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Into the Night

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Into the Night KARL LAGERFELD BIG BOSS AND CARINE HUGO BOSS OPENED ROITFELD FETED ITS LARGEST STORE THEIR BOOK YET, WITH A NEW WITH A PARTY LOOK, IN PARIS. AND DINNER IN PAGE 12 MANHATTAN. BOOK JACKET PAGE 9 SECOND-HALF CONCERNS Fashion Worries Over Fuzzy Global Economy By EVAN CLARK FORGET WINNING — it looks like the best the U.S. economy can hope for this year is not losing. Given the global outlook — with the euro zone facing an existential crisis and China cutting interest rates to support sagging growth — a status quo performance in FRIDAY, JUNE 8, 2012 Q $3.00 Q WOMEN’S WEAR DAILY the U.S. would not be such a bad thing. Executives at some of fashion’s biggest companies WWD have been warning investors that, while business trends have been solid, they see a weakening in the second half. The concerns range from a general consumer mal- aise and unemployment to fewer tourist dollars coming from Europeans and the weakness in China. Perennial outperformer Lululemon Athletica Inc. tripped some warning bells for investors Thursday when it said comparable-store sales gains would slow from a 25 percent fi rst-quarter rise to something in the low-double-digit range in the second three-month pe- riod. The company, which attributed the fi rst-quarter comp growth rate to low inventories a year earlier, saw its stock drop 8.8 percent to $63.84. Net income attributable to Lululemon rose 30.8 per- cent in the fi rst quarter to $43.6 million, or 32 cents a share, from $33.4 million, or 23 cents, a year earlier. Into Revenues for the three months ended April 29 in- creased 53 percent to $285.7 million from $186.8 million. While the yoga-inspired apparel-maker’s been on a growth tear, like other fashion companies this year it has been supported by employment gains that have given shoppers the confi dence to spend, even with just The 69,000 new jobs added in May. And the pressure from gasoline prices has eased — a gallon of regular has gone from almost $4 two months ago to $3.56, accord- ing to AAA. People also started off the year with more money on an absolute basis. Household net worth grew by $2.8 Night trillion, or 4.7 percent, in the fi rst quarter, the Federal Reserve said Thursday. But that gain was highly de- pendent on stock holdings and now the market is on in- With its newest men’s creasingly shaky ground, coming off a rally as investors fragrance, Encounter, Calvin SEE PAGE 5 Klein is channeling a fi lm- noir vibe — underlined by its choice of celebrity spokesman, Kors on Design and Fame “True Blood” star Alexander By ROSEMARY FEITELBERG Skarsgård. Encounter Calvin Klein will be launched in the NEW YORK — Michael Kors may have attained mul- timillionaire status, but Wednesday night at 92Y the U.K. in late August, to be designer was more eager to dish about how a kid followed by a global from Long Island rollout in September. Michael Kors wound up with a global business For more, see page 6. worth billions. Whether clue- ing the crowd into how he changed his name from Karl Anderson Jr. after his mother remarried or how, at the age of 11, he opened The Iron Butterfly Boutique in the basement of his family’s house, the designer didn’t sugarcoat any of the nitty-gritty. And the audience laughed as if his 90-minute Q&A with Fern Mallis was a stand-up act. In his 31st year in business, Kors had plenty of ma- terial — including setting up a Madame Paulette-type laundry service at camp, dropping out of the Fashion Institute of Technology, meeting Yves Saint Laurent when he was 20, interviewing Elizabeth Taylor in her SEE PAGE 4 PHOTO BY GEORGE CHINSEE. STYLED BY AMY LOMACCHIO 2 WWD FRIDAY, JUNE 8, 2012 Prada Net, Sales Climb in First Qtr. THE BRIEFING BOX Sales of leather goods in- with the same period last year. By LUISA ZARGANI creased 58.2 percent and now Wholesale revenues, which ac- IN TODAY’S WWD account for more than 62 percent counted for 15 percent of sales, MILAN — Despite the uncertain of consolidated revenues, which grew 41.5 percent, which the An image of Kate Moss from the Mario Testino exhibition. economy, Prada SpA saw profits Galli also attributed to the fast- company partially attributed to and sales soar in the first quarter, growing markets in the Far East delayed deliveries from the pre- lifted especially by growth in the and more consumers from that vious year. Asia-Pacific region and Europe, region traveling. Clothing and International expansion in the and a strong performance in footwear grew 29.7 and 36.3 per- quarter included the opening of leather goods. cent, respectively. Shoes account- eight directly operated stores in In the period ended April 30, ed for 20 percent of sales, while Paris, London, Moscow (two), São the Italian luxury firm’s net prof- apparel, 17 percent. Paulo, Mexico City, Hangzhou, its climbed to 121.7 million euros, Geographically, Europe China, and in Sardinia’s resort or $160.6 million, up 111 percent showed ·· 55.5 percent growth, town Porto Cervo. Seven more from 57.7 million euros, or $80.7 boosted by the rising number of units were unveiled in the weeks million, in the same period the tourists, and accounted for 22 following the end of the first previous year. percent of sales. On the domes- quarter, for a total of 402 directly Revenues gained 47.9 percent tic front, which accounted for 16 operated stores. to 686.7 million euros, or $906.4 percent of sales in the quarter, Galli said the company is million, from 464.3 million euros, Galli said he “cannot think it will “well on track” in terms of store or $650 million. surge in the second half; it will development, with more open- Dollar figures are converted stay weak.” He remarked that ings expected in the second half. at average exchange rates for the “Italians are buying less food, can “We have 50 percent of contracts periods to which they refer. you imagine them buying more signed, there is a possibility to Chief executive officer Patrizio bags? The mood is not good.” slow down if something very Bertelli said he was ex- negative should hap- U.S. fashion companies face an uncertain economic tremely pleased with the pen,” said Galli. He un- future given troubles in Europe and Asia. PAGE 1 performance, especially derscored that the com- in light of the “uncertain pany is not changing its At 92Y in New York on Wednesday, Michael Kors dished and very unpredictable Italians are buying less expansion plans even about how a kid from Long Island wound up international environ- with the uncertain glob- with a global business worth billions. PAGE 1 ment.” Bertelli touted food, can you imagine al economy. For exam- Prada’s global “balanced ple, with its 26 stores in Alexander Skarsgård of “True Blood” as been signed geographical presence” China, “there is no over- as the face of Encounter Calvin Klein. PAGE 6 and the strength of the them buying more bags? exposure” in that area, group’s brands. “We re- said Galli, adding that Karl Lagerfeld will create a special holiday collection for main confident of our The mood is not good. the region is expected Japanese beauty firm Shu Uemura. PAGE 6 ability to achieve our to count 50 boutiques by objectives and shall — DONATELLO GALLI, PRADA SPA the end of 2013. Seizing on the success of Versace’s Vanitas eau de closely monitor the eco- Generally speaking, parfum, Euroitalia, the brand’s licensee, is launching an nomic situation in the the executive said he eau de toilette version of the scent. PAGE 8 countries where we op- was neither “too opti- erate to ensure that our mistic” nor “too pes- Kourtney, Kim and Khloé Kardashian have signed on strategy of medium-term growth Galli quoted Bertelli saying simistic,” and that the group’s to launch their own color collection, Khroma Beauty, at is compatible with requirements that this year in particular calls strong results in the first quarter Ulta this winter. PAGE 8 on the various markets,” conclud- for “a look [at the business] on a were “even a little unexpected.” ed Bertelli. day-to-day basis.” Prada’s chief, Cash flow helped finance the Carine Roitfeld and Karl Lagerfeld were on hand in Earnings before interest, said Galli, has also hinted at a group’s capital expenditure for New York to celebrate “The Little Black Jacket: Chanel’s taxes, depreciation and amortiza- possible “gradual increase of the period, which totaled 55.3 Classic Revisited” exhibit and book. PAGE 9 tion climbed 77.2 percent to 200.1 prices, up to 10 percent over million euros, or $73 million, million euros, or $264.1 million, the next month if the euro stays compared with 45 million euros, Even The New York Times is on Pinterest now. On its and operating profit gained 105.6 weak, although the company is or $63 million, last year, and was profile, it has boards dedicated to hair, summer escapes percent to 164.8 million euros, or not dependent on euro spend- mainly aimed at the expansion and crunchy food. PAGE 9 $217.5 million. ers.” Without being specific,·· the and renovation of its retail chain. All the group’s brands showed executive pointed to “very im- Prada channeled about 10 million Looking back at a July 2010 Skype interview with growth, led by the Prada label, portant appointments” over the euros, or $13.2 million, into the science fiction author Ray Bradbury, who died Tuesday where sales rose 53.2 percent to next few months, meaning the acquisition of industrial facilities.
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