J. CREW’S NET TRIPLES/2 WAL-MART’S PRICE PLAN/2 Women’s Wear Daily • The Retailers’ Daily Newspaper • June 1, 2007 • $2.00

▲ Eva Green, the face of Midnight WWDFRIDAY Poison. Beauty Page 7. Break Out As it nears 40, Clinique is looking to teenage concerns such as acne and the Internet to retain its status as the number-one U.S. department store brand. In July, the new Acne Solutions version of the venerable Three-Step skin care regimen will hit counters, accompanied by an extensive Internet campaign. A month later, Clinique will begin rolling out a new program aimed at retaining sales staff and educating customers. For more, see page 6.

Lights, Camera, Action: Showbiz Moguls Become Fashion Players By Miles Socha one, followed by the celebrity- But, observers say, it’s now a elcome to the third stage as-designer (a phenomenon that new world and entertainment Wof fashion’s romance with shows no signs of abating — pick a bigwigs are emerging as brand celebrity and entertainment. star and she’s bound to be talking owners, backed by powerful Designers hiring celebrities of launching her own fashion investment funds. as their faces in ad campaigns collection because, of course, every Recent transactions include and on the red carpet was phase woman wants to dress like her). See Fashion’s, Page 12 PHOTO BY GEORGE CHINSEE; STYLED BY DANILO MATZ DANILO GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, FRIDAY, JUNE 1, 2007 WWD.COM Wal-Mart Focusing on Low-Price Roots By Katherine Bowers ing less than 10 percent of the During a tour of a Sam’s Club assortment, in the middle, fash- store in Bentonville, Ark., Patty WWDFRIDAY ROGERS, Ark. — Despite a flir- ion basics such as ruched polo Warwick, who oversees apparel, Beauty tation with higher-end merchan- shirts and, at the bottom, items jewelry and handbags as senior dise, Wal-Mart Stores Inc.’s top such as basic T-shirts. She spoke vice president, said the division FASHION apparel executive on Thursday near an area promoting the No is “trying to cement and develop Phillip Lim channeled an “eternal seaside picnic” with his resort lineup, recommitted the retailer to bar- Boundaries juniors line that direct relationships “with com- 4 while Rachel Roy looked to “glass and sand” for her cocktail frocks. gain prices and rollbacks. touted the environmental ben- panies such as Prada, Coach Claire Watts, executive vice efi ts of bamboo and cotton-blend and Kate Spade, and with other president, apparel merchandis- T-shirts priced at two for $12, high-end manufacturers.” GENERAL ing, said during a media tour of marked down from $7.43 each. Since Sam’s Club caters to Vowing to bring innovation and pizzazz to the clothing business, bigwigs a Supercenter prototype here She said the retailer would a more affl uent customer base 1 from the entertainment world are emerging as important new players. that Wal-Mart’s core strategy feature major displays of items in on average than Wal-Mart, the BEAUTY: Nearing its 40th birthday, Clinique aims to grow by returning to is focused on price leadership. which it believes it can be domi- warehouse division could be a its youthful roots and tapping into the power of nontraditional media. That philosophy built it into the nant, such as Bermuda shorts, learning opportunity for the par- 6 world’s largest retailer, but in an tank tops and cotton jersey shorts. ent fi rm if Sam’s Club succeeds Sears Holdings Corp. reported that fi rst-quarter net income increased 20 effort to move upscale the com- The tour occurred during in forging more relationships 11 percent to $216 million, but sales fell 2.5 percent to $11.7 billion. pany has made missteps in ap- Wal-Mart’s third annual media with key brands. Furla will mark its 80th anniversary with an exhibit at Tokyo’s Museum parel and other categories. conference. It was a prelude to “Jewelry has helped us es- “You’ll see rollbacks, ‘save the annual shareholders’ meet- tablish a good position with our 11 of Contemporary Art and a new project dubbed Retail Design Hub. even more’ [signs] and two-for- ing today, which comes amid female member,’’ giving credibil- Tiffany & Co. posted fi rst-quarter profi ts that beat Wall Street estimates $10 deals,’’ Watts said. “Our cus- increasing pressures related ity to Sam’s Club in other catego- 14 by a penny and raised full-year earnings per share guidance. tomer is really responding to it.’’ to the stagnant stock price, ap- ries, Warwick said. Sam’s Club is Classifi ed Advertisements...... 15 She did not address Wal- parel blunders, the potential of ahead of last year in apparel but Mart’s mistakes in apparel, in- a second-quarter earnings miss is not meeting internal goals. To e-mail reporters and editors at WWD, the address is fi rstname. cluding the Metro 7 line that and challenges to the retailer’s Sam’s Club is ending a test of a [email protected], using the individual’s name. has been reduced and the fi rst corporate image. program to sell men’s suits. “It was designer label, George ME by On another issue, Wal-Mart’s not a great success,’’ she said. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT Mark Eisen, which has been sig- chief merchant, John Fleming, In another development, the ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 193, NO. 117. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one nifi cantly scaled back. Instead, was questioned about the re- New Jersey Supreme Court on additional issue in January and November, two additional issues in March, May, June, August and December, and three Watts talked about “winning in tailer’s desire to open in urban Thursday certifi ed a class-action additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance essentials’’ and stressed that markets to reach new custom- lawsuit against Wal-Mart fi led by Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive “we try to be sensitive to how ers. “There’s a lot of complexity current and former employees Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human much money they (customers) in segmentation,’’ he said. “It’s who alleged that the company Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail have in their wallet.’’ a work in progress. It will be a did not give them required meal Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: Asked about $20 items in year or so before we’re fully acti- and rest breaks, and forced SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA Metro 7 and George ME, Watts vated with merchandise for each them to work off-the-clock. The 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE said, “Those prices are above area’’ throughout the stores. 5-to-1 decision revived the New INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new where we want to be,’’ adding And Doug McMillon, presi- Jersey workers’ lawsuit, which subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production that Wal-Mart would still sell dent and chief executive offi cer had been refused class-action correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, some key seasonal apparel in of Sam’s Club, Wal-Mart’s $40 status by a trial judge and an ap- please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other the $20 to $30 price range. billion warehouse chain, indi- pellate court. Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. Amid images of the com- cated that the unit will not be Wal-Mart spokesman John If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA pany’s ubiquitous smiley face spun off or sold, and that there Simley said the company was 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, symbol and signs promoting was nothing imminent regard- disappointed with the decision OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED rollbacks, Watts reaffi rmed the ing a potential takeover of the and was studying its options. MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR model of Wal-Mart’s so-called third-ranked warehouse com- “It’s our policy to pay every as- CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR triangle — at the top, fashion- pany, B.J.’s Wholesale Club Inc. sociate for every hour that they DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. forward merchandise compris- of Natick, Mass. have worked,’’ he said. Strong Margins Boost J. Crew Quote of the Week

By Jeanine Poggi “Another big trend we are quarter of 2006. Direct sales gained seeing is people are starting to 31 percent to $86.6 million. To grow and strengthen our business, . Crew Group delivered first- use us as an alternative for their The preppy apparel retailer “ Jquarter earnings Thursday designer needs, coming to us for said on a conference call to Wall an IPO would be more in line with our that surged on robust gross mar- their high-end specialty store Street that it expects second- gins and strong same-store sales. and designer store merchan- quarter earnings in the range strategies, compared to selling part of For the three months ended dise,” Drexler explained. of 26 cents to 28 cents a diluted May 5, net income more than tri- On a conference call with share. Full-year earnings are the company to new partners. pled to $24.6 million, or 39 cents analysts, Drexler said, “As we expected to be in the range of — Cristiana Cavalli, chief executive offi cer, ’’Roberto Cavalli a diluted share, from $7.8 mil- move into the second quarter, $1.37 to $1.41 a diluted share lion, or 12 cents, in the year-ago we continue to drive productiv- from previous guidance of $1.27 period. Analysts expected earn- ity through executing our store, to $1.31 a diluted share. ings at about 30 cents per share. direct and new concept growth During the quarter the com- Sales for the quarter rose plans as well as maximizing our pany opened six new J. Crew 20 percent to $201 million from inventory investments. Our num- stores and plans on rolling out 37 In Brief $167.1 million, while same-store ber one focus is and will always stores this year. With Crewcuts, more stores are also planned. People are starting to use us as an “We expanded distribution ● NO MORE TALKS: Foot Locker Inc. on Thursday said it was of Crewcuts during the quarter, no longer pursuing a proposal to acquire all of the outstanding alternative“ for their designer needs, opening 12 new shopping shops common shares of Genesco Inc. The announcement followed and one new stand-alone store an earlier statement Thursday morning from Genesco saying coming to us for their high-end specialty in Palm Beach Gardens, Fla.,” that its board rejected a higher bid from Foot Locker at $51 Drexler said on the call. “We now a share. Genesco previously rejected a $46-a-share offer from store and designer store merchandise. operate 24 shopping shops and Foot Locker in April. Genesco also said Thursday that it invited ” three stand-alone Crewcut stores, Foot Locker to participate in a “process” on the same terms — Millard “Mickey” Drexler, J. Crew Group and plan to open additional fi ve to as other interested parties, but that Foot Locker declined. The 10 shopping shops and one stand- parties are believed to be private equity firms, as reported. sales jumped 13 percent. Total be meeting our customer’s needs. alone for the balance of the year.” Goldman Sachs is Genesco’s financial adviser. revenue rose 24 percent to $297 When it comes to satisfying our In an interview, Drexler said million. Adjusting for shifts in customers, there are no layers of the company sees Crewcuts as the retail calendar, comps in- management here to get through, being no different than J. Crew. creased 8 percent. and we don’t sleep at night until “We started it because we found Millard “Mickey” Drexler, they have all been satisfi ed. Also parents wanted a better alterna- Corrections chairman and chief executive of- importantly, as we have said be- tive for their children,” he said. Lisa Kline was incorrectly named as a retailer of Dear Cashmere fi cer, said in an interview that in fore, we plan the business con- “If you look at the market, there on page 18 of the May issue of WWD Los Angeles. The line is car- “the macro sense, what we are servatively with midsingle-digit are not many better alternatives ried at Horn. seeing is that our customers want comps and commensurate in- out there. We don’t want to be ● ● ● to buy things that will stay in their ventory and maintain our focus the biggest children’s retailer. We Bruce Nordstrom, retired chairman of Nordstrom, did not con- closet for a long time. They want on productive real estate.” want to be the best.” tribute to Sen. John McCain’s presidential campaign. This was to upgrade their wardrobe and re- During the quarter, the gross Shares of J. Crew rose $1.88 to unclear in a story on page 11, May 8. It was another person with plenish, and turn to us for our clas- margin rate increased to 46.6 per- $46.75 in after-market trading after the same name not affiliated with the company. sics. So we look to play long term. cent from 45.5 percent in the fi rst closing up 7.7 percent to $44.87. Catherine Zeta-Jones ©2007 Elizabeth Arden, Inc. ©2007 Elizabeth Arden,

The new fragrance

elizabetharden.com 4 WWD, FRIDAY, JUNE 1, 2007

InCalling all beach babes. PhillipFine Lim Form channeled an “eternal seaside picnic” with his 3.1 lineup of fl uid, layered dresses and crisp tops and shorts, while Rachel Roy looked to “glass and sand” for her cocktail frocks that feature origami folds and metallic appliqués resembling sand dollars. Resort isn’t all about fun in the sun, though. At Chaiken, Julie Chaiken went soft and pretty Tse Chaiken with looks “for the modern-day Audrey Hepburn,” and Tse’s Tess Giberson, inspired by puzzles, showed clothes that, she says, are “a graphic play of form, color and Rachel Roy texture.” Similar themes also were present in other collections. At Hervé Léger, for instance, designer Max Azria updated the label’s signature bandage dresses with geometric accents and bold hues, while at Dana Buchman, creative director Max Wilson was inspired by Piet Mondrian’s shapes and colors. WWD, FRIDAY, JUNE 1, 2007 5 WWD.COM

Dana Buchman 3.1 Phillip Lim Hervé Léger

PHOTOS BY JOHN AQUINO, TALAYA CENTENO AND STEFANIE KEENAN 6 WWD, FRIDAY, JUNE 1, 2007 The Beauty Report Clinique Outlines Action Agend

By Julie Naughton programs like Clinique’s do. “But no one who’s big in combination skin, Acne Solutions marks the fi rst time g’s can completely get out of that business. Instead, if that the brand has created a version of the program tar- earing its 40th birthday, Clinique is aiming to grow you can reduce the percentage from, say, 25 percent of geted at a specifi c skin condition. Nby returning to its youthful roots and tapping into the business to 20 percent, that’s signifi cant.” The line, launching in July, is built on four prongs: the power of nontraditional media. Jane Lauder, senior vice president of global market- exfoliation, antibacterial/microbial, antiinfl ammatory The brand was founded in 1968 as a dermatological ing for Clinique, agreed. “This isn’t about gift-with-pur- and basic oil control, said Janet Pardo, senior vice skin care line and ranks number-one in U.S. department chase. We’re not opening with a new gift and doing [all president of global product development for Clinique. store sales for women’s facial treatment and color cos- the business] in a single weekend. We wanted to take a “When you’re treating the acne, you have to be very metics. According to The NPD Group’s fi gures for calen- different approach, one that would grow our business aware of what’s going on with the rest of the face dar year 2006, the brand did $1.2 billion in retail sales for the long term.” —namely, a lot of irritation and infl ammation,” said overall in the U.S., with $452 million done in women’s Dillard’s, Macy’s and Bon-Ton will begin rolling out the Pardo. “We started putting these formulations together facial treatment and total makeup sales of $600 million. program in August. Confi rmed locations are Dallas and using a combination of various types of therapies, in- But even the strongest of brands needs a periodic Cleveland with Dillard’s and Chicago with Bon-Ton. Macy’s cluding salicyclic acid and benzoyl peroxide. We also freshening-up, especially when faced with a growing will put the program in 11 stores in Long Island, New York: found that it’s important to prescribe a regimen of crowd of upstart doctor brands — and Clinique global its units in Roosevelt Field, Smithaven, Massapequa, products — no one product is going to do it all.” president Lynne Greene is determined to do that with Manhasset, Huntington, Valley Stream, Hicksville, The fi rst product, Cleansing Foam, has 2 percent a new youth-oriented spin on its venerable Three-Step Commack, Bay Shore, Douglaston and Hampton Bays. salicyclic acid, as well as antioxidants. “It is very low in skin care line and an accompanying Internet initiative; “Clinique is really going back to its roots with this surfactants, so it’s gentle on skin. The second step is our a new consultant education program being piloted late program,” said Rob Smith, executive vice president of Clarifying Lotion, which also has 1.5 percent salicyclic this summer, and a retooled counter design. merchandising for Macy’s. “They’re putting a lot into acid and a lot of antiinfl ammatory ingredients. We also “Our mantra is cherish the past, but invent the fu- the experience for the consumer, and making it the best put some powder in the formula, which deposits the sali- ture,” said Greene. “We are inventing the future of possible environment for her. We need to focus on the cyclic acid onto the skin and mattifi es it. The last prod- Clinique with the same touchstones that Clinique was experience to continue to keep our customers coming uct, Oil Free Moisturizer, has 2.5 percent benzoyl per- originally founded upon. We clarifi ed what those touch- back to department stores. Clinique has always been oxide. The most important thing that we learned is that stones were, and decided how they should be amplifi ed strong in education for both sales associates and cus- you don’t have to have 10 percent benzoyl peroxide. All for the future.” tomers, but this program takes it to a new level. It gives that does is irritate the skin. We found that this combina- Those touchstones, said Greene, are simple: der- customers a reason to come back to Macy’s.” tion gives the skin the proper amount of hydration while matological heritage; allergy-tested and 100 percent The program will roll out throughout the fall. “We treating the acne. Healing shouldn’t have to hurt.” fragrance-free; youth accessibility and appeal, and the unique client experience. Lynne It’s that last point that Greene calls “the very Greene heart of Clinique,” and the leading edge of a group and Bill of initiatives. Dubbed the “Clinique Unique Client Dillard Experience,” it will include extensive counter rede- signs and an educational program that the fi rm is call- ing Consultant Accreditation, designed to boost the skill level of the people selling the brand in stores. Consultant Accreditation is a three-tiered program, which has been reviewed by Dr. Norman Orentreich, the founding dermatological consultant to Clinique, and his wife, Dr. Catherine Orentreich, as well as by Weill Cornell Medical College — where the brand has established the Clinique Skin Wellness Center — to im- prove consultants’ expertise on skin physiology. “The dermatologist, for Clinique, is what the back- stage is to makeup artist brands,” said Greene. “We work with these dermatologists all of the time, and we’re working to magnify that proposition. We’re am- plifying it with the relationship of the Clinique Skin Center at Weill-Cornell Medical Center — we have re- search programs with them, we have the center. We’re also working with them on the education program we’re doing with The Clinique Unique Client Experience.” The brand has also just signed a deal with the Translational Research Information Center in Kobe, Japan, for a similar program. “We’re always looking for new things to say about the skin, and new ways for our clients to use existing products,” said Greene. “That’s why we do a lot of the medical research that we do, and why we do the dialogue with the dermatologists.” also have education managers going into additional Cleansing Foam is priced at $17.50 for 4.2 ounces; The program — particularly the associate-develop- cities,” added Greene. But the complete counter rede- Clarifying Lotion is $13.50 for 6.7 ounces, and Clearing ment prong — already has several high-profi le fans, es- signs will take time to reach all doors. “We will roll out Moisturizer is $16 for 1.7 ounces. pecially Bill Dillard, chairman and chief executive of- 50 doors [of Clinique’s 2,200 U.S. doors] this fall, so peo- “It’s about authority for us,” said Lauder, noting that fi cer of Dillard’s Inc. During a rare interview Tuesday, ple can see how it is, and next calendar year, have the she expects Acne Solutions to strengthen the brand’s Dillard called the brand’s new customer experience numbers to determine where we’ll go next. We would infl uence in skin care. “Acne is never going to be the program “exactly the right thing,” and said he com- try to do 15 cities next year, and another 15 cities the biggest business ever; certainly, we could launch an eye mitted to be a part of it less than 10 minutes into the following year, and so on,” Greene added. cream and do three times as much [in sales] but this is brand’s presentation to him. The brand is choosing to do the rollout city by city to about authority. We want to illustrate that we are the “This program is helping people to better them- maximize impact, said Greene. “We’re the Queen Mary, place to come to no matter what your skin issue.” selves,” he said, adding that Dillard’s has had a similar not a rowboat,” Greene cracked. “It’s going to take time.” And, Greene added, Clinique will do that for entry- program in place for the past several years in other de- But it will be time well spent, she believes. “We want- level prices. “Price accessibility has always been very partments, including men’s furnishings. “Herb Kelleher ed to change the relationship between the Clinique cus- important for that younger consumer,” said Greene. “In [co-founder of Southwest Airlines] once said that to take tomer and the Clinique consultant,” said Greene. Rather 1968, Three-Step retailed for $21. If we had followed care of your customers, you have to fi rst take care of than trying to shove products at a consumer from behind infl ation for the last 38 years, it would now be $117. But the people who serve them. We believe that if you give a counter, the new design features a consultation area, we are that brand who is there for the department store people better jobs, they are less likely to feel that they called the Diagnostic Center, which puts both adviser to bring in the younger customer.” need to move on. That is especially true in cosmetics. and customer on the same side of the counter. “The cus- Globally, said industry sources, Acne Solutions The cosmetics business is about service, and if we’re tomer is also looking at products at eye level,” Greene could do as much as $30 million at retail in its fi rst year going to sell cosmetics effectively, we have to have great added. “The transaction becomes, ‘let me tell you about on counter. About half of that fi gure is expected to be salespeople selling them. We need to give customers a your skin, and let me tell you the products that are right done in the U.S. reason to buy from us and not from drugstores.” for the things you want them to do.’ It’s not the product In the U.S. alone, the Three-Step skin care franchise That’s increasingly important in a consolidating of the day — it’s very much about custom fi t.” is said to generate retail sales of more than $180 mil- retail market, not to mention one that is attempting One of the ways that Clinique differs from its compe- lion yearly. The 39-year-old franchise grew 6 percent to reduce its reliance on gifts-with-purchase. When tition, said Greene, is the brand’s ability to draw in cus- last year. Acne Solutions could add $30 million to that asked if brands could completely exit the gwp market tomers aged 18 to 24 years old — not traditionally an age total globally, with about $15 million of that fi gure ex- — long a staple for top department store names like group which shops in department stores. “There aren’t pected to be generated by retail sales in the U.S. “Two Clinique, sister brand Estée Lauder, and the L’Oréal- many people who can say that they’re partners with the out of every fi ve treatment products sold is a Clinique owned Lancôme — Dillard replied that it wasn’t likely, retailers in bringing that age group in through the door,” product,” said Lauder, “and Three-Step alone would be although reducing dependence on them certainly is. said Greene. To that end, the brand is launching Acne the number-two brand in unit sales if we separated it “Our industry gets hung up on g’s, but they don’t do any- Solutions, a version of its Three-Step Program that is out from the treatment business as a whole; Clinique thing for your long-range business,” said Dillard, noting designed for customers with chronic acne. While the would still be number one. But there’s a lot of distance that they don’t build consumer loyalty in the way that brand has versions of Three-Step for normal, oily and between the next brands.” WWD, FRIDAY, JUNE 1, 2007 7

WWD.COM a for Brand Growth

While Greene concedes that Clinique isn’t now percent watching broadcast TV. What we’ve seen — or will it likely ever be — a supertrendy brand, she is that there is a stark contrast between campaigns argues that the brand’s customers don’t want it to be. with one media element versus those which are sur- “We’re not ever going to be a funky makeup artist rounded by animation: the Internet, in-store, radio, brand,” said Greene, perhaps referring to corporate TV. If you do that, it’s successful. Otherwise, it’s not sister MAC Cosmetics, whose entry-level department enough to break through the clutter.” store price points compete with Clinique for dollars. Not to mention, Lauder points out, “You’re “We are what we are. You need to be true to who you reaching far more people [via the Internet], yet for are, because if you try to put on a phony face, ev- less of a cost. It’s the place where we think the most eryone in the world is going to know that. Our cli- growth will come from.” ents like to be pretty, but with a natural look. I’m not Still, even with something of a youth push, going to tell you that you’re going to be funky when Greene has no intention of alienating any of you walk out of here, but you’re going to have a pret- Clinique’s users. “Our clients fi t the bell curve ty, natural, soft look, and you’re going to have colors — we have clients who have never used anything which won’t irritate your skin. Over half of our cus- but Clinique, and are now taking their 15-year-old tomers who buy color from us say that it is because it daughters to the counter to introduce them to Three- is allergy tested and fragrance-free.” Step,” said Greene. “From an image point of view, Another major shift for the brand is the amount Clinique’s target is an 18- to 24-year-old. But what’s of capital that it is devoting to online and nontra- very important to us is that we also have products ditional marketing and adver- for that consumer who has tising. While none of the ex- been loyal to us for all of those ecutives would discuss fi gures, Our mantra is years, like Repairwear.” industry sources estimated “ The national magazine ads that the brand will spend about cherish the past, but for Acne Solutions, coming $5 million in the U.S. on adver- in August, will be something tising and promotion for Acne invent the future. of a departure for the brand. Solutions. Greene wouldn’t dis- ” Rather than the brand’s ar- cuss numbers, but did say that — Lynne Greene, Clinique tistic and iconic Irving Penn only about 30 percent of the shots, Clinique is running what advertising and promotional budget would be spent Greene calls “equity ads.” They are heavy on type and on traditional — i.e., national print — advertising. science and small on art. “They’re literally just talk- John Instead, the brand is heading heavily into the on- ing to the consumer about the heritage and the touch- Galliano line sector to get the word out about Acne Solutions. stones of Clinique. They feature big shots of Clinique and Eva “The majority of our efforts will be online,” said product —no faces — and conversational copy. Our Green Alicia Sontag, vice president of North American client is smart. She likes to learn new things.” marketing for Clinique. The campaign will include “We’ve been running black- and-white equity banner advertising, an online game which involves advertising in newspapers, but we wanted to take fl ying dots meant to evoke acne leaving the scene it to the next level,” said Lauder. Allergy-tested, Eva Green Tapped as Face quickly; working to make sure that the brand comes fragrance free — a tenet of the brand which is up quickly in acne searches, and a viral marketing repeated on every product and carton created by campaign for which Clinique is partnering with Clinique — will also get an advertising push with Of Dior’s Midnight Poison Alloy.com, the leading online youth destination site. an equity ad with the headline “One is a big num- “As an industry, we’re now catching up to a type ber at Clinique.” The thinking behind that, Lauder PARIS — Parfums Christian Dior has added French actress of marketing [i.e., Internet advertising] that other explained, is that even one customer having an al- Eva Green to the playbill for Poison’s latest act. industries now see as ‘traditional’ advertising,” lergic reaction to a Clinique product necessitates The LVMH Moët Hennessy Louis Vuitton-owned beauty said Sontag, adding that a viral marketing campaign heading back to the drawing board with that item. business on Wednesday feted Green’s selection as the face dubbed Clinique Beauty Boot Camp is also being After the current initiatives are launched, of Midnight Poison, the fi fth scent in the Poison fragrance developed with Alloy. “Our goal is twofold. We know Clinique will turn its attention to its key September franchise. that when consumers learn about acne, they trust launch, the Supermoisture Makeup foundation col- More than 150 guests dined in Paris’ Opera Garnier, their friends. So we wanted to get these products lection. “The idea is that it’s a foundation that thinks where the scent’s advertising campaign, directed by Wong into the hands of people who will use them, and like a moisturizer,” said Lauder. “It’s not just about Kar Wai of “My Blueberry Nights,’’ was fi lmed. In the com- want them to tell their friends.” shade or coverage; it’s about how skin reacts.” mercial, the actress is shown running in a billowing, glit- The Beauty Boot Camp will involve 2.5 million e- As well, Greene announced that the brand tering blue gown before swinging from the roof of the opu- mails to Alloy and Clinique customers, 30 million im- has founded the Clinique Nursing Scholarship lent gilded opera house. pressions through banner ads, and inviting consum- Program, which is designed to address and bring “It’s a modern Cinderella story,” said Green, whose ers to enter the Beauty Boot Camp. “We’ll select about attention to the huge shortage of nurses in the U.S. roles have included Vesper Lynd in “Casino Royale” and 10,000 people to send Acne Solutions sets to,” said “It’s a natural fi t with our dermatological heritage,” Isabelle in “The Dreamers.” Sontag. A channel on Alloy devoted to the line will said Greene. In addition to offering scholarships to For the soiree, Green sported a simpler version of the allow users to blog and chat about Acne Solutions. promising undergraduates, the brand is also offer- blue Dior dress worn in the advertising campaign. That type of interaction is critical, as Sontag ing recipients paid jobs at Clinique counters during “She has that triumphant femininity, which is the quin- observed earlier this year. “We have to follow the and after their schooling. While the fi rst winners tessence of the women that we love at Dior,’’ said Claude direction in which the consumer is evolving,” will come from the New York area, Greene has as- Martinez, Parfums Christian Dior’s president and chief she said. “For instance, our young consumers are pirations of eventually taking the program global. executive offi cer. “[She] is also a great artist with multiple spending 26 percent of their time online and 63 Lauder will be its spokeswoman. facets, fascinating and free.” Green said she dislikes what she considers strong “old lady” scents and often goes without fragrance, but noted Janet Pardo, she’s smitten with Midnight Poison. “It’s quite fresh com- Jane Lauder pared to the other Poisons — it’s younger, fresher, like the and Alicia commercial,” she said. Sontag. The actress said the storied French fashion house epit- omizes elegance, and designer John Galliano’s “kind of madness….It’s just cool.” Galliano and Green fi rst met after her signing, but she said the possibility of working with him was part of why she decided to ink the deal. “He has something edgy, not boring,’’ she said. “He’s not afraid of being controversial.” Green, whose beauty projects have included appear- ances in advertising for Giorgio Armani and L’Oréal-owned Club des Créateurs de Beauté, is the latest Dior celebrity spokeswoman, joining brand ambassadors such as Sharon Stone, Charlize Theron and Monica Bellucci. Throughout dinner Wednesday, Green chatted nonstop with Galliano, who was helping her prepare for her role in the movie “Franklyn.” The actress, who lives in London’s Primrose Hill neighborhood, will play an art student op- posite Ewan McGregor. “John went to Saint Martin’s School of Art,” she said. “He was teaching me how to speak and what kind of accent I should use.” — Ellen Groves CLINIQUE PHOTOS BY TALAYA CENTENO TALAYA CLINIQUE PHOTOS BY 8 WWD, FRIDAY, JUNE 1, 2007 The Beauty Report Arcona Thrives Under New Thumbprint

By Rachel Brown just racks and racks of products.” At the studio, treatment prices start at $85 for rcona Devan gained a celebrity following de- a signature contouring facial and top out at $225 Aspite herself. for a rejuvenation package with the signature fa- She planted her studio in Valley Village, a free- cial, an enzyme peel and a mask. Arcona products way ride from most starlets’ stomping grounds; range from $35 to $150, but a set of fi ve foundation treated all customers equally, and argued passion- products — a Golden Grain Gommage Exfoliator, ately against cosmetic surgery. Still, Devan’s holistic Magic White Ice Hydrator, Desert Mist Protector, approach to skin care attracted the likes of Anjelica Toner Tea Bar Cleanser and Treatment Solution Huston, Diane Lane and Julia Roberts, who fl ocked are recommended for normal skin — runs for to Devan, known by her fi rst name, until she died in about $200. Arcona’s “basic fi ve” products con- 2004, at age 60, from a long illness. stitute about 80 percent of the company’s sales. Taking over the skin care company from its Products on the docket for fall are a $68 Kiwi namesake put Chanel Jenae, vice president and Clarifying Peel, an $85 Peptide Hydrating Complex product developer, and Kevin Anderson, chief ex- and a $42 White Tea Purifying Cleanser. ecutive offi cer, in a delicate position: They wanted Because packaging “didn’t matter too much” to to stay true to Devan’s mission, but also put their her, Devan placed Jenae in charge of the products’ mark on the growing business. This year, they’ve look. Timed with the launch of the Santa Monica started to do the latter with a new studio, re- studio, Jenae has retooled the packaging to fi t her vamped packaging and a push to expand Arcona’s minimalist sensibilities. Textured cream boxes are product distribution. made from natural fi bers and printed with vegeta- “I don’t think Arcona fully realized how amaz- ble inks, while product casing spans several light ing the things she developed and her philosophy shades such as butter and silver, with the darkest [were],” said Jenae, an aesthetician and former em- hues signaling the night products. Instructions, ployee of distributor Caleel + Hayden, who began like whether products are for night or day use, are to work with Devan in 1999 after being introduced explicit on the packaging to remedy their exclu- to the Scandinavian facialist as a client. “She was sion from previous packaging incarnations. very much a visionary and an artist. I came with “It is a cleaner approach. It is a little bit more of a business background and was like, more modern,” said Tracy Brennan, founder of ‘Arcona, do you realize how incredible all this is?’” Southern California skin care retailer Kalologie, To expose Arcona to a wider audience, Jenae of the packaging upgrade. Speaking more gener- and Anderson relocated the Arcona studio last ally about Arcona, she added: “It has been kind of month from Valley Village to a 2,600-square-foot one of these cult brands that are under the radar. space in Santa Monica, Calif., across the street More and more people are becoming aware of it.” from the famed retailer Fred Segal. About a year As awareness of Arcona spreads, Anderson said ago, Anderson conducted a survey to determine if the company is fi nding more prestige retailers and a move would hurt business and found that about spas willing to stock the products, which are cur- 67 percent of Arcona’s clients lived in Westside lo- rently sold at 80 doors, with Planet Blue in Malibu cales, including Santa Monica. and Four Seasons properties in Palm Beach, “A lot of people would say, ‘I would come a lot Atlanta and Beverly Hills among them. Arcona more often if you just were closer.’ Being in L.A., Chanel Jenae in the items are hitting Japanese retailer Isetan and a traffi c is an issue,” he said. “We are happy to be new Arcona studio. Northwest spa chain that Anderson declined to here. We think it is a great community that is very TYLER BOYE PHOTO BY name this year, although he estimated fi rst-year open and receptive to what we were doing.” sales at each outlet to be about $1 million. Created by Jenae, architect David Kellen and interior designer Cynthia Marks, Overall, Anderson expects Arcona to grow about 50 percent this year over last, the the Santa Monica studio is rimmed with windows and doused in creamy white, from same rate the company has experienced since 2001. “We want to grow the business, the limestone fl oors to the walls tinted with nontoxic milk paints. Visitors entering but at the same time maintain exclusivity,” he said. “Really how it works is we build the studio encounter a combo reception-retail space where products are displayed demand and control distribution, so we pick and choose our partners, and don’t satu- at even intervals on shelves lining the room, then walk into a waiting room with fake rate the market.” suede chairs and fi nally enter one of the seven treatment rooms. Throughout, fl owers Developed nearly 30 years ago, Devan’s blend of Eastern and Western treatment from a local fl ower shop owned by an Arcona regular add pops of color. techniques and her emphasis on natural ingredients remain relevant. “We wanted a place that was really clean and warm and inviting, not overwhelm- “They said that everyone was into surgery and glamour, and that I would never ing with so many products everywhere that you don’t know where to focus,” said make it in this town,” Devan told WWD in 1999. “But beauty has become more natu- Jenae. “I also like the feeling of something being kind of residential and pretty, not ral, and my clients don’t want to wear makeup anymore, so I guess it has worked.” Redken, Palau Partner for Display Campaign By Andrea Nagel NEW YORK — In business, only the end results matter. For Redken, the same goes for hair styling. Redken, one of the leading salon brands under the L’Oréal Professional Products Division, is taking a new ap- proach to merchandising its 29-item styl- ing portfolio to make it more consumer friendly, marketable and upscale. Beginning in July, Redken’s styling range will be remerchandised in 24,000 salons nationwide according to the end The different hairstyles Guido Palau created for Redken. results they were designed to achieve, including volume, straight/smooth, curl/ keting and ad campaign. got done in one day,” Palau said of the mitted that the numbering system can wave, defi nition/movement, shine, heat “Guido works much more backstage seven different looks he created for the be confusing for consumers and even styling and hair sprays. Salons will receive than with the image of Redken,” said shoot, with the help of several assistants. for hairstylists. display materials, posters and a look book Edouard Roche, vice president and gen- Preliminary sales results from a test But End Results, said Roche, allows to help communicate the end results. eral manager, Redken Worldwide. “But, run in three Jean Louis David salons in Redken to keep its DNA and cater to Images will accompany each group for the fi rst time, we sat together on this Manhattan showed the new merchan- consumers. of products at shelf so consumers can project of reorganizing the styling struc- dising to yield an average increase of “We heard over and over that the see what each item is meant to deliver. ture and then shooting the campaign.” 39 percent in sales, said Shae Kalyani, way consumers like to see products is Hairstyles in the images were created Palau described styling the cam- vice president, Redken Integrated by what they do,” added Kalyani. by hair guru Guido Palau, a creative paign as an easy process since Redken Communications. End Results will “open doors for the consultant for Redken who often part- was open to his ideas and respected his Redken’s products are based on a consumer and allow them to get closer to ners with the company during fashion “hair sensibility.” numbering system — the brand’s way of the products,” said Roche, who thinks the week and provides feedback on new “We worked through each picture, it merchandising styling items based on new merchandising system will clearly products. The End Results campaign was a give and take of ideas. We did it in the control and hold factor of the prod- benefi t the mild, medium and maximum marks the fi rst time the hairstylist’s New York and the whole thing was shot ucts. The higher the number, the more hold ranges, “which is not always some- work will be featured in a Redken mar- in one day. I was amazed how much we control or hold a product has. Palau ad- thing that is consumer friendly.” WWD, FRIDAY, JUNE 1, 2007 9

WWD.COM Natural Products Rekindle Candle Sales QVC’s Darlene Daggett NEW YORK — The fl ame is far from out in America’s candle business. Candle sales fi red up in the Eighties and Nineties, giving even tradi- tional fragrances a run for holiday gift sales. Retailers fl ocked to the cat- egory and merchants were burned by overstocking commodity products. Redefi nes Retirement Now, the natural movement that is bringing new life to many mass market By Molly Prior categories is also delivering shoppers to the $2 billion candle business. Retailers said the business was propelled by the true users, who n Tuesday, Darlene Daggett, who recently retired from tend to burn candles within a week of purchase. Many of these consum- Othe executive ranks of QVC, took her first piano lesson ers are drawn to aromatherapy products and more and more demand in decades. “green” products. However, if her postretirement project goes as planned, “We see an opportunity with a great product line to start small and she likely won’t have much time to tickle the ivories. keep up with demand for candles that are all natural and fi t into the chan- Daggett, who stepped down from her post as president nels dealing with wellness,” explained Rick Ruffolo, senior vice presi- of U.S. Commerce for QVC on April 20, plans to spend re- dent of brand, marketing and innovation at Yankee Candle Co., which tirement, a term she uses loosely, on a philanthropic mis- purchased a small, natural company called Aroma Naturals in 2005. sion inspired by her adopted Vietnamese children. Aroma Naturals was founded in California by Tina Rocca, an aroma- “I’m going to build a community that provides an alterna- therapist to the stars who had a commitment to natural ingredients. tive to institutional orphanages in Vietnam,” where there are “The good news is that we work side by side with the team at Aroma Candles from Aroma Naturals. generally 30 to 40 babies housed in a large infant room, Daggett Naturals as we work to understand the business and broaden the op- told WWD, one week after returning from Southeast Asia. portunity,” noted Ruffolo. He knows a thing or two about can- Two of her children were born in such a facility in Ho dles, having not only worked at the leading brand of candles in Chi Minh City. Daggett, 52, and her husband have a family America, Yankee Candle, but also as part of the development of six children, including Amelia; Annie; Jamieson; their team behind Bath and Body Works’ White Barn Candle Co. biological son, Mackenzie, and two young women, Han and The time is fortuitous for Aroma Naturals as more and Chi, who the Daggetts took in six years ago. Both of them more mass market retailers, especially grocery chains, seek to will graduate from Drexel University next week. add organic and natural departments in their stores. And the Daggett’s solution to Vietnam’s institutional orphanages ranks of natural-only stores such as Whole Foods are growing. requires a sustainable community approach. “We are looking at the channels who have embraced natural and wellness, and to align our efforts,” said “I am going to build a community of small homes with two Ruffolo. Among the retailers extending natural sets are Shaw’s, Fred Meyer, Harris Teeter, Dominick’s and house parents in each,” she explained, adding that children Wegmans. Candles are merchandised in natural areas near foods and health and beauty aids. — from infants to teenagers — will be assigned to each home. Drug chains, which are adding more mini clinics and boosting a health care image, are also logical “This way, they can live in a home environment, where they get doors for more aromatherapy and natural candles. to know what it’s like to have a conversation around the dinner A major message from Aroma Naturals is that certain pockets table and sleep a few doors down from [guardians] who care of the country are populated by people intensely interested in about them.” Plans call for the com- Aquafi na natural. These so-called natural lifestyle consumers represent as munity to include a school, a library, Advanced much as 30 percent of the population, according to some stud- a medical facility and a vocational Hydration Rx ies. What that means is that retailers probably have stores where workshop. Her efforts also will in- products. natural candles are a good fi t. Chances are consumers who are volve a scholarship program. looking for healthier groceries will also want candles that will She acknowledged the concept enhance their overall wellness. The candles carry attractive gross seems reminiscent — to some ex- margins and are priced between $6 and $21. tent — of a foster-care approach. What’s good news to retailers’ ears is that the natural candle The aim is for the younger chil- selections are building sales rather than cannibalizing from exist- dren to become adopted, and for ing candle sales, said Ruffolo. While Aroma Naturals doesn’t see the older children to return to the a spot in every shelf across the nation, the company does think community as educators, host par- more and more shoppers have a burning desire for its natural ents or with a trade, such as engi- Darlene Daggett formulations. As in cosmetics, the company introduces new scents neering, said Daggett. according to seasons. Packaging is environmentally friendly. She has already personally in- ● ● ● vested an undisclosed sum to set up a foundation, appropriate- The link between wellness and skin care will be hammered ly called The Daggett Family Foundation. To navigate through home when Aquafi na Advanced Hydration RX hits stores in a few the tiers of Vietnam’s socialist government, she may link arms months. To accent that point, more than $10 million will be spent with a larger organization with roots in the country, such as on the launch, which is a licensed agreement between Added the East Meets West Foundation. For the community project, Extras and PepsiCo. The ads will appear in Allure and In Style she anticipates having to work with at least four ministries: the magazines, and be touted via Aquafi na-sponsored events such as Ministry of Education, Justice, Health and Child Welfare. the Tribeca Film Festival. “It’s a complicated system, but I’m going to have to fi gure out how to work most effectively with its different levels.” She added that, because she is working within the con- fi nes of socialist structure, she has not mapped out a fi nite timeline for the completion of the fi rst community. She plans L’Oréal Awards Five for Research Work to start small, but is confi dent that she has the resources to L’ORÉAL HONORED FIVE WOMEN FOR THEIR expand the concept to multiple provinces, such as Mekong achievements and contributions to science Delta, which is about a fi ve-hour drive south of Ho Chi Minh through groundbreaking research at the fourth City and where unemployment hovers at around 40 percent. annual L’Oréal USA Fellowships for Women Money, fortunately, goes a long way in Vietnam, said in Science awards, held last Thursday at the Daggett, commenting that $300 is enough to send a student American Museum of Natural History. to college and $15,000 covers the cost of a fully stocked “We’re providing an opportunity for many computer library. women to participate as we help give the mo- Daggett plans to have the business plan for the effort mentum to move forward in many ways,” said in place before her next visit to Vietnam, which is slated Beatrice Dautresme, L’Oréal’s executive vice for October. president of communications and external rela- She credits her business acumen as the directional force tions. “Women are underrepresented in science, behind her philanthropic drive. Prior to her retirement, and our hope is to change that. We’re addressing Daggett spent nearly 18 years at QVC, beginning her career the gap in young girls’ exposure to science by there in 1989 as director of fashion merchandising and providing them with role models.” taking on roles of increasing responsibility before being The five recipients were scientists Jaime named to her most recent position in 2002. Prior to QVC, Barnes, Sarah Clinton, Julie Huber, Maria she held sales and retail management positions for Liz Krisch and Kim Woodrow. Dr. Sally Ride, the fi rst Claiborne Inc., Eagles Eye and Howland-Steinbach Stores. American woman to fl y in space, was also hon- At 29 years old, she raised $1 million in start-up capital and ored with the L’Oréal USA for Women in Science founded Acappella Ltd., a sportswear company. Role Model Award for her role in helping to Her ambitions in Vietnam require her to mine that en- shape the image of women in science. trepreneurial spirit. PHOTO BY JOHN AQUINO PHOTO BY “Research has showed that in middle school Kim Woodrow, Maria Krisch, Jaime Barnes, Julie Huber Recalling that a Bangkok-based philanthropist recent- around fi fth grade is when we begin to lose stu- and Sarah Clinton. ly called her plan “social entrepreneurialism,” she said, dents interested in science,” said Ride. “It’s im- “The term really resonated with me because the skills that portant to support and sustain women’s interest networks in the scientifi c community and pro- make you reasonably good in business are the same ones in science through programs like this, showing vides professional development workshops with you need to succeed in a philanthropic space.” that science is creative and collaborative. It’s up women leaders across industries. In her view, those transferable skills are passion, an eye to all of us through efforts like this to help young As of January, L’Oréal organizations in 22 for who to serve, innovation and creativity and the ability women of today to achieve their own dreams.” countries have held National Fellowship ceremo- to forge relationships. Each winner received a $40,000 grant, which nies, including Brazil, United Kingdom, China, “I’m the planner in the family, and yet the next project will be put toward their independent scientifi c Canada, Czech Republic and Finland. is fi lled with blank spaces. But I’m crystal clear about what research. The fellowship also helps strengthen — Michelle Edgar I’m supposed to be doing.” 10 WWD, FRIDAY, JUNE 1, 2007

The HBA Report WWD.COM Elemis Builds Brand Awareness in U.S. By Michelle Edgar next to counter space. Harrington described the “spa bar” as an interactive place where monitors offer consumers SNIPPETS ritish brand Elemis is opening new spas, expanding guidance about the company’s product line, which is di- Bits retail base and launching a range of products to vided into eight palettes by lifestyle based on such vari- DIESEL DETAILS: Diesel chief executive offi cer Renzo raise its profi le in the U.S. ables as distress, travel, pregnancy and daily skin care. Rosso has high hopes for the fragrance he plans to “We’d like to be a major player in the U.S. spa mar- “The ‘spa bar’ is where customers can fi rst experi- launch in September with his fragrance licensee, ket with our full-concept store approach, opening new ence Elemis through testing out the products and learn- French beauty giant L’Oréal. The long-term deal spas and developing our online business,” said Sean ing about the various programs,” said Harrington. announced in January 2006 entails a launch Harrington, managing director of Elemis. “We’d like to Customers can then get a complimentary skin analysis budget of $56.5 million as well as market research make our product more readily available throughout the through a Visia scanner as part of the “skin interviews with more than 1,000 consumers in U.S. on a nationwide basis.” lab.” The “spa pod” will offer customers about half-a-dozen countries, including the U.S., The 18-year-old spa brand is sold in 1,000 spas and 50 30-minute face and body treatments in Japan, France and Italy. Plus, Rosso had to overcome department stores worldwide, including Harvey Nichols the massage chair for $45 each. his lifetime dislike of perfume. “I hate perfume and John Lewis in the U.K. and Nordstrom and Bergdorf “We’re capitalizing on our personally,” Rosso said, while visiting Los Angeles Goodman in the U.S. The products are also available spa image, but delivering treat- on Wednesday to unveil a fl agship on Melrose Place through the company’s Web site, timetospa.com. ments that are department for his Italian denim and sportswear company. Rosso store-friendly,” said Harrington. said he made an exception for the new fragrance, “These short treatments are de- which will be available in men’s and women’s We’d like to be a major signed for people on the go who versions. While Diesel is hammering out details “ want to be in and out. It doesn’t for U.S. promotions, Rosso said 70 percent of the player in the U.S. spa replace your spa treatment, but marketing push in Europe will be on TV. gives you that extra boost to help market with our full-concept you get through the week.” CASH INFUSION: Scott Barnes Beauty, the three- Elemis executives hope this year-old cosmetics fi rm founded by the celebrity store approach, opening three-pronged approach in- makeup artist of the same name, has closed a round creases clients’ average spend of equity fi nancing with Oryx Capital International new spas and developing per visit and the frequency Inc., an Illinois-based private equity fi rm. The beauty of their visits by “making the company noted in a statement that the undisclosed our online business. Elemis counter a destination.” sum would be used for new product development, — Sean Harrington,” Elemis “We’re aiming to be one of the marketing and expansion of the brand’s distribution top-fi ve brands in terms of rev- network. “We are confi dent that Oryx will be a strong The company entered the U.S. market fi ve enue, but with only a third of the partner for Scott Barnes Cosmetics and will support years ago and now has more clients because we’re about indi- the continued growth and success of the brand,” than 100 U.S. spas, vidual customer development,” Barnes said in the statement. Nicole Korczak, including ones at the said Harrington. “Our target for managing director of Oryx Capital, added in the Mohegan Sun Resort every store is to be performing statement, “We look forward to working with Scott in Connecticut and in the top-fi ve ranking out of all and the rest of the Scott Barnes team to continue Loews Miami Beach cosmetic brands.” to launch new and innovative products and expand Hotel, and a free- This month, Elemis is intro- the company’s distribution channels.” The Scott standing day spa ducing Tri-Enzyme Resurfacing Barnes brand is carried by Saks Fifth Avenue, in the Village at Program, a three-step, at-home Bloomingdale’s, Holt Renfrew, Selfridges and QVC. Merrick Park shop- skin care regimen that includes ping mall in Coral a facial wash, resurfacing serum FEKKAI GROWS: Frédéric Fekkai has sealed the deal Gables, Fla. and night cream, along with a on two more locations. A Greenwich, Conn., spot

The product line JOHN AQUINO PHOTO BY Tri-Enzyme Resurfacing Facial is set to open in December. The 2,100-square-foot is sold at about 100 treatment. With Micro-encap- salon will offer the usual hair services as well as nail, day and resort spas, 26 Select new Elemis items. sulated Tri-Enzyme patent-pending technol- waxing and makeup services. Fekkai is also entering Nordstrom stores and, ogy, the skin care products are designed to adapt to the Dallas in November with a 2,400-square-foot salon as of last month, a 150-square-foot Bergdorf Goodman micro fl ora of the consumer’s skin, giving it a smoother in Highland Park Village. It will offer the services the counter. By the end of the year, Elemis will be available and more even appearance. Clinical testing showed that Greenwich location will offer, as well as valet parking. in 40 Nordstrom doors. According to Harrington, Elemis up to 91 percent of customers who tried the products saw was the number-three brand for advanced skin care at an increase in skin smoothness after 28 days, and up to 75 LIVE FROM N.Y.: Kelly Ripa and QVC are bringing Nordstrom last year. percent saw resurfacing after a single treatment. Super Saturday, an annual fund-raising event for The “We’re number one in spa business retail and treatment “We’re known for everything from our spa offerings to Ovarian Cancer Research Fund, from the Hamptons service sales,” said Harrington, adding that Elemis has been our home care services to our lifestyle programs,” said to the airwaves. Ripa has cohosted Super Saturday a dominant brand in the spa industry for about four years. Harrington. “We’re more lifestyle driven. You rarely see for three years. The annual fund-raising sale, held in By the end of this year, Elemis plans to double its spa Elemis customers using one product because they uti- Water Mill, N.Y., features designer goods and family and department store doors in the U.S. lize many of our collections for everyday needs, from activities. Those same items will now be available to “We’re taking the model that was successful in the cleansing, toning, exfoliating and antiaging to body care, QVC’s 90 million viewers on July 28 from 1 p.m. to 3 U.K. and mirroring it in the U.S. market, as we evolve dietary supplements and home wears.” p.m. during QVC Presents Super Saturday Live. Ripa the concept designed for retail,” said Harrington. The company plans to expand its U.S. management is scheduled to appear in both print and TV public Set to make its debut in August, Elemis’ new design fea- roster, developing separate spa and retail teams to im- service announcements promoting the live broadcast. tures a “spa bar,” “skin lab” and “spa pod” treatment room prove its distribution. Zelens Line Has Skin Care Down to a Science kin cancer specialist Marko Lens is apply- oxidant, anti-infl ammatory and anti-allergenic Sing his research on premature aging to the Zelens’ new products. properties. new skin care line Zelens Skin Science, which Zelens is designed for women of all skin types in is scheduled to launch at Space NK’s Soho store their 20s. The brand is intended as a preventative this month. measure for consumers with early signs of aging Designed to combat premature aging from free and those who need both protection and repair. radicals generated by environmental factors like A 15-ml. Zelens Intensive Triple Action Eye pollution, UVA light and stress, Zelens’ Day, Night Cream will retail for $160, while a 50-ml. Zelens and Eye creams contain SPF 15. Available in Extra Rich Cellular Reconstruction Night Cream regular and extra rich formulas, the creams are will be available for $250. Ten percent of the pro- composed of 20 active ingredients, extracts and ceeds will be donated to the skin cancer research antioxidants, 14 of which include vitamin C and Lens conducts at Kings College in London, where E, alpha-lipoic acid and coenzyme Q10. Inspired he is a professor. by a Japanese herbal medicine known as Kampo, Although Zelens doesn’t launch until later this the formulas reduce fi ne lines and wrinkles, re- month, it has been available in the U.K. in eight pair oxidative cellular damage and rejuvenate Space NK stores since early May. The line will the skin. also be sold in Italy, Spain, Switzerland, Hong “It’s rare to fi nd a formula that contains so Kong, Japan, Korea, Taiwan and Singapore. In many antioxidants in a hypoallergenic form, al- addition, Zelens will be available on the compa-

lowing a synergistic effect on all ingredients,” said THOMAS IANNACCONE PHOTO BY ny’s e-commerce Web site, zelens.com. The line Lens, who added that the cream’s proprietary li- will also be launching in Italy in about 25 doors in posome delivery system increases the skin’s absorption of active ingredients high-end specialty stores and boutiques. According to Lens, the company is plan- With “Zen-like” packaging designed by Anouska Hempel, the creams contain ning to expand into Australia, Turkey and Russia by the end of next year. a fragrance taken from Shiso extract, a Japanese mint leaf known for its anti- — M.E. WWD, FRIDAY, JUNE 1, 2007 11 WWD.COM FiFi Winners Unveiled Furla’s New Spin on Design at 80 tars studded the list of winners and presenters By Luisa Zargani SThursday night at the 35th Annual FiFi Awards, hosted by the Fragrance Foundation in the Winter Garden at the MILAN — Furla will mark its 80th anniversary this year with an World Financial Center in New York. exhibition at Tokyo’s Museum of Contemporary Art, or MOT, in the Sean Combs, Paula Abdul, Daisy Fuentes, Zac Posen fall and a project, Retail Design Hub, that chairman and chief ex- and Jane Seymour were among the presenters, with Combs ecutive officer Giovanna Furlanetto hopes will help her add inno- also picking up a Fragrance of the Year award for his men’s vative design content to Furla’s collections of handbags and shoes. scent, Unforgivable. Grammy winner John Legend took the Furlanetto’s ambitious goals include doubling the company’s stage for a musical number. sales and the opening or updating of 56 directly owned boutiques and 60 franchised stores by 2011. The executive aims to achieve The FiFi winners are as follows: this through organic growth and dismisses the idea of acquisitions or a public listing. Hall of Fame Award: Donna Karan “Nothing is set in stone, but this is not in the cards for the time being,” said Furlanetto during a press conference held at the com- FRAGRANCE OF THE YEAR pany’s showroom here last week. Furlanetto underscored the importance of the Japanese market Women’s Luxe: Juicy Couture by Liz Claiborne Cosmetics for the company — a market that is showing no Men’s Luxe (tie): Terre d’Hermès — Hermès; signs of slowing down for Furla. The company’s Unforgivable by Sean John — Sean John Fragrances/ sales in Japan grew fourfold over the past year Estée Lauder and the country now represents 18 percent of Women’s Nouveau Niche: KenzoAmour — Kenzo Parfums total revenues. Sales in 2007 at Furla, whose Men’s Nouveau Niche: Viktor & Rolf Antidote — L’Oréal USA fi scal year ends on Oct. 31, are ex- Women’s Private Label/Direct Sell: Dream Angels Desire pected to grow 16 percent com- Giovanna — Victoria’s Secret Beauty pared with last year, reaching Furlanetto Men’s Private Label/Direct Sell: Banana Republic Black 150 million euros, or $202.1 mil- Walnut — Inter Parfums USA lion at current exchange. Women’s Popular Appeal: American Beauty Wonderful Japan is the fi rm’s second-largest market after Italy, which ac- Indulgence — BeautyBank Inc. counts for 35 percent of sales. The U.S. is third, representing 14 per- Men’s Popular Appeal: Antonio Antonio Banderas — Puig cent of sales. Beauty USA Inc. In the fall, Furla will kick off its Retail Design Hub program, under which it will start selling items created exclusively for the Fragrance Hall of Fame: Angel by Thierry Mugler — Clarins brand by two designers to be selected by a jury panel that includes Fragrance Group Vogue Italia’s Franca Sozzani, Vogue’s André Leon Tally and Julie Gilhart, senior vice EDITORIAL EXCELLENCE IN FRAGRANCE COVERAGE president and fashion director at Barneys New York. The names of the designers will Women’s Scent Feature: Elle — “Making Scents, Shop Talk” be revealed in September and the products — December 2006 will be presented during Milan Fashion Week Women’s Scent Bite: Elle — “Vision Quest” that month. — September 2006 There is no set length for the collaborations, Men’s Feature: GQ — “Stop and Smell…Haitian Vetiver?” nor is there a set number of designers eventu- — December 2006 ally to be selected under the program. “We wanted a fresh, international take on our prod- TECHNOLOGICAL BREAKTHROUGH OF THE YEAR: Crescent ucts and we, in turn, offer these designers an House Publishing LLC — Scentsa Fragrance Finder, Expert incredible visibility network,” said Furlanetto, content by Jan Moran and Michael Edwards adding she was working on a concept for the 15 to 20 stores that will carry these products. Retailer of the Year (tie): Macy’s; Sephora The retail concept will allow the collections to stand out and differentiate each store. Bath & Body Line of the Year: Juicy Couture by Liz Furla’s ongoing focus on retailing is pay- Claiborne Cosmetics The Furla cafe in ing off, as the company has been reporting Tokyo. Above: Furla’s a 23 percent increase in the number of cus- Interior Scent of the Year: Banana Republic Chilled 80th anniversary bag. tomers in its stores each season for the past Sangria Candle — Inter Parfums USA four seasons. Furla has 225 stores worldwide. “We are proud of being in the best locations BEST PACKAGING A Furla store. in the world, from Bond Street in London and Madison Avenue in New York to Ginza Women’s Prestige (tie): Armani Privé Cuir Amethyst in Tokyo, where we even have a cafe in the (unisex) — Giorgio Armani Beauty; KenzoAmour — Kenzo store, ” said Furlanetto. Parfums Retail expansion this year includes the Men’s Prestige (tie): Armani Privé Cuir Amethyst (unisex) opening of two stores in India and one in São — Giorgio Armani Beauty; Viktor & Rolf Antidote — Paolo, Brazil. This year, retail sales are ex- L’Oréal USA pected to reach around 360 million euros, or Women’s Popular Appeal: Secrets D’Essences Voile d’Ambre $485.1 million. — Yves Rocher Inc. The executive said Yuko Hasegawa, cu- Men’s Popular Appeal: Driven — Derek Jeter — Avon rator of MOT, invited Furla to be a part of Products Inc. Tokyo’s design week, called “Space for Your Future,” in October. Four artists awarded BEST NATIONAL ADVERTISING CAMPAIGN with the Furla per l’Arte prize, a project Furlanetto initiated in 1999 to promote Print: Juicy Couture by Liz Claiborne Cosmetics emerging artists, will show at MOT. “They are TV: J’adore — Dior Beauty the only four Italians, in the company of such artists as Rei Kawabuko, Hussein Chalayan and Pipilotti Rist,” said Furlanetto. Slide in Same-Store Sales Impacts Sears’ Earnings By Vicki M. Young a year ago. During the quarter, the com- to $11.7 billion from $12 billion. The sults refl ect the impact of some of the pany recognized certain gains, includ- company said domestic same-store sales same challenges being faced by our cus- ears Holdings Corp. on Thursday ing on a pretax basis: a $30 million gain fell 3.9 percent, with Sears domestic tomers, such as rising energy costs and Sposted fi rst-quarter earnings at the in connection with the legal settlement comps shedding 3.4 percent and Kmart a slower housing market,” said Aylwin low end of the retailer’s estimates, as of a contractual dispute, a $27 million comps down by 4.4 percent. Sears do- Lewis, Sears Holdings’ chief executive the company said results were hurt by gain connected with certain amend- mestic stores recorded a comps decline offi cer and president. He added that the declining comps at its Sears and Kmart ments made to Sears Canada’s postre- across most merchandise categories company needs to overcome “these fac- nameplates. tirement benefi t plans and a $15 million and formats, with a notable decrease tors” by better controlling costs and de- First-quarter net income for the benefi t in connection with insurance in home appliance sales, the company veloping innovative solutions that better three months ended May 5 rose 20 per- recoveries for properties damaged by said. Kmart also experienced lower meet customers’ needs. cent to $216 million, or $1.40 a diluted hurricanes during 2005. The gains in transaction volume across most mer- Richard Hastings, analyst at Bernard share, from $180 million, or $1.14, in the part were offset by a $21 million loss in chandise categories. The one bright spot Sands, wrote in a research note, “We are same year-ago quarter. Excluding the connection with the company’s return was Lands’ End, which, the company cautious in our outlook for operating in- impact of certain items, diluted earn- swap investments. said, posted sales increases. come in the next three quarters of this ings per share were $1.10 versus $1.11 Revenues were down by 2.5 percent “In part, our domestic operating re- year, with a bias to downside risks.” 12 WWD, FRIDAY, JUNE 1, 2007 Fashion’s New Phase: Entertainment Bigwigs Inv

Continued from page one moguls — weaned on the short-term buzz Harvey Weinstein’s acquisition of Hal- of fi lm premieres — are hardly guaran- Victoria ston, backed by Hilco Consumer Capital, teed long-term success on the selling fl oor. Beckham and “American Idol” and “Pop Idol” However, executives applauded the arriv- mogul Simon Fuller’s partnership with al of entertainment fi gures as a positive Roland Mouret, who plans to unveil his development since they hold the promise new RM collection during couture week of invigorating the retail experience and in Paris in July, as well as his deal with innovating with brand management. Victoria Beckham to launch her own Eric M. Beder, senior vice president of fashion line, DVB. Brean, Murray, Carret & Co., a New York- And a host of other Hollywood-fashion based investment banking fi rm, said clos- deals are brewing, according to sources, er ties between the two industries are suggesting there’s no business like show- inevitable. room business. “The entertainment and fashion busi- “Entertainment plays a more critical nesses are very similar in that you as- role in driving brand awareness than ever semble talent, create product and put it before,” said David Baram, president of out there,” Beder said. “But a fashion Beverly Hills talent management company company is probably lower risk than a The Firm. Previously, Baram served as movie since it has more longevity.” chief executive offi cer of Pony after The “I have always believed that the pro- Firm became one of the fi rst entertainment cess of managing an artist and a brand are players to acquire a fashion brand in 2001, similar,” agreed David Schulte, president fl ipping Pony less than two years later. and chief executive offi cer of eyewear fi rm “We took it from zero to $50 million Oliver Peoples Inc., who was previously and it became a situation where the com- with The Firm. “The barriers between the pany started to grow faster than our in- two businesses have been broken down. frastructure allowed, so we sold it,” he The world is now about the lifestyle of said in an interview. the consumer: what he or she wears, con- Baram is also managing director at sumes, listens to, travels to, etc.” VMG Equity Partners, a private equity Baram, who manages the likes of sing- fund looking to make acquisitions in er-actress Mandy Moore and her apparel consumer-product companies. “We are company, Mblem, said, “We are essential- looking at some fashion companies right ly a marketing branding company work- now,” he said, declining to name them. ing with artists. A lot of those skills can Separately, sources indicate a “major be brought to the table in any business.” celebrity manager” is corralling inves- Since the arrival of entertainment fi g- tors to relaunch several historic fashion ures as executives and brand stewards is brands, similar to what Weinstein plans still a recent phenomenon, experts could to do with Halston. draw on few case studies. Observers said they’re not surprised Probably the most famous example Hollywood has deemed fashion ready for was Arnon Milchan’s 1996 acquisition of a Mandy Moore its close-up. stake in Puma AG. Milchan, owner of the SARDELLA; JIMI CELESTE; MOURET BY DONATO STEVE EICHNER; BECKHAM BY WEINSTEIN PHOTO BY RICHARD REINSDORF/OPUS REPS SIMMONS/WIREIMAGE; MOORE BY MATTHEW BY JAY-Z “They certainly have an advantage production and distribution fi rm Regency in terms of getting exposure, and we all Enterprises, made such fi lms as “L.A. to Bergdorf Goodman and Barneys ment to the fashion and retail worlds. know the right celebrities help sell fash- Confi dential,” “JFK” and “Pretty Woman.” New York. The acting duo is launch- Still, observers suggested entertain- ion. Managed correctly, [fashion] can be Last year, Milchan resigned from Puma’s ing a contemporary line for fall called ment types could offer plenty to the fash- a very profi table and successful business. supervisory board after seeing the Elizabeth and James, which will join the ion business. There’s also a certain allure and sexiness German activewear giant enjoy a strong mary-kateandashley collection sold at “The fashion industry embraced mar- to buying fashion that you’re not going to growth phase. (French retail and luxury Wal-Mart under a license with Dualstar keting a while ago and is recruiting good get from buying a cement company,” said giant PPR recently launched a friendly and the Olsens’ high-end collection, called marketers from fast-moving consumer Robert Burke of Robert Burke Associates, takeover offer for all of Puma, which The Row, which the twins fund them- goods, entertainment and elsewhere,” said a luxury consultancy in New York. would cost it a total of $7.17 billion.) selves. Elizabeth and James is being made Pierre Mallevays, founder and managing “It’s a very good sign they’re buying There are plenty of examples, however, under license by L’Koral Industries. partner of Savigny Partners, a luxury goods brands. It can help revitalize fashion,” of celebrities out to build and nurture their Fashion executives recruited from advisory and mergers and acquisitions fi rm noted Concetta Lanciaux, a luxury and own brands. Jay-Z sold his Rocawear ven- the entertainment world are relatively in London. “Entertainment people who fashion consultant in Paris. “Someone ture to Iconix Brand Group Inc. in March few, the most recent being Benetton’s are investing in fashion do it with their in- who brings a cinematic eye on a fashion for $204 million in cash and another $35 new chief executive offi cer, Gerolamo vestment-business hat on, and it defi nitely brand — it can be very strong.” million in payments of Iconix shares de- Caccia Dominioni, who will join the ap- helps if they have leverage over the media Diesel is a brand that already com- pending on performance over the next parel giant in June from Warner Music to increase the visibility of the brand. bines fashion and entertainment ele- three to five years. In addition, Iconix International with a mission to put “Fashion lends itself extremely well to ments, and “Tom Ford, I think, has that tapped the music star to be in charge of a Benetton back in touch with young con- licensing, and the entertainment indus- cinematic eye,” Lanciaux said. new brand management and licensing com- sumers. But the tenure of another such try has been making licensing deals for But observers from the worlds of cor- pany that will make further acquisitions. recruit — Paul Pressler, who was hired a number of years,” he added. “That’s a porate fi nance, recruitment and luxury Mary-Kate and Ashley Olsen, mean- from Walt Disney Co. to run Gap Inc. key aspect of the industry.” goods cautioned that the fashion business while, seem determined to expand their — showed the diffi culties of translating Lanciaux argued entertainment spe- is tricky for outsiders to master, and movie fashion empire to reach from Wal-Mart management skills from the entertain- cialists “know how to create value by cre- ating new concepts, new ideas. Basically, Jay-Z it’s an industry of intangibles. In the fi lm industry, you don’t make money ratio- nally. You make money by creating some- thing completely out of the blue that in- spires consumers.” Floriane de Saint Pierre, who runs an executive search and consulting fi rm in Paris, noted that entertainment execu- tives are accustomed to “thinking big” and have valuable experience dealing with creative people with large egos — not unlike many top fashion designers. Also, their approach is one “extremely focused on the fi nal consumer” rather than design expression, which is typically less risky. “It will be more about branding and marketing rather than research and creativity,” de Saint Pierre said. “It will inject a lot of cash in the industry.” Lanciaux said entertainment experts could contribute greatly to animating the retail experience. As more and more prod- ucts are being purchased online, brick-and- mortar shopping must become less func- tional and more engaging and emotional, Roland she said. A simple example is Harrods, Harvey Weinstein Mouret which has employed an Italian opera sing- er in its food halls to attract customers to WWD, FRIDAY, JUNE 1, 2007 13 WWD.COM

has reunited with photographer Mario Testino, who discovered the Australian model. The campaign was shot at the est in Brands MEMO PAD Baryshnikov Arts Center within the 37 Arts building at 450 West 37th Street DONE DEAL: As talks for new investors to and features McNeil among a gaggle its restaurants and food services, she noted. buy Dennis Publishing near a conclusion, of men in black suits, black shirts and On a grander scale are hotel developments, private equity fi rms continue to snap black ties, with cool black sunglasses. like Frank Gehry’s new Marqués de Riscal in up other media companies. The latest The campaign will break in August issues Spain’s wine region, where architecture and player is Clarity Partners, which has An image from of Vogue, Vanity Fair and W, and run art elements “offer another experience.” acquired a controlling interest in Modern Donna Karan’s through October in major fashion and “That’s going to happen more and more,” Luxury Media, publisher of upscale new Collection lifestyle books, including Elle, Harper’s Lanciaux said. “The online revolution, it’s city magazines including Angeleno, campaign. Bazaar, Town & Country and Interview. only beginning, and so why would we want CS (Chicago Social) and The Atlantan — Marc Karimzadeh to buy something in a boring store if you for around $250 million. Clarity has a can buy it online?” portfolio of media properties, including entertainment company RETAILERS NEED EDITORIAL HELP, TOO: Anyone who has argued that And, as entertainment moves deeper into Village Roadshow and Oxygen Media. It purchased its stake shopping magazines are just a hair’s breadth away from actual fashion, designers are delving more into the from the Roy E. Disney-founded Shamrock Capital, which bought catalogues may fi nd fodder in the gig of one former shopping entertainment world. Dolce & Gabbana re- into the publisher in 2004 for about $50 million. Modern magazine editor. Mandi Norwood, who launched and edited Shop cently said it would launch a new store con- Luxury had been on the block for seven months and attracted Etc. until Hearst folded it in August, is now serving as the editorial cept next year with devoted space for musical 30 potential buyers. It plans to use the cash to expand to director of Bath & Body Works, a rather unusual title in the beauty events. Although details are scarce, it’s an ex- new markets through more acquisitions. The most recent one industry. Fresh from success at British Cosmopolitan, Norwood ample of how designer brands are seeking to was San Francisco magazine, which it bought in 2005 and fi rst came to the U.S. in 2000 to revive the fl agging Mademoiselle, animate the store experience. Louis Vuitton, redesigned from a city magazine to an oversize luxury title. which folded under her watch a year later. A spokeswoman for Bath for instance, packed its Paris fl agship with Since 2004, the company has expanded from three magazines & Body Works said Norwood’s new job “harnesses her expertise art attractions, including a giant video wall in three markets to 25 titles in 12 markets. Michael Kong, at communicating with and marketing to women of all ages and abutting the main elevator for rotating ex- founder and chief executive offi cer, said Modern Luxury plans her passion for retail. Mandi’s role spans the entire Bath & Body hibitions and a blackout elevator by Danish to tap 20 markets in the next fi ve years. In September, the Works business, from strategic brand development to all aspects of artist Olafur Eliasson. Many Hermès stores company will launch Miami magazine. — Stephanie D. Smith advertising and marketing across all 1,600 stores.” — Irin Carmon worldwide also have art galleries attached. Oliver People’s Schulte said the “ele- HOPE FOR US ALL: Boy, has Cathie Black’s income come a long DRAMA QUEEN: In her fi rst season as creative director at Piazza ment of lifestyle and crossover appeal has way. The Hearst Magazines president revealed on “The View” Sempione, French designer Nathalie Gervais has upped the drama in attracted entertainment executives to fash- on Wednesday that she made only $4,900 in her fi rst job as a the brand’s ad campaigns by tapping photographer Maciek Kobielski ion.” However, the odds of success still rest salesperson at the now-defunct Holiday magazine, which led and stylist Victoria Bartlett. The images, which break in the July on strong management and a vital brand. to her initial experience in salary negotiation when she was issue of Vogue, were shot in Hancock, N.Y., and feature red-haired “With Puma, Arnon [Milchan] was lucky to promoted to one earning $11,000. But while we unfortunately model Elise Crombez. The colors, textures and graphics hail from have an amazing ceo like Jochen Zeitz, who can’t all have Black do our salary negotiations, she and fi nancial the northern hemisphere, namely the Black Forest, Scandinavian has a 10-year vision for where he wanted to expert Suze Orman, who also contributes to Hearst’s O, The Oprah countries and Siberia, and are meant to evoke a calm strength, take the brand, and they put the right resourc- Magazine, did provide some tips on underscored by the use of mirrors. es behind this vision to succeed,” he said. “I the program on managing money and Gervais said she chose Kobielski to have to remind entertainment executives careers. “Be smart in the ‘going in’ part support a new talent with a strong sometimes that on the surface it may have of a job negotiation,” Black advised. identity. “We wanted someone that seemed like it was getting the sneakers in “Once you’ve accepted the job, you could translate the brand’s core identity, movies or on celebrities, and, by the way, this have no leverage.” She also discussed luxury, dynamism and self-assuredness. helped, but the human and fi nancial capital her climb to the top of the corporate Maciek’s work embodied these values,” Arnon put behind Puma is what made it go.” ladder (although she was much more said Gervais. — Alessandra Ilari Schulte also noted management must discreet about her current salary) while have a solid plan for ramping up a brand, balancing a career and a family. “I CHICK LIT: Cosmopolitan, the magazine as The Firm did when it bought Pony, a believe that women can have it all. They that recently introduced its readers brand that resonated with certain consum- just can’t have it all simultaneously.” to “75 Sex Tricks,” tapped into its ers from the Eighties. Finally, Black explained her approach wordier side with its fi rst annual Weinstein and Fuller have yet to fully to dismissing employees (perhaps if Fun Fearless Fiction awards, held detail the strategies for their respective they ask for too much money?). “If you Wednesday evening at Hearst Tower. brands, but both men have spoken of break- do have to fi re someone, you have another person in the room, Authors including Alice Sebold, Jane Green and Amy Sedaris (who ing the fashion mold. “We want to innovate because we live in a much more litigious world today. You don’t received an award despite the fact that her book, “I Like You: and challenge the norm,” Fuller said when get into ‘he said, she said.’ You make it very short, and ideally you Hospitality Under the Infl uence” is nonfi ction) were asked he unveiled the formation of Mouret’s new make it somewhere else, not your offi ce. Why? Because it’s harder not to give speeches and Sedaris took that suggestion to fashion company, RM19, hinting at a variety to get up and leave your own offi ce and leave a person sitting heart, saying, “I’ve had three drinks so I don’t think I will say of fashion-related projects. there. Whereas if you’re in a conference room, you can say, ‘You anything.” Candace Bushnell, who hosted the event along with For his part, Weinstein said at the time know, I think it’s fi nished.’” If only the conference rooms at the Carlos Watson, a host of NBC’s “Conversations With Carlos,” said of the Halston deal that he was inspired Hearst Tower could talk. — S.D.S. one of her fi rst jobs after moving to New York was at Hearst’s by Milchan’s success, and “in Halston, we Good Housekeeping. Bushnell joked her career got a jump start found that brand that relates to the kind of NEW TALENT: For her fall Collection campaign, Donna Karan has after working on an article about a tuna surprise. “I was like, I’m movies that we make.” He tapped Tamara gone after the next big thing. Catherine McNeil, touted as one on my way!” Kate White, Cosmo’s editor in chief, wasn’t up for Mellon, founder and president of Jimmy of a new crop of up-and-coming models, is featured in the an award, but a paperback copy of her novel, “Over Her Dead Choo, to assist with Halston’s creative di- ads, which, in typical Donna manner, are meant to evoke a Body,” was included in the gift bags. Apparently the new one, rection and brand structure. celebration of the power of a woman. After several years, Karan “Lethally Blond,” was too expensive in hardback. — Amy Wicks Observers agreed brands like Halston give movie moguls plenty of cachet upon which to build. But important caveats in- clude recognizing there are few quick fi xes in fashion, nor overnight successes. Netfl ix, QVC Lead Online Satisfaction “There’s certainly a learning curve to this industry. It’s a business that is hard to By Cecily Hall interesting about the leaders in this category is that we don’t quantify,” noted the consultant Burke. “It see that one business type to be the only one that works.” can’t be approached like the entertainment NETFLIX.COM, QVC.COM, AMAZON.COM, BARNES & For example, llbean.com is a top scorer, and it is primar- industry because it’s not.” Noble’s bn.com and pet supply e-tailer DrsFosterSmith.com ily a catalogue company. Zappos.com is strictly online, and Echoing other observers, de Saint Pierre are the top five Web sites in terms of customer satisfaction, number-three-ranked victoriassecret.com is considered also noted that entertainment managers are according to the latest biannual study by ForeSee Results. brick-and-mortar. Freed also stated, “What we have noticed accustomed to working on a “project basis” The study typically had focused on 40 of the top e-tailers is that bricks-and-mortars are defi nitely closing the gap and based on fi lm launches, whereas fashion re- by sales volume, as determined by Internet Retailer maga- becoming more competitive in the online world. For retail- quires commitment “season after season. You zine. For the fi rst time, however, the online satisfaction re- ers who have freestanding stores, Web sites and catalogues, have to be extremely disciplined.” She also search fi rm has expanded its research to include the top 100 it’s a true multichannel solution — consumers see something noted that production issues are predomi- retailers in its “Top 100 Online Retail Satisfaction Index,” on the site, go to the store and try it on and buy it. But the nant and diffi cult for outsiders to grasp. produced in partnership with FGI Research, using the meth- distinct challenge these companies face is keeping consis- Beder said entertainment types could odology of the University of Michigan’s American Customer tency of the shopping experience across those channels.” fi nd the day-to-day operations of running a Satisfaction Index. “We couldn’t really get an idea of how Though Americans are spending more money online on fashion business dull. “It’s tough to imagine well actual categories were doing, but with 100 companies, apparel and accessories than on any other product category, that someone would want to spend fi ve to it’s much more in-depth,” said Larry Freed, president and the study revealed that the category, along with computers/ seven years building a brand,” he said. chief executive offi cer of ForeSee Results. electronics, rates lower than any other in terms of customer “I feel there’s a lack of understanding Netfl ix.com and qvc.com tied for fi rst, with strong customer satisfaction, including books/CDs/DVDs, specialty/nonappar- sometimes for the amount of capital it takes to satisfaction scores of 85 (out of a scale of 100), from the 20,000 re- el, food/drug and mass merchants. successfully launch or turn around a fashion spondents surveyed. The remaining top fi ve were Amazon.com For mass merchants, qvc.com, Amazon.com and business, and that is where many of the new- (83), bn.com (82) and DrsFosterSmith.com (81). hsn.com were the top three. Target.com, Overstock.com and comers will get seasick in the upcoming years,” In the apparel and accessories category, llbean.com tied jcpenney.com all tied for fourth place with a score of 76. said Schulte. “With that said, no one is better for fi rst with Zappos.com, a leading online shoe retailer, each Other retail Web sites in the study included nord- at image and mystique than a great entertain- with a score of 79. Limited Brands’ victoriassecret.com (77) strom.com and talbots.com, both at 73; ae.com, footlocker.com, ment executive….If the cultural vibe is right came in third, while eBags.com (75) and coldwatercreek.com gap.com, jcrew.com and lanebryant.com at 72; delias.com for more celebrities to promote brands, good (74) rounded out the top fi ve. at 71; abercrombie.com and saksfi fthavenue.com at 70, and executives will know how to leverage this.” Said Freed: “These retailers are doing a great job. What’s neimanmarcus.com at 69. — With contributions from Marcy Medina 14 WWD, FRIDAY, JUNE 1, 2007 WWD.COM

there will be no Dior Homme runway show, but rather an “intimate presentation” on Sunday, July Tiffany Raises Guidance 1, to present the spring-summer collection designed Fashion Scoops by new Dior Homme designer Kris Van Assche, By Vicki M. Young who replaced Hedi Slimane in April. The exact DIGGING FOR GOLD: Reports are circulating in Paris time, venue and format of the event have yet to be iffany & Co. on Thursday posted first-quarter results that beat Wall that L’Oréal may be close to adding another celebrity communicated. TStreet’s expectations by a penny, and raised full-year earnings per to its ranks. The beauty giant is said to be in talks share guidance. with Kate Winslet over a possible advertising deal CRYSTAL CRAZE: The company also said it was going to increase the number of stores by 10 with one of its brands. A tight-lipped spokesman for With Swarovski percent. L’Oréal declined to comment Thursday. sponsoring Monday For the three months ended April 30, net income rose 15.1 percent to night’s CFDA 49.7 million, or 36 cents a share, from $43.1 million, or 30 cents, in the FINAL UNVEILING: The construction on Diane Fashion Awards, same year-ago quarter. Sales also rose 15.1 percent to $620.9 million from von Furstenberg’s new space at 14th Street and it comes as little $539.2 million. Washington is more or less done, so the designer surprise that the The company said U.S. retail sales gained 15 percent to $298.7 million, celebrated on Wednesday night with a crowd that decor inside the with same-store sales rising 12 percent. Comps at the New York fl agship seemed to include every eligible member of the New York Public jumped 26 percent, while same-store sales in branch stores increased 9 CFDA, as well as friends like Ellen Barkin, Sandra Library will be a percent. International sales gained 15 percent to $248 million, but growth Bernhard, Ann Dexter-Jones, and Anderson Cooper. “I little heavy on the The lamp design for Monday’s in Japan lagged other overseas regions. Direct marketing sales increased can’t even remember when we met,” said Bernhard, crystals. For the CFDA Fashion Awards. 11 percent to $33.3 million due to the growth in the number of orders and night, the Austrian the average amount spent per order. crystal fi rm asked Studio Job to create several Michael J. Kowalski, chairman and chief executive offi cer, said in decorative elements, including 52 Insect motif table a statement that the jewelry retailer plans to increase the number of lamps adorned with more than 10,000 jet crystal Tiffany & Co. locations by 10 percent as well as introduce new product beads, and 10 oversize curtain tie-backs with nearly designs. “We are now one month into the second quarter, and sales in one million embedded jet crystal stones. “Entering May are achieving our overall expectation. Strong sales growth in the this year’s CFDA will be like entering an old world, U.S. and in most international markets is offsetting continued weakness a world with a very important history,” Studio Job in Japan,” Kowalski said. designers Job Smeets and Nynke Tynagel said of the He added that, based on “planned initiatives and a continued favor- awards’ look, in a joint statement. able retail environment,” the company is expecting 12 percent sales growth and earnings per diluted share in the range of $2.10 to $2.15. VIVA GIANNI: A decade after the designer was gunned Tiffany’s previous guidance was diluted EPS of $2.07. The anticipated down in Miami, the house of Gianni Versace and the 12 percent sales growth would raise yearly sales to almost $3 billion. city of Milan are getting ready to honor the designer’s talent in fashion and art. A Versace press conference is scheduled for June 15 at Milan’s Palazzo Marino city hall to unveil a series of celebratory events around town. Although company offi cials declined to Recognition Comes comment Thursday, word has it a ballet performance by Maurice Béjart (Gianni Versace had designed costumes for one of his ballets) will be held at the La Scala opera house on July 15, the day Versace was To Growing 24 Seven killed. A public area that could be a park or a street will also be named after the designer. ashion industry headhunting ing its global expansion by open- Ffirm 24 Seven Inc.’s founders ing a 24/7 Business Intelligence DIVING IN: Yves Saint Laurent will sponsor a grown- made the finalist cut for the Ernst & Center with a proprietary technol- up pool party at the Beverly Hills Hotel on June 14

Young Entrepreneur of the Year 2007 ogy platform, as well as opening ZACK SECKLER PHOTOS BY to benefi t Los Angeles’ Center Dance Association. Award in the Metro New York Area. offi ces in London and Seattle. The Ellen Barkin, Calvin Klein and Diane von Furstenberg. New York transplant Peter Bacanovic and Liane A panel of independent judges April debut in London, at 18 Soho Weintraub, founding chair of the CDA, are among the selected Celeste Gudas, Sheilah Square, marks its fi rst interna- co-chairs for the event, which will feature a water Hogan and Stuart Kagel, who tional offi ce, and 24 Seven hopes “but she saw me on Letterman, where I was talking ballet performance by water dance troupe Aquartist founded the firm in 2000, from the base connects it to Europe, about her line of paper towels” for QVC. Apparently, in the hotel’s outdoor swimming pool — for around nearly 100 nominations, as fi nal- as well as Asia. Meanwhile, the the designer loved the bit, even if Bernhard did 350 guests. Yves Saint Laurent chief executive ists who represent “outstanding Seattle offi ce will open in June not exactly love the towels. “They had a bit of offi cer Valérie Hermann and creative director Stefano entrepreneurs on a regional, na- to serve established Pacific a problem in the absorption department,” she Pilati are expected to attend, as are American Ballet tional and global level who are Northwest clients like Nike and recalled. Nearby, Marlo Thomas was buying a pair of Theater co-chairs Susan Fales-Hill, Sloan Lindemann building and leading dynamic, North Face and the region’s grow- earrings. “Everyone else is drinking,” she laughed. Barnett and Tory Burch and CDA supporters Demi growing businesses,” according to ing creative community. “I’m shopping. I love Diane. Did you know that $1 Moore, Colleen Bell, Vanessa Getty, Peter Morton, Ernst & Young. Winners of the Ernst & Young from the sale of every wrap dress goes to St. Jude’s Linda Evangelista, Jamie Tisch and Cameron Silver. The honor follows 24 Seven’s awards will be revealed at a gala Childrens’ Research Hospital? She’s so generous.” Yves Saint Laurent will preview its resort 2007 new status as a certifi ed Women’s on June 28 at the Marriott Marquis collection for the fi rst time in Los Angeles the night Business Enterprise, as recog- in Manhattan. Regional award HEAD START: Men’s fashion week in Paris kicking before the event, at a cocktail party at the home of nized by the Women’s Business winners are eligible for consid- off later this month will be minus one big runway Florence Sloan, wife of MGM Studios chairman and Enterprise National Council. eration for the Ernst & Young spectacle. A Dior spokesman confi rmed Thursday ceo Harry Sloan. Founded, owned and operated by Entrepreneur of the Year 2007 na- two female executives and a male tional program, which will be un- executive, 24 Seven stands by its veiled at the annual awards gala commitment to the growth of fe- in Palm Springs, Calif. Nov. 17, and male executives in creative indus- the overall national Entrepreneur Visa Opens ‘Swap Shop’ in London tries, according to the fi rm. of the Year award recipient is Both recognitions come at a considered for the world event in LONDON — Visa, the credit card company that dise Thursday from customers who will earn time of growth for the New York- Monte Carlo. makes a fortune on luxury shopping sprees, has got- points for the items they turn in. From June 15 based agency. 24 Seven is continu- — Whitney Beckett ten into the secondhand, cut-price fashion game. to 17, customers can return to the store to cash Visa Europe opened a temporary “swap in their points to buy the newly sorted, tagged shop” Thursday on London’s Brompton Road, and merchandised stock. When their points between Harvey Nichols and Harrods, where run out, customers can use cash or their Visa customers can trade in their old clothing and cards to pay for purchases. Visa plans to do- Movado Earnings Slide accessories for others’ castoffs. It’s purely a nate that money — it’s expecting to raise up to marketing move for Visa, which has cottoned on $40,000 — to TRAID. IN LINE WITH ITS EXPECTA- fi cer, in a statement. “We continue to the swapping trend that’s hot among London’s Although the bulk of the merchandise on tions, Movado posted a drop in to support all of our brands with young, fashion-forward — and environmentally sale will be secondhand, some of it will be new. fi rst-quarter earnings and a slight strong new product introductions conscious — crowd. Harrods plans to donate exclusive clothing, bags gain in sales on Thursday. and compelling advertising cam- All clothing not sold in the temporary shop and shoes to an area of the store called Swap First-quarter earnings fell 15.9 paigns. Across our portfolio, we re- will go to the U.K. charity TRAID, which raises Shop Boutique. Labels and designers including percent to $2.4 million, or 9 cents ceived an excellent response from money for poor communities by selling recycled Burberry, Issa, Sass & Bide, French Connection, per diluted share, from $2.9 mil- our retail partners to the powerful clothing and shoes. Topshop, Miss Selfridge, Bella Freud and Philip lion, or 11 cents per diluted share, array of new products debuted at “For us, it’s about publicity — not about mak- Treacy will also donate new, exclusive wares. during the same period last year. the Basel Watch Fair in April.” ing money,” said Fiona Wilkinson, senior vice Celebrities, including Naomi Campbell, Sales for the quarter increased The company said there was president of communications for Visa Europe. Kylie Minogue, Samantha Morton and Helena 3.7 percent to $101.4 million from also an improvement in the gross “We want to appeal to a young, female audi- Bonham-Carter have also pledged to offer some $97.7 million last year. margin rate during the quarter, ence and show that Visa can be about everyday of their hand-me-downs for the event. “We are very pleased with the which it sees as a key driver of its shopping for small things — and not necessarily During the June sales weekend, MAC strength of our fi rst-quarter perfor- efforts to expand operating margin about spending vast amounts of money.” makeup artists and stylists will be on hand to mance. As anticipated, sales growth levels into the mid-teens. The company has tapped Mischa Barton as help shoppers put their looks together. slowed in the quarter reflecting Movado said it expects diluted the face of the promotional campaign, and has Wilkinson said if the shop is a success, they a shift in the U.S. retail calendar, earnings per share for fi scal 2008 recently launched an editorially driven Web will take it on the road to other U.K. cities. and which resulted in timing differenc- to be approximately $1.72, as com- site, visaswap.com, with comments from fashion maybe even to continental Europe. The U.S. is a es in purchases by certain of our pared with fi scal 2007 adjusted di- editors, as well as advice on trends, hot items to possibility, too, but Wilkinson said Visa wants to customers,” said Efraim Grinberg, luted earnings per share of $1.54. swap and buying secondhand merchandise. gauge fi rst if there is any interest there. president and chief executive of- — Liza Casabona The shop started collecting used merchan- — Samantha Conti WWD, FRIDAY, JUNE 1, 2007 15 WWD.COM/CLASSIFIEDS

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Showrooms & Lofts BWAY 7TH AVE SIDE STREETS Design INDEPENDENT SALES REPS Great ’New’ Office Space Avail LANA FUCHS COUTURE, a Las ADAMS & CO. 212-679-5500 Assistant Designer Vegas based Luxury Women’s and Well est’d. Women’s Clothing Co. seeks a Children’s Apparel Company seeks In- creative Assistant Designer with 3-5 years seeks dependent Sales Reps with strong, experience. Knowledge of patternmaking, SALES ASSISTANT well est’d contacts with Dept. Stores, production, sourcing, and construction Nat’l Chains, and Specialty Boutiques. necessary. Opportunity for a new label Energetic & self-motivated individual Email: [email protected] development as the Designer. Qualified RETAIL MANAGER or Tel: 1-888-88-FUCHS. applicants may send their resumes to: with proven sales exp & leadership Box#M 1015 qualities. Must have strong organi- Four Seasons Resort Punta Mita is offering an exciting c/o Fairchild Classified zational skills, great follow through opportunity managing six new luxury boutiques in prestigious 750 Third Avenue, 5th Fl & strong sense of urgency. Computer New York, NY 10017 Punta Mita, Mexico. Our ideal candidate has luxury retail Regional Sales Reps skills are required. Position is in Rapidly expanding line of CASHMERE the New York Showroom. management experience, possesses exceptional people SWEATERS. Must have a following LET’S TALK PARTNERSHIP in your territory. Fax: 256-264-0215 or If you can provide designs and sales, Fax resume Attn: Shanah leadership and communication skills, and is able to interact E-mail: [email protected] we will take care of quality productions, 212-575-2645 either domestic or overseas. Confiden- EDI COORDINATOR w/ the most sophisticated level of customers. Spanish a plus. tial E-mail: [email protected] Convenient White Plains location. Responsible for daily EDI transactions Please forward resume to Rebeca Selley at and order processing. Excellent [email protected] benefits program. Please reply to: Sales Reps [email protected] Est’d. global garment mfr. seeks exp’d Fax: 914-428-0610 Dept. W regional Sales Reps for women’s fashion wear (dresses, skirts, tops, sarongs) selling Account Executive to speciality stores targeting individual Largest cosmetic packaging supplier in states (U.S., Puerto Rico, and Hawaii). PATTERNS, SAMPLES, the industry is seeking an Account Exec. Please Fax or E-mail all resumes to: PRODUCTIONS Fitter/Seamstress Technical packaging or cosmetic brush 212-868-2795 / [email protected] All lines, Any styles. Fine Fast Service. Seeking a senior couture fitter/ seam- knowledge a plus! 3-5 years selling experi- Sales Associate Call Sherry 212-719-0622. stress. Must have 5 years experience ence req’d. Fax/Email resume/cover letter: Luxury Boutique located at The Short fitting high-end couture garments and 212-371-8578 / [email protected] Hills Mall in NJ seeks FT/PT sales have great communication skills with associate. Great benefits, hourly rate + suppliers PATTERNS, SAMPLES, clients. Fax resume to: (212) 869-5795 commission. Please email resume to: real estate PRODUCTIONS [email protected] Full service shop to the trade. opportunities Fine fast work. 212-869-2699. Public Relations/Beauty travel Immediate opening for a Senior Acct careers REDUCE YOUR Exec w/ established editorial contacts. SHIPPING COSTS! Duties: product placement, pitching, Leverage the power of WWD among industry We are a Garment Manufacturer seeking events, writing releases and feature to share shipping costs. We have a stories. Salary upon request, benefits professionals to reach both active and passive job state of the art distribution center located after 6 months. Send resume to: seekers. in Secaucus, New Jersey. Clean, [email protected] organized, computerized and seeking other garment companies to share shipping costs with us. We ship and receive domestic and foreign product. SAMPLE CUTTER To discuss this opportunity, please 7th Ave fashion designer seeks exp’d contact Joann at 212-869-3300, x332 samplecutter for eveningwear. or email: [email protected] Call 347-439-5200 Call 1-800-423-3314 or email fpclassifi [email protected] to advertise.

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