CALVIN KLEIN’S BARELY THERE SHOW: THE BRAND IN THE DARK: PRESENTS ITS MEN’S SHIRTS GO DARK AND BRIDGE, BETTER, RICH FOR SPRING, WITH UNDERWEAR AND AN EMPHASIS ON A MORE ACCESSORIES LINES. YOUTHFUL LOOK. MW1 PAGE 4 THIRD-QUARTER MOJO Macy’s Bullish on Holiday After Profits, Sales Leap By DAVID MOIN MACY’S INC. REPORTED a strong third quarter and sees the pace continuing right through the holi- day season. “We purposely brought in inventory early for WWD holiday setups so stores could have time to be or- ganized early and could focus on selling execution as the momentum builds in the next week or two,” THURSDAY, NOVEMBER 10, 2011 Q $3.00 Q WOMEN’S WEAR DAILY Terry J. Lundgren, Macy’s Inc.’s chairman, president and chief executive officer, told WWD. Consumers, he said, will notice “so many im- provements in designer and celebrity gifts that we didn’t have last year,” such as knit cap and glove combinations from Ralph Lauren, new sweaters from Tommy Hilfiger and a special fragrance set from Justin Bieber to be unveiled soon, as well as other gift items from Calvin Klein, Rachel Roy, Karl Lagerfeld and Betsey Johnson, among the de- signer lineup. “We feel very prepared for the fourth quarter,” Karen Hoguet, chief financial officer, said during a conference call. “Our fourth-quarter merchandising and marketing strategies are terrific and should en- able us to achieve our 4 to 4.5 percent comp-store sales guidance.” The extra day between Thanksgiving and Christmas this year will boost results, she noted. The all-around optimism was stoked by the quar- terly results, posted Wednesday. Net income for the third quarter ended Oct. 31 rose to $139 million from $10 million a year ago as comparable-store sales Party grew 4 percent to total $5.85 billion, from $5.62 bil- lion in the 2010 period. Earnings per share rose about 15 fold to 32 cents from 2 cents. The company also increased its full-year guidance for earnings per share to $2.70 to $2.75, from $2.60 to $2.65. Lundgren credited the My Macy’s strategy of lo- Like It ’s calizing assortments; accelerating online sales and SEE PAGE 6 $19.99 IN WWD TODAY Graff’s All right, the average price point of $1 Versace for H&M might not be quite Billion that bargain-basement. Still, the pair’s IPO Plan PAGE 3 collaboration was cause enough to FINANCIAL: celebrate Tuesday night at New York’s The London- Pier 57, where Donatella Versace based high-end jeweler is said to be presented the wares and Prince and eyeing Hong Kong for Nicki Minaj provided the entertainment. an initial public offering that would value the For more, see page 5. ▲ company at $1 billion. Catching Up With Christopher Kane PAGE 4 FASHION: The British designer, in New York to present his first collection for J Brand, talks about expansion, fashion — and being a TV junkie. Ralph Lauren Ups Outlook PAGE 3 NEWS: The designer firm raises its 2012 guidance after strong third-quarter profits and sales, despite a slip in margins. PHOTO BY STEVE EICHNER BeauTy BeaT Mizrahi in Scent Licensing Deal In the latest of a flurry of licensing deals signed in the wake of Xcel Brands Inc.’s acquisition of Isaac Mizrahi, the company has inked a worldwide licensing agreement with the Cloudbreak Group llC, to develop, manufacture and distribute fragrance, bath and body, home fragrance and other related beauty products for the Isaac Mizrahi new york brand. as reported, Xcel acquired the Mizrahi business at the end of september, and since that time has signed eyewear, footwear, hand- bag and jewelry deals. “In any brand, you want four legs under the stool — sportswear, Hailing The Wale denim, home and beauty,” robert D’loren, chairman and chief ex- Group Celebrates Corduroy As Designers Give It Fashion Appeal ecutive officer of Xcel Brands, Inc., told WWD. “this is the begin- ning of our beauty leg. We will begin with fragrance, bath and body and home fragrance, and eventually branch into other categories, hen the weather turns cool and leaves begin This season, says Mary Liz Lehman, founder and such as color cosmetics. We are working across all categories to to fall, thoughts of cozying up in sweaters president, corduroy “is no longer relegated to the make Isaac Mizrahi a true lifestyle brand.” and corduroy are only natural workplace, but can also be incorporated into the the first beauty products are expected in fall 2012 in department W and specialty stores in the u.s. and in selected international markets, For some corduroy fans, November is the perfect modern woman’s wardrobe by pairing it with skinny including asia and europe. also expected for fall, D’loren said, are in- time to don their favorite fabric, for reasons that go jeans, silky blouses or smart riding pants.” timates, denim, bridal, outerwear and home, as well as the already an- beyond the weather. Tomorrow evening marks the And at Sweet Lady Jane in Burlington, VT, owner nounced eyewear, footwear, handbag and costume jewelry lines. Grandest Meeting of the Corduroy Appreciation Club, Rachel Strules says the shop carries a skinny curry cord tom Butkiewicz, ceo of the Cloudbreak Group, noted that the de- the date of which—11|11|11—most closely resembles from Free People. signer’s high profile along with the fact that he’d never had a fragrance corduroy’s parallel lines. “It’s in a funky, ‘70s color or beauty presence made the deal attractive to the Cloudbreak Group. Lest one think the event or like pea greeen,” she says. “Many designers with available licenses are either up-and-com- It’s still corduroy—only done ing or have had other beauty licenses in the past,” said Butkiewicz. group is simply satirical, look “ “We’re a big college town and with a twist in a modern way. “Isaac hasn’t, and that’s hard to find. as well, he has had success in no further than The Desmond ” tourist destination, so our a number of different channels of distribution.” Tutu Center in Manhattan, customers are college kids and “a woman gets all her mystery from the scent she wears,” said Blake Nieman-Davis, Blake where the celebratory meeting their families, as well as people Mizrahi, who is now creative director of Xcel Brands Inc. “It pre- of the six-year-old club is sold who like to shop here because cedes her and it is her calling card. I can’t wait to launch my first out. “At some point, it was more like an art project, everthing is well-edited and put together. We have signature fragrance.” — Julie NaughtoN a happening, but it’s definitely changed,” founder a lot of little cape sweaters and one from Left on Miles Rohan recently told the NY Daily News in Houston has leather detail that would bring extra SeCTorS in ThiS iSSue describing the early days of the CAC. “It’s become a style to the cord, without looking collegiate.” legitimate organization.” Corduroy pants are a core cotton product; of those Retail offerings of corduroy pants peak in the fourth offered at retail, 93% contain cotton, according to FINANcIAL 1,3,6 INTERNET 7 BEAUTY 2 MEdIA MW8 quarter of each year, representing about 5% of pants the Retail Monitor. More than 8 of 10 consumers FASHION 4,5 MEN’S MW1-MW8 at retail, compared to about 1% at other times of the (83%) describe cotton apparel as comfortable, year, according to the Cotton Incorporated Retail followed by soft (81%), good quality (79%), casual Monitor™. Approximately 2% of pants available at (78%), natural (77%), durable (76%) and a good value U.S. retailers are corduroy. (76%), according to the Cotton Incorporated 2011 daily QuoTe At Blake, a better boutique in Portland, OR, owner Environment Survey. Blake Nieman-Davis says the store has traditionally The members of the Corduroy Appreciation Club carried corduroy bottoms for men and women. But the normally wear two corduroy items to their meetings. I love New York. It feels selection is expanding. But for tomorrow’s Grandest Meeting, sponsored by “Increasingly, we’re starting to see other things made Cotton Incorporated, a three-item rule will be in effect. like you’re on a movie set. in corduroy—woven shirts, jackets, outerwear. We The group intends to crown a “corduroy messiah”— even have hair ties in cor- a child celebrating his or her — Christopher Kane. page 4 duroy. We do carry a decent eleventh birthday on Nov. 11. How Consumers amount of it,” Nieman-Davis Describe Cotton Apparel Other CAC activities at says. “Women’s tend to be the Grandest Meeting will more fashion-forward than Comfortable 83% include a presentation of Today on WWd.CoM men’s, which tend to be more % awards for “Exemplary Usage Soft 81 ■ ‘tradition with a twist.’ In of Corduroy,” awards for EYE: See extra images from Good Quality 79% the Versace for H&M after party women’s, we have flares and best dressed, a performance Casual 78% and the latest edition of Celebrity skinny bottoms. The pant by an 11-member choir, Trend at WWD.com/eye. % styles are more trend-driven Natural 77 dancing and poetry inspired ■ FASHION: More looks from than the wovens or jackets. Good Value 76% by corduroy. All actions are Calvin Klein’s spring 2012 The shirts are button-down, intended to, as the group’s collection at WWD.com/fashion-news. Durable 76% and the jackets are trucker slogan goes, “hail the wale.” ■ RETAIL: See more images style—a traditional look but Easy Care 74% “In the last couple of years, from Jimmy Choo’s first stand- Fashionable 73% alone men’s store in Europe at done in corduroy.