Love Potion NEW YORK — in a Business Sometimes Criticized for Sameness, Clarins Has Come up with an Unusual Fragrance Concept: a Mother and Daughter Combo

PATRICIA FIELD’S NEW DASH/5 CIRCULATION SECRETS/16 WWWDomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • January 21, 2005 • $2.00 Beauty

Love Potion NEW YORK — In a business sometimes criticized for sameness, Clarins has come up with an unusual fragrance concept: a mother and daughter combo. Par Amour and Par Amour Toujours are meant to symbolize the bond of love. It will begin a global rollout in March. For more, see page 7.

Gauging the Fallout From Latest Federated-May Merger Talks By Vicki M. Young and David Moin after three previous attempts unparalleled power over vendors NEW YORK — Will the fourth time be a stretching back to the Eighties and mall operators alike. charm? failed to produce a deal. But a News of the talks sent May’s Federated Department Stores merger, if completed this time, shares up 9.2 percent on Thursday and May Department Stores are would rock the U.S. department to $34.25. Intraday trading ranged said to be in merger talks once again store scene, giving Federated See Federated, Page 14 PHOTO BRYN KENNY GEORGE CHINSEE; STYLED BY BY 2 WWD, FRIDAY, JANUARY 21, 2005 WWW.WWD.COM WWDFRIDAY Safeguard Legal Battle Rolls On Beauty By Kristi Ellis inary injunction in the case on Jan. 3. The Justice GENERAL Department argued in its motion to dismiss the case Shares of May Department Stores jumped 9 percent on news that Federated WASHINGTON — The legal tussle over whether that the court lacks jurisdiction to consider USA- Stores was eyeing it as an acquisition that could fetch $15 billion. the U.S. government has the authority to impose ITA’s complaints because the safeguard petitions 1 limits on Chinese textile and apparel imports con- under review have not been decided. It also said The legal tussle over the government’s right to impose limits on Chinese tinued with the filing of a legal brief by the U.S. the USA-ITA does not have the right to challenge 2 imports raged on, as USA-ITA filed a brief against dismissing the case. Association of Importers of Textiles & Apparel. CITA’s deliberations and has not exhausted the ad- Patricia Field has joined forces with Damon Dash to create a limited-edition The association, which filed a lawsuit against ministrative remedies provided by the government the government last month challenging its author- to challenge the safeguard petitions. 5 collection for Rocawear called Patricia Field for The House of Rocawear. ity over China threat-based safeguard petitions, USA-ITA lawyers wrote that the government’s BEAUTY: Executives running Dior’s U.S. business, Pamela Baxter and Terry filed the brief Wednesday night opposing the gov- exhaustion of remedies argument is “unpersua- 6 Darland, are reporting strong sales growth after trimming the door count. ernment’s motion to dismiss the case. sive,” because the association has no “tangible ad- “The defendant repeatedly misstates USA-ITA’s ministrative means in which to challenge CITA’s BEAUTY: Clarins is counting on the power of love with a mother-daughter claims, instead setting up strawmen assertions, interpretation or application of the China safe- 7 launch of tandem fragrances called Par Amour and Par Amour Toujours. and wholly fails to address the actual issues pre- guard procedures.” sented in USA-ITA’s complaint,” the brief stated. Domestic textile, fiber and apparel producers The group’s response came amid speculation filed a dozen safeguard petitions targeting some $1.9 SUZY over whether the government would appeal a two- billion in Chinese apparel and textile imports in an David de Rothschild breaks the record for traversing the Antarctic…Bring week-old temporary injunction that stops the gov- effort to save U.S. textile and apparel jobs from an 4 on the Oscars…The donkeys and elephants mix it up. ernment’s interagency Committee for the expected surge in Chinese imports this year. The Classified Advertisements...... 19 Implementation of Textile Agreements from re- producers claim the injunction and delay in the re- To e-mail reporters and editors at WWD, the address is viewing a slew of petitions seeking fresh limits on view process will further hurt the beleaguered sector. [email protected], using the individual’s name. Chinese imports based on the threat of market dis- The National Council of Textile Organizations WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 ruption. In addition, one of the U.S. textile trade asserts in its report that job losses and mill closings FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. groups that filed the China safeguard petitions re- in 2004 were tempered by three China safeguards VOLUME 189, NO. 14. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one leased a year-end economic report urging the gov- the government imposed on imports of knit fabric, additional issue in June; two additional issues in April, May, August, October, November and December, and three additional issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL ernment to file an appeal of the injunction quickly. bras and dressing gowns and robes from China. OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., A Justice Department spokesman did not return Those safeguard quotas have since expired, and Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, calls on Wednesday, and government offices were three renewals are among the 12 pending petitions. Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- closed Thursday in observance of Inauguration The National Textile Association also issued a President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at Day. A spokesman repeatedly said over the past statement asking the Bush administration to file an additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. two weeks that the Justice Department was review- appeal, self-initiate safeguards based on market POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR ing whether to file an appeal. disruption early this year and speed the release of SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is USA-ITA, which represents large importers such import data, which currently lags a month behind required for change of address. Please give both new and old address as printed on most recent label. First copy of new as J.C. Penney Co. Inc. and Liz Claiborne Inc., sued most other government reports, in order to “stream- subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production five federal agencies in the U.S. Court of line the collection of import statistics.” correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild International Trade in Manhattan on Dec. 1, claim- U.S. textile and apparel employment fell by magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully ing the government violated its own published regu- 32,100 to 676,500 in 2004, as some 30 textile mills screened companies that offer products and services that we believe would interest our readers. If you do not want to receive lations and the Administrative Procedures Act, ex- shut their doors after 50 plants closed in 2003, the these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED ceeding its authority over safeguard petitions. The report said. Textile corporate sales “improved MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND association is seeking a permanent injunction slightly,” up 5.7 percent to $37 billion last year, but TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED against CITA reviewing threat-based petitions. textile profitability remained “marginal” at 1.8 TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Senior Judge Richard Goldberg issued a prelim- percent of sales, the NCTO reported. ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. Quote of the Week “You can become jaded. It’s such a difficult time for Washington. The traffic doesn’t move. You can’t get anything delivered.” — Letitia Baldridge on Inauguration Week In Brief The 1951 window… …and today. PHOTO BY DAVID TURNER ● CHINA PROTEST: Two protesters angry about Chinese government policies unfurled signs and screamed their complaints Thursday during the opening ceremony of the Chinabrand 2005 L&T Windows Reflect Cassini’s Career Expo at the Jacob K. Javits Convention Center in Manhattan. Lin Xin Bu began shouting during the conclusion of remarks by An NEW YORK — Truman was in year-old designer has been “vali- had to go to New York if you want- Min, China’s vice minister of commerce. He said he wanted to the White House and women dated” by two of the top execu- ed to be a significant designer.” remind the world of the massacre of prodemocracy activists in still wore hats the first time tives at L&T. It was the store’s Shaver’s decision to turn over Tiananmen Square in 1989. The second protester appeared from Oleg Cassini landed the win- first female president, Dorothy all the store’s windows to this lit- behind the podium while New York Secretary of State Randy dows at Lord & Taylor’s Fifth Shaver, who initially helped tle-known designer saved his Daniels was speaking. Chinese speakers present said he was Avenue flagship. More than half launch his career in 1951, and business. “It was the difference complaining about the Chinese government’s policies regarding a century later, the designer is now president and chief execu- between survival and disappear- Taiwan. The island regards itself as an independent nation, but doing the honors again. tive officer Jane Elfers has ance. I didn’t have any money, authorities in Beijing consider it a province of China. Both pro- Under the banner “Now and helped refresh it. Shaver was in- and I hadn’t made a lot of money testers were escorted out of the building by security. Then,” the store is now showcas- strumental in launching other in the army after five years. ing in its windows Cassini’s new designers’ careers, including In the meantime, he said he is ● NO DEAL: Krizia issued a statement firmly denying a press re- white denim collection, and six Claire McCardell, who worked happy to have L&T plaster his port in Milan speculating that its longtime Japanese licensee white vintage dresses, including a as an L&T buyer at one point. name and sketches of his face Sanyo Shokai was looking to take control of the Milan-based few worn by Jacqueline Kennedy. Despite the five decades that “all over the place like a pharaoh firm. Since 1988, Sanyo Shokai has produced and distributed the Near the store’s entrance, have passed, Cassini said he from Egypt.” The flagship will K of Krizia and Evex by Krizia lines under license. “We have re- passersby paused Thursday to get vividly remembers how Shaver throw a party in his honor cently renovated the license, but there are no transactions to a closer look at two larger-than- was “stern, but very polite and Wednesday night. sell the company to Sanyo Shokai,” said the statement. life photos of the former first lady encouraging” to him. LaVelle Olexa, senior vice with the jaunty president. Fresh from five years in the president of fashion merchandis- ● MINI FASHION: The Fashion Institute of Technology will be Unlike the pedestrians, Cas- U.S. Army and a run designing ing, said, “He is almost an institu- the first stop on a 10-city tour for an exhibition of miniature sini is taking the flashback in costumes in Hollywood, he relo- tion. His name is internationally fashion designs. Sponsored by Alcantara, a leading Italian tex- stride. “To me, it’s just the pro- cated to New York in the early known. He is a phenomena. Fifty tiles firm, with help from Mittelmoda International Lab, the dis- gression from the constant effort Fifties. “After doing three or four years is a very long time for the play will be up through Jan. 24 in FIT’s Great Hall. Ninety-five to improve. It represents what I’m motion pictures in Hollywood, I fashion business, where we see fashion design students from 10 institutions created outfits with trying to do. There is a very young realized fashion in Hollywood such great talent come and go. Alcantara fabrics for 13-inch mannequins. After New York, the note, and there is the classical.” was going downhill because of TV He deserves to be recognized.” show goes to Sao Paolo, Brazil and then on to Europe. More importantly, the 91- and other things,” he said. “You — Rosemary Feitelberg © 2004 Elizabeth Arden Inc. Catherine Zeta-Jones

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A new fragrance. 4 WWD, FRIDAY, JANUARY 21, 2005 WWW.WWD.COM Ice Breakers ● Driver’s License ● Wild in Washington

an Oscar nod, which may be a long shot, considering she Minnie Driver lip-synchs her way through her role as an opera diva in “Phantom.” But the two things she loves the most are singing and movies, and she says, “The thought of singing at the Academy Awards fills me with such glee — it would be both bizarre and amazing.” I’ll say. Minnie also says she’s been receiving Oscar dresses from stylists for the last three months, and so has Gwyneth Paltrow. Gwynnie says she can’t even look at the Oscar she won in 1999 for “Shakespeare in Love” because she is still embarrassed when she remembers how she cried and sobbed through her acceptance speech. “I keep it tucked away at the back of the bookshelf in my bedroom because it weirds me out. I won’t even put it on the mantelpiece. I just feel sort of embarrassed, and it brings up traumatic feelings. It’s associated with a tough time in my life.” I feel like crying myself when I remember that pink Ralph Lauren she wore when she won. ● First Lady Laura Bush asked Lana Marks to design the two one-of-a-kind couture bags for her to use at the inauguration festivities. She carried a powder gray leather clutch to go with her winter white Oscar de la Renta dress and coat, and for a series of candlelight dinners across the capital, she carried Lana’s pastel pink baby inaugural tote, lined in the identical beaded fabric of her Peggy Jennings pink gown. This bag is carried open to show the beadwork and to make it easy to retrieve a lipstick. I knew you’d want to know. As for Lauren Bush,the long satin cream-colored dress with straps that she wore to perfection was designed by Ralph Lauren. ● Buffy Cafritz, the redheaded dynamo and Washington hostess par excellence, may just have invented the trick of how to win (and keep) friends and influence people in our nation’s wildly partisan capital. Everyone knows she and her husband, Bill, are true, blue Republicans but Democrats love them, too, and when Buffy gives a party, you will always find donkeys happily cavorting with elephants. In Suzy Washington, that’s a big By Aileen Mehle deal. It’s bipartisan big- time, and all the big shots Three rousing cheers! David de show up for the fun. Rothschild, the 25-year-old son of Sir Buffy and Bill Evelyn de Rothschild and his former wife, (sometimes along with co- eye® Victoria, has broken the world record for host friends) have been the 1,149.5-mile coast-to-coast traverse of giving their presidential the Antarctic continent, crossing the perilous Axel inaugural eve party Heiberg Glacier. The last time the record was set was in beginning with President 1911 by the famous explorer Roald Amundsen, who Ronald Reagan’s first took 99 days. David and his three British teammates inauguration in 1981. Over completed the arduous trek in 52 days on skis to win the years, the venues have the Trans-Antarctica Challenge. They pulled 220 Phyllis George changed, but the guest list pounds of supplies across the tundra of the Trans- remains powerful — Antarctic Mountains and the South Pole in 30-degrees- cabinet members, senators below-zero weather to reach the finish line on the and congressmen, ambassadors, the lot. Ronne Ice Shelf on Antarctica’s western perimeter. This year, Buffy and Bill, along with Phyllis Only 10 other people have made this trudge, but all George, Kelly and Robert Day and Ann and Vernon from the opposite direction. David and his friends will Jordan, entertained the celebrating multitudes at a be listed next year in the “Guinness Book of World supper at Café Mozu in the Mandarin Oriental Hotel. Records” for their feat. He adds this accomplishment to The windows of Café Mozu look out over the his list of other extreme conquests, including the Jefferson Memorial and the Potomac Basin, so even if treacherous triathlon, Escape From Alcatraz. He hopes you went heavy on the champagne, you always knew his journey will raise awareness of global warming in where you were. the polar zones and emphasize the need to protect their Tip-toeing through the butternut squash soup, the ecology for the future. He returned to London this crab cakes, the chicken hash and the chocolate mousse week for any number of celebrations, and of course his were such dignitaries as Secretary of State and Mrs. parents are very, very proud of their boy. Colin Powell; Senator and Mrs. George Allen; Supreme ● Court Justice Stephen Breyer; the philanthropist Eli Now that the Golden Globes are over, the focus in Broad and Mrs. Broad; Senator and Mrs. J. Bennett Hollywood is, of course, on the Oscars, to be held at the Johnston; the British Ambassador and Lady David Kodak Theater on Feb. 27 with Chris Rock as host. The Manning; the Hon. and Mrs. Robert Mosbacher; the nominees will be announced Tuesday by Adrien Brody. Kuwaiti Ambassador and Mrs. Salem Abdullah; Senator Charlize Theron, last year’s best actress winner, will and Mrs. Christopher Bond; the Jordanian Ambassador hand out this year’s best actor award, and she’s already and Mrs. Karim Kawar; Paige Rense and Kenneth looking at sketches and samples from all the world’s top Noland; Mr. and Mrs. Stephen Schwarzman (he is the designers as well as ideas from several of the lesser- chairman of the Kennedy Center); the Hon. Nancy knowns. With her sun-kissed beauty and golden gown, Brinker; Jan Chipman (she is Buffy’s sister); she was the hit of last year’s awards show. Congressman and Mrs. Roy Blunt; Mr. and Mrs. Roland Minnie Driver is telling the world she would like to Betts, and the Hon. and Mrs. Wayne Burman (she is the sing a song from her new film, “The Phantom of the Buffy Cafritz new White House social secretary.) It is not necessary Opera,” if one of Andrew Lloyd Webber’s melodies gets to say a good time was had by all. GEORGE PHOTO BY PATRICK MCMULLAN PATRICK GEORGE PHOTO BY WWD, FRIDAY, JANUARY 21, 2005 5 WWW.WWD.COM A Dash of Pat Field By Lauren DeCarlo “If I was a girl, I’d do it up like Pat,” Dash said, com- menting on Field’s style, as he paced around his beige The collection has NEW YORK — Patricia Field, the maven of urban chic, office, wondering why there was no music filling the air. a rock star-meets- has joined forces with Damon Dash to create a limited- He occasionally glanced at the digital clock hanging motor club vibe. edition collection for Rocawear, appropriately titled next to his desk that listed the exact times in New York, “Patricia Field for The House of Rocawear.” Los Angeles and London. “Pat is a cool chick, and we have a mutual respect for “The thing is, I’m not a designer in that sense. I’m a each other,” Dash said last week from his 38th-floor cor- retailer and merchandiser,” said Field. “I needed to ner office at 1411 Broadway here. “Cool recognizes cool, know where Rocawear’s capability was, what they were and I’m supportive of anyone who supports me.” set up to do and what their business was like so that I The collection will launch at retail in the fall and will could go on without going in the opposite direction. And conclude with a holiday line. It boasts a rock star-meets- we went from there.” motor club vibe with appropriate measures of glam and The collection, Field said, is worn by women sexiness thrown into the mix. In other words, vintage who are dressing according to style, not age. Patricia Field. “Because the clothes are sexy, we have a “We didn’t choose Pat for her name,” Dash said from bigger base with a younger audience behind his desk, decorated with interlocking silver Ds who’s out there going to clubs — not on the frame, a stunning view of the Chrysler Building going home to watch TV,” she said. behind him. “We chose her for her sense of style. But it Both Dash and Field cited Rachel doesn’t hurt that people know who she is.” Roy, design director for Rocawear’s The collection consists of fitted, laced-up skirts and women’s and children’s line and head pants; dresses with plunging necklines, and tailored fleece designer for the Rachel Roy collec- motorcycle pants with matching motorcycle and bomber tion launched late last year, as the jackets. The denim collection features paint-splattered driving force in the collaboration. and rubber-printed designs, and knit separates come in She also recently married Dash. bold, Eighties-inspired colors such as purple, hot pink, yel- “I had a bunch of designers low and blue over a heather and caviar-black base. down on a wish list to do a There are roughly 25 designs in the line, which guest-celebrity injection, but at wholesales in the range of $44 to $58, a price point about the end of the day, I didn’t feel 15 to 20 percent higher than the existing Rocawear jun- right about choosing someone ior collection. Christopher Laurita, president and chief that wasn’t a friend,” said Roy. executive officer of Signature Apparel Group, the com- “Since Pat was on my list, I pany that holds Rocawear’s junior apparel license, thought, ‘How could we not orchestrated the deal with Field. use Pat?’” Patricia “We’re expecting the wholesale volume for this col- Roy said the celebrity injec- Fieldield forfor lection to reach $5 million, at a minimum” said Laurita. tion trend will continue with The House The collection will be available at Field’s SoHo boutique, Rocawear, though she declined of Rocawear Hotel Venus; Federated stores nationwide, and urban to name future candidates. “I hits stores chain stores such as D.e.m.o. and Up Against the Wall. have a wish list, but neither inin thethe fall.fall. Initially, Laurita said, Dash and Field had a summer Damon nor I have approached collection in mind, but the project didn’t come together anyone,” she said. The celebrity in time. injection, she said, is a neces- “I’m actually really happy we decided to push it back sary part of keeping the to fall and holiday because the product is now more Rocawear brand fresh. effective,” said Laurita. “You can do so much more with Roy said Field’s ease at outerwear and denim.” mixing high- and low-end mer- Fortunately, Field was already familiar with the chandise is crucial to under- Rocawear junior collection. “Little by little, Damon and standing Rocawear. “I base the I started to work together in different ways,” said Field, Rocawear junior collection off seated in a showroom at the Rocawear offices and that philosophy,” Roy said. dressed in a tan Rocawear jumpsuit, with her fire red The flexibility of her sched- curls framing her face. Field said she frequently uses ule on “Hope & Faith,” Field clothes from the Rocawear women’s collection when acknowledged, has allowed her styling Faith Ford and Kelly Ripa on the television show to work on other projects, such “Hope & Faith.” as the Rocawear collaboration. “I like working with people who I feel I’m on the same “‘Hope & Faith’ is a come- wavelength with. I like young, affordable, sexy clothes, dy that requires just a frag- and I think Rocawear embodies all those elements. I feel ment of my time, so it allows like they needed my element, which is sexy girlie, and me to do so many more they wanted to introduce something in my image.” things. The last thing I would want is to have done some- Damon thing similar to ‘Sex and Dash and the City,’ ” she said. “I did Christopher it. Now, I want to do some- Laurita thing else. I don’t want to repeat myself.” Field said she’s Patricia Field been keeping busy working on a number of projects for DKNY, such as its ad campaign and fashion presentation. Field also designed the holiday windows for H&M late last year and is currently working on a project for Revlon. Aside from the Patricia Field for The House of Rocawear collection, Roy said an obvious change in the direction of the Rocawear junior collection will be apparent in the upcoming seasons. “We’re starting to revamp the entire junior collection,” said Roy. “It’ll be different. Customers want sexier stuff. They want more fashion-forward items, more than just sweats and denim. They want classy sexy, not video sexy. It’s for girls who aren’t trying too hard. Nothing looks forced or hard to get into.” April magazines will feature Rocawear’s new print advertising campaign, Roc for Life, a 10-page spread shot by Mario Testino and featuring A-listers such as Kevin Bacon, Cam’ron, Karolina Kurkova, Naomi Campbell, Dash and Roy. Currently, there are no specific ads planned for the Patricia Field for The House of Rocawear, though Roy said ASHION PHOTOS BY JOHN AQUINO; PORTRAITS BY TALAYA CENTENO TALAYA BY JOHN AQUINO; PORTRAITS ASHION PHOTOS BY

the decision to do ads for that collection might change. F 6 WWD, FRIDAY, JANUARY 21, 2005 The Beauty Report Dior Pursues Plan For U.S. Tu r na rou nd By Julie Naughton educated [about skin care needs] and she has more money to spend.” NEW YORK — A little more than a year ago, LVMH In fact, a chief goal is to rebuild the brand’s stronghold Moët Hennessy Louis Vuitton executives drew up a in upscale specialty store doors, particularly in Neiman new plan for the conglomerate’s U.S. beauty opera- Marcus, Saks Fifth Avenue and Nordstrom, said Darland. tions, with goals including a reining-in of Dior’s U.S. Dior has just reestablished its skin care and color distribution and leveraging more strongly the connec- cosmetics in Neiman Marcus’ Newport Beach, Calif., tion between Dior’s beauty and fashion businesses. door, and will reopen five additional Neiman’s beauty The intent: to ratchet up the brand’s image in the doors this spring: Las Vegas, Houston, NorthPark eyes of U.S. consumers, and to excise lower-grossing Center in Dallas, King of Prussia, Pa., and Beverly doors from the mix. Hills. These doors are among the first to get a new

A year later, the executives running Dior’s U.S. busi- tester unit, which Darland said will be in all Dior doors GEORGE CHINSEE PHOTOS BY ness, Pamela Baxter and Terry Darland, are reporting by the end of May. “The new tester has a lower profile nearly 19 percent growth across the board for Dior’s beau- with a lot of mirrored surfaces — it’s a little more user- A sampling of Dior’s color grouping for Sephora. ty business — with some segments and retailers nearly friendly and it’s very easy to update,” she said. doubling that figure. Since the customers most willing to make avant- tea extract and vitamins E and C, will hit Dior counters Baxter, who is now president and chief executive of- garde color statements seem to be nationwide in July. The collection consists of 10 sku’s that ficer of the Perfumes and Cosmetics Group, was hired shopping at Sephora, said Darland, are divided into products for oily, normal and dry skin, as away from the Estée Lauder Cos. in Dior decided to create a “January well as a range that is suitable for all skin types. Products December 2003. She had been pres- animation” called the Backstage include Rinse-Off Cleansing Foam and Matifying Toner ident of Lauder’s Specialty Brands Beauty Collection — a compilation for oily skin, each $27; Energizing Toner and Rinse-Off Group. A few months later, Baxter of offbeat color cosmetics. “We Cleansing Gel for normal skin, each $27; Cleansing Milk tapped Darland, another longtime grew 67 percent [in retail sales] in and Soothing Toner for dry skin, each $27, and Cleansing Lauder executive, as senior vice Sephora last year, and we’ll proba- Water, Exfoliating Face Scrub and Duo-Phase Eye president of sales and marketing for bly grow another 50 percent this Makeup Remover, which are $27, $29 and $23, respective- Dior’s U.S. business. year,” said Darland. “Sephora’s ly, and are suitable for all skin types. A 10th sku, Over the last year, the pair have consumer base is predominantly Cleansing Gelee, is $32 and will be available in Sephora slashed Dior’s door count in the U.S. young, fashion-forward customers doors only. Sources estimate that the line could do 15 from 800 beauty (skin care and color who buy edgy, trendy color state- percent of Dior’s total beauty business, estimated at $125 cosmetics) doors to 575, and its fra- ments, which made them the per- million at retail in the U.S. grance door count from 2,000 to 1,450. fect partner for this business.” Products that make the skin appear to be flawless Now, said Baxter, all of the pieces of The line comprises six Dior are also in the wings. the puzzle are in place. “Dior is strong- Addict Ultra-Gloss lip shades, $23 The brand is launching a spray-on foundation called ly positioned for growth in 2005 with all each; six Dior Addict Vernis nail DiorSkin AirFlash Mist Makeup. The formula, said of our retail partners,” she said.“In shades, $17 each, and three Dior Darland, is enriched with light-diffusing pigments and 2004, we spent much time focusing on Show Backstage Mascara shades, has a fine-mist texture that makes blending with fingers brand positioning. Moving forward, a A few Dior spring items. $23 each, in colors ranging from or a brush unnecessary. AirFlash will be available in four strong link to fashion will help to bright, sparkling oranges and yel- shades, each $60, and will be available at Bloomingdale’s, achieve our high expectations for Dior Beauty.” lows to mauves and fuchsias. Saks Fifth Avenue, Nordstrom, Neiman Marcus and Added Darland: “We’re building the business on Dior’s spring launch schedule focuses heavily on Sephora. Darland noted that four additional shades are three prongs. There’s a specialty store prong, a depart- skin care, traditionally a global strength for the brand. under consideration. Sources estimate that it will do at ment store prong and a Sephora prong. While some ini- “Since we’ve gotten here, we’ve found that editing is least $2 million at retail in the U.S. in its first year. tiatives reach across all of these channels, we also want best — building on one or two key drivers for a line, Ultra-Mat Compact Foundation, an antishine pow- to match the Dior brand with the locales where the cus- rather than having huge collections,” said Darland. So der formula, will be available in five shades, each tomer is looking for it. Skin care drives many trends in Baxter and Darland have implemented a few U.S.-only $39.50. Ingredients include ramie cellulose and titani- specialty store doors — that consumer tends to be more features into the program, including more lightly scent- um, both said to absorb oil, and perflourated talc, said ed skin care and a tightly edited assortment to offer long-lasting oil absorption. It will be available of products within each line. in Dior’s full U.S. beauty distribution in April. Dior will launch Capture Sculpt 10, which it For summer, Dior will offer a limited-edition ver- calls a “sculpting skin care” product, in March. sion of J’Adore. The latest twist on the mix of cham- It is based upon the theory that only collagen paca flower, mandarin, orchid, jasmine and blackberry in the shape of a trihelix is springy enough to support the skin, explained Darland. “It provides support which allows cells to link to col- Moving forward, a strong link lagen fibers,” she explained. Key ingredients “ are Astressyl, a white willow extract said to in- to fashion will help to achieve crease skin’s “spring”; madecassoside, an our high expectations for Dior Indian plant that is said to boost collagen synthesis and contraction, and potentilla extract, Beauty. which is said to help in the collagen synthesis ” process. The product will be available in — Pamela Baxter, LVMH cream and fluid formulations, each $80 for 1.7 oz., in Dior’s full U.S. beauty distribution, and notes is an alcohol-free, moisturizing formula. It will be sources estimate that it could do $2 million or available in a 100-ml. size for $45, in Dior’s U.S. depart- more at retail in its first year. ment store distribution in April. “Many customers in the U.S. simply don’t Also for summer: Dior Bronze, a four-sku line that want strongly scented skin care products,” will be on counter in March. Three of the sku’s are self- said Darland. “Sculpt is the first [skin care tanners: one for the face, $26; one for a natural effect for product] not to be heavily fragranced — but the body, $27, and one for a shimmering effect for the when you have a lot of active ingredients, body, $27. A fourth sku is Sweet Sun, a limited-edition, sometimes an unscented version would be off- alcohol-free “mood fragrance” that will retail for $40. putting, so there’s still a bit of scent.” Advertising and promotional efforts for Dior this spring Dior also is repackaging its Capture R60/80 will focus chiefly on fragrance, as is typical of the brand’s skin care line. The first stockkeeping units in past spending in this area. However, noted Darland, the the Capture line launched in 1986, packaged company does plan an advertorial campaign this spring fo- in pink and white bottles. The new silver and cusing on skin care, which will run in the March issue of W white packaging “better speaks to the brand’s (which, like WWD, is a part of Fairchild Publications, high-tech offerings,” said Darland. The new which is owned by Advance Publications Inc.). packaging will hit Saks Fifth Avenue and While Darland wouldn’t comment, Dior is said to be Neiman Marcus doors in March and all other planning two U.S. fragrance launches for fall 2005: one Dior beauty counters a few months later. intended for specialty stores and one intended for de- A new cleansing range, infused with white partment store distribution. WWD, FRIDAY, JANUARY 21, 2005 7

WWW.WWD.COM Clarins’ New Labor of Love NEW YORK — Clarins is counting on the power early 30s to late 40s. “We want to create an emo- of love. tional connection between our customer and the Later this year, the beauty company will put its brand that we know they love so much,” he said. beliefs to the test when it launches a pair of Pieper-Vogt underscored the point by alluding to women’s fragrances — Par Amour and Par Amour “the halo effect the launch will have on the entire Toujours — in tandem. brand and the emotional effect on the field force.” The two fragrances, each offering a different This is not the first women’s fragrances launched formula, will be presented as a mother-daughter by Clarins, but Horowitz sees this project as possess- combination. The plan is not to market the scents ing the most gravitas in terms of “depth of resources literally to mothers and daughters, according to to support it and the development reflected in the Clarins executives, but to illustrate and dramatize presentation and bottle.” the love that binds them. Clarins in the past has launched three other fra- “It can be viewed as an expression of love grances, being with Eau Dynamisante, a 1987 eau through the relationship a mother has with her fraîche; Elysium in 1993, and Eau Tranquility, a re- daughter,” said Eric Horowitz, president of the cently launched scent that is billed as a fragrance Clarins brand in New York. with treatment qualities. “We are committed to being a complete beauty company,” Horowitz said, ticking off the brand’s We are committed to being penetration in the other categories of women’s and a“ complete beauty company. men’s skin care and color cosmetics. “This is the first step toward rounding out the brand.” — Eric Horowitz, Clarins” Added Pieper-Vogt: “This concept is more about Clarins than anything we have done.” Caroline Pieper-Vogt, senior vice president of Clarins does not break out sales or advertising marketing, explained how the print ad is designed to projections. But industry sources estimate that the promote two fragrances, called For Love and For pair of new fragrances could do more than $10 mil- Love Always. The visual shows a woman and child lion in retail sales for the first 12 months in the U.S. beneath a fairy-tale tree. The slogan is “Love — say- alone, driven by an advertising and promotion cam- ing it; love — feeling it; love — sharing it.” The pho- paign of perhaps $3 million to $5 million. Roughly tographer is Claude Guillaumin and the tree was one million samples will be handed out, containing painted by Liliana Guderska. vials of each fragrance per packet. The fragrances, The fragrances will be launched in Europe first. developed by Charabot, offer clear differences. In the U.K., where Mother’s Day falls earlier, the Par Amour, created by perfumer Raphael Haury, debut is slated for March. In France, the fragrances is a floral-woody eau de parfum. Key notes include are due on counter in April. The U.S. is holding its Ottoman rose, pink peppercorn, black currant and fire until August to get a good start on the all-im- sandalwood. The formula hangs together with portant fall-holiday season. The visual that will be Siamese benzoin. Horowitz maintains that skipping Mother’s Day used in the advertising. A 1.7-oz. bottle will retail for $60; a 3.4-oz. version, will allow the company to “concentrate our re- for $82, and a 3.4-oz. refill, for $67. sources in the most productive time.” He added, “We won’t pigeonhole [the launch] Par Amour Toujours, created by Emile Bouge, was designed as a lighter, more in the Mother’s Day period.” youthful scent infused with vitality. It comes as an eau de toilette and is a floral- This is a Clarins brand concept and the fragrances will be merchandised only at the fruity combination. Rose is mixed with pink grapefruit and raspberry, and pink pep- Clarins counter, which in the U.S. encompasses a limited distribution network of 1,000 percorns and black currant buds add accents. Toujours will be available in a 1.7-oz. doors. “It’s an opportunity for us to have more punch at our counter and to tell the Clarins size retailing for $40, and a purse spray, for $30. story,” Horowitz said. “First and foremost, it was developed with our customer in mind.” Both bottles were designed by Federico Restrepo. Horowitz added that the brand’s core group of customers range in age from the — Pete Born Bendel’s Bets on Skin Care Diana Ross: The Art of the Diva NEW YORK — Henri Bendel continues to have its sights set on skin care. LOS ANGELES — “I want to give Donald Trump a run for his money,” Diana Ross teased At its semiannual beauty breakfast yesterday morning — where the re- the throng of media assembled mid-Thursday at the MAC flagship on Robertson tailer presented new brands and launches to some 90 newspaper and Boulevard at a personal appearance for her new gig with the cosmetics line. “You know magazine editors — not a single new color brand was present. [how] he did the art of the deal? “We’re seeing a real explosion in treatment and skin care lines,” said I’m doing the art of the diva.” Claudia Lucas, senior vice president and general merchandise manager Ms. Ross certainly put the cap- of beauty for Henri Bendel. “There’s not much color out there that’s new ital “D” in diva, and over the or of any significance.” years, she has embodied every- This is perfect timing for the retailer, which of late has been focusing thing that is fabulous and notori- on increasing its treatment business, and just recently brought in the ous about the label. The second Estée Lauder Cos.’ Rodan & Fields brand. Lucas noted that skin care now star in the MAC Beauty Icon se- accounts for 15 percent of Henri Bendel’s beauty business. In the past, it ries, Ross arrived with MAC pres- accounted for just 6 percent. ident John Demsey by stretch On the main floor, certain changes were already apparent. The gazebo limo, draped in a chartreuse flo- space, which in the past has operated as a flexible space for mainly fash- ral Versace dress, a matching ion brands, was recently cleared to make room for the Henri Bendel bath faux-fur chub and stilettos. and body line. The 700-square-foot space is now solely dedicated to the When asked about the de- store’s colorful assortment of signature candles, creams and fragrances. signer of her dress, she laugh- Lucas said that, while the space continues to be flexible, the line will re- ingly tossed off: “I don’t know, I main there at least through this spring. just gave John the receipt.” Brands new to Bendel’s included Borba, a line of water designed to de- But she earned it, according liver benefits ranging from antiaging to anticellulite; Dr. Jessica Wu, a to Demsey, having enthusiasti- dermatologist skin care brand that incorporates both Eastern and cally collaborated on every as- Western philosophies, and the new C.O. Bigelow line of skin and body pect of the collection — partic- care, which is owned by the store’s parent company, The Limited Brands,

ularly insisting on the pinks of SARDELLA DONATO PHOTO BY and will launch on Feb. 20. Lucas said that space for Bigelow will be John Demsey and Diana Ross the blushes and lip colors, the made toward the back of the store, near an area that currently houses special-edition pink-chrome cases and pink hair and handle brushes. “There are many, hair accessories. many tricks and tips she taught us,” Demsey said. Asked about her personal beauty icon, “It’s something I’m really excited about,” Lucas said of the Bigelow she responded: “It’s never been a celebrity. It was my mom.” launch. “They’ve really lifted as much out of the history books as they could “I’ve always wanted to do a line of makeup,” Ross continued. So, too, a beauty book, — some of their formulas go back 100 years. It’s a real New York brand.” which she mentioned several times throughout the 20-minute visit. Overall, Lucas felt that editors and vendors alike were pleased with “I’ve had such a wonderful, fabulous career,” she purred. “I have five extraordinary the event. “It’s a way of helping the smaller brands and helping us, as children. I’ve traveled the world, married billionaire men, met very interesting people. I well,” she said. “They grow and get more successful — it’s all a part of think I was destined to be involved with beautiful things like makeup.” how we develop our business and help them develop their business.” — Rose Apodaca — Bryn Kenny 8 WWD, FRIDAY, JANUARY 21, 2005 The Beauty Report Beauty’s Best Show Star Potential NEW YORK — The mass beauty industry is filled to the gills with companies that promise to change the shape of the playing field in 2005. But just a handful actually have what it takes to stand out in an overcrowded arena. Here, three companies that look to shine in 2005, each with its own star power. By Andrea Nagel

COMPANY NAME: SEMPRE/HCD COMPANY: CCA INDUSTRIES INC. HEADQUARTERS: Southport, Conn. HEADQUARTERS: East Rutherford, N.J. APPROXIMATE 2004 SALES: Approaching $1 million SALES: $48.1 million (for first nine months of 2004) WHY IT’S HOT: Sempre/HCD stands to be an attractive PRODUCT CATEGORIES: Depilatories; Oral, Skin and Sun Care acquisition candidate to hair color’s big boys as it looks to WHY IT’S HOT: Denise Austin skin care line looks to tap middle-America consumer and put CCA shake up the category with machines that dispense on the skin care map. Also, the company’s stock price has doubled in the past 12 months. customized hair color with the help of a beauty consultant. Sometimes all it takes it the right celebrity endorsement to make a new product launch initially In less than a year, successful. Its longevity, however, will depend on whether the product does what marketers say it Sempre/HCD has will. CCA’s Denise Austin Skin Fit for Life skin care line, which ships to stores this month, seems penetrated the thick to have the celebrity part nailed down — Austin has sold more than 20 million of her at-home walls that surround exercise videos. The technology part — and the product’s success — relies on green tea many retail buyers’ formulations acquired from the College of Medicine at the University of Georgia, one that aims to offices. The result is hair combat skin aging and sun damage. color machines in Green tea is known for its antioxidant properties, which is generally most effective if ingested. drugstores such as Getting these properties to do the same thing in topical form is “relatively difficult,” said David Edell, Walgreens, Brooks, Jean CCA’s chief executive officer. The six-item line ships to stores in March; print, TV and radio ads An item from the new Coutu and Longs, each featuring the 47-year-old Austin break then, too. Edell would not comment on sales expectations for Denise Austin skin of which offer up to the Austin line but industry sources expect it could generate at least $10 million in first-year sales. care line. 1,000 different custom Edell believes the company’s skills to develop new niche products “allows us to compete against color formulations in P&G and Colgate [Palmolive].” That’s why CCA recently revamped its Wash ‘n Curl brand, a shampoo sold at Wal-Mart and just several square feet Walgreen that targets women with thin hair that doesn’t curl or wave easily. Wash ‘n Curl retails for between $4 and $5. of space. Neil Friedman, What also keeps the company successful is its ability to develop brands from within. “We have tried to look for a partner in the acquisitions, but unfortunately there are a lot of buyers out there and we won’t pay one and a half to two times [sales investment company for them,]” Edell said. The strategy must be working. CCA’s stock has nearly doubled in the past year, closing at $13 that acquired the North at the end of trading Thursday, near its 52-week high of $13.45. American licensing rights for the German- created machine in 2002, said the unit A hair color machine in Longs COMPANY NAME: THE VILLAGE COMPANY competes head-to-head Drug Stores. HEADQUARTERS: Chaska, Minn. with the category’s SALES: $25 million to $40 million, estimated leading hair color companies, L’Oréal and Procter & PRODUCT CATEGORIES: Bath, skin and hair care Gamble. In some stores, the Sempre/HCD machine WHY IT’S HOT: With its first acquisition since the company’s inception in 1994, TVC is now in the hair care arena. represents 35 percent of overall hair color sales, Friedman said. And at $14.99 for each box of hair color, Sempre’s The Village Company, formerly Minnetonka Brands, is known as the mass retailer’s secret weapon for competing margins are nearly three times the norm. against the likes of deep discounters: For 11 years, TVC has centered its business on offering value bath and body At one Jean Coutu store in Canada, Friedman said, 90 brands, such as Village Naturals, to better compete with dollar store low-priced offerings. Now, the privately owned boxes had been sold in less than a month, despite hair company has yet another item for value-hungry consumers. color sales’ downward trend. Sales of hair color products Entering stores is Hair Therapy, a brand TVC acquired late last year from Masstige Brands, formerly Progressive slid 5 percent in 2004, according to Information Beauty Brands. The “fix-my-problem” hair care brand sells for between Resources Inc. $3.99 and $4.99 and includes products such as Ice Blue Detoxifying Looking ahead, will L’Oréal and P&G sit back while a Shampoo and Conditioner and Moisture Recovery Shampoo and technological newcomer steals customers and trumps Conditioner. Mike Piff, executive vice president of worldwide sales for profits? Not likely. While Friedman declined to discuss any TVC, is working to expand Hair Therapy’s store presence. acquisition offers he may have received, it can be expected And 2005 may likely bring even more business, thanks to a name change that this year, one leading hair color company will buy the as of Dec. 1. The change stems from confusion — even in the industry — of competition and then pare down its on-shelf offerings. what TVC sold. “Everyone thought we made the Minnetonka brand of Finally, the winning company could brand Sempre with an moccasins,” Piff said. Indeed, TVC was the natural choice since products had established bestseller. been branded with “The Village Company” on packages for two years. As Friedman said: “This machine provides the retailer According to Piff, TVC employs about 15 people, has no plans to go with the ability to reduce inventory, yet provide the public and will spend 2005 looking for future acquisitions. customer with a greater selection than is available in stores TVC is also launching Village Naturals 3-in-1 products, meant to be PHOTO BY JOHN AQUINO PHOTO BY today.” If growth of in-store presence goes as planned, The Village Company’s latest: 3-in-1 body used as a body wash, a shampoo and a bubble bath, which retail for Sempre sales could reach $10 million by yearend. wash, shampoo and bubble bath. $2.99 to $3.99. Kunisch, Wolfer Retire as Beiersdorf’s Leading Executives By Jennifer Weil bought Allianz’s 40 percent stake in the firm. This move secured Beiersdorf ’s independence from would-be suitors such as Procter & Gamble. PARIS — There’s a new generation of leadership at Beiersdorf as Rolf Beiersdorf expects to propose that Kunisch be elected to the company’s Kunisch and Uwe Wolfer are set to retire. supervisory board at its annual general meeting, it said in the statement. Beiersdorf announced Thursday that Thomas-Bernd Quaas, 52, board Wolfer, who has worked at Beiersdorf since 1987, has been lauded for member of Beiersdorf ’s supply chain business, is to replace chief execu- having achieved a leading position for the company’s major brands. Its tive officer Kunisch, 63, on May 18. Pietr Nota, 40, a marketing manager at cash cow, Nivea, for instance, posted sales that nearly quintupled Unilever, will take over the brand, marketing and sales post held by Wolfer, between 1990 and 2002 — when they grew from 545 million euros, or 61, on May 1. Wolfer is also a member of Beiersdorf's executive board. $706.5 million at current exchange, to 2.6 billion euros, or $3.4 billion. “Rolf Kunisch and Uwe Wolfer significantly shaped the success of His retirement confirms an earlier report in these pages. Beiersdorf in the last decade,” the company said in a statement. In other company news, Markus Pinger, general manager of Indeed, Kunisch has been credited with leading Beiersdorf during Beiersdorf Nordics, will take over supply chain responsibilities April 1. a period of considerable international growth. He also succeeded in As reported, the Beiersdorf Group achieved a 5.5 percent increase keeping the company independent through some years of takeover in 2004 operating income and a 2.5 percent sales gain last year, accord- turmoil and a shaky shareholder structure. ing to preliminary figures. Earnings before interest and taxes reached Two years ago, Kunisch was asked to put off his scheduled retirement 480 million euros, or $596.9 million at average exchange. Profits after until now. That request came when Beiersdorf needed stability, right after a taxes neared 300 million euros, or $373.1 million, a decline of about 1 consortium led by Tchibo — then a minority Beiersdorf shareholder — Rolf Kunisch percent year-on-year. WWD, FRIDAY, JANUARY 21, 2005 9

WWW.WWD.COM New Products and Hopes for ’05

NEW YORK — Mass market retailers hope to start 2005 off with products that will eliminate any need for consumers to shop anywhere else. They are asking manufacturers for items that not only duplicate those found in department stores, but also for pampering products once only available in spas or salons. “The mass market is looking for opportunities in the market to fill consumer needs,” said Dan Zarazan, vice president of sales and marketing of Naterra, which markets the Tree Hut brand. A survey of retailers and manufacturers identified the following products and categories as ones to watch this year. Upscale Skin Care: Mass market retailers have proven they can sell everything from microdermabra- sion to cosmeceuticals. Buyers are excited about the next step — ReNoviste, a glycolic peel kit from L’Oréal Paris. “I think the timing is right,” said a buyer Tree Hut body creams by Naterra. for a top drug chain. Like L’Oréal Critical Mass Paris ReFinish Micro-Derma- By Faye Brookman brasion Kit, ReNoviste offers mass turing character Raven Symone. and Age Correct Hand Lift Firming Serum. marketers an avenue to sell skin The show is one of the most popu- Loose Lips: Buyers are expressing concern over the care at price points approaching the $30 mark. lar with the tween age group. Also this year, sales slide in the once robust lip category. The cat- Spa-inspired items are also flooding the shelves. MZB Personal Care will give Barbie toiletries a egory is being closely watched for signs of life, ac- Based on the success of its body creams, such as Shea revamp. There will be a high-performance hair cording to one buyer from a major discounter. “So Butter and Nut Butter, Naterra is expanding into dry care line aimed at a slightly older user than ex- much for the idea women can always afford a new oil mists. Naterra sold off its Time Block and Skin Milk isting Barbie toiletries. Wal-Mart is the first to lipstick even if they don’t buy a new dress,” she lines last year to Helen of Troy to concentrate on filling sell the line. said. According to Information Resources Inc., lip- in niche segments of the market. Faking Glows: The success of Sally Hansen’s stick sales fell 11 percent to $388.9 million for the According to Zarazan, the dry mists are an example Airbrush Legs has spawned Sally Hansen 52-week period ended Dec. 26, 2004. There were a of a category that hasn’t been available at mass until Airbrush Sun. The formula is designed to work few promising product launches such as L’Oréal now. “We did research and found consumers like the with the skin’s own natural amino acids. There Volume Perfect and Maybelline Forever Metallics. dry oil mist because they are easy to use and grease- is a version for face and one for body. The tan However, some of the transfer-proof brands that less,” said Zarazan. The dry oil mists are available in is buildable and can be applied every few days had added lift to sales have started sagging. Cover flavors such as Sesame and Mango. to darken the glow. Girl’s Outlast took a 25 percent dive, while Fragrances Redux?: In March, Coty will launch Deluxe Ethnic: Retailers have said Black Maybelline’s Wet Shine declined 32 percent. Stetson Black, which retailers think will benefit from Radiance’s new Perfect Tone Loose Powder is Cross Promotions: Wal-Mart’s link with All the strong Stetson brand name and a big marketing similar to a loose powder by Chanel. The pow- My Children and the Enchantment fragrance budget. Retailers are also rubbing their hands together der provides a sheer to natural matte finish was just the beginning. Retailers said manufac- in glee over the mass availability of Curious Britney that is designed to even out skin tone. The sug- turers are looking for unique cross-marketing Spears, hoping it will do for them what it did for de- gested retail is $4.99. opportunities such as Bonne Bell’s deal with partment stores. “Love her or hate her, she has wide Nail Care: With nail polish sales still flat, retail- Reebok. Girls who buy new Reebok sneakers get appeal to our shoppers,” said one top retail buyer. ers are looking to devote more space to treatment a customized Lip Smacker as a gift. Licensing: Retailers found consumers are willing to products similar to those sold in salons. Sally The beauty care category at mass could use shell out a few extra bucks for products bearing li- Hansen is adding Diamond Strength Diamond some excitement. Overall sales are flat versus censed figures, such as SpongeBob SquarePants, Shine and Diamond Strength Cuticle and Nail Oil last year and consumers are being enticed by Strawberry Shortcake and Hello Kitty. This year to its growing treatment lineup. Also, the compa- values at dollar stores. Industry analyst Allan Townley Inc. has grabbed a major name, “That’s So ny is segmenting mature users with a new Age Airbrush Sun by Mottus warned, “The time is now for mass re- Raven,” a television show on the Disney Channel fea- Correct Dry + Brittle Anti-Aging Nail Treatment Sally Hansen. tailers to do something to get shoppers back.” Deborah Fine’s Blueprint for Limited Brands Position NEW YORK — Meet the new chief executive of Pink, Deborah Fine. Mark, peddled by an army of young Mark representatives, gen- After building Avon’s 18-month-old Mark brand into a multimillion erated $17 million in net sales in 2003. During a meeting with in- dollar business, Fine will leave her post as president of Avon Future vestors held Dec. 8, Avon said it anticipated 2004 net sales of $45 on March 1 to join Limited Brands as chief executive officer of Pink. million. The brand, which consists of 400 stockkeeping units, is In this newly created role, Fine will be charged with expanding scheduled to begin a global rollout by year’s end. Pink — Victoria’s Secret’s subbrand of sleepwear and loungewear Prior to Avon, Fine spent 23 years in the magazine industry, — into a lifestyle brand for young women. holding various executive positions at Condé Nast Publications We needed to bring in someone who understands the Pink consumer. “ — Spokesman, Limited” Brands

Pink was introduced in spring 2001 as a fragrance with a “fun, Inc. (which, like WWD, is owned by Advance Publications Inc.) flirty” positioning. Victoria’s Secret then began test-marketing Pink as the vice president and publisher of Glamour magazine and lingerie, rolling it out to top-tier stores during the 2003 holiday sea- publisher of Bride’s magazine. son. The Pink assortment is found in 1,000 Victoria’s Secret stores. Fine described her decision to leave Avon as “bittersweet.” “We realized over the last year that based on customer response “It has been the most extraordinary privilege to work with to Pink sleepwear and loungewear, there is a lot of untapped po- Andrea Jung,” said Fine. She jokingly referred to herself — as tential to broaden the assortment,” said a Limited Brands she often does — as the mother of Mark, and Jung — chairman spokesman. “We needed to bring in someone who understands the and chief executive officer of Avon Products Inc. — as the Pink consumer — women 18 to 22 years old.” grandmother of the teen-targeted brand. While the firm would not comment on future Pink categories, the While Avon has not named Fine’s replacement, an Avon brand’s scent heritage and Fine’s beauty background would make for spokesman noted, “the entire entrepreneurial team that a natural extension into the bath and body and cosmetics categories. helped create and launch Mark will continue to fill their roles Fine joined Avon in 2001 to lead the company’s efforts to in building the brand.” Deborah Fine court a younger demographic. — Molly Prior

12 WWD, FRIDAY, JANUARY 21, 2005

The HBA Report WWW.WWD.COM Clairol Trio Gets Makeover NEW YORK — Clairol wants to touch up fading category sales by taking the risk out shine. The new Hydrience product will sell for a suggested retail price of $7.99. of at-home hair color. The Procter & Gamble division, which spent the last two Herbal Essences, now billed as Bold ’n Brilliant Color, will come out with its new years focusing squarely on color through its multimillion-dollar ad campaign, makeover in March. The formula has been tweaked to include pure color extracts. “Colorwonderful,” is now broadening its message to emphasize hair health. Shade selections have been updated to 21 new bold hues, including eight blonding Nearly 60 percent of women color their hair, and nearly half of them would dye and highlighting options. Packaging, accented with a hologram logo, seeks to ease their tresses more often if they weren’t concerned about concerns about damage with phrases such as “permanent damage, according to P&G research. Of those who steer New Hydrience hair color that won’t trash your hair!” clear of color, 30 percent cite damage as their primary color with Pantene Clairol also has added a six-week supply of condition- reason for abstaining. conditioner. ing treatment, called Continuous Conditioning Gloss, to “If we can take the risk out of at-home hair color, we the box; it is designed to impart 42 percent more shine. can grow the category,” said Charlene Sawyers, director of Sawyers explained the levels of conditioners in the after- marketing, North America, for Clairol Retail Haircolor. In color treatments are calibrated for each hair color. The the mass channel, hair color sales slid 5 percent in 2004 to revamped Herbal Essences hair color will sell for a sug- $1 billion, according to Information Resources Inc. gested retail price of $9.99. In an attempt to bolster sales, Clairol has revisited Advertising for the launches breaks in late March three brands in its portfolio — including Nice ’n Easy, and includes print and TV efforts as well as ads on the Hydrience and Herbal Essences — updating each to ap- Internet and direct marketing. Sawyers said Clairol will peal to women’s universal desire for healthy, shiny locks offer more point-of-sale promotions over the next year (without gray strands). Guiding each of these changes, ex- to 18 months. plained Sawyers, is the underlying theme of “color confi- Industry sources forecast these changes will pad dence,” an internal phrase used by the Clairol team. In Clairol’s brand sales by $35 million this year. For the 52- the company’s view, the more confidence consumers have week period ended Dec. 26, Clairol brand sales totaled

with at-home hair color, the more they will experiment, GEORGE CHINSEE PHOTOS BY $318 million, according to IRI. fueling demand for Clairol products. The brand updates follow last year’s revamp of Beginning this March, Nice ’n Easy boxes will include Clairol Natural Instincts, the first makeover since the ColorSeal Gloss, a weekly treatment said to retain 20 per- brand carved out the semipermanent category in 1994. cent more color over a six-week period. The silicone- Natural Instincts expanded its shade selection, empha- based conditioner borrows “long-lasting color technology” sized its “less risk, more reward” positioning and tossed — a resin that attaches to the hair fiber — from Max an after-color conditioning treatment into the box. The Factor’s Lipfinity. Nice ’n Easy will remain at its current changes succeeded in reversing a sales decline and fu- price point of $6.99. eled double-digit growth. For the 52-week period ended For consumers plagued by gray roots, Clairol is intro- Dec. 26, Natural Instincts sales rose 10 percent to $68.5 ducing Nice ’n Easy Root Touch-Up. The kit, which is de- million, excluding Wal-Mart, while the brand had designed to cover roots in 10 minutes no matter which brand Clairol’s new products for 2005. clined 4 percent in 2003, according to IRI. Factoring in of color you use, could potentially bring salon goers to the Wal-Mart, industry sources estimate that over the last hair color aisle of chain drugstores. Root Touch-Up will make its debut in March for three-month period, dollar share has increased 15 percent on unit sales growth of a suggested retail price of $6.99. 18 percent over the same period last year. P&G has ramped up its cobranding efforts across its beauty and personal care This year’s expanded effort intends to jump-start the beleaguered hair color cat- brand portfolio, as evidenced by the recent introduction of Secret Platinum & Olay egory. The Baby Boomers who propelled category sales throughout the Nineties Conditioners, a deodorant featuring skin care technology. The influx of cobranded have become disenchanted with the lack of newness in the category, noted Sawyers. products will soon extend to the hair care category. This spring, Clairol will roll out Under the leadership of A.G. Lafley, chief executive officer of P&G, the company Hydrience hair color with Pantene IntensivMoisture After-Color Therapy, a six- has ramped up innovation across its beauty brands to ignite sales. week supply of conditioner designed to moisturize newly colored hair to enhance — By Molly Prior

A look at the interior CityLife’s Modern Twist on the Barber Shop of CityLife Barbers. NEW YORK — Barber shops are a dime a dozen in “Being a barber shop customer for years,” Chelsea. Just about every corner has one, each a Niskanen said, “you end up going to the same old throwback to a simpler time when linoleum floors, place. We just wanted to open a nice new place offer- fluorescent lighting and neighborhood dogs were the ing old-fashioned services in modern surroundings.” chief characteristics of America’s gather- Although some of CityLife’s more tra- ing place for gentlemen. But times have ditional services include a 30-minute changed. And for Chelsea’s new CityLife shave and a shoeshine, more modern ele- Barbers, change is a good thing. ments include a surround-sound enter- According to vice president David tainment system topped off by a plasma- Niskanen, CityLife was designed with screen TV. “Customers can request a both types of barber shop customers in movie and we play all kinds of music,” mind: those who are in a hurry and those said Niskanen. who aren’t. While a basic haircut goes for $20, the “Being in New York, it just fits perfect- “old-fashioned razor shave,” a 25- to 30-

ly,” Niskanen, a Bronx native — who also minute service, is priced at $25. The treat- SD MODIANO BARBER SHOP PHOTOS BY is a New York Police Department patrolman — said of ment begins with pre-shave oil, then a hot towel. After shop’s six chairs and custom oak cutting stations. the CityLife moniker. “When you think of city life, you an application of Kiehl’s Since 1851 Close Shavers CityLife’s customer base is mixed, Niskanen noted, think of people in a rush and on the go.” Squadron Ultimate Brushless Shave Cream comes and includes kids, seniors and businessmen. And, But CityLife, which is located on Ninth Avenue the shave, which is followed by a cold towel. A bit of while “a couple of little girls” come in, “the focus is near 22nd Street, doesn’t just offer quick cuts; the Lucky Tiger aftershave toner, then Lucky Tiger facial on men. It’s 99.9 percent guys,” he said. After a hair- 800-square-foot space is also a place for those who moisturizer tops things off. cut or shave, patrons can spritz themselves with any want a relaxing respite from the daily grind. “We try to focus on the old-fashioned shave as a number of upscale fragrances, including Jean Paul CityLife special,” said Niskanen. Gaultier’s Le Male, Burberry Brit, Calvin Klein’s Judging by the pace of business so far, CityLife Eternity for Men and CK One. could generate first-year sales of $250,000. While CityLife’s retail area now consists of a Niskanen partnered on the CityLife venture, which counter displaying two brands — Lucky Tiger shaving opened in August, with his girlfriend, Autumn Hawk, products and gels and Clubman aftershave and hair an aspiring singer, and Edwin Madera, a professional care items — Niskanen is considering “bringing other barber for 15 years. Niskanen was a customer at brands in down the road.” Madera’s Bronx barbershop before the two decided to For now, though, as the hustle and bustle of the go into business together. Madera, a native of Puerto urban world continues on Ninth Avenue, inside Rico, sold his barbershop last July. CityLife’s glass doors “you can relax — get a hot Edwin Hawk, a Massachusetts native who also works on towel, a shave and a break from a crazy New York Madera occasion as a freelance makeup artist for MAC day,” said Niskanen. “You can catch a movie, get a and Cesar Cosmetics, designed CityLife’s modern, burgundy in- shoeshine and relax for 45 minutes.” Gutierrez terior, while Madera oversaw the assembly of the — Matthew W. Evans WWD, FRIDAY, JANUARY 21, 2005 13 WWW.WWD.COM Paris Preview

CARTOON CAPERS Hayao Miyazaki’s Japanese filmmaker “Nausicaa.” Hayao Miyazaki (famous for “Princess Mononoke”) is the subject of an exhibition at the Musée de la Monnaie at 11 Quai Conti on the Left Bank. It juxtaposes original Miyazaki drawings with those of French cult Scene author Jean Giraud, better Eat, drink and enjoy — things to check out in Paris. known as Moebius. Both infuse their work with the — Robert Murphy, Chantal Goupil, Laurent Folcher, Emilie Marsh and Brid Costello same surrealistic and dreamy view of a world inhabited with strange creatures and futuristic A room HOME FRONT flying machines. at the Paris’ newest boutique hotels are gunning for a homey Esprit atmosphere — but also with strong neighborhood favor. In the hip Marais area, the four-star Hôtel du Petit-Moulin, designed Hôtel. by Christian Lacroix, features 17 apartment-like rooms, priced from 180 to 350 euros ($235 to $455 at current exchange). The Daniel FACE VALUE The 31-room Hôtel Esprit, in the heart of Saint-Germain, offers Hôtel’s lobby. Chanel recently unveiled a beauty a 24-hour open bar in the lobby (included in the room price), a treatment space in the Galeries hammam and a contemporary decor accented with 18th-century Lafayette’s Boulevard Haussmann details. Rooms run from 260 euros ($338) to 785 euros flagship. Located in the store’s ($1,022) for a suite with rooftop views. Meanwhile, the new 30- lingerie department, the 540-square- room Hôtel Daniel off the Champs-Elysées features 26 rooms foot cocoon-shaped space hosts two and a family atmosphere, albeit a well-traveled one. While the treatment rooms and and offers three rooms are decorated with exotic objects from all over the world, facials, which promise to make even the four-star inn mixes a baroque boudoir atmosphere for the the most fatigued look fabulous. lounge and a Chinese garden feeling in the bar-restaurant. Specific treatments, which enhance Prices range from 320 euros to 690 euros ($415-$900). either the complexion or moisture Hôtel Esprit Saint-Germain, 22 Rue Saint-Sulpice, levels, last one hour and are priced at Tel: 331-53-10-55-55. 90 euros ($117). A more global Hôtel Daniel, 8 Rue Frederic Bastiat, Tel: 331-42-56-17-00. treatment lasts 90 minutes and costs Hôtel du Petit-Moulin, 29-31 Rue de Poitou, Tel: 331-42-74-10-10. 110 euros ($143).

ARTS MAJOR Oysters do it for SHELL-SHOCKED Ring by Céline Rivet. Juxtaposing Henri Cartier-Bresson’s Gérard Depardieu. Gérard Depardieu and his long- photographs and Alberto Giacometti’s time companion, actress Carole sculptures has made for an intriguing Bouquet, have opened a second exhibition exploring the relationships restaurant — L'Ecaille de la between the two artists’ work, at the Fontaine — across the street Cartier-Bresson foundation, through from their first one, the March 27. Stage director Robert Wilson, Fontaine Gaillon. The new meanwhile, is showing drawings inspired site’s devotion is shellfish, by La Fontaine’s Fables at the Yves Saint particularly oysters. Depardieu Laurent and Pierre Bergé Foundation, often hauls in boxes of through July 24. And Pierre Passebon crustaceans fresh from will feature Irina Ionesco’s stirring Brittany, and he selects all the photographs of her daughter, Eva, in an wines. There’s delicious warm exhibition opening Jan. 27. Meanwhile, goat cheese seasoned with a Emanuel Perrotin, the contemporary art spicy olive oil and fresh fruit dealer, is celebrating his new space — tarts to finish. And the a sumptuous 17th-century town house modernistic decor, by Bouquet, in the Marais — with a group show, is cool and comfortable. including work by Takashi Murakami L’Ecaille de la Fontaine, 15 Rue STEPHANE FEUGERE PHOTO BY

and Maurizio Cattelan. STEPHANE FEUGERE PHOTO BY Gaillon, Tel.: 33-1-47-42-02-99. LORD OF THE RING Céline Rivet’s high-end jewelry aims to casts a spell over all who enter her dim new temple-like shop at 3 Rue du Marché Saint Honoré. The shop’s brown velvet walls, MOVEABLE FEAST UNZIPPED snakeskin paneling and dim lighting offset brooches, Jean Pierre Vigato just moved his two-star restaurant Apicius to a Richard Rene — pendants, earrings and rings that slowly orbit in glass spectacular hôtel particulier that today houses Luc Besson’s production honored at the Hyères showcases. “Every stone tells a tale,” said Rivet, whose headquarters. No wonder it’s already a show-biz meeting point. If you fashion festival last one-of-a-kind designs include precious and semiprecious don’t have the time or budget for a sumptuous meal, have a drink at the year and sponsored stones such as rubies, emeralds, aquamarines and opals. terrific bar. Star chef Hiroyuki Hiramatsu also moved his pots and pans by Nordstrom Prices range from 1,200 euros ($1,560) up to 11,000 from his handkerchief-sized, 18-seat outpost on Ile Saint Louis to larger to produce his winning euros ($14,300) for special orders. digs in the 16th arrondissement. collection exclusively But he kept the intimate this spring — is atmosphere and seasonal menu. testing wider waters Meanwhile, nighthawks might try with the ready-to-wear Music Hall, which serves Thai-style collection he presents COUTURE CABLE tuna rolls, sautéed sea scallops and Jan. 26 during couture Amid thinning couture ranks, the governing Chambre yummy desserts until 6 a.m. — a week. “I’m a maniac Syndicale relaxed strict rules for the couture appellation rarity in Paris. A late dinner amid when it comes to and inducted Franck Sorbier and Adeline Andre into changing colored lights runs around details,” said Rene, fashion’s most exclusive club. Meanwhile, Swiss jeweler 120 euros ($156) with wine. 33, who cut his teeth Chopard will sponsor a raft of young designers, who are Apicius, 20 Rue d’Artois, at Jean Paul Gaultier again flocking to the less-crowded couture season in Tel.: 331-43-80-19-66. and Hermès. He search of more media attention. They include Felipe Music Hall, 63 Avenue Franklin describes his style as Oliveira Baptista, Laurent Mercier and Richard Rene, whom Roosevelt, “sophisticated” but Chopard will aide by offering a space — and high-end Tel.: 331-45-61-03-63. “easy to wear. My jewelry pieces — to show in the Intercontinental Hotel.

Hiramatsu, 52 Rue de Longchamp, STEPHANE FEUGERE PHOTO BY clothes don’t drown a For its part, Bulgari, the Italian jewelry house, will lend A view of Apicius restaurant.

PHOTO BY STEPHANE FEUGÈRE Tel.: 331-56-81-08-80. A look by Richard Rene. woman’s personality.” some of its bling to Stephane Saunier. 14 WWD, FRIDAY, JANUARY 21, 2005 Federated-May Courtship

Continued from page one Bloomingdale’s in the Mall at Millenia in Orlando, Fla. between $33.33 and $36.45, while the gain moved shares of May closer to its 52-week high of $36.48. Federated’s shares closed at $55.31, down 3.1 percent. Trading volume on May was 18 million, well above the three-month average of 2.4 million. Analysts and observers agreed there is no guarantee an agreement will be reached — especially given a price tag for May estimated at up to $17 billion, including debt. A deal would further the consolidation of the U.S. retail sector seen in the Kmart agreement to buy Sears, and in the continued growth of mass behemoths Wal-Mart Stores and Target Stores. A combination of Federated and May would create a $30 billion retailer with 1,000 department stores nationwide. Massive layoffs would likely result as Federated would consolidate headquarters, back office and buying operations. It also would likely result in the further dis- appearance of retail nameplates given Federated’s stated aim of focusing its operations on the Bloomingdale’s and Macy’s flags. Reaction was divided as analysts and investors weighed the impact of Federated buying May, which was first reported in The Wall Street Journal Thursday. Meanwhile, sources in the banking industry said Federated was shopping around its credit card business, valued at $3.1 billion, while executive search firm Spencer Stuart has been retained to troll for May’s next chief executive. “Federated has been embarked on a very construc- tive and effective growth-from-within strategy and it’s worked. Certainly there are risks involved in sustaining that growth by taking on a huge acquisitions project,” said Arnold Aronson, managing director of retail strategies, Kurt Salmon Associates. “There is a risk reward sit- “will still occur,” Cohen predicted in her research note. uation here that has to be carefully measured.” Sources Thursday said Federated and May have been One analyst on the buy side for institutional investors, By the Numbers in merger talks on three different occasions, in the late who requested anonymity because of company policy, Eighties when May was run by David Farrell, in the mid- was more bullish on the deal. Federated May Nineties and again about two years ago. On Sunday and “This deal makes a lot of sense,” he said. “They’ll be a Wednesday this week, Terry Lundgren, Federated’s ton of work to transform the May stores into Macy’s stores, chairman, president and ceo, declined to comment on but a combined unit can streamline so much selling, gen- Revenue: $15.61 billion $13.9 billion the May-Federated rumor, as reported. eral and administrative expenses. Of course, that will Profit Margin: 4.54% 4.39% Sources said there are several compelling reasons for result in a lot of jobs lost. I’m predicting that either May Operating Margin: 8.93% 6.96% the takeover, but they also have plenty of reservations will get a new ceo in a few weeks or the deal will get done. about it. One thing they all advise is for Federated not to Either way, something will happen in the next few weeks.” Free Cash Flow: $830 million $997 million be hasty, mainly because the retailer has been on a suc- Federated and May declined comment. Total Cash*: $212 million $94 million cessful course, and an acquisition of this size could veer If Federated bought May, the retailer would have a Federated off course. dizzying number of options, including: Total Debt*: $3.88 billion $6.86 billion One Wall Street source said, “The merger doesn’t ● Dismantling May’s St. Louis headquarters, which Enterprise Value: $13.33 billion $15.92 billion make sense. It’s highly dilutive to the Federated share- would mean hundreds of layoffs and millions of dollars holders, creates a huge amount of debt and undoes all in cost-savings. SOURCE: EDGAR, YAHOO FINANCE, COMPANY REPORTS FOR THE TRAILING 12 MONTHS the things that Terry [Lundgren] has been trying to do in ● Pulling down May’s regional nameplates that have *FIGURES ARE FOR MOST RECENT QUARTER terms of consolidation. He’s worked for three years to become tired and less relevant to consumers over the have two nametags [Macy’s and Bloomingdale’s] from years, such as The Jones Store, L.S. Ayres, Famous-Barr, which Federated is about to receive all the benefits with Kauffman and Meir & Frank, and selling off dozens of Taking Stock huge increases of profitability. May will definitely dis- locations to other department stores and discounters. tract him, and whether or not the Street will understand ● Selling off May’s credit card operation and its Federated May this, is a big question.” bridal specialty businesses. However, the merger would produce the second- ● Flowing private labels INC, Charter Club, Alfani largest department store operation in the country, sur- and other Federated brands into May locations. May 52-Week High: $59.40 $36.48 passing J.C. Penney, but still below Sears. That means stores have well under half the private label penetra- 52-Week Low: $42.80 $23.04 greater buying clout — a prospect that had some vendors tion of Federated stores. Federated also could use the quaking on Thursday — and a multitude of cost-saving Marshall Field’s name for private labels. Only 7 percent SOURCE: YAHOO FINANCE opportunities, including wiping out corporate adminis- of the merchandise at Field’s bears the Field’s label. trative and buying offices in St. Louis and divisional In addition, Federated would be confronted with dif- and set up mini showrooms. headquarters around the country. Secondly, Federated ficult decisions regarding May’s most recognized store Regarding the sale of Federated’s credit card busi- gets instant entry into Texas, where it has no stores, and brands — Marshall Field’s and Lord & Taylor. In the case ness, investment bankers pointed to General Electric the Chicago market, where only a handful of of Field’s, Federated already bid for it last summer, but Consumer Card Co., Citibank and HSBC as the leading Bloomingdale’s stores operate. May took it for a $3.24 billion price tag. While it’s a cov- contenders to scoop it up. Federated’s credit card port- It’s noteworthy that Lundgren has been showered eted nameplate, there’s no doubt that Federated would folio is valued at $3.1 billion, and is partly owned by the with kudos for elevating Federated’s sales and merchan- consider the potential for having Macy’s situated on retailer and GE Consumer. dising, and the look of the stores. But it’s also said that State Street in Chicago, site of the Field’s flagship, Retail analysts Dana Cohen at Banc of America Lundgren desires to make his mark on the industry and among other important Midwest sites. One former Securities and Stacy Turnof of Merrill Lynch both noted change the retail landscape, much like the retail execu- Federated official said that would be the plan. in research reports Thursday that, should a merger or tives under whom he mentored, such as Allen Questrom, Another key decision would be whether to operate sale take place, May’s credit card business also will like- former ceo of Penney’s and of Federated. stores that are more moderate in price than either Macy’s ly be sold. “He’s adventurous, but he’s not extreme,” said one and/or Bloomingdale’s. Federated previously had a three- Analysts and bankers said a sale of May, if it were to go market source who knows Lundgren. tier pricing strategy, but folded its Stern’s moderate chain. through, would fetch a purchase price of at least one times Lundgren and the Federated team already have lived The two corporate cultures are also very different. sales, or $15 billion, and possibly as high as $17 billion. through several consolidations, including merging May is more centralized with a buying matrix, while That price tag would beat the $11 billion merger of Sears Macy’s and Broadway in the Nineties, but the market Federated operates more regionally, with only its home and Kmart, announced two months ago. A $17 billion deal, source said it would be prudent for Federated to wait and private label businesses, representing roughly 25 Banc of America’s Cohen wrote in her report, includes the and see if another interested May buyer emerged. This percent of its total business, conducted centrally. May is purchase of 311 million May shares at $36 a share, along type of player, such as a private equity firm, could sell off also more price promotional, and operates its buying with the assumption of $6.2 billion in debt. And should a pieces of May that would interest Federated. office out of St. Louis, where vendors met May buyers merger not take place, the sale of the credit card business Industry management consultant Emmanuel WWD, FRIDAY, JANUARY 21, 2005 15 WWW.WWD.COM

RECENT INITIATIVES

FEDERATED: ■ Planned conversion of all non-Bloomingdale’s regional department store nameplates to the Macy’s nameplate, effective March 6, to allow expense management and lever- Stirs Wall Street age the Macy’s name via national advertising. ■ Launched new Macy’s Home Store organization in early February 2004 to accelerate sales and differentiate product Weintraub echoed a prediction on time frame for a deal: In contrast, Federated operates 435 mall-based stores in its in its home furnishings unit. Macy’s Bridal Club, a wedding “Either May’s board will decide that its vision is to sell, 459 total unit count. There are 101 malls with both a May registry program, launched in June 2004. or that its vision for May entails the hiring of a chief and a Federated store, and 68 of those are owned by REITs. executive to execute that vision.” “The real challenge here is rationalizing the store ■ Launched collaboration with Liz Claiborne in July 2003 Merrill Lynch’s Turnof predicted in her research base, rationalizing the brands and the whole merchan- to simplify merchandising strategies, minimize excess own- report that a merger between the two would result in dising concept,” said Irwin Cohen, senior adviser, Peter ership and maximize sales. Federated converting May stores over to the Macy’s J. Solomon. “The other stuff is merger 101.” nameplate. “A merger could be a positive sign for other Bob Pressman, executive vice president of the nation- MAY: retailers such as Nordstrom, Saks or Neiman Marcus. At al retail division of Studley Inc., said a merged ■ Acquired Marshall Field’s from Target Corp. in July 2004 our Merrill Lynch field trip this morning, Nordstrom Federated-May might “create more leverage from the for $3.2 billion. indicated that it would be interested in some of the loca- retailers in negotiating mall sites, but at the end, most of tions that could be for sale if a merger were to occur (in these anchors get favorable deals anyway.” ■ Divested 32 underperforming Lord & Taylor stores addition to the 50 locations that they have previously “They get low-cost build-outs or favorable land throughout 2003 and 2004. identified),” she wrote. As for the store base, Turnoff added that May owns 70 ■ The company’s bridal group, which includes over 200 percent of its real estate while Federated owns 50 per- David’s Bridal stores, acquired 225 tuxedo stores in new cent. And while Federated has a heavier concentration in markets such as the West and Midwest, thereby doubling the West, May’s stores are concentrated in the Midwest the number of tuxedo stores in the U.S. over the past and the Northeast. Cohen said the two operations proba- few years. bly have a 20 percent overlap, with Southern California — Meredith Derby and Boston being the two most affected regions. “About 10 percent, or 68 real estate investment trust- owned malls, contain Federated and May stores, with 14 retailers that own their own real estate. of those malls having more than two overlap stores,” said “Both of these two are in a long tradition of owning Michael Bilerman, real estate investment trust analyst at their own real estate,” Pressman said. “Their views are Citigroup Global Markets. similar, which is that, when you have a large store and The REIT analyst predicted that a merger would make a large investment, it’s cheaper to own than lease. entail store closures, since “94 malls where there exists A merger would make it an incredibly valuable and a department store overlap between the companies, rep- largely owned real estate portfolio.” resenting approximately 20 percent of each company’s Consultant Kurt Barnard observed, “Nothing better mall locations.” He also noted that past experience could happen to the May Co. than a marriage with shows it may not be that easy to shutter stores. “May’s 32 Federated. May’s downfall over the years is that it Lord & Taylor [store closures] has shown that disposing shielded itself from all new ideas and from the changes or closing mall anchor real estate is difficult and time in competition. The problem predates Gene Kahn.” consuming, given the operating covenants and/or recip- From some vendors’ viewpoint, a merger between the rocal easement agreements in place between the tenant two could result in a sensible fit. and landlord,” Bilerman wrote. He explained that a mall Pam Prahl, chief operating officer of junior jeans ven- anchor will typically have an operating covenant for 20 dor Mudd USA Inc., said an acquisition of May by years dictating that it must continue to operate the store Federated could reduce the amount of price promotion and not close it, and a sale or closure of the store in the department store channel, much of which is the becomes more difficult because the mall anchor would result of those firms’ head-to-head competition. still be bound by the agreement. “Federated has already moved forward with that, and According to Bilerman, 460 of May’s 485 total stores, I think you’re seeing less promotion and coupons coming after its announced store divestitures, are based in malls. out of the Federated group. They’re dealing with less inventory, but being more productive,” she said. STORE CHECK As far as her business, she said her reaction would depend on how the deal affected merchandising decisions. May Nameplates Number of Stores “I don’t look at it as a negative, but it also really Lord & Taylor 54 Lord & Taylor’s New York flagship. depends on what their internal strategy would be with Filene’s, Kaufmann’s 102 their merchandisers and buyers,” she said. “If they’re Robinsons-May, Meier & Frank 75 deals,” Pressman explained. “Typically, the money is not planning on consolidating everyone to New York, I don’t Hecht’s, Strawbridge’s 81 made in the anchors, it’s made in the inland stores, so think that’s the right thing to do for their business.” Foley’s 70 there is not much else landlords can do for anchors that Overall, Prahl — who spent three years in merchan- Famous-Barr, L.S. Ayres, The Jones Store 43 they haven’t already done.” dising at May prior to joining Mudd — said the two firms Marshall Field’s 62 Pressman went on to say that an acquisition by would be a logical fit. David’s Bridal 425 Federated is “more of a merchandising play and a cus- “They have similar strategies, but they’re executed a tomer profile play than a real estate play. Each of the Federated Nameplates Number of Stores little differently,” she said. “Federated obviously has Macy’s 423 companies has its own specific customer profile and been doing it a little bit better due to their sales volume, Bloomingdale’s 6 merchandising targeting [its] customers.” their profitability, the value of their stock.” Still, Pressman described the prospect of Federated — With contributions from Scott Malone SOURCE: COMPANY WEB SITES buying May as a “unique” deal because there are so few and Amy S. Choi

vice president and chief operating officer. Nardozza the years,” Lamas said in a statement Thursday, “and have remained tight-lipped about the collection or the been impressed by the fact that others have always wanted Fashion Scoops company’s future business strategy, but said the house is to emulate that style.” Will white suits be included? continuing to build on Beene’s legacy. “The transition will STILL THERE: Contrary to published reports, Helmut Lang is be flawless,” he said. SEEING RED: Red is in; blue is out. At least that’s the case still an employee of Prada Group. Tensions between Lang for the French retailer that owns Gucci Group, which and Prada chief Patrizio Bertelli are building, as reported YOU NOW CAN LOOK MAHH-VELOUS, TOO: So maybe it’s his unveiled a new corporate identity in Paris on Thursday and in Wednesday’s WWD, over such issues as strategic father Fernando who’s famous for those words, but having said it would condense its name to PPR from Pinault- direction of the Lang company and such categories as grown up around such pithy style statements, terminally tan Printemps-Redoute. Chairman Serge Weinberg introduced accessories. Prada acquired the remaining stake in Lang’s actor Lorenzo Lamas is the latest celebrity to enter the the logo — printed in close white script on a red company last fall, and Lang signed a new contract. But fashion arena. The once prime time soap stud who, background — by praising red as evocative of the good life. the Austrian-born Lang remains at the company in New according to his release, has been more recently involved in “It’s more identifiable with luxury than blue,” he said. And York — at least for now. the “thrill-seeking world of martial arts, aviation and auto he means it, down to the carpet, which is also red at PPR’s racing,” is now seeking thrills with the Lorenzo Lamas Avenue Hoche headquarters. (PPR’s old logo was blue on a BEENE’S SECOND COMING: No, it’s not the ghost of Geoffrey Collection — a.k.a. LLC — a line of sportswear, denim, white background.) Weinberg said the new name should Beene designing the collection scheduled to be presented sleepwear, outerwear, accessories and other categories for simplify life for international investors — who often on Feb.11. Beene’s longtime assistant Einar Holiløkk is women, men and children. LLC is being manufactured by struggled spitting out the old tongue-twisting French words creating the custom-order collection in the spirit of the Bin Jabr New York, the U.S. division of Bin Jabr Group, — while signaling the completion of a strategic overhaul, designer, who passed away last September. “It was Mr. based in the United Arab Emirates. The moderately priced which PPR began after it bought Gucci in 1999, by selling Beene’s wish to continue the made-to-order designs he has line is expected to hit mass retailers by fall. “I’ve always off its traditional business to business activities, from done for 30 years,” said Russell Nardozza, the company’s brought my own personal style to the roles I’ve played over lumber to consumer credit. 16 WWD, FRIDAY, JANUARY 21, 2005

Media/Advertising G+J Case Reveals Circulation Secrets By Greg Lindsay by an agent. The subcontractor thus has and Jeff Bercovici an incentive to do whatever it takes to sell it at any price above $3, even if that means NEW YORK — With Gruner + Jahr again selling it at $4 and passing it along to the in the headlines over a circulation scan- main agent, who keeps only the $1, but has dal, it would be easy to write the story off done little or no work. as simply the latest wrinkle in the pub- The result is that the publisher lisher’s well-documented history of simi- receives a subscriber who isn’t motivated lar blunders. to spend much more than $5 on a year’s But that would be the wrong conclu- worth of its magazine — not exactly some- sion. To be sure, the episode is part of a one the advertisers would be thrilled to pattern, but it’s a pattern that encompass- reach. es virtually the entire magazine industry: “That’s something the publishers the reliance on a multitude of subscrip- would love to stop, but until they stop tion agents whose practices range from doing zero remits, they won’t,” a former opaque to sloppy to criminal at times. circulation director said. G+J’s patronage of subscription agent The more aggressive agents don’t even Publishers Communications Systems of wait for a call from their bigger peers — Coral Springs, Fla., led to the publisher’s they sell subscriptions they haven’t been disclosure 10 days ago that five of its six authorized to and launder them after- titles would miss rate base for 2004 fol- ward, sources said, calling up the author- lowing the Audit Bureau of Circulations’ ized agents and offering them the names. decision to reclassify 165,000 PCS-sup- “That’s bad stuff,” said the former con- plied subscriptions. G+J is currently sumer circulation chief. suing PCS in the U.S. District Court of It gets worse. The most unscrupulous Southern Florida to recoup the $10 mil- agents of all are suspected of committing lion in refunds owed to advertisers. outright fraud. Some have hit upon the The suit, if it proceeds, could shed idea of sending fake renewal notices to light on a widespread industry practice One of the many Web sites selling subscriptions at deep discounts. magazines’ real subscribers — when the that has been largely invisible until now. readers pay up, the agents either pocket Agents produce more than 60 percent of the check or overcharge and skim a little all new subscriptions, according to circu- This is not just a problem for G+J. There are off the top before passing the renewal lation analyst Dan Capell, editor of “ along to the publisher. Industry execu- Capell’s Circulation Report, and that per- a bunch of different agents that are in the same tives said publishers are usually loath to centage will only rise while industry- give out subscribers’ names to agents they wide newsstand sales continue their boat as this one, and it impacts a lot of other don’t fully trust, so the agents resort to decline. either starting dummy companies that In the most recent CircTrack survey of publishers. publishers will unwittingly do business circulation executives, more than 80 per- ” — Chip Block, USAPubs with or stealing the names outright with cent of those polled reported using the help of a man on the inside. direct-mail agents (those who send mail- “They literally have moles inside the ings to potential subscribers), and 60 per- health is increasingly — and dangerously Some agents do just that, or the equiva- fulfillment companies,” said the former cent used “cash field” agents (telemar- — dependent on the advertising side sub- lent, and hand over to publishers “junk” independent circulation director. keters and other types). Those numbers sidizing the circulation side. subs — that is, lists of names and address- “Somehow, somewhere, the agents get are up from 70 percent and 40 percent, “Publishers have at times used these es to which publishers mail magazines their hands on active subscriber lists. respectively, seven years ago. methods to essentially build rate bases without ever seeing a check. Because They fake list rental orders, then they “This is not just a problem for G+J,” when they should be taking them down,” ABC regulations forbid publishers from basically solicit the names on the lists.” said Chip Block, a circulation consultant said Time Inc. executive vice president counting mass-mailed, unsolicited copies Occasionally, unscrupulous agents get and vice chairman of USA Pubs, a sub- John Squires, who oversees the compa- as individual subscriptions, the publisher caught. Two agents and their inside man scription agency. “There are a bunch of ny’s circulation strategy. “I think we and its agent engage in what circulation pleaded guilty to one count each of con- different agents that are in the same boat would all like to see inflated rate bases executives refer to as “check swapping”: spiracy to commit mail fraud in as this one, and it impacts a lot of other come down.” the agent sends the publisher a check November 2002 in a U.S. Federal Court in publishers.” But, in fact, the magazine industry’s that’s ostensibly the money those sub- Phoenix. The agents, Dennis James Ward Interviews conducted over a period of current state of overreliance on agents scribers paid, and the publisher sends a and Michael O’Malley McKee, sold unau- months with numerous current and for- has its roots in publishers’ refusal to check right back for the same amount. thorized renewals between 1997 and 2000 mer circulation executives and agents deflate rate bases when they had the The ABC never hears about the second totaling $236,748, but passed along only revealed much about how numerous junk chance. In the late Nineties, sweepstakes payment because it doesn’t audit the $51,089 to publishers to pay the real subscriptions find their way into maga- firms such as Publishers Clearing House agents, just the publishers and the pub- renewal rate. According to documents were forced to curtail their subscription lishers’ books show only “paid” subscrip- used in the case, the pair invented com- sales in the face of massive litigation. tions. panies with names like Sport Apparel During their peak year of 1992, PCH and To be sure, not all agents utilize such Ltd. and Leisure Services and petitioned We would all like to American Family Publishers combined to practices. Among those with solid reputa- publishers to rent subscriber lists for “ produce an estimated 70 million sub- tions are some of the largest, including marketing purposes. Using this method, see inflated rate bases scriptions — subscriptions that publish- Time Inc.’s Synapse and USAPubs. “At they obtained 40,000 Playboy subscribers, come down. ers then had to replace. Faced with the least 50 percent of agents’ subscriptions 30,000 Forbes subscribers, and 30,000 choice of scaling back rate bases or are sold at full price,” noted Capell. Family Circle subscribers, among others. — John” Squires, Time Inc. upping their reliance on agents, publish- Still, the lure of being paid $5 for a But successful prosecutions are the ers chose the latter. name and an address, regardless of exception. Agents with a bent toward Sensing publishers’ desperation, the whether that person even wants a maga- playing fast and loose with publishers agents rapidly raised the stakes, a num- zine, has inexorably led to the kinds of often manage to be everywhere and zines’ subscription files every year. Now, ber of executives said. All agents pay abuses alleged in the G+J case. nowhere at the same time. “They change as the ABC, under pressure from adver- themselves by keeping an agreed upon Further encouraging such abuses is addresses, they change business names, tisers to scrutinize filings more carefully, percentage of subscribers’ checks. The the widespread practice of subcontract- they work out of boiler rooms, they work begins delving for the first time into the rest is passed along to the publishers — ing subscription sales to smaller agents. A out of empty garages, they work from cell agent side of the business, much of this what’s known in industry parlance as a former circulation director of an inde- phones,” said a former sweepstakes exec- knowledge may soon become public — “remit.” Today, many agents are asking pendent magazine explained, “Most pub- utive. “They move from state to state, they quite possibly, industry executives say, in for the entire check as payment — what’s lishers have a very good relationship with change the names of their companies, the form of additional circulation scan- called the “zero remit.” The most brazen a small number of agents. They’ll tell and the agency just goes away.” dals like the one at G+J. agents demand that publishers let them them: ‘I need 25,000 orders and I’ll pay up But even more routine types of infrac- Across the magazine industry, a rising keep the checks and then pay them on top to $5 a head.’ The agent may or may not tions — such as the breach of contract tide of subscriptions are being mailed to of it as well — a $2 to $5 bonus per sub- have the resources to fulfill that. They G+J alleges PCS committed by failing to readers who don’t ask for them and who scriber that’s known as a “negative may offload the order to a subagent to keep records of its sales — are difficult to pay little or nothing to get them. These remit.” The disputed subscriptions that help fill the need.” prove in court owing to the invisible con- agent-sold subscriptions may even cost G+J bought from PCS were of this type. Deals are then made inside of deals. nections between agent and subagent. publishers as much as $5 per person — The negative remit practically guaran- The guaranteed money of negative remits “There’s nobody you can sue,” the former and that on top of the printing and mail- tees agents will turn a profit, even if they provides the motivation to sell subscrip- independent circulation director said, ing costs of each copy. The result is an simply copy names and addresses at ran- tions at almost any price. Say a subcon- “because you can never get down the economic model where publishers’ dom from a phone book and turn them in. tractor is promised only $3 per subscriber chain far enough.” WWD, FRIDAY, JANUARY 21, 2005 17 WWW.WWD.COM POPPING THE BUBBLE: Remember all those insane bidding wars that would result in a celebrity weekly Diverging Paths for Teen Retailers MEMO PAD paying the price of a luxury car for a photo of, say, Britney Spears NEW YORK —Of the two teen retailers posting In the first six months of the fiscal year, Bebe eating a corn dog? Ever notice how you don’t really hear about that sales and earnings Thursday, the results were just had earnings of $35.7 million, or 58 cents a diluted anymore? It’s because the market for paparazzi shots isn’t what it used as finicky as the sector’s core customers: Bebe share, up 79 percent from $19.9 million, or 34 to be. “The prices aren’t where they were a year ago,” said Larry Stores Inc.’s quarterly comps soared, while cents, last year. Earnings per share in both the Charlotte Russe Holding Inc.’s same-store sales year-to-date and latest quarter have been adjusted Hackett, People’s deputy managing editor, echoing his colleagues from plunged. to reflect a recently announced 3-for-2 stock split. Us Weekly, Star and In Touch. “I think this bubble has burst.” Looking at their bottom line, Bebe Stores re- Total year-to-date revenues at Bebe were The reason for the crash lies with those old Econ 101 standbys — ported a 74.7 percent surge in second-quarter $255.7 million, up 30.8 percent, while same-store supply and demand. On the supply side, more photo agencies are earnings Thursday, while competitor Charlotte sales increased 20.8 percent. employing more shooters, who are generating a greater quantity of film. Russe’s first-quarter profits plunged 75.4 per- Bebe forecast third-quarter earnings of 11 to 14 cent, and the company said it expects to report a cents, compared with the consensus estimate of 13 “There are dozens more crews that are doing this kind of material,” said loss in the current quarter. cents. The Brisbane, Calif.-based company estimat- Brittain Stone, Us Weekly’s photo director. Gary Morgan, head of the Bebe said earnings for the three months ed that same-store sales will be up in the midteens. Splash agency, estimates there are 110 photographers shooting on the ended Jan. 1 were $24.3 million, or 39 cents a di- Meanwhile, challenged by the holiday season, streets of L.A. on any given day. “We’ve probably doubled in number. luted share, versus $13.9 million, or 23 cents, in Charlotte Russe said earnings for the first quarter We’ve devalued our own pictures.” the year-earlier quarter. Analysts had been ex- ended Dec. 25 were $1.6 million, or 7 cents a diluted pecting a profit of 40 cents. share, compared with $6.6 million, or 28 cents, last More bodies means it’s also harder for any single photographer to get Investors were apparently disappointed that year. Wall Street was calling for earnings of 8 cents. exclusive pictures of that Britney corn dog moment. “You really have to Bebe’s per-share profit missed the consensus Total revenues were up 0.5 percent at $150 know it’s a true exclusive before you buy it,” said Stone. “Because, at and sent shares of the company down 14.2 per- million, but same-store sales fell 9.9 percent. the end of the day, what if someone else has another crew out there?” cent to close at $23.35 in Thursday trading on the The San Diego, Calif.-based company expects Budgets, long ignored, are once again a consideration. Before, said New York Stock Exchange. to report a loss of 7 to 11 cents in the second Total sales rose 36.2 percent to $152.6 million quarter, wider than analysts’ estimates for a loss Stone, “everyone was concerned about not being able to get the from $112 million a year ago. Same-store sales of 4 cents. pictures, so everyone kind of defensively spent too much.” Now, said jumped 27.3 percent. — Meredith Derby Bonnie Fuller, American Media’s editorial director, “We’re probably being more focused and smarter about what we’re spending our money on.” The result, according to Morgan: “An exclusive set that may have got $30,000 or $40,000 a year ago is going for a lot less.” But don’t feel too bad for the paparazzi. D&G Store Flourishing in Johannesburg “Just because they’re not getting the super prices doesn’t mean they’re not making the same amount of money,” said Liam Galvin, Life & Style’s photo director. “Now what you’ll do is sit there and say, OK, By Bambina Wise The exterior and we’ll all go in as a nonexclusive,” said Stone. “Those guys out there are JOHANNESBURG — With a interior (below) of the making more money selling nonexclusives.” buoyant retail sector reporting Dolce & Gabbana “It was a false economy two years ago,” said Morgan. “Now what’s impressive sales last year — store in South Africa. happened is the second-right market has erupted.” For instance, he backed up by a strong currency, said, Star might allow People to buy first rights to a photo, then run the low interest rates and unabated consumer spending — it comes same photo the following week but blow it up even larger. “The way as no surprise that more and they’d run it would make it look like an exclusive.” more international brands are “The thirst for celebrity pictures is still bigger than it was a year or rushing to establish a presence two ago,” he added. “So you can’t get the higher price, but you’re in South Africa. getting fairly decent prices from all the magazines.” — Jeff Bercovici D&G, the secondary line of Dolce & Gabbana, opened its Johannesburg store in the posh SHE’LL ALWAYS HAVE PARIS: Vogue Sandton City mall late last year, editor in chief Anna Wintour, who a few months after opening a has skipped the January couture freestanding boutique in Cape season for two years, will be in Town’s V&A Waterfront. The D&G shops are owned Paris next week after all. A and operated by the Diesel spokesman for Vogue (which, like Group, which in South Africa WWD, is owned by Advance represents such hip, upmarket Publications Inc.) said Wintour’s brands as Diesel Jeans, DSquared schedule allowed her to make the and New York Industrie (Diesel backs the DSquared line and trip this year — plus he used to own New York Indus- acknowledged an extra incentive. trie). “Diesel has been in South As co-chair of the annual benefit Africa for the past 12 years,” said for the Metropolitan Museum of Nadine Le Roux, the company’s Art’s Costume Institute, which group marketing manager. Anna Wintour and André Leon Talley Having successfully grown the inaugurates a Chanel retrospective Diesel brand in Johannesburg, in May, Wintour is particularly keen to see what Karl Lagerfeld comes out the group hopes to do the same with for the house on Tuesday. — Miles Socha with D&G. “We have been selling D&G for some time now,” Le Roux RADAR’S DOPPLER EFFECT: A lot can change in two years. For Maer explained, “not in a separate store, but in our Diesel Style Lab Roshan, the goal — launching a pop culture magazine called Radar — store. We felt that the time was hasn’t changed from April 2003, when he published the first test issue, right for D&G to stand on its own.” but his idea of what it ought to look like has. “When we started, it was Le Roux would not disclose meant to be an ironic tabloid,” said Roshan. “It was playing on the sales figures, instead saying that sensibility that we saw coming. Then it came.” It came in the form of Us “it would take a few seasons to grow the D&G brand, but it is Weekly’s sudden success, and the attempts by Star and In Touch to cash doing well. Our customers range in on that success. “After that, the irony that we were attempting was from teenagers to people in kind of lost on some people.” their 60s, but our core market is So for the relaunch, Roshan has rethought the design, and this week more accurately the 18 to 45 age hired Lisa Steinmeyer, a veteran of Details, Spin and ESPN The Magazine, group.” Comprising about 1,000 to execute it as art director. “She’s a nice combination of pop sensibility, square feet, the narrow, almost South African shoppers, who line with Europe,” she stated. fashion sense and news, which is kind of a hard thing to get right,” he said. all white space — the sleek so- are considered to be more Prices, she claimed, are more or With its core staff in place, Radar will begin ramping up for a May briety is broken by bright red brand-obsessed than fashion- less on a par with Europe. A 25 launch. For those keeping score, Roshan originally said Radar’s shelving and one wall dotted conscious, but it is not lost on Le pair of distressed jeans, for in- launch would happen in April. The added delay has dredged up some with black — carries both the Roux. D&G positions itself as stance, are priced at 1,800 rand, women’s and men’s lines. As an up-to-the-minute, edgy de- or $360 at current exchange. unhappy memories of how Roshan’s hunt for funding was forever two South Africa is located in the signer label; Le Roux acknowl- The D&G boutique also car- weeks away from a successful conclusion. (It finally ended in October Southern Hemisphere, however, edges that selling last season’s ries the John Richmond line; when Mort Zuckerman signed on, for a reported $25 million.) Of the the seasons are reversed, and fashions at this year’s prices is starting next season, D&G will be scrapped April launch date, Roshan said only, “That was before we had D&G currently stocks the spring- something of a problem. She combined with DSquared in the done the business plan.” And, anyway, what’s one more month after summer 2004 collection. This said she had every intention of same space. “We find that the means the fashions the store synchronizing the collections to two brands work well together,” two long years? — J.B. carries are a season behind. address this situation. “We are said Le Roux. “They comple- The irony may be lost on definitely planning to get on ment each other well.” 18 WWD, FRIDAY, JANUARY 21, 2005 WWW.WWD.COM

The Nike Maddie line is developed in conjunction Nike Does a Two-Step with Finish Line. By Melanie Kletter In conjunction with the launch, Nike range from $18 to $32 for apparel. tapped celebrity choreographer Jamie King Winslow said distribution is targeted at NEW YORK — Nike is stepping out for to develop a dance-based workout series gyms and health clubs as well as boutiques spring with the launch of its first fitness under the title “Nike Rockstar Workout,” and department stores. The line will begin dance apparel and footwear collection, as which will bow next month at Crunch fit- retailing this spring. The collection was well as a cobranded teen line, called ness locations throughout the country. scheduled to be feted Thursday night with Maddie, developed with Finish Line. “The workout is designed to turn a soiree in Manhattan’s Chelsea neighbor- Fitness dance is a new category for everyone into a rock star,” quipped King hood featuring King and his dancers show- Nike. It was born out of the rising interest as he previewed moves from the workout. ing moves from the new workout. in hip-hop and dance classes at gyms and The fitness dance apparel offerings Winslow also noted that Nike reorgan- health clubs, said Darcy Winslow, the include such items as mesh tops with built- ized some of its operations earlier this company’s global general manager of in shelf bras and racer-back tank tops, as year to fall under the women’s fitness women’s fitness business. well as low-waist knit pants and capri pants division. Yoga, running, walking, cardio- “We have done a lot of research in this with an attached mesh skirt, and footwear vascular and dance fitness all now fall category and saw that dance is gaining in offerings have extra ankle support. Many under fitness, and there is greater coordi- popularity,” Winslow said in an interview apparel items have moisture management nation between the product categories, on Thursday. “We looked closely at what and incorporate Nike’s proprietary Dri-Fit design, sales and marketing teams across dancers do and what they need from technology, while the footwear styles use these categories, she said. She declined head-to-toe to develop this collection.” Nike Shox cushioning. Wholesale prices to give any sales information for women’s fitness, and Nike doesn’t break out sales of this division. of the same name. In a separate development, the new Retail prices range from $4 for a mini Maddie line hits about 400 Finish Line water bottle to $28 for a print tank top—to stores today. Maddie is an extensive col- $40 for capri pants to up to about $70 for Choreographer lection of brightly colored apparel, some of the footwear styles. While Geis Jamie King footwear and accessories designed for declined to give specific sales targets, he with dancers active teen girls that is codesigned by said Finish Line has big goals for this col- wearing looks Finish Line and Nike. lection and that sales will likely be in the from Nike’s “We wanted to create more excitement multimillions. new fitness in our apparel offerings,” said Tim Geis, The launch also will be accompanied dance line. senior vice president and general mer- by an advertising campaign in magazines chandise manager at Finish Line, who such as Teen People and Seventeen and said he approached Nike about doing the on special in-store signage, and, for a lim- cobranded line. “We had tremendous suc- ited time, shoppers will receive a CD as a cess with young women’s footwear, and gift-with-purchase. we wanted to build on that momentum. A Nike spokeswoman said the compa- We want to encourage that customer to ny has no plans currently to do similar come into our store.” collections with other retailers. Geis said The mix-and-match collection includes that while there is no specific time frame performance and casual apparel and for the collaboration, Finish Line execu- footwear as well as accessories such as tives will meet with Nike’s team later this sunglasses, watches and hats. The name month to develop Maddie products for stems from a Nike sneaker sold in Finish the holiday season. Line and other stores last year that was “We feel this is an opportunity that

PHOTO BY THOMAS IANNACCONE PHOTO BY named after the shoe designer’s daughter could be long-standing,” Geis added.

TEEN TRENDS Paris Hilton Least cool: The preppy look. in Guess ad. Listen Up! Here’s What Teens Crave Look that won’t die: Uggs Store they’re sick of: By Michelle Dalton Tyree Chicago-based teen research to their customers, she said. Abercrombie & Fitch company. Though the teens were split Most popular store: LOS ANGELES — Retailers listen The one thing on which the between those in favor of trendier Abercrombie & Fitch to teenagers like Kandice Kovac, group unanimously agreed? looks, punk styles or surf-inspired Who they’re listening to: Green who loves reality TV, shopping Music is a huge influence on fashions, almost all agreed that Day, My Chemical Romance, online, Abercrombie & Fitch, their lives. Three-quarters had denim was the mainstay of their Gwen Stefani, Led Zeppelin, The board shops, C & C T-shirts and downloaded music, and almost wardrobes. They each owned an Red Hot Chili Peppers the magazines Allure and Cosmo. half said they either owned or average of four pairs of jeans, and Average pair of jeans they own: 4 “I probably buy something wanted to own an Apple iPod. more than 25 percent confessed to Most pairs of jeans they own: 10 from C & C [California] online at Hot Topic chief executive offi- owning about 10 pairs. Favorite denim brands: Guess, least every month,” said Kovac, 18. cer Betsy McLaughlin cheered The lines the panel said they Volcom, Gap Pacific Sunwear, Urban when several students named the wear and love were Guess, Shop the Web: 25 percent Outfitters, Quiksilver and Hot punk band My Chemical Romance Volcom, The Gap, Abercrombie Favorite Christmas gifts: Seven For Topic, which cater to the youth as their favorite. The company & Fitch and premium denim All Mankind jeans, Apple iPod, market, soaked up insights last sells a My Chemical Romance lines such as Seven For All BCBG pumps, snowboard weekend during a teen panel Album Cover T-shirt for $17.99 Mankind and Rock & Republic. discussion at the ICR XChange Hot Topic, the City of Jeff Kleinfelter, senior retail conference in Carlsbad, Industry, Calif.-based teen chain, research analyst for Piper Calif.-based company, which in at retail. We’ve moved the nee- Calif., where retailers present- has carved a niche as a purveyor Jaffray, who moderated and con- December reported year-to- dle up in terms of price and ed their 2005 outlooks for indus- of trendy rock ’n’ roll, punk and ducts similar panels throughout date sales of $1.2 billion, an 18 found little resistance.’’ try analysts and investors. music-influenced fashions for the year as well as national teen percent jump, compared with Alberini said the company They heard 20 juniors and teens, but has recently seen sales surveys twice a year, said teens’ the previous year. The company “missed the mark in denim this seniors from Rancho Bernardo slip as the return to softer, more brand consciousness was “very is looking to hire additional [past] year” because of turnover, High School in San Diego County feminine looks has dominated typical for a coastal community division heads to help focus on poor planning, buying and exe- weigh in on everything from the market. The retailer report- on the West Coast, where there core elements of the business. cution, but that he anticipates their favorite clothing brands ed a December same-store sales are more independent shops.” Brand names aren’t as impor- being on track by March. and holiday gifts to their online decrease of 6.2 percent, com- And retailers such as Pacific tant to students such as 18-year- One area doing well for habits and disposable income. pared with a 10.1 percent Sunwear, which have tended to old Brittany Jones, who implored Guess is its accessories busi- Who is this elusive, brand- increase last year. place more emphasis on tops, the companies to lower prices. ness, Alberini said. Guess oper- savvy teen with money to burn McLaughlin said it is possible are trying to respond to the “If I like it and it’s comfort- ates six accessories stores, as and an appetite for things new to address the trends in a way demand for denim. able and cheap, I’ll buy it,” said well as 150 Guess stores and and trendy? that is relevant to the company’s “We’re working on expand- Jones, who recently received an four Marciano locations. About half of the panel mem- core consumer. “The more femi- ing the denim offerings,” said iPod mini for her birthday. “I “We think the accessories bers said they had part-time jobs, nine look is actually applicable Tom Kennedy, division presi- don’t care what brand it is.” concept could be huge,” he said. and half said they spent 50 percent to us,” McLaughlin said at the dent for PacSun. “We’ve only Guess jeans, one of the teens’ Bebe has also seen its acces- of their own money on clothes. conference. “But not frilly femi- had one fit with two legs for the favorite brands, might just be sories business increase and U.S. teens pay $169 billion nine. More romantic feminine.” girls, but you’ll start to see us out of the budget range of will be launching freestanding annually to buy goods and serv- And instead of the ubiquitous address different styles for dif- youths like Jones. accessories stores, said Walter ices, more than the gross domes- sherbet colors that will domi- ferent body types. Then we’ll “We’re not going in the value Parks, the company’s chief tic product of countries such as nate this spring, the company address the washes.” direction,” said Carlos Alberini, financial officer. Finland, Norway, Portugal, will address color with hues Kennedy, a recent hire from Guess president and chief oper- “We’ve seen signs of growth in Denmark and Greece, according such as silver, burgundy, green The Gap, is the first division ating officer. “In fact, we’re cut- [the accessories] category during to Teenage Research Unltd., a and blue that are more relevant president for the Anaheim, ting off the $59-$69 price point the past six months,” Parks said. WWD, FRIDAY, JANUARY 21, 2005 19

CHILDREN’S SWEATER DESIGN ASSISTANT FOR SALE Quick Turn Distribution Cen- Leading childrenswear manufacturer ter, where timely shipping is currently seeking a highly motivated A beautiful lot of highly-pigmented, Sweater Designer with a minimum of prestige quality, lip gloss & eye pencils. and compliance issues are 3 years experience in the apparel in- Excellent products for all target markets our speciality, is offering dustry. This candidate will assist the - especially multi-cultural. Four shades Pick and Pack services to in- Senior Designer and will be responsible of coconut-scented lip gloss, three shades for executing designs for customer pre- of creamy metallic eye pencils. All over terested Garment manufac- sentations and packages for garment stock must go! Visa/MC and Cashier’s turers. We are located in production. This individual should have Check Accepted. For more info, email: Secaucus, NJ with over experience in all phases of line devel- [email protected] opment with an understanding of color, 55,000 sq ft of space. Call fabric and trim details. The candidate us for a demo of services on must be organized, detail oriented and how we can lower your ship- familiar with line development timelines. Primavision software knowledge pre- ping costs at 201-558-9191 ferred. Working knowledge of Illustra- tor required. Please email your resume to: Sales/Counter Manager PATTERNS, SAMPLES, [email protected] or fax to: European niche fragrance brand 212-643-2826. Please no telephone launching in NYC - seeks Sales/Counter PRODUCTIONS calls. EOE Manager to be based in New York. All lines, Any styles. Fine Fast Service. Needs to be: pro-active, dynamic, with Call Sherry 212-719-0622. agood knowledge of fragrance, sales COMPUTER ARTIST experience, passionate, stylish, self Major Childrenswear Company seeks motivated, experience of managing PATTERNS, SAMPLES, talented and experienced Girls Artist sales team. Please send resume to: to work in Illustrator and Photoshop. E-mail: [email protected] or PRODUCTIONS Must be able to draw flats, create prints, Fax: +44 20 7629 7751 Full servcie shop to the trade. Fine embroideries. plaids, and appliques. Min. fast work. 212-869-2699. 2yrsexperience in Girls Apparel. Must see a strong portfolio that includes boards. Good working conditions plus benefits. Fax resume to Julie: 212-967-8108 PRODUCTION COORDINATOR/ KNITWEAR DESIGNER High-end sweater importer seeks a Seeking experienced leather goods detail-oriented individual to correspond freelance designer of handbags, back- with overseas vendors & handle all as- packs, briefcases, and small leather pects of production. Import/textile exp. goods who has placed product. E-mail preferred. Proficiency in English, Word/ Sales Director resume to [email protected] or Excel a must. Please fax or email to: ACCOUNT EXECUTIVE fax to 973-442-3073 Attn: Paul. (212) 575-1781 / [email protected] Sonya Dakar Skin Care, a fast Australia’s Hottest Make-Up brand, growing, luxury skin care company Napoleon Cosmetics seeks an experi- Director of Purchasing enced, results-driven Account Executive RECEPTIONIST renowned for its effective prod- to join their new American team. Must ACCESSORIES (LUXURY CO.) Fabric/Trim Children’s Apparel Importer is seeking ucts, & celebrity following, seeks be based in New York, with 3-5 years an organized individual w/professional EXECUTIVE ASSISTANT Strongly financed & highly profitable phone manner and strong written/verbal experienced Director of Sales to sales experience in cosmetics. Must St. Louis based Manufacturing Co. of possess superior selling skills, a keen Great opportunity for person with 2 years communication skills to handle office manage & devel field staff, new minimum experience in the Accessories/ Military/Public Safety Apparel and related management functions. Computer knowl- analytical ability, outstanding communica- items seeks an experienced, hands on business, & strategic sales initia- tion skills and flexibility to travel. Will Jewelry Industry. Must be detail oriented, edge req’d. Please Fax resume & salary well organized individual for diversified manager to head up our Purchasing requirements to: 212-564-5214 tives. Min 8 yrs spa sales w/ direct sales activities to meet company Dept. and Govt Contract Admin. Will be targets and goals, conduct B2B deal and duties in day-to-day office operations. strong active contacts, 3 yrs in Strong computer skills a must, and ability responsible for all phases of purchasing develop strategic accounts relationships. fabric/trims. Detailed experience with RECEPTIONIST managing a field staff. Sales Requires the right mix of sales savvy, to work in a fast-paced, collaborative environment. Fax resume to: 212-639-1662 woven fabrics is ESSENTIAL. Must Need Receptionist for showroom on mgmt exp w/ retail brands a ++. detail focus, and excellent communica- have proven negotiating skills. Strong 7th Ave. Friendly work environment. tion skills to work with national retailers organizational and supervisory skills Call Peter 212-268-2888 E-mail: [email protected] &staff. Will be responsible for managing ADMIN ASSIST $8-10 Hour are required. Domestic & Caribbean travel department store businesses, developing will be required. ERP/MRP system and &managing sales strategy, planning Filing, Answer Phones, E-mails, Sales Assistant RETAIL HOSIERY & LINGERIE SALES REPS Personals. 34th St and 7th Avenue. computer skills will be a consideration. Fast paced Intimate Apparel Company &monitoring sales, as well as dealing Govt Contact Admin. experience would Soho high-end Women’s Wear Boutique with contacts from major stores. Should Call Susie: 212-947-3400 has opening for sales assistant also be helpful. Excellent opportunity position. Responsibilities include is seeking a SALES ASSOCIATE/ KEY Wanted for Italian, high be fashion conscious with superior to join a small group of highly motivated HOLDER. Candidate must have strong "people" skills and have a strong desire order placement, account follow up quality collection! Ladies executives. Compensation, Health Ben- and communication and interfacing selling skills, excellent customer service, to become a long term key player with us, efits, 401K, etc. are all EXCELLENT. and experience in sales. Position is F/T. sheers, tights, socks and during this exciting expansion period. ADMIN SINCE 1967 with design, production and retailer. Email resume to: [email protected] Experience with Word and Excel Please Fax Resume to: 212-274-8975 lingerie. Must have follow- Salary commensurate with experience W-I-N-S-T-O-N or Fax to 636-447-0646. and incentives based on sales volume. required. The candidate is organized, ing & references. Salary & Please email resume to: APPAREL STAFFING driven, detail oriented and thrives in a SALES PROFESSIONAL commission. Promptly paid. multi tasking environment. Minimum Well known established contemporary [email protected] DESIGN * SALES * MERCH EXECUTIVE ASSISTANT Fax resumes: 718-851-7038 ADMIN * TECH * PRODUCTION Busy VP at a Large Private Label two years experience required. Fax re- knitwear Co. seeks pros. Sales exp’d w/ (212) 557-5000 F:(212) 986-8437 Company seeks an assistant with sume to: 212-842-4030 Attn: A. Jacobs. major & private label a/c. Min 5 yrs exp. excellent organizational and computer We are an equal opportunity employer. Pls fax resume to 646-473-0963 or skills. Must be advanced level on e-mail: [email protected] Excel. Minimum of 3 years experience SaraMax Business Manager in apparel importing is required. SWEATERS Prestige cosmeceutical company has Salary commensurate with experience. Sample Dressmaker Est’d. Domestic/Importer of Jr./Missy & an immediate opening for a Business Fax resume and salary requirements to: Formal dress manufacturer located Manager position at Saks Fifth Avenue, 212-302-1856, Attn: PL Private Label Sweaters seeks exp’d Sales in Nassau County seeks sample dress people. Fax resume to Allen: 718-875-8028 Junior/Contemporary NY. Cosmetics experience, proven sales maker. Please fax resume (516) 686-8258 track record, excellent comm. skills and Swimwear an entrepreneurial spirit are a must. Fashion Coordinator Long established Los Angeles based Please fax resume to: (954) 385-6621 Palm Beach Media Group, the leader in Seamstress/Tailor swimwear manufacturer specializing in Bryant Pk Duplex 1100, 2000, 4500 FT. regional luxury lifestyle publishing, seeks Small Custom Tailoring House seeks F/T separates, seeks aggressive New York 20 Ft Ceilings - Great Windows/Views creative, industry-savvy, team-oriented individual w/min. 5 + yrs. exp. w/fine representation with high profile mid- SoHo-Sublet Penthouse 2000 FT individual to style fashion shoots for its fabrics, canvas fronts, handset armholes, town showroom. Swimwear experience Prime Manhattan Jon 212-268-8043 Buyer monthly magazines & custom publica- etc. Excellent handiwork req’d. Located amust, non conflicting lines ok. Must tions. Must have 5-10 years magazine or in L.I.C., 1 stop from Manhattan. Please have relationships with specialty stores, comparable experience. Travel involved. call Alaina or Fax resume to: chains and department stores around E-mail / Mail resumes & examples of work: Tel: 718-937-3636 / Fax: 718-937-3699 the country. This is a fabulous income [email protected] opportunity. Call Ron @ 800-783-1451. Fashion Coordinator c/o RETAIL SALES PALM BEACH ILLUSTRATED TECH DESIGNER Exciting ground floor opportunity to RETAIL BUYER 1000 N. Dixie Highway, Suite C For Line Development be a part of a new high-end lingerie Loro Piana, a leader in the manufacturing West Palm Beach, FL 33401 Sweaters/Knits. Candidate must have retail concept located in Manhattan’s &distribution of the finest quality tex- excellent Excel skills and handle multi Meatpacking District. 244 Mulberry Street-Nolita tiles, ready to wear & accessories has tasking. Exp in product packs/initial an outstanding opportunity available Graphic Designer The ideal candidate will be creative, 2,000 sq. ft with 22’ ceiling specs and comm. w/overseas factories. goal oriented and energetic, with in their US retail division. The ideal Fast paced trendy accessory company Fax resume attn Donald 212-768-7856. Dumann Realty (212) 505-6300 candidate will have a minimum of five seeks highly motivated, creative and strong communication skills and the SALES REP years experience in merchandise plan- organized MAC graphic artist. Specializing ability to cultivate client relationships. www.dumann.com TEXTILE & CAD ARTISTS Must have day, evening and weekend Higgins Supply Company, Inc., an up- ning, forecasting & allocation in a luxury in fashion accessories, packaging and state NY garment boning & underwire retail environment. Travel required. licensed properties. Junior market flare Fast paced textile co. seeks exp’d CAD availability. Full time position eligible and Textile Artists to create layouts, for a complete benefits package includ- manufacturer is expanding its sales Must have excellent interpersonal, amust.Proficient in Illustrator and force. Seeks motivated, aggressive, pro communication, & computer skills. Photoshop. Experience needed. Please redesign and colorways. Min 5 yrs. exp. ing health and dental insurance, Long 488 Seventh Avenue Experience with dyes and gouche a plus. Term / Short Term Disability Insurance, rep w/ industry experience and proven Fax or E-mail resume to Jennifer: record w/ major designers and compa- LIVE/WORK Please submit resume with salary 212-869-6927 / [email protected] Fax or email resume Att: Connie 401(k), paid vacation and holidays. 212-730-0362 / [email protected] nies in NYC; ability to read underwire Small 1 BR SHOWROOMS...... $1675 requirement to: E-mail resumes to: prints. E-mail resume to: Large 1 BR SHOWROOMS...... $1795 Director, Human Resources [email protected] [email protected] Wood floors. Hi ceils. Doorman. Immed. Loro Piana Import Logistics Personnel 212-629-8694 - MON-FRI - NO FEE 46 E. 61 St Fashion Footwear Co. seeks an organized New York, N.Y. 10021 &ambitious Import Logistics Assistant [email protected] w/minimum 3 years experience. Must For Space in Garment Center Fax: 212-826-2302 communicate well w/overseas suppliers, Helmsley-Spear, Inc. manage shipments from inception to final 212-880-0414 destination, handle documents, and be familiar w/customs clearance & logistics. Please Fax resume to: 212-268-5489 Showrooms & Lofts MARKETING MANAGER BWAY 7TH AVE SIDE STREETS Health & Beauty Sales CHILDREN’S QUALITY CONTROL & Stuart Weitzman Health / beauty / cosmetic industry exp Great ’New’ Office Space Avail An oppty. to join the public relations ADAMS & CO. 212-679-5500 SPEC TECHNICIAN required. Professional, organized, self- Leading childrenswear manufacturer /advertising team at Stuart Weitzman. starter, work from home - needs to be is currently seeking a Quality Control The right candidate will have at least 30-45 min proximity to NYC. Existing & Spec Technician with knowledge of 4 years experience in public relations, &new accounts. Base, commission, Q.C. testing. The ideal candidate must marketing or advertising. expenses, etc. [email protected] possess the ability to measure and eval- Please fax resume to: (212) 582-6388 or uate fit and pre-production samples Email: [email protected] and communicate directly with overseas factories. Responsible for pro-active New York Showroom Sales tracking of samples for key accounts. Production Coordinator Est’d. Jr. Sportswear Co. seeks aggressive East 53rd & Madison Overseas travel required. Fast paced Womenswear Company &energetic SALESPERSON. Must have Windowed office with desk (plus addi- Please email your resume to: seeks Production Assistant with minimum 1-3 years experience in Juniors market tional desk adjacent to office) available [email protected] or fax to: 2 years experience in IMPORTS. Must w/Specialty Stores. Salary + Commission. to rent in Cosmetic Co. $1,450.00 per 212-643-2826. Please no telephone be proficient in Excel and Word. GREAT WORKING ENVIRONMENT! month. Call Herb or Phil: 212-838-8601. calls. EOE Fax Resume to Pamela at 212-302-5763 Please Fax resumes to: 213-232-3745 The Ultimate Spring Beauty Shopping Guide

Hair Care Skin Care BEAUTYBIZ

Makeup Fragrance PHOTOS BY DAN BIBB, BRUNO GAGET AT WWW.P-ACHARD.COM WWD

WWD Beauty Biz’s spring shopper is the hottest product guide of the season, Save sending readers straight to retail. the Date Reserve your place in this issue and set your sales in motion. Issue Date: March 11 Bonus Distribution: Qualified beauty- hungry customers at select retailers, Close: February 4 the CEW Product Demo and the CEW Awards.

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