Ulta, One of Beauty’S the Caftan Is Making a Launches Lipsticks and Hottest Retailers, Comeback, with Styles Expands Handbags

Fashion. Beauty. Business. Features p. 78 In Focus p. 31 Fashion p. 8

AUG 2015 No.1

BEAUTY AND SILVER FLOU THE BAG STREAK SEASON Christian Louboutin Ulta, one of beauty’s The caftan is making a launches lipsticks and hottest retailers, comeback, with styles expands handbags. marks 25 years. from simple to ornate. RED HOT AND ATOMIC

“I just favor happiness to darkness. I’m more solar than lunar.” RED Hot andATOMIC GEN Z — WHICH IS SIZABLE,

CHRISTIAN LOUBOUTIN SOCIAL AND READY TO SPEND — IS BLOWING UP (AND SO ARE THE SMITH SIBLINGS). US $9.99 JAPAN ¥1500 CANADA $13 CHINA ¥80 UK £ 8 HONG KONG HK100 EUROPE € 11 INDIA 800 Edward Nardoza EDITOR IN CHIEF Pete Born EXECUTIVE EDITOR, BEAUTY Bridget Foley EXECUTIVE EDITOR The Features James Fallon EDITOR Robb Rice GROUP DESIGN DIRECTOR Ready or

John B. Fairchild Not, Here 1927 — 2015 MANAGING EDITOR Peter Sadera They Come! MANAGING EDITOR, Dianne M. Pogoda FASHION/SPECIAL REPORTS 72 At nearly 25 percent EUROPEAN EDITOR Miles Socha DEPUTY MANAGING EDITOR Evan Clark of the population, NEWS DIRECTOR Lisa Lockwood DEPUTY EDITOR, DATA AND ANALYSIS Arthur Zaczkiewicz DEPUTY FASHION EDITOR Donna Heiderstadt Generation Z is sizable, SITTINGS DIRECTOR Alex Badia SENIOR EDITOR, RETAIL David Moin social and has SENIOR EDITOR, SPECIAL PROJECTS, Arthur Friedman TEXTILES & TRADE considerable spending SENIOR EDITORS, FINANCIAL Arnold J. Karr, Vicki M. Young ASSOCIATE EDITOR Lorna Koski power. Just don’t mistake BUREAU CHIEF, LONDON Samantha Conti BUREAU CHIEF, MILAN Luisa Zargani them for Millennials. BUREAU CHIEF, LOS ANGELES Marcy Medina ASIAN EDITOR Amanda Kaiser BUREAU CHIEF, WASHINGTON Kristi Ellis SENIOR FASHION EDITOR Bobbi Queen Eyes Wide Open ASSOCIATE EDITOR Jenny B. Fine SENIOR EDITOR, SPECIALTY RETAIL Sharon Edelson SENIOR PRESTIGE MARKET Julie Naughton 78 Christian Louboutin BEAUTY EDITOR SENIOR FASHION FEATURES EDITOR Jessica Iredale discusses his new luxe SENIOR ACCESSORIES EDITOR Roxanne Robinson SENIOR MARKET EDITOR Mayte Allende lipstick line and an EYE EDITORS Taylor Harris, Erik Maza MEN’S expanded handbag SENIOR EDITOR Jean E. Palmieri oﬀering as he keeps FASHION DIRECTOR Alex Badia ASSOCIATE FASHION EDITOR Luis Campuzano MEN’S REPORTER Aria Hughes adding to his MARKET EDITORS formidable FINANCIAL NEWS AND ANALYSIS Debra Borchardt ACCESSORIES Lauren McCarthy, footwear. Misty White Sidell BEAUTY Molly Prior, Jayme Cyk DIGITAL Rachel Strugatz READY-TO-WEAR, Bobbi Queen FURS & INNERWEAR FASHION READY-TO-WEAR & SPORTSWEAR NEWS Rosemary Feitelberg MEDIA Alexandra Steigrad READY-TO-WEAR AND Kristi Garced SPORTSWEAR FASHION EYE Ally Betker, Leigh Nordstrom CORRESPONDENTS

LONDON Nina Jones LONDON, EDITORIAL COORDINATOR Lorelei Marfil LOS ANGELES Khanh T.L. Tran LOS ANGELES Kari Hamanaka MILAN, FASHION AND NEWS Alessandra Turra NEW YORK, EDITORIAL ASSISTANTS William Cotto, Tara Bonet-Black, Kelsi Zimmerman NEW YORK, FASHION ASSISTANTS Andrew Shang, Ashley Davis, Kayana Cordwell, Milton Dixon, Emily Mercer PARIS, EUROPEAN BEAUTY EDITOR Jennifer Weil PARIS, SENIOR FASHION EDITOR Laurent Folcher PARIS, SENIOR BUSINESS NEWS EDITOR Joelle Diderich PARIS, GENERAL ASSIGNMENT Paulina Szmydke REPORTER, NEWS PARIS, EDITORIAL AND WEB ASSISTANT Anne-Aymone Gheerbrant WEB EDITOR, EUROPE Laure Guilbault SAN FRANCISCO, TECHNOLOGY Maghan McDowell DESIGN DEPARTMENT

CREATIVE DIRECTOR Nick Mrozowski ART DIRECTOR Geraldson Chua SENIOR DESIGNER Christa Guerra DESIGNER Robyn Boehler DESIGNER Jewelyn Butron PHOTOGRAPHY

PHOTO DIRECTOR Ash Barhamand ASSOCIATE PHOTO EDITOR Jenna Greene BOOKINGS AND PRODUCTION EDITOR Tricia VanGessel ASSISTANT PHOTO EDITOR Katrina Brown

PHOTO STUDIO

PHOTO STUDIO MANAGER Eileen Tsuji PHOTO STUDIO ASSISTANT Emily Taylor PHOTOGRAPHERS George Chinsee, Steve Eichner, Thomas Iannaccone COPYDESK

COPY CHIEF Maureen Morrison-Shulas COPY EDITORS Danielle Gilliard, David Podgurski, Maxine Wally PREPRESS PRODUCTION

DIGITAL IMAGING Alex Sharfman PREPRESS ASSEMBLY David Lee Chin WWD.COM

SITE DIRECTOR Michelle Preli ASSISTANT ONLINE EDITOR Kristen Tauer WEB PRODUCER Robert Tutton Lucky Blue Smith, one of the four PUBLIC RELATIONS Smith siblings who are models as PR COORDINATOR Christina Mastroianni well as bandmates in The Atomics.

Photograph by EMMAN MONTALVAN Contents

Paul Jowdy th SENIOR VICE PRESIDENT, GROUP PUBLISHER

ADVERTISING ASSOCIATE PUBLISHER Pamela Firestone happy 25 INTERNATIONAL FASHION DIRECTOR, Renee Moskowitz RMM MEDIA EXECUTIVE DIRECTOR, MEN’S Brett Mitchell BEAUTY DIRECTOR Carly Gresh AMERICAN FASHION & LUXURY DIRECTOR Jennifer Petersen ACCOUNT EXECUTIVES Samantha Hartje Shannon Fitzgerald Alexandra Smith philosophy: our best is yet to come. SENIOR CLIENT SERVICES MANAGER Joanna Block CLIENT SERVICES MANAGERS Annie Belfield Suzette Minetti Tina Schissel REGIONAL OFFICES/ INTERNATIONAL OFFICES

WEST COAST DIRECTOR Jill Biren +1-323-965-7283 EUROPEAN ACCOUNT DIRECTOR, ITALY Giulia Squeri +39-02-722-33602 ACCOUNT DIRECTOR, ITALY Olga Kouznetsova +39-02-722-33603 SENIOR SALES COORDINATOR, ITALY Emanuela Altimani EUROPEAN DIRECTOR, FRANCE Valérie Deschamps-Wright +33-1-44-51-07-611 EUROPEAN SALES REPRESENTATIVE Marjorie Thomas +33-240-31-6541 ADVERTISING ASSISTANT, FRANCE Pascale Rajac

DIGITAL/MARKETING/CREATIVE SERVICES MARKETING DIRECTOR Shannon Nobles Cotton jeans by Frame Denim. CREATIVE DIRECTOR, MARKETING Cass Spencer DIGITAL MEDIA STRATEGIST Cassie Leventhal DIGITAL SALES PLANNER Amy Keiser “We started the women’s line because we felt like AUDIENCE MARKETING VP & SENIOR EXECUTIVE DIRECTOR Ellen Dealy CONSUMER MARKETING DIRECTOR Peggy Pyle denim was no longer a fashion item, but for men it’s SENIOR DIRECTOR, DIGITAL MARKETING Janet Menaker & STRATEGIC DEVELOPMENT more about the concept of style rather than fashion.” PLANNING & OPERATIONS DIRECTOR John Cross SENIOR DIRECTOR, Randi Segal — Jens Grede, Frame Denim INSTITUTIONAL SALES SENIOR ONLINE MANAGER Suzanne Berardi SENIOR MARKETING MANAGER Tamra Febesh Men’s Agenda, page 22 ASSOCIATE MARKETING MANAGER Lauren Busch PRODUCTION

PRODUCTION DIRECTOR Kevin Hurley PRODUCTION MANAGER Providence Rao DEPARTMENTS SUMMITS & EVENTS VICE PRESIDENT, NEW VENTURES & GM Amber Mundinger 6 Social Studies EXECUTIVE EDITORIAL DIRECTOR Mary Ann Bacher The best and worst in social media, what’s DIRECTOR, ATTENDEE SALES Kim Mancuso SPONSORSHIP DIRECTOR Alexis Coyle Agenda trending, whom to follow. DIRECTOR OF EXPERIENTIAL MARKETING Amelia Ewert FAIRCHILD PUBLISHING LLC 24 Eye Stephanie George Fashion 8 • Parties The fourth-annual Hamptons Paddle & PRESIDENT AND VICE CHAIRMAN Flou Season: Caftans are as Party for Pink. EDITORIAL DIRECTOR OF Michael Atmore eﬀortless as ever . . . Carolyn FOOTWEAR NEWS & DIRECTOR • Arts & Culture Phillipa Soo soars as the ﬁrst lady OF BRAND DEVELOPMENT Murphy signs with Ugg . . . Model in “Hamilton.” FINANCE DIRECTOR Devon Beemer Call: Kenya Kinski-Jones . . . • Report Card Kate Mara looks appropriately DIRECTOR OF EUROPEAN OPERATIONS Ron Wilson

Fashion Briefs fantastic at a premiere of “Fantastic Four.” • City File Tuning In to Nashville.

WWD AND FAIRCHILD PUBLISHING LLC 31 WWD Milestones ARE DIVISIONS OF PENSKE MEDIA CORPORATION Markets 18 Silver Streak As it hits the 25-year mark, the red- Jay Penske True North: Michelle Lam is hot Ulta Beauty reveals strategies for continued CHAIRMAN & CEO making data sexy, one bra at a growth in its next quarter-century. VICE CHAIRMAN Gerry Byrne time . . . Markets Briefs EXECUTIVE VICE PRESIDENT, George Grobar STRATEGY AND OPERATIONS 84 Bridget Foley’s Diary EXECUTIVE VICE PRESIDENT, Paul Woolnough BUSINESS AFFAIRS With the departure of Alexander Wang from SENIOR VICE PRESIDENT, Craig Perreault Balenciaga, the “Who’s next?” watch begins anew. BUSINESS DEVELOPMENT GENERAL COUNSEL & Todd Greene Retail 20 SVP HUMAN RESOURCES 86 Think Tank VICE PRESIDENT, CREATIVE Nelson Anderson Jeffrey Kalinsky, whose Jeffrey Marcie Merriman, executive director of business VICE PRESIDENT, FINANCE Ken Delacazar flagship helped transform VICE PRESIDENT, HUMAN RESOURCES Tarik West strategy and retail innovation at Ernst & Young, Manhattan’s Meatpacking District, VICE PRESIDENT, ENGINEERING Gabriel Koen discusses how to win the hearts and minds of DIRECTOR OF COMMUNICATIONS Lauren Gullion marks its 25th anniversary Generation Z. DIRECTOR OF OPERATIONS Joni Antonacci . . . Retail Briefs CONTROLLER Young Ko SENIOR PROGRAM MANAGERS Christina Yeoh, 88 Remember Derek Ramsey DIRECTOR, ADVERTISING OPERATIONS Eddie Ko here’s to an even more miraculous future together. Singapore celebrates 50 years of independence DIRECTOR OF IT OPERATIONS Rick Gascon, 22 with a string of events in New York . . . The Ritz & PRODUCTION Matt Williamson reopens in Paris . . . Human Resources SENIOR IT ANALYSTS Carl Foner Jean Splicing: Five brands that are Aramis Miranda-Reyes injecting newness into the men’s IT ANALYSTS Don Gerber denim market . . . M Briefs 90 Finale Fred Baez Letter Man: The alphabet soup that is the TO CONTACT WWD

generation game surely didn’t start with Gen Z. EDITORIAL +1-212-256-8130 Matt Dillon was one of the poster boys for Gen X. ADVERTISING +1-212-256-8102 CIRCULATION +1-515-237-3650 of all philosophy USA net product sales supports community-based ON THE COVER: The Smiths, clockwise from top left: Starlie 1%mental health efforts. Cheyenne, Daisy Clementine, Pyper America, Lucky Blue. join the conversation at facebook.com/philosophy PHOTOGRAPHED BY EMMAN MONTALVAN

4 AUGUST 2015, No. 1 WWD.COM Social Studies EDITED BY KRISTEN TAUER THE WEEK IN SOCIAL MEDIA Best Worst

“Sums up this steamy week, no?” Glitter removal is an ugly task. Yes, but does anyone need a reminder?

@ali_michael @bergdorfs Model Retailer

Alexander Wang bade adieu to his Balenciaga role with class, down to the name strike-through on his stationery. N

@alexanderwangny Fashion designer HAPPY

“Happy birthday Riccardo Tisci! @riccardotisci17 in @interviewmag Michelle Smith and her squad experienced by #StevenKlein #Love #birthday #Celebration” an iconic New York moment — a walk over Maybe next year Givenchy can gift Tisci a more flattering the Brooklyn Bridge. “On set with Michael & fam. Miss him #TBT” portrait for its social media post.

@millybymichelle @parishilton @givenchyofficial Fashion label Socialite Fashion label Birthday Trending Let’s Follow The social media world rallied around the topic of illegal hunting after the death of #CecilTheLion in Zimbabwe. @1JessicaHart Literally have tears in my lap after reading the horrible details of this story. #CecilTheLion @SophiaBush Let’s use a terrible tragedy to make some good happen, shall we? We can change things #ScreamForCecil #CecilTheLion @TheMandyMoore T6 This is heartbreaking in every possible way. What a loss. Trophy hunting is SHAMEFUL and disgusting. #CecilTheLion

@MiaFarrow DESIGN & DOODLES FASHION FOCUSED CELEBRITY STYLE Animals are not trophies. Ever. C #CecilTheLion @josecabaco @petercopping @salmahayek Brand creative director Creative director of Actress, producer and

at Eddie Bauer Oscar de la Renta beauty entrepreneur Graves Amy by Hayek Altizer; Drew by Copping photograph Love

6 AUGUST 2015, No. 1 WWD.COM Follow Us @WWD ©2015 Maybelline LLC. EDITED BY DONNA HEIDERSTADT Adam Lippes’ silk georgette caftan. Necklace by FashionAgenda WWake. OPPOSITE: Clockwise from top left: Camilla and Marc’s tiered silk wool dress with a necklace by WWake and shoes by Roberto Cavalli; Naeem Khan’s bead and sequin- embroidered nylon tulle caftan; Josie Natori Couture’s viscose and silk caftan with sandals by Theory and necklace by Pluma; and Rodebjer’s cotton and metallic yarn-dyed woven poncho.

Flou Season Resort’s most eﬀortless look, the caftan came in versions that draped, ﬂared and billowed for day or night.

8 AUGUST 2015, No. 1 WWD.COM Photographs by FELIX WONG Styled by BOBBI QUEEN WWD.COM AUGUST 2015, No. 1 9 10

AUGUST 2015, No. 1 FashionAgenda by Pluma. caftan. Necklace polyester chiffon Halston Heritage’s

WWD.COM FLOU SEASON HAPPY DON’T DO ANYTHINGWE WOULDN’T DO. 25 TH , ULTA! , 12

AUGUST 2015, No. 1 FashionAgenda

WWD.COM NYC USINGBOBBI BROWN COSMETICS Hair andMakeup by Fashion Assistant: Model: Photo Assistant: PAULINE H/THESOCIETY MIGUEL @ARTIST EMILY MERCER HEATH LATTER dress; WWake’s poplin shirt and poplin shirt FLOU SEASON The Row’s silk necklace. and lookforward tocelebratingthenext25years. We areproudto beyourpartner 25 yearsofsuccess! Congratulations 14

AUGUST 2015, No. 1 FashionAgenda U passed, which Iknow abitweird.” is and Ibothgot apairofmy grandfather’s when he were theclassic sandy-colored boots.My cousin from my unclewhen Iwasmaybe andthey eight, boots quite young,” she said.“My ﬁrstpairwas 10 years andsurﬁngthere, sowe were given Ugg up withthebrand,having lived inCaliforniafor Murphy nostranger is “Igrew toitsproducts. companyBrands-owned was founded in1978, and Carolyn Murphy asitsface. Romance Ugg Murphy’s Herself aCalifornianative, where theDeckers

WWD.COM By By andthewoesedition collection, ofInstagram. Carolyn Murphy about talks Ugg’s new limited- LAUREN MCCARTHY tion, dubbed“Classic Luxe,” collec- with alimited-edition fresh take onitsclassicboot the company introducing a is familiar facetogo withit. getting is anewlook—and gg For thefirsttimein37 years, brand’s Web onAug. site,beginning 6. Ugg stores, American andthe North hit select and blackretails for$245. will Thecollection aubergine while comesintan andrust, theKarisa respectively, comesin colorsthatincludeespresso, short heightsandwill retail for$295 and$250, TheAbree,detailing. which and comesintall fringe ananklebootdonewith tasseled the Karisa, with anewzipper closure forasnugger and fit, theAbree, tothetraditionalboot asister styles: sheepskin comesintwo insole.Thecollection a leather, heelandthesignature logo-embossed include goat suedeandMerino Twinface,with thantheclassiciteration.Materials construction sleeker silhouettewithaslimmer, more-contoured bootsfeature though.TheItalian-made a styles, Murphy thenewcollection’s praised more from those old afarcry is The newcollection Ignis et viduntiblaboraset voluptatur sundebisdolum esenimentio odiae important.” ■ important.” creative side ofthingsandhave really anopinionis a jobwhere have Iactually to thinkandsitonthe which ithasevolved wonderful. intoandis Having of having jobandadesk andasalary, anactual happen,” she said.“Maybe Iwould have dreamt somethingIwouldis have never thoughtcould watch manufacturer Shinola.“My role atShinola forDetroit-baseddirector leathergoods and includingherpositionaswomen’slighting, design worry iPhone aboutbeyond findingtheperfect little bitolder, we have tofigure itout.” it’s really alltheyknow. For thoseofuswho are a a lotfromI hearthis theyounger models,because They wanttoknow how many followers you have. with brands,that’s oneofthefirstthingstheyask. I postoneselfieaweek, I’mdoinggood, because what Ihave aproblem with.” —that’sproducts ourjob. Theself-promotion is the endofday we’re allcreating and selling Now it’s quite finebecause corporate,which at is fashion andmusic andthere wasareal passion. whenthe Nineties itwas very much and aboutart self-promote,” Murphy said.“It’s sodifferent from spokesmodel. attimesto “Ifinditpainstaking happen toshare Murphy’s titleasanEstéeLauder dall Jenner who also (33million),thelattertwo Joan Smalls(1million)orthereigning queen, Ken- models dujoursuchasKarlie Kloss(2.9 million), — nottooshabby, from thecountof butafarcry not have alotoffollowers.” that active media],”she admitted.“Ido [onsocial “Igetter andInstagram. introuble fornotbeing models thesedays, particularly intheage ofTwit- him, andthere’s level oftrustthere.” acertain think Iwould say no, because I’mvery closewith ofher,and saidhewantedtodoaportrait Idon’t tomorrowThat beingsaid,if[Steven] called Meisel note, Iwould stave itoffaslongIcouldforDylan. attempt college, which Ididforayear. Onapersonal highschool,andthenIhadto to waituntilIfinished Shalom [Harlow]. My parents were —Ihad stricter when she was14, andthenAmber[Valletta] and so maybe comebacktousinafewyears. that Ijustdon’t thinkshe’s there, maturity-wise, a lotlately,” she said.“Itoldamagazinerecently modeling realm just yet. “She’s beenapproached Murphy to letherdaughter hesitant is enterthe Carolyn Murphy you don’t needmakeup.” —theysay fortysomething happens when you are “Maybe that’s what need makeup,” she said. when you —theysay are you fortysomething don’t the au naturel “Maybe look. that’s what happens Renta ready-to-wear for —alsocalled campaign dela other high-profile gigforfall—theOscar sweaters jackets. andcozy Coincidentally, her themodelloungingbarefaced inoversizedepict —atraitevidentby theimages,fortable” which Murphy tookfrom theset. daughter Dylan hasalready bor Caseinpoint:her14-year-oldwhat theirlifestyle.” thatitwillappeal toahugeis age range, nomatter great collection thingaboutthis “The refined style. To her defense,Murphy hasotherthings to So noselfies? “Iget embarrassed,”she said.“If The modelhas122,000 followers onInstagram Murphy notesanaddedpressure foryounger “My daughter 14, is andKate[Moss] started Though she wasdiscovered attheage of15, shoot as“com- thecampaign She described Photograph rowed thepairthat by by JENNA GREENE Women Footwear. Men AUGUST 17–19,2015 Las Vegas &Mandalay Bay Convention Centers sourcing at magic opens august 16 ’ s. ’ Men Young s. Find register now at attendmagic.com ’ s. it it here. 16

AUGUST 2015, No. 1 FashionAgenda JONES KINSKI- KENYA CALL: MODEL @lovekenya Instagram: Los Angeles Hometown: Ford Models Agency: 32, 24, 36 Measurements: Brown Eyes: Blonde Hair: 5’8” Height:

Klein Jeanscampaign. —KRISTI GARCED also oneof thefaces of thebuzzynew Calvin Vogue andHarper’s Bazaar, Kinski-Jonesis to landingeditorials inVogue Spain, Teen kept thingsdown-to-earth for me.” Inaddition all inthespotlight. Ithinkmy parents really

WWD.COM

Nastassja Kinski. “I grew upnot at mother, actress andformer model, producer Quincy Jones, andher was talking aboutherfather, music where shemajored inEnglish— from Loyola University, Marymount activist —whograduated inMay Angeles-based modelandanimal Will Peltz. The22-year-old Los New York withherboyfriend, actor spending aweekend inupstate touched down inBrooklyn after on arecent afternoon, having parents,” saidKenya Kinski-Jones O “Obviously, to me, they’re just my

exciting. streets” —butit’s just really she likes to walk around the “L.A.”-like, “Oh, whatanidiot, me. Thatprobably soundsso issofunandexcitingcity for pen. Just walking around the street andanything canhap- York, you canwalk outonthe issochill,L.A. buthere inNew do you like to dohere? summers inNew York. What You spendyour typically into different things. is thatyou canincorporate it The goodthingwithwriting passion for animaladvocacy. incorporate thatwithmy column for amagazineand things —maybewrite a I’d like to combinedifferent I thinkinmy dream world, apply your studies? career, how doyou planto fromApart your modeling ship isreal. limits becauseourrelation- like we were ableto pushthe had to break through. Itfelt any awkwardness thatwe comfortable. There was never everything somuchmore my boyfriend, Will, made Being ableto shoot itwith to somehow fall into that. anddatingareality going certain aspects of sexu- most often, sonaturally, uses Instagram andtexts This isthegeneration that What was itlike to shoot? dating apps andsexting. for itsaucourant themes: paign isgetting somebuzz The new CKJeanscam- to thannot try to atall. try and not bescared. It’s better wants meto jumpinto things “Go it!” doit!Gotry Shealways my momwould always say, in my awkward stages orshy, done.” Growing up, whenIwas begun, never leave ittillit’s to say, “If atask hasonce in thework.” Mygrandpa used my career, isalways like, “Put My dad, whether it’s schoolor career advice? Do your parents give good amazing experience. for Vogue Spain. Itwas areally later, we didashoot together photos andacoupleof months about it. Hesnappedsome still kindof shy andnot sure she took meto ashoot. Iwas Bruce Weber previously, and I guessmy momhadknown never really thoughtaboutit. agency. Before that, Ihad to anacting andmodeling Around age14or15, we went who got meinto itthemost. My momwas actually the one How didyou start modeling? Photograph by by MATT TAMMARO

Chart by Carlos Monteiro; Moschino photographs by Thomas Iannaccone; Gurung and Wang by George Chinsee Retrospectives, runsthrough Nov. 17. ofthemuseum’spart Women’s Series Barrio inNewYork City. Theexhibition, Latter-Day Santos,” atElMuseo del “Rodríquez and Calero: Urban Martyrs in therecently openedexhibition, among her99worksthat is featured surrealist collagethis ofthemodel and religious iconography —called streetelements ofhip-hop culture LVMH MoëtHennessyLouisVuitton generally lackluster performance stocks. amongluxury sales results, especiallyintheaccessoriessector, resulted in *As of close of market onJuly 31, 2015 O Luxury’s SummerSlump THE CHART Close (USD) Name Symbol The dollar’s continuedstrength combinedwithmixed Hermès InternationalSCA -32.12 Salvatore Ferragamo Brunello CucineliSpA -15.56 Ted Bakerplc 387.52 -6.11 186.63 191.98 -4.12 SFERm -2.95 50.24 Kering 31.38 18.76 BCm RMS TEDI KER MC +0.52 +0.63 41.99 Michael KorsHoldingsLtd. KORS 4.60 Prada SpA 1913 25.15 Burberry Groupplc BRBYI 86.01 Richemont CFR 120.04 Hugo BossAG BOSS works combine Calero —whose Rodríguezartist Nuyorican what Pop. That’s of Our Lady has anew title: O Canvas on Kate +2.43 +3.63 +6.17 Kate Moss +14.79 Change (USD) 3 Month — MAYTE ALLENDE Futures program. York for theCFDA’s Fashion based designers inNew to atrioof young Singapore- Prabal Gurung here.’” something ‘OK, there’s I waslike, happened, minute that media….The to social not open was industry of thefashion the majority whenback, or sixyears about ﬁve was This back to me. responded when she followers got 500 immediately ButI into it. was really not tweeted, andI I hadnever you’ to her. to say ‘thank joined Twitter brand, andI about my tweeting started “Demi [Moore] QUOTED , speaking found aninvestor for his surfaced thatWang had also simultaneously Albemarle Street. Reports foot flagshiponLondon’s largest store, a6,460-square- — andfor thedebutof his designed sincelate 2012 Balenciaga —whichhehas with Paris fashion label headlines for both hissplit York-based designermade of just afew days, theNew Wang. Withinthecourse this week for Alexander could have beenthemantra another oneopens. That week withtheopeningof newest hotel luxury last designed witharchitect Ida the 3,500-square-foot space, traditional retail concept for was not interested ina for hiscartoonish vision, year. Thedesigner, known in Los Angelesearlierthis New York —thefirst opened Wooster Street inSoHo Scott openedMondayat73 creative direction of Jeremy store underthedaffy O Week Wang’s Newsy HEADLINER O Oriental Mandarin Benvenuto MODAMILAN O in SoHo Supersized Moschino Goes THINKING BIG When onedoorcloses, Milan welcomed its The secondMoschino on XXL hangers. There are displayed onhangers hung onshoes.trying Clothes are can sitontheshoewhile with aseatsocustomers to displayshoesandone shoes, onewithshelves giant pleatherhigh-heel collection includeapairof displaying Moschino’s pre-fall had sculptures,” Scott said. ing, like would agallery ifyou and fixtures andhave itrotat- can create large installations and anopenloft spacesoI Sborgia. Friday. Kering confirmedthislast ciaga’s parent company Both thedesignerandBalen- Week, willbeWang’s last. Oct. 2duringParis Fashion collection, to beshown on eponymous business. 10-year-old, $100million Citterio Patricia VielInteriors, Italian designby Antonio and a9,867-square-foot spa. has 73rooms and31suites Brera district, theproperty near thecity’s fashionable Located onViaAndegari the MandarinOriental Milan. The sculptures currently “I wanted very highceilings Balenciaga’s spring2016 Featuring contemporary Fashion have your picture taken init.” and unexpected. You want to to putasmileonyour face Scott said. “It’s something fun, andexciting,” playful decor to themovie “Big.” Michelle Stein likened the store. Aeffe USA president ceiling, atthebackof the whose headalmost hitsthe a larger-than-life mannequin, the handbagcollection, and cut outinthebackto house shopping bagswithshelves jacket-inspired bagsand also enormousmotorcycle tive officer William Ford. firm headedby chief execu- York-based growth equity General Atlantic, theNew said heisnegotiating with an investor, market sources Wang isaboutto take on designer. trumps New York,” saidthe the shoppinghere actually ent wavelength, and Ithink “London isonawhole differ- luxurious withtheindustrial. Van Duysen to fusethe tect and designerVincent designed by Belgianarchi- spans three floors andwas in thedesigner’s portfolio, to thepublic. Antonio Guida. Both are open restaurant helmedby chef yard, andSeta, afine-dining Bar withanadjoiningcourt- black-and-white Mandarin hotel worldwide hasasleek, Mandarin Oriental’s 45th SOCHA ANDJOELLEDIDERICH “I just wanted itto bevery As for speculationthat The London store, the 25th — LISA LOCKWOOD, MILES WWD.COM — JESSICA IREDALE Briefs

— LUCIE JANEK AUGUST 2015, No. 1

17 EDITED BY ARTHUR ZACZKIEWICZ Angels. Later, she worked in due diligence at Bain MarketBriefs Capital Ventures, where, in 2008, she crunched Markets the numbers to confirm LinkedIn’s groundbreak- Agenda ing $1 billion valuation. “I remember being afraid that I was going to lose my job, because no one had ever done that before,” Lam said. QUOTED “has all those things.” When she began working on True & Co., she Curve Appeal With Fit for Me True & Co.’s approach has obvious applications started with fit-tests in her home, where she “Designing beyond the bra, and it is slowly pushing into pant- would gather feedback on taste and fit from OFruit of the Loom is breathing new life into its new brand. ies and loungewear. (It recently sent out a “cheek friends and family using a pen-and-paper quiz is something guide” to customers — i.e., for “the other 3-D part modeled after Cosmo quizzes she took in high Fruit of the Loom is “Signage isn’t as made from either cotton, that we’ve True North of a woman’s body.”) school. Eventually, she needed a way to listen to relaunching and expanding available as it used to be microfiber, or a cotton- Michelle Lam makes data sexy, “Women are saying, ‘Wow, there is a new and the customer in a scalable way — which means its plus-size underwear so our packaging has to do polyester blend. The always different way and the lingerie industry is starting data, and the online feedback loop she uses today. line Fit for Me. all of that work. Customers underwear is sold in packs By MAGHAN MCDOWELL to listen to me,’” Lam said while sitting in True & “The goal was always delivering a beautiful Although the line has want to have somebody of five and retails from wanted to one bra at a time. been out since 2001, Mark on that package that $9.99 to $12.44. Co.’s sunny San Francisco SoMa district headquar- product that makes her body look amazing and Hartman, Fruit of the represents their body type. The new product began do...to kind ters. “We’re pushing further into ‘emotional fit’ makes her feel amazing,” Lam said. “A lot of Loom’s vice president of They also don’t prefer the shipping to big-box territory.” This means that, in addition to making companies who are trying to do things with data marketing, said customers word plus at all,” Hartman retailers including Wal- of step back uying red lingerie? Chances are, credentials has become de rigueur, “data” is a recommendations based on her body shape, the don’t have such a strong goal in mind.” didn’t know it existed explained. Mart and Kmart earlier and put you’re a cat person. big-ticket buzzword. But utilizing that mysterious algorithm can help gauge what a woman wants to In October 2013, Lam launched the True & Co. because of the packaging, The collection, which this year, but for fall Fruit And that “lace and sexy” treasure trove? That often remains more elusive. see when she looks in the mirror. (For example, brand of lingerie, informed by the cues that cus- which prominently starts at a panty size nine of the Loom is introducing the looks trend? Sure, it’s a thing — but Not so for Lam, whose approach to matching four out of five women don’t want a push-up bra.) tomers had provided. Her feedback loop means featured the Fruit of the and goes up to a size 13, a microfiber layering that same woman likely bought women with well-fitting intimates has convinced “And our consumer research,” Lam said, “tells she is able to produce more efficiently. Thanks Loom logo with the Fit for includes a brief, boxer tank and a breathable together and Me messaging beneath it. brief and a high-cut style underwear program a nude bra the day before. investors — mostly male, aside from Lee — to us that they are looking for a different definition to customer response, she recently identified a B “Many plus-size women made from cotton be a part of At least, that’s according to contribute $15 million to True & Co. since 2012. of ‘sexy.’” potential manufacturing defect within 48 hours, said they were buying Fruit micromesh. According what Michelle Lam fondly refers to as her As an investor, Lee said, she’s looking for very Lam is a different definition of “data geek.” and confirmed it after two weeks — even though of the Loom, but they had to Hartman, 60 percent the shoot “Rosetta Stone of bras,” created from 60 million large markets, entrepreneurs who have a personal The 36-year-old Toronto native cut her teeth at the product had passed inspection. She’s also never heard of Fit for Me. of plus-size underwear when it’s data points gathered from several million women connection to the opportunity of the problem, The Boston Consulting Group, which worked found the “sweet spot” is making each silhouette They just thought it was a purchases are made over the past three years. and a new approach that would make the experi- with Victoria’s Secret on research that led to the in eight to 12 sizes, rather than the larger offering tag line,” Hartman said. “By within big-box stores, but a different She’s not only able to confirm trends like ath-lei- ence better for customers. “Michelle,” she said, Body by Victoria bra and the development of the more common for department stores, since “not us hiding that Fit for Me many plus-size shoppers portion, we realized that aren’t happy with the sure, she know who wants it — and why. everyone can wear a balconette.” model we weren’t doing our job in in-store experience. This As the founder of intimates e-tailer True & Co., telling them the product is is primarily due to the modeling it Lam is working to dramatically change the way ince launching, the house brand has designed for them.” separation of plus-size women shop for bras. Starting with a two-min- grown at “multiples of percentages” Hartman said Fruit of bras and underwear. and actually ute fit quiz on Trueandco.com, customers are of the business, and has slowly started the Loom reversed the “Retailers have a lot of matched with a bra shape (rather than size), expanding into loungewear, with plans hierarchy and placed the opportunities to speak being the S Fit for Me messaging on to this consumer. This according to its “TrueSpectrum.” This guides the to expand its assortment into premium top, made it larger and shopper would love creative initial recommendations and familiarizes the cus- lines. Most bras are $44 to $64, panties are $16 to placed the Fruit of the for things to be more person tomer with providing personal information. From $22; a pajama set is $68. Although Lam calls the Loom logo underneath. synergistic. Now they there, the questions go more in-depth and the True & Co. algorithm agnostic — meaning that it The brand also added two have to search for their behind it.” recommendations more personal, as customers recommends both True & Co. products in addi- additional models to the underwear and bras,” browse, try on at home and become accustomed tion to other brands available on the site — this is packaging and removed Hartman told WWD. Kendall Jenner, on launch to a culture of constant feedback. And Lam has encouraging. (Of the 50 or so vendors it’s tested, the word plus size. — ARIA HUGHES of new line with sister Kylie found that women want to share even more current offerings include recognizable names like details, whether it’s through a quiz after a return Natori and Calvin Klein, and others that are harder or an e-mailed quiz tied to Valentine’s Day. to find Stateside, like French line Princesse Tam ACTIVEWEAR want to show off their bod- enough give to allow women line in the boutiques that The inspiration behind the fit quiz was to avoid Tam and Dutch brand Love Stories.) It also proved Kevan Hall ies, not look like one of the to freely swing a golf club. already sell his eveningwear, the often uncomfortable fitting room experience. to investors that women can, actually, self-report Tees Off guys,” Hall said. Thoughtful The Made in L.A. line fea- he said it is also gaining trac- The result has Silicon Valley investors excited what they want. She declines to provide revenue, design details include tures mostly bright colors tion for tennis and daywear, about the splash this could make in the estimated but says that business has doubled already this OLos Angeles-based racer-backs and armholes and heat-transferred original and he plans to expand into designer Kevan Hall, whose that don’t create “back fat” prints. Wholesale prices yoga, cycling and swimwear. $10.9 billion U.S. intimates market — more than year after strong growth in 2014. gowns have been worn by and pockets positioned to range from $35 to $50 for “I’m taking care of women $6 billion of which was spent last year on bras In the Bay Area, investors are used to fielding Michelle Obama, Allison Jan- avoid a bulky line when golf tops, $45 to $55 for bottoms from morning to evening,” alone, according to The NPD Group. terms like “customer-use case” and “high-margin ney and Vanessa Williams, balls or gloves are placed and $70 to $95 for dresses. he said. business.” Lam is comfortable with these. But is moving from the runway inside. The clothes also have While Hall is launching the — MARCY MEDINA she’s equally as fluent in terms like “chicken to the fairway with a ladies’ “Women are saying, wings” and “busting out” (which are unfavorable golfwear line called Kevan symptoms of an ill-fitting bra, to the uninitiated). Hall Sport. ‘Wow, there is a new and Thus, she is often asked what it’s like to talk about Hall said he listened to his clients, who told him the different way and the bras with “mainly dude investment committees,” market lacked luxury looks but she credits her history for giving her confi- for the links. One of his long- lingerie industry is starting dence to go talk about underwear. “I have been time New Orleans clients, to listen to me.’” in the business before, so I know what it means to Beth DePass, also became articulate in a way that investors can get behind.” his partner and design collaborator in the line. Michelle Lam, True & Co. founder After the most recent round of funding, Lam says she took a step back to decide what “true “This line is for women with sophisticated taste who north” was for the company. The result was a mis- don’t want to run around sion to harness millions of pieces of information in yoga pants during the “The intimates market in the U.S. is dominated to create or provide products that celebrate her day,” he said. Hall fashioned by one dominant brick-and-mortar player, with a customers’ unique body shape and taste. This is technical fabrics with mois- specific look for a certain type of customer,” said just one of the projects on the horizon. ture-wicking, antibacterial True & Co. investor and Cowboy Ventures founder “As a woman who has been through many and UV-protection prop- Aileen Lee. “No one had figured out how to make career incarnations, and has been on my own erties into tops, bottoms [bra-shopping] a better experience, but she [Lam] personal journey to find myself, that’s a really lib- and dresses that borrow from some of his elegant has the quiz and the data-driven approach.” erating moment when you know who you are and eveningwear silhouettes At a time when the Harvard Business Review is what you want and what will make you happy,” such as a ruffled skort and a calling “data scientist” the sexiest job of the 21st Lam said. “It’s more than just, like, lifting up your scuba-style dress.

century and signing into a Web site via Facebook Xxxxxxxx Xxxxx boobs, right? It’s a whole outlook shift.” ■ “Women who are in shape

18 AUGUST 2015, No. 1 WWD.COM Photograph by BYLINE_NAME Photograph by WINNI WINTERMEYER WWD.COM AUGUST 2015, No. 1 19 EDITED BY EVAN CLARK operated by his brother Barry. After working as a RetailBriefs shoe buyer at Barneys New York, Kalinsky decided Retail he wanted to open his own store in Atlanta. “I Agenda wanted to live in a city where I would be comfortable as a young gay man,” he said. “Plus, there were no good women’s stores in Atlanta. My father reluctantly agreed to be my partner.” DOUR OUTLOOK nd they said it would never last. Bob Ellis opened at the upscale Phipps Plaza In 1999, when Jeffrey Kalin- in 1990. Running the store “was a magical time,” Back to School sky opened his Jeffrey flag- Kalinsky recalled. “Oh, to be 28 and have your OAs kids prepare to head ship on a desolate stretch of first baby store.” The 4,000-square-foot unit did back to school and back to West 14th Street in Manhattan’s $2.5 million in 1990. “In a few years we were easily college, store executives Meatpacking District, he faced doing $5 million annually,” he said. are more focused on how A to get them back to retail. a Greek chorus of naysayers He made his move into ready-to-wear, renam- As the season begins to who warned customers would never venture ing the store Jeffrey, opening a Jil Sander QUOTED peak, the numbers haven’t to the far west environ, much less risk getting a shop, and selling Prada, Dries Van Noten, Ann “The fact looked good. Christian Louboutin or Clergerie heel caught in Demeulemeester and Richard Tyler Couture. “I A survey of 8,500 house- the cobblestone streets. wanted to dress these women,” Kalinsky said. “I that Disney holds taken late last month “People thought I was out of my mind,” Kalinsky didn’t like the way they were dressed.” by Brand Keys indicated a said. “This was the wild, wild west. I didn’t care Then came the move into Manhattan and parks are nearly flat spending trend September in sales growth. begin them. Less than 10 that there was nothing down here. I loved the Kalinsky was playing on an even bigger field. He with purchases dropping to But there’s a “late-to- percent start or finish b-t-s incredibly $650 from $652 a year ago. start, late-to-finish” element shopping in June, while street and the river.” now carries the likes of Chanel, Dior, Saint Lau- strong The slight drop follows a behind much of the com- 31 percent start and 12 In July, Kalinsky celebrated his 25th year in rent, Céline, Van Noten and Sacai, among others, lowered outlook on spend- plex sales-tracking going percent finish in July. business — his original store, which opened in bolstering those with collaborations, such as the speaks ing from the National Retail on as economists and And a trend with which 1990, still thrives in Atlanta. capsule collection that Carolina Herrera is doing Federation. analysts view the season, retailers will have to cope Jeffrey New York has been a constant presence for the store that will bow in February. to what There’s been little to increasingly characterized as they attempt to boost in the Meatpacking District, even as designers Then there is Kalinsky’s charity Jeffrey Fashion suggest an uptick in sales by procrastination, confi- their figures for the third such as Alexander McQueen and Stella McCartney Cares, which he founded in 2001 and calls “a labor customers activity in recent weeks. In dence among consumers quarters of the fiscal year: came and went, replaced by brands such as Apple of love.” Yearly blowout events in New York and the final full week of July, that promotions will be in 6 percent plan to start b-t-s are spending chain-store sales fell 0.2 place when they want them in September, and more and Levi’s. Kalinsky’s real estate decision seems Atlanta — many with barely clad male models — percent from the prior and a growing tendency than three times that num- prescient now that the High Line and Whitney attract 600 and 800 guests, respectively, and have on — week, with furniture stores to separate the items that ber, 19 percent, will finish Museum of American Art have sprouted up around raised $5 million for organizations that support experience continuing to prosper their families need from during the month. the 10,000-square-foot store and the neighbor- LGBT civil rights, LGBT youth education, HIV pre- while department and those that they want. But while August’s hood seems poised for another boom. vention and breast cancer research, among others. and being apparel store volumes Whatever the outcome, greater importance grows, But rents are rising so precipitously that Kalin- Nordstrom in 2007 upped its stake in Jeffrey to remained weak, according there’s little doubt that those watching the market sky himself may be priced out of the neighborhood 90 percent. As part of the original deal, Kalinsky entertained to The Retail Economist August, the month when aren’t seeing encouraging LLC and Goldman Sachs. many students begin to signs, even as they remain when his lease expires in April 2019. “I’m starting took on the job of raising Nordstrom’s designer — and that’s Retail Economist chief return to classes, will be open to them. Craig John- to look at real estate,” he admitted. “We had a profile. “I helped to plant the designer flag for their economist and principal pivotal in whether b-t-s is a son, president of Customer great meeting with the landlord. I think we’ll able business,” he said. “I was able to strategize and what stores Michael Niemira had earlier disappointment or the sur- Growth Partners, said most to reach an agreement, but it’s too early to say.” work across all categories and make a lot of prog- predicted a 2.1 percent prise that so many retailers mall-based and apparel-fo- ress. I helped evolve the business to a different are not increase in b-t-s sales, have been waiting for. cused retailers were ending level. I played a role in establishing relationships providing to $42.5 million, and a 2 As The NPD Group the second quarter “on a with Dries Van Noten, Balenciaga, Saint Laurent, percent growth rate for recently said, it so happens downbeat” with “footfall… “He’s not avant-garde. He’s weak almost universally Gucci, Prada and Céline.” to the same apparel, to $23.6 billion. the final week of summer He expects upcoming is not only the month when across the mall.” a pretty traditional guy.” Nordstrom said its designer business under degree.” tax holidays to give sales the majority of shoppers “The only semi-good Kalinsky’s leadership grew by triple digits on a Pete Nordstrom, Nordstrom, on Jeffrey Kalinsky. a boost, while August, with finish their b-t-s shopping news is that some comps percentage basis. Michael Gould, former a 1.8 percent increase, excursions, but also the are ‘less negative,’” he said. “Jeffrey had a skill set and talent that we didn’t Bloomingdale’s chairman would lag both July and month when the majority — ARNOLD J. KARR necessarily have,” said Pete Nordstrom. “It’s help- At Kalinsky’s disco-themed 25th anniversary ful for us to be aligned with someone who brings bash last month hosted by Ladyfag and DJ’d by a level of credibility. Honey Dijon, Nordstrom was commemorating “To get the best out of Jeffrey is to let him focus MILLENNIAL SQUEEZE a milestone of its own — 10 years of owning the on the things he likes to do,” Nordstrom added. Student Debt Piling On Jeffrey business. The event, held in the store, fea- “We own [his] business and he runs it. Anything tured buff bare-chested bartenders, female greet- else we get on top of that is like frosting on the Mean Student $20,926 ers sewn into skintight sequined disco dresses and cake. We’d be open to additional Jeffrey stores. For Loan Balance the requisite drag queen, voguing for the crowd. Jeffrey, they are like children. He feels accountable for 25-Year-Olds $15,912 By now, the buttoned-up Seattle clan have for them and we don’t want to dilute that.” become connoisseurs of the downtown scene, The department store retailer is leaning on $10,649 thanks to Kalinsky. When Nordstrom purchased Kalinsky for its own New York flagship opening on its majority stake in the New York and Atlanta 57th Street in 2018. “He’s an important contribu- stores in 2005 for an estimated $40 million to tor,” Nordstrom said. “He’s got a great perspective $50 million, Kalinsky seemed a tad intimidating. as a person who created a business in New York. “There was all this anticipation based on his We’re coming in and trying to create something. reputation,” said Pete Nordstrom, president of We want him to be engaged in the whole thought Nordstrom Inc. merchandising. “Jeffrey has a big process of what the store can be. reputation in our industry. What struck me most “I wish we could leverage him in a bigger way,” is that the store didn’t have all the trappings that Nordstrom said. “He’s a talented guy. We would a lot of luxury designer stores have, the opulence consider opening a Jeffrey boutique inside the 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 and museumlike exclusivity. It was a very inclu- New York store. We’ve done some things with the Source: Federal Reserve; Bureau of Labor Statistics sive place. Jeffrey label before and we may do more. There’s Jeffrey at 25 “He’s an understated guy,” added Nordstrom. an ongoing discussion based on the things he’s OIn some ways Millen- that group is leading the but are seeing their job Reserve, student debt “He’s not avant-garde. He’s a pretty traditional interested in. The door is completely wide open. nials have it all, from the comeback in denim sales prospects improve. levels for 25-year-olds Jeffrey Kalinsky takes stock of his specialty guy. He loves beautiful things and cares a lot about We have a hole in the ground” and the company largest numbers of any and the boom in hosiery But for the younger half nearly doubled between generation in U.S. history consumption. of the 18-to-34 year-old 2003 and 2013 and the quality and timeless characteristics.” needs to fill it. business and working with Nordstrom. — 83.1 million, according As the Pew Research demographic, navigating median income of families Kalinsky grew up at Bob Ellis, the shoe business As for the association with Kalinsky, “It’s one of to the U.S. Census — to Center reported last week, into and through adult- headed by someone By SHARON EDELSON founded by his father, Morris. It is still the preem- the best decisions we’ve ever made,” Nordstrom historic levels of student they’re more likely to be hood remains a challenge. under 35 stood at just inent shoe store in Charleston, S.C., and is now said. “It’s paid big dividends for us.” ■ debt. The older half of living with their parents According to the Federal $35,300 in 2013.

20 AUGUST 2015, No. 1 WWD.COM Photograph by RYAN PFLUGER WWD.COM AUGUST 2015, No. 1 21 EDITED BY JEAN E. PALMIERI AND ALEX BADIA DECONSTRUCTED Briefs Agenda INDIGO GARMENTS ¬ Deconstructed Indigo Garments cofounder Casey Egan, who launched the Melbourne-based brand with actress Ella Rose Foord in 2014, thought there was a hole in the men’s market for heritage denim with innovative tailoring. The designer, who previously worked at Levi’s in the U.S. and Wrangler Jean in Australia, also noticed men making their own changes to denim. “They were tailoring them and changing them and Splicing working on a new leg or cutting the leg in,” said Egan. The multisensory merino wool exhibition. “We wanted to offer those These five brands are shapes in premium fabrics.” FRAME The brand, which also TEXTILES Ercole Botto Poala, chief injecting newness into produces women’s, manu- Reda Mill executive officer, at the New facturers its jeans in China Celebrates York event. “So we went to the men’s denim market. using Japanese fabrics. Egan ¬ Frame has created buzz in the women’s market with fashion-driven our most important markets plays with proportion and pieces and celebrity collaborations with model Karlie Kloss and photogra- 150 Years to celebrate.” By ARIA HUGHES offers silhouettes such as phers Inez van Lamsweerde & Vinoodh Matadin. Now, founders Jens Grede To commemorate the OReda has been produc- a drop-crotch tapered style and Erik Torstensson want to create a similar excitement in men’s wear. milestone, Reda partnered ing luxury fabrics in Biella, and a cropped, slightly flared “We started the women’s line because we felt like denim was no longer a with The Woolmark Company Italy, since 1865. Now the ith the rise of the men’s ath-lei- model. “I personally want to fashion item, but for men it’s more about the concept of style rather than on a multisensory exhibit company is on a worldwide sure trend — the NPD Group said wear looser garments and fashion,” said Grede, who added that men’s product currently makes up showcasing the process that RON HERMAN journey to mark its 150th the cropped jean looks great 5 percent of the business, a figure he expects to grow to 30 percent over takes merino wool from raw U.S. sales of activewear were up anniversary. That journey with a boot,” said Egan. the next couple of years. “We’re not pushing the envelope on classic men’s fiber to finished fabric. The 6 percent in the first quarter of started with an event in Milan ¬ Ron Herman, who owns The line, which retails from styles. We are just making small tweaks that modernize the fit.” exhibit included photographs this year — the common narra- in February, followed by one Ron Herman stores in $190 to $290, is sold on the The men’s line launched in 2014 with one style and 11 washes. Now the commissioned from the tiveW is that denim is what’s taking the hit. in London and then New York. California and Japan, brand’s e-commerce site collection, which retails from $200 to $220, features two silhouettes in a Magnum Photos Agency that It will continue to Berlin in While that’s true to a certain extent — NPD also admits the denim category is and features 10 sku’s across variety of washes. Grede said the brand will introduce denim jackets, shirts, will used in a book, “150,” to November. found sales within the men’s denim category were crowded. women’s and men’s, but Egan cashmere sweaters and T-shirts in later seasons. be released later this year as “We thought we would go down by 2 percent from last year in the same time “Of course the market is plans to double that with more To further push its vision for men’s, Frame recently tapped actor Matt a tribute to the company. where our customer is,” said frame — it hasn’t stopped brands from entering saturated, but there’s always tops and knits next season. Dillon to front the brand’s first celebrity men’s campaign. — JEAN E. PALMIERI the market. room for good product,” he “It’s never really a good time to launch a denim said. That’s why Herman brand, but we just felt like consumers are always launched his own line of SIMON MILLER looking for something new,” said Casey Egan, jeans in 2012. The collection who cofounded Deconstructed Indigo Garments, was originally designed by ¬ Creative directors a men’s and women’s denim line, in 2014. “No mat- denim veteran Simon Miller, Jake Sargent and Daniel but now Brian Kaneda, who ter what trend comes through, denim will always Corrigan, who were nom- also serves as a buyer for have a place. We just want to challenge people inated for a CFDA/Vogue Ron Herman boutiques, to think differently about the way they wear it.” Fashion Fund last year, joined designs the assortment. Egan’s line joins four other men’s denim brands Simon Miller’s eponymous Herman told WWD that he label in 2011. Up until now the that are hoping to refresh the category by offering initially only had plans to sell designers, who are inspired interesting washes, special details and new silhou- it in his stores, but the line by Japanese textiles and ettes that move beyond the skinny jean. has since been picked up by indigo dyeing, have focused retailers including Mr Porter on washes, but for spring and Le Bon Marche, which 2016 they will introduce a installed a Ron Herman new fit for the first time. pop-up late last year. “We have a narrow and The California-inspired slim fit, but we are working collection, which retails from on something wider,” said $270 to $1,200, is made in Sargent. “It’s a much more Los Angeles from Japanese A look from fashion-forward silhouette.” fabrics. Each season the fits the collection. The current collection, remain the same – a tapered, CAPSULE COLLECTION R13 which is made in Los Angeles, slim and straight leg – but Modern History includes T-shirts, outerwear The label began in the washes and details provide a and shirts along with washed British heritage label Wol- same area as a hosiery man- point of difference. O Japanese selvedge denim sey, known for its woolens ufacturer in 1755, and evolved Classic five-pocket ¬ This New York-based brand started with women’s and men’s in 2009, that’s tinted or distressed. and outerwear, marks its over the years to incorporate straight-leg styles made from but took a short hiatus from the men’s collection before reentering the cat- The line is priced from $250 260th anniversary this year outerwear, military garments Japanese selvedge fabric egory last year. R13‘s designer, who prefers to remain anonymous, admitted to $350 and is sold at retail- and the label’s creative direc- and sportswear. are updated with intricate that he was initially hesitant about moving back into men’s, but said the ers including Steven Alan and tor Chris Lee has gone back In 2010, Jamey Hargreaves stitched patchwork detailing current mood within the market swayed him. Barneys. to the company’s long-es- — whose family founded and a slim style is coated “I just felt like guys all kind want the same thing and they look like clones Corrigan said that its tablished roots to create a British retailer Matalan — with clear resin to create a of each other,” said the designer. “But men’s wear is shifting very fast and customers aren’t looking capsule collection to mark acquired the label, and set 3-D effect. we’ve launched at the right time when guys want something different. We for trendy items, but rather the milestone. about relaunching it as a “We have to inspire are looking at this as a growth vehicle.” pieces with strong details. The Made in the U.K. collec- heritage and performance customers to shop,” said R13 jeans, which are sold on the brand’s recently launched e-commerce “Men across the board are tion launches in September, sports brand. Photographs by GREG VAUGHAN Herman. “But I’m not trying to site along with retailers including Barneys New York and TheCorner.com, much more driven by product and comprises two coats, Prices for the collection Model: CHRIS BUNN at Wilhelmina make a fashion statement.” are designed in New York City and made in Italy from Japanese fabrics. details and product knowl- a sweater and accessories start at 50 pounds, or $78, for Styled by ALEX BADIA The line, which retails from $350 to $450, includes new denim silhouettes edge,” said Corrigan. “Our that take their cues from a beanie hat. Fashion Assistant: LUIS CAMPUZANO such as the Boy fit, which features a tapered leg with a drop crotch, and the best-selling product tends to Wolsey’s archives. The line will launch at Skate, which has a fuller thigh. be our most special product. All the designs are made at Wolsey’s London flagship on “Men’s wear will slowly shift,” said the designer, “and these pant shapes Whenever we try to strip Wolsey’s factory in Leicester, Soho’s Brewer Street. will become a regular thing.” things down, it doesn’t work.” England. — NINA JONES

22 AUGUST 2015, No. 1 WWD.COM WWD.COM AUGUST 2015, No. 1 23 Très Chic Nile Rodgers and Chic whipped the Hamptons scene into a frenzy. Photographs by Steve Eichner

A performer at Paddle Tracy Anderson Hannah Bronfman & Party for Pink. Nicole Miller

Think pink. That was the Rodgers, meanwhile, said the SAT mantra at the fourth evening was meaningful for him AUG annual Hamptons because, “I’m a cancer survivor 1 Paddle & Party for Pink myself.” on Saturday, in Bridge- The disco star — who just hampton, N.Y. Gwyneth Paltrow, released a new album with his Lena Dunham and Nile Rodgers band Chic in June — said his re- were among those decked out in surgence onto the music scene is rosy hues for a benefit that raised due to his 2013 collaboration with $1.6 million for the Breast Cancer Daft Punk, which has won him a Research Foundation through do- new kind of fan to his music. “I’ve nations and a silent auction of 11 never been recognizable, which special paddleboards designed is fine…but being in that Daft Punk by the likes of Tory Burch, Aerin video was the first time people Lauder and Oprah Winfrey. started to see me,” he said. “Be- “I feel so lucky that there are cause Daft Punk has the robot a few people on the planet who thing going on, a lot of people care about what I have to say and who had never bought Daft Punk that I have the opportunity to talk records before or heard them about things that are important thought that Pharrell and I were to me,” Dunham said. While the Daft Punk, and the robots were “Girls” star has often turned her our cool props.” attention toward women’s repro- After cocktails, Chic delivered Laird Hamilton and ductive causes, she said, “Breast a rousing performance that Gabby Reece cancer research is a new frontier sent the Moët & Chandon-fizzed Hilary Rhoda for me. I feel really lucky that the crowd into a raucous, Jack people at BCRF were willing to Rogers-stomping dance scene. educate me.” — MISTY WHITE SIDELL

Lisa and Richard Perry

Nile Rodgers with Lena

Dunham in Lisa Perry. Gwyneth Paltrow

24 AUGUST 2015, No. 1 WWD.COM EDITED BY TAYLOR HARRIS AND ERIK MAZA WWD.COM AUGUST 2015, No. 1 25 Photograph by NYRA LANG Styling by MAYTE ALLENDE Hair by JOSUÉ PEREZ / TRACEY MATTINGLY Makeup by MATIN / TRACEY MATTINGLY Arts & Culture Story by LEIGH NORDSTROM Report Card Vionnet’s leather to attend school at Juilliard — recent dress. Necklace Tony winner Alex Sharp was among by Astley Clarke; her classmates. Shortly after gradu- earrings by ating, she was cast in the acclaimed Gisele Picks an Unwise Disguise Samantha Mills; rings by Catbird; off-Broadway pop opera “Natasha, From Pierre’s Prince Charming to Tyra’s Power Bitch, here are the best and worst of the week. bracelet by Lillot. Pierre and the Great Comet of 1812” and gave what the New York Post described as a “star-is-born per- DHis boy-next-door DThe bowl cut — DThe Vice DReligious formance.” In December 2013, she look works wonders risky business for President should and cultural joined “Hamilton” when it was in its on the big screen, anyone other than use SPF 50 when insensitivities aside, earliest incarnation. but in the world of a mom DIYing her hitting the golf this could be a real fashion, that can’t child’s haircut. But course, especially money-saver. No save this strangely she has some nice if he’s thinking one would notice “A lot of times shrunken style. lowlights. of running for her “deflated president. breasts” and DThe soft- DWhoa. crow’s-feet. when people come shoulder cropped Between the DThe light blue backstage, they’re silhouette of the shoulder shirt paired with DThe blazer is too pads, the the geometric backpack sort of stunned. small for him, yet bright red patterned red tie is as big, the sleeves are hue and the I-mean- gives him British shapeless And I’m like, ‘Don’t too long. business pose, this banker flair and brand look is aggressive, that shows his neutral as worry, I’m on the DSomething is going on in Eighties power worldliness. the burqa. bitch. She frightens It’s a little same boat.’” — Hollywood with DAlthough this suit leading men us. Even the rings is nothing to rave matchy- Phillipa Soo wearing skinny are scary. about, it seems matchy. khakis. This pair in appropriate for him. DThe gold thongs Army green works However, a more are bare and a “I came to New York for school, and well with the beat-up fitted silhouette little glitzy — not to The shoes are the then I did this amazing show that boot but clashes D would give him mention frowned only part of this look was received very well, with a great with the light blue a more youthful upon in public by that reads modern. group of people, and I felt like I was shirt and navy appeal. the Muslim religion. creating something that I was really blazer. A cool sneaker proud of, and then ‘Hamilton’ was my would’ve been more next big thing in New York,” she says. sensible. “Part of me is like, ‘When is it going to be crap?’ There’s a part of me that is aware that that’s a very special thing, FAIL but also I don’t really know anything else.” C D B- From its opening at the Public last November, “Hamilton” has resonated with audiences for reasons beyond Ed Helms Tyra Banks Joe Biden Gisele Bündchen* its theatrical ingenuity. It’s been ; Bündchen by CHP/FameFlynet Pictures; Pictures; CHP/FameFlynet ; Bündchen by praised as an allegory of America’s ter Gatti/Splash News/Corbis ter DThe pulled-back DTrim your beard, DThere’s no DHe’s the spitting long struggle with race and immigra- style shows off the you look like a goat. quicker way to image of his late tion, particularly at a time when the fact that this woman look fashiony than father, Stefano, with DThe three-piece two topics are at the forefront of the does not age. suit fits him well lopping off your hair. the straight nose, The pixie has a nice, chiseled features national conversation, and also for DThe tuxedo lapel but when paired its cast, one of the most diverse ever halter and cinched with the two-tone messy texture to it and beautiful wavy on Broadway. waist emphasize graphic tie, the and her face can hair. That’s the hair “It kind of messes with your whole her impressive round-collared handle the cut. Plus, of Prince Charming. it also shows off her concept of gender and race. It feels bosom in shirt, pocket DIn this perfectly like now. Like, ‘Oh, this is what we’ve a classy, watch, pocket cool ear cuff. tailored white tie been waiting for,’” says Soo, who relatively square and gold DThe collar goes and tails he would First Lady of the Theater is Chinese-American. “It’s a nice covered- up statement buttons, with the Peter Pan be the envy of reminder that being in this country, way. Thumbs it’s too emotionally ’do, but we could do everyone at last being an American, means that up on the draining. without the floppy year’s Met Gala. safety-pin bow. Also, a lacy you’ve come from something else.” DWe are all for DAt 6 feet 2 inches, Phillipa Soo soars in broach as an bra would have Much like her first big show in New a playful pant the traditional York, Soo has been singled out for unexpected proportion, but the worked better evening ensemble alternative to underneath the her performance — The New York ultraskinny cropped works great with necklace bling. top, rather than “Hamilton,” Broadway’s Times called her “fabulous” in an silhouette feels a his elongated this full-coverage early review — and in particular for DThe shoe is edgy bit out of place with silhouette, perfectly and cool with a the vintage flair of camisole. That said, fitted pants and her showstopper, “Helpless,” which the look has a little tells in a single number of Alexander touch of tribal red the ensemble. The patent leather hottest show. around the ankle, whiskey colored bit of everything — shoes. And the and Eliza’s courtship and marriage. but, if we’re telling shoes match the lace, military vibes, diamond shirt studs It is slowly dawning on her that she the truth, the straps cane — even so, he collars, bows — and make the outfit may be part of one of those original give her cankles. should lose both. somehow it all even chicer, if that’s “Hamilton,” “Hamilton,” “Hamilton.” Michelle) to Madonna have scored For veterans like Miranda and near the Rodgers taking a rare break ensembles that’s likely to be talked works together. possible. Since it opened in January at The front-row seats to the toughest Jonathan Groff, who stars in the from rehearsals just a few days be- about for years, a point that was Public Theater in New York, Lin- ticket on Broadway. And somehow show as King George III, the hubbub fore opening night on Aug. 6. “We’re underscored when the actors on Manuel Miranda’s “Hamilton” is all on the road to the Richard Rodgers might be all too easy to handle. But still working right now. It’s not like, ‘And “Hamilton” performed “What I Did for anyone can talk about in the theater. Theatre, “Hamilton” has become the also thrust into the spotlight has now we’re here, on Broadway!’ We’re Love” in the spring with some of the Critics have gone out of their way first show since “The Producers” been a 25-year-old actress with only changing lines, we’re re-blocking…” original cast members of the seminal to come up with new superlatives to become a crossover theatrical one prior credit to her name, and she A Chicagoan who practically grew Public musical “A Chorus Line.” for a musical that’s only on its event, the subject of conversations seems to be taking it all in stride. up on the stage — her grandmother “A lot of times when people come B+ D B+ A surface a portrayal of the first U.S. not just on Broadway but op-eds in “My life is just full ‘Hamilton’ right was a concert pianist, her mother backstage, they’re sort of stunned,” treasury secretary. Everyone from Washington for its deft mix of show- now,” Phillipa Soo says. The actress, worked secretarial jobs in the the- Soo says. “And I’m like, ‘Don’t worry, Salma Hayek Jidenna Kate Mara Pierre Casiraghi Hayek by Steve Granitz/WireImage; Jidenna by Shareif Ziyadat/Getty Images; Mara by Marcus Ingram/Getty Images; Casiraghi by Wal by Images; Casiraghi Ingram/Getty Marcus by Images; Mara Ziyadat/Getty Shareif Jidenna by Granitz/WireImage; Steve by Hayek President Obama (and First Lady biz pizzazz and social commentary. who plays Eliza Hamilton, is at a café ater — Soo came to New York in 2008 I’m on the same boat.’” ■ Images Chip Somodevilla/Getty Biden by Vincent Sandoval/WireImage; by Images; Banks Michael Loccisano/Getty by Helms photograph

26 AUGUST 2015, No. 1 WWD.COM *Allegedly WWD.COM AUGUST 2015, No. 1 27 BY KAREN PARR-MOODY ILLUSTRATIONS BY The Guide to Nashville for the first-time explorer. City File STUDIO MUTI The Music Insider The Southerner The Hipster

Union Common, a restaurant wedged narrowly Husk’s menu — directed by James Beard Hot spots have popped up as fast as chefs’ between Broadway and Division streets, is an Award-winning chef Sean Brock — changes James Beard Award nominations. Rolf and Tuning In to Nashville easy stroll from Music Row, making it the new daily and features only Southern ingredients. Daughters is the Germantown brainchild wine-and-dine spot for country stars and music Nearby farms supply grass-fed, grain-finished of Philip Krajeck, who has garnered multiple insiders. The menu ranges from small plates Angus beef, country hams and sustainably nominations. The menu of rustic Italian fare

EAT to the decadent Nashville Tower, an iced array grown produce. Here, Southern flavors find a emphasizes house-made doughs, seasonal COUNTRY of shellfish. gastronomic temple, figuratively and literally; produce and whole-animal butchery. POPULATION Before Nashville was dubbed an “It” city, it was known as the USA 648,000 Husk is in a beautiful mansion from the 1870s. OFFICIAL LANGUAGES English LAND MASS 497mi2 home of a) the Grand Ole Opry, and b) Southerners, creating MAJOR INDUSTRIES Music, health care, publishing and tourism The 5 Spot bills itself as The Oak Bar’s dark wood-paneled walls ooze No. 308 pairs mixology with a ﬂavorful mélange. Newcomers have added edgy music, clubby sophistication. Located in the NOTES Hermitage Hotel, it features a wide O The 42-foot-tall Athena sculp- “the musician’s hangout:” what many Nashvillians James Beard Award nominations, contemporary art, escalating ture in Nashville’s Parthenon is, Wanda Jackson, Kid selection of expensive whiskeys, crave: a chill vibe. And in part, a portrait of Elvis Presley. along with a menu from the Nashville sculptor Alan LeQuire Rock and Sheryl Crow esteemed Capitol Grille. Pinewood Social adds six

tastes and a burgeoning Nashville Fashion Alliance. Says Matt was inspired by the singer’s DRINK “perfect fifth-century-BC classi- have all played at this reclaimed wood bowling Eddmenson, cofounder of local jeans brand Imogene + Willie, cal features.” dance party venue. lanes to its ambience. “It’s all moving so fast.” The Hutton Hotel is a music industry favorite Opened in 1910, the five-star Hermitage Hotel Architect Nick Dryden coaxed the 404 Hotel’s located a few blocks from Music Row. The has welcomed Bette Davis, Greta Garbo and six five rooms out of a mechanic’s garage to create contemporary-style lobby includes local artwork, American presidents. Italian sienna marble and this cozy downtown nest, which offers Sferra and the hotel is filled with sustainable furniture, Russian walnut are among the materials that linens and Malin + Goetz toiletries. bamboo flooring and energy-efficient EcoDisc decorate the building; Persian rugs are also in elevators, all part of its eco-friendly commitment. the mix. STAY

At the Schermerhorn Symphony Center, Adelicia Acklen, the 19th-century owner of musicians watch fellow musicians perform the Belmont Mansion, had great taste Galleries in the Wedgewood- against the grand canvas of the Nashville — and major money. Completed Houston Arts District, Symphony. In the last decade the symphony in 1953, her villa is now a has gained listeners — beyond blue bloods — by museum that showcases including Sherrick & Paul backing country artists, including Willie Nelson, many aesthetic gems. One is SEE and David Lusk, are the Lyle Lovett, Wynonna Judd and LeAnn Rimes. in Adelicia’s bedroom: hand- blocked wallpaper made by latest in the ever-growing the fabled Dufour of Paris. art scene.

Manuel Cuevas, “The King of Cowboy Imogene + Willie is the go-to for custom-fitted Couture,” creates bespoke embroidered and Hit Billy Reid for luxe preppy jeans. At Wilder, one finds Electra Eggleston rhinestone-studded garments at his fashion, and Hatch Show home fabrics, inspired by photographer William atelier, Manuel’s, and has made suits Eggleston’s drawings. And a guy can’t get the for singers from Elvis to Jack White. Print for hand-screened Nashville look without a handmade Otis James Holly Williams, a country singer (and posters like those that bow tie. SHOP granddaughter of Hank Williams), sells high-end fashion at H. Audrey. touted vaudevillians and Opry stars.

Robert’s Western World downtown is the For the lucky few, the hot ticket is a live show at Bluegrass, classic country, ultimate honky-tonk, where live bands lure both Jack White’s Third Man Records, one of dozens blues and Western swing keep hipsters and white-haired sweethearts onto the of recording studios in the hip enclave of East dance floor. With its boot-lined walls and top- Nashville. Various acts from White’s label have The Station Inn hopping, as notch musical lineup, it imbues its tourist-addled played on its stage, including Alabama Shakes, have Reba McEntire, Norah street with authenticity. Flat Duo Jets and The Kills. EVENTS Jones, Robert Plant and Dierks Bentley.

Louis Vuitton opened in 2006, development that launched in 2007. Other shops are scattered about: The Housing Fund. “This is so that Retail and followed by Nordstrom in 2011. The Anchored by Anthropologie and jeans store Imogene + Willie, in the 12 we can not only help those people Business 868,000-square-foot store has Whole Foods, it is a blend of national South area, was among the first to learn a trade, but supply our industry amassed enough brands to make it and independent retailers, the latter gain national interest. Now, the newly with a skilled workforce,” she says. Scene a true shopping destination. These including Billy Reid, the fashion line founded Nashville Fashion Alliance Nashville brands supporting the include Burberry, Jimmy Choo, designed by a Louisiana native. wants to buoy area designers. Van alliance include Imogene + Willie, Billy Kate Spade, Tory Burch, Seven For Another indie is H. Audrey, a high- Tucker, chief executive officer, says Reid, Otis James, Manuel, Valentine A decade ago The Mall at Green All Mankind, Tumi, Michael Kors, end fashion boutique from country it is creating a sewing training acad- Valentine (by “Project Runway” alum- Hills — Nashville’s largest upscale Coach, Omega and David Yurman. singer Holly Williams, who opened emy for underserved populations na Amanda Valentine), Emil Erwin, retail development — was lacking Nearby is Hill Center Green Hills, it in 2007 “because we didn’t have through a partnership with the Elizabeth Suzann, NISOLO and Kayce in luxury. Then Tiffany & Co. and a 225,000-square-foot mixed-use very much.” Catholic Charities of Tennessee and Hughes (niece of Lilly Pulitzer).

28 AUGUST 2015, No. 1 WWD.COM WWD.COM AUGUST 2015, No. 1 29 WWD MILESTONES

ULTA BEAUTY'S 25TH ANNIVERSARY

Ulta Beauty is one of the hottest retailers in the U.S. prestige market, a fact that is explored in depth in the following pages, featuring interviews with the leaders who shaped modern Ulta and top brands that built the business. Its unique merchandising structure of mass, class and salon makes Ulta Beauty what The NPD Group’s Karen Grant calls “the trifecta of beauty.” She observes, “They have pillars to build upon and levers they can press.” With first-quarter growth of comparable-store sales at 9.7 percent, Ulta is just getting warm as it celebrates its 25th birthday.

By PETE BORN Photographs by MAURIZIO DI IORIO Typography & Illustrations by FABIAN DE LANGE

WWD.COM AUGUST 2015, No. 1 31 WWD MILESTONES

ULTA'S SILVER STREAK Stepping on the Gas

Ulta Beauty is celebrating its achievements, while keeping its eye on the future.

By MOLLY PRIOR Photographs by LUCY HEWITT

t 25 years old, Ulta Beauty is she added, referring to a competitive landscape one of the hottest beauty retail- that includes Sephora, Kohl’s Corp. and Macy’s ers in the U.S. with a reach of Inc., among others. A more than 800 doors, and plans The strategy reflects a key management tenet of to get bigger fast. Dillon’s that she calls “continuous improvement.” But despite its size and might, “We’re in a mode of being celebratory, but we’re beauty vendors and Wall Street analysts alike just getting started,” she declared. applaud the retailer for its nimbleness. The retailer is expanding its presence at a rap- Ulta’s constant tinkering with the mix, merchan- id-fire pace, opening approximately 100 units a dising and marketing is part of its quest to draw year with a goal of reaching 1,200 doors by 2019 in more customers. in a bid to introduce its nameplate to more con- “We are not complacent,” said chief executive sumers across the country. The store expansion officer Mary Dillon. “It’s an ever-changing world is part of Dillon’s five-year growth plan, adopted we live in….We’re always going to be in a mode of in 2014 and intended to result in 500 new stores, testing and experimentation. We can’t stand still,” an e-commerce operation that accounts for 10 ►

32 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES Stepping ULTA'S SILVER STREAK on the Gas

STEPPING ON GAS CONTINUED: percent of sales and com- a great opportunity that is for us to help them offers services across the chain. It’s also worked parable-store sales growth of 5 to 7 percent a year. understand the possibilities and give them offers with Ulta to create customized treatments, such Ulta also is testing a smaller-format store, which to come in and try the salon with services like as the Power Resurfacing Peel, or three 30-minute is half the size of its typical 10,000-square-foot blowouts and updos.” sessions over the course of three weeks priced at box, in two rural markets — Vernal, Utah, and Mor- Dillon said salon patrons spend two-and-a-half $40 each, or three for $90. ganton, N.C. — and plans to roll out several hun- times the amount and shop twice as frequently a Steve Kurland, global ceo of Dermalogica, said dred of them. It’s also looking at a 7,500-square- year as Ulta’s nonsalon customers. Dillon’s vision for Ulta centers on the customer. foot box in certain markets. At an Ulta store in Glendale, N.Y., a sign sta- “It’s really quite simple: She seems to have tioned alongside the salon read: “An invitation to focused the entire company on the total reason hen Dillon took the reins as new guests: $30 haircut and style.” It encouraged for being and that is the guest,” Kurland said. “It’s ceo two years ago, she inher- customers to book online at ulta.com/salon. a very ambitious vision, but it is backed up by the ited a beauty emporium that Elsewhere in the store, Benefit Cosmetics offers results that she has achieved in a short time.” W housed mass, prestige and brow-shaping and Dermalogica provides skin-care Wall Street analysts are also particularly keen salon brands, along with beauty treatments in its MicroZone pod. on Dillon. services, under one roof. This Dermalogica entered Ulta doors in 2006, and “It’s the best box out there,” said Oppenheimer ► democratic view of beauty retailing has amassed a legion of loyalists. After all, approximately 80 percent of its sales come from its 15.5 million loyalty club members. But there are still plenty of beauty shoppers who are unfamiliar with the Ulta name, and many who do know the retailer aren’t aware that it also offers hair, brow and skin-care services. Dillon acknowledges that Ulta’s name recognition lags behind many of its competitors. But she sees this reality as a huge opportunity, particularly since Ulta has yet to fully turn on its marketing might. Ulta plans to do just that in September, when it launches its first national advertising campaign, “Go Ahead, Lose Yourself,” across TV, radio, digital and social media. The campaign, coupled with Ulta’s growing store base, could help double its share of the U.S. beauty market to 6 percent, up from its current 3 percent, over the next five years, said several analysts. Ulta’s stepped-up marketing effort includes its UltaMate Rewards loyalty program. In early 2014, the retailer migrated all program members to one platform and invited its sales associates to join so they can better explain the benefits to consumers. “The way it works is the more you spend, the more points you get, and our guests love that simplicity,” Dillon said. “But behind that, we have the ability to use good, keen consumer insights to partner with our vendors and say, ‘How can we help you understand how to grow your brand?’ And for our guest, she gets more personalized offers.” Dillon said one of the most surprising findings gained from the data is that only 7 percent of its loyalty-card members have visited a salon at Ulta. “So now that we know only 7 percent of our guests have tried our salon, you can imagine what

1990 Ulta3 — which 1990 Ulta3 opens a cor- 1995 Ulta3 launches its 2000 Ulta.com is 2002 Ulta adds its first was named for the three porate office and its first first rewards program, launched. significant prestige brand, 25 pieces of the business: store in Lombard, Ill. Club at Ulta. Bare Escentuals. salon, fragrances and 2000 Ulta debuts its Y E A R S cosmetics — is founded as 1990 By the end of the 1999 Ulta3 becomes Ulta private label with a cos- 2003 Ulta tests a second OF a discount beauty retailer year, Ulta3 has five stores and focuses on additional metics line. loyalty program, UltaMate ULTA by two former Osco Drug and a distribution center, salon services and more Rewards, to give guests presidents, Dick George all in Illinois. extensive personal 2001 Ulta celebrates its points on every dollar and Terry Hanson. amenities. 100th store opening. spent to redeem on anything offered at Ulta. ►

34 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES Stepping ULTA'S SILVER STREAK on the Gas

STEPPING ON GAS CONTINUED: analyst Rupesh Parikh, LEGACY Dillon’s focus on the customer also is winning calling it the go-to place for suburban beauty BUILDERS her points with Ulta’s vendors. enthusiasts. “It continues to enhance its merchan- Each chief executive officer Bare Escentuals has collaborated with the dising, which is one of the keys to their success.” of Ulta has driven the retailer to create a number of exclusives tailored to company to new heights. Ulta’s financial performance has kept those the Ulta consumer, using its customer relationship Here, a look at each former accolades coming. ceo’s accomplishments management data, or CRM. The retailer continues to grow at a staggering during their tenure at the “[Mary’s] brought a strategic vision,” said Bare rate, achieving $3.24 billion in sales in 2014, or beauty retailer. Escentuals ceo Simon Cowell. “She has a strong a 21.4 percent gain over the prior year. Its total brand and marketing background and most same-store sales, which include its e-commerce importantly, she has a great passion for the guest.” site, gained 9.9 percent during the year. He added that Dillon — who prior to joing Ulta in Terry Hanson 2013 was ceo of U.S. Cellular and held marketing lta has steadily attracted pres- 1990 — 1999 posts at McDonald’s Corp. and PepsiCo Inc. — has tige brands to the assortment. In Ulta’s first year, Hanson a natural curiosity about the business. He recalled It’s a path forged by former ceo raised $11 million in that shortly after she arrived at Ulta, she visited U Lyn Kirby, who wooed brands venture capital and opened Bare Escentuals headquarters in San Francisco by knocking on doors and dra- five stores and a distribution and spent the entire day with Cowell and his team matically improving the in-store center in the Chicago as he took her through the company’s history. She area. In 1995, he helped experience. Now Benefit Cosmetics boutiques then used these types of meetings to help inform launch the company’s are found in approximately 600 locations, and first rewards program, her vision for Ulta, said Cowell. “Something has Lancôme and Clinique boutiques each occupy Club at Ulta. The cofounder kind of shifted at Ulta. It’s asking what’s next for about 100 doors. The addition of these brands also launched ulta.com. Bare Escentuals and how can Ulta amplify that? has helped fuel those double-digit sales gains, as It’s thinking in a more visionary way.” prestige cosmetics and skin care lead the compa- Lyn Kirby Ulta continues to test new brands in the assort- ny’s growth. 1999 — 2010 ment, particularly though its Web site, where it Kirby transformed the While walking through the Glendale, N.Y., store, can gauge consumer interest before rolling out retailer from a mass-market where upscale brands such as Bare Escentuals and emporium to a national to stores. That was the case with Skyn Iceland, Philosophy are front-and-center, Dillon is quick chain that housed salon which the retailer began selling on ulta.com in to point out that mass brands, or what she called services and both September 2013, before introducing one product, “accessible brands,” are also an essential part mass and prestige brands Hydro Cool Firming Eye Gels, to stores one year of Ulta’s positioning and competitive advantage. under one roof. She also later, said Skyn Iceland’s president and founder “What we are all about is creating a differentiated established Ulta’s annual Sarah Kugelman. The range will begin rolling out environment, understanding the guest, where she Breast Cancer to more stores in August and is slated to be in all Research Foundation 800 Ulta doors by February. “It’s a game-changer shops and what she wants,” said Dillon. “We are campaign in 2009, always going to have competition, but nobody does which has raised more for us. It will double the size of our business,” what we do on the scale we do it. We’ve got all these than $10.5 million said Kugelman. categories, price points and services. It’s the notion to date to fund research. William Blair analyst Daniel Hofkin said of Dil- of all things beauty in one place.” lon, “She came in with fresh eyes and said, ‘How When speaking about strategy, Dillon frequently Chuck Rubin fast should we be growing? What is working and refers to putting the customers — and the store 2010 — 2013 what is not?’ She’s very good at identifying what Rubin introduced The Men’s associates — at the center of Ulta’s decision-making. Ulta’s strengths are. She’s not trying to make Shop in 2011, which “The guest insight is really driving our model includes fragrance, skin sweeping changes for the sake of it.” and the way we think about categories, products care and grooming. He Dillon prefers to take a more evolutionary and services. We are very focused on a [consumer] also increased Ulta’s square approach. “I am a big believer in testing and segment that we call the beauty enthusiast,” Dillon footage at a rate of about learning and not changing things too dramatically Congratulations said. “She’s somebody who absolutely loves to shop 20 percent a year, or more overnight. It’s too risky,” Dillon said. “If something for beauty. She likes to curate her own look, and than 100 doors a year. is not broken, I’ve learned not to go ahead and try walk across the store and pick from lots of great to fix it. Let’s sit back and try to hypothesize about categories and brands. When she wants assistance, what areas will continue to make us stronger.” she can get it, but sometimes she doesn’t. For her, it Now, she is fine-tuning, constantly asking, is absolutely critical that she can pick up a Maybel- “What can we do better?” line product, an Urban Decay product and a Murad Parikh at Oppenheimer said, “There’s so much product. She loves the notion of being able to put growth ahead. They have so much opportunity them all together.” in the U.S.” ■

2006 Ulta becomes Ulta 2008 NYX is added 2009 Ulta launches and Dermologica 2014 All loyalty program 2015 Ulta Beauty hits 800 Beauty. to Ulta's brand assort- annual Breast Cancer skin-care services. members are converted to stores in 48 states and ment, and the company Research Foundation UltaMate Rewards. opens its fourth distribu- 2007 Ulta goes public, launches Benefit campaign, which has 2010 Tarte is added to its tion center in Greenwood, with stock listed on NAS- Boutiques with Brow Bar raised more than $10.5 brand assortment. 2014 Ulta achieves its Ind. DAQ, raising $153.7 million. service. million to date. first $1 billion quarter in Q4 2011 The Men’s Shop is and reaches $3.2 billion in 2015 The company grows 2008 Ulta invests in its 2008 Ulta launches its 2010 The company rolls introduced, which includes sales for fiscal year 2014. UltaMate Rewards to 15.5 1.800.265.8480 second distribution center private label bath, skin, sun out Philosophy boutiques fragrance, skin care and million members. in Phoenix, Ariz. and hair lines. and expands its Benefit grooming. www.BrantInStore.com Brow Bars

36 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES

ULTA'S SILVER STREAK Key Brands

While Ulta Beauty carries hundreds of brands, six have been the backbone in significantly building

the business. Here, a closer look. By JULIE NAUGHTON ’

the L’Oréal Professional “We also support Ulta’s “Working as a strategic Products Division. “Our salon professionals with partner, we have shared L’ORÉAL early conversations were hair-color, texture [styling new ideas, developed PROFESSIONAL very focused on increasing products] and salon treat- and improved our sales, the quality of the salon ment products that have marketing and education Partner Since experience for both the over 200 sku’s,” continued programs, shared results Ulta consumer and the Ulta Parenty. Retail prices range so we could learn and 1995 stylists. Over the years, the from $8.50 for an Essie adopt best practices, and strategic partnership has nail enamel to a treatment we took some mutual led us to strengthen our mask from Pureology for risks to try new ideas that For L’Oréal Professional, mutual efforts in develop- more than $50. are in line with current Ulta Beauty has offered ing new service opportuni- Parenty believes that consumer expectations, success for multiple ties, experiment with new it’s been “a shared passion as well as pushing the brands, including merchandising ideas, test for the salon service envelope to anticipate hair-care brand Redken and learn on new products providers” that has built the future consumer desires and nail line Essie. and promotions, and backbone of the business. in beauty. We work closely “L’Oréal’s Professional improve our training and “We provide them the with Ulta on our national Products Division officially education programs.” education and support promotion calendar started selling Ulta Beauty Parenty noted that his they need to provide the as well as developing in 1997, when it was still division currently sells 600 best possible customer specific promotions that called Ulta 3,” said Pat stockkeeping units across experience and prosper as are tailored to the Ulta Parenty, president of five brands in Ulta. Ulta salon stylists,” he said. customer profile.”

38 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES

ULTA'S SILVER STREAK Putting on a New Face

Erwin Winkler takes in the scene at the Auburn, Calif., store.

Today, Ulta’s stores are in a much different place. That was clear when Winkler recently strolled through a store opened in February in Auburn, Calif. An example of the seventh iteration of Ulta’s store design is a far cry from the second- and third-iteration stores Winkler encountered early on. It combines an unprecedented number of prestige brands with mass brands and professional hair care, and upgrades the look to match Erwin Winkler takes Ulta from a the upgraded beauty selection. “The original DNA hasn’t changed, but it’s drugstore mind-set to a three-dimensional matured tremendously and, every year, con- tinuously matures, and the guest experience mass, prestige and salon emporium. has improved and continues to improve,” said Winkler, now Ulta’s senior director of store plan- By RACHEL BROWN Photographs by JUSTIN KANEPS ning and design. Ulta’s typical store houses some 400 brands hen Erwin Winkler was first and occupies 10,000 square feet with 950 square courted to join Ulta Beauty as feet dedicated to a full-service salon. Power cen- vice president of creative ser- ters are mainstays of Ulta’s retail real estate, but W vices more than a decade ago, malls are increasingly in the real estate mix. As of the Manhattanite had never May 2, the retailer operated 797 stores in 48 states heard of the specialty beauty and is progressing toward a goal of reaching more retailer. He was flown from New York to Chicago than 1,200 stores. to size up its retail format and what he saw was Winkler and his team of 14 store designers and a drugstore-like environment with aspirations planners get involved prior to Ulta signing leases. to be grander. It takes six to eight months for a store to be com- At the time, Lyn Kirby, then president and chief pletely designed and built out. “What we’ve really executive officer of Ulta, told him, “We want to get created in the store design is [a] kit of parts and a to a different place,” and Winkler, who formerly philosophy of flexibility,” Winkler said. held positions at Coach, Escada and Ralph Lau- The exterior is usually white to provide a fresh, ren, was sold. “My reaction was basically that I get clean invitation to enter the store premises, and it,” he said. “I try to bring as much style and lux- has orange awnings and a gray sign that appears ury to the store design as we can possibly afford.” white at night. Windows are decorated with ►

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Putting on ULTA'S SILVER STREAK a New Face

ULTA STORE CONTINUED: promotional and branded materials. An 80-foot frontage expanse permitting customers to gaze into the store is ideal. “As we’re starting to get more walking locations, we are starting to think about evolving the windows in a very diﬀerent way. That’s yet to come, but it’s deﬁnitely on our radar,” Winkler said. As customers walk into the store, tables stocked with value and important new items greet them. Those items are swapped out every three weeks or so. As customers travel deeper into the store, Winkler described how they go from beauty wants at the front — color cosmetics and fragrance — to beauty needs toward the back, where styling tools, professional hair care and the salon sit. Along the walls are lit arches, newer elements of the stores, dedicated to select brands and categories.

inkler, who majored in art history at Dartmouth College and obtained a graduate degree in W architecture from Harvard Uni- versity, likened the store layout to that of a medieval church. He said, “You have the high altar that draws you to the back. You have two aisles, instead of one main aisle, that take you to the back, and you have chapels on the sides.” Winkler’s imprints are everywhere. “I think about a lot of little things that you’re not supposed to notice, but that you do feel,” he said. Case in point: More views of the Ulta The prestige displays were updated around seven Beauty store in Auburn. years ago to move away from holes for each item, contain in-shelf lighting and add three-inch shelf strips to hold paper with extensive information. Winkler has also reexamined salon concepts The hallmarks of the prestige displays — they during his tenure. The salon is no longer hidden have lush graphics, are 11 inches off the ground, and walled off. It has a low glossy white wall, con- compared to four inches, and have four versus cierge desk and chairs for waiting that demarcate five shelves as well as internal illumination — are it, but customers can peer in. “The salon is set up engulfing more of the store. “It’s at a height that’s to be visible, to be animated as opposed to being more accessible,” Winkler said. “I always do the separate,” Winkler said. butt test. What woman in the world wants to shop Whether all services should be so open is up with her butt out. It’s that simple.” for debate. Ulta customers are happy to have their Winkler has been enhancing the aesthetics of the brows done right on the store floor. They are less Ulta-branded areas within the stores and, perhaps certain about skin-care services on the floor. on a bigger scale, renovating fragrance presenta- Going forward, Winkler’s challenge is to keep tions. By the end of the year, 75 stores should have the stores novel while handling a burgeoning fleet. redone, more intimate fragrance areas. “Everything He said, “It’s much bigger, but I certainly would should have a tester and clearly be brand driven never want to sacrifice the finesse that I think from the top. It didn’t have the tactile luxury and we’re able to do because it means something to experiential part that prestige had,” Winkler said. her [the Ulta customer]. It really, really does.” ■

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ULTA'S Key SILVER STREAK Brands

NYX

Partner Since 2009

NYX Cosmetics started with a two-foot spot on the planogram at Ulta Beauty — and now has grown to a 14-foot space, noted Brandyn Muegge, senior vice president of sales for the brand. “Ulta has been an amazing partner,” Muegge said. Congratulations “They like to think outside the box, which is perfect for NYX. Together we have created many unique programs that have helped build the business to the success it is today.” The retailer sells the brand’s 936 stockkeeping on years units both in bricks-and- mortar and on ulta.com. Items range in price from $4.50 to $25, noted Muegge. In addition to supporting their brands, 25 Muegge added, “they have worked to build their online presence and social Here’s to dreaming media, which is key to communicating with the beauty junkie.” [Ulta has] “allowed us big and making to try new things, and have used their reach to promote the brand.” She noted that NYX is IT happen together! developing Ulta-exclusive offerings for 2016, although she declined to discuss details. — JULIE NAUGHTON

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ULTA'S SILVER STREAK Prestige: Makeup Is Queen

any needs that aren’t Color, Kors Fragrances driving being met?’” she said. “They have to have growth at Ulta Beauty stores. gorgeous products, By JULIE NAUGHTON and it helps if there’s a story to tell, because our guests love to meet As Ulta Beauty brand founders. Then, celebrates its 25th we look for a partner.” anniversary, Tara Simon, In fact, that’s exactly senior vice president of how Ulta’s strategic merchandising, prestige partnership with color, specialty brands, It Cosmetics led to a skin care, fragrance cobranded prestige and trend development makeup brush collection. at Ulta, reflects on how “It was born out of the prestige part of the necessity — we didn’t business has influenced have a dominant prestige the retailer’s growth. brush collection, and that In the early days of was a major gap in our the retailer’s operations, assortment,” Simon said. fragrance drove the pres- tremendous sustained As well, she added, the tige side of the business. growth in color.” retailer often works hand Simon said Ulta’s portfolio Top-selling prestige in hand with its brands to of brands has “evolved brands include Urban create exclusive offerings, pretty dramatically” since Decay, It Cosmetics and say, a unique foundation then, expanding to include Tarte — all color brands — shade or a new mascara everything from color and L’Oréal Professional’s formula, or an Ulta-only cosmetics to hair care Essie and Redken labels. holiday set. “Our guests and nail care. As well, the retailer now love exclusivity, and And it’s color cosmet- sells prestige brands they expect it from us,” ics that are driving the often seen in major Simon said. popularity bus at Ulta now. department stores, such She noted that the L’Oréal Professional Products Division “There’s a lot of energy as Lancôme and Clinique. prestige fragrance cate- around the prestige color When looking for new gory “has enjoyed a bit of business,” said Simon, brands — and Simon is a resurgence since the is proud to honor ULTA on their 25th birthday pointing to the retailer’s careful, saying that she [winter] holidays,” saying large assortment doesn’t want to cannibal- that the Michael Kors Gold and accompanying ize existing business collection is doing “very educational techniques. just to have more well.” She said she’s also “We don’t emphasize names — she looks for looking forward to Luxe one category over the “white space.” Brands’ Ariana Grande another, but we’re seeing “I ask myself, ‘Are there fragrance, out this fall.

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ULTA'S Key SILVER STREAK Brands

shelves of Tarte spanning on product development, nine feet. Some of the sharing guest insights TARTE biggest growth we’ve seen or advocating for Tarte year-over-year, however, opportunities within Ulta.” has been with ulta.com, Added Bulishak, “[Ulta Partner Since which has been gaining has] been supportive and strength as a leading offered us opportunities 2010 beauty e-com site.” for exposure in-store, online “Ulta currently has one and in their promotional of our biggest retail assort- materials.” Tarte Cosmetics began ments — we have over 200 “Each season, we distribution in Ulta in stockkeeping units in their develop Ulta-exclusive sets August 2010 — and has doors,” said Candace Craig to participate in special never looked back. Bulishak, senior vice pres- animations both in-store “We first launched in Ulta ident of branding at Tarte. and online,” Kelly said. “We with eight shelves across, “From our Amazonian clay always partake in their 21 six feet of merchandising foundation and blushes to Days of Beauty initiatives space in 364 doors,” said our Lights, Camera, Lashes and we have an extensive Maureen Kelly, founder and mascara and Tartelette offering for the holiday chief executive officer of eye-shadow palette, our months. We work very Tarte. “We took a big leap of gondolas feature complex- closely with Ulta on our faith with them, as we were ion, eye, cheek, lip, skin care holiday program to make one of the only brands to and body, and our prices sure our exclusives and launch into all doors at that range from $16 to $49.” value sets really resonate time. We didn’t really know Kelly praised the retail- with their guests during what to expect, but they er’s team. “Tara Simon, the season. Through the were and continue to be senior vice president of years, Ulta’s input in all of amazing partners. Since merchandising at Ulta, our special products has 2010, we’ve grown with has really been a driving been vital to the success Ulta’s expansion to 800 force for us — whether we’ve seen in sales.” stores, and you can find 12 she’s offering feedback — JULIE NAUGHTON

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ULTA'S SILVER STREAK Where Brands Come to Mingle

located in easy-access Professional hair care, nail shopping centers rather than megamalls. A smaller and tools help to drive growth format is also being tested in select markets. By FAYE BROOKMAN for Ulta Beauty. New brands are a lifeline at Ulta Beauty and many shoppers visit the store Standing in front of a the average consumer for the latest trends. The PowerPoint illustrating Ulta buys from all [categories],” assortment spans about Beauty’s blistering sales Tomasi explained. “We 20,000 stockkeeping units expansion over the past offer convenience.” from 500 brands. But five years, Julie Tomasi Ulta Beauty is first and Tomasi added Ulta Beauty joked about her time at foremost a store for the doesn’t add new without the beauty purveyor. beauty enthusiast. But Ulta ensuring a product is a “I’ve been here five- Beauty knows sometimes solid shot at success. and-a-half years. Is it a enthusiasts, for whatever “We don’t want brands coincidence?” said the reasons, are on a budget. that cannibalize our exist- senior vice president of “They might buy an expen- ing business,” she said. “We merchandising. “We’ve sive mascara on one visit understand partnerships had some crazy growth and get a professional hair and work with our brands in that period.” treatment on another, but to nurture them to reach All kidding aside, the buy a less expensive nail productivity levels.” categories in her domain product,” she said. Among the catego- — professional hair care, Service is also posi- ries on the rise at Ulta professional nail, person- tioned in the middle of the Beauty are professional al-care appliances and spectrum — higher than hair brands — which Ulta mass cosmetics — have the mostly self-service Beauty can procure Congratulations to Ulta Beauty on gorgeous years. not only flourished, but mass world, but not as because of its in-store 25 also provided a comple- intense as department salons — color cosmet- ment to the burgeoning stores. There is a focus on ics, especially those for roster of prestige lines. education for those who contouring, skin care The fusion of mass, desire, but easy-and-out and tools. In hair, Tomasi class and salon distin- shopping for patrons in singled out a trend to guishes Ulta Beauty from a hurry. That mantra is flexibility where women competitors and fits reflected online, too. wear curly hair one day today’s shopper patterns, In addition to conve- and a sleek style the next. she said. Brands stocked nience, Ulta Beauty stores She also said consumers on the mass side of the are, for the most part, are more interested than store range from the either new or freshly ever in ingredients and majors such as Almay, remodeled to reflect efficacy. “They have more Maybelline, L’Oréal and what the company calls access to education and Revlon to niche labels, its Level 7 design. Bright, information and that’s which Ulta Beauty has illuminated and highlighted pushed sales of products helped nurture. Case in by specialty boutiques, with charcoal or even snail point — the success of the stores are typically creams,” she said. NYX at Ulta Beauty caught the eye of L’Oréal, which scooped up the company last year. Ulta Beauty also has numerous niche lines such as Cosnova’s essence. There is also a popular proprietary collection under the Ulta logo. “We are agnostic in our approach. We are equally delighted if she’s buying mass cosmetics, visiting the salon or choosing prestige because we know From your friends at

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ULTA'S Key SILVER STREAK Brands

Terri Taricco-Cropp has helped us grow in a variety an alternate moniker for of ways. Store events that HOT Ulta Beauty: Girl Heaven. we’ve participated in have TOOLS “They just want to make elevated our brand’s image, a woman spend time in the guest’s mind as well Partner Since shopping in there,” said as the store associate’s Taricco-Cropp, who is vice mind. Also, Ulta’s level of 1998 president of marketing advertising in mailers and for the Professional Salon circulars helped increase Group of Helen of Troy. awareness of a number of The manufacturer’s Hot prestige brands with a new Tools line is a brisk seller consumer.” in Ulta. Taricco-Cropp noted The company has been that the brand works selling in Ulta since 1998, with Ulta to create exclu- and offers a wide range sive offerings. “We have of hairstyling appliances, items that are seasonal, from hair dryers to curling such as Mother’s Day irons and flat irons. The or Holiday Curling Iron majority of products retail specials, that are always between $50 and $130. new and different,” she “Ulta’s emphasis on new- said. “We also have an ness and trying to be first exclusive-to-Ulta rainbow to market make them an finish on our new Extra ideal retail partner,” said Long Barrel Curling Taricco-Cropp. “They’ve Irons.” — JULIE NAUGHTON

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ULTA'S SILVER STREAK Catching Wall Street’s Eye

According to Telsey, “Ulta has strong growth prospects. There are not a lot of other [ﬁrms] outside of the department stores that do what Ulta does. With a market capitalization of DATA They oﬀer customers service, a loyalty program POINTS and a hair salon on the premises. Many of the $10.93 billion, Ulta Beauty is trading stores are in strip centers, which makes them more accessible for many consumers.” 488 percent above the day of its While Sephora is a competitor in the beauty MARKET CAP retail space, in Telsey’s opinion, the two shouldn’t IPO in 2007. By VICKI M. YOUNG be compared with each other. That’s because $10.62B Sephora has more higher-end products, and cor- respondingly higher price points, she explained. Ulta’s ability to grow its customer base hasn’t

STOCK – 52-WEEK HIGH gone unnoticed by developers of malls and shop- all Street is clearly embracing ping centers. CBL & Associates Properties Inc. Ulta Beauty. $165 said this month that Ulta will be a new anchor The beauty retailer — with a at Randolph Mall, a 400,000-square-foot site in W market capitalization of around Asheboro, N.C. It will be part of the mall’s anchor $10.62 billion — is currently redevelopment project. Construction at the for- trading in the $165-a-share STOCK – 52-WEEK LOW mer J.C. Penney location will begin in October, range on the Nasdaq, or about a 488 percent jump with a store opening set for 2016. from its close of $28.89 on Oct. 25, 2007, the day $91 Another area of growth is its e-commerce busi- it completed its initial public offering. The shares ness, according to Telsey. are in range of a 52-week high, compared with its “There’s a ton of opportunity for them on the 52-week low of around $91. While the shares once e-commerce side. Their loyalty program helps Q1 NET INCOME traded as low as $4.11 on March 6, 2009, during them with the conversion rate for their customer the last economic downturn, Wall Street analysts base in all the different channels of distribution. believe the long-term outlook remains bright. $66.9M Their goal for e-commerce is to grow that business For the first quarter ended May 3, the company 34% JUMP FROM LAST YEAR to 10 percent of sales,” she said. posted a 34 percent jump in net income to $66.9 E-commerce represents less than 5 percent of million, or $1.04 cents a diluted share, on a net total sales. As for demographics, the company sales increase of 21.6 percent to $868.1 million. Q1 NET SALES targets a wide base. It counts 15.5 million members Comparable sales, which include e-commerce rev- in its loyalty program, with purchases through the enue, gained 11.4 percent on top of the 8.7 percent $868.1M program representing 80 percent of total sales. increase a year ago. Comp sales were driven by 7.2 While most of Ulta’s locations average 10,000 21.6% JUMP FROM LAST YEAR percent growth in transactions and a 4.2 percent square feet in primarily strip centers, the com- rise in the average ticket. Retail comparable-store pany is testing a smaller footprint — 5,000 square sales rose 9.7 percent, which included salon com- feet — for sites in smaller markets. That is another LOYALTY MEMBERS parable sales growth of 10 percent. possible area for growth, Telsey said. With those results, Ulta is one company that Carrying more than 20,000 products and 500- seems to be defying the odds at a time when many 15.5M plus brands, the company has a new distribution of its apparel and accessories counterparts are center in Greenwood, Ind., that it is testing so barely maintaining market share. it can soon begin filling orders for e-commerce What’s so special about Ulta? AVERAGE STORE customers and fulfilling inventory for the stores Think service, loyalty program and accessibility. SQUARE FOOTAGE during the third quarter. The capacity for the That’s the word from Dana Telsey, founder and Greenwood center is expected at 400 stores and chief executive officer of Telsey Advisory Group. 10,000 45,000 e-commerce orders per day. ■

Forging a link. That’s the goal of Ulta Ulta is active on all social media platforms, product barcode to see videos or get prod- Beauty’s digital efforts as outlined by including Twitter, Facebook and Instagram. uct information. The company’s UltaMate Prama Bhatt, its vice president of Digital Why is omnichannel so crucial? Accord- reward is designed to allow members to and eCommerce, during a presentation ing to Bhatt, Ulta finds that consumers who track their points and review purchases. at Cosmoprof North America. “No matter use all options spend two to four times Ulta’s site was engineered to provide what happens in seamless omnichannel more than those who either buy only online myriad opportunities to reach out to retailing, product is at the core. You have or those who stick to bricks and mortar. guests such as the ability to share hair- MAKING A to have the newness and innovation,” “They are a highly engaged shopper and styles, trends or product tips. “We allow she said. Digital helps give consumers we feel we can grow that group of beauty her to engage in beauty the way she loves CONNECTION access to those products whenever she enthusiasts,” she said. to,” said Bhatt. Another popular feature is desires to buy. Similar to the in-store experience, Ulta online chats with beauty company found- Ulta is investing heavily in the digital executives believe that there are times ers from Ulta Beauty’s brand partners. experience. A new e-commerce site when a visitor wants extra help and Ulta Beauty’s online efforts don’t stop debuted in 2013 elevating the online times when they want a quick with merchandise. The company supports shopping experience. That was followed purchase. To that end, Ulta the salon business with features like online by apps for iPhone and Android phones Beauty’s mobile app is designed appointment booking and opportunities to enhancements and then an iPad version. to provide the ability to scan a share hairstyles. — FAYE BROOKMAN

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ULTA'S Key SILVER STREAK Brands

Jamie Kern Lima, CC+ Cream bestsellers cofounder of It Cosmetics, for the retailer. IT credits Ulta for driving Buoyed by that success, COSMETICS significant growth for her the retailer and the brand since entering the cosmetics firm worked Partner Since retailer in 2013. together to create a propri- “When we partnered with etary brush collection. 2013 Ulta, I made a promise that “We launched It Brushes we would deliver for them for Ulta in September 2014 on all levels of partnership with over 60 sku’s, including and they made the same single brushes and sets, in promise back, and we’ve all doors, occupying 11 feet both delivered,” said Kern of space for the brushes Lima. “In September 2013, alone in the majority of we tested in 300 doors them,” Kern Lima said. with six feet of space. We “Today, between our two sold out of most products brands [the cosmetics and the first week of launch. the cobranded brushes], By the very next update of we have 20 feet of space in the floor plan in April 2014, the majority of doors.” we expanded into all doors While Kern Lima declined with nine feet of space and to discuss the size of her 161 stockkeeping units.” total business, industry Ulta continues to carry sources estimated that It 161 It Cosmetics sku’s, Cosmetics will finish 2015 ranging in price from with retail sales in excess $20 to $58, with Bye Bye of $275 million. Under Eye Concealer and — JULIE NAUGHTON

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ULTA'S SILVER STREAK Who Is She?

Talk about devotion. More than 80 percent of Ulta Beauty sales come from its loyalty A higher percentage Ulta members. With more than 15.5 million members of loyalty members Beauty’s are omnichannel e-commerce signed up for UltaMate Rewards, a program that shoppers who spend business is growing and provides more personalized communication the company 2.4 TO 4.3 is getting a and drives better engagement with guests, larger share times times of beauty the company has a strong read on who is its more than enthusiasts’ single-channel guests. wallets. customer. Here, an overview of the UltaMate

Rewards beauty enthusiast. By JAYME CYK

Membership of UltaMate Ulta Beauty’s loyalty has Fewer Rewards members are all grown by than members are ages ranging from Millennials salon to Baby Boomers. 7% 35% customers. in the last two years.

Loyalty members’ transactions are about Average household income UltaMate Rewards is in the has given members 25% millions of dollars $70,000 in discounts on their Higher than those of nonmembers, range. favorite beauty with an average of products. Depending on how many points members $40 have accumulated, discounts range from spent per store visit. Also, 3 to 6 percent. members shop more There frequently. 15.5are more than

million UltaMate In the first quarter of this year, total salon sales grew by 20.5 percent Rewards members. and comp sales by 10.3 percent. 2x Sales per loyalty member increased about Salon guests shop twice as frequently as nonsalon customers and spend 2.5 6% times more. UltaMate Rewards members spend across all categories — makeup, skin care, hair care and in 2014, which is attributed body — and price points. to providing benefits, more relevant offers and converting all loyalty members to one unified program.

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ULTA'S Key SILVER STREAK Brands LOVES

HAPPY 25TH ULTA! YOU DON’T LOOK A DAY OVER saying “yes” rather than “no” on a regular basis. URBAN “Ulta has given us every DECAY opportunity to partner fabulous. with them to succeed — Partner Since advertising in their mailers and e-mails, and exposure 2004 throughout the store on tables, endcaps, the XO, TOO FACED wrap desk and window As one of the first pres- banners,” Zomnir said. tige brands to enter Ulta, “They have also made us Urban Decay knew it was a prominent piece of their taking a calculated risk. e-commerce business as Wende Zomnir, they grow ulta.com.” cofounder and chief cre- In the last year, Zomnir ative officer, doesn’t regret noted, Ulta has moved the decision at all. Urban Decay’s merchan- “Ulta has prioritized us, dising placement to the in terms of positioning the front of the store and brand to their consumer,” doubled the brand’s space Zomnir said. “Urban Decay in every location. Urban was one of the first pres- Decay sells 360 stockkeep- tige brands to be sold at ing units across 16 different Ulta, and our initial relation- product categories in Ulta. ship has developed into “They range in price from a stronger and more suc- $10 travel-sized items to cessful partnership than I $60 eyeshadow palettes, could have ever imagined and even some exclusives when we launched in for $280,” Zomnir said. 2004. When Ulta began, it “We have been hosting was a very revolutionary events at Ulta since 2006, concept to have mass and and with their support we prestige under one roof. It execute almost 400 events had never been effectively a year, some reaching up to done before.” $30,000 in retail sales.” What’s made the Urban Decay launches difference for Ulta, said Ulta exclusives every Zomnir, is the caliber year, said Zomnir. of talent coupled with — JULIE NAUGHTON

Model: ELINA VASILKOVSKAYA Makeup: ANNALISA LALLI

60 AUGUST 2015, No. 1 WWD.COM WWD MILESTONES

ULTA'S SILVER STREAK Tapping Unseen Potential

Ulta Beauty's rapid rise is just the beginning

of the expansion of the retailer. By FAYE BROOKMAN

y any measure, Ulta Beauty is successful. But There’s also expanded real estate dedicated to Dermalogica the true impact the beauty retailer will make and the Urban Decay offer. in the market hasn’t been realized. But Ulta Beauty hasn’t strayed from its original vision to B There are still consumers who haven’t offer mass in addition to prestige. The company was founded shopped at — let alone heard of — the 25-year- by former food and drug combination stores executives. old retailer, which offers a mix of salon ser- The salon is also a competitive edge, one Kimbell believes CONGRATULATIONS vices, prestige and mass beauty. There’s even potential from has much room for growth. Ulta Beauty’s salons offer a bevy existing shoppers — only 7 percent of Ulta Beauty’s 15.5 million of services including cuts, color, gel manicures, brow shaping loyalty members take advantage of the salon services. in conjunction with Benefit Cosmetics and facial treatments That’s where Dave Kimbell, chief merchandising and market- in a partnership with Dermalogica. ON 25 YEARS ing officer, comes in. “The quality of our salon has certainly improved. We’ve “There are even people in Chicago who still haven’t heard really invested heavily in our stylists and created an artistic of us,” said Kimbell from Ulta Beauty’s headquarters in team that has elevated the training and development to keep Bolingbrook, Ill., a suburb of the Windy City. up with current trends.” “We think there are a lot of opportunities The company hopes its newly rebooted to tell our story in a bigger way and attract WE HAVE rewards program will nourish the synergy more guests,” added Kimbell, who Ulta between the front end and the back end of the Beauty’s chief executive officer Mary Dillon store where the salons are housed. recruited away from her former employer, 15.5 Launched last year, UltaMate Rewards nets U.S. Cellular. He joined Ulta Beauty in Febru- shoppers one point per every dollar spent ary 2014 as chief marketing officer and upon MILLION MEMBERS that is good for any product (one of its older the retirement in May of Ulta veteran Janet AND THAT’S versions only allowed rewards for certain Taake, he assumed the title of chief merchan- GROWING QUICKLY. products). THOSE SHOPPERS dising officer as well. Additionally, those who spend more than REPRESENT He’s digging into his tool bag, which includes $400 per calendar year earn platinum status a test of same-day delivery in conjunction netting them more points per purchase (1.25), with Google Express. He is also testing 80% special gifts and early access to new items. in-store orders for home delivery and cli- The rich data gleaned helps Ulta Beauty zero enteling with in-store iPads, providing staff OF SALES. in on preferences. For example, a launch of a with customer information such as recent brand a customer likes could prompt an e-mail purchases. The company is also doing live to alert her. online chats with founders of Ulta cornerstone “The rewards program is so central to our beauty brands, and has launched technologies offer right now,” explained Kimbell who to be able to buy items from bloggers’ Ulta video hauls. helped overhaul it upon his arrival. “We have 15.5 million Later this year, Ulta will unwrap its first national TV and members and that’s growing quickly,” he added, radio campaign following successful tests in select markets. noting those shoppers represent 80 percent These strategies are all tied to Ulta Beauty’s customer rela- of sales. “It is a great program — it works on so many levels.” tionship management philosophy that’s helped shape how the Ulta Beauty is full throttle in its efforts to offer seamless pur- retailer curates its message. chasing for shoppers. Three years ago, the company invested “No one brings the collection of products, services and big in improving the navigation of its Web site as an effort to experiences that we do,” he said. remove any friction to purchase. A popular feature on Ulta The assortment of prestige lines has mushroomed in the past Beauty site is the chance to chat online live with the founders five years and now includes Bare Minerals, Benefit, Clinique of cornerstone Ulta brands such as Mally Roncal of Mally Beauty and Lancôme, which have dedicated boutiques in many stores. or Wende Zomnir, the creator of Urban Decay. ■

ULTA / ULTA.COM TWEEZERMAN.COM TweezermanNY @TWEEZERMAN @TWEEZERMAN TWEEZERMAN 62 AUGUST 2015, No. 1 WWD.COM Happy 25th Birthday Ulta!

We are excited for the next 25 years of working together.

dermalogica wishes Ulta Beauty a happy 25th birthday!

You’ve redefi ned the industry and we can’t wait to see what’s ahead. ULTA® Beauty is an Amazing Success Story

Our dedicated staff at Graphic Arts Studio is proud to have been a part of it

™

CONGRATULATIONS ON 25 YEARS OF ULTAMATE BEAUTY!

JOICO.COM ©Joico® Laboratories, Los Angeles, CA 90042-0308 HAIR Joico Artisic Team COLOR Denis de Souza PHOTO Hama Sanders J67342 HAPPY BIRTHDAY HappY BIRTHDAY YEARS ULTA

Cheers to 25 years of innovation and success. Women’s Marketing and our partners are so happy to celebrate this beautiful milestone!

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RR DONNELLEY CONGRATULATES ULTA BEAUTY ON 25 YEARS AS THE PREMIER DESTINATION FOR ALL THINGS BRIGHT, BEAUTIFUL, FUN AND INVITING.

OPI CONGRATULATES ULTA ON A BEAUTIFUL 25 YEARS

72 Ready or Not, Here They Come! Generation Z is sizable, social and has plenty of spending power. Just don’t mistake them for Millennials. 78 Eyes Wide Open Christian Louboutin continues to add heat to his formidable footwear- based business.

Illustration by JANINE REWELL WWD.COM AUGUST 2015, No. 1 71 ª01*1SPEVDUT*ODt$BMMPSWJTJUPQJDPN Comprising almost 25 percent of the population, Generation Z is sizable, social and has considerable spending power. Just don’t mistake them for the Millennials. By JENNY B. FINE Photographs by EMMAN MONTALVAN

READY OR NOT, HERE THEY COME! aspect of their lives. “How do they like to shop? SHARING IS CARING ew York, San Diego, Palm Springs, L.A., Baltimore — as she Socially, of course,” says Davanzo. “I just spent the weekend with a Gen Z-er looking for prom dresses. Today, schools have Facebook pages The most important social media platforms for teenagers. criss-crossed the country this past May promoting her where girls can post their dresses so they don’t get the same one as another person. Their choice namesake skin-care line, meeting customers, chronicling is being made from social media — they’re seeing other people’s choices and that sways their deci- her travels on social media and tracking the growth of her sion. It’s a whole layer of extra information.” Gen Z’s approach to fashion and style reflects business, Willa Doss personified the can-do attitude the contradictions that often define teen life. 32% 24% 14% 13% N Low-cost brands like F21 Red from Forever 21, of the current crop of beauty entrepreneurs. H&M and Primark in the U.K. are very popular, even though there are often questions around Doss is the force behind Willa, a direct-sell what’s going on, they are involved. “Gen Z is the the manufacturing practices of such brands. skin-care line geared toward young women that most engaged generation to date and if they don’t Pink by Victoria’s Secret is also popular, despite she has developed with Christy Prunier, who is GROWTH like something, they will do something about it. a backlash against sexually suggestive ads, says her mother. Doss herself is 15 — and a sophomore They are quite activist in their mentality,” says Greene. On the other hand, brands that embrace in high school. SPURT Lucie Greene, worldwide director of J. Walter and reinforce individualism, like Free People Other While a teenage entrepreneur may seem like Thompson Intelligence Innovation Group. and Brandy Melville, are quickly becoming clos- the exception rather than the rule, Doss’ spirit Those two factors have created a generation et staples, too. and drive are perfectly in sync with the mores of GEN Z who are rewriting the rules of engagement for If a brand isn’t involved in social media, it her peers. And while it is impossible to predict 25.9% fashion and beauty marketers. might as well not exist for teens. Jenny Frankel, the future of Willa the brand, which launched in “Young people are always being told, ‘Wait a the co-creator of CoverFx, discovered that first- 8% 4% 2% 1% 19 AND UNDER June, Doss and the 60 million-plus members of little while and then you can start making a differ- hand in 2011 after she sold a majority stake in the Generation Z are already having a significant im- ence.’ That is not us. We are ready to make a dif- company and became a stay-at-home mom to her Source: PiperJaffray pact on society — and shopping. ference in our world starting now,” says Doss. “It two teenage daughters. “I realized that if they’re Generally defined as those born from the late In the U.S., Gen Z already doesn’t come from a sense of urgency, but from a not following a brand on any of their social plat- Nineties on, Gen Z comprises close to 25 percent outnumbers Millennials stronger sense of self. We know who we are. We forms, they have no idea what the brand is say- of the total U.S. population, between 60 million and Boomers. are very confident and empowered. Because of ing, doing or selling,” Frankel says. and 80 million, according to U.S. Census statis- social media, we see what people around us are Another “a-ha” moment came when she real- mission of the company is to empower girls and real time,” she says. “We’ll take a picture, write tics. Their spending power is also considerable, doing and that inspires us to do the same. If we ized her daughters were following a number of enhance their self-esteem. “Through Instagram, some copy on it, put it out there and get feedback estimated to be at $44 billion annually (thanks to see one girl doing something really cool, we say, lifestyle brands and influencers — from Rihanna these girls use their authentic voices, be who they from the girls.” an average weekly allowance of about $16). Add ‘Hey, why don’t we do that, too?’” to Refinery 29, Cara Delevingne to Urban Out- are, say what’s important.” That one-on-one interaction extends beyond on the halo effect of parental spending, and that MILLENNIALS In fact, the effect and influence of social me- fitters — but that beauty brands weren’t in their Greene calls it “hyperindividualism,” noting communicating — it also explains why the di- number swells to $200 billion annually, accord- 24.5 dia is all-encompassing, creating a participatory social media mix. “When I asked why, they said that race and gender are much more amorphous rect-sell channel is resurgent among younger ing to Mintel. role with brands and media that puts teenagers they didn’t relate to the perfect looks they were for Gen Z than for any prior group in history. shoppers, with brands like Willa in beauty and 20 — 37 “When we look at the numbers of Generation AND UNDER in the center of the conversation. “Generation Z seeing. For them, beauty is more lifestyle, more “They are the most racially and ethnically diverse Stella & Dot in accessories. “Direct-sell plays well Z, it’s clear that they will swallow the Millennials doesn’t passively absorb heroes,” says Greene. head to toe. It has to be attainable and achiev- generation to date,” she says. with young people. This is the generation that in terms of size,” says Sarah Davanzo, chief cul- “They want to see their peers in the picture — able,” Frankel says. Amy Astley, the editor of Teen Vogue, agrees. doesn’t have to prevaricate,” says Liebmann. tural strategy officer of Sparks & Honey, a New both Snapchat and Vice Media are focusing on Thus was born Nudestix, a line of neu- The magazine’s August cover image, featuring “Their expectation is to have a direct link to York-based marketing agency. “They are unlike citizen journalism as part of their coverage. Gen tral-hued makeup pencils that Frankel launched three models — one Egyptian-Moroccan, one a brand, because that is where they are going any generation that has come before them. Many Z has a big impetus to make stuff, to find stuff and marketers are lulled into thinking they’ve got it to share it. It is an active engagement.” all figured out because they’ve spent their budget GEN X Their icons reflect their ethos, and range from “Young people are always being told, ‘Wait a little while and then you can on understanding Millennials, but Generation Z 15.4% Nobel Prize winner Malala Yousafzai, the 18-year- represents exponential change. They are the 38 — 49 old who was shot by the Taliban for her vocifer- start making a difference.’ That is not us. We are ready to make a difference in backlash to the Millennials.” ous support of a girl’s right to education, to Miley our world starting now.” — WILLA DOSS For starters, Gen Z is the first truly all-digital Cyrus, who is lauded for her individuality and generation, having grown up completely im- support of the transgender community, to Lucky mersed in technology. “They learned to take pic- Blue Smith, the 16-year-old male modeling sensa- last spring and which has quickly become one of French-Ivorian and one Dominican — generated to look before they go to a store. They are not tures on their iPhone,” says Wendy Liebmann, tion who, with his three model-musician sisters, beauty’s buzziest launches. As with Willa, Fran- a huge amount of social media buzz. “The girls waiting for someone else to tell them, such as a the chief executive officer of WSL Strategic Retail. BABY personifies style for young people today. kel’s daughters, Taylor, 18, and Ally, 16, oversee look real — their hair is natural, they’re not over- retailer or editorial, what to buy. That creates a “They learned to read on Leap Frog. They watch BOOMERS This is a generation not interested in perfec- the company’s social media messaging and have ly retouched,” says Astley, who notes the impor- barrier. They want to hear directly.” on-demand movies. They aren’t cluttered with tion, says Greene. So Cara Delevingne, whose helped shape the brand’s ethos in everything tance of such realism. “When kids perceive the The social relationship between Gen Z and two worlds like Millennials.” 23.6% Instagram motto is “embrace your weirdness,” from shade selection to brand campaign. picture is fake, they reject it. Everybody is vul- brands extends beyond the digital realm. Teens The environment they’ve grown up in is also 50 — 68 is wildly popular, with more than 16.3 million fol- “This generation is so media savvy they can nerable to images of beauty, but young people today may have wildly different influences than radically different from that of the Millennials. lowers on the social media platform. Brands that immediately read through any corporate messag- especially, and if a picture feels hugely unattain- their predecessors, but fundamental truths hold. In terms of race, many have known mainly only resonate are those that invite fans to become full- ing,” says Frankel. “They are highly individual- able or as if it was achieved in a cheating way, it They still like to hang out with their friends and an African-American President; in terms of sex- fledged members of the tribe, as Marc by Marc istic — the attitude is, this is what I look like, I’m is a turn-off.” shop. But they have done their research before uality, they’ve grown up in a climate where gay SWING Jacobs did when it cast a recent ad campaign proud of it, everyone should embrace it.” A more realistic depiction of beauty has be- they’ve shopped and they are surprisingly val- marriage is legal and gender is on a sliding scale. on Instagram by asking people to post a photo “Their life follows their words,” agrees Va- come a brand attribute for Willa, according to ue-oriented. According to a J. Walter Thompson Gen Z has come of age in a postrecession world, 10.5% of themselves using the hashtag “CastMeMarc.” nessa Schenck, who launched her subscription founder Christy Prunier. “Nothing has to be per- survey of 1,000 teens, 79 percent said they re- where political, cultural, social and econom- 69 AND Within a day, says Green, the hashtag had been box company, Tia Girl Club, on Instagram in late fect with Willa. Photographs don’t have to be searched online to find the best deal. ic upheaval is the norm — and because of their OVER used more than 100,000 times. February and racked up 2,800 followers in a few Photoshopped or perfectly framed. Copy doesn’t WSL’s recent study, “Population Shakeup,” re- constant connectivity, they are not only aware of Source: PiperJaffray That level of participation extends to every months. Tia stands for “Today I Am” and the have to go through so many iterations. It’s all very ported similar findings when it comes to pre-shop

MOST LIKELY TO SUCCEED

The most popular fashion and beauty brands among teenage girls aged 13 to 16 as 87.8% 87.1% 86.2% 85.9% 85.6% 84.9% 83.5% 82.6% 81.8% 81.6% measured by Teen Vogue’s Love List. 1 | 2 | 3 | 4 | 5 | 6 | 7 | 9 | 10 | 11 | Source: Teen Vogue/Goldman Sachs 2014 Brand Affinity Index

74 AUGUST 2015, No. 1 WWD.COM WWD.COM AUGUST 2015, No. 1 75 preparation. But while a young person wouldn’t ATOMIC PARTICLES dream of making a purchase without researching it first on the Web, online and off-line shopping The Smith siblings are typical multitasking — and successful — Gen Zers. are neck-and-neck in terms of popularity. Six- By MARCY MEDINA ty-six percent of Gen Z respondents reported shopping online, but, in terms of bricks-and-mortar, 80 percent frequent mass merchandisers, and 53 percent say they have shopped in a mall, versus 36 percent of Millennials and 27 percent of Gen X-ers. are trying to develop our sound “Cool. That makes a lot of sense. WSL also found that the value proposition for and collaborate with people who I’m really impressed,” she deadpans. young shoppers is substantially different than get our vision. It’s really nice how it Daisy explains how fashion can be incorporated with modeling influences their music. “I’ve always for Millennials and Gen X. Newness isn’t a key because a lot of clients love that felt that fashion and music have fed driver for Gen Z, unless a new product presents factor of ‘these models also do this,’” off each other. I think our look has a marked and meaningful improvement. “They Pyper adds. always been a part of our shows. will have done their homework and will be very Lucky and Daisy describe The Even when we were younger and challenging about why this product is better than Atomics’ sound as similar to The playing the car shows, we all wore another — just because you’ve added 2 percent Black Keys. Daisy says, “My dad matching dresses and it was really more of X ingredient or changed the color?” says I always played us Tom Petty and I Fifties-style, so I think the look has can hear a little of that in the music been just as big as the music.” Liebmann. “This is a big challenge for everyone, t’s hard not to stare at the Smith we play and songs we write.” Pyper Suddenly, there is a flurry of cell- and particularly for beauty.” siblings, especially at close range. adds, “My dad also grew up playing a phone beeps, so it seems like a good Likewise transparency. Companies that are Seated shoulder-to-shoulder on lot of disco and, as the bassist, I get time to ask about their relationship candid about their supply chain, labor practices a velvet sofa, a riot of platinum inspired by those funky basslines.” to social media. “Well, it for sure and ingredients are more popular than those that and ebony hair, porcelain skin and Starlie, who is also the lead vocalist, helps your career because it’s aren’t. Consider Everlane, the clothing line with long limbs, they can disarm even says, “With each person, you’ll get getting your face in front of people. the most jaded with their piercing their influences. I’m the singer, so And if you post something or if a blue eyes and impish smiles. For I love Amy Winehouse and Etta company wants you to post some- “When kids perceive the uninitiated, the Smiths are James, but it’s everyone’s inspira- thing, within minutes you can have Lucky Blue (17), Pyper America (18), tions that really make our music.” thousands of people see it,” says the picture is fake, Daisy Clementine (19) and Starlie Lucky has also started to dip his Lucky. Adds Pyper, “A lot of clients Cheyenne (21), the Utah-bred models toe into acting: This summer, he just want that extra advertising.” they reject it. and musicians who are igniting the begins shooting his first lead role Daisy elaborates. “Marketing has fashion and social media worlds. in the romantic tearjerker “Love completely changed. People aren’t Everybody is vulnerable “When I post a picture of myself, I Everlasting” in Utah and Los Angeles. just sitting there watching TV all can get lots of ‘likes,’ but when we’re “I think me and Pyper were the most day and they don’t go out and read to images of beauty, all in one together, it like, blows up,” curious [about acting]. I remember newspapers; they’re on their phones. explains Lucky, who has reached her always wanting to start acting Because we are so comfortable with but young people mega-heartthrob status with 1.2 and I didn’t really care about it until social media, it makes sense that especially, and if million Instagram followers and an a few years ago.” They both have kids and influencers are the ones average of 40,000 “likes” per post, taken acting classes in L.A. “Mod- who are marketing and advertising a picture feels hugely impressive for a male model. eling and acting are similar in that stuff. I almost always find new Daisy was the first to sign a con- you’re kind of portraying something,” brands on Instagram by people tag- unattainable or tract — with Next Models at age 14 says Pyper, whose dramatic and ging them. You see it in a much more — and two years later, while visiting comedic streak can be seen in her natural way than someone shoving it as if it was achieved the agency in Los Angeles with Instagram alter ego bevhillsmom, in in your face and saying, ‘Buy this.’” her siblings in tow, the other three which she lampoons, well, a Beverly Starlie agrees, noting, “It’s more in a cheating way, signed on, too. Shortly thereafter, Hills mom. “It’s my favorite,” says relevant for people. They’re like, ‘Oh, Hedi Slimane shot their first story for Lucky. this brand is cool because this per- it is a turn off.” Vogue Homme Japan. Since then, Although they’re all dressed in son is doing it. Plus, it’s freedom. You — AMY ASTLEY their collective campaigns have black, white and blue, each sibling have access to whatever you want. included Gap, CK One and Tommy has a unique style. Lucky channels You can look up whatever you want. Hilfiger. a “modern vintage” look and favors It’s not like when a magazine comes Music was also a family affair. Levi’s and Tom Ford, Daisy is more out and says, ‘This is the style.’ You Their parents gave them instru- classic and feminine, Pyper’s style can be whatever you want.” the motto, “Modern Basics, Radical Transparen- ments for Christmas 10 years ago is more masculine and structured While the troupe is headed to cy.” Its e-commerce site features all of the usual — a bass for Daisy, guitars for Starlie (Daisy and Pyper both love Topshop), Jackson Hole, Wyo., to shoot a “top product information — price, fit, fabrication, etc. and Pyper and drums for Lucky — and Starlie describes herself as secret” ad campaign, the girls say — but it also prominently lists a detailed descrip- and they started performing surf “retro pin-up-meets-rock-’n’-roll” they like to spend their free time at tion about the factory where each item is manu- rock covers by The Ventures and whose go-to’s include high-waisted the beach. “Honestly, if I’m around factured. Dick Dale at local car shows. skirts, ankle-strap heels and a people I like, I can do nothing and Says Pyper, “We had been doing leather All Saints jacket (Saint Lau- have a good time,” says Lucky. “But “Generation Z is so smart at researching, and it as a family thing for a while, and rent is her favorite designer). when I have downtime, I like to go get they demand transparency and ethical actions. when our agents at Next asked us “Fashion is a way you can express a burger.” Gen Z cares about provenance. Where does the to move to Los Angeles, we decided yourself, so it’s good stuff, you Says Pyper, “Downtime is a little product come from? Where are you sourcing if we go out there, we’re going to go know?” offers Lucky. bit rare because we’re working and your ingredients?” says Davanzo, who notes that for the music as well. So we took “But what kinds of pieces do you traveling and as soon as we get a lot of different industries, like market research it more seriously a couple years wear? You know, explain it,” Pyper home, it’s like, ‘Let’s work on music.’ firms, will have to rethink their business models ago.” Their band, The Atomics, will says, poking him in the ribs. So after practice, we’re just super- chill: eat, sleep, model, music, buy.” accordingly. put out its first album next year. “We “I wear modern…vintage,” he says. “We live in an open world,” continues Davan- zo. “Brands need to be open.” ■

13 | 81.5% 14 | 81.4% 17 | 80.9% 18 | 80.6% 19 | 80.1% 20 | 79.4%

76 AUGUST 2015, No. 1 WWD.COM WWD.COM MONTH 00, 2015 00 Eyes Wide Open

Christian Louboutin says he is always on the lookout for inspiration and opportunity – and his burgeoning business proves it.

By Miles Socha Photographs by Gregoire Alexandre

Christian Louboutin with the new Paloma bag in leather.

78 AUGUST 2015, No. 1 WWD.COM WWD.COM MONTH 2015, No.1tk 00 Christian Louboutin’s napa leather Electrapump with signature hardware. Small Paloma bag in Why shouldn’t a tube of lipstick calf hair, leather and patent leather with brass be so gorgeous you could wear it like hardware and signature an amulet dangling from a fine chain? spikes. And why shouldn’t a handbag be imbued with all the drama and sass of a cabaret performer, the flesh-toned handles kicking out of the black leather side panels like Dita Von Teese’s gams from a velvet curtain?

One has to hand it to Christian Louboutin: He thinks differently, strives for the exceptional and continues to add heat to his formidable footwear-based business. Later this year, the Paris-based designer will introduce Rouge Christian Louboutin Lip Color to echo his famous soles — plus 37 other shades — and he’ll start shipping the Paloma bag, the linchpin model of a revved-up leather-goods range hinged more emphatically on brand codes such as spikes, animal prints and that famous red. Unveiling the twin product volleys exclusively to WWD, Louboutin describes an unhurried, organic and hands-on approach to extending his brand and his business, embarking only on projects that feel legitimate and tickle his creative fancy. “I take time to think,” he says over the line from New Delhi, where he flew in late July to design shoes for fashion designer Sabyasachi Mukherjee, who opened this year’s Amazon India Couture Week. “I basically keep my eyes and my ears open and when it fully makes sense, I just do it.” This approach also applies to opening new boutiques, guided mostly by customer demand. If the designer is not familiar with a city under consideration for a store, he’ll spend four to five days exploring, dining with locals — and scanning what heels are objects,” he says, describing a penchant for min- clacking on the pavement. “If I haven’t seen one “A small object iatures. “In a small painting you have so much red sole during my trip, I do not open,” he says. to see because there’s so much detail in such a While women’s shoes remain the cornerstone of can have as small volume. My father was a carpenter, so I love his privately owned company, accounting for about objects that are really designed. A small object can 70 percent of the business, Louboutin has proven much invention have as much invention and as much innovation how nimbly he can operate in new categories. and as much as something big. I’m not of the school that big is Consider his foray into men’s shoes four years beautiful.” ago. In the habit of making shoes for himself innovation as The forthcoming lipstick is certainly one of the to match his colorful, foppish style, Louboutin something big. smallest Louboutin creations yet — and one of the dreamed up a pair of black leather loafers paved most expensive in the category, slated to retail at with spikes to attend the Met Ball celebrating the I’m not of the up to $90. More of a precious object than some- 2008 opening of the “Superhero” exhibition at the school that big is thing chucked in a purse, the Lip Colours come a Costume Institute of the Metropolitan Museum year after Louboutin introduced his first beauty of Art. Subsequently, pop star Mika approached beautiful.” product: a nail lacquer housed in a cut-crystal orb Louboutin to design footwear for an upcoming tour. topped with a towering spike. Beauty products The exercise would ultimately spawn one of his now generate about 3 percent of total revenues, fastest-growing new categories, with men’s shoes according to the company. now accounting for 20 percent of the business. And it helped put Meanwhile, the handbag project, with the first new models shipping at the end of Octo- into sharp focus the brand attributes that underpin Louboutin’s ber-early November, is something of a reboot. Louboutin assembled a new team based on business momentum — not to mention the designer’s popularity the Rue Jean-Jacques Rousseau, home to his corporate offices, workshops, design studios on social media, nearing five million followers on Instagram. — and a series of boutiques clustered around the 19th-century arcade known as the Galerie Among his first customers for men’s shoes after opening a Véro-Dodat, where he first set up shop in 1991. Paris boutique in 2011 were pop singers and elite athletes — men “It’s a bag that really comes from Paris,” Louboutin says, “and is a bit more fierce.” accustomed to performing on a stage, a field or a basketball Indeed, with its panels of panther print patent leather and conical gold studs, the Paloma court. “A sportsman is a showgirl, in a way,” he says with a is no prim Margaret Thatcher satchel. chuckle, noting NBA stars Kobe Bryant and Tony Parker are Louboutin’s collaboration with Louis Vuitton last year — in which he, Karl Lagerfeld, Rei among devotees of his expressive and eye-catching high tops. Kawakubo, Frank Gehry and others created one-off bags employing its monogram canvas That echoed one of the original wellsprings of Louboutin’s — sparked a rethink of his approach to handbags. He elaborated on the Louboutin brand women’s business: the showgirl in a cabaret, suggesting a codes he employed for that project — the red, the spikes, the glossy surfaces — to create the woman who is colorful, exotic, sexy and feminine. “It’s a dreamy Paloma, and to refresh existing models. “I started as if it was my first collection,” he says. idea of a woman,” Louboutin muses, describing his designs as Among new styles is the cushionlike Piloutin evening bag, a patchwork of elaborate Indian “quite fierce,” detail-oriented and resolutely upbeat. wedding ribbons and soft enough — save for the perimeter of spikes — to rest one’s head on. “Everything is made for women who want to be happy and Louboutin introduced handbags in 2005 as a complement to the shoes, and at the who want to look happy,” he says. “I just favor happiness to request of clients looking for evening bags to match their slick, eye-catching shoes. “For darkness. I’m more solar than lunar.” me, it’s important to start things and see how it operates, and then I feel completely ready Indeed, Louboutin has a knack for bringing verve, cheek and to go to another level,” he explains. “With the bags, there are things in common and there surprise to accessories and beauty products, which he favors are things that have nothing to do with the shoes. These two twins definitely need to have over other categories. their own personalities.” Asked if he would consider fashion design, Louboutin did Alexis Mourot, Louboutin’s group chief operating officer and general manager, says not hesitate to dismiss it. “Definitely not clothing. I like small handbags and small leather goods account for about 7 percent of the business, and could ►

80 AUGUST 2015, No. 1 WWD.COM The Lip Colour collection. OPPOSITE PAGE: Goat-suede Dollyparty pump with metal chains; leather Triloubi clutch with signature spikes; Sweet Charity Baby bag in leather with spikes. Louboutin’s Lipstick spark that became the trademark of his shoe Luxuries design, reappeared as By PETE BORN the keystone color of the nail enamel range and now is the hallmark of the lipstick range. The lipstick collection is an array of 38 shades div- In the world of Christian vied up among three pig- ment formulas to provide Louboutin, a beauty product is varying finishes — satin, not simply a useful device for matte and sheer. There is a Louboutin Rouge in decorating the body. It can be each formula classifica- an objet d’art, as in his nail polish tion, but the cases are black with a gold and — introduced last year — with its platinum cap to highlight squared-off glass orb of a bottle the red hue, compared with gold packaging in and wizardlike wand of a cap. the rest of the range. The Now comes the expected lipstick, names can range from whimsical, like Let Me Tell which will be launched Sept. 1. You, to funky, like Mexi- catchy, to inexplicable, like Djalouzi. The expansive shade range was created because “Christian is a man of color; we didn’t want to be a brand that But it’s not what one a necklace or a charm was either beige or pink grow to 15 to 20 percent within three years now that the category is getting would expect. Instead of bracelet. He even toyed or orange or whatever,” more design and management attention. the usual squarish metal with the idea of earrings. says Catherine Roggero, He notes that Louboutin boutiques, most of them deliberately of a small black tube, Louboutin “The idea is to encour- general manager of scale, would be reconfigured to better display the new leather-good assort- took a typically flam- age people to play with Christian Louboutin ments. Also, more than a dozen of its key wholesale partners are planning it in the way they want,” Beauté. The question boyant approach. The pop-up shops, starting in November, to showcase the revamped designs packaging of Louboutin’s he says. became which hues lipstick was designed None of these ideas worked best with which Despite the designer’s slowly-but-surely approach to business — and man- with Assyrian-influenced are in production, but formula, because of the agement’s wish to remain a niche player, at least by perception — Louboutin ornamentation of an the company created different definitions and last year sold more than a million pairs of shoes, according to market sources. antique oriental jewel. A necklace and earring other characteristics. “In While the privately held company does not disclose revenues or earnings, loop was added on the concepts for press pho- sheer, which is medium Mourot notes “sales have been growing at high double-digits for the last five end so that a ribbon can tography to dramatize to full coverage, we have years,” with business particularly dynamic in American, Japan and Europe. be laced through, allow- Louboutin’s vision. a lot of colors that look The company has also made giant steps in changing its business model: ing a woman to wear the Clearly it’s a luxurious beautiful,” Roggero said Retail generates about 70 percent of revenues, versus 30 percent for wholesale. lipstick like a pendant. positioning, with a lofty of the category that has “An object of desire $90 price tag to match. 20 of the 38 shades. “In “Six years ago, it was 5 percent retail,” Mourot says, noting that Asia, Japan for the lips” was how There also is a Lip Matte, not everything and the Middle East have been converted from franchise to direct operations. Louboutin described the Definer, offered in five looks good; the same There are 105 directly operated Louboutin stores, both freestanding and beginning of his thought shades, that is designed way in sheer, not every- shops-in-shop, and the number is set to grow to 109 by the end of August. This process in developing to create a fuller lip thing works.” year, the company is to open 17 stores, and 18 are planned for 2016, including the product. He is clearly effect for $40 apiece. Louboutin worked for seven in the U.S. and Canada, bringing the complement to 127 locations. mindful of the marketing Robin Burns, chairman nearly a year picking and Louboutin continues to wholesale its product lines to 250 doors world- theorem that lipsticks of Batallure Beauty LLC, defining colors. “The first are status markers when who is also a co-owner thing was to work around wide. North America remains the company’s largest market, accounting for a women whips one out of the joint venture that the reds,” he says, “and 42 percent of the business versus 40 percent for Europe and the Middle East of her purse. is Christian Louboutin the transparent colors, and 18 percent for Japan, Asia and Africa. Unlike nail polish, Beauté, describes the meaning nudes.” The designer says he’s approached all the time with opportunities to extend women reapply lipstick designer as “the master The distribution for his brand, most of which he dismisses, while others he mulls. more than once a day, of creating that must- the September rollout Asked if he would ever consider designing a hotel, Louboutin hints that Louboutin notes, describ- have aspiration through seems as handpicked as a project could be in the offing. “That’s a thing I would consider,” he says. ing the process as “play- true elevated innovation, the color selection. One ing with gesture, which not just products, but of the highlights will be “Even home would be more interesting to me, rather than something that is is key to applying to your what you feel like when Louboutin’s beauty-ded- worn. I would consider many things before clothing.” lips. It would be really you wear it, what you icated store in Paris, An avid globetrotter with vacation homes in Portugal and Egypt, Louboutin nice to have something look like, the experience which he laid out with the says exotic destinations feed his creativity, but not in a linear way. “I don’t you are proud of, not only of discovering it and sensibility of a jewelry travel to be inspired, but travel is an inspiration in itself,” he says. when it’s on your skin, buying it. The environ- box. It is on the Passage The designer prefers to follow his instincts, not trends, retiring alone to but when you look at the ment where you buy it — Vero-Dodat, the same Egypt, Portugal or the French countryside four times a year to sketch out his object, something which in his shops — is unique. location where he still shoe collections, contemplate them, correct them and perfect them. “That should be a gift from It’s the whole ritual and maintains his first shoe men, who would give it. the whole experience, store and his men’s shop. needs a lot of time and I need a lot of focus. It’s the most important part of my So, basically jewelry.” multidimensional. It’s not The global door count job. I didn’t design shoes to build a company. My designing shoes has become The company is said just a nail polish; it’s not numbers about 25 plus a company. I never wanted to build a company. I wanted to build shoes,” he to be working on a just a lipstick. e-commerce. says. “My preoccupation is not to grow.” limited-edition lipstick “It’s the whole thing,” Executives declined to Louboutin treasures the freedom to grow at his own pace, and considers his as a jewelry concept for she notes, adding that disclose sales targets, growth organic and natural more than 23 years after founding his company. later this year. Louboutin “consumers today don’t but industry sources While he wouldn’t completely rule out a sale of the company one day in the mused that the lipstick need more product.” speculate that the could be the genesis of Any ritual associated lipstick could generate distant future, it hasn’t even crossed his mind. “I love my work and so I have more decorative uses, with Louboutin involves $6 million to $7 million no reason to consider it, and I have no intention to leave. perhaps arranging the the color red. Louboutin in retail sales during the “I follow my own path,” he continues, adding with a chuckle, “I never sold tubes of lip color into Rouge was the original first year. my soul to anyone, only my soles.” ■

00 MONTH 2015, No.1tk WWD.COM WWD.COM AUGUST 2015, No. 1 83 Bridget Foley’s Diary GET Balenciaga: One More Time RUNWAY Designer departs from storied house. Hasn’t Kering been has invoked, profaned and ultimately modernized over the years would still scream fashion as they there and done that recently, when it replaced Gucci’s Frida do now? All of which will make this next Kering hire so interesting. Ghesquière (now creative director for READY! Giannini with Alessandro Michele? Yet here we go again, with Louis Vuitton) created a memorable aesthetic for Alexander Wang leaving Balenciaga after what seems like a Balenciaga. For whatever reason, Wang — who did very good work for the house — didn’t establish a truncated stay, despite completion of his three-year contract. look that resonated instantly. In that respect, he provided something of a palette-cleanser that may Whatever the reasons behind the split, it’s safe allow the next designer in to work more freely, to assume that if both sides had been delighted beyond the shadow of Ghesquière. FASHION with the relationship, they’d have found a way Yet there are other shadows to negotiate. The to continue on despite Wang’s understandable fractured relationship with Wang aside, Kering interest in building his own brand and seeking has been on a provocative hiring joyride of late, WEEK the revenue with which to do so. (WWD reported enlisting the famous, Hedi Slimane at Saint Lau- this week that he’s close to signing a deal with rent, and the anonymous, Alessandro Michele General Atlantic, the growth equity firm headed at Gucci. So far, both have been wild successes. DAILIES by William Ford.) Along with ample external appropriation, Sli- Wang is now on to the rest of his life and career, mane incorporates house codes, fiercely twist- an extremely talented and still-young designer. He ing elements of storied chic into gritty currency, SEPTEMBER 10 got a bit of a raw deal from the moment the ink appalling some observers while awing others. was dry on his Balenciaga contract, not from Ker- Whatever one’s take on his fashion — and he’s —SEPTEMBER 17 ing but from the legions of onlookers who opined triggered updates on that age-old question of + ON SITE DISTRIBUTION AT about the gravitas of the house codes and whether just what is fashion, anyway? — his Saint Laurent ALL SHOW VENUES a guy with a youth-oriented, street-centric aes- has become the darling of those retailers who thetic could rise to the occasion. Suddenly, Wang have it and the holy grail (and envy) of those wasn’t a gifted, savvy designer who’d launched who don’t. his brand within a strata that made sense for Light years from Slimane’s Saint Laurent, his audience, but a T-shirt designer, contempo- Michele has positioned his Gucci in fashion’s rary designer, insert-your-intentionally-derogato- lyrical sphere. With just four collections — two ry-modifier designer daring to take on one of the men’s, two women’s and one of those, resort most hallowed names of French fashion. — he has spawned an utterly new, gentle look. While Wang did indeed assume the mantle of While Michele has said he wants to incorporate Balenciaga, the codes that really mattered were elements of the Tom Ford Gucci codes into those of Nicolas Ghesquière who, at the height of While house codes can his work, so far, the two sensibilities couldn’t his tenure, returned the house from nowhere to be further apart. One could argue that Ford’s the pinnacle of influence and importance. Yes, provide structure and aesthetic was based on sex and on telegraphing Ghesquière referenced the work of Cristóbal one’s sexuality through fashion, and that two Balenciaga; it was fascinating to hear him discuss grounding to a designer decades later, Michele’s exploration of gender his applications. But except for a few overt cases walking into a situation not identity, particularly on the men’s side, furthers (the hyper-sculpted fall 2006 collection) the that discussion. But that’s an intellectual con- customer wouldn’t necessarily make the connec- his or her own, they don’t versation (or, if you prefer, pseudo-intellectual; tion or care. Ghesquière’s Balenciaga was about this is fashion). The fact is that the high heat of elevated, elegant rock-’n’-roll futurism — with an matter dramatically as a Ford’s Gucci and the gentility we’ve seen early inventive handbag and sculptural shoes that had on from Michele have little to do with each other. nothing to do with the house founder. selling point. The one point of fusion: Ford struck a cultural Balenciaga exists today as a fashion entity nerve and exploded it into commercial success; because of Ghesquière’s boldly modernist Lazarus Michele has found quick critical acclaim while act, not because there’d been a clamor to revive playing to a larger cultural issue, with his first midcentury haute constructions. While I have retail test in stores now. no scientific verification, it’s safe to say that only Similarly, the Saint Laurent and Gucci of today a tiny percentage of designer customers today share something intense: buzz. With Slimane could state anything significant about the work of want the clothes we want because we want them, having set the bar and Michele ascending to it Cristóbal Balenciaga, and even less so the larger not because they have a collar that related to one immediately, instant, extreme buzz may be the fashion-interested public. Of course, there are introduced in 1953. Exhibits A and B: Givenchy norm — and perhaps the new must — for Kering hyper-educated fashion purists out there, but and Céline. The obvious antithetical argument is hires. Wang didn’t create similar frenzy at Balen- hardly enough to support a house revival based Chanel. But, under Karl Lagerfeld’s stewardship ciaga. (His eponymous thrill factor remains in on archival accuracy. for so long, Chanel operates in a magical vacuum tact.) Whether that factored into his departure, In fact, I would argue that while house codes of its own. Who knows whether, had Alain Wert- who knows? It’s likely that his successor will have can provide structure and grounding to a designer heimer made a different call 30-plus years ago, to deal with the shadows of Slimane and Michele, THE POWER OF CONTENT walking into a situation not his or her own, they hiring a different designer (who likely would have and their castings may prove more imposing than

don’t matter dramatically as a selling point. We been the ﬁrst of several), the codes that Lagerfeld that of an intricately constructed cocoon coat. ■ Giannoni Giovanni by Photograph FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] 84 AUGUST 2015, No. 1 WWD.COM Think Tank

Gen Z: The Next Big Disruptor THE INNOVATORS: By Marcie Merriman BEAUTY’S TOP

Generation Z, the teens and tweens coming of age today, — occasionally zipping in, dropping bombs and redirecting as necessary — but just as quickly zip are not just another Millennial story. Far from it. They back out and let them self-direct. Gen Z’s parents have more consultative and transparent relation- are more self-aware, more self-reliant and more driven ships with their children and give them more of a voice in household decisions. than the generation they follow. Intuitively innovative, It will not be easy to win the hearts and minds of this generation, which is not only self-reliant, uberproductive, goal-oriented and realistic, they are growing ambitious and innovative, but also impatient and quick to discount those who can’t immedi- to be savvy consumers. Businesses hoping to connect with ately deliver on their needs or who complicate their lives. 25 them need to understand Brands not only need to give Gen Z shoppers what they want and how they want it, they also who they are and how they need to intuitively deliver on their evolving needs, allow them to be part of the solution and rapidly are about to turn today’s develop a relationship of mutual respect. market on its head. This will require substantial business and mar- ICONOCLASTS keting changes. What’s more, companies need As a strategist, I leverage my background in to learn to start making such changes more fre- cultural anthropology to recognize the nuances quently. Generations are borne from disruption. THE MOST INNOVATIVE THINKERS IN THE of human behavior within societal clusters and to Today, the very goal of businesses, political groups understand how small shifts in attitude can lead and social organizations is to disrupt the status GLOBAL BEAUTY INDUSTRY to big changes for retailers and brands. quo. In a world of instant global sharing, we are My Gen Z “aha” moment came a few years ago as going to see social shifts and changes in attitudes I was examining Millennial attitudes toward retail- and consumer expectations accelerate. Our gen- AD CLOSE: 09.25 ers’ environmental practices. Research showed erations will become shorter. Radical changes in that while Millennials did view companies with consumer behavior will become the norm. MATERIALS DUE: 10.02 strong environmental programs more positively, The entrepreneurial community has the advan- they weren’t likely to pay more for sustainable tage in this new world, having made a practice of products or to shop these businesses for this rea- fulﬁlling the human needs that established com-

son alone. But among the younger kids, a different Companies need to learn panies either can’t meet or don’t recognize. Large AN ISSUE OF WOMEN’S WEAR DAILY companies need to act more like start-ups and trend unfolded, one that ultimately offers a whole THE BUSINESS OF BEAUTY different set of challenges to merchants and mar- to start making such provide alternative innovations, not incremental keters. This cohort was more focused on what they improvements. could do to improve the environment versus what changes more frequently. Some organizations in the worlds of tech and was in it for them. This sense of personal owner- entertainment are meeting this challenge today. Generations are borne IMAN EXPANDS ship, rejection of the status quo and expectation Through a culture of innovation, they have devel- HER EMPIRE BEAUTY BUYERS IN THE LAND OF to be part of the solution are evidenced in the from disruption. oped a habit of understanding consumers as BIG HAIR GAME CHANGERS: achievements of Megan Grassell, who launched human beings and learned what drives them to 50 POWER PRODUCTS her own business after finding only “too sexy” bra repeatedly provide them products, services and options available for her little sister, and 17-year- experiences they can’t imagine living without. This old Raymond Wang, who won the world’s largest constant perceived threat of harm has become a human-centric approach is the basis for winning New high school science fair for inventing a new way defining characteristic for this generation. with Gen Z and the generations that will be quick Deal to keep germs from spreading in airplane cabins. Tolerance: Most people in Gen Z can’t remem- to follow. An In-Depth Look at With the world of information at their fingertips ber a time when there wasn’t an African-Amer- To succeed in this increasingly disruptive Why P&G Is Reshuffling and a belief that anything is possible, Megan, ican president and a woman wasn’t a serious environment, do what a cultural anthropologist Its Beauty Business Raymond and others like them are taking on big contender. Bullying changed from something would do: embrace the confusion with constant business and even bigger societal issues. society ignored to something that’s being actively curiosity. Seek the tensions, gaps and asymme- To understand what shapes the Gen Z world discouraged. LGBT acceptance soared, as did mar- tries — the things that don’t make sense or don’t view, consider their childhood: riage equality, which will now be their life norm. align. Dive in and understand the drivers of these Danger: Born after 1997, Gen Z’s lived through Boundless access: Millennials adapted to the anomalies from a holistically human perspective the biggest recession since the Thirties. They know rise of social media and mobile technology, but without judgment or assumption. This story

only a post-9/11 world — America at war and under Gen Z’s were born into it. They are true digital behind the story holds the clues that can trigger BB1506-PG0X-Cover.a.indd 1 threat has been their norm. Raised in the shadow natives, the ﬁrst to grow up with vast amounts the unexpected insights that lead to breakthrough of the Columbine massacre, they’ve witnessed of timely, global information and being instantly innovations. a rise in school violence, publicized mercilessly socially connected. 24/7. School metal detectors and lockdown drills Mini adults: Gen Z’s parents are more like Marcie Merriman is executive director, business THE POWER OF CONTENT are common protocol. Bullying has gone online stealth ﬁghters than the Millennials’ “helicop- strategy and retail innovation at Ernst & Young. She

and followed them on their mobile devices. The ter parents.” They monitor their kids’ activity is based in Columbus, Ohio. Manzati Andrea by Illustration FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] 86 AUGUST 2015, No. 1 WWD.COM REMEMBER MARKETPLACE

question what he was thinking — a rics, often with diamante tracery reality that many took with good or appliqués, flowers, embroidery, Arnold Scaasi: humor though others quite not as fur, beading and ruffles. INCREDIBLE well. His career was so chockablock After meeting by chance on Cen- with memorable moments, that tral Park South in July 1962, Scaasi Madison Avenue From the Socials Scaasi was reluctant to single out and Ladd embarked on what became SHOWROOM From Breaking any particular time period, even a 53-year union. “He asked me for a OPPORTUNITY IN NYC later in life when some tend to get drink and we never separated from Fashion News To First Ladies, He nostalgic. Asked if Scaasi liked to that very moment., Ladd said. They 135’ of frontage and visibility on both refer to a favorite stretch, his hus- were among the first same-sex cou- th band Parker Ladd said, “His entire ples in New York’s fashion scene to Madison Avenue and 59 Street. to The Industry’s Dressed Them All life — he was committed to fashion.” marry and they celebrated that mile- Iconic fashion address with building co-tenancy Scaasi’s career spanned decades, stone in 2011 at Le Cirque with 90 of that includes Ralph Lauren, Bergdorf Goodman, Top Stories OArnold Scaasi, who died earlier this week, will perhaps though his designs were not for the their nearest-and-dearest, including Neiman Marcus, Stuart Weitzman & Amsale. faint of heart. He liked sculptural former New York City Mayor Michael Contact Jeff rey D. Roseman WWD.com Delivers be most remembered as a designer and confidant to a shapes, including asymmetric and Bloomberg, Martha Stewart, Walters bevy of First Ladies and New York insiders. brioche forms and sumptuous fab- and Tory Burch. 212.372.2430 | [email protected] Access to Timely

By his own account, Scaasi Content Anywhere dressed ﬁve First Ladies — six, if “He was a dear you add in Lady Bird Johnson, You Are whom he put in a separate cat- friend and a brilliant egory. His White House days go far, fashion designer Subscribe to WWD.com today far back, to Mamie Eisenhower, whom he ﬁrst dressed in 1960, who could make “then on to Jackie Kennedy before any woman feel she went into the White House, as the Senator’s wife, and also after. like a princess. His And then, of course, Barbara Bush, dresses brought me Fashion. Beauty. Business. INVESTORS’ CHOICE who I still dress to this day, and JUL What stocks are 2015 No.4 analysts betting on in the second half — great joy — whether PATTERNS, SAMPLES, and which ones are Mrs. Clinton and Laura Bush. Is they avoiding? Features p. 42

EYE ON L.A. that the right order?” he asked in a Alli K., Zero Degrees they were for a Celsius and Tina + Jo PRODUCTIONS are among the brands to watch at 2009 interview with WWD. L.A. Market Week. Fashion p. 10

state dinner or just FOR WOMEN, MEN THE WHAT Indeed it was, with one omission: A DOLL Hot fashion e-tailer Dolls Kill must balance growth “Somewhere in there was Lady Bird AND CHILDRENS WEAR while it strives to a simple suit I could maintain its anti- FULL establishment cred. Be Fashion Johnson,” whom the designer views Retail p. 20

differently than the others precisely wear anywhere.” A Full Service Shop To The Trade STORY RESORT’S BIGGEST NEWS Forward because he didn’t deal with her Fine Fast Work 212-869-2699 WAS EXACTLY THAT — BIG, — BARBARA BUSH, FORMER FIRST LADY FLAMBOYANT VOLUMES. directly. Rather, President Lyndon Johnson would happen upon a Stay up-to-date on Scaasi design “and would tell his Although Scaasi made his way secretary, ‘I like that for my wife.’’’ in New York City and lived on new analysis, trends, Former First Lady Barbara Bush Central Park South and later Beek- said Tuesday, “I loved Arnold man Place for most of his adult and vital information Scaasi. He was a dear friend and life, he donated more than 100 a brilliant fashion designer who garments and sold his archives to SEE WHAT’S FIRST on the industry could make any woman feel like a the Museum of Fine Arts Boston princess. His dresses brought me in 2009. Known to be jaw-drop- IN FASHION Subscribe today at great joy — whether they were for pingly frank, Scaasi grabbed atten- US $9.99 JAPAN ¥1500 CANADA $13 CHINA ¥80 UK £ 8 HONG KONG HK100 a state dinner or just a simple suit I tion at that time when he chose JOIN MORE THAN 100K + PEOPLE EUROPE € 11 INDIA 800 wwd.com/subscriptions could wear anywhere. We some- to sell the archives for what was WHO FOLLOW US ON INSTAGRAM times would fight a little about col- believed to have been a six-digit ors and styles, and he, of course, sum instead of donating them, as was always right. Arnold’s legacy has been the norm for designers will be on display forever, thanks of a certain age. to the gorgeous blue Inaugural Ball The museum’s new trove Editorial Calendar gown he made for me, now at the includes the see-through black FASHION. BEAUTY. BUSINESS. Smithsonian’s American History tulle sequined ensemble Strei- Museum. His friends and the world sand wore to the 1969 Academy of fashion will miss him terribly.” Awards, a black sequined spiral As for Scaasi’s personal favor- gown for Crawford and a short ISSUE ISSUE ISSUE ISSUES ites, there were many, with the gray flannel number for Brooke August 26 September 2 September 9 September 10—17 former First Lady topping that list. Astor. A donation by benefactors M Collections. Made in America/NY North Park Milestone New York Fashion Joan Crawford, Elizabeth Taylor, Jean and Frederick Sharf allowed Ivana Trump, Joan Rivers, Danielle the MFA to buy drawings from CLOSE August 12 CLOSE August 19 CLOSE August 26 Week Dailies Steel, Diahann Carroll, Barbara Wal- more than 500 collections. Giving ters, Barbra Streisand, Mary Tyler up Streisand’s outfit was the one MATERIALS August 17 MATERIALS August 24 MATERIALS August 31 Moore and Mitzi Gaynor were all piece that gave him pause. “I was clients in his Rolodex. Unabashedly afraid it would wind up in a vault opinionated, quick-witted and feisty, somewhere, and it would never be Arnold Scaasi in 1965. ISSUE ISSUES ISSUES ISSUE Scaasi never left friends or foes to seen,” he said. ■ September 23 September 24, 25, 28 October 1, 2, 5, 6, 7 October 14

WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2015 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 210, No. 6. Wednesday, August 5, 2015. WWD (USPS 689-960, ISSN 0149-5380) is published weekly, with one Made in Italy Milan Fashion Week Paris Fashion Week Activewear additional issue in February, March, June, October, November and December, and two additional issues in April and August by Fairchild Publishing, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 475 Fifth Ave, New York, NY 10017. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at [email protected]. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Ser- Dailies Dailies vice address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or CLOSE September 9 CLOSE September 30 up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a subscription term and/or the way the product is delivered. Address all editorial, business, and production correspondence to WWD, 475 5th Ave, 15th Floor, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212- 630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WWD IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND MATERIALS September 14 MATERIALS October 5 TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MAN-

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88 AUGUST 2015, No. 1 WWD.COM For advertising inquiries, please contact Shannon Fitzgerald | 323-617-9094 | [email protected] WWD.COM AUGUST 5, 2015 89 FINALE Happy Birthday

Johnson & Johnson celebrates your 25 fabulous years!

Matt Dillon at The Palladium, May 1985 Letter Man O It’s hard to pinpoint the exact moment when Matt Dillon became the poster boy for Gen X, but certainly starring roles in ﬁlms that celebrated twentysomething angst — “Singles,” “Drugstore Cowboy” and “Beautiful Girls” among them — cemented his standing. Dillon’s youthful good looks, husky voice and slacker persona resonated with an entire generation. Here, the then-21-year-old actor attends a party at The Palladium in New York, for which Azzedine Alaïa created the all-black uniforms worn by the club’s staﬀ. — DONNA HEIDERSTADT Thank you for the best-in-class partnership 90 AUGUST 2015, No. 1 WWD.COM Photograph by ROBERT KIRK