RATING WAL-MART’S SHARES/2 THE ART OF COVER LINES/11 WWWDomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • January 14, 2005 • $2.00 Beauty

Feminine Touch NEW YORK — After a successful fall launch of Reaction for Him, Kenneth Cole is hoping for more of the same with its women’s counterpart, Reaction for Her. Launching in April, the scent will be available in about 1,800 U.S. department and specialty store doors and could do $25 million at retail during its first year on counter. For more, see page 7. Ullman’s Agenda for Penney’s: Inject Buzz and Maybe Beauty By David Moin generate more buzz about the the 1,000-unit chain during his first NEW YORK — Myron Ullman, J.C. brand, expand Penney’s off the mall meeting with investors, at a Penney’s new chairman and chief and maybe return to the beauty breakfast presentation Thursday at executive officer, has been on the job business in a major way. Citigroup Smith Barney, since he for only 44 days, but he knows Those were among the joined Penney’s. exactly what he needs to do: opportunities Ullman suggested for See Penney’s, Page 12 PHOTO BY GEORGE CHINSEE; STYLED BY BRYN KENNY GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, FRIDAY, JANUARY 14, 2005 WWW.WWD.COM WWDFRIDAY Analysts Bullish on Wal-Mart Stock Beauty By Meredith Derby So analysts think the stock is due to see decent gains, especially since luxury stocks are projected GENERAL NEW YORK — Despite Wal-Mart Stores Inc.’s stag- to top out this year. Twelve-month target prices for J.C. Penney’s new chairman and ceo wants more buzz about the store and nant stock price over the last five years, invest- Wal-Mart shares range from around $65 to $70. 1 its brands, higher productivity, Internet pizzazz and maybe a beauty revival. ment analysts say now is the time to snap up its “Over the next year, [Wal-Mart shares have] a Despite Wal-Mart’s stagnant stock price the last five years, analysts say its shares as several positive catalysts stand to push very good chance of outperforming the S&P 500,” 2 the right time to snap up its shares thanks to several positive catalysts. the stock upward. predicted Chris Graja, securities analyst at Argus After enjoying a solid run-up from 1997 to 1999 Research, who has a “buy” investment rating on Wal-Mart used its formidable skills at execution Thursday to launch a — hitting an all-time closing high of $69.44 on Dec. the stock. 2 major, coordinated public relations effort aimed at refuting its opponents. 27, 1999 — the stock’s 200-day moving average has Paul Nolte, director of investments at Hinsdale SUZY: Double trouble in the Aston house…A weekend getaway to “Dye remained “range bound,” hovering between $50 to Associates, said Wal-Mart’s stock “is the cheapest 4 Fore”…Kate Moss sets a birthday bash for herself at her English estate. $60 during the past five years. it’s been now since 1998,” currently trading at about The shares closed 2004 essentially flat, and at 19.7 times expected fiscal 2004 earnings of $2.40 a BEAUTY: After scoring a hit this fall with his men’s version, Kenneth Cole around $53, the stock is currently down about 3 share, according to Thomson First Call. That’s down 7 hopes to see a similar reaction for his newest women’s scent this spring. percent relative to the S&P 500. significantly from the roughly 50 times earnings the Vera Wang is taking another trip to the retail altar this spring with Sheer Veil, It’s not surprising 2004 was a flat year for Wal- stock saw in the late-Nineties bubble era. 7 a limited-edition fragrance that will roll out in April in just 320 doors. Mart’s stock: the retail environment was not overly Apparel is one key area that analysts expect favorable for the deep discounters. For Wal-Mart, will help fuel profit growth. Moody’s Investors Achille Maramotti, founder of Max Mara Fashion Group SpA, died double-digit, year-over-year increases in gas prices Service estimates annual apparel revenues to be 15 Wednesday in the family’s castle near Reggio Emilia. He was 78. crimped spending on the firm’s core, low-income $33 billion at Wal-Mart. That would make up 8.7 In observance of Martin Luther King Jr. Day, WWD will not publish on Monday. consumer. Those shoppers also may have been percent of analysts’ total revenue expectation of drawn toward dollar stores, or to Target Corp.’s in- $287.5 billion in fiscal 2004. Classified Advertisements ...... 14-15 creasingly competitive prices, analysts have said. Deborah Weinswig, managing director of U.S. eq- To e-mail reporters and editors at WWD, the address is In addition, community protests against the uity research at Citigroup Smith Barney, said Wal- [email protected], using the individual’s name. opening of new supercenters as well as sexual dis- Mart gradually improved the quality of its grocery WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 crimination and labor-related lawsuits continue products, thus attracting higher-income shoppers. FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 189, NO. 10. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one to affect the retailer’s reputation. As a result, Weinswig, who also rates Wal-Mart stock additional issue in June; two additional issues in April, May, August, October, November and December, and three additional But analysts speculate that the renewed focus on a “buy,” said, “They can do the same with apparel.” issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL apparel by Wal-Mart as well as international expan- International expansion in China is another OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill sion opportunities could trigger profit growth in way Wal-Mart can boost profits and please in- Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, 2005, which could energize the retailer’s stock price. vestors. Wal-Mart International plans to open 155 Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- Wal-Mart did not return calls seeking comment. to 165 units in existing markets in fiscal 2005. President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration Ulysses Yannas, an analyst at Buckman Of course with the stock market, nothing is a No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. Buckman & Reid, said the retailer has “reempha- given and bulls can often turn bearish on a sector, or POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR sized profits, and we can see that in the way they even on a particular stock. Hinsdale Associates’ DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is went through the process of Thanksgiving [by not Nolte recommends playing Wal-Mart’s stock as “a required for change of address. Please give both new and old address as printed on most recent label. First copy of new initially cutting prices].” pure hedge.” subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, Meanwhile, as the intense success of high-end re- “The problem you have with Wal-Mart is the please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild tailers pushed luxury retail stocks into lofty territo- size. How big is this company going to be able to magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully ry —with the share price of Nordstrom Inc., for ex- grow?” Nolte said. “If it does break out of its trad- screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. ample, having risen 150 percent in the last two years ing range and gets into the mid-$60 to mid-$70 WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED — stocks such as Wal-Mart have become underval- over the next two to three years, that would be ev- MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND ued relative to the rest of the industry, experts said. idence of the success of international growth.” TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Wal-Mart Mounts P.R. Blitz of Critics Quote of the Week By Katherine Bowers H. Lee Scott she said. “We can say that in 2005, we’re going to be aggressive in “I am working on some BOSTON — Wal-Mart Stores Inc. getting our messages out.” used its formidable skills at exe- Gary Ruffing, retail director things that have nothing cution Thursday to launch a with consultant BBK Ltd., esti- major public relations effort mated the ads alone rang in at to do with ready-to-wear, aimed at refuting its opponents. about $1 million. In full-page advertisements Even if Wal-Mart spent twice and I’m not ready to signed by chief executive officer that for Thursday’s blitz, it’s still H. Lee Scott that ran in more spare change for the $256 billion announce anything.’’ than 100 U.S. newspapers, the retailer. “It’s not as expensive as company said: “When special-in- going to court and fighting legal — Tom Ford terest groups and critics spread battles and having people not un- misinformation about Wal-Mart, derstand what you stand for,” the public deserves to hear the Ruffing said. truth. In other words, everyone Not everyone was swayed by is entitled to their own opinions Wal-Mart’s appeal. In Brief about our company, but they are Greg Denier, spokesman for not entitled to make up their the Union of Food and Commer- own facts.” urban myths go away,” Scott said cial Workers, said Wal-Mart’s ● COLE SHARES PLUMMET: Shares of Kenneth Cole Productions The world’s biggest retailer, on CNBC. “We’re going to get out push was “a defensive reaction Inc. plunged 7.9 percent, closing at $27.01 Thursday after the firm facing the largest-ever gender and tell our story.” using an ad campaign to cover lowered its fourth-quarter sales and earnings guidance to below discrimination class-action case Earlier, chief financial officer the reality of Wal-Mart’s opera- analyst consensus estimates due to a “generally challenging and a barrage of other litigation, Tom Schoewe, speaking to a tions.” He said several of the re- December, particularly in its consumer direct business.” has come under fire for being a CNBC reporter, hinted at the re- tailer’s claims were misleading, Revenues for the fourth quarter are expected to be in the range low-wage employer that wreaks sistance the retailer has faced in including one that 74 percent of of $133 million to $135 million with earnings per share coming in havoc on communities in which building new stores in cities hourly associates work full-time. between 43 cents and 45 cents. For the full-year period, EPS is it opens stores. such as Inglewood, Calif., which Wal-Mart defines full-time as 32, expected to be between $1.72 and $1.74 a share, which is “up ap- As the ads appeared yester- rejected a Wal-Mart in April. “We not 40, hours per week, he said. proximately 9 percent versus the fiscal 2003 level of $1.59,” the day, Scott and other top execu- need to put stores and clubs all Wal-Mart’s ads ran in The Wall firm said in a statement. “The company continues to believe that tives appeared on a blitz of tele- around the country, so the deci- Street Journal and USA Today, as it will attain its prior guidance for sales and earnings growth in vision programs and fanned out sion-makers need to know the well as publications targeting mi- fiscal 2005 of 10 percent to 15 percent,” the company added. for interviews in which they tout- facts, not lies,” he said. norities such as New York’s Span- ed upbeat company statistics on The company also started a ish language El Diario/La Prensa. ● CONSUMER CALLING: Wendy D. Farina has joined global wages, benefits and employment new Web site, walmartfacts.com, “We really are trying to reach management consultant Kurt Salmon Associates as a principal opportunities. Wal-Mart has pre- to support its contentions. “We not only the general public, but in its North American growth and profitability practice, where viously publicized this data, but want to make sure we are the also our associates because they she will lead the consumer insights and marketing services. never with as much financial ones controlling what is said have often asked us to step up Farina’s post reflects a reorganization by the consultant, aimed, and executive clout. about Wal-Mart,” said a company and correct some of the messages she said, at “bringing it more in line with marketplace demand In fact, Scott, who has spent spokeswoman Carol Schumacher. out there,” Schumacher said. — a deeper understanding of consumer insights, especially tar- his career shunning the spotlight, She would not disclose how Thursday morning, the retail- geting a core customer.”“The days of trying to be all things to all appeared on ABC’S “Good much the retailer spent on the er’s 1.2 million domestic associ- people are over,” added Farina, 45, who joined Kurt Salmon Morning America” as well as on initiative, how long it took to plan ates received a letter from Scott. from The Cambridge Group, a Chicago-based consumer strategy CNBC, CNN and Fox News, and or what is next. In the stores, Wal-Mart televi- boutique. She began her career in retail at Lerner New York spoke with a handful of print out- “We don’t want to provide any sion played a broadcast of Scott and the Lane Bryant division of The Limited, where she held lets. “We’re not going to sit in of our plans because that would explaining the company’s deci- posts in buying, merchandising and marketing. Bentonville, [Ark.], hoping these be tipping off too many people,” sion to defend its record.

4 WWD, FRIDAY, JANUARY 14, 2005 WWW.WWD.COM Double Trouble ● Weekend Getaway ● Birthday Girl

has been staying with her hairdresser, who, like many in Hilary Swank his field, is an expert in consoling distraught clients. ● Kate Moss turns 31 on Sunday and she’s planning a flamboyant birthday party at her 10-bedroom estate in the English countryside. Kate’s asking everyone to dress in over-the-top, glam-rock outfits with punk hairdos to help her blow out the candles on her cake. All the close friends, like Gwyneth Paltrow and Chris Martin, Madonna and Guy Ritchie, Sadie Frost and London’s most colorful fashionistas have been invited. This is bound to be an even bigger and louder bash than Kate’s 30th birthday, which had a Twenties theme based on F. Scott Fitzgerald’s “The Beautiful and the Damned.” The pals are wondering whether Jefferson Hack, the father of Kate’s two- year-old daughter, will be by her side or if the fickle supermodel will have another date. I can wait if you can. ● Because it usually happens that way, the opening night of the Winter Antiques Show on Jan. 20 will probably be miserable, rainy, sleeting, snowing — but wonderful. Not a chance that the meteorological maladies will inspire the city’s social personages to hibernate at home instead. Not a chance. The receiving line on opening night will be a decorative marvel, so they say. Grisaille renderings of the turn-of- the-century facade of the New York Historical Society, which is the site of this year’s lone exhibition, will lure them out, along with Bill Tansey’s boxwood topiaries and white, blossoming branches, enough to create a winter oasis. Opening-night Suzy committee co-chairmen By Aileen Mehle Margaret Russell, Elle Decor’s editor in chief, and Muffie Potter Aston and the noted plastic Joan Young, president of the surgeon Dr. Sherrell Aston’s long-awaited East Side House twins have arrived. Muffie was all dressed and Settlement board, will be eye® ready to go to her third and final baby shower there to greet one and all. when her little girls threw her schedule into The chairman of the disarray by arriving 10 days early. Both girls are blonde, blue- Winter Antiques Show, Arie Kate Capshaw eyed and full of sugar and spice, just like their mother. all the way from London to occupy Kopelman, along with Gov. Ashleigh Tatiana, at 4 pounds, 13 ounces, beat her sister into their house and, from Caracas, Patty and Mrs. George Pataki, this the world by 60 seconds. Bracie Potter weighed in at 4 and Gustavo Cisneros of the year’s honorary chairmen, and Oscar de la Renta, pounds, 8 ounces. Both girls already have an outfit for every Venezuelan billions also entertained a the honorary vice chairman, will welcome more occasion from their first two showers. You know Muffie. group of family and friends at their than 1,100 of what could be described as New ● magnificent compound, Casa Bonita. York’s gilded set. Among those expected are That select set you read about and love had bundles of Maria Luisa and Eugenio Mendoza Evelyn and Leonard Lauder, Dixon Boardman, fun recently escaping New York’s cold weather, jetting or were there, too, preparing for their Marie-Josée and Henry Kravis, Robert Couturier, yachting to the beautiful resort Casa de Campo in the daughter, Maria Luisa’s wedding this the Edgar Cullmans, Liz and Felix Rohatyn, Allison Dominican Republic. A mishmash of glamorous sun-lovers April in Caracas. Of course there were Cowles and Arthur Sulzberger and Christine and were lured by the wonderful weather, the new marina, any fireworks everywhere, Latin rhythms Stephen Schwarzman. Not bad. Not bad at all. number of restaurants on the plaza, and Pete Dye’s newest and nonstop dancing until daybreak. ● 18-hole masterpiece, cunningly called “Dye Fore.” That’s Casa de Campo for you, folks. Gems culled from the three supercandid The festivities kicked off with the Fanjul charity auction Everyone there was thrilled to see celebs who regaled the audience at The New York — the Fanjuls own Casa de Campo — held at the family’s the resort’s new luxury residences, Times Arts and Leisure weekend: Hilary Swank breathtakingly beautiful villa on the beach, called Casa called Los Altos de Chavon, located in confessed, “The year I won the Oscar I earned Grande. The party, sponsored by Cartier USA, attracted the quiet little village by the same Carol McFadden $3,000. I didn’t even have health insurance.” more than 500 people, who bid like pros, and the live name. So guests arrived from New Whereupon she fell out of her shoes, noting that auction was conducted by none other than sun-kissed York, Miami and Palm Beach to check it out. Later that day, she was running late that day for a photo shoot and that George Hamilton, who was staying at his paradise retreat there was a golf tournament and those who didn’t do that the shoes were borrowed. “In the end,” she said, “who at the resort with his ex-wife and best pal, Alana Stewart. shot, rode horses, played tennis or took a helicopter tour of really cares about what I’m wearing?” Oh, come on. As for the party of the week, it was hosted at the beach by the island. At dinner at the Pepperoni Bar, Alex Rodriguez, As for the artist Chuck Close, he recalled a time when Pepe Fanjul Jr. and his sister, Emilia Fanjul Pfeifler.At pride of the Yankees, was spotted having dinner with his he was a student at Yale and his classmate, Richard Serra, least 80 people sat down to dinner, and another 200 arrived wife. He, George Hamilton and Alana Stewart were all on walked out of a Frank Stella lecture, calling him a fake and for dancing at Casa Grande’s private beach. hand for the cocktail party at Los Altos, which overlooks the a fraud. Dear Chuck. Everywhere you looked you saw such as billionaire Chavon River. Among the others enjoying the view were At the same event, Barry Humphries, aka Dame Edna, shopping tycoon Mel Simon and his wife, Bren; designer Peter Som, Pepe and Emilia Fanjul, Alfie Fanjul, Alexandra began his discussion with an apology to the audience. “I Kenneth Cole with his family; director Steven Spielberg Lind Rose, Bettina Zilkha, and Miss Universe, Amelia Vega. apologize for any incoherence you hear today. It is early and and his wife, Kate Capshaw (Spielberg is researching the ● I am afraid I feel like Charlie Rose looks.” (Zing!!!) The 70- Dominican Republic as a location for a new movie about Jennifer Aniston says she can’t live in the $13 million year-old Humphries then added, “I had two shows Cuba); producer Brett Ratner; Lana Forstmann and her mansion that Brad Pitt spent two years renovating. The yesterday, which gets more challenging for me as I approach children, and Carol and George McFadden, who hosted a house includes a nursery that will never be used, at least middle age.” Never one to pull punches, he/she gets much birthday bash at the marina’s Bellini Restaurant. not by her. She wants to try to work out a settlement so naughtier than that when he/she cuts to the bone on stage. The ever-elegant couple Minnie and Dru Montagu came Brad can keep his beloved house. In the meantime, she But his/her audiences just love him/her. COLOR IN THE CITY

WEATHERPROOF® GARMENT COMPANY SINCE 1948 © 2005, www.weatherproofgarment.com 212.695.7716 © 2005, www.weatherproofgarment.com 6 WWD, FRIDAY, JANUARY 14, 2005 The Beauty Report Beauty Aids Tsunami Victims NEW YORK — Tsunami victims and the Asian-Pacific and corporately — to be as generous as possible to as- dened by what happened. And we continue to be so.” regions that have perished from the Dec. 26 natural dis- sist those whose lives have been devastated.” Indie brand Three Custom Color will donate 40 per- aster are receiving aid from some of the beauty indus- The Estée Lauder Cos. already has committed cent of its Internet sales in January to various charities try’s biggest players — as well as some of its smallest. around $1 million through a variety of charities. The aiding in the cleanup effort. It also has posted links to Procter & Gamble, Coty, L’Oréal, Unilever, the Estée company has made donations to Save the Children, several reputable charities — including UNICEF and Lauder Cos., Shiseido, Dior, Body Bistro and Three World Vision and the World Food Programme, and is CARE — for customers who want to donate more. Custom Color, among others, are donating monies and giving significant amounts of personal-hygiene prod- Luxury group Pinault-Printemps-Redoute, which supplies to provide everything from cash, water-purifi- ucts to AmeriCares for use in the affected zones. owns YSL Beauté and the Printemps department store cation tools and distribution efforts to survivors. Lauder also is making donations through the founda- chain, also donated about $1.3 million to the relief effort. According to published reports, the death toll resulting tions of two of its brands, Aveda and MAC. Dior has made a sizable donation to the American from the tidal waves is near 150,000, and nearly 100,000 Unilever North America has donated $2 million, Red Cross for post-tsunami aid, said a company people remain missing. said a company spokesman, and has established a fund spokesperson. Affected families will receive a 10-day P&G has donated as much as $500,000 in cash, but where it will match employee contributions two to one. supply of food and fresh water, first-aid and toiletry more importantly, more than $2.5 million in powdered Unilever also is distributing the entire food supply for kits, towels and blankets, water-purification tablets, water-purification sachets, which make contaminated disaster relief, available through the World Food containers and emergency shelter materials. water drinkable. To date, more than 28 million Pur sa- Programme, to the affected areas. In Thailand, Nubest Salon and Spa will donate all proceeds from chets — roughly equal to one billion glasses of purified Unilever has supplied 800 boxes of food products to the haircuts, hair color (single process) and manicures to water — have been supplied, according to a company four worst-hit provinces, including Phuket, Phang-Na, UNICEF. A silent auction hosted by celebrity guests spokesperson. Krabi and Ranong. Home and personal care products, will help it raise additional money for UNICEF with Shiseido Co. Ltd. is contributing both money and mate- including toothpaste and toothbrushes, detergent, items donated by music legend Billy Joel, Gucci, rials to relief efforts in tsunami-stricken areas. The shampoo and soap, also have been distributed, accord- Miramax, the New York Islanders, The Garden City Japanese cosmetics giant has committed $200,000, as well ing to the company’s Web site. Hotel, Access Travel and Morton’s Steak House. as 10,000 sanitary masks, which are produced by the Tokyo- Kao Corp. plans to donate approximately $200,000, Body Bistro began donating the net profits of its on- based company’s fine toiletries division, to the cleanup. which will help fund the Japan Federation of line sales on Jan. 1. It will continue donating profits The company’s New York-based subsidiary, Shiseido Economic Organizations, the Japanese Red Cross until the end of March, or when it reaches the $100,000 Cosmetics (America) Ltd., including its Zirh Society and NPO Japan Platform. Offices in Indonesia, mark. In April, Carina Chatlani, founder and president International Corp. and Nars Cosmetics Inc. divisions, is Thailand and Malaysia are now supplying products of Body Bistro, will travel to Sri Lanka and southern contributing an additional $10,000 to the relief efforts. such as soap, shampoo, sanitary napkins and dona- India to personally deliver the funds to orphanages in “One of the core beliefs of the Shiseido philosophy tions, according Kao’s Web site. the area. Chatlani, who is Indian, lost a number of fam- is social responsibility,” said Heidi Manheimer, presi- L’Oréal SA has given approximately $1.3 million to ily members and friends in the disaster. dent of operations for the group. “As a global company, the relief effort, according to a company spokesman, — Andrea Nagel, Julie Naughton and we take this responsibility very seriously. The scope of who said, “We felt, clearly, like every other company and Matthew W. Evans, New York; the tsunami disaster requires all of us — individually person around the world — deeply shocked and sad- and Brid Costello, Paris Trio Blends Skills to Nurture Cosmetics Firm Lancôme Intl. NEW YORK — When Trae Bodge, Scott Catto and Chad Hayduk Names Roujol — the three cosmetics gurus behind Three Custom Color Specialists — began whipping up custom-blended color cosmet- ics in 1997, little did the trio know that eight years later, they To Deputy Post would be at the helm of a business said to be generating more NEW YORK — than $4 million in annual sales yearly in more than 10 countries. Lancôme has While the trio built their business on the concept of match- named Odile ing discontinued makeup shades — and now offer more than Roujol deputy 7,500 such colors — they also have embraced the ready-to- general wear concept. Ready-made shades now number more than manager of its 250, and will grow by 33 stockkeeping units when the compa- international ny introduces its new lip gloss line in the spring. business, based The new line comprises high-shine lip glosses, which are in Paris. packaged in tubes with angled wand applicators — a depar- Roujol is a ture from the 29 existing lip gloss sku’s, which are in pots. nine-year The pots will continue to be available, “but we wanted some- veteran of thing easy to apply and easily portable with this new line,” L’Oréal SA, said Catto. Chad Hayduk, Trae Bodge and Scott Catto, founders of Three Custom Lancôme’s The glosses, in cool, warm and neutral color families, are Color Specialists. Below: Two of the new lip glosses. parent. She is the result of inspiration “from literally everywhere,” said currently Bodge with a laugh. “Our travel, street fashion, what clients as consultations on custom-blended products for cheeks, lips, deputy general have asked for over the past two years — reproducing all of eyes and face. A “Makeup Bag Makeover” — where cosmetics manager-senior these discontinued shades has proven to be the ultimate hoarders’ bags become streamlined — is also included. These vice president think tank.” hour-long appointments run $65 for a Color Specialist, or $105 of marketing for The lip glosses, each priced $18.50, will be available in the for an appointment with one of the founders. Lancôme USA brand’s distribution of 53 domestic beau- As for the custom-blended products themselves, two tubes and will assume Odile Roujol ty boutiques and 17 overseas stores, as of lipstick or two pots of lip gloss are $50 (additional units are her new role on well as on threecustom.com, the available at that time for $15), a single pot of creme-to- Feb. 15 in France. company’s Web site, in March. powder blush is $37.50 ($20.50 for an addition- Back in the U.S., Roujol — who Sources estimate they could do al one at order time) and a single compact of has been with the U.S. division $500,000 this year. And distribu- eye shadow or brow powder is $34 ($17 for since February 2003 — will be tion will grow even more this each additional). Custom concealers can be succeeded by Nina White, who was year: Bodge noted that Three had for $36.50, while loose powders are $47.50 formerly senior vice president of Custom Color has plans to add and pressed powders are $36.50. marketing for L’Oréal USA. doors in Qatar, Belgium and The Color Studio also offers As deputy general manager of Hong Kong by yearend. complimentary 20-minute run- Lancôme International, Roujol will As excited as the trio is about its new lip gloss throughs of its ready-made makeup assume all responsibility for the line, they emphasize that business is as strong as ever on the collections, with color and applica- international direction of the custom-blended side — and the company’s Color Studio ini- tion recommendations. brand, including product tiative, added to its Chelsea headquarters in October, is one of Recipes for custom-blended colors development, execution and the elements leading the charge for the custom and ready- stay in the trio’s archives indefinitely, allowing consumers to marketing in key markets, including made sides of the business. continually replenish their stash of shades. Lipsticks are the the U.S., Japan and Europe. In “The Color Studio allows us to make people feel at home,” most-requested custom-blended products, noted Bodge. “We’ll addition, she will determine said Hayduk. “We wanted something intimate. When you’re match anything, but we also have recipes filed by name and advertising strategies for the brand getting your face done at a department store, you have every- from the high end to the mass end of the business — so if you globally. She will report to Marc one grabbing at you. Up here, you can just relax in a quiet know the name and brand of the desired color, there’s a de- Dubrule, the director general of space, with a consultant who wants to make the process a cent chance that we’ll have it on file,” she said. Lancôme International. pampering one.” And unlike their department store sisters, “we never dis- Immediately prior to her U.S. One-on-one consultations in the studio involve a run- continue colors,” promised Bodge. role, Roujol was general manager through of the trio’s hundreds of ready-made shades, as well — J.N. of Lancôme France. WWD, FRIDAY, JANUARY 14, 2005 7

WWW.WWD.COM Cole Set for Second Reaction A New Veil for Vera Wang NEW YORK — Vera Wang is taking NEW YORK — After scoring a hit at retail in the fall with another trip to the retail altar this his men’s version, Kenneth Cole hopes to see a similar re- spring. action for his newest women’s scent this spring. The iconic wedding dress design- Launching Reaction for Her, a women’s counterpart er is set to launch Sheer Veil, a to the men’s scent Cole launched in September, made limited-edition fragrance, in sense, he said. “We were obviously pleased with the April — but she’s not inviting the consumer’s response to Reaction for Him, and felt that masses, distribution-wise. the appropriate reaction was to introduce a Reaction While Wang’s signature scent for Her fragrance,” said Cole. is in 850 U.S. department and No argument there from Lancaster, the designer’s specialty store doors, Sheer scent licensee. “Kenneth Cole’s fragrance business is Veil will be in just 320. our third-largest [prestige] franchise, ranked only be- “We think this is the per- hind Davidoff and JLo,” said Catherine Walsh, senior fect strategy to add newness vice president of marketing for cosmetics and American to the brand, while still main- licenses for Lancaster Group Worldwide. “And we be- The Reaction for Her ad visual. taining the exclusive, aspira- lieve it has the potential to get even bigger.” tional positioning of Vera’s Vera Wang’s Sheer Veil. Make that bigger not only in terms of money, but also al,” said Carlos Timiraos, vice president of marketing, signature scent,” said Fergus counter space. Reaction for Her is the fourth fragrance Lancaster Worldwide. Reaction for Her will be on count- Balfour, president and chief executive officer of launched by Lancaster since acquiring rights to Cole’s li- er in mid-April in the U.S., which currently means about Unilever Cosmetics International, which holds the cense from LVMH Moët Hennessy Louis Vuitton in May 1,800 department and specialty stores doors. Later this Vera Wang fragrance license. 2003. Industry sources estimated that two of these, year, it likely will be rolled out on a global basis, includ- “Sheer Veil brings a sense of color, whimsy and Kenneth Cole Black and Kenneth Cole Reaction for Him, ing doors in Europe, Asia and Australia. modernity to the brand,” added Wang of the new rank in the top five men’s scents at U.S. retail — and it’s While none of the executives would discuss sales fig- flanker. “It plays off the classic, with a sparkling clear that Lancaster hopes for a similar success in the ures or advertising spending, industry sources estimat- new fragrance and a bottle shimmering with color. more crowded women’s fragrance field. ed that the scent will do about $25 million at retail in its It’s the perfect reflection of a modern bride.” Reaction for Her is a “juicy floral” formulated by first year on counter and that about $6 million would be In fact, Laura Lee Miller, executive vice president Laurent Le Guernec of International Flavors and spent on advertising and promotion. for Vera Wang, sees the new offering as a way to ad- Fragrances, noted Jim Fine, marketing director for Print advertising, featuring model Sara Ziff, breaks in dress the burgeoning wedding business in a new Lancaster Worldwide. The scent has top notes of pink May fashion, beauty and lifestyle magazines. Shot by way. “One of the hotter trends in the bridal market grapefruit, mandarin and watermelon; a heart of violet David Sims — also the photographer of the men’s cam- right now is the concept of ‘soft dressing,’” explained leaf, yellow poppies, lily of the valley, white orchid and paign — it features a black-and-white photo of Ziff super- Miller. “That type of bride may wear a very fashion- sweet pea, and a drydown of vetiver, musk, warm amber imposed on a pink-toned shot of a dancing crowd. Scented forward gown — perhaps a sheath or something that and cottonwood. strips featuring both the women’s and the men’s scents doesn’t resemble a traditional gown. In a way, Sheer The collection will consist of eaux de parfum in two also are planned for a number of the ads, which Timiraos Veil is our soft-dressing fragrance, while Vera’s sig- sizes, 1.7 oz. for $45 and 3.4 oz. for $58, as well as a 6.7-oz. estimates will produce about 25 million scented impres- nature scent is our classic bridal fragrance.” shower gel for $26 and a 6.7-oz. body lotion for $29. sions for the women’s scent. The men’s layer will ratchet And Miller doesn’t rule out yet another fra- The bottle, a collaborative effort between Cole and the scented impression total to about 40 million, he added. grance engagement for the world’s most recogniza- Chad Levigne of Lancaster, is a heavy, clear-glass half- As well, what Timiraos calls “living media” also will ble bridal brand. While she wouldn’t comment on circle with a shocking-pink logo. The cap is of brushed play a significant part in the marketing of Reaction for specifics, industry sources speculated that Wang chrome. Those colors are carried through to the outer Her. Pointing to a men’s promotion that took the fra- could come back with a new fragrance concept as carton, a silver-toned box with shocking pink accents. grance into the Virgin Megastore, Timiraos plans simi- early as next year. Like its male counterpart, the women’s Reaction is in- lar nontraditional promotions for Reaction for Her. That suits Laura Klauberg, senior vice president tended to appeal to a “twentysomething new profession- — Julie Naughton of marketing for Unilever Cosmetics International, just fine: “We’re looking to keep Sheer Veil very limited, and it will be on sale only until the end of this year,” said Klauberg. Sheer Veil was formulated by Jean-Claude Sexy Hues to Drive Nars Sales DeVille of Firmenich, who also created the original Vera Wang scent. Sheer Veil has top notes of NEW YORK — Nars Cosmetics Inc. distribution network of more than Champagne rose and Lavender Dream rose; a heart is no stranger to sexy themes in 200 U.S. doors, including Barneys of dewy violets, and a base of white stephanotis, color cosmetics, judging by the New York, Bergdorf Goodman, gardenias and white lilies. Its bottle is the shape of success of its six-year-old peachy Neiman Marcus, Saks Fifth Ave- Wang’s signature scent, but rather than the gold- pink blush called Orgasm. Now, nue and Sephora, in April. After tinted juice of the original, Sheer Veil is a pale soft the Shiseido-owned brand will in- Glow features nine color items for lavender — roughly the shade of the inside of the troduce — that’s right — another the eyes, cheeks and lips, which signature fragrance’s carton. Orgasm, this time in the form of a range in price from $22 for lip The Sheer Veil collection will consist of a 3.4- similarly shaded, limited-edition gloss to $70 for eye, cheek and lip oz. eau de parfum, priced at $85, and two ancillar- lip gloss that will be launched next palettes. ies — a 5-oz. body lotion for $40 and a 5-oz. bath month at Sephora. In the summer collection, and shower gel for $35, said Lucy Tart, vice presi- While sex may sell — industry called Day Dreamer, there’s a $35 dent of marketing for the Vera Wang brand at sources project the $22 lip gloss limited-edition dual compact fea- Unilever Cosmetics International. alone could generate sales of $1 turing two best-selling blush Sheer Veil will launch in two waves to specialty million — it’s not the only thing on shades — Orgasm and Laguna, a stores, Tart explained. In April, selected Saks the mind of founder Francois Nars bronzer — which is to be intro- Fifth Avenue, Neiman Marcus and Nordstrom or the brand’s executives. They are duced exclusively at Sephora. Day doors will introduce the scent, followed by a June looking to grow the 10-year-old Dreamer will consist of 11 items launch of the remaining doors — selected brand by 30 percent this year with ranging in price from $18 for eye Bloomingdale’s, Marshall Field’s and Lord & new color cosmetics launches. and lip liner pencils to $36 for a Taylor. While none of the executives would com- That’s on top of global wholesale pink cheek stick. ment on projected sales, industry sources estimat- sales that reportedly exceeded $30 About $300,000 will be spent to ed that Sheer Veil could do $5 million to $7 million million last year, 80 percent of GEORGE CHINSEE PHOTO BY advertise the first-half launches, at retail and that about $2 million would be spent which was generated in the U.S. New Nars colors, clockwise from top: according to industry sources. on advertising and promotion. Provocatively named colors Cactus Flower blush, Orgasm lip gloss Nars is carried in roughly 50 Unilever is also planning a new ad visual for aside, Nars is introducing its first and Capucine lip lacquer. doors internationally. Those mar- Sheer Veil — model Renata Noot Seear as a veiled compact powder foundations this kets include the U.K., Japan and bride with Tirian Harvey as her groom. It will year. The 10 compacts, which are four seasonal color cosmetics col- Hong Kong. The brand comprises begin appearing in May fashion, beauty and slated to launch in August, have lections this year. Such regular in- about 350 color cosmetics stock- lifestyle magazines, including Vogue, Town & been in development at parent troductions typically help drive 25 keeping units and 15 skin care Country and In Style. Much of the national adver- Shiseido for several years. Nars percent annual sales gains for items. tising will include scented strips. today markets 20 liquid founda- Nars, noted Avalon. First up are the “Part of the future is a sun line On other fronts, Wang — whose empire is said to tions divided among 10 shades. brand’s spring and summer collec- and a fragrance,” said Avalon, who do more than $300 million yearly among its apparel “This is a huge stand-alone tions, which will be launched this noted that, while work has not yet and licensed products — is also currently rolling launch,” Joyce Avalon, the brand’s month and in April, respectively. officially begun on either, “it’s out a ready-to-wear dress line in 150 doors; sku’s senior vice president of sales and A highlight of the spring lineup, something that Francois has talk- range from $395 to $1,200. Other projects rolling out marketing, said of the compact called After Glow, is a $22 sheer ed about doing.” In any event, or close to doing so: wedding invitations, a fashion powder foundations. “It’s some- tangerine lip lacquer that’s dubbed “growth in recent years has de- jewelry line to complement the designer’s success- thing we feel will be a very impor- Capucine, which will be launched manded a focus on color and skin ful fine jewelry line, and furs. Further down the tant addition for us.” exclusively at Neiman Marcus. It care,” she noted. line, said Miller, Wang will likely enter agreements Additionally, Nars will introduce will then roll out to Nars’ full U.S. — Matthew W. Evans to produce intimate apparel and soft home goods. —J.N. 8 WWD, FRIDAY, JANUARY 14, 2005 The Beauty Report Skin Creams Now Add Color By Molly Prior store displays. The improvements reflect the parent company’s call to NEW YORK — The newest spin on body lotions is banking on beauty being skin deep. Kao overhaul the image of its star brands. Brands and Procter & Gamble will introduce moisturizers that subtly build a darker skin Television and print advertisements will tone over time, called Jergens Natural Glow and Olay Quench Radiance Reviver, respec- break in late March, and will likely be tively. But don’t call these lotions self-tanners. Both companies are working to avoid such preempted by a presence at New York comparisons by distancing themselves from the sun care category and merchandising Fashion Week in February, said Rudie. In instead to body lotions. Sunless tanners, after all, often get a bad rap for dehydrating skin. September, Jergens attracted the atten- Natural Glow and Radiance Reviver use DHA, the ingredient universally found in tion of fashionistas by giving away free sunless tanners, and Erythrulose, a color agent that builds color gradually. designer shoes, including Manolo Blahnik Jergens Natural Glow will bow in April and is billed as the first daily lotion to build a numbers, during fall fashion week. darker skin tone over time. Natural Glow marks the latest addition to Jergens’ skin-to-win In Jergens’ view, skin is a woman’s portfolio. The Kao brand — with the tag line “skin is in” — most important fashion accessory. has already had success with benefit-infused lotions such as Natural Glow, commented Rudie, is a the cellulite-fighting Skin Firming, Soft Shimmer Skin “little makeover in a bottle.” Olay Quench Radiance lotion and Ultra Healing 24-hour moisturizer. For its part, Olay is also distancing Radiance Natural Glow, which is designed to darken skin up to itself from self-tanners, taking pains to Reviver one shade after two weeks of use, will sell for $5.99. avoid words like “color” and “sun” and According to industry sources, Natural Glow could gener- using “radiance” and “kissed” instead. Bill ate between $25 million and $40 million in first-year retail Brace, Olay Marketing Director, comment- sales. It will be available in two shades — one appropriate ed that Radiance Reviver’s attributes are for fair skin and the other for medium complexions. Given in line with the brand’s overall positioning, the lotion’s color-imparting ability, users are encouraged to “to provide products that are not only help- wash their hands thoroughly after applying. ful and scientifically sound, but that make Jergens senior brand manager Brian Rudie noted that the women look beautiful in their own skin.” launch intends to tap into the $4.5 billion “skin color-enhance- He added that “women told us they ment category,” which in addition to lotions, includes salon were looking for a product that gave them services like the bronzing spray Mystic Tan. To distinguish glowing radiant skin, without going to the Natural Glow from its “color-enhancing” predecessors, Rudie extreme of self-tanner.” explained the lotion works more gradually than a self-tanner to Olay will preempt Jergens Natural build a “healthy summer glow.” He added that the product com- Glow by premiering its Radiance Reviver bines two steps — moisturizing and self-tanning — rather than in February. The product, available in nor- Jergens Natural Glow add another step to a woman’s beauty routine. mal skin and dry skin formulas, will sell for “First and foremost, Jergens is a moisturizing brand. a suggested retail price of $6.99. People have been buying and trusting our products for more Olay will introduce Radiance Reviver with an advertising campaign that starts in April. than 100 years,” noted Rudie. The effort will include print, broadcast, online initiatives and p.r. initiatives. The key mes- Natural Glow is the first collaboration between the Jergens and sage will focus on the product’s ability to “provide customized radiance for every woman.” John Frieda creative teams. In August, the two companies began Industry sources anticipate Radiance Reviver will generate $50 million to $60 mil- officially operating under the corporate banner Kao Brands Co., lion in first-year sales. which in the U.S. was formerly called Andrew Jergens Co. Although Jergens and Olay will be the first introduced products in what is now dubbed Rudie cites the effort for premium packaging and upscale in- the “color-enhancing moisturizers” segment, more players are expected to follow. Seidl Leaves New Facial Shines Light on Fighting Wrinkles Zotos Intl. NEW YORK — In an extreme example of and the complexion was evening out.” automatically. Because of post-session “night NEW YORK — Bob counter-intuitive beauty marketing, a Costa Although there are other light-based beauty vision,” clients are advised to allow their eyes Seidl, president and Mesa-based skin care concern is recom- therapies currently offered through day spas to adjust before hopping off the table and chief executive officer of mending clients bake under an ultrahigh- and dermatologists, services such as Intense zooming out the door. Zotos International, is beam light box aimed directly at their faces. Pulsed Light and Thermage differ in what Afterward, Lumière clients are urged to leaving the company And here’s the even wackier part: The 20- Mead refers to as their “mechanism of action.” use the “home care” photoceuticals and effective Jan. 31. Seidl minute procedure, dubbed Lumière and “IPL, cold laser, Thermage — they all pro- nutraceuticals, which are included in the joined Zotos in 1999 and marketed through tanning salons, is meant duce results through purposely inflicting con- package price. The seven-item range most notably oversaw to remove wrinkles — not create them. trolled damage on the skin, which in turn stim- includes a cleanser, exfoliant, toner, daily the 2002 acquisition of Based on the concept of “photodynamic ulates the production of collagen,” said Mead. moisturizer, facial sunblock, repairing night Joico, created the therapy,” the Lumière treatment was created “Lumière is different in that there’s absolutely cream and the dietary supplement. company’s ISO hair care in conjunction with companion ranges of skin no damage, so there’s no downtime. We just Within a year, Mead expects to have brand and formed the care and nutritional supplements. When part- use the light to energize the cell. And by apply- expanded Lumière’s distribution to 300 loca- Artistic Institute, a 4,500- nered with proprietary “photoceuticals” and ing the topicals first, we’re able to feed the skin tions — all essentially self-service. “We’ve square-foot test salon “nutraceuticals,” the Lumière device, which what it needs to produce collagen and elastin.” pretty much eliminated the middle man with and education center at delivers red light rays of 633 nanometers, is In November, Lumière made its debut in this process,” said Mead. “That’s why we’re in the company’s Darien, said to restore damaged skin cells to their American tanning salons. To date, 43 tanning tanning salons now. It fits their operating Conn., headquarters. more energized, youthful, original state. facilities in 15 different U.S. markets have model very well and those owners are used to Ron Krassin, the According to Raymond Mead, chief exec- signed on, installing the device and training making big capital investments. Tanning beds professional hair care utive officer of RAI Inc., which markets staff to sell the treatments in a series of month- aren’t cheap — some can cost up to $35,000. company’s chief Lumière, the premise of the new procedure long packages. The package price ranges from “We intend to offer this in other beauty- operating officer, will borrows heavily from mid-Nineties light- $99 to $369, depending on how many sessions service environments,” Mead added, “but I assume the role of wave data gleaned from the U.K.’s Paterson are received throughout the 30-day period. For see it more for multistation hair salons than president in addition to Institute for Cancer Research. Through its the $99 “Vitalizing” starter package, for exam- day spas.” his current work in photodynamic therapy, the research ple, which is aimed at clients with the least Michael Higgins, owner of three Atomic responsibilities. facility has successfully deployed red light to amount of damage, only three sessions are Tan salons in California’s Orange County, Krassin, who joined treat nonmelanomic skin lesions. deemed necessary. The “Firming” package, was an early adopter on the Lumière front. Zotos in October from “Paterson understood that different pegged to those with clearly defined lines and Bringing the service on board in early Remington Products, wavelengths of light — in this case, 633 wrinkles, requires twice as many sessions. November in all three of his locations, will report to the nanometers — stimulated cells and helped Here’s how the initial Lumière experience Higgins said he’s pleased with the results. company’s parent, in the delivery of topical ingredients,” said unfolds: After viewing an explanatory video, “We’re very happy with it so far,” said Shiseido, in Japan. Mead. “They were exploring photosensitiz- potential clients and tanning salon staff assess Higgins. “And it’s actually attracting a pretty Krassin said his role ers intended to kill cancer cells, so they the level of skin damage and decide among wide range of clients. Although most have will include running the were applying topicals and then exposing three starter regimes — Vitalizing, Repairing been women in the 30-plus category, we do company’s day-to-day the lesions to 633 nanometers of light.” and Firming. Just prior to the treatment, the have a couple of younger people. In fact, operations and focusing Evidently, the Paterson team stumbled clients cleanse and prepare their skin with there’s a 15-year-old who has been using it to on bringing innovative upon a few unintended side effects. “What “session” photoceuticals. Then they stretch clear up a bad acne situation. She’s absolute- product to market. they noticed throughout the course of treat- out on a spa table, don protective eye goggles, ly ecstatic.” Zotos also makes the ment was that, not only was it effective for pull the Lumière device down close to their Although RAI executives would not dis- Bain de Terre, Quantum treating the cancer, the skin was rejuvenating faces and push the start button. Within sec- cuss figures, industry sources forecast first- Browns and Silk Result itself,” said Mead. “Deep wrinkles were start- onds, light beams crank up to full intensity. year sales of $8 million for Lumière. lines. ing to soften, dark patches were subsiding Twenty minutes later, the device clicks off — Dana Wood — Andrea Nagel WWD, FRIDAY, JANUARY 14, 2005 9

WWW.WWD.COM Wet ‘n’ Wild Takes Markwins Into Big League

NEW YORK — Markwins International is playing with the big beauty brands. The new facial products will be available in March priced at $3.99 for the This spring, its Wet ‘n’ Wild division will add several new items including an Ultimate Sheer Tinted Moisturizer and $2.99 for the Ultimate Cover Smooth Ultimate Sheer Tinted Moisturizer and an Ultimate Cover Smooth Foundation. Both Foundation. Other products are getting a makeover. There is a new waterproof mas- are advanced, quality formulations not typically associated with budget brands. cara priced at $2.99, as well as an eyelash curler and a retractable eye pencil, Wet ‘n’ Wild has been owned by Markwins International and has operated as priced at only $1.99 each. In nails, Wet ‘n’ Wild is extending its offer to include a Markwins Beauty Products since 2003 when the California-based company acquired French Manicure Set and MegaLash Strengthening Nail Polish. “These products the brands from AM Cosmetics. are as good as any higher-priced versions on the market These two sophisticated launches illustrate just how far Markwins has pro- and American women know that. They want value,” said gressed from its roots as a supplier of inexpensive imported blockbuster kits to a Jim Koeppl, who also was just named executive vice full-fledged beauty resource with estimated president and general manager. Koeppl now reports sales exceeding $200 million. “They are directly to Markwins’ chairman and chief executive of- playing with the big boys now,” said industry ficer, Eric Chen. The restructuring is more proof that observer Allan Mottus. Critical Mass the division is on a growth course for Markwins. Once considered just a seasonal and pro- By Faye Brookman As part of the acquisition, Markwins also gained motional resource, Markwins is now classi- the Tropez brand. In order to differentiate it from fied as a major beauty manufacturer — one Wet ‘n’ Wild, the company has retrofitted the line with brands giving established names such as Revlon and Del to appeal to multicultural and young shoppers. A Laboratories’ NYC a run for their money. cornerstone of the new look is the introduction of Markwins got its start selling promotional blockbusters to Temptations by Tropez, a collection of gloss- department stores under The Color Workshop banner sever- filled flowerpots. al years ago. The next step was mass market kits bearing a Black Radiance was also part of AM’s portfolio, variety of names such as ACT. The company established and under Markwins’ tutelage, it also has been its own production plant overseas, allowing it to launch improved. There is more upscale fixturing and value-packed kits at sharp prices. “I don’t know how they new packaging. can put such quality out at such cheap prices,” wondered Overall, retailers report Wet ‘n’ Wild is still one competitor, who asked not to be named. one of the fastest-growing brands. Several chains The kits have been staples at chains such as Walgreens, report it has experienced double-digit gains — Wal-Mart, Kmart and even Kohl’s. and that’s against a flat market. CVS is finalizing Five years ago, these kits supplanted fragrances as mass’ best- a test pitting Wet ‘n’ Wild against NYC; currently, selling holiday item. This Christmas, Markwins initiated category some stores carry one and some the other. management programs for the division that resulted in While there have been changes at the higher-than-ever sell-throughs, according to Markwins Markwins Beauty Products division, Markwins International’s Bill George, president of North International is also no longer just a resource for kits. American operations. “Markwins is always a Last year, the company added a collection created by Christmas staple,” said Valerie Cheyney, buyer for Victoria Jackson. Although it has had a slow start, many Happy Harry’s in Newark, Del. “As always, retailers think it will be an important niche col- Markwins did well this year.” Wet ‘n’ Wild’s lection. At the other end of the age spectrum, But the kits are only one part of the Ultimate Markwins introduced a line of Bratz cosmetics Markwins story. The acquisition of AM was a Sheer Tinted that have attracted faithful Bratz consumers. turning point for the firm. Many retailers’ eye- Moisturizer. Markwins International also has had its hiccups. brows were raised when Markwins acquired Although the company is the most powerful re- AM and its Wet ‘n’ Wild, Black Radiance, Tropez source for holiday merchandise, this year, it has been troubled by and Jonel logos. The concern was whether a com- backups at ports. Some retailers did not get all of their orders for pany known for promotional imports could sustain a the Christmas selling period. major beauty force. The company hopes problems at points of delivery will ease Shawn Haynes, who just this week was promoted to senior in 2005. vice president of marketing for Markwins Beauty Products There also have been those who believe the kit business has eroded International, is the first to admit it wasn’t easy. All of the systems used by overall beauty sales. “The kits are inexpensive, so dollar sales are low AM Cosmetics needed to be integrated with Markwins. Even within AM, there and it takes shoppers out of the market for a long period of time,” said in- were different programs used for different brands. The first few months were rocky dustry expert Mottus. Markwins’ George disagrees. “We don’t see any drop- — shipments were late and retailers wondered if Markwins had taken on too much. off in repeat business. Customers don’t always use up all the colors in the kit In less than a year, however, Markwins brought shipment rates back up to 98 per- and they buy more,” he said. cent and embarked upon a reinvigoration program for the brands. This year will be one to watch Markwins, buyers said, as the company launches Starting with Wet ‘n’ Wild, Markwins Beauty Products has upgraded the look and sophisticated and sometimes higher prices under the Wet ‘n’ Wild logo, and as it fixturing of the budget brand. For spring, there is a flood of new items with plans tries to extend beyond kits. But with women seeking the best price for the dollar, down the road for entry into skin care. most chains said they’ll keep their dollars with Markwins.

Susan Sarandon Revlon Ads Retain Hollywood Flavor will be in Revlon’s NEW YORK — Revlon’s ad campaign aims to do more than just deliver the company’s new product message. For the first new Age time in years, Revlon’s TV, print, online and in-store ads will all reflect the same images concurrently, a feature that’s Defying likely to resonate a consistent message with consumers, and maybe even generate a sales boost. ads. “In the past, we were never able to achieve this because in-store lead time is 12 months and ad lead time is three months,” said Martine Williamson, Revlon’s director of brand marketing. “We never knew what we were doing [prod- uct wise] a year in advance,” she added, so magazine ads didn’t match what consumers saw in stores during the same time period. Now, the company is on track and is even making product and ad plans for 2006, Williamson said. Revlon’s latest print and TV campaign features its newest spokesmodels: Susan Sarandon and Kate Bosworth. Strategically, each celebrity targets a different demographic: Sarandon, older women; Bosworth, the younger set. Both Sarandon and Bosworth will tout Revlon’s new products, such as Fabulash Mascara, an item that takes the com- pany into the everyday mascara business, and a retooled Age Defying line. Beginning Monday, Bosworth will be seen in TV ads touting Fabulash. Later this month, TV spots featuring Sarandon will appear for the Age Defying brand, along with Revlon spokeswoman Julianne Moore. This year’s ad efforts tout a much heavier product message. Last year, Revlon’s new product portfolio was slim; in turn, its movie-like Bellissimo ad campaign featured A-List actresses Moore and Halle Berry, without much reference to product. But Revlon held on to its Hollywood contacts: moviemaker Robert Altman directed the new ads, which also cast Eva Mendez, who will be the lead spokeswoman for SuperLustrous. For the second half of 2005, Bosworth and Berry are scheduled to appear in ads for Revlon’s color cosmetics and nail products. The ads are said to “detail sumptuous color, packaging and formula statements,” according to Williamson, not- ing that colors and formulations have been designed for the brand’s core nail and SuperLustrous products. Four 30-sec- ond and four 15-second spots were created. Print ads, which were photographed by Peter Lindbergh in New York, begin appearing in February beauty magazines. Industry sources estimate Revlon has earmarked as much as $100 million on advertising in 2005. Maybe the new effort will bring much-needed sales gains. For the third quarter, ended Sept. 30, sales slid 7 percent to $294.4 million, compared with $316.5 million in the same period a year ago. — Andrea Nagel 10 WWD, FRIDAY, JANUARY 14, 2005

The HBA Report WWW.WWD.COM Spa and Salon Openings Gear Up in 2005

SPA ON THE GO A CUT ABOVE NEW YORK — The jet set now have a place to go to slow down and relax. Literally. NEW YORK — He may look like the quintessential Oasis Day Spa at the JetBlue Airways terminal at John F. Kennedy International Aussie surfer, but Manhattan-based salon owner Airport celebrated its grand opening last month, making it the hub’s first spa open Rodney Cutler is out to prove he also has a serious to the public. (Molton Brown operates a spa in the British Airways terminal, but it head for products. is reserved for first-class passengers only.) Bruce Schoenberg, part owner and co- Cutler, who’s worked at Bumble and bumble founder of Oasis, said the $500,000, 1,000-square-foot location could generate and now owns a salon on 57th Street, has crafted more than $600,000 its first year in operation. Sales, he said, are now derived 40 a six-item line based upon hair care needs that percent from retail sales and 60 percent from spa services. Business is dependent arose from his and his employees’ work. on walk-ins, mainly from flight cancellations and delays. Each product is formulated with ingredients such Oasis, which operates three spas in Manhattan, aims to be a little different than as wheat protein, said to protect hair from heat and to other airport spas by being a bit more “ambitious in offering different types of give volume and shine; jojoba, sweet almond, rice and services. Plus, ours is more upscale,” Schoenberg said. A private room, for example, oat proteins, for moisture; UVA and UVB sunscreens to

is available for waxing and massages and signature treatments, such as the Oasis minimize color fading, and a multivitamin complex of TURNER DAVID PHOTO BY Relaxing Eye service and Facial Moisturizing treatment, which are offered in vitamins A, C and E for moisturizing and antioxidant abbreviated versions. The airport Oasis sells brands such as Redken, Bain de Soleil, properties. The line comprises Daily Shampoo, $14; Rodney Cutler’s new hair care products. TIGI and L’Occitane, as well as Oasis’ own Blue Oasis skin care and bath line. Daily Conditioner, $15; Extra Gentle Shampoo, $16; Since promotion is prohibited at the airport — “the industry does not like to Intensive Conditioner, $17; Curling Creme, $17, and biweekly submissions from his lab, which he would advertise that there are delays” — Schoenberg looks to generate more consumer Straightening Creme, $17. send back with notes such as “close, but let’s interest by being added to JetBlue’s Web site later this year. — Andrea Nagel A seventh stockkeeping unit — a $19 styling decrease the viscosity,” or “this needs to be paste that’s still being tweaked — is slated to slightly firmer.” Cutler’s salon clientele and staff A look at Oasis Day Spa at the JetBlue Airways terminal. follow in late February. While he wouldn’t played the willing guinea pigs for the products comment on projected first-year retail sales, until they were spot-on in Cutler’s eyes. industry sources estimate Cutler’s line could top Attention to detail was followed through even to $500,000 in first-year sales just from his salon the products’ scent. Not wanting to rely on a stock and a soon-to-be opened new location. fragrance, Cutler worked with oil house Mane to Cutler, who began his hairstyling career at 16 as develop a signature fragrance — a subtle floral — an apprentice at Australian salon Rifmik, said, “I for the products. Blue stripes on bottles mimic didn’t want to do products just for the sake of doing those found on the walls of his salon. them. It was important to me to do a targeted line — At first, products will be sold exclusively from you can never be all things to all people. I wanted to Cutler’s salon (and the upcoming branch that will make sure that these products were the best, even if open later this spring). Later this year, however, that meant going back to the lab six or seven times.” Cutler hopes to expand to upscale specialty stores Indeed, for most of 2004, he was getting and possibly to selected salons. — Julie Naughton PHOTO BY ROBERT MITRA ROBERT PHOTO BY

YIN AND YANG The multibillion-dollar spa and ON THE MARK NEW YORK — Kai Bao, the owner of Yin Beauty & Arts spa, a place NEW YORK — One salon proprietor is hoping to make his that looks to bring Eastern philosophy to the Upper East Side, is salon industry isn’t showing any mark on the men’s side of the salon industry. now launching a skin care line. The intimate, 1,200-square-foot Howard Silver, who runs two West Palm Beach, Fla., spa at 59 East 79th Street has crafted products using organic signs of slowing down. On the salons, Harvey C. Salon and Salon U, is poised to roll out herbal antioxidants and plant-based ingredients, such as Orange contrary, new locations — his self-created 12-item men’s hair care line next month. Blossom Cleansing Milk ($28) and Face Firming Complex ($75). Mark for Men, which consists of eight in-salon treatments and Bao drew inspiration from her spa’s treatments to create the especially in New York — are four at-home products, is being used in several salons in the products, which combine acupuncture and acupressure with Northeast. Silver would like to see Mark for Men in 2,000 U.S. Western ingredients such as retinol. Bao expects the line to bring opening at a record pace. Here, salons this year. He is in negotiations with three salon distributors. in more than $500,000 in first-year sales. The assortment’s eight concentrated hair treatment Treatments include the $150 Yin Signature Treatment some of the area’s latest places products are designed to either thicken or control hair and facial, which uses herbs and ingredients specially formulated to get primped and primed, and are meant to be applied by salon staff once a month by an aesthetician. immediately following a shampoo. The treatments process in “With Eastern medicine, you don’t just focus on one the newest products to help three to five minutes, enough time for the complex mix of thing,” said Bao. “If someone breaks out, I do a skin antioxidant vitamins, proteins and humectants to take effect. treatment. But I do internal treatments with herbs and consumers get some Silver, who worked with Shiseido’s Zotos International to acupuncture, as well.” — Bryn Kenny formulate, manufacture and package Mark for Men, expects beautification at home. $10 million in first-year sales. — Matthew W. Evans

THE STRAIGHT STORY Vigdis Boulton, MAMA BEAUTY NEW YORK — What’s a girl to do when all she wants is left, and best NEW YORK — The spa world has capitalized on many concepts. There’s the chocolate- a quick blowout? She can pay an exorbitant price at friend Jennifer themed spa, the stone concept and a spa that has crafted its insides to resemble an igloo. her regular swanky salon or go thrifty, leaving her Denton, co- Now, pregnant women are the focus. The latest effort from Mothers Work Inc., the compa- tender locks to the mercy of one of Manhattan’s owners of ny behind Motherhood Maternity, Mimi Maternity and A Pea in the Pod maternity clothing generic chain salons. Best friends Jennifer Denton soon-to-open stores, is Edamame Maternity Spa, a beauty center that uses treatments specially created and Vigdis Boulton think there’s a happy, wallet- Blow Styling for the pregnant form. friendly medium. Salon. Edamame Spa is the latest addition to the In early February, the two plan to open Blow company’s new superstore concept, Destination Styling Salon, nestled on West 14th Street, where the Maternity, which ranges from 4,500 to 7,000 menu will consist of only blowouts and what they’re square feet and features all three clothing calling “glam dos” — updos, chignons, French twists, brands, as well as play stations for kids, relaxing et cetera. Meaning: no cuts, no coloring, with a price stations for dads and a gift shop. that’s right — blowouts will cost $35, while more The spa, said Rebecca Matthias, founder, elaborate styles will be $75. And understanding that president and chief operating officer of the the city’s stylish ladies keep an eye on the clock, $500 million public company, is the final step expedience is the word. “The blowout will take half an in its mission to cater to pregnant women. hour,” said Denton. Body, skin and massage treatments are offered, With her husband, Jason, Denton also owns ’Ino, the West Village eatery that became such as the Mom-to-Be New Life massage, the famous as Martha Stewart’s favorite stop for sandwiches. The Dentons also helped Mario Batali Green Clay Balancing facial and the Hydra open Lupa. She and Boulton, both 33 and mothers of toddlers, have been best friends since Memory Deep Hydrating treatment. She claims they met in junior high school. “We were managers of a store when we were 16,” said Boulton. Edamame is the first spa of its kind. “We wanted to go back to those days.” Matthias worked with Richard Kevney — the The friends spotted a need in the market for a well-priced, quick salon that has an exclusive creator of Toppers spa in Philadelphia — to de- atmosphere. “I’ve been dedicated to an uptown stylist for years who cuts and colors my hair,” sign Edamame’s treatment list and calming con- said Boulton. “But I was going to any of those chain places in my neighborhood for a blowout.” cept. The spa uses Comfort Zone products, an Clients will be treated to the usual amenities of fancy coffees and waters, but on weekends, Italian skin care line from the Davines Group. they can sip on Persecco, the Italian champagne. Featuring bamboo floors, Expanko cork tiles The first Edamame opened earlier this month in and a muted palette of rose, brown, beige and white, Blow Styling Salon will be open seven Charlotte, N.C. Another opening is planned for days a week and, as Denton noted, “from early in the morning for working women to late in the Boston on Jan. 28, and a third is scheduled for evening for the going-out crowd.” — Nandini D’Souza Edamame Spa caters to pregnant women. White Plains, N.Y., on Feb. 3. — Andrea Nagel PHOTO BY TALAYA CENTENO TALAYA PHOTO BY WWD, FRIDAY, JANUARY 14, 2005 11 WWW.WWD.COM Media/Advertising Shhhhh!!! Fun New Cover Line Secrets By Sara James magazine’s voice. moment is one that’s also an old standby: For instance, though Lawhon and sex. NEW YORK — New for spring: 785 ways Wells may not think the big numbers Marie Claire featured the word in to be sexy, beat stress, and sleep better work, Marie Claire editor in chief Lesley various permutations no less than six while cutting down belly fat. Jane Seymour said they definitely click times on its January ’05 cover, while its OK, those don’t exist. But judging from with her readers. “Marie Claire has to latest February issue has five mentions. the whirl of magazine cover lines out have a big number [on its cover]. For us, “We always have a sex line,” said there right now, they very well could. it is a brand marker. It’s like the italics Seymour. “Let’s be honest: Sex sells. We Magazine cover lines often seem on the Coca Cola can.” decided, let’s not be shy about it.” subject to the whims of fashion — as Weeklies, of course, present their own Neither are the editors at Self — that much, if not more so, than the clothes set of cover line challenges. magazine’s January cover implausibly inside their pages. Each year, certain “[People is] not about irony,” said asks, “Want Sexier Sex?” words gather buzz, enter cover line Larry Hackett, the magazine’s deputy “We never used to use the word ubiquity and then peter out. managing editor. People sells close to a ‘sexy,’” said Wells. “Partly because it So which words dominated the million-and-a-half single copies each meant the act of sex, something more headlines in 2004? “Stress,” “sleep” and week with its straightforward cover lines. vulgar. Now ‘sexy’ is synonymous with “sexy.” And while it’s still a bit early to “We’re not about snarkiness...We try to attractive and vibrant.” predict the clear favorites of 2005, certain keep the adjectives to a minimum Indeed, ever since In Style began aspects of crafting cover lines will never because we’ve found that readers don’t using “sexy” on its cover back in 1998 for change — namely, the mistakes editors like being told what to think.” its first “What’s Sexy Now” package, the make in trying to pick a winner. Added Janice Min, editor in chief of word’s meaning has morphed to the Just ask Kate White, editor in chief of Us Weekly, which was up 47.3 percent in point where editors use it to modify just Cosmopolitan, which sells an average of newsstand sales for the first half of last about anything. Last week, Us Weekly more than two million copies on the year: “The world we live in now is so offered “Sexy New Diet Secrets.” Has newsstand each month. “Sometimes I driven by news and this feeling that you “sexy” become a beast? look at magazines and the cover lines are have the latest. [You want the reader] to Covering all the bases: November ’04 Allure. “People repeat their winners,” said too universal or too broad,” said White. feel that if they devote 30 minutes to your Warning of another perennial pitfall, magazine as opposed to something else, Cindi Leive, editor in chief of Glamour, they’ll walk away with more information.” THEY GOT OUR ATTENTION IN 2004: which sells less than one million copies Of course, there are those occasions on the newsstand, said editors when getting the “latest” news can be an 1. Is It an Itch...or Cancer? (Redbook, January) sometimes unintentionally outsmart embarrassment. Just look at this week’s 2. Terrorists And The Movies: Can Hollywood Make Us Safer? (Reader’s Digest, October) their readers. Star, which promises “Brad & Jen Back 3. Russell Crowe: Why I Bit My Bodyguard (People, September 13) “It could be the cutest, cleverest thing On! It’s Baby Time!” — when in fact they’d 4. Dude, Where’s My Jesus? (Esquire, May) in the world,” said Leive, “but if it leaves split over the weekend. However, [the reader] scratching her head, it’s American Media editorial director 5. Sex Sessions That Ended in the ER (Cosmopolitan, October) meaningless.” Bonnie Fuller is already in the Cover Line 6. When UFO’s Arrive, What Will You Do? (Popular Mechanics, February) Another surefire way to tank at the Hall of Fame since her Cosmopolitan and 7. Mall Perverts: Are These Gross Guys Spying on You? (Seventeen, November) newsstand: mimic the cover line style of Glamour days introduced enough orgasms another magazine. to exhaust even the randiest reader. 8. Grizzly Attack: Death of the Man who Sang to Bears (Men’s Journal, January) “I learned very quickly when I got to And while they may feature a star on 9. Can You Spot the Sneaky Fat? (Ladies’ Home Journal, March) Seventeen [after editing Cosmogirl], it’s their covers, juicy celebrity cover lines 10. The Greening of Britney Spears (Outside, March) not going to be the same formula,” said aren’t nearly as important for the Seventeen editor in chief Atoosa monthlies as they are for the weeklies. Rubenstein. “People rip off their “The cover line that identifies the stressed last year than the year before,” White. “So that’s why you see the same competitors’ cover lines, and that’s not celebrity [on the cover] and what the said White. “Between the economy and things over and over again.” Instead, she necessarily going to work.” story is about usually ranks really low the war that won’t go away, I’m sure she’s said to climb out of a “cover line slump” Neither will try to cram too many lines with our reader,” said Wells. going to feel stressed again this year.” editors should “go someplace they on a page, in the hopes that at least one will Leive added that focus groups are But, as with those formerly inescapable haven’t been before” — even if that resonate with anyone who picks up the invaluable when trying to predict cover Uggs, ubiquity can mark the beginning of means taking a few risks. magazine. line success. “If you show [a focus group] the end. “I actually found stress pooping Guessing at what will prompt readers “I think the biggest mistake people a cover, and they immediately repeat the out lately,” Marie Claire’s Seymour said. to buy this year, Min said, “I have a make on covers is the massive number of words back to you, that means you have Likewise, though “diet” is a perennial feeling people are going to want to have tips,” Allure editor in chief Linda Wells a hit.” winner, Men’s Health editor in chief fun in 2005. Maybe the word ‘fun’ will said, describing the classic bait and switch. If that’s true, then “stress” has David Zinczenko believes it has lost some pop up more. And I think people are “The key is not overpromising, because it recently been on everyone’s lips. In 2004, of its weightiness as a result of all the really into ‘pretty.’” might sell this issue, but end up losing the the word popped up on covers across hype over Atkins and South Beach. “I’ve Jane editor in chief Jane Pratt added, reader over time.” categories, from Seven Sisters titles to noticed that weight loss is moving fewer “We just coined the term ‘scandalite,’ Charla Lawhon, managing editor of In the more unlikely publications Seventeen magazines than before...[Now] it’s more which we use when referring to anyone Style, agreed. “I do think there’s a (“Stress Less! 3 Easy Ways,” February ’04) about body-shaping.” like Paris Hilton, Tara Reid or Lindsay credibility issue when they see those [big and Men’s Journal (“Reduce Your Stress,” Hence, perhaps, the popularity of Lohan. We hope it will catch on, but you numbers].” February ’04). And it’s not likely to go “belly fat,” which graced the cover of never know.” So what does work with cover lines away anytime soon. Good Housekeeping twice in 2004. — With contributions from then? Well for starters, maintaining the “Our reader says she was more Paradoxically, the hottest word at the Jeff Bercovici

supposed to look like a job doesn’t sound all that sexy: about that.” newspaper, and I said, ‘Forget He’s a journalist who writes The anti-diva thing isn’t just an about looking like a newspaper mostly about the science of how act, confirmed Danielle Sacks, MEMO PAD — make it a newspaper,’” she people process and act on who wrote the cover story on said. Karan added that she liked information. But Gladwell, who’s Gladwell in January’s Fast PAPER CHASE: DKNY’s new ad the format because it allowed for a staff writer at The New Yorker Company. “He’s strikingly a campaign is inspired by one of the presentation of so many (a unit of Advance Publications mellow guy,” she said. “He life’s great pleasures: reading the different looks without resorting Inc., parent of WWD) has been literally looks at his life like a case Sunday paper. Shot by Peter to a collage. “It’s a huge brand called a guru, a rock star and a study. He’s intrigued by things Lindbergh and styled by Patricia to get out, and we keep on trying marketing god. A party Fast that happen to him but doesn’t Field, the campaign breaks in the to capture it all in one picture.” Company threw Tuesday night to take them personally.” But Sacks March issues of five magazines — The campaign, which will celebrate the publication of his could attest to the Elvis-like effect Vogue, Vanity Fair, British Vogue, include ordinary singles and new book, “Blink: The Power of Gladwell has on his fans in the W and Interview — in the form of spreads in a wide range of Thinking Without Thinking,” business world: “You mention his an insert created to look and feel magazines, also lends itself to a drew a capacity crowd to name and people freak out — like the style section of a variety of clever marketing ploys, Elaine’s, the Upper East Side they get so excited.” newspaper — specifically, The including newsracks and street literary haunt. In other Fast Company news, New York Times. (Vogue, Vanity teams of newsboys to hand out Asked whether he’d rather be owner Gruner + Jahr, which Fair and W are all part of Advance the insert. known as “guru” or “rock star,” merged the title’s sales staff with Publications Inc., parent of WWD.) DKNY’s newspaper-esque insert. And what section of the Gladwell replied, “Who wouldn’t that of Inc. last April, is now The concept had its genesis advertising for all of Donna Sunday Times does Karan reach prefer rock star? Unfortunately, I preparing to unmerge them. Lee in DKNY’s fall show at Pastis, Karan’s brands. “What do people for, to borrow from the don’t think either is in the Jones, who now serves as group which had a Sunday brunch do on Sunday morning in New commercial? “OK, I turn to the cards.” Worried lest anyone publisher of both titles, will theme. “Donna wanted it to be a York? The first thing you do is Style section first. I’ll admit it.” should think his head had grown resume his role as publisher of reflection of the show,” said Trey read the Times.” — Jeff Bercovici along with his Afro, he added, “I Inc., and Fast Company will hire Laird, president of Laird + The newsprint insert was don’t, by the way, think of myself a new publisher of its own. Partners, which handles Karan’s flourish. “It was TO AND ‘FRO: Malcolm Gladwell’s as a guru, so let’s just be clear — J.B. 12 WWD, FRIDAY, JANUARY 14, 2005 WWW.WWD.COM Penney’s May Reenter Beauty Sector

Continued from page one While a beauty strategy would have to period — without doing hysterical things. Myron Ullman Though the chain is deep into its five- be formulated, a plan for off-mall expan- We stayed on our promotional plan.” year turnaround and on course to hit its sion is already proceeding. According to Next was to meet the employees. earnings targets for 2004, Ullman — who Ullman, at least several hundred off-mall Rather than get too hands-on with tweak- is considered among retailing’s most pol- locations in the next few years are pro- ing the business during the critical holiday ished, strategic and systems-oriented ex- jected. Ten are operating and 12 are season, Ullman met with the top 40 execu- ecutives and not a merchant — did talk planned for this year. They’re generally tives in the corporate office in Plano, Tex., merchandising and marketing during his 100,000-square-foot boxes merchandised as well as mall developers, key vendors, presentation. similarly to Penney’s mall stores and rep- investors and sales associates. He held He was most detailed discussing him- resent a head-on assault on Kohl’s. town meetings with associates, recently in self and his successful career, having However, as Ullman said: “we have 1,000 Phoenix and Orlando. “They were very held top posts at Macy’s, LVMH Moët stores in major malls. That’s the core cranked up about what worked and what Hennessy Louis Vuitton, Wharf Holdings business. We are not going to move the didn’t work,” Ullman said. “Usually, peo- and Duty Free Shoppers, rather than needle dramatically in the near term.” ple closest to customers have the truth. specific Penney’s strategies. He said an Among other strategies and objectives The [closer] you get to the corporate office, April 18 analysts meeting will be “the ap- cited by Ullman: the more the truth is manufactured. I try propriate time to talk about what our ● Spending $250 million on new point- to meet people where they are, bring them views are for next five years.” of-sale systems to make shopping easier. resources and bring them support. The Still, he hinted at what’s ahead, stat- The POS has real-time access to the idea that I will come in and pick the ing it would be “foolish not to assert our- Internet and Penney’s Web site for sweaters is not what I am about.” selves” at a time when Sears and Kmart greater ease of shopping, and a broader Ullman said Penney’s has four private are merging and taking time to think scope of goods. brands each doing more than $1 billion about what they want to do. ● Elevating EBIT performance to the in sales: Stafford men’s wear, Arizona He said Penney’s “major opportuni- top quartile of department stores. “Our denim and related products, Worthington ty” is growing the top line, rather than performance, while very good, is still not careerwear and the J.C. Penney Home cost-cutting, and “to make our stores in the top quartile. A realistic objective Collection. Penney’s also has the nation’s nonfrequent shoppers. The quality is good more productive as we do a better job in is to say we want to be in the top quar- largest window-treatment business, esti- and with the quota situation changing, we merchandising.” tile.” The 6 to 8 percent range is the im- mated at more than $400 million. can make the quality even better.” That’s particularly true in beauty. “The mediate target, while the top quartile, for Penney’s has the country’s largest jun- Target, he said, does a terrific job at get- traditional department store has really the future, requires 8 to 10.5 percent, he iors’ and boot businesses, and women’s ting its message out, but doesn’t deliver on owned prestige beauty brands,” said explained. career is first or second largest. Kids, the promise. Penney’s is just the opposite. Ullman, who dealt with those products at After he took the Penney’s job, Ullman men’s suits and furnishings are also core Ullman said he envisions greater co- his stints at both LVMH and DFS. “We have said he set some priorities. “The first was strengths. Less developed are women’s operation between Penney’s three selling to take a look. We have one of the biggest to stabilize the team. People had not an- casual, men’s sportswear and certain channels — stores, catalogue and salon businesses in the country and we ticipated Allen [Questrom, Ullman’s pred- home areas. But, he added, “it’s way too Internet — including the ability to inte- might want to think of some aspects of ecessor] leaving a year early and Vanessa early to pontificate upon merchandising grate catalogue fulfillment to stores, and beauty that we don’t have in the salon.” [Castagna, chairman and ceo of J.C. opportunities. develop more targeted catalogues. He At Penney’s stores, “clearly, center Penney stores, catalogue and Internet] “It’s about having style. It’s not about also said it can capitalize on its new tech- core is not as productive. We took beauty not being selected. We got through that fashion. Value is another word I don’t nology providing state-of-the-art plan- out. There may be an opportunity.” process successfully. like very much….I prefer to say cus- ning and allocation capability. Penney’s Penney’s has reportedly been meeting “The second was to appoint the top tomers want to be smart about what they is in the early phase of utilizing these with mass cosmetics manufacturers to team as soon as possible.” Last week, pay. They’ll spend $800 on a cashmere systems, but “we will make great strides build the category. The company virtually Ullman named Ken Hicks as president sweater at Louis Vuitton and feel pretty there,” with planning and allocation bailed out of it in early 2003 when it and chief merchandising officer, and smart. That same customer would drive aligned under Ken Hicks. cleared out cosmetics offerings to beef up Joanne Bober became chief counsel. A 25 miles out of their way to save 10 cents Asked by an analyst why he was at- accessories, dropped Avon’s BeComing re- chief operating officer is being sought. on paper towels at Costco….I do believe tracted to joining the company, Ullman tail brand that was in 90 stores as well as Hicks also is in charge of planning and it’s about style at a smart price. We have said that “leaving an imprint on such a Revlon’s Ultima II, which was carried in allocation. Ullman made other realign- the biggest junior business in the coun- very big company is persuasive.” But 435 doors. Iman cosmetics and other lines ments, including moving loss prevention try. We have fashion in the store. But how there was an even greater reason. One also were dropped, though a small from general counsel over to stores. do we get credit for it? How do we get the day he asked his wife what time she was amount of fragrance, bath products and The third priority was “not to screw customer to explain to their neighbor going to get up and she replied that if he gift sets have been retained. The salons up Christmas….Essentially, we made the what they got at Penney’s? wanted to run something, he should get a sell skin and hair care products as well as plan we had — a 3.1 percent comp gain “The quality of our private brands is job. “I realized I wasn’t the ceo; I was in aromatherapy. for the combined November-December excellent, but that’s largely unknown by accounts payable,” Ullman joked. Apparel, Accessories Sales Down in Dec. USTR Asks for WTO’s Help

By Kristi Ellis of consumers to go out and shop.” Rosalind Wells, chief economist at the In Cleaning Up EU Customs WASHINGTON — The holiday selling season National Retail Federation, said November and ended on a solid note overall, but there were a December sales combined in the GAFS category, WASHINGTON — The office of the U.S. Trade Representative has few weak pockets, including apparel and acces- which includes general merchandise stores; asked the World Trade Organization to establish a dispute-settlement sories store sales, which fell a seasonally adjust- clothing and clothing and accessories units; fur- panel to intervene in a case it filed against the European Union over ed 0.6 percent in December, the Commerce niture and home furnishings stores; electronics what it claims are “inconsistent” EU customs laws and regulations. Department reported Thursday. and appliance retailers, and sporting goods, The U.S. charged Thursday that many aspects of the EU’s cus- Despite the mixed picture for December, the hobby, book and music stores, rose 5.7 percent — toms administration vary among its 25 member countries, which report showed strong sales growth in all retail “the strongest growth since 1999, and higher often “hinders” small-to-midsize U.S. exporters. sectors in 2004 over 2003. Sales at apparel and than last year’s 5.1 percent increase.” The U.S. accused the EU of failing to administer its customs accessories stores rose 3.3 percent last year, “Even after all of the hand-wringing by retail laws in a uniform manner or to provide tribunals for prompt re- while sales at general merchandise stores in- analysts, the holiday season ended on a strong view and correction of administrative action in customs cases. creased 7 percent and sales at department stores footing,” Wells said in a statement. “Post-holiday Such “barriers” affected a portion of the $155.2 billion in U.S. ex- were up 1.3 percent. discounting and gift card redemptions helped ports in 2003 to the EU, the USTR said. Sales at apparel and accessories stores, which provide a last-minute surge in spending.” Among the barriers U.S. exporters face are nonuniform prod- also fell in November, dropped to $15.89 billion in The NRF had been predicting a 4.5 percent uct classifications among EU member countries, which leads to December, while sales at general merchandise increase in GAFS sales since September. varying tariff rates and makes it complicated for exporters. stores rose 0.7 percent for the month to $43.1 bil- “Though we were projecting a solid holiday “These problems fall particularly hard on small and midsize lion and sales at department stores increased 0.2 season, the final outcome was better than we ex- businesses, which often lack the resources to work their way percent to $17.9 billion. pected it would be,” said Tracy Mullin, president through member-state and EU bureaucracies in order to reconcile The report showed consumers generally loos- and chief executive officer of NRF. inconsistencies in classification or valuation in different states,” ened their purse strings for the holidays and Steidtmann pointed out, however, that elec- said the USTR in a statement. gave retailers a needed boost. Sales at all retail- tronics sales have weakened, falling 0.2 percent The issues affect U.S. manufacturers and retailers that oper- ers during December rose an unexpected 1.2 in December, but showing an increase of 3.3 per- ate stores in other countries. percent against November and were fueled by cent against a year ago. Eric Autor, vice president and international trade counsel at strong increases in auto sales, which were up 9 “One of the surprising elements of this report the National Retail Federation, said one of the key objectives of percent from a year ago. was electronics were weak,” Steidtmann said. “It the current WTO round of global trade talks is a “harmonization “It shows that consumers have a great deal of tends to be home-related and the housing market of customs rules.” fire power,” said Carl Steidtmann, chief econo- weakened in the fall.” “As this industry becomes more global, not only in terms of sourc- mist at Deloitte Research. “When you consider He noted that catalogue and Internet sales ing but also in terms of setting up retail operations in other countries, there is relatively little inflation in the retail sec- were strong, posting a 1.9 percent increase in these [customs] issues are becoming more important,” Autor said. tor, it really shows an amazing ability on the part December and a 14.3 percent gain over a year ago. — K.E. WWD, FRIDAY, JANUARY 14, 2005 13 WWW.WWD.COM

WE HEAR: That Minnie Driver will wear a custom-designed Randolph Duke grey and silver Deco beaded lace gown on Sunday; Natalie Portman may show up wearing Chloé and Van Cleef & Arpels; Kirsten Dunst is considering a black-and-white polkadot Derek Lam slipdress; Fashion Scoops best actress nominee Emmy Rossum will don another custom-made Ralph Lauren confection very in keeping with her “The Phantom of the Opera” character, and Badgley Mischka, still DIAMOND DEAL: Century-old jeweler Kwiat has formally teamed up with Lisa Michelle Boyd, in the process of transitioning to new owner Candie’s Inc., is dressing celebs in archival stylist to Charlize Theron, to design a red-carpet collection that will make its debut at Oscar gowns this year. time. About a year ago, Boyd expressed interest in moving beyond styling and Kwiat stepped up to the plate. Not only will the jewels likely adorn Boyd’s star client, but the house, which WILLIAMS DROPS THE DENIM: Serena Williams’ latest tennis looks has only been in the awards-season game for four years, has found a new, newsworthy way Serena’s are a little tamer than the racy motorcycle outfits she sported at to stay in the limelight. transformed the U.S. Open in September. At the Australian Open, which starts Meanwhile, De Beers/LVMH has devised another way to encourage stars to wear its jewels look. in Melbourne on Monday, Williams will wear a new collection of by offering to donate an undisclosed sum to the star’s charity of choice. It’s given more than apparel and footwear designed in conjunction with her sponsor, $10,000 to AmFar in the past two years, and already is set to make a donation to Youth Nike, some of which also will be available to consumers. Styles AIDS on behalf of one star. include a “transform” dress in colors of white, lime and blue with mesh paneling that can be worn either as a dress with keyhole LUNCH LINES: It just might’ve been the first time they’d eaten all cutouts and shorts underneath or as a tank top and shorts. The week. At W’s annual stylist brunch, the busiest bods in town — bold black boots Williams wore at the Open are still around, but stylist Rachel Zoe Rosensweig, Alex Keeling, Jeanne Yang and vintage have been updated in lighter hues. Perhaps she’s hoping that the guru Cameron Silver among them — took a break from dressing lighter attire will help her make it to the finals this time around. Hollywood to dish and chow at the Chateau Marmont penthouse. They perused one-of-a-kind gowns from BCBG Max Azria Atelier, GIRL POWER: A trio of female designers will headline the Gen Art Fall 2005 Fashion Show at Cassis jewels and Kérastase products. Talk revolved around red- the Roosevelt Hotel Ballroom in New York Feb. 4. The featured collections include carpet trends, including colored stones, vintage and vintage-inspired Charlotte, Vena Cava and Society for Rational Dress. Society for Rational Dress — already a gowns and cutouts. No one could come to a consensus about color: hit with A-listers such as Britney Spears, Jennifer Aniston and Faith Evans — is no stranger to Black, white and jewel-tone frocks are all being considered. Gen Art. The Los Angeles-based company, founded by designer Corinne Grassini in 2002, Phillip Bloch stopped by to talk up Clothes Off Our Backs, the was part of the Gen Art lineup in L.A. in April 2003. charity founded by Jane Kaczmarek and Bradley Whitford. The cause puts red-carpet gowns worn by celebs now through the CHIC FOR SALE: From her gowns to her bedclothes, Denise Poiret, the wife of designer Paul Oscars up for auction on eBay, with proceeds going to the UNICEF Poiret, was celebrated for her modern and timeless style in the early years of the 20th Tsunami Relief Fund. So far, Felicity Huffman, Teri Hatcher, Denise century. Come May 10 and 11, the designer’s granddaughter, Perrine, plans to auction off Richards and Destiny’s Child have some 150 pieces of her wardrobe, and hundreds of other personal effects, at Paris auction signed on, and Renée Zellweger, house Piasa. And none other than Azzedine Alaïa, a Poiret aficionado, plans to exhibit some Jennifer Garner and Jessica Simpson Stylist Rachel Zoe of the dresses at his Marais headquarters. Not that the designer is only looking back. He are expected to follow suit. Bloch Rosensweig. also disclosed that he just asked sci-fi specialist Marc Newson to design his next boutique: also is reaching out to designers, an accessories unit across from his headquarters on Rue de Moussy. asking Elie Saab to donate gowns worn by Salma Hayek and Catherine Zeta-Jones. PACKED BAGS: Louis Vuitton’s communications director Mimma Viglezio, who joined the Also in attendance was Jennifer Rade, stylist and pal to French firm from Bulgari 15 months ago, has resigned from the post. A Vuitton Angelina Jolie, who won’t be in town for the weekend’s spokeswoman confirmed her exit Wednesday, and said a successor has yet to be named. festivities. But Rade made fast friends with stylist Susie Crippen (who dresses Emily Procter and Jorja Fox of “CSI”), STARCK ME UP: Paris’ Hotel de Crillon, better known for demure debutante balls than who was wearing her own brand new line of jeans, J Brand. Decades' Cameron raucous Rolling Stones parties, is taking it up a notch. It has tapped design guru Philippe Rade flipped for the long, skinny classic wash denims and Silver and Lubov Starck to glam up its sleepy bar. But don’t belly up for a cosmo just yet. The project won’t said that Jolie would, as well. Those million-dollar legs could Azria. be completed until early 2006. be in J Brand soon. Calif. Deliveries Still Slowed Hard Candy Founder Enters T-Shirt Arena By Nola Sarkisian-Miller ates 80 trains a day between the By Nola Sarkisian-Miller Arnold said. L.A. basin and the Midwest, and is She and her husband said the line crosses LOS ANGELES — After an almost a key mover of cargo from the ports LOS ANGELES — Can a Japanese art-infused gender and age boundaries, much the way two-day shutdown in service in of Los Angeles and Long Beach, the T-shirt line succeed if it’s designed by an Hello Kitty and Paul Frank do. the Los Angeles region because of nation’s busiest seaport complex. Italian and run by an American and Iranian- Legno, 27, said he didn’t think it was that heavy rains, Union Pacific Corp. Service through Cajon Pass American? odd to fly more than 6,000 miles to meet two said Thursday that two of its four east of L.A. to the Bakersfield The formula may work and then some, con- strangers on a whim, especially when he was main rail lines reopened while area was cleared and the rail line sidering the line is the brainchild of Hard plying his craft for clients such as John the other routes remained closed. between downtown L.A. and Candy Cosmetics co-founder Galliano and Toyota. The disruption meant ship- Union Pacific’s main West Colton Pooneh Mohajer Arnold and A T-shirt “I love to travel, and they pers, including major retailers, switching yard near San her husband, Ivan Arnold. from the seemed to have the right had to reroute freight by truck or Bernardino — about 60 miles east Ten years after she and new business attitude,” he said. through a rival carrier. of L.A. — was open. her sister, Dineh, launched Tokidoki “And, they trusted my in- Tracks were damaged by mud Repairs to a fifth line that had the cosmetics line in line. stinct.” slides and flooded from the two- been partly closed were also com- Beverly Hills, Mohajer Their venture is a cut- week downpour that has caused pleted. Arnold is again putting her and-sew T-shirt line silk- about 20 deaths statewide. The routes to Las Vegas, which brand-building IQ to the test screened with quirky, vi- For now, major retailers said goes to Chicago, and the Pacific with the launch of Tokidoki. brant, animated images, they were able to avoid delays. Coast to Oakland were still shut. (The sisters sold the Hard both sweet and sassy, from a “This is the slow season in the “We don’t have any estimates Candy company to LVMH wide-eyed bunny to a slurp- industry,” said Robin Lanier, trans- of when rail service would be re- Moët Hennessy Louis ing “ramen girl.” Wholesale portation adviser to the National stored there,” Bromley said. Vuitton in 1999 for a report- priced at $15, the line’s Retail Federation, who estimated The delays are the latest ship- ed $14 million. In 2003, moderate price point has an that about 50 percent of the appar- ping crunch for the apparel indus- LVMH sold the brand to opportunity to reach both el-related cargo from the ports try, which weathered clogged ports Miami-based Falic Group.) ends of the target age group moves by rail. “If this were the hol- during the busy holiday shipping Her husband, who runs of 14 to 35. idays, it could be really serious.” season last year. Much of those de- damnBRAND, a Los Arnold said the line’s Wal-Mart Stores Inc. said it lays stemmed from the railroad, Angeles-based Web design strength also lies in its re- was in “good shape” because of which faced worker shortages and online management tail versatility. “We can sell “contingency plans” involving the when many took early retirement. company whose customers it to skate stores, contempo- diversion of goods, said spokes- The forecast is expected to be include Trina Turk and rary stores and gift stores,” woman Sharon Weber. dry for the next 10 days with a A.B.S. by Allen Schwartz, he said. J.C. Penney Co. said it had “nominally tiny risk” of rain in stumbled upon the Tokidoki Already at Rafael in the shifted merchandise to trucks the northwestern part of Web site in his search for a graphic designer. high-end Ala Moano Shopping Center in and to another carrier. “There’s Southern California, said meteor- After an e-mail and a couple of phone calls, he Waikiki, Hawaii, and Studio 11 in Wilmington, been no disruption of goods get- ologist Dan Keeton of the had sent the site’s artist, Simone Legno, an air- Del., the line will exhibit at the street-inspired ting to stores,” said spokesman National Weather Service. line ticket to Los Angeles for a meeting. What Agenda trade show in San Diego beginning Tim Lyons. Los Angeles County officials was supposed to be a three-day visit lasted a today, then stage its major launch at MAGIC John Bromley, Union Pacific said property damage from the month and ended in a 50-50 partnership be- International in Las Vegas in February. spokesman in Omaha, Neb., said storms is estimated at $30 million. tween the Arnolds and Legno. The company plans to sell the wares on its the last time such a wide disrup- L.A. Mayor James Hahn de- “I saw his artwork and was practically Web site, which attracts 10,000 unique visi- tion occurred was in the mid- clared a state of emergency, esti- doing cartwheels, it was so good,” Mohajer tors daily. Nineties because of Midwest flood- mating damage in the city at $10 ing. Union Pacific normally oper- million. 14 WWD, FRIDAY, JANUARY 14, 2005

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Will take the product from www.crbapparelsearch.com Textile importer in Manhattan seeks Salary commensurate with experience. inception to final approval and be proficient in implementing import produc- To submit a resume for these qualified person as Production Coordinator Please E-mail resumes with cover letter to: opportunities please email resume to: &Product Assistant. Bilingual Chinese [email protected] tion packages. Knowledge of Board Sports will be a help. [email protected] &English a must, 2 yrs. experience with college degree, working knowledge of TECHNICAL DESIGNER the textile or garment industry, strong Receptionist / Admin. follow-up & computer skills required. Est’d. high-end Retailer / Wholesaler is We are seeking a Tech designer with a minimum of 3 years experience. Merchandiser Please e-mail: [email protected] or looking for someone who must be Responsibilities will include creating and updating Spec Packs, working Est. 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Great tracking shipments, garment pricing. patternmaking and garment construc- LIVE/WORK Back Bodice length - 16 3/4’’, tion. Knowledge of Excel a must. Small 1 BR SHOWROOMS...... $1575 in the mid & mass markets. This opportunity! Fax/E-mail resumes to JH @ Front Bodice length - 15’’. Must have at least 2 yrs exp in production. position is responsible for logistics, 212-719-2653 / [email protected] Call (212) 354-1283 Ask for Tony EOE. Please Email resume to Please fax resume with salary req’s to: Large 1 BR SHOWROOMS...... $1795 (212) 564-5201 Attn: Angela Wood floors. Hi ceils. Doorman. Immed. design, product development, P&L [email protected] 212-629-8694 - MON-FRI - NO FEE accountability, budgeting, staff super- vision, and growing our business w/a major account. 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Midtown large Com- ADAMS & CO. 212-679-5500 (212) 557-5000 F:(212) 986-8437 [email protected] [email protected] sume in confidence to Cathy: 212-239-8825 pany. Call 973-564-9236 Jaral Agency. WWD, FRIDAY, JANUARY 14, 2005 15 Obituary WWW.WWD.COM Achille Maramotti, Founded Max Mara Marionnaud Said Sold By Alessandra Ilari as they were accessible and wearable. was an innovator in another sense: He To Firm in Hong Kong He inherited a passion for fashion from was among the first in the fashion MILAN — Achille Maramotti, founder his great-grandmother, Marina Rinaldi, world to collect modern art. Working PARIS — Marionnaud Perfumeries reportedly of Max Mara Fashion Group SpA, died who ran a high-society atelier in the with him, Lagerfeld said, “was a very has been sold. Wednesday after a long illness. He heart of Reggio Emilia. Inspired by the nice memory.” The ailing French perfumery chain was ac- was 78. coquettish styles of legendary French Added Gianfranco Ferré: “When I quired by A.S. Watson, a Hutchison Whampoa True to its low-profile modus operan- designers, Maramotti tweaked them was starting off, Maramotti was already Ltd. subsidiary, according to the Agence France di, the company declined to comment on with precise tailoring, clean silhouettes an enlightened entrepreneur with a far- Presse wire service here. any details, but, according to Italian and lean proportions toward a more sighted vision. He strongly contributed Neither Marionnaud executives in Paris press reports, Maramotti died in the Italian fashion sensibility that was Max to this industry when it was still nascent, nor Hutchison Whampoa executives in Hong family’s castle near Reggio Emilia. A Mara’s signature. and I have always followed the develop- Kong could be reached for comment. private funeral was held Thursday. When the Swinging Sixties exploded ment of the company he founded with With the addition of Marionnaud, Hutchi- Maramotti’s fashion story started in London, Maramotti jumped on that enormous respect and admiration.” son Whampoa — which already owns Watsons, with a camel coat. That coat sold one bandwagon by launching Sportmax, a Though he remained group chair- Kruidvat, Trekpleister, Rossmann, Superdrug, million pieces, is the stepping stone of secondary line for the younger crowd. man, in the early Nineties, Maramotti Savers and Ici Paris XL in health and beauty Max Mara’s success story, and is now Over the years, Max Mara has passed the torch to his three children: retailing — would become one of the world’s on display at London’s Victoria & worked with such marquee names as Luigi and Ignazio Maramotti, chairman largest, if not the largest, prestige fragrance Albert Museum, at the Fashion Mu- Karl Lagerfeld, Domenico Dolce and and vice president of Max Mara srl, re- sellers. seum of Paris and in Copenhagen’s Stefano Gabbana, Jean-Charles de spectively, and Maria Ludovica Mara- Marionnaud itself boasts more than 1,230 Industry museum. Castelbajac and Narciso Rodriguez. But, motti, chairman of the group’s Manifat- perfumeries. A law graduate, Maramotti turned in true Max Mara style, it was always a ture del Nord division. As reported, the chain’s stock price lost the fashion conglomerate he founded low-key affair, with the clothes taking But resting on his laurels wasn’t on more than 30 percent of its value on Dec. 21 in 1951 into a 1.1 billion euro, or $1.43 precedence over the designers’ names. Maramotti’s agenda. Aside from boast- following its posting of net results for the billion, empire with 30 lines and 1,830 Photographers who have shot ad ing one of Italy’s largest private art col- January-June 2004 period. Losses came in at doors in 90 countries. Its collections in- campaigns for the brand include Sarah lections, Maramotti honed his financial $104.3 million, or 79 million euros, against net clude Pianoforte by Max Mara, I Blues, Moon, Paolo Roversi, Peter Lindbergh, skills. He was a majority shareholder profits of $8.5 million, or 6.4 million euros in Marina Rinaldi, Pennyblack, Max & Co. Richard Avedon and Steven Klein. and deputy chairman in Credem, a the first six months of 2003. and Marella. Most of the lines include “He was a very charming man, with publicly listed Italian bank; he sat on The perfumery chain’s first-half 2004 re- sportswear, accessories and knitwear. a lot of class and style,” said Lagerfeld, the board of Mediobanca, Italy’s mer- sults were negatively impacted by changes in Maramotti tapped into Italy’s desire who designed several collections for chant bank, and was a counselor in accounting methods concerning loyalty points to emerge from the ashes of World War Maramotti early in his career. “I think Unicredit Bank. and the correction of errors dating back to II, building Max Mara’s fashion reputa- he did a lot for Italian ready-to-wear.” — With contributions from 2002 and 2003. tion with clothes that were as elegant Lagerfeld recalled that Maramotti Luisa Zargani and Miles Socha It was rumored that both Douglas and Galeries Lafayette were interested in buying Marionnaud. But on Dec. 27, it was Distripar Deborah DeFusco, co-chairman of SA that acquired a 5 percent stake in the the dinner and president of Mimi French perfumery chain. Shenkar College Fetes Rhonda Brown Maternity & Destination Maternity at Marionnaud’s stock was suspended from Mothers Work Inc., said, “Education trading on the Paris Bourse Tuesday in the run- By Evan Clark fashion, textiles and jewelry design. around the world in our industry is up to an announcement regarding a “financial “The school is expanding rapidly,” necessary and makes us all stronger.” operation,” Marionnaud said in statement. NEW YORK — The awards dinner for said R. Stephen Rubin, chairman of Rhonda Brown, president and chief It is expected the deal with Hutchison Israel’s Shenkar College on Monday at the college’s board of governors. executive officer of footwear, acces- Whampoa will be announced today. Cipriani on East 42nd here couldn’t Rubin declined to say how much sories and the retail group at Jones The company, run by Li Ka-Shing, posted help but have a political undercurrent money was raised, but said the funds Apparel Group, received the Inter- consolidated sales of approximately $18.6 bil- given the state of affairs in the would help encourage diversity at the national Entrepreneur Award. lion, or 145 billion Hong Kong dollars, in 2003. Mideast. school based in Ramat-Gan. Other honorees included Joe Falo- Hutchison Whampoa is a diversified conglom- The benefit, staged by the American “A lot of it is going to go to scholar- witz, Freda Greenbaum and Michael erate with businesses in sectors such as Committee for Shenkar College, sup- ships for Palestinian and Iranian stu- Greenbaum from ANoseForClothes; telecommunications, hotels and manufacturing. ports the design school, which has over dents — people who are good at design, Jeffrey Schwager of Jeffrey Schwager — Jennifer Weil and Brid Costello 2,000 students, many of whom focus on irrespective of race, creed,” he said. sales, and Zvi Yemini of Zag Industries.

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