Rhythm Method Christopher Bailey Is Dancing to the Beat of a New Drummer — Burberry the Beat for Men, the House’S Newest Fragrance

▲ RETAIL: MEDIA: A Q&A with Ann Taylor “Gossip Girl” costume Loft does stylist Eric Daman, the laundry page 13. ▲

with P&G, ▲ EYE:

page 10. Elisabeth Shue ▲ BEAUTY: talks nurses Remembering and “Hamlet,” hair stylist Paul page 12. Starr, page 10. Women’sWWD Wear Daily • The Retailers’FRIDAY Daily Newspaper • August 22, 2008 • $2.00 Beauty Rhythm Method Christopher Bailey is dancing to the beat of a new drummer — Burberry the Beat for Men, the house’s newest fragrance. In the U.S., the scent will launch exclusively at Bloomingdale’s in September, rolling out to wider distribution in February. It could do $30 million at retail in the U.S. in its ﬁ rst year on counter. For more, see page 4.

Moving Into Prestige: CVS Set to Roll Out Luxury Beauty Units By Molly Prior WOONSOCKET, R.I. — CVS Pharmacy is talking about a revolution. The growth-minded drugstore chain has drafted plans to open upscale beauty emporiums — about the size of a Sephora store — filled with previously untouchable department store brands. To drive home the drugstore chain’s seriousness about tackling prestige beauty, the concept will be called Beauty 360, with no mention of CVS in sight. The first concept store is slated to open by year’s end in a major East Coast city, Mike Bloom, CVS’ senior vice president of merchandising, told WWD exclusively. Another will open weeks later on the West Coast, he added. See CVS, Page 6 PHOTO BY JOHN AQUINO; STYLED BY DANILO MATZ DANILO JOHN AQUINO; STYLED BY PHOTO BY 2 WWD, FRIDAY, AUGUST 22, 2008 WWD.COM Gap Net Up Despite Comp Drop By David Moin WWDFRIDAY IN ITS SLOW AND LABORIOUS TURNAROUND EFFORTS, GAP INC. SHOWED PROGRESS ON Beauty Thursday, reporting second-quarter net earnings up 51 percent due to improved margins and wide BEAUTY cost reductions. CVS plans to open luxury beauty meccas fi lled Still, comparable-store sales dropped 10 percent, indicating the $16 billion San Francisco-based 1 chain continues to face serious issues with product acceptance, drawing customers into the stores, with previously untouchable brands. and operating locations that are too large for the offering. Space NK is looking to crank up its fragrance ▲ 5 For the quarter ended Aug. 2, Gap’s net earn- business with the fall introduction of fi ve ings were $229 million, or 32 cents a share on a namesake scents. diluted basis, compared with $152 million, or 19 cents, for the second quarter last year. The 8 Elan Sassoon, who has rarely handled scissors in 2007 second-quarter diluted earnings per share his 38 years, is grooming a hair empire in Boston. included 2 cents of expenses related to the com- GENERAL pany’s cost-reduction initiatives. Excluding the 2 cents a share of expenses, 2 Gap Inc. reported Thursday that second-quarter second-quarter diluted earnings per share last net earnings gained 51 percent while comparable- year on a non-Generally Accepted Accounting store sales dropped 10 percent. Principles basis were 21 cents. Maria Pinto, who dresses such prominent Chicago ▲ 11 Second-quarter net sales were $3.5 billion, women as Michelle Obama and Oprah Winfrey, compared with $3.69 billion in the year-ago period. opened her fi rst store in the Windy City this month. Gross margins rose to 38.2 percent from around 34 percent a year ago. In the call, executives said they 12 EYE: Elisabeth Shue discusses holding her own were pleased with current inventory levels. with comic Steve Coogan, making out with her Full-year earnings per share guidance has co-stars, her tennis addiction, and hew new been upped to $1.30 to $1.35, from $1.20 to $1.27. movie, “Hamlet 2.” Capital expenditures for the year are down to $450 million from $500 million. 13 A Q&A with Eric Daman, costume stylist for CW’s “External conditions aside, we continue to de- hit TV show, “Gossip Girl.” liver improved earnings with healthy margins and Classifi ed Advertisements...... 15 I am pleased with our second-quarter results,” TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS said Glenn Murphy, chairman and chief execu- [email protected], USING THE INDIVIDUAL’S NAME. tive offi cer of Gap. “While we continue to pursue WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 our 2008 fi nancial strategy, we are very focused FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. on bringing more customers into our stores.” VOLUME 196, NO. 40. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Downsizing will be signifi cant in the years one additional issue in January, October and December, two additional issues in March, April, May, June, August and November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division ahead. Murphy said the company plans a 10 to 15 of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services percent reduction of square footage over the next provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. three to fi ve years. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post “We have never had a clear real estate strat- Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. egy for our 3,100-plus stores,” involving what the Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B role is and the right size for each store, Murphy 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA said during a conference call. “That work is now 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please The environment is still write to WWD, P.O. 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Occasionally, we make our subscriber list available to carefully screened Old Navy, the most troubled division, an- reason for any optimism in companies that offer products and services that we believe would interest our readers. If you do not want to receive nounced top-level changes on Thursday, includ- 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 THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY ing the promotion of Tom Wyatt from interim the back half of the year. OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, president to president, and the departure of mer- ” PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, chandising executive vice president Sheryl Clark, — Glenn Murphy, Gap Inc. PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND which underscores the concern about product. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. The company is searching for a new top merchant and could select from the fi eld of candidates reviewed while considering who should run Old Navy. As an insider already running Old Navy since February, Wyatt was hardly a surprise choice. He joined Gap in 2006 and most recently ran the Gap’s outlet division. DAILY It’s actually the fi rst On the cost reduction side, Gap has been cutting back on everything from inventory to capital “ expenses for store openings and remodelings, to marketing. QUOTE time I’ve worn heels in, Murphy stressed the company won’t go back to historical levels of marketing spend until it gets the product, store presentations and messages right. Of the three retail divisions, Murphy said Gap like, fi ve months, so it feels a little is more advanced in that journey and closer to unleashing marketing that’s robust again. The division is doing more print advertising this year compared with last year. weird. But I love heels. Makes me feel a Murphy said that as the specialty retailer moves deeper into the second half, Gap remains focused on cost and inventory management and returning excess cash to shareholders. little more confi dent. “The environment is still challenging. I don’t see any reason for any optimism in the back half of ” the year,” Murphy said, adding the company is focused on four key pillars. Number one is driving — Gymnast/Olympic gold medalist Shawn Johnson, Page 12. improving margin dollars. Second is driving down costs. “The base inside the business was too high. More work needs to be done on reducing real dollar costs inside the company.” The third priority is improving the return on capital investment. TODAY ON The fourth component is reversing the traffi c trajectory. “Traffi c is unacceptable. The Gap has MOST VIEWED been on that trajectory for a number of years,” he admitted. • New McCartney... It’s even an issue at Banana Republic, which Murphy said has been pressured by the promo- WWD.COM Bendels Gossip... tional character of competitors. Armani Futbol Fashions... As far as merchandise and operating margins, there’s • Heist Alarm... Be, Jeweled... Tom Wyatt been good progress at the Gap and Banana Republic divi- Speedo Predicts... sions, but not Old Navy, Murphy said. • Stop ‘N Shop... Cheap and Contributing to the lack of traffi c generally, Murphy said Chic... Coke Goes Green... divisions have been out of stock at an unnecessary level. • One Side of the Story... “We have suffered from that, defi nitely at Old Navy and Maybe Fashion Will Help... to a smaller degree at the other two brands.” He also said A Barneys Tale... pricing has not been a core competency, so he sees room • For the Record... Luxury’s for improvement there. New World... Extreme The company has been successful in shortening the Makeover... product development cycle for Old Navy, enabling the division to bring in less inventory. Last year, designer and Amy Adams at the “Tropic MOST E-MAILED reality show celebrity Todd Oldham became Old Navy’s Thunder” premiere. • A Twist on Celebrity:

creative director. According to Murphy, October’s assort- STEVE GRANITZ/WIREIMAGE Kiehl’s Goes Green With ment will be “the fi rst shot of Todd’s involvement.” ▲ Featured Images Old Navy has refocused on women ages 25 to 35, on Brad Pitt Deal a budget and shopping for the family and herself. Gone • A longer Q&A with “Gossip Girl” • Saks Inc. Reports $31.7M Loss is the marketing that for years injected a quirky and fun costume stylist Eric Daman • Polo to Launch Mobile personality into the business and gave it some soul. But • More photos of Michele Obama Commerce • Steve & Barry’s Sold to Murphy said Old Navy will return to that. In addition, re- designer Maria Pinto’s Chicago store modeling will kick in again next year. The program at Old Bay Harbour Navy has been on hold, pending product improvements • Global Breaking News • Penney’s Profi ts Fall 35.7 and staff changes. • Vote for Fashion’s Defi ning Moments Percent \YVUcdi\UVQ]Y\i 0SeXbâb1TPdchBdaeTh 3__[YU B^daRT)! '

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QÛgQeTYU^SUYcQRUQedYVe\dXY^W 2^]cPRc2Pa^[h]:aT\X]bE??dQ[XbWTaPc! !!'%"'""âRPa^[h]NZaT\X]b/R^]ST]PbcR^\ 4 WWD, FRIDAY, AUGUST 22, 2008 The Beauty Report Burberry Marches to a New Beat By Julie Naughton universe, so they had to make sense together,” he said. “When we Behind the were designing, we kept both in mind. It actually made doing the BURBERRY THE BEAT FOR MEN, DUE OUT THIS FALL, scenes at the men’s version very easy — it felt effortless.” is aptly named — its chief inspiration, said Burberry’s ad shoot. It may be an unorthodox approach, but it’s working, said Don Christopher Bailey, was music. Loftus, president and ceo of P&G Prestige Products in the U.S. “I think there is so much crossing over between creative He added that the Burberry fragrances have “consistently been mediums,” said Bailey, Burberry’s creative director, in a recent top sellers” for P&G Prestige Products. “Some fashion houses phone interview. “Art, design, fashion, music — they all feed off run hot and cold, but Burberry’s on fi re,” Loftus said. “They each other and inspire each other. So I sat with the perfumers are particularly strong in men’s fragrances.” And he approves and gave them a ton of music. of the musical connection: “Both music and fragrance create a “I think it’s a bit lazy to say, ‘The guy is 18 to 25, lives in that mood and change your point of view, so we think it’s an innova- type of house…’ I don’t care how old or how young the guy is,” tive way to approach the development process,” added Loftus. continued Bailey. “It’s the attitude, and what taste the direction Bloomingdale’s will launch the fragrance in September and goes in. So the perfumers listened to the music as they were cre- it will be the retailer’s exclusive until February, when it will ating the fragrance, and they got it instantly.” begin rolling out to its full U.S. universe of 2,600 department What they got, Bailey said, was the sense of “being young and specialty store doors. “Bloomingdale’s has been a great and effortless” that he was after. partner both for us and for the fashion house, so it made sense “I wanted this fragrance to be about movement, energy — a to give them the exclusive,” Loftus said. younger, cooler, more urban Burberry,” he said. “I also wanted The range includes eaux de toilette in 1.7 oz. and 2.5 it to encompass fi lm and the arts. As a brand, Burberry has so oz. sizes, $55 and $65, respectively, which will be in store in many different facets — there’s the traditional historic side, September; a 3.4-oz. aftershave lotion coming in November, but also this incredible pop culture side. I love the historic $50; a 5-oz. Soothing After-Shave Balm, $46; a 5-oz. Energizing side, and I use it as my foundation — I love that base, some- Shower Gel, $32, and a 2.5-oz. deodorant stick, $26, all coming thing that’s familiar and stable. But on top of that, you have to in January. have a modernity, a modern relevance. And I didn’t want it to National print advertising, shot by David Sims, features a be too slick.” handful of Bailey’s favorite Brits — actor Alex Pettyfer, vocalist For the record, the playlist given to International Flavors & George Craig, musician-model Will Cameron, vocalist-guitar- Fragrances perfumers Olivier Polge and Domitille Bertier in- ist Kristian Walker and creative artist-talent manager Jonny cluded cuts from the Fratellis, Razorlight, Kasabian and Arctic Epstein. Stateside, it will break in The New York Times in Monkeys. They interpreted that into a fresh woody scent that is a mix of leatherwood, October, followed by December placements in men’s and lifestyle magazines. vetiver bourbon, cedrat, black pepper and violet leaves accord. “The Beat for Men is “I wanted real people doing real things, not just a bunch of models,” said Bailey, very modern, very urban and well connected to London rock ’n’ roll,” said Philippe adding that he knew all fi ve men from previous projects. “I didn’t want it to be just Bencin, chief executive offi cer of Inter Parfums Inc., which holds Burberry’s beauty about a handsome guy looking smolderingly into the camera. The ad image is so im- license. “The fragrance is fresh and woody with a citrus start that should appeal to a portant to show your point of view — I wanted to articulate the fragrance’s attitude younger audience.” with the visual. Together, they sum up the feeling that anything is possible.” In the end, said Bailey, “this fragrance was from the heart, just as the women’s was. While none of the executives would discuss sales projections, industry sources It wasn’t some big study. They wanted me to express the spirit of this person, which is estimate that Burberry the Beat for Men will do about $30 million at retail in the what I did.” Bailey had the men’s version in mind when he created Burberry the Beat U.S. in its fi rst year on counter. P&G Prestige Beauty is said to be spending about $15 for Women, released this past March. “I knew they would be living together in the same million on advertising and promotion for the fragrance in the U.S.

keting for Clinique. “Clinique The gwp, available with has always strived to bring fresh, purchases of $25 and up, in- Nordstrom, Trina Turk, Clinique Team Up for GWP new ideas to our consumers and cludes the Trina Turk bag, this season we looked to fashion Zero Gravity Repairwear Lift, NORDSTROM HAS DESIGNS ON Black, executive vice president our gwp customers,” said Black. for inspiration. Partnering with Rinse-Off Foaming Cleanser, Clinique, thanks to Trina Turk. and general merchandise man- “We looked at our gwp custom- two leaders in the fashion indus- a color compact with Colour The retailer has teamed up ager, Cosmetic Division, for er and our Nordstrom apparel try was the logical next step,” Surge Eye Shadow duo in with designer Trina Turk and Nordstrom. Turk will design a customer, and asked ourselves she said. “Trina Turk’s fresh and Beach Plum and Soft-Pressed Clinique to do a designer make- new bag each season. which designer would motivate chic style matches Clinique’s — Powder Blusher in New Clover, up bag for the cosmetics com- “We have a long-stand- her to shop. Trina Turk [ap- it was a natural match.” Long Last Glosswear in Bamboo pany’s gift-with-purchase offering, strong relationship with parel] has been so strong in our “This is our fi rst collabora- Pink, Lash Doubling Mascara ings. The initial partnership will Clinique, and we’re always look- stores, we thought she would tion of this type,” said Turk. in Black, Long Last Lipstick in last three seasons, said Laurie ing for ways to offer newness to be the perfect partner. And “We have a great relation- Twilight Nude and a lipstick Clinique has been very willing ship with Nordstrom, so were case with mirror. to go forward with a project happy to further that through The gwp will also be featured that’s new and different, which the Clinique gwp. Clinique and in a Nordstrom “lifestyle mail- has been great.” Trina Turk both have a clean er,” created by Clinique and in- The project — the fi rst for and modern image, so it seemed tended to resemble a magazine all parties involved — is the lat- like a good fi t.” editorial page, said Black. “It’s est idea for energizing the gwp The fi rst fruit of the relation- not just featuring the gwp, it’s category, which historically has ship will be a bag in a silver also giving our customers infor- been a trial for the cosmetics and white Tigress print, with a mation about trends and styles,” industry. Gwp promotions can bright yellow lining. It will be said Black. “Trina talks about generate as much as 65 percent on counter in all Nordstrom what her fashion focuses are, of some brands’ annual volume, doors from Nov. 5 to 18 (or which is a fresh approach for but sales have been lackluster while supplies last; all parties us. In-store, we will have two for the better part of a decade. involved declined comment on of our best visual locations set “The partnership has been the quantity being produced), up with photos from the mail- a collaborative effort between and will also be available on er, as well as the product, and Clinique, Nordstrom and Trina nordstrom.com. According to it will also be featured in our Turk,” noted Agnes Landau, se- Turk, the spring 2009 bag will November holiday catalogue.” nior vice president of global mar- be a multicolor fl oral. — J.N.

The ﬁ rst gift-with-purchase will be available in November.

31199Royal_Hugo.indd 1 8/19/08 6:08:40 PM WWD, FRIDAY, AUGUST 22, 2008 5 WWD.COM WWD.COM Space NK Revamps Fragrance Collection SPACE NK IS LOOKING TO CRANK UP out to make room for the fall arrivals. its fragrance business with the introduc- Fragrances only account for about 10 tion this fall of five namesake scents. percent of Space NK’s total sales, but The initiative will include the re- skin care generates the largest share, 40 launch of the U.K.-based retailer’s ex- percent, and color cosmetics makes up isting Laughter scent as well as the about 30 percent of the business. Hair launch of four new women’s fragrances, care and other categories make up the called Champaca, Jasamber, Tuberoli balance of revenues. and Santalrosa, which were inspired by The new iteration of the Laughter the travels of the fi rm’s founder, Nicky scent, which will be available in eau Kinnaird. de toilette and eau de parfum versions Laughter, a unisex scent originally priced at $80 and $95, respectively, has introduced in 1999, is being relaunched been repackaged in 50-ml. bottles de- in October to mark the 15th anniversary signed by Fabien Baron. The fragrance, of the beauty chain, which opened its which was originally blended by perfum- fi rst store in London’s Covent Garden in er Christopher Sheldrake, mixes top 1993. The four new scents will also bow notes of bergamot, grapefruit in October. and lime with juniper berry, “Laughter has been synonymous with angelica root, verbena, Space NK as a brand,” Kinnaird said rosemary, fennel and of the scent, which was inspired by the coriander and a base Belfast, Ireland-born retailer’s time of patchouli, amber, spent in Spain when she was growing up. musk and ginger. “It’s our iconic, signature fragrance.” Seven ancil- While Space NK has had previous lary products will private label fragrances, the fi ve scents accompany the for fall — and accompanying ancil- Laughter scents, Above: Space NK’s new fragrance collection. lary collections — are part of a new, including body Left: Nicky Kinnaird. “clean” focus by the chain, according to cream and lotion, Kinnaird. And by this she means free of hand wash and lo- parabens, sulfates, petrolatum, glycols, tion, shower gel, bath Tuberoli (tube- For holiday, an assortment of 17 gift mineral oil, silicones, synthetic colors oil and a candle. They rose and neroli), and sampler sets ($32 to $225) featur- and other chemical compounds. will be priced between takes its inspiration ing miniature versions of all fi ve scents, “We have had other private label $32 for the 300-ml. hand from Rome and its along with the ancillaries, will be intro- scents,” said Kinnaird, “but now the items and $65 for the 200-ml. white fl ower accords and duced in late October. focus is on clean products — particu- body cream and candle. notes of blackcurrant and Industry sources estimate the fra- larly with the clean formulations. That’s Baron also designed the packaging for peach were blended by Sheldrake. grance collections could combine to gen- where we want to go as a company.” the Champaca, Jasamber, Tuberoli and He also mixed Santalrosa (santal, or erate $5 million in fi rst-year retail sales For Kinnaird, private label is a way Santalrosa eaux de toilette, each of which sandalwood, and rose), which was in- volume. to “fi ll in the gaps” within the Space NK comes in a 50-ml. bottle priced at $70. spired by Hakone, Japan, in the foothills Initial plans call for the fragrances to product assortment, which comprises Champaca, which is named for the of Mount Fuji. Its fl oral top notes and be carried only at Space NK, which cur- between 60 and 65 brands. While she Asian fl ower, was inspired by Kinnaird’s woody heart are blended with a base of rently has 58 locations in the U.K. The wouldn’t discuss sales fi gures, about 15 travels to Rajasthan, India, and features heliotrope, vanilla and musk. chain also has four stores in the U.S.; percent of the chain’s total business, a spicy, fl oral, woody structure that was Each of the four new scents will be will open leased-space, in-store shops which could exceed $90 million by year- composed by perfumer Azzi Glasser. accompanied by a shower gel, body lo- at nine Bloomingdale’s locations begin- end, according to industry sources, is gen- Jasamber, a combination of the words tion, bath oil, a bath tablet set and votive ning in November, as reported, and an- erated by private label. Existing Space jasmine and amber, was inspired by candles. The ancillary lines are priced ticipates opening fi ve more stores in the NK scents, such as Compelling, Soulful, Lapland, in Finland, and has a citrus- between $28 for eight bath tablets and U.K. this fall. Enrapture and Seduction will be phased woody makeup constructed by Robertet. $70 for four votive candles. — Matthew W. Evans Perry Ellis Looks to Expand Fragrance Business in Department Stores PERRY ELLIS HAS EMBARKED ON A BID TO REESTAB- wholly owned subsidiary of Hollywood, Fla.-based Duty Free lish itself in the U.S. prestige fragrance market. Americas Inc. The group also owns the Christian Lacroix With the launch this summer of a new signature fashion house and the Urban Decay and Hard Candy cos- men’s scent at selected Macy’s stores, executives at Falic metics brands. Fashion Group LLC, the fragrance licensee for Perry Ellis Falic, who is aiming for eventual chainwide distribution International Inc., plan to establish a foothold in U.S. de- Perry Ellis’ of the fragrance at Macy’s, noted the scent is rolling out to partment stores and lay the groundwork for the introduction latest men’s Dillard’s this month. He said he believes it could reach a of new and existing Perry Ellis scents. scent. total of 1,500 department store doors. Indications are that the new scent has performed well While Falic declined to discuss numbers, industry sourc- so far, landing within the top 15 fragrances at 120 Macy’s es estimate the new Perry Ellis scent could generate roughly Central stores, according to Rachel Caldes, the chain’s as- $15 million in fi rst-year retail sales. sistant buyer for cosmetics. An advertising and promotional campaign is thought to be worth between $5 million and $10 million and the effort includes a 30-second TV spot for the scent that plays every The fi rst step is to go back into 15 minutes in New York’s Times Square. “ Perry Ellis, a sensual, woody eau de toilette, was de- department stores where the veloped by Mane and includes top notes of green apple, an ozone accord and bergamot; a heart of orange fl ower, [Perry Ellis] fashion is doing well. white lavender, rose, violet and cinnamon, and base notes ” of amber, black patchouli and warm woods. It comes in two — Jerome Falic, Falic Fashion Group sizes, 100-ml. for $60, and 50-ml. for $45. The scent’s heavy, linear glass bottle was created by design “We brought the [fragrance] in right around Father’s Day, fi rm QSLD and manufactured by Bormioli Rocco. Draped but the offi cial push was in mid-July,” she said, adding, “It over the front of the bottle, which features a wooden cap, is a came out of nowhere and really surprised us with what it woven fabric strap that contains a decorative eyelet. could do.” While the new signature scent is only carried in the U.S., She noted that the chain, which has been “tying [the Perry Ellis fragrances are “very geared toward” Hispanic con- scent] in to the resurgence of the [Perry Ellis] clothing line,” sumers, said Falic, who noted that the brand’s strongest fra- plans to roll out the Perry Ellis scent next month to nearly grance markets are currently Central and South America and all 238 Macy’s Central doors. Additionally, Macy’s stores in that he’s eyeing expansion into the Middle East and Asia. the Midwest have expressed interest in carrying the fra- Since 1985, some 31 Perry Ellis scents have been grance, according to Caldes. launched for men and women, including 360-degrees for

Perry Ellis is the fi rst scent developed by Falic Fashion JOHN AQUINO PHOTO BY men and women, 360-degrees Red for men and women and Group since the fi rm acquired the fragrance license from Perry Ellis 18 for men and women. “We would like to see Perry Ellis International for $63 million in January 2007. these back in department stores,” said Falic. (The license was formerly held by Parlux Fragrances Inc., which had sold it back to Falic added that future plans for the brand call for a new women’s scent to be Perry Ellis International in late 2006.) launched either late this year or in early 2009 and that the fi rm is eyeing celebrity “The fi rst step is to go back into department stores where the [Perry Ellis] fashion fragrance licensing ventures. is doing well,” said Jerome Falic, chief executive offi cer of Falic Fashion Group, a — M.W.E. 6 WWD, FRIDAY, AUGUST 22, 2008 The Beauty Report CVS to Open Luxury Beauty Stores Continued from page one executive offi cer Lyn Kirby told WWD in an interview last year that it took four Bloom would not elaborate on the rollout strategy, but sources briefed on the years for Ulta to begin to gain traction with prestige brands. initiative said the initial concept stores are planned for Washington, D.C., and Bath & Body Works is more of a cautionary tale. Empowered by then-ceo Neil Sacramento, Calif., and long-term plans call for 500 to 1,000 stores, with about 100 Fiske’s trademark trading up strategy, BBW began clearing room among its home- slated to open in the next year. grown brands for outside prestige offerings — including Korres, DDF and Peter CVS, which generates $85 billion in annual revenue, is closely guarding the brand Thomas Roth — only to largely retreat from the strategy last year. names in Beauty 360’s portfolio, but Gardner acknowledged there are 32 lines, ex- Still, there are plenty of success stories, including Shoppers Drug Mart, which now cluding fragrance, across skin care and cosmetics. CVS executives described the has more than 140 Beauty Boutiques; Ulta, which aims to grow to 1,000 doors over the lines as “department store or specialty store next decade, and Sephora, which has cement- brands,” and clarifi ed that at the moment, ed its positioning as the beauty authority. they do not include proprietary brands devel- Several beauty executives, speaking oped by prestige beauty fi rms for CVS, as the not for attribution, said in the past, brands Estée Lauder Cos.’ BeautyBank division has were apprehensive about participating in done for Kohl’s department stores. new beauty concepts, like Sephora or Ulta, “We’re very excited about the portfolio of for fear of retribution from Macy’s Inc. (for- brands we have,” said Gardner. “If you create merly Federated Department Stores). Now, the right environment, you can sell any brand.” the looming question has changed to, “How Bloom added, “We’ve allocated all the re- will Sephora react,” they said, particularly sources needed for this project.” because the French-based retailer owned A glance at the concept’s renderings — by LVMH Moët Hennessy Louis Vuitton can which call for brushed steel accents, white- give brands an international foothold. tiled fl oors and a wall of sea-foam-colored, Others suggested that Ulta has the most hand-cut glass tile — seems to indicate CVS to lose as CVS’ Beauty 360 concept grows, has invested heavily in paving the way for its because it overlaps the beauty retailer’s po- move upmarket. sitioning of one-stop shopping. The Beauty 360 units will range between When asked what CVS’ Beauty 360’s com- 2,500 and 4,000 square feet in size, and will petitive edge will be — particularly as Ulta, either be housed in an adjacent store, acces- Bluemercury, Space NK and Sephora contin- sible to CVS shoppers via a breezeway, or a ue to increase their U.S. footprints — Bloom separate store within a CVS store. declared, “Real estate. We have close to 7,000 CVS also is considering adding choices. Nobody else has that many.” CVS’ “express services,” such as mani- plan to buy Longs Drugs, announced last week, cures and hand massages, to the will bring its store count to about 6,800 units. model, said Mary Lou Gardner, adding What’s more, CVS has foot traffi c, and CVS’ senior category manager plenty of it. The drugstore has about four for beauty, who is leading the million customers a day, according to the Beauty 360 effort. Gardner company. Mahoney noted, “Sixty percent of is recruiting staff for Beauty the female population lives within 5 miles 360, and is seeking experi- of a CVS store.” She added, “One of the enced, but not high-pressure, things that has made CVS a success is lis- sales associates and licensed tening to our customers. She wants to shop aestheticians. The sales associ- beauty where she wants to shop. She’s buying mass ates will receive commissions, butup cosmetics and she’s also buying prestige.” sell across all brands, she said. Given there are CVS stores stationed at Cheryl Mahoney, CVS’ vice president of major intersections across the U.S., execu- merchandising for beauty, said, “Initially, we tives behind Beauty 360 are not spooked by will overstaff [the concept] to make sure we get a downtrodden economy potentially crimp- the service level right.” ing sales. Referring to the state of the U.S. CVS’ bold move is similar to a format by shopper, Bloom said, “She’s thinking about its northern neighbor, Shoppers Drug Mart. her shopping patterns differently, and going The eight-year-old Beauty Boutique stocks a to fewer stores.” But pharmacies remain on host of prestige brands, including Clinique, her short list, particularly if she can have Lancôme, Clarins and Christian Dior, in a a manicure or hand massage while she’s pristine, assisted-sell environment. there, added Gardner. CVS’ effort is a culmination of years of CVS has spent five years working to knocking on the gilded doors of prestige Renderings of CVS Pharmacy’s upcoming luxury beauty stores, called Beauty 360. steadily improve its beauty shopping ex- beauty fi rms. perience. Since 2003, it has outfi tted 545 Bloom noted the latest round of meetings took place over an 18-month stretch. stores with Healthy Skincare Centers stocked with European brands, inked ex- “Our team has been on the road pitching and selling this concept,” said Bloom, add- clusive distribution deals with Finnish beauty line Lumene and Boots of the U.K., ing, “But this was the fi rst time that the timing was perfect.” launched a chainwide marketing program called Reinventing Beauty and developed Referring to waning department store traffi c, store closures, emerging alterna- proprietary lines including Cristophe Beverly Hills hair care, Skin Effects by Dr. tive channels and a sour economy, he said, “It was the perfect storm.” Jeffrey Dover, and, most recently, 24.7 Skincare, a techie skin care range. Consumers may see gray when shopping for beauty products — democratically fi ll- All of those efforts have set the stage for Beauty 360, said executives. ing their makeup bags with items from Target, CVS and Neiman Marcus, for instance — “We think of it as the evolution of beauty. We believe we’ve always been a step but established, luxury beauty companies tend to see distribution in black and white. or two above everybody else in our class of trade,” said Bloom. “Beauty has always For instance, since arriving on U.S. soil in 1997, Sephora has worked to slowly dis- been part of our DNA so we spend a lot of time thinking about strategy.” mantle beauty’s long-standing distribution barriers, opening a passage in the wall for The team stressed that it will not shift resources away from mass market beauty specialty shops like Bluemercury and Space NK, and forging a relationship with emerg- to support Beauty 360, and suggested its current beauty brands stand to benefi t from ing brands that had slim prospects of gaining distribution in department stores. their upcoming neighbor. For its part, Ulta has spent the last eight years repositioning itself from a dis- Mahoney said, “Mass will win, because CVS customers shop across all channels count store to a purveyor of mass, salon and prestige brands. President and chief for beauty.”

SNIPPETS PERFUMANIA BUY: Fragrance manufacturer and distributor Model Reorg Inc., whose subsidiaries include distributor HELP WANTED: Macy’s is very serious about its dive into Quality Fragrance Group (formerly Quality King organics. Recently, an e-mail blast was sent out from Fragrances), manufacturer Five Star Fragrance Co. and manufacturer Pangea Organics (a brand to be sold in Macy’s retail unit Scents of Worth, has completed a merger with new organic sets this fall) citing that several Macy’s locations Perfumania Holdings Inc., which was formerly named are looking for an organic cosmetics beauty adviser. According E Com Ventures Inc. Shareholders of Model, which was to the e-mail, the candidate must possess “a commitment controlled by the family of Glenn and Stephen Nussdorf, to an organic lifestyle and environmental sustainability,” who is also a primary shareholder of Perfumania Holdings, in addition to selling and product training. The fi ve Macy’s received 5.9 million shares of Perfumania Holdings and locations rolling out the sets this fall are Macy’s at Herald warrants to acquire an additional 1.5 million shares at an A rendering of The Square in Manhattan; Macy’s at Philadelphia Center City; exercise price of $23.94. E Com announced in December Organic Pharmacy’s Macy’s in downtown Boston; Macy’s at Roosevelt Field in that it had entered a merger agreement with Model. fi rst U.S. store. Long Island, N.Y., and Macy’s at Paramus Garden State Plaza Additionally, Perfumania Holdings has secured a senior in New Jersey. Reports also were circulating that the other credit facility of up to $250 million from General Electric brands in the sets besides Pangea Organics could include Capital Corp. and a subordinated loan of $55 million from U.S. OPENING: British health and beauty brand and retailer The Burt’s Bees, Care by Stella McCartney, Farmaesthetics, Nvey Nussdorf family trusts, borrowings that are expected to Organic Pharmacy will open its fi rst Stateside store in Beverly Eco, Origins, Terre d’Oc and Organic Apoteke. fund the opening of new Perfumania retail stores. Hills in December. The 1,000-square-foot space will offer the WWD, FRIDAY, AUGUST 22, 2008 7

WWD.COM Ageless Fantasy Creators Strive for Youth in a Bottle By Kavita Daswani WHAT BEGAN AS A SEMISERIOUS IDEA BY TWO college students has turned into an in-demand fragrance with a unique backstory, and plans for a full body line. Called Ageless Fantasy, the scent is billed by its creators as “the world’s fi rst antiage perfume.” While there is nothing in the fragrance that can physically turn back the clock, it was developed on the principle that if a particular scent made a woman smell as if she were of a certain age, then other fragrances could do the reverse. The hair color aisle inside a Target store. “We worked along the lines of, if you took a rose fragrance and went to a hundred men and asked them what comes to mind when they smell it, more likely than not the answer is, ‘old lady,’” said Kumar Ramani, president of New York-based Harvey Economic Woes Crimp B-t-s Prince, maker of Ageless Fantasy. “So we fi gured that if a rose reminds you of someone old, and that NEW YORK — Nine-year-old Lauren Manko of Montgomery Township, N.J., is a serious back-to-school shopper. scent is all about memory and triggers, what re- She has a huge wish list from her favorite stores, such as Limited Too and Bath & Body Works. minds you of youth?” But her mom, who will lose her job in September, put restrictions on her habits this year. A few cloth- Ramani began considering this notion after his two ing items from Limited Too, but the rest from Wal-Mart. Bath and body potions from discount retailer Five sons, Raj and Shaan, both math majors at Princeton Below and a couple of makeup products from Rite Aid. Her mom even hopes to ravage Lauren’s older and Harvard, respectively, at the time and now work- brother or sister’s stash of notebooks to use for supplies. ing with hedge funds in Chicago, came to him with The Mankos are not alone in their quest to slice b-t-s shopping this year. The the idea. The boys were inspired after a school event economy has many consumers looking in their closets for outfi ts, trading down to where their mother was mistaken for their sister. budget shopping channels and basically looking to save. A national survey from “My sons told me, ‘If she looks young and dresses Deloitte found that 71 percent of families plan to spend less this year. And 90 young, and talks young, maybe she can smell young,’” percent said they’d change the way they shop, opting for more dollar stores. recalled Ramani. They decided to try and create a Worse, is that b-t-s is often a barometer for the holiday selling season. Mark critical Mother’s Day gift for her, beginning by studying the Griffi n, the chief executive offi cer of Lewis Drug, said the b-t-s season “launches writings of Chandler Burr, author and scent critic for the rest of the year and the holidays.” Indications are that this season won’t by The New York Times, and Alan Hirsch, a Chicago- make the grade. mass based neurologist and psychiatrist who has written nu- The National Retail Federation predicts spending for b-t-s and back-to-college Faye Brookman merous books about the sense of smell. will rise a modest 2.5 percent this year to $51 billion. According to research fi rm “For the point of arriving at this fragrance, we had to WSL Strategic Retail, people are altering habits. In its Pulse study, 73 percent of negate the body odor that comes with age,” said Ramani, those surveyed said they are more careful about shopping than a year ago and 56 percent adding that it was not enough to simply mask the smells even said they are proud of ways they’ve found to save money. What’s more, 63 percent said they avoid some of aging. “There are many fragranc- stores so they won’t spend more money. The big question is, now that shoppers have traded down, will they es that are sophisticated and clas- stay there even as the economy brightens? sic, which men tend to associate That scenario actually has a silver lining for mass merchants which — if they can impress when shoppers with their mothers. Our goal was to have to be in their stores — will win consumers over even when they can opt for more upscale venues. fi nd a fragrance that they would as- Wal-Mart appears to be benefi tting the most from the shopper shuffl e. “Wal-Mart is exceptionally well posi- sociate with youth.” tioned for growth,” said Thom Blischok, president of IRI Innovation and Consulting. According to Information Ramani hired fragrance maker Resources Inc.’s MarketInsight, Wal-Mart is posting share gains in 84 percent of the top 100 consumer product Ungerer & Company to create the goods categories. It has gained more than perfume, which comprises youth- two percentage points of the hair color cat- ful and playful tropical top notes, From dining at home with friends to egory as an example of its growth in beauty. such as mango and pineapple, and “ While Wal-Mart had watched some of includes other essences, including in-home beauty treatments, consumers its shoppers migrate to the “cooler” Target jasmine, cherry blossom and musk. over the past few years, Wal-Mart is get- The product, which retails for are fi nding a more economical way to ting them back with its price positioning, $120 for a 100-ml. bottle of eau de causing Target to try to tout its prices, too. toilette, is pale pink in color and continue their routines. Drugstores also hope to fi nd some shop- comes in a transparent column- ” pers putting some of their b-t-s dollars in shaped bottle with white pack- — Thom Blischok, IRI Innovation and Consulting their coffers. aging. It is currently in niche, Rite Aid published a list of items it is offering as a lure to customers, who could also buy beauty while upscale apothecary-style environ- picking up notebooks. Ulta is promoting a buy one, get one free deal on select items. Lewis Drug has more ments, such as Clyde’s Pharmacy promotional tables available for merchandising impulse items. Walgreens is staging Saturdays with beauty in New York, and White’s in East advisers, who provide consultations and samples. Hampton, N.Y. Ramani also is The migration to more mass stores might prove to be a boost to cosmetics departments, experts said. shipping to Harvey Nichols in “The economy is driving new rituals,” said Blischok. “From dining at home with friends to in-home beauty Hong Kong and high-end stores in treatments, consumers are fi nding a more economical way to continue their routines.” Dubai. He is now working on pro- Retailers cited examples, such as the success of Clairol’s Perfect 10 hair color, artifi cial nails and mass mar- totypes for hand and body creams, ket mineral cosmetics formulas. “Consumers are switching to less expensive brands,” confi rmed Blischok. as well as an alcohol-free hair Ageless WSL also sees opportunities in the current climate. According to the company, retailers need to stress spray, all of which he says will Fantasy service, while offering surprises such as manicure or eyebrow shaping, and products that are typically un- have the same youth-reminiscent expected in mass stores. ingredients as the fragrance.

brand’s full lineup of organic skin care and cosmetics products, product include Natalie Coughlin, Nastia Liukin and Shalane NATURAL EXPANSION: Skin care line Clark’s Botanicals as well as treatments and homeopathic remedies from its Flanagan. Physicians Formula, which markets more than 40 has expanded its distribution with a launch this month dispensary. Margo Marrone, who, with her husband, Francesco, bronzers, claims to be the fi rst mass market brand to have at fi ve Saks Fifth Avenue stores — in New York; Phoenix; opened the brand’s fi rst store on London’s Kings Road in 2002, introduced bronzers and to hold the number-one market share Palm Beach Gardens, Fla.; South Coast Plaza in Costa said she’s eyeing an opening in New York for next year and is in the category. Mesa, Calif., and Beverly Hills, in addition to saks.com. studying other markets, including Japan. The fi rm has four The brand also is available at C.O. Bigelow and Studio doors in London, and plans to open another later this year in THERATIVE MOVE: Sandra Lawrence has been named president Fred Segal. With prices ranging from $19 for the Ultra the city’s fi nancial district. According to industry sources, The and chief executive offi cer of Therative, the Livermore, Calif.- Lip Balm to $155 for the Nourishing Youth Serum, the Organic Pharmacy generates annual turnover in the region of based marketer of acne device ThermaClear and associated eight-item brand also will add Cellular Lifting Serum, 5 million pounds, or $9.3 million at current exchange. Those gels, cleansers and pads. Lawrence, who was most recently an exclusive to Saks launching this fall. The serum sources estimate that the Los Angeles space could ring up fi rst- president of the home robot division of iRobot Corp. and uses apple-derived stem cells said to give instant lifting year sales of 1 million pounds, or $1.9 million. held various positions at Johnson & Johnson, Polaroid and effects. Along with the launch, Clark’s founder, Francesco Gillette, replaces Therative founder and former ceo Peter Clark, is working on a book, slated to be released in BRONZER FOR BRONZE: To show its support for female Scocimara. Scocimara has moved into the chief operating and January 2010 (Hyperion), about his life dealing with a Olympians from the U.S. and Canada in this year’s Beijing fi nancial offi cer role. Therative, which was founded in 2005, spinal cord injury and the creation of the company. Clark Games, Physicians Formula will send all female bronze has received funding from Bessemer Venture Partners, RWI was recently appointed ambassador to the Christopher and medalists from the two countries a lifetime supply of Ventures and Band of Angels. ThermaClear sells for $149.95 Dana Reeve Foundation and received the Indy Award at bronzers. Some of the athletes who already have been sent at Sephora.com. the most recent Cosmetic Executive Women Awards. 8 WWD, FRIDAY, AUGUST 22, 2008

The HBA Report WWD.COM Sassoon: The Next Generation By Katherine Bowers ion and culture of the last century. The Academy for Hair “Architecture students learn BOSTON — Elan Sassoon, who has rare- and Skin By Elan Sassoon who Le Corbusier is,” he points ly handled scissors in his 38 years, is will open in 2009 near out. “Students will graduate from grooming a hair empire. Boston University. our school knowing about fashion Since moving to Boston in 2006, and knowing who the greats are — Sassoon (the son of hairdressing great my father, [British stylist] Trevor Vidal) assembled a team of investors Sorbie, [Bumble and bumble found- to back three enterprises: a high-end er] Michael Gordon.” salon concept called Mizu, which will Sassoon envisions seven schools open in Boston and New York this fall; in the U.S. opening over the next a $22 million hair academy located decade. In late July, he traveled to near Boston University, and a chain Los Angeles to scout locations. of upscale suburban spa/salons called Before the school opens, Sassoon Green Tangerine. Three locations, each will christen two Mizu (Japanese for producing annual sales of about $2 mil- “water”) salons. The fi rst will open lion, have already opened in Greater next month in the new $260 million Boston and Connecticut. Mandarin Oriental Boston, a luxury His laid-back California drawl is at hotel and residence complex. odds with the scope of his ambition — Sassoon describes the salon’s all- which is to create a business model like white interior, designed by British that of Regis Corp., which has 13,400 sa- architect Niall McLaughlin, with an- lons globally. gled buttresses soaring to the ceil- “I see a higher-end version of what ing, as a “hair cathedral.” Haircuts Regis has done, with our own salons, start at $125. Upon arrival, clients schools and a professional product are given a basket of products, which line,” said Sassoon, who grew up one will be used on them and which they of four children in Beverly Hills, liv- take home after service. ing next door to Jacob Dylan and tag- “Hairdressers are not al- ging along to Sammy Davis Jr.’s house ways good about talking with his father as a kid. His résumé runs from produc- out resident students, The Academy product with clients,” says ing movies to running Georgette Klinger medi-spas in for Hair and Skin by Elan Sassoon Barsamian, noting the gift Miami. What it doesn’t include is stylist credentials. will have sleek, fully furnished dorm basket naturally opens “Well, I can say I have cut hair,” laughed Sassoon. “I rooms on the upper fl oors of a fi ve-sto- the conversation. can’t say I’ve done it well.” ry building. Below will be a 200-seat Elan There are also “but- Sassoon’s co-partner and main investor is Michael auditorium, dining hall and practi- Sassoon ler” services offered at Barsamian, a Boston stylist who built his own chain, cal labs. Construction is set to start Mizu — iPods custom- Lord’s & Lady’s Hair Salons, over three decades. The in September. Students won’t arrive ized with preferred two were introduced by one of the elder Sassoon’s best until spring 2009, but a team from music, for example, and friends. the Bravo network caught wind of the Myvu laptop screens so a “He said, ‘Mike I want you to meet Vidal’s son’ and I project and pitched Sassoon on a show client can watch whatev- said ‘For what?’” Barsamian recalled. “Then I met him called “Hair Apparent” to chronicle the er TV or movie she wants and realized he’s got the charisma and the contacts. school dramas of aspiring stylists. Will while her color processes. It’s been a great marriage. I do more of the business he do it? The New York Mizu opens and he brings people to the table.” “I don’t know,” Sassoon said. “I think in Manhattan in October, at 505 Barsamian secured the Mizu location in the new [reality shows] can be cheesy.” Park Avenue. Mandarin Oriental Boston; Sassoon netted the New Sassoon has also developed a keratin-based And then — if the Mizu salons, the York space and lured the creative talent that will be shampoo line, which he unveiled this summer at product line, textbook and school weren’t leaving a major Manhattan salon in the fall. Cosmoprof and which will retail through specialty sa- enough — Sassoon and Barsamian’s contemporary spa/ “I think we’ll be profi table in about eight to 10 lons and be used in his school. A shampoo will retail salon chain Green Tangerine is growing nicely. The months on both stores,” Sassoon said. “I think we’ll be for $24; the name is under wraps until the trademark is fourth location, a 4,000-square-foot space with Philippe doing $100,000 a week in Boston and about $150,000 a fi nalized. (Because of a settlement between his father Starke mirrors and other contemporary touches, will week in New York.” and Procter & Gamble, which owns the rights to “Vidal open in September at the new lifestyle center Patriot When asked what his scissor-wiz father thinks about Sassoon,” use of the family surname gets tricky.) Place in Foxborough, Mass. everything in the works, Sassoon replied, “He thought For skin products used at the school, he said he’s ne- “We’ve done really well staffi ng those salons be- it was wonderful. He kept asking me about the dorms gotiating with two vendors for an exclusive placement. cause we found a lot of great stylists working on at the hair school and saying ‘Where did you come up Sassoon has also commissioned a textbook. Hair Newbury Street, but living in the suburbs,” he said. with that idea?’” curriculum in most schools is outmoded, he says, pay- “We’ve gotten a lot of great people who are happy not Unlike many U.S. hair schools, which operate with- ing little attention to the revolutionary changes in fash- to commute anymore.”

companies under the Extracts banner The Pacifi ca and Zents booths at Extracts. over the course of the year and are already working with the companies so that beauty will have a critical mass within Extracts,” said Engongoro. Although show managers have seen a big focus on organic and natural products, this year the focus was not just on product ingredients but packaging, as well. “We’ve seen more innovative thinking in terms of eco-friendly and organic packaging, in addition to companies looking for more offi cial authentication in terms of recognizable organic stan- dards,” said Engongoro. For example, Pharmacopia is re- formulating its entire product lineup in an effort to receive the U.K. Soil Association stamp. At this year’s Extracts Best Products Extracts Strengthening Union With Gift Fair contest, winners were selected in six categories. Australian-based company Sohum took home the Best of Show FOR A SECOND SEASON, EXTRACTS Although the show was able to at- from fashion accessories to linens and prize for its Royale Collection of new returned to the Jacob K. Javits Convention tract a core audience of 6,000 spa, salon giftware,” said Melissa Engongoro, sales fragrances. Es’Scents International Center to coincide with the New York and specialty retailers, due to the adja- manager for Extracts. won the Bath & Body award, while International Gift Fair. Show managers cency with the gift fair, exhibitors were Long-term strategic initiatives for the What’s Hot fi nished fi rst in the Beauty felt that the synergy between the beauty exposed to some 30,000 additional gift, show include bringing in new beauty Accessory category. Mommy Makeup and wellness trade show and NYIGF home and lifestyle retailers. brands from NYIGF to Extracts. Some took home the Cosmetic & Fragrance worked better than when it was previ- “We wanted to help maintain a depth of the larger beauty brands that they award for a second time. Erbaviva won ously held at the Metropolitan Pavilion. of personal products under the Extracts are looking to have include Crabtree & the best Natural/Organic category, while The fi ve-day show, which kicked off brand, but put it alongside a larger mar- Evelyn, Lollia and Fruits & Passion. Poo-Pourri was honored in Packaging. Sunday, featured about 100 companies. ketplace with complementary products “We’re looking to bring all the beauty — Michelle Edgar THE FASHION ISSUE Issue date: Sept. 29 Close: Sept. 2 PHOTOS BY GIOVANNI GIANNONI, DELPHINE ACHARD AND DOMINIQUE MAITRE DOMINIQUE AND ACHARD DELPHINE GIANNONI, GIOVANNI BY PHOTOS

For more information on advertising in WWDScoop, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD sales representative. 10 WWD, FRIDAY, AUGUST 22, 2008 WWD.COM Paul Starr Remembered Ann Taylor Loft and P&G By Julie Naughton and Marcy Medina personality he had in his chair and make them the best they could be, and he was al- Put Fresh Spin on Laundry THE DISCOVERY OF CELEBRITY MAKEUP ways really proud of that.” artist Paul Starr’s body Tuesday in his Los Bennett added that Starr wasn’t afraid to By David Moin Angeles home shocked and saddened his many take risks in his career. “He wasn’t like a lot An ad from the collaborators and celebrity clients. of other makeup artists that have very defi ned DOING YOUR LAUNDRY ISN’T collaboration. As of press time Thursday, the cause of style. If you look at his collection of clients, exactly fashionable. death for Starr, 48, had not been released. he has the very beautiful clients and then he But, in an unusual collabo- An autopsy is pending. A memorial service also had a collection of the young, upcoming ration, Procter & Gamble Co. will be held on Saturday, Aug.23 at 3 p.m. at stars who were always excited to take risks. has hooked up with Ann Taylor Smashbox Studios in Los Angeles. He worked a lot with Lindsay Lohan, for ex- Loft to promote the new Tide “Paul Starr was my best friend,” said ample, and he liked working for her because and Downy Total Care lines. Rosanna Arquette, who found his body she loved to really go for it. At the same time, Fashion retailers seek to ap- Tuesday morning. “He was a beautiful spirit. he worked with Jennifer Garner, and he was peal to the lifestyle activities Passionate, brilliant, so creative and loving, always about making her as beautiful as pos- of their customers, but doing the heart of a spiritual being. He loved music sible….He could really do it all. He wasn’t fo- the laundry isn’t generally — we shared that together. Radiohead was cused solely on fi lm or solely on editorial or one of them. “This is unprec- our favorite. We knew each other’s secrets. solely on shows, he really did everything.” edented. We’ve never teamed He kept a lot of secrets for all his girlfriends. He was also very serious about his art- detergent with fashion,” said He would call me at 7 a.m. most mornings. He istry, said Bennett. “We had a long talk one Kash Shaikh, infl uencer mar- was smart, was always reading great books. day about his generation of makeup artists keting manager at P&G, who We would spend holidays together when we versus the younger generation. What’s hap- leads the consumer product could in Big Sur. He was an amazing artist, pening with everybody in media, includ- giant’s external partnerships, a hippie at heart and could play guitar and ing celebrities, is that the younger crowd endorsements and strategy for really could sing and loved making women is developing quickly and they are more all fabric care products. beautiful. He loved his girls — he was so media-savvy and becoming friends with ce- P&G and Loft believe that proud of them all. There will never washing clothes, rather than be anyone to replace Paul Starr, in spending more on dry clean- the world or in my heart. When we Rosanna Arquette and Paul Starr ing, and preserving the life found him, he had a smile on his of clothes to avoid replacing face — he looked like a beautiful them as often, are powerful messages, particularly in recessionary times. “The sculpture, holy light and happy he average American woman spends $1,500 a year on dry cleaning, but a signifi - is free. I will miss him every day.” cant amount of that is spent on clothes that could be washed,” Shaikh said. “Paul was so beautiful,” said The campaign message centers on telling women that two-thirds of the Anjelica Huston. “When he would items in the Loft collection are washable, and that Total Care Tide and Total do my makeup, I always wondered Care Downy help the clothes hold up. According to P&G, Total Care has a why he wasn’t the one being pho- “protective fi ber complex” that reduces fi ber abrasion and neutralizes chlo- tographed. He had the best taste rine in wash water to help maintain the color, shape and texture of clothes. in the world — he turned me onto P&G dipped into the silicone technology of its beauty care brands, specifi cally the great singer Cesária Evora and the Pantene hair care line, to create Total Care. “We’ve been working on this to Robert Plant and Alison Krauss’ formulation for over fi ve years,” Shaikh said. “We found that hair follicles are CD, ‘Raising Sand.’ He was ver- similar to fi bers in your clothing.” satile, sweet, funny, a wonderful According to P&G, Tide is a $3.5 billion brand, owns a 40 percent market man and a truly great friend.” share and is in 40 million homes. The $1 billion Downy fabric softener is also “Paul was, literally, one of the a market leader, found in 30 million homes. The Total Care line is an extension shining stars in beauty, a talented of the core brands. makeup artist who loved the arti- “Total Care is the biggest launch in the history of fabric care at P&G,” fi ce and hassle of achieving looks Shaikh said, noting that $60 million alone is being spent on marketing and ad- that at times only otherwise ex- vertising on TV, in print, online and for special events. About 10 to 15 percent isted in a fertile imagination,” of the marketing spend is earmarked for the Loft partnership. said Rose Apodaca, WWD’s for- Ads showing the cobranding of Loft with Tide and Downy Total Care will mer Los Angeles bureau chief and be in October, November and December issues of Cosmopolitan, Harper’s presently a journalist and the co- Bazaar, Marie Claire, Vogue, Elle, In Style, People, Good Housekeeping and owner of A+R, a design retail lab Martha Stewart Living, to name a few. “We’ll be in a slew of beauty books, in in Los Angeles. “We’d met through books that Tide and Downy have customarily never been in before. As we try the biz, but fi nally began spend- to elevate fabric care to fashion care, we think it’s very relevant to the reader- ing some quiet time together last ship of these fashion beauty magazines,” Shaikh said. year, when I asked him to contrib- The product has started to be sold and will be available nationally by the ute not just a sidebar, but all of end of this month. The Loft partnership kicks off Sept. 9 in almost all of the the makeup advice in the beauty 500 units operated by the chain. chapter for Rachel Zoe’s style Asked why P&G chose Loft for the campaign, Shaikh replied: “It al- guide [“Style A to Zoe,” by Rachel ways starts with our consumer. We researched where they are buying their Zoe and Rose Apodaca, Grand JOHN SHEARER/WIREIMAGE PHOTO BY clothes….Ann Taylor Loft was consistently at the top of their list, for value Central Publishing, 2007]. He was and fashion.” P&G surveyed 1,400 women across the country and different articulate and heartfelt about how every lebrities. He said, ‘In my generation, it was demographics, 25 to 60 years old, Shaikh said. woman and man should be able to realize really about the artistry. You learn from the The washability factor was critical, too, with Loft stating that a much high- their best self. He was absolutely glamorous masters and you study the history of makeup er percentage of its collection is washable compared with the competition, the way a rock star is, but completely down- artistry and pay your dues.’ such as Talbots. to-earth. We talked about doing something “I think that is the thing that really makes more, another book.” him such a legend and has given him staying “It’s a sad day for many, many people power. He really did pay his dues.” whose lives he’s touched,” said actress In addition to his extensive celebrity, edi- This is unprecedented. We’ve never teamed Michelle Monaghan, one of Starr’s many torial and runway work, Starr was also the au- “ high-profi le clients. His extensive celebrity thor of “Paul Starr on Beauty: Conversations detergent with fashion. client list also included Jennifer Garner, Joni With Thirty Celebrated Women,” (DK Melcher —” Kash Shaikh, Procter & Gamble Co. Mitchell, Hilary Swank and many others. Media, 2005) and was the founding beauty ed- “Paul was such a good friend to both Dean itor of Flaunt Magazine, serving in that role and I,” said Davis Factor, chief creative of- from 1998 to 2001. While there, Starr enlarged Shaikh also said the $1 billion, 500-unit Loft was big enough to provide a ficer of Smashbox Cosmetics & Studios, his scope to include photo production, art di- stage for the campaign. Photogenics, and a celebrity photographer. rection, interviewing and coordinating month- The Loft stores will be distributing sample sachets of the two products as “He was instrumental in the early develop- ly pages, which ranged from male grooming gifts-with-purchase, and a cobranded eight-page Loft magazine with prod- ment of Smashbox Cosmetics, and he was editorial to conversations with personalities ucts, styling tips and fashion trends. In addition, the Total Care logo will be on the very fi rst name on our roster when we as diverse as makeup artist Shu Uemura, and hanger tags and mirror decals at Loft. opened Photogenics [an agency representing “Hedwig and the Angry Inch” creator John So as not to look like Loft is turning into a convenience store, “Total Care hair and makeup artists, stylists and photog- Cameron Mitchell. Starr also established the will be woven into the Loft environment in an elegant manner. We don’t want raphers]. He was a great makeup artist and Estée Lauder brand’s fi rst national makeup to slap consumers in the face with it,” Shaikh noted. “Senior merchants in a great teacher.” artist team in 2003. Starr counted legendary marketing, merchandising, strategy, visual, corporate communications and “His legacy is really about recognizing the makeup artist Way Bandy as one of his inspi- store and online channels have all been actively involved in bringing this to real person who is in the chair,” said Ben rations: “He was the fi rst superstar makeup life,” said Diane Holtz, executive vice president of Loft. Bennett, founder of Web site We Love Beauty, artist, the fi rst one to have his name above The P&G-Loft exclusive collaboration is set through the end of the year, to which Starr was a regular contributor. “If the title, so to speak,” Starr wrote on his Web with the possibility of an extension. It’s also possible that P&G will involve you talk to some of his clients, they will tell site. “He was also the fi rst makeup artist who other retailers next year. you the same thing. He always loved hav- made me think, God, I’d love to do this, this Loft also will be holding Total Care events in different locations, starting ing very real conversations with them that actually seems like a real job….Max Factor with the Times Square fl agship in Manhattan, which will feature celebrity weren’t about the movie they were working planted the seed in my subconscious, but Way stylist Jorge Ramon, who has been recruited for the campaign. “We are com- on or about their endorsements. It was about Bandy was my biggest mentor.” mitted to moving outside the laundry room and into the life of our target cus- their family and their backgrounds. He was — With contributions from tomer. It’s a whole different vocabulary and voice we are bringing to Tide and able to really enhance the woman and the Kim Friday and Rachel Brown Downy,” Shaikh said. WWD, FRIDAY, AUGUST 22, 2008 11 WWD.COM Pinto Rises Dressing Chicago’s Power Women Online Retailer Revolve By Beth Wilson Opens First Unit in L.A. IN MALCOLM GLADWELL’S BOOK “THE By Anne Riley-Katz Tipping Point,” the author talks of how small events combine to trigger big change. LOS ANGELES — Revolve is turning a corner. Chicago designer Maria Pinto knows this The Cerritos, Calif.-based online retailer will open premise firsthand. a 2,500-square-foot, gallery-style store on Saturday, After rebounding from an illness that left Revolve’s fi rst retail location since the company started her bedridden for six months, a case of em- more than fi ve years ago. ployee embezzlement and fi ling for bankrupt- The minimalist space, once a hair salon, will display cy, Pinto rebuilt her design business piece by art pieces along the walls — all for sale. The current piece and client by client until forces began installment is a series of square graphic-style paintings to shift. by artist MWM. Now, she’s the favored de- Michael Mente and Mike Karanikolas founded the signer of Michelle Obama (who Revolve online store in 2003; Los Angeles and sur- Vanity Fair nicknamed “our rounding cities account for about 8 percent of total Commander in Sheath”) — sales, with 80 percent of revenues coming from the U.S. dressing the potential fi rst and 20 percent from abroad. Mente is projecting a 25 lady and her two daughters percent increase in sales this coming year. for everything from the day “We could not sell one item in the store and we’d Barack Obama launched Emmanuel still be in good shape fi nancially, this is more to show his presidential campaign Nony and SCOTT OLSON/GETTYPHOTO BY IMAGES the world physically who we are,” said Mente. “We like Maria Pinto. to the night she famously Michelle Obama in a purple Maria Pinto silk sheath dress on the clean, minimal aesthetic. The idea is to keep the knuckle-bumped him clad the night her husband launched his presidential campaign. spotlight on the clothes.” in a purple Pinto silk sheath Revolve is on a popular stretch of Melrose Avenue dress and Azzedine Alaïa appreciation for everything that’s happening.” that’s home to Theory, Nanette Lepore, and soon Vera belt as he claimed the In the store, which has gray bamboo fl oors, crys- Wang, though the company came very close to opening Democratic nomination. tal chandeliers and curvy upholstered chairs, prices a brick-and-mortar location about three years ago on Pinto plans to capi- begin at about $300 for simple silk tops, scarves and the boutique-rich stretch of Los Angeles’ Third Avenue. talize on the moment, For more images, wraps, with trousers starting at $500 and jackets at Mente said it made more sense to wait until business opening her fi rst retail see WWD.com. $750 with dresses running from $1,200 to $5,000 for a was strong enough that the store could host events and store in Chicago’s West hand-beaded evening gown. She expects to generate parties and function as a showpiece for the contem- Loop neighborhood earlier this month, providing designs $2 million in volume the fi rst year. porary collections it carries. Collections the fi rm sells not only for Obama but another prominent Chicagoan, It’s no doubt been a winding road for Pinto. The include L.A.M.B., Citizens of Humanity and Abaeté. Oprah Winfrey. graduate of the School of the Art Institute and one- Revolve has a fi ve-year lease on the Melrose Avenue “It’s like ‘The Tipping Point,’” Pinto said. “There’s time assistant to Geoffrey Beene initially launched her space, with a fi ve-year extension clause. a moment when things start to move and we’re in the business in 1991, specializing in eveningwear and ac- The shop will carry about 10 percent of the 500-plus moment. It’s 16 years of working in this business, it’s cessories, some of which were picked up by Bergdorf brands available on the RevolveClothing.com Web site, getting sick, it’s the embezzlement, the bankruptcy. It’s Goodman. Then a combination of factors, including offerings that will change every few weeks to keep in Barneys and Saks buying pieces. It’s all those things Sept. 11 and an employee embezzling $300,000, forced step with customer buying habits and new arrivals. coming together.” Pinto to fi le for bankruptcy and shutter her roughly “It’s a little like curating a collection in an art gallery,” Pinto, who’s known for her eye-catching evenin- 10-year-old business in 2002. Mente said. gwear and artistic wraps which have been sold at During that time, she was bedridden for six months The site’s new “try-on” feature will allow local shop- Barneys New York and Saks Fifth Avenue, said opening with peritonitis due to a surgical error, but was deter- pers to request an online item be sent from the Cerritos her 2,100-square-foot store at 133 North Jefferson Street mined to come back. Pinto relaunched the business in warehouse to the store to sample the fi t and style. represents a pivotal point in her comeback. 2004, the same year she met Obama, whose husband The shop, like the site, will continue to work Windy City partygoers seem to agree. They num- was running for the Senate. Now Pinto says Obama, with celebrity stylists such as Nicole Chavez and bered in the hundreds, spilling out onto the street as who has helped build the brand, is just like any other Eric Damon. Actress Scarlett Johansson wore two Pinto’s store opening party earlier this month proved client — almost. dresses from Revolve.com for recent “Vicky Cristina too crowded for some of the well-heeled set. Obama was “She’s like an average customer,” Pinto said. “She’ll say, Barcelona” press interviews, but courting celebrity not in attendance. She was said to be vacationing with ‘Oh, I like that dress.’ She’ll buy one piece or several.” clientele, Mente said, is not Revolve’s goal. her family in Hawaii. And while Pinto is quick to point out that she’s not “Other people have built their business around Pinto, meanwhile, in a white strapless dress trimmed Obama’s stylist, nor does she dress Obama for specifi c celebrity following and that’s great, but us trying to with feathers, relished the moment. events, designing an inaugural gown would be different. do the same thing wouldn’t make sense,” he said. “We “I didn’t know how it was going to unfold, but I knew I “She [Michelle] referred to it, saying, ‘Make sure Maria welcome that element, and will service it as best we would be back,” she said. “Those are things that formed gets that dress designed,’ but we’re not going to talk about can, but we’re certainly not building our business me. I think because of those experiences I have a greater it yet,” Pinto said. “We don’t want to jinx anything.” around it.” Aéropostale Profi t Surges, Pacifi c Sunwear Reverses Loss By Alexandra Steigrad and Vicki M. Young Ed Thomas, ceo, said ongoing cost and inventory management initiatives helped the fi rm generate operat- A CONTINUED FOCUS ON MANAGING INVENTORIES ing margins of nearly 8 percent of sales, and that it will was one of the themes from among several of the specialty need to continue to manage costs and inventory at least stores that posted second-quarter results on Thursday. through yearend, due to the sluggish retail environment. Driven by strong back-to-school merchandise assort- Action-sports retailer Zumiez Inc. saw its second- ments, second-quarter profi ts surged 43.2 percent on quarter results fall by 13.6 percent to $4.1 million, or Thursday for teen retailer Aéropostale Inc. 14 cents a diluted share, from $4.7 million, or 16 cents, For the quarter ended Aug. 2, the New York-based in the same year-ago quarter. Sales rose 13.2 percent to company posted profi ts of $21.1 million, or 31 cents a $171 million from $150.8 million, while comps declined share, compared with profi ts of $14.7 million, or 19 by 1.7 percent versus the 11.6 percent gain a year ago. cents, for the same year-ago period, meeting analysts’ Rick Brooks, president and ceo, said, “We continue to expectations. Net sales jumped 21.2 percent to $377.1 make positive strides in our ongoing efforts to give our million, from $311.2 million for the comparable period customers a unique specialty retail experience, while last year. Same-store sales jumped 11 percent compared controlling costs and effectively managing inventories with a decrease of 4 percent last year. during this very diffi cult operating environment.” “Our back-to-school merchandise assortments have The retailer lowered its fi scal 2008 earnings outlook to been positively received by our customers, and we be- between 80 cents and 82 cents a diluted share from its pre- lieve that we are well positioned as we head into the Aéropostale profi ts were up 43.2 percent in the quarter. vious expectations of between 90 cents and 93 cents, due second half of the year,” said Julian R. Geiger, chairman to the ongoing lackluster macroeconomic environment. and chief executive offi cer. million, compared with $311.8 million last year. Second-quarter results were for the period ended The mall-based specialty retailer said it anticipates “Although our earnings for the second quarter were Aug. 2. third-quarter earnings per share in the range of 59 cents to in line with our expectations, our results continue to re- Bebe Stores Inc., which reported fourth-quarter re- 61 cents a diluted share. Analysts polled by Yahoo Finance fl ect the impact of a weakening economy on the retail sults Thursday, said profi ts shrunk 18.7 percent as both estimate Aéropostale’s EPS to be 60 cents a share. sector,” said ceo Sally Frame Kasaks. “With the possibil- same-store sales and gross margins declined. Pacifi c Sunwear of California Inc. turned a corner, ity of an even tougher environment ahead, we plan to For the quarter ended July 5, the Brisbane, Calif.- reporting second-quarter earnings of $2.8 million, or 4 maintain strong operating discipline while weathering based company posted income of $16 million, or 18 cents a share, after losing $10.5 million, or 15 cents, in these economic headwinds in order to position our busi- cents a share, compared with earnings of $19.7 million, the same period last year, yet the company still missed ness for success when the environment improves.” or 21 cents, for the same period in 2007. Same-store analysts’ estimates. The Wet Seal Inc. posted a 50 percent jump in income sales declined 5.6 percent on top of the 5.7 percent The Anaheim, Calif.-based company reported profi ts to $10.1 million, or 10 cents share, from $6.8 million, or decrease for the comparable quarter last year. Gross from continuing operations of $3.71 million, or 6 cents a 7 cents, last year. Sales gained 4 percent to $149 million margin as a percentage of total sales dipped to 45.8 share, down from $9.26 million, or 13 cents a share, last from $143.3 million. Consolidated comps fell by 4.4 per- percent, compared with 48.1 percent a year ago, due year. Analysts surveyed by Yahoo Finance anticipated cent, while comps for Wet Seal fell by 1.8 percent, and to increased inventory, outbound freight expense and EPS of 6 cents. Sales were up by 0.3 percent to $312.7 for Arden B. by 13.8 percent. unfavorable occupancy leverage. 12 WWD, FRIDAY, AUGUST 22, 2008 WWD.COM THE FAME GAME It has been 13 years since Elisabeth Shue’s WWD: What do you think about the way your career has evolved? Oscar-nominated turn as a prostitute who gets You’ve obviously put a lot of energy into your family. entangled with a suicidal alcoholic in “Leaving E.S.: I think you naturally pull back to fi nd a balance in your life. Las Vegas,” and a lot has changed since then. But even though you’ve made these choices that will obviously For one, the 44-year-old actress has had three take you out of the pool of actors, you still believe that shouldn’t children with husband Davis Guggenheim, himself stop great directors from wanting to work with you. So it is a little an Oscar-winning documentary fi lmmaker (for 2006’s shocking that all of a sudden you don’t have the same amount of “An Inconvenient Truth”). In addition, the onetime teen queen, beloved for roles in Eighties classics such as “The Karate Kid,” “Adventures in Babysitting” and “Back to the Future Part II,” has long since passed the baton to such zygotes as Miley Cyrus and The studios only make certain Emma Roberts. But Shue doesn’t really mind, as proven by her “ hilarious turn as a version of herself — albeit one who has decided kinds of movies now. Obviously, to trade in her supposedly stalled acting career to become a nurse in Tucson, Ariz. — in the comedy “Hamlet 2,” out today. they don’t need people at the old Here, Shue discusses holding her own with comic Steve Coogan, age of 40 to be in them. making out with her co-stars and her tennis addiction. ” WWD: How did you end up in the movie? opportunities you once had. My husband always reminds me that Elisabeth Shue: I think they offered it to a bunch of actresses who if you look at the choices you’ve made, you realize you’ve chosen turned it down. My manager suggested me…[but] he had never this path and it works for you. And to be honest, my life has been read the script, which was perfect. I’m sure he didn’t realize it Q& much more balanced since I haven’t been working as much. was the part of a has-been Hollywood actress. I just thought the script was so fun I had to be a part of it. WWD: There are fewer juicy parts for women these days, it seems. E.S.: The studios only make certain kinds of movies now. Obviously, WWD: Did you draw upon your own experiences in preparing they don’t need people at the old age of 40 to be in them….I think for the role? that the 30s and 40s are the best time [for women]. Sometimes E.S.: I knew I could come up with a character who empowered you look in the mirror and you’re surprised that you’ve actually her decisions. She decided to quit. They hadn’t thrown her out. CENTENO TALAYA PHOTO BY aged because your insides don’t age. But you’re happier and They had to tailor-make it to me so I got to think long and hard A happier the older you get because you feel more comfortable in about what I would miss most about this profession. I did feel it ELISABETH SHUE your skin and you don’t care what people think. would be making out with co-stars, so there was that monologue I helped write. It was [also] really fun to try to come up with things to say about my movies — I WWD: How do you stay in shape? Obviously, that’s such a big deal in Los Angeles. told Steve [Coogan] to say, “Wax on, wax off.” And I loved the idea of her being a nurse. If I E.S.: I play a lot of sports. I think that helps me pretend I’m younger than I really am. I play would be a nurse, I would want to be a sexy nurse. If you are going to play this role, you have to tennis psychotically every day with a coach. It’s my drug. It makes me a better mother because not be afraid to go there. I’ve had some time to myself and I’ve gotten out all my aggression on a tennis ball.

WWD: Have you ever fantasized about quitting acting? WWD: By the way, in “Hamlet 2,” one of the running gags is that none of the young characters E.S.: I think every actress has wondered many times, ‘What would I do if I quit?’ At one point I know who you are or know any of your movies. In real life, do people recognize you a lot? went as far as ordering a course catalogue from Columbia University, thinking, maybe I’ll go get E.S.: Sometimes people think you’re somebody else, actually, which I love. I think it’s hilarious. my master’s in creative writing….But I realize that even if I was going to [quit], there’s some part One time somebody thought I was Kelly Preston. I always just go with it. of me that would still need to act out. — Elisa Lipsky-Karasz FASHION SCOOPS SHAWN JOHNSON ON FASHION: Shawn Johnson is Sartorialist, have teamed up on an “image poised to become a household name. The pint-size collaboration.” Schuman enlisted 10 New Yorkers gymnast has sponsorship deals with Coke, Adidas and to style themselves using Gant’s fall line and McDonald’s — and she scored all of them before she their own wardrobes, then photographed them at won an Olympic gold medal. “I have been recognized downtown locations that he thought refl ected each a lot more here and it’s been great,” the 16-year- person’s individual style — from a Lower East old Johnson said Thursday in Beijing. Making an Side sidewalk to a Chinatown market. The site, appearance at Coke’s fan zone, Johnson received a gant.com/thesartorialist, went live Tuesday with a “Live Positively” award from her beverage sponsor for full set of photos, biographies and Q&As on all 10 her work assisting with fl ood relief in Iowa. participants. Gant plans to display the images in its The move highlights just why the gymnast is a stores, plus create a gallery installation in its New marketer’s dream. “I tell you it’s that personality,” York fl agship, where it will host an event this fall with said Petro Kacur, senior communications manager Schuman and the 10 real-people models. for Coca-Cola. For now, Johnson is focusing on her position as a OVER THE CHANNEL: The longtime vice president of role model. “Really the only thing I want to do is go out the buying offi ce and general merchandise manager there and show the world and little kids that you can of women’s fashion for Printemps has resigned from succeed in some of the toughest sports in the world, the French fi rm and is heading to Harrods to become and toughest things in the world, if you only follow your its general merchandise manager for women’s wear, a heart,” she said, adding that she’s also looking forward One of the images from new post. Cedric Charbit is expected to join the London to college in a couple of years. Attending Stanford Gant’s collaboration with retailer toward the end of October. University is her biggest goal. Scott Schuman. Off the mats, Johnson likes to be different. She is MATCH THAT: Gaspard Yurkievich is wearing many hats “addicted to True Religion jeans,” and loves quirky and these days. The designer, who shows his signature Shawn Johnson unique pieces, citing Ed Hardy as one of her favorite collection on the Paris runway, also has signed on as creative director of the French brand designers. Being smaller than the average American, Rodier, with his fi rst full collection due for fall 2009. He also has created a limited edition felt Shawn confessed to a preference for heels. But true to hat for the dating site Match.com. His Gasparinette topper is in honor of the “Catherinette” or her coach’s orders, she’s stayed off them in the lead-up to the Olympics. With the competition St. Catherine’s Day, a celebration of single woman in France on Nov. 25. behind her, she wore a pair of 3-inch silver peep-toes to Thursday’s event, occasionally fl icking them off when she got tired. “It’s actually the fi rst time I’ve worn heels in, like, fi ve months, so it FRANKIE’S GIRL: Taryn Manning is melding her passions for fashion, music and fi lm as the feels a little weird,” she laughed. “But I love heels. They make me feel a little more confi dent.” centerpiece of Frankie B.’s fi rst short movie, “Let’s Get Lost.” Donning an array of tie-dye jeans, fl ared bell-bottoms and tanks from Frankie B.’s forthcoming spring collection, Manning portrays FIRST OFF THE BLOCH: In the battle of celebrity stylists with their own reality TV shows, Phillip a Seventies-loving sprite playing a guitar, lounging on a hammock and hopping on a motorcycle. Bloch has an edge over Rachel Zoe — 18 days, to be exact. “Glam God With Vivica A. Fox,” in Manning herself lives a which Bloch judges aspiring stylists who compete for a $100,000 prize and a contract with Jed multifaceted life, designing Root Inc., premiered Thursday night on VH1, well ahead of Zoe’s show, which begins airing on jersey dresses and sweatshirts Bravo Sept. 8. Who would have thought that industry insiders who fuss over frocks would become under the brand Born Uniqorn famous enough to star as themselves on national TV? “It’s a weird phenomenon,” acknowledged when not acting in movies Bloch, who started working with celebrities such as Vivica A. Fox, Halle Berry and Christie Brinkley such as “Hustle & Flow” after modeling for designers like Romeo Gigli. If TV doesn’t pan out for him, Bloch is writing and rocking in bands. So it a style book to be published by Simon & Schuster next year. He also began showing the new wasn’t much of a stretch for cashmere line he designed with Emma & Posh this month to retailers. The 17 styles retail for her to feature in the 2-minute between $200 and $400. “No more fashionista,” Bloch declared. “It’s recessionista.” piece directed by Travis Schneider, which premieres WEDDING BELLS: Roman actress-turned-DJ Asia Argento will wed her former colleague, fi lmmaker on the brand’s Web site early Michele Civetta, at the town hall in Arezzo in Italy’s Tuscany region on Tuesday. According to next month. “We couldn’t sources in the town hall, the mayor will marry the couple, who are expecting a son. The couple have achieved this through worked together on the fi lm “Friendly Fire” in 2006 and are currently at work with Sean Lennon photographs in a traditional on a fi lm version of Ryu Murakami’s book “Coin Locker Babies.” Taryn Manning stars in look book,” said Frankie B. Frankie B.’s new short fi lm. founder Daniella Clarke. “The

GANT AND THE SARTORIALIST: Gant and Scott Schuman, the creator of the style blog The B. OF FRANKIE PHOTO COURTESY ﬁ lm tells so much more.” WWD, FRIDAY, AUGUST 22, 2008 13 WWD.COM Media/Advertising MEMO PAD

ClaireC won’t be sending anyone, spokesmen for thoset magazines said. At The New Yorker, Washington correspondent Q& RyanR Lizza will be at both conventions (and has a ppiece out Monday on the Democrats’ bid for the WWest), as will George Packer and Hendrik Hertzberg, bothb of whom will blog from them. Executive editore Dorothy Wickenden will be at the Democratic confabc and will host the regular political podcast fromf there; Raffi Khatchadourian will report from the RRepublican convention. GQ, which is throwing a party at both cconventions, is sending Lisa DePaulo and Andrew CorselloC to Denver and Robert Draper to St. Paul. A PhotographerP Jeff Riedel will be shooting subjects ERIC DAMAN forf a portfolio of political fi gures slated for the NovemberN issue. (Readers of the Washington Post As a boy growing up in rural Michigan, Eric Daman really never thought gotg a behind-the-scenes look Thursday at the he would be dressing a group of teenage socialites for a living. But he now wranglingw of top John McCain aide Steve Schmidt, who does just that as the costume stylist for CW’s hit, “Gossip Girl.” wasw quoted as saying, “I will not appear in the pages Daman was working his magic on Monday night, directing a set crew while ofo GQ.…It’s the thing I despise most about this curling synthetic wigs. This wasn’t for an episode taping, though; it was in job.j I don’t want to be in GQ. I want to go home.” preparation for a window display at Henri Bendel. The window showcases AccordingA to a GQ spokesman, Schmidt rescheduled mannequins resembling the female characters on the show, the second twicet and then canceled.) Over at New York season of which premieres Sept. 1. magazine,m John Heilemann and Jada Yuan will cover Daman’s interest in fashion began while he was studying at the Sorbonne CUTE AND CUDCUDDLYDLY PAYS THE BILBILLS:LS: A totaltotal of 2.626 bboth conventions for the print edition and the Web in Paris and working as a buyer at Magic Circle, a high-end Parisian million copies. That’s how many newsstand issues site, and Joe Hagan will be at the Democratic one. boutique. One day in 1993, Steven Meisel, who was scouting for an of People with the exclusive photos of Brad Pitt As for the celebrity weeklies, People will have upcoming Calvin Klein campaign, walked into the store when he spotted and Angelina Jolie’s newborn twins, Knox Leon and three senior staffers on deck, although Us Weekly, Daman through the window. “He just walked in, said he liked my look and Vivienne Marcheline, have sold, according to sources which has gotten a lot of attention for its political asked if I would be interested in modeling in the ads,” Daman recalled. close to the magazine, citing early sales estimates coverage and access, didn’t respond by press Before he knew it, he was on a fl ight to New York and on set with Kate for the issue. People and Hello reportedly snatched time. — Irin Carmon Moss. After moving to New York full-time to model, Daman began to up the exclusive baby photos for a wallet-busting explore fashion styling, eventually landing editorial shoots for The Face, $14 million, the cost split between the two in some GOING TO THE BIG HOUSE WITH A BANG: Jacob & Co. Visionnaire, Spin and Rolling Stone. After bumping into stylist Patricia manner. People scored the domestic rights for the is launching its fi rst ad campaign in approximately Field on the street (he knew her from his time in Paris), he was hired to images; Hello bought the international ones. two years this fall — likely to be the last overseen assist her on the set of “Sex and the City.” Together, they won an Emmy The issue is the biggest seller in seven years, by company founder Jacob “King of Bling” Arabov Award for their work on the show and Daman has been in demand since. and is the fourth highest newsstand seller in the before he heads off to prison early next year for 30 magazine’s 35-year history, behind the Sept. months after being arrested for money laundering WWD: When you 11 issue (4.1 million single copies), the issue involving narcotics. The ads with Natalia Vodianova are dressing the covering Princess Diana’s death (3 million) and were shot by Fabien Baron. Denise Scala, director of characters for the the one covering the death of John F. Kennedy Jr. marketing, said the media buy has increased by show, do you think (2.8 million). The June 19, 2006 issue with the 200 percent from the jeweler’s last campaign with it’s more important exclusive baby pictures of Brad and Angelina’s fi rst Helena Christensen, and this time will include Vogue, to make their looks daughter, Shiloh, moved 2.2 million newsstand GQ, Architectural Digest, The Wall Street Journal, approachable or copies (perhaps the extra Pitt-Jolie baby provided a Vanity Fair, The Economist and Forbes. “Our brand aspirational? bigger draw this time). is growing and evolving into a full lifestyle brand Eric Daman: It should The issue’s 2.6 million newsstand sale is way and we are also contemplating an online program,” be a little bit of both, above People’s average weekly newsstand sale she said. All the better for Arabov to keep up with really. I always make of 1.5 million copies, but the issue has been on the goings-on at the company. — Amy Wicks sure I mix some of the newsstands longer than a typical one. People higher-end looks with released the issue on Aug. 4, two days before its something from a less regular newsstand drop date, and the issue will stay expensive brand. I on stands for three weeks through Aug. 25. But use stuff from Forever People also raised its cover price for the special 21 and H&M all the issue, to $4.49, or 50 cents more than its regular time. I always want price. Along with the 2.6 million copies the issue to make kids feel like is projecting to sell on newsstands, the babies also they can look at what reached 2.3 million People subscribers, according the characters are to fi rst-half numbers from the Audit Bureau of wearing and they can Circulations. afford to go out and The baby photos also helped People extend its buy something for online reach to record levels. People.com recorded themselves. I strive to a record 6 million unique visitors for the fi rst 24 inspire the watchers, Blake Lively and hours the cover went online. Comparatively, people. Jacob & Co.’s new but it’s also important Leighton Meester on the com usually averages around 8.8 million uniques a ad campaign. to have fun with set of “Gossip Girl.” month, according to fi gures from Comscore Media clothing. Clothing can JAMES DEVANEY/WIREIMAGE BY “GOSSIP GIRL” ANTONOV; PASHA DAMAN PHOTO BY Metrix. What will happen if Pitt and Jolie have be fun and glamorous triplets? — Stephanie D. Smith END OF TTHEHE RROAD:OAD: TownTown &&C Countryountry Travel,Travel the without making you quarterly supplement that once harbored hopes feel alienated — For more on Eric Daman, RIDING THE DONKEYS AND THE ELEPHANTS: Jack Shafer’s of being a stand-alone magazine, has been folded that’s what I want to see WWD.com. advice in Slate that the press skip the political by Hearst Magazines, WWD has learned. Heidi get across. You will conventions altogether — he urged the media to Sherman Mitchell, its editor, will remain at fl agship always see someone “withdraw all reporters and force the curious to Town & Country as features and travel editor. A wearing a $5,000 rely on a C-SPAN feed…[because] these political spokeswoman said three full-time staff members dress with a pair of Nine West shoes. That is how people dress today gatherings tend to produce very little real news” — there were interviewing for other positions at the anyway — they are always mixing high and low. hasn’t been heeded by glossy magazines. Among company; sources close to the title said several the estimated 15,000 members of the press full-time freelancers were also affected. Launched WWD: Do the actors have a say in how their characters dress? attending the Denver and St. Paul, Minn., events in 2003, Town & Country Travel was a fi nalist in E.D: Of course they do; I’m not a fashion Nazi or anything. Blake [Lively] are from monthly or weekly titles that once would its circulation category for the National Magazine and Leighton [Meester] love to give their input, but they understand that I have been off the hook for 24-hour coverage, but Award for General Excellence in 2006. That year, am there to help them create and develop their characters. I think they all can now offer it on the Web. Vanity Fair is putting however, launch editor Melissa Biggs Bradley took have a lot of trust in me, but they all do give their opinions. to work its husband-and-wife political team of Dee off to eventually start her own travel Web site, Dee Myers and Todd Purdum (in addition to throwing and later that year the magazine was scaled back WWD: How have you seen their individual styles develop over the past year? a party at both conventions), and the Atlantic will to a polybagged supplement. On Thursday, the E.D.: It’s funny because they came into this as these fashion-naïve kids be represented both in print and online, with Marc spokeswoman repeatedly emphasized the small from L.A. who moved to New York in order to portray these true New Ambinder, latest blogger hire Ta-Nehisi Coates, Hillary scale of the project. “Given the small number of Yorkers. In the beginning I wasn’t sure how it was going to go, but they Clinton scoop-procurer Joshua Green (whose most people affected, and that the product never was caught on so quickly. They are like New Yorkers now — real, fashionable recent memo coups scored an all-time high for a full-fl edged newsstand magazine, but rather a New Yorkers. theatlantic.com’s Web traffi c), and editor in chief polybagged brand extension, it made sense to fold James Bennet. Glamour’s Washington editor Linda the content into the fl agship,” she said. Two years WWD: Have you ever thought of doing your own apparel line? Kramer Jenning will attend both conventions, as will ago, though, when Sherman Mitchell was hired, a E.D.: Yes. I’ve thought about this a lot, actually. I would want to do a mass line, several Glamocracy bloggers. Over at Cosmogirl, different spokesman insisted reporters should not like something for Kohl’s, Target, Charlotte Russe — something along those senior editor Tara Roberts will be going with the refer to Town & Country Travel and the biannual lines. Then I would like to do a higher-end, capsule collection for a store like magazine’s 18-year-old political correspondent Katie Wedding spin-off as supplements, but rather as Bendel’s or Barneys. Again, it’s all about accessible fashion and mixing it up. Glueck, but corporate sisters Esquire and Marie magazines. — I.C. — Julee Kaplan 14 WWD, FRIDAY, AUGUST 22, 2008 WWD.COM Financial For full daily stock changes, see WWD.com. The U.S. stock markets inched up the other side of the ledger, Hot DAILY STOCK WRAP Thursday as investors overcame con- Topic’s stock was off 17.9 percent after the fi rm reported a loss for the second quarter and lowered guid- tinuing credit and fi nancial concerns and ran toward companies such as Chevron and Exxon as oil prices ance. Also registering stock declines for the day were Macy’s and Dillard’s. Among vendors, G-III continued rose. The Dow Jones Industrial Average increased 0.11 percent, or 12.78 points, to 11,430.21 as the its ride up with a 3.9 percent gain after inking a deal this week for the Calvin Klein better sportswear license. broader S&P 500 gained 0.3 percent, or 3.18 points, to 1,277.72. Shares in the S&P Retail Index man- Other vendors on the upswing included Jones, Coach, Kenneth Cole and VF. aged to perk up 1.2 percent, or 4.69 points, to 387.77. Among those picking up signifi cant gains for the day were Limited, which climbed 12.9 percent after the retailer upped guidance for the year on Wednesday * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the afternoon; Children’s Place, up 11 percent, and Citi Trends, which advanced 9.8 percent after posting higher London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs second-quarter sales and earnings. Shares of Wal-Mart, a Dow component stock, inched up 0.2 percent. On and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros.

10 BEST PERFORMERS 10 WORST PERFORMERS

DAILY COMPANIES P/E VOLUME AMT DAILY COMPANIES P/E VOLUME AMT HIGH LOW LAST %CHANGE HIGH LOW LAST %CHANGE

20.66 18.35 Limited Brands (LTD) 8.9 19093587 20.28 +12.85 5.95 5.23 Hot Topic (HOTT) 19.6 3005525 5.64 -17.90

42.50 39.53 Children’s Place (PLCE) - 4591131 40.81 +11.02 4.99 4.25 Bon-Ton (BONT) 11.7 528250 4.26 -15.48

20.67 19.03 Citi Trends (CTRN) 19.4 777464 20.26 +9.81 4.72 4.07 Stein Mart (SMRT) - 174800 4.08 -14.64

10.96 9.81 Saks (SKS) 33.1 4559977 10.44 +5.24 0.27 0.25 Blue (BLUE) - 53495 0.25 -13.76

16.73 15.79 G-III Apparel (GIII) 16.0 87155 16.65 +3.87 0.49 0.39 NexCen (NEXC) - 444128 0.41 -12.98

1.10 1.05 Phoenix Footwear (PXG) 1.0 4800 1.05 +2.94 14.52 13.15 Mothers Work (MWRK) - 5511 13.64 -8.64

26.12 24.37 J. Crew (JCG) 15.5 2691849 25.69 +2.84 16.45 15.58 Cato (CTR) 17.1 624098 16.00 -8.10

1.97 1.96 Tefron (TFR) - 500 1.97 +2.60 0.75 0.69 Tarrant Apparel (TAGS) 9.2 10600 0.69 -6.76

16.20 15.55 Duckwall-Alco (DUCK) - 10127 15.86 +2.39 1.85 1.63 LJ Intl. (JADE) 5.7 268873 1.70 -6.59

38.98 37.67 Ross Stores (ROST) 18.8 2058916 38.89 +2.26 8.50 7.49 Hampshire (HAMP:PK) - 7008 7.50 -6.13

Bon-Ton, Stein Mart Post Losses $126 billion WWD July retail sales of consumer INDEX As Stage Stores’ Net Dips in Qtr. goods in China. COMPOSITE By Evan Clark retailer to quarterly losses of $8 million, or 19 cents a share. This compared with 978.54 THE RED INK FLOWED FOR THE earnings of $2.2 million, or 5 cents, a year Bon-Ton Stores Inc. and Stein Mart Inc. ago. Sales for the three months slipped in the second quarter, but Stage Stores 5.8 percent to $311.6 million from $330.7 Inc. managed to hold up better with just million, as comps fell 9.7 percent. a small decrease in profits. “We took aggressive markdowns in the +23.3% At Bon-Ton, losses widened to $33.8 mil- second quarter to drive consumer traffi c Change in Chinese retail sales lion, or $2.01 a share, as the company took and achieve our goal of keeping inven- a $12 million, or 72 cent a share, charge tory levels in line with the sales trend,” from a year ago. to write down the value of goodwill. The said Linda Farthing, president and ceo. SOURCES: NATIONAL BUREAU OF STATISTICS OF CHINA, +1.69 charge was prompted by a drop in the fi rm’s “These lowered inventory levels, which OANDA.COM THE CURRENCY SITE stock value and expectation the tough econ- we expect to continue, should give us a “We took aggressive markdowns in the second IN BRIEF quarter to drive consumer traffi c and achieve our • STEVE & BARRY’S DELAYED AGAIN: There’s no internal investigation into improper use deal yet for Steve & Barry’s. The creditors of gift cards and other expenses in which goal of keeping inventory levels in line with the and the bankrupt retailer wrangled into the company accused him of misappro- the night Thursday over a proposed sale to priating some $500,000. He subsequently sales trend. BHY S&B Holdings LLC, a newly formed admitted to stealing thousands of dollars ” — Linda Farthing, Stein Mart affi liate of investment fi rms Bay Harbour from the retail giant and, in January 2006, Management and York Capital Management. pleaded guilty to federal charges of wire omy will impede a near-term recovery. The cleaner platform to present fresh fash- At 8 p.m., the parties agreed to spend anoth- fraud and tax evasion. He was sentenced quarterly losses compared with losses of ion going forward.” er night hammering out a deal to satisfy the to 27 months of home detention plus fi ve $15 million, or 91 cents, a year ago. Stage Stores’ second-quarter earn- concerns of Manhattan federal bankruptcy years probation. He also was ordered to Revenues for the three months ings dipped 2.2 percent to $9.7 million court judge Allen Gropper. complete 1,500 hours of community ser- dipped 4.9 percent to $694.9 million from from $9.9 million a year ago. Earnings vice and pay $400,000 in restitution. Wal- $730.9 million as comparable-store sales per share, however, rose to 25 cents from • WAL-MART SETTLES: Wal-Mart Stores Inc. Mart fi led a suit against Coughlin in an fell 5.7 percent. 23 cents due to fewer shares outstanding on Thursday said it reached a settlement effort to void his retirement agreement. “We continue to adjust our operating in the most recent quarter. Sales rose 3.8 with Tom Coughlin, a former vice chair- Coughlin fi led a countersuit, but dropped plan based on what we are seeing in the percent to $372.7 million from $359.2 mil- man, who resigned in 2005. The settle- one of his three claims on Monday. marketplace and are making every effort lion as comps dipped 1.4 percent. ment allowed the retail giant to avoid to capture sales opportunities while re- “As a result of our strong inventory a civil trial on the day it was scheduled • NIKE PROMOTES SPRUNK: Eric Sprunk, vice maining intently focused on controlling controls, we ended the quarter with to begin. According to a form 8-K report president of global footwear for Nike Inc., inventory, expenses and capital expen- our retail inventories down 8.9 per- that Wal-Mart fi led Thursday with the has been named vice president for product, ditures,” said Bud Bergren, Bon-Ton’s cent on a comparable-store basis,” said Securities and Exchange Commission, a new position. Based in Beaverton, Ore., president and chief executive offi cer, on Jim Scarborough, chairman and ceo. Coughlin will forego all outstanding rights Sprunk will report to Charlie Denson, a conference call with analysts. “Despite the diffi cult macroeconomic and claims under his retirement agree- president of the Nike brand. Sprunk, 44, Like other regional players, the York, environment, our fi nancial condition ment, as well as any additional unpaid or joined Nike in 1993 as finance director for Pa.-based Bon-Ton has been pressured remains strong. Our free cash fl ow for withheld benefi ts under the company’s re- the Americas region. During his 15-year by a lack of consumer spending and stiff the fi rst half of the year exceeded last tirement and other benefi t plans, the total career, Sprunk has held several financial competition from better-capitalized na- year’s level, while opening 28 stores this of which is estimated to be about $17 mil- and general management jobs. Jan Singer, tional players. year versus 14 stores last year.” lion, not including health benefi ts. Wal- 44, will succeed Sprunk. Singer joined Markdowns to move goods at Stein The second quarter for Bon-Ton, Stein Mart agreed to pay Coughlin $6.75 million. Nike in 2004 and had been vice president Mart pushed the Jacksonville, Fla.-based Mart and Stage Stores ended Aug. 2. Coughlin resigned from Wal-Mart after an of footwear sport culture. WWD, FRIDAY, AUGUST 22, 2008 15 WWD.COM/CLASSIFIEDS

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