ship Whole Foods, Ulta cosmetics, Sports Club/LA and Specialty retailers want to be part of projects that are tenants is growing, Brvenik pointed out. Splitsville, an upscale bowling venue. regionally dominant. Most of the [relocation] deals we The Gates of Prosper, a 2.8-million-square-foot life- The center’s retail space is 70 to 75 percent leased, are doing are for 2010.” style center, won’t begin construction until city and said Michelle Davis, director of marketing at developer Lincoln Property Co. is waiting to see which retail- county agencies widen Preston Road between Frisco and Harvest Partners. A planned boutique hotel, however, was ers survive before turning a shovel for Village 121, an Prosper, said Dena Compton Devoto, director of sales and delayed due to tight credit.

SCENEWHAT’S DOING IN DALLAS. LIGHT TOUCH: Olafur Eliasson, the artist who created the waterfalls in New York last summer, experiments with different phenomena in “Take Your Time” at the Dallas Museum of Art, showing through March 22. These works manipulate light, color, mist and air flow to tease the brain in unexpected Olafur ways. Geometric color projections in Eliasson in one gallery stimulate visions of hues front of his that are not on screen, while another yellow work. room vibrates with pure yellow light that heightens perception of detail. “Your surroundings are a result of your engagement,” Eliasson said during a tour of the exhibit. “It’s the reverse of a shopping mall, where everything is geared to tell you to buy things.”

IN THE ’HOOD: Neighborhood Services may be humbly named, but every night the bar and grill vibrates with activity. In his first solo venture, chef Nick Badovinus has kept it simple, offering lush takes on classic dishes in a cozy setting. “It’s firmly rooted in tradition with one step into modernity,” said Badovinus, who is well-regarded as the former chef and partner at Consilient Restaurants and its hottest property, Hibiscus. Among the specialities at Neighborhood Services are wedge and waldorf salads, a rich short rib, pan-roasted halibut and a decadent gourmet take on the ever-popular Ding Dong. The joint, which takes its name from a city permit application, also serves a top-notch burger and creative cocktails with names like “Beauty School Dropout.” The old-school vibe is clearly visible on the wait staff, who dart about in cream cricket cardigans, preppy striped ties in Gryffindor hues and long white aprons over jeans.

PUCK’S PICK: One way to escape the recession’s gloom is to head for Reunion Tower and glide up its glass elevator into the geodesic dome that defines the city’s skyline. At Five Sixty, which opened last month, Wolfgang Puck has crafted an elegant restaurant worthy of its panoramic view of skyscrapers and the ocean of lights on the prairie Five Sixty below. The sleek, warm wood and glass decor in the rotating dining Barry Zucker & Associates | Suite 15963 | 281 496 3538 room puts the focus squarely on the cuisine, the company and the view. Sushi by master chef Hiroyuki Fujino is standout, as are such Puck signatures as the Lundström is owned and operated by grilled lamb with Hunan eggplant. Sommelier D’Lynn Proctor is a skillful guide through the 400-plus wines. The only pinch of reality is the bill. — H.H.

24 WWD, THURSDAY, MARCH 5, 2009

Dallas Market Preview

A look from Multiples, a division Sharon Young’s Strategy for Success of Sharon Young. By Holly Haber last fall, when Sharon Young purchased Jerell llc and its Multiples sportswear line from haggar, StackS of boxeS loaded with SportSwear Vierling bought back the 50-year-old company from overseas arrive daily at Sharon Young, one of he and Jerry frankel had sold to haggar in 1999. the few veteran dallas apparel companies to emerge though Vierling continued to manage it under stronger from the industry’s contraction over the haggar with klapholz, they and other Jerell veter- last 15 years. ans were dismissed in february 2006 after private “it’s amazing how much stuff comes in here every equity firms took over haggar. within days, Vierling day,” marveled ed Vierling, chairman and chief exec- and klapholz were hunting for turnaround pros- utive, during a tour of the company’s 40,000 square- pects, and in May 2006 they invested in Young. foot warehouse and headquarters on the northeast “we’ve been able to get in touch with companies edge of the city. “You can see we’re crowded.” that are struggling and feed into our core strengths,” while other fashion firms are slimming to survive Vierling said. “we always worked through econom- the economic and retail downturn, Sharon Young is ic downturns, and we knew we wanted Jerell back growing. this month, it will spread to another 10,000 here. we brought in the designer, John bourgeois, as feet of warehouse space to support sales expected a partner, and brought 14 people over from haggar. to eclipse $30 million for the fiscal year beginning we got the cream.” in april. Vierling has high hopes for continued growth of three years ago, when Vierling bought a stake Multiples, an item-driven line that retails for less in the company with business partner and sales than $100. it is sold to dillard’s, Nordstrom and Von manager Sam klapholz, sales were $7 million and Maur, the army and air force exchange Service and the firm was struggling. but they got it on track by about 800 specialty stores. Multiples offers fashion moving production to china and india to cut costs flair at a price, such as a plush acrylic fur swing jack- and improving computer and processing systems for et with a balloon sleeve, unlined jackets with bound greater efficiency. seams and silk blend sweaters with buckle details. “right now it is such a dangerous environment, “i want customers to have the look of a better we are just putting our heads down and keeping garment, and we’re constantly fine-tuning it,” noted going,” said Vierling, who worked for decades at bourgeois. “i look at sales every morning to see Jerell and haggar clothing co. before investing in how the customer is voting. She likes color, prints Sharon Young, whose founder continues to design and embellishment. i try to make sure every top or her namesake label. “it’s going great right now.” jacket goes with a lot of things — with jeans, with the company markets to a broad range of women black pants. we’re building a wardrobe. the beauty over age 30 who like embellished sportswear and of Multiples is that each item is designed to stand pay $60 to $220 for novelty jackets and coordinates. on its own.” besides a mushrooming private label business with Vierling attributes part of the firm’s success to coldwater creek, most of the firms growth has been the fact that the designers of each of the three divi- through acquisitions. the company snapped up city sions are partners in their respective brands. Girl by Nancy bolen in august 2006, reviving the “when you have an ownership position in some- dormant label with bolen as partner and designer, thing you think differently,” he reflected. “it’s yours. mining its trove of graphic artwork and axing un- i always tell my staff, treat it like it’s your own money profitable divisions. and you’ll make the right decision.” WWD, THURSDAY, MARCH 5, 2009 25 WWD.COM Dallas Market Preview Corey Lynn Calter to Headline at FIG Corey Lynn CaLter is texas- Mers continued. “We are aware of the in- bound — finally. dustry’s climate, but we are also aware “this is my first trip to texas, which of the strength of our focus in this indus- i’m ashamed and embarrassed about,” tr y. our tenants are producing beautiful said the bubbly Calter, who is based in product, with a notable emergence in our Los angeles and whose contemporary kids lines.” dresses and sportswear have been shown More than 17 contemporary chil- in Dallas for almost her entire 13 years dren’s lines are at FiG, including Juicy in business. Fashion industry Gallery Baby and Couture Girl, Petit Joie, Joe’s tapped Calter as guest designer at its fall Jeans Kids, Little ella by ella Moss and market, March 12 to 14. splendid Girl. Calter, who specializes in feminine, fitted dresses, blouses and skirts in exclu- sive prints, has added sweaters in wool, You come here to buy cashmere and silk blends for fall. one fa- “ vorite is a slouchy cowl-neck tunic with a something that makes ruched sleeve. “i do not want to be held captive by you feel happy and what’s going on with the economy,” Calter declared. “We need to continually move unique and on trend. forward. everybody would probably say we — Corey Lynn ” Calter are crazy to add sweaters now. But it adds a layer to my business that is missing…and The SHOP i personally am a big sweater fan.” Lounge at FIG. that’s not to say Calter hasn’t made “it’s a market that i really believe in,” adjustments. noticing some buyers don’t she added. “our showroom — Laurie even want to look at dresses wholesaling trol over quality, consistency and sizing. will introduce her collection in the sHoP Hasson and her team — have really above $78, she shaved profit margins on Calter said business has grown every year juried temporary show. Her line features planted their feet there. the territory fall, which wholesales from $59 to $139. and is up slightly so far this year. crushed and textured fabrics and ranges has been very loyal to me, and the buyers she’s also developing a lower-priced other new lines at FiG include Geren from mesh leggings to tailored dresses do well with the collection.” label for spring 2010. Ford’s streamlined sportswear, Burning and jackets. Calter will be feted at FiG’s thursday Her June delivery offers an asian- torch detailed fashions in recycled elsewhere, Kaitlin & Co. will replace cocktail hour at 5:30 p.m. in the lobby inspired group, while July features horse- fabrics, Beyond Vintage retro-inspired the Valerie + Co. showroom, offering the and park. cameo prints and oversize chains. “this is looks and Kai-aakman, an urban casual same resources plus Purestyle Girlfriends “Corey Lynn’s designs are hugely an optimistic collection,” she said. “you young designer collection from Korea, shapewear. Kaitlin Moore, who worked for popular with our buyers, and it will be come here to buy something that makes all at Findings; eco-friendly Matt & nat Valerie Cubbage and bought the showroom wonderful for these stores to get to meet you feel happy and unique and on trend. bags at sHoP, and spun organic clothing from her, said, “now is a good time to start her and view selections from her fall line People want a little spark of pleasure.” and Love shop printed silk scarves at building the business and better relation- during the cocktail party,” said shelli More than 80 percent of her production Federico Mariel. ships with the customers that we have. i Mers, FiG director. is sewn in Los angeles, which she consid- Designer Laura McGrew, who sells think it can only get better. it has to.” “FiG is hopeful about March market,” ers an advantage that affords greater con- mainly through her shop in Kansas City, — H.H. 26 WWD, thursday, march 5, 2009 WWD.COM Financial For full daily stock changes, see WWD.com.

Retail Shares See First Gains of Week 10 Best Performers By Arnold J. Karr Inc., down 7 percent to $6.15. Although Brown Shoe Co., DAILY COMPANIES P/E Volume Amt Retail shares excelled as Maidenform Brands Inc. and a number Wall Street on Wednesday finally man- of other firms reported quarterly results High Low Last %Change aged to reclaim some of the ground lost on Wednesday that exceeded modest ex- earlier in the week. pectations, the upward movement of re- The end of a weeklong slump saw the tail shares didn’t appear to be driven by 1.86 1.52 Caché (CACH) 7.8 101669 1.85 +24.16 S&P Retail Index pull off a 6.26 point, any specific news but rather by the be- or 2.7 percent, gain to end the day at lief that the market’s downward move- 0.24 0.20 Sport-Haley (SPOR) - 29100 0.24 +19.05 241.55 after two straight down sessions. ment had perhaps put it below levels The day’s close put it less than 1 point suggested by performance metrics. ahead of its 241.05 finish on While many U.S. re- 1.98 1.70 American Apparel (APP) 4.9 279055 1.98 +16.47 Monday, but more than 10 tailers will report points below the 251.79 February sales results 13.30 11.23 Citi Trends (CTRN) 10.0 221891 12.82 +15.91 level of last Friday. today, the Federal The percentage gain at Reserve’s Beige Book, 0.55 0.47 Unifi (UFI) - 463162 0.54 +14.89 retail exceeded those for released in Washington the Dow Jones Industrial wwD on Wednesday, pro- 0.21 0.15 Frederick’s of Hollywood (FOH) - 45409 0.16 +14.29 Average, S&P 500 and vided further evidence Nasdaq Composite, all of that overall consumer 13.50 12.07 Cherokee (CHKE) 7.2 74246 13.40 +12.42 which broke five-day los- INDEX spending was lack- ing streaks. Even if short- luster in January and lived, the return of the February despite some 4.55 4.06 Perry Ellis (PERY) 3.3 116704 4.52 +12.16 bulls on Wednesday put Composite regional bright spots, the major indices back including some in ap- 0.30 0.27 Casual Male (CMRG) - 77963 0.29 +11.54 above their recent lows. 613.14 parel, after a grueling The Dow was up holiday season. 5.74 5.06 Movado (MOV) 2.9 142308 5.59 +10.91 149.82 points, or 2.2 per- The report cited a cent, to close at 6,875.84, “slight firming” in many reclaiming the 6,800 districts, “particularly mark, but falling short compared with holiday- of the 6,900 and 7,000 season sales that were 10 Worst Performers barriers surrendered on very disappointing.” Monday. The S&P 500 Richmond, St. Louis DAILY COMPANIES P/E Volume Amt picked up 16.54, or 2.4 and Philadelphia all percent, to retake the reported that apparel High Low Last %Change ground of 700 and close +16.99 sales had picked up at 712.87. The Nasdaq since the holidays. A moved up 32.73, or 2.5 manager at a sporting 0.23 0.20 Birks & Mayors (BMJ) 0.3 3069 0.20 -20.00 percent, to end the day at goods store in Richmond 1,353.74. said severe winter weather boosted Strong retail performers for the apparel sales, but total sales volume 1.45 1.45 Tandy Brands (TBAC) - 174 1.45 -15.01 day included Caché Inc., which, on declined. the first day after reporting a larger- Merchants in Philadelphia said sales 2.80 2.32 Liz Claiborne (LIZ) - 1817477 2.50 -11.35 than-expected fourth-quarter loss, of basic apparel and household items saw its shares bound 24.2 percent to have been steady or rising, but other 0.72 0.59 Parlux Fragrances (PARL) - 1194217 0.65 -7.14 $1.85; American Apparel Inc., up 16.5 sales were weak. percent to $1.98; Citi Trends Inc., “The consumer is focused on the 6.99 6.08 Gildan Activewear (GIL) 6.6 2498134 6.15 -6.96 15.9 percent to $12.82; Frederick’s of basics, and sales of big ticket items are Hollywood Group Inc., 14.3 percent still falling,” said one Philadelphia re- 2.51 2.20 CCA (CAW) 4.2 55710 2.22 -6.72 to 16 cents; Tween Brands Inc., 9.4 tailer. Despite declining sales of big- percent to $1.17, and Dress Barn Inc., ticket purchases, sales of some apparel 9.2 percent. items were up in the region. Sources 2.13 1.70 Developers Diversified (DDR) - 9571157 1.82 -6.19 Among broadline retailers, J.C. in Philadelphia said they thought con- Penney Co. Inc. was up 8.2 percent to sumer spending could recover if em- 11.05 9.32 Weingarten (WRI) 7.6 3159421 9.75 -5.98 $15.34, Nordstrom Inc. up 5.3 percent to ployment conditions improved. Apparel $13.59, and Dillard’s Inc. up 3.9 percent items were also strong sellers in St. 2.36 2.02 Saks (SKS) - 3416499 2.12 -5.78 to $3.47. Saks Inc. was off 5.8 percent to Louis, according to reports, despite a $2.12 but still well above the 52-week general decline. 23.07 21.70 Gymboree (GYMB) 7.7 2710684 22.66 -5.70 low of $1.50 hit on Feb. 20. San Francisco said sales were “ane- Among the few decliners were Liz mic” overall while New York said the Claiborne Inc., down 11.4 percent to “steep” pace of declines in December * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on $2.50 after reporting a slightly lower loss slowed in January and February. the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss than expected, and Gildan Activewear — With contributions from Liza Casabona francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. UNITE HERE Suit Directed at Union Leader Maidenform Sees Net Drop, Beats Expectations By Matthew Lynch remaining unified. By Alexandra Steigrad in international sales to $9.1 million. Wilhelm opposes the break-up ef- Sales to department stores and national Officers of UNITE HERE, who fort that is being spearheaded by Flagging sales, pared margins chains dropped 7.9 percent to $46.6 mil- are suing to dissolve the merger that Bruce Raynor, general president of and restructuring charges helped shrink lion while revenue at mass merchants created the union, have filed a lawsuit UNITE HERE, who contends Wilhelm Maidenform Brands Inc.’s fourth-quarter fell 2.8 percent to $21 million. accusing John Wilhelm, president of the of squandering resources and failing to earnings by almost 62 percent, but the in- Retail net sales rose 3.5 percent to $14.8 hospitality division, of violating their adequately boost membership. Wilhelm nerwear maker’s adjusted results beat million with comparable-store sales up 0.8 freedom of speech. has said the effort to split the union is analysts’ predictions. percent. Excluding the extra week in the In the latest legal salvo of the union undemocratic. The Iselin, N.J.-based firm said most recent quarter, comps slid 9.6 percent fight, filed on Feb. 23 in Manhattan federal The breakaway group is seeking an Wednesday that first-quarter and full- on reduced traffic and economic instability. court, the 15 plaintiffs allege that Wilhelm injunction against Wilhelm and his al- year earnings would match or top the Gross margin contracted to 34.7 per- threatened them with unspecified disci- lies from interfering with their speech Wall Street estimates. The better-than- cent of sales from 40.7 percent. plinary charges for their participation in rights and unspecified damages. expected performance and positive guid- “We made a conscious decision to sup- the litigation seeking to break-up UNITE The faction led by Raynor has ance helped to lift Maidenform shares 15 port our retail partners with promotional HERE. In addition, they charged that brought a total of three actions in cents, or 1.8 percent, to $8.73. and markdown assistance as they became Wilhelm has undertaken a campaign with- Manhattan federal court. In addition to For the period ended Jan. 3, profits more aggressive in their pricing and in- in the union to suppress their dissent. their desire for a dissolution, UNITE tumbled 61.8 percent to $2.4 million, or 10 ventories strategies,” Maurice Reznik, The plaintiffs were part of a 25-mem- backers accused the Wilhelm-led HERE cents a diluted share, versus net income chief executive officer, said on the com- ber minority on the union’s general division of acting deceitfully and hijack- of $6.4 million, or 27 cents a share, in the pany earnings call. In order to offset this executive board that voted in January ing financial resources. year-ago quarter. Excluding restructuring “pressure,” Reznik said the company re- to dissolve the 2004 merger of the for- This week, HERE published a coun- charges and other items, adjusted earn- lied on the strength of new launches and mer Union of Needletrades, Industrial terpoint to many of UNITE’s allegations ings were 16 cents a share, 4 cents above product diversification. & Textile Employees (UNITE) and the and revealed that it filed its own lawsuit analysts’ expectations.. For the year, earnings dipped 27.7 per- larger Hotel Employees & Restaurant in New Jersey last week in a move to Revenue slid 1 percent to $94.8 mil- cent to $24.7 million, or $1.05 a share, from Employees International (HERE). block local chapters from ending their lion from $95.8 million last year with $34.2 million, or $1.43 a share, a year ago. Thirty-nine board members voted affiliations with the union. wholesale revenue down 2 percent to Adjusted profit was $1.16 a share, and an- against the resolution and in support of —With contributions from Liza Casabona $79.9 million, hurt by a 17.3 percent drop nual sales fell 2 percent, to $413.5 million. WWD, THURSDAY, MARCH 5, 2009 27 ResourceDirectory To be included among the top places to work, call 1.800.423-3314 or email [email protected]

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For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. Spaces Men’s SRI SEARCH INC. PERMANENT / FREELANCE 212-465-8300 Allen Platt / Jennifer Glenn COMMERCIAL COMMERCIAL [email protected] / Design Director [email protected] REAL ESTATE REAL ESTATE Prestigious day and evening brand is SALES REPS seeking a lead designer with 10+ CAD-GRAPHICS-FABRIC PRINTING An established Canadian men’s acces- years experience in high-end RTW. U4ia-Photoshp-Illustr: 212 679 6400 sory company seeks U.S. sales reps for Must be able to lend significant creative www.sanodesignservices.com medium priced, beautiful line of belts & technical influence and lead all aspects and suspenders. Must be motivated, of design to include sourcing, sample experienced and well connected to making, and producing a comprehensive OPEN YOUR OWN OUTLET retail stores. E-mail resume to: day/evening collection plan. Major design Showrooms & Lofts SHOWROOM/OFFICE We can show you how to go [email protected] fax 514-382-0726. house experience is a plus. Qualified direct. Call Jack 913-897-1242 individuals may respond with resume BWAY 7TH AVE SIDE STREETS LOFT SPACE FOR RENT and min. salary req. in confidence to: Great ’New’ Office Space Avail Fabulous shared space on lower 5th [email protected] ADAMS & CO. 212-679-5500 Ave. Join other existing fashion type ORGANIC KNITS, Jersey, Interlock, tenents. Built in secretary, color Thermal: Men and Women PRIVATE LABEL PRO Importers/Chain Stores: Bulk produc- Possible partnership. Base salary plus printer, fax. Can divide to suit needs. commission. Email resumes to: Call Debbie 347-723-9070 or tion, quick delivery and competitive [email protected] prices. Please contact: [email protected] [email protected] INVENTORY CONTROL MANAGER SALESPERSON SHOWROOM TO SHARE Luxury Golf Apparel Company seeks Experienced Sales Person needed. PATTERNS, SAMPLES, experienced Inventory Manager for GM/Apparel Company. Experience 33rd-57th St West-All Sizes 1407 Braodway. 800 sq. ft. our Manhattan based office. Responsi- available email: and relationships servicing mass / PRODUCTIONS bilities include: Forecasting seasonal mid-tier retailer required. Good comp. Menswear Showrooms [email protected] All lines, Any styles. Fine Fast Service. buy plans, monitoring and D. Levy Adams & Co. #212-679-5500 package for Mr./Ms. Right. E-mail: Call Sherry 212-719-0622. re-forecasting inventory purchases [email protected] and receipt plans, preparing all inven- Fax:212-719-1819 PATTERNS, SAMPLES, tory purchases for vendors, catalog A/R SUPERVISOR and brochure proofreading to ensure PRODUCTIONS Children’s sptswr company seeks person style and pricing accuracy, work with Full service shop to the trade. to supervise A/R Dept. Minimum 4 Merchandising and Design for collec- Fine fast work. 212-869-2699. years exp. Strong knowledge of large tions planning, SKU set-up/UPC crea- discounters: WM-KM & others. Credit, tion, pricing, review of weekly reports collections, cash application, C/B investi- from QC Managers and overseas facto- gation. Proficient Excel/Word. Benefits. ries, analyzing of freight and duty E-mail res to: [email protected] expenditures. The ideal candidate will be a motivated team player with 5+ years experience. Familiarity with DATA ENTRY/CLERICAL Blue Cherry or similar, Escape, Excel STRATEGIC PARTNER Modern Corp/Office - Well-Organized, and MS windows app.’s a plus. Some DESIGNER AVAILABLE Screen printing-U.S./Mexico Computer Proficient, Detail Oriented - travel required. Forward resume with Recession inspired designs! Very LA co.w/Puebla, Mexico plant Reports, Production, Warehouse, Data salary requirements to: unique approach! Freelance only. ALL all techniques, great capacity Input - Excel/Access Spreadsheets. [email protected] categories of menswear. Exp’d. principles only (323)252-3522 Email res: [email protected] No phone calls or walk-in’s please. Proven track record. Lets talk! Send contact info to: [email protected] 28 WWD, THURSDAY, MARCH 5, 2009 WWD.COM Bill Clinton Paint Job Divide and conquer, the Romans believed and, as the saying goes, when in Rome (or Milan, in this case). So on Monday night, while Naomi Watts was in Italy attending fashion week, her partner, Liev Schreiber, was in New York at the TriBeCa Ball. The couple were honorary chairs of the annual event, which benefits the New York Academy of Art and kicked off with studio tours throughout the school. Instead of his girlfriend, Schreiber found company in Justin Timberlake. The duo checked out some of the more outré exhibits — including a pair of live models whose bodies guests were invited to paint and decorate with broken eggshells. Designer Jason Wu opted out, but he did find three artists whose work he did like, though not without some effort. “This is more exercise than I’ve gotten in a year,” he joked as he Liev Schreiber clambered the stairs to the school’s fifth floor along with guests like Alek and Justin Wek, Nicole Miller, Jennifer Creel, Heather Mnuchin and Monet Mazur. Timberlake Though Timberlake skipped out after cocktails, the other guests joined Monet the chairs, including André Balazs, artist Will Cotton and Eileen Guggenheim, for Mazur a dinner complete with an artist painting the scene. For dessert, there was a surprise: an appearance by former president Bill Clinton. His presence caused more furor than any amount of Champagne ever could among the group of usually blasé New Yorkers. As guests crowded

ner around him, snapping photos with iPhones and cell phones, Clinton gladly h ic shook hands and posed. “It looks different than last time I was here for E the Tribeca Film Festival,” he said, looking around at the decor. Of course, eve

St For more,

most of the guests, especially the women, were staring at him, not the wall by hangings done by the students. s see WWD.com. His Secret Service detail were the only ones not in a tizzy. Said one, Jason Wu photo s Alek Wek “That guy’s a chick magnet.”

going to school, I said, ‘Yeah, this is what I really love and what I want to do.’ I know there’s gonna be FASHION PLAYLIST: MILAN X amount of things that are always gonna come up, no RISING SON matter what.” London may have gone after the Nineties, but If it weren’t for his flat delivery and Indeed that “X factor” — aka Dad — comes up in runway soundtracks in Milan either quoted, referenced, straight-face, actor Colin Hanks would seem to suffer his latest film, “The Great Buck Howard,” out March remixed or covered songs from the Eighties. from the kind of hyperbole-laced rhetoric usually re- 20. Hanks is Troy, a law school dropout who takes a gig This translated into some rather suggestive lyrics at Gucci served for fresh-faced ingénues. as the personal assistant to washed-up mentalist Buck and Versace, a Tina Turner medley at Giorgio Armani and Asked about his current Broadway debut in “33 Howard (Malkovich). In a bit of art imitating life, his tracks from Eighties icon Grace Jones at Blumarine. Variations,” he responds: “It’s extremely exhilarating onscreen father — none too pleased about his son’s But not every designer was feeling nostalgic. Tunes from to get the chance to do this with someone like [play- scholastic abandonment — is played by the elder Hanks artists including Duffy, Adele and M.I.A. boomed across wright] Moises [Kaufman], who is extremely talent- the speakers at Luisa Beccaria and Etro. Dolce & Gabbana ed and an incredible human being and individual. went for U2’s latest single, “Get on Your Boots,” which is It’s humbling and amazing and I’m very lucky to as good a title as any for a song being played at a fashion be here.” show. Here, audio highlights from the Milan shows. What’s it like working with Jane Fonda? — Rachel Mascetta “She’s extremely sweet and very hard working IS B

and just an absolute pleasure to work with.” R O C

And John Malkovich, with whom he appears in i/

the forthcoming film “The Great Buck Howard”? ott s

“He’s just one of the sweetest individuals I’ve No

o i

ever met. And extremely funny. I had a very good b a time working with him.” F Hanks, 31, can be forgiven a little gushing when de BY

it comes to such heavy-hitting co-stars, though with Mo e h ec p e D e; I have crampy jazz hands. g

­ ma “ — Colin Hanks” I azur/Wire

his Hollywood pedigree (yes, he’s Tom’s son) he’s M

certainly accustomed to Oscar-worthy company. evin And if his earnest manner doesn’t exactly make K 2 BY U

for zingy one-liners, it’s allowed him to maintain a

steady stream of work. es; g

In “33 Variations,” opening Monday at the ma I Eugene O’Neill Theater, Hanks plays a male nurse

tty PLAYLIST charged with the care of Jane Fonda, an ALS pa- tient and musicologist obsessed with Beethoven’s l “Kiss,” by Señor Coconut “Diabelli Variations.” She butts heads with her (Moschino Cheap & Chic) l

daughter (Samantha Mathis), who ends up finding senfelder/Ge “What’s Love Got To Do With

romantic solace with Hanks. Mo It,” “We Don’t Need Another “His character has a tendency to sort of fum- Hero,” “Simply the Best,” by ble his words sometimes, and you’ll see there are Tina Turner (Giorgio Armani) l some really funny moments in the play where he Tim ills BY “Cheap and Cheerful (Fake K e

just makes absolute faux pas and things don’t quite h Blood Remix),” by The Kills come out way he means them to,” says Mathis. “It’s T (D&G) es; very charming.” g l “Hometown Glory,” by Adele ma I ra

Though it is Hanks’ first professional theater t (Burberry Prorsum) i M tty

l

role since a successful London run of “This is Our t “Williams’ Blood,” by Grace

Youth” in 2003, he has plenty of academic stage er Jones (Blumarine) ive/Ge h

Rob l experience. Growing up in California, he acted “La Campalesson,” by Franz rc by A

in all of his high school plays “with the exception Liszt (Luisa Beccaria) n l of the musicals....I have crampy jazz hands,” and Colin Hanks at Bond 45 restaurant. to “Dangerous,” by Depeche Mode studied drama at Los Angeles’ Loyola Marymount photo (Gucci) n/Hul University. His big-screen breakout came in the o l “Paper Planes,” by M.I.A. (Etro) 2002 comedy “Orange County” and he has since ap- (whose company, Playtone, also produced the project). ins l “Get On Your Boots,” by U2 Rob peared in “The House Bunny,” “Untraceable” and was “I’ll be totally honest: That was his idea,” says the (Dolce & Gabbana) a recurring guest star on the most recent season of young Hanks. “He just sort of said, ‘Hey, I’m gonna do l “Aquafresh,” by Zomby (Prada) Jack “Mad Men.” this — I hope you’re cool with it.’ And I thought, ‘OK, l “Piano Trio No. 2 in E Flat, “Acting was always something I really loved doing. well, I mean, he’s good and he’s a talented guy and it Op. 100,” by Franz Schubert I wanted to make sure that there wasn’t anything else wouldn’t hurt having him in the movie. I suppose yeah, (Aquilano e Rimondi) From top: Tina Turner, U2, I wanted to do more,” explains Hanks, who now lives OK, sure.’” l “Convolution,” by In Flagranti Depeche Mode and The

with his girlfriend in the West Village. “Then after — Vanessa Lawrence Turner PHOTO BY (Versace) Kills.