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Gant with an Edge

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Gant with an Edge HARBOR COURT PROTECTION FANTASY MARIA SHARAPOVA INVESTS IN LIGHTS SUN-CARE BRAND SUPERGOOP. PAGE 6 CHRISTIAN DIOR ISLE TOOK ITS COUTURE INSPIRED BY THE COLLECTION ISLAND OF CAPRI, ITALIAN ON THE ROAD FOR A BRAND GICAPRI IS SHOW OVERLOOKING RELAUNCHING IN THE U.S. HONG KONG HARBOR. PAGE MW1 PAGE 4 FOCUSING ON INNERWEAR Victoria’s Secret Trims Apparel Collections By DAVID MOIN LESLIE H. WEXNER, the chairman and chief execu- tive offi cer of L Brands Inc., is taking another sharp turn away from the apparel business. WWD has learned that Victoria’s Secret will be narrowing its apparel offering by dropping most of its THURSDAY, APRIL 10, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY wovens, outerwear, denim and some of the dress of- WWD fering as well. Hundreds of millions of dollars worth of revenues will be shed, with one apparel source estimating anywhere between $500 million and $750 million of volume. However, those apparel products that more direct- ly relate to Victoria’s Secret’s core offerings (primar- ily lounge and beach-related merchandise) will re- main on the menu. Victoria’s Secret’s core offerings Gant are intimate apparel, fragrances and cosmetics. In addition, the apparel cutback is expected to lead to layoffs, including possibly designers and sourcing staff. L Brands said it was too early to provide any fi g- ures on staff or volume reduction. Details are expected With to emerge at the company’s next earnings call in May when offi cials elaborate on the strategy. Changes to the Victoria’s Secret collection will begin being evident right away but most noticeably by next fall. The decision to cut back, revealed internally at L An Brands headquarters in Columbus, Ohio, on Tuesday, impacts Victoria’s Secret Direct. It does not affect the Victoria’s Secret stores, which stick to the core offerings. It also does not affect Pink, which targets college girls and focuses on sleepwear and lounge- Edge wear including sweats, hoodies, leggings, shorts, yoga, T-shirts, tank tops and tunics, as well as bras and panties. Last year, VS Stores generated $5.2 billion in Swedish-based Gant this fall will sales and VS Direct generated $1.5 billion in sales. launch Gant Rugger for women. While revenues will be lost, Victoria’s Secret could The capsule collection, which is make up the shortfall by redirecting its efforts. “We younger and more directional than know we’re most successful when we remain focused Gant, features 16 key pieces with SEE PAGE 8 a cool, downtown vibe. It will be distributed in Gant Rugger stores Yahoo Taps Bobbi Brown in the U.S. and internationally. For more, see page 5. In Fashion, Beauty Push By JULIE NAUGHTON and ALEXANDRA STEIGRAD YAHOO WANTS a bigger piece of the fashion and beauty pie. The Web giant on Wednesday signed Bobbi Brown as editor in chief of its online beauty magazine, mark- ing another high-profi le hire in its push to create digi- tal magazines. It is understood more appointments in the sector will be made later this week, according to sources, who declined to provide details. One name being mooted as a possible recruit is Elle creative director Joe Zee, who would presum- ably help oversee Yahoo’s fashion channels. Zee did not return requests for comment, and a Yahoo Inc. spokeswoman declined comment. The appointments would be the latest in a string of similar hires over the last few weeks. Last month, the site hired former Page Six editor Paula Froelich to oversee its travel section and ex-Vulture editorial di- rector Josh Wolk to head up the entertainment vertical. Sarah McColl, former managing editor of Yahoo Food, was promoted to editor in chief of Yahoo Food. Other big names who have recently joined the company in- clude New York Times alums David Pogue, who now heads up Yahoo Tech, and Matt Bai, who serves as a na- tional political columnist for Yahoo News. Yahoo also added Katie Couric as global anchor earlier this year. The moves are all part of the strategy of Marissa Mayer, Yahoo’s president, director and chief execu- PHOTO BY JOHN AQUINO; STYLED BY MAYTE ALLENDE tive offi cer, to get the company back on the growth MODEL: READ/MUSE; HAIR AND MAKEUP BY KATSUMI MATSUO/ARTMIX BEAUTY MATSUO/ARTMIX KATSUMI MODEL: READ/MUSE; HAIR AND MAKEUP BY SEE PAGE 8 2 WWD THURSDAY, APRIL 10, 2014 WWD.COM Louis Vuitton Drives LVMH’s Q1 Sales THE BRIEFING BOX line as positive factors. IN TODAY’S WWD By PAULINA SZMYDKE In the same period, selective retailing edged up 5 percent to 2.2 billion euros, or PARIS — LVMH Moët Hennessy Louis $3 billion, buoyed by “the ongoing devel- Vuitton said sales advanced 4 percent in opment of tourism in Asia,” most notably reported terms to 7.2 billion euros, or Macao and Hong Kong. Miroslava Duma dons $9.9 billion, in the first quarter ending The group’s wines and spirits busi- a spring Valentino March 31, versus 6.9 billion euros, or ness, meanwhile, declined 8 percent gown with a vintage $9.1 billion, in the year-ago period. to 888 million euros, or $1.2 billion, air. For more The growth in sales resulted from due to the destocking of cognac celebrity fashion, a strong performance of the con- by retailers in China, the luxury see WWD.com. glomerate’s fashion and leather goods maker explained. goods business, which rose 11 per- Dollar figures are converted cent to 2.6 billion euros, or $3.6 bil- from euros at average exchange IMAGES lion, helped by Louis Vuitton. rates for the periods in question. “Louis Vuitton had an excellent LVMH observed continued start to the year,” the company said growth in the United States and Wednesday, pointing out its new ar- Asia, particularly Japan, while BENETT/GETTY M. tistic director, Nicolas Ghesquière, Europe “demonstrated resilience and the strong performance of a in a still challenging economic en- DAVE range of looks from the Monogram A Louis Vuitton handbag. vironment,” the company said. BY PHOTO David Jones Board Recommends Sale Offer Victoria’s Secret will be narrowing its apparel offering by premium on the price of David Jones shares on dropping most of its wovens, outerwear, denim and some of the By PATTY HUNTINGTON Jan. 30. dress offering as well. PAGE 1 Shareholders will have the opportunity to vote SYDNEY — Australian retailer David Jones said on the Woolworths proposal in late June. Yahoo’s signing of Bobbi Brown as editor in chief of its online Wednesday its board recommends a 4 Australian Citigroup analyst Craig Woolford said he esti- beauty magazine marked another high-profile hire in the Web dollar, or $3.73, per share takeover offer from South mated the Woolworths deal could achieve 50 mil- site’s push to create digital magazines. PAGE 1 African retail group Woolworths. That price values lion Australian dollars, or $47 million, in synergies. David Jones at 2.15 billion Australian dollars, or “Woolworths has a significant own-label range Christian Dior’s first haute couture show in Hong Kong drew about $2 billion. in both food and nonfood. The company also owns celebrities and VIPs from across the region. PAGE 4 “David Jones is an iconic brand with a long and 88 percent of [Australian fashion chain] Country justifiably proud history. This is a compelling pro- Road. We expect the most significant synergies are Swedish-based Gant will launch a women’s Gant Rugger posal which represents a significant premium to in sourcing, adding private label and improved PAGE 5 not only our intrinsic value but also to broker valu- merchandising. Woolworths South Africa — and capsule collection for fall. ations and to recent share prices. It represents a Country Road — also operate a strong loyalty pro- substantial earnings multiple,” said David Jones gram and have experience in financial services,” Vince’s new kids’ line, aimed at children ages four to 14, will PAGE 5 chairman Gordon Cairns. Woolford said. launch in June. Shares in David Jones Ltd. surged 22.5 percent “The key remaining question is whether this on Wednesday as investors digested the news. They proposal will result in other global department Lana del Rey will be at the Cannes Film Festival this year as the finished the day on the Sydney exchange at 3.91 stores taking a closer look at David Jones. The syn- star attraction at the amfAR Cinema Against AIDS gala. PAGE 7 Australian dollars, or $3.64. ergies for Woolworths are boosted by its Southern The announcement blindsided the market, Hemisphere connection, but we could not rule out Louis Vuitton and actress Michelle Williams have reunited for following three months of speculation over the another bid,” Woolford said. a new campaign spotlighting the French leather goods maker’s fate of David Jones. Rival Australian department However, IG Markets analyst Evan Lucas be- key city bags. PAGE 8 store chain Myer made an unsolicited 3.2 billion lieves another deal is unlikely. Australian dollar ($3 billion) share swap merger “Looking at the share trading this morning, it GiCapri is the first brand to be put “In the Spotlight,” Men’s proposal for David Jones. That deal was made pub- would suggest the market thinks this deal is prob- Week’s new feature profiling up-and-comers. PAGE MW1 lic in January. Last month, David Jones announced ably fair value and you’re unlikely to see another it had appointed three investing banking and man- deal coming in over the top,” said Lucas. “If they Clare Vivier is translating her brand’s French-meets-Los agement consultants to assess the proposal.
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