LET'S TRY THESE:

JESSICA’S NEW DEAL

SEQUENTIAL BRANDS GROUP ACQUIRES A MAJORITY STAKE IN THE JESSICA SIMPSON BRAND. JESSICA’S PAGE 2 EDDIE’S NEW DEAL EDDIE’S BIGGER BET SEQUENTIAL BRANDS BIGGER BET GROUP ACQUIRES A EDWARD LAMPERT RAISES ANOTHER O AT 15 EDWARD LAMPERT RAISES MAJORITY STAKE IN $2.5 BILLION TO FUND SEARS HOLDING ANOTHER $2.5 BILLION TO FUND OPRAH WINFREY GETS SET TO MARK THE THE JESSICA SIMPSON CORP. VIA A NEW REAL ESTATE 15TH ANNIVERSARY OF HER MAGAZINE SEARS HOLDING CORP. VIA A NEW BRAND. PAGE 2 INVESTMENT TRUST. PAGE 7 REAL ESTATE INVESTMENT TRUST. AMID CHALLENGES ALL AROUND. PAGE 6 PAGE 7

O AT 15

OPRAH WINFREY GETS SET TO MARK THE 15TH ANNIVERSARY OF HER MAGAZINE AMID CHALLENGES ALL AROUND. PAGE 6

MEN’S SUMMIT TALKS GROWTH

AFTER BID REJECTED THURSDAY, APRIL 2, 2015 ■ $3.00 ■ WOMEN’S WEAR DAILY WWD FOR SIMON AND MACERICH, QUESTION IS: WHAT’S NEXT? The Salzburg Singers NEW YORK — Pharrell Williams summed up Chanel’s Salzburg takes New York spectacular best: “This is so surreal.” The artist was rounding out his set at the post-show bash at the Park Avenue Armory on Tuesday night when he took a moment between songs to take it all in. “I can’t believe I’m here right now,” he said. He was joined onstage by his “Reincarnation” costar Cara Delevingne as the two belted out “CC The World,” the soundtrack written for the Karl Lagerfeld-lensed short, in front of an audience that included Beyoncé, Dakota Johnson and Lily Collins. For party coverage and a catch-up with Lagerfeld in Bridget Foley’s Diary, see pages 4 and 5.

Men’s Summit Talks Growth AFTER BID REJECTED es and opportunities of servicing this new By WWD STAFF customer. Topics discussed included: I Targeting the $73.3 billion men’s mar- For Simon and Macerich, NEW YORK — “Men are the new women.” ket in China — the largest and most ro- That seemed to be the overriding bust category in that country; theme running through the WWD Men’s I Juggling how to make a mark at a Wear Summit, held at the Asia Society major fashion label such as Calvin Klein Question Is: What’s Next? here last week. while remaining true to its history; The male consumer’s eagerness I Zeroing in on the red-hot accessories that disconnect persist is not an option, to embrace new fashion trends and market at Saks Fifth Avenue; By DAVID MOIN and we intend to act decisively to cor- shifts in silhouettes have transformed I Exploring the expansion from leather rect the situation,” Arthur Coppola, the business, impacting everything goods to men’s wear at Coach; EVEN THOUGH SIMON Property chairman and chief executive offi cer of from traditional, classic luxury labels I Embracing innovation to enhance the Group has withdrawn its $16.8 billion Macerich, said late Tuesday night, just to activewear brands. This sea change customer experience at Under Armour; bid, that doesn’t mean the targeted after the fi rm’s board unanimously re- is happening around the world, from I Breaking out of a women’s-only men- Macerich Company is off the hook. jected Simon’s takeover offer. Europe and the U.S. to Asia. tality at Lululemon. Investors will carefully watch for Coppola cited a “rigorous” business Top executives from all walks of the For more on the Men’s Wear Summit, movement in Macerich’s stock, which on plan put forward last November, in- business offered insights on the challeng- see pages 8 to 12. Wednesday fell 6.6 percent, or $5.60, to volving “recycling” out of lower growth $78.73, after Simon’s last offer was re- assets; redeploying capital into highly buffed by the Macerich board. It’s an in- productive assets; expansion and re- dication Wall Street isn’t happy about the development projects under way, and outcome. Simon Property Group’s stock identifying additional opportunities. rose $2.35, or 1.2 percent, to $197.99. Macerich has a goal of increasing op- Now Macerich must move deliber- erating margins by 4 percent over the ately to push up the stock price by in- next 18 to 24 months through property creasing productivity at its properties expense reductions, common area en- and shedding those with little life, all hancements geared to boost revenues to prove that rejecting Simon was the and expanding its outlet business. right decision for shareholders. “We “It’s pretty clear [Macerich] needs to realize that Macerich currently faces prove they are as valuable as they think a disconnect between private market they are,” said a fi nancial source who valuations and public market views — works with Simon. a situation we have seen before. Letting SEE PAGE 7 2 WWD THURSDAY, APRIL 2, 2015 WWD.COM Sequential Buys Majority Stake in Simpson the brand’s licensing partners, including Camuto THE BRIEFING BOX By LISA LOCKWOOD Group for footwear. “Together with Sequential’s global activation platform, we believe the brand IN TODAY’S WWD JESSICA SIMPSON, the singer-reality TV star- will continue to grow in current markets and in new designer whose fashion brand flourished under markets around the globe. Camuto Group to the tune of $1 billion in retail “The opportunity to become partners with Jessica sales, is changing hands. is unbelievable,” Shmidman told WWD. He said he Sequential Brands Group Inc., has signed a de- met with Simpson and her team, and the deal grew fi nitive agreement to acquire a majority stake in organically. “Being in the industry, we’ve had our eye the Jessica Simpson brand, including the Jessica on her and her success and got to know her. I fell in Simpson Collection master license and other love with the business and the opportunity,” he said. rights, for an undisclosed amount of cash and stock. Shmidman is particularly looking forward to grow- Simpson, 34, chose Sequential as her new business ing the business in Asia, the Middle East and Latin partner and will continue to own the America. At present, the vast majority balance of the equity of her company. of the Simpson business is done in the According to sources, Sequential is U.S. “We believe there are a number looking to build Simpson’s empire into of emerging and mature markets” that a $2 billion to $3 billion operation, with would love to have Simpson’s collections, a focus on international growth. he added. Another area of opportunity Asked which categories she would would be an e-commerce platform for still like to add, Simpson said, “It’s Simpson, which doesn’t exist yet. humbling to think that we now have 31 Alex DelCielo, ceo of Camuto Group, product categories in the collection. said, “We are excited to work with Together with my mom, Tina, and the Sequential and to continue working Pharrell Williams, Helen Lasichanh, Karl Lagerfeld and Beyoncé. rest of the JS team, we are always look- closely with Jessica and the Jessica STEVE EICHNER PHOTO BY ing for new ways to reach our consum- Simpson brand. We have enjoyed many ers. I have a passion for home design, so years of success with Jessica, and we I’m excited to expand on our home and are committed and looking forward to lifestyle offerings. I also look forward many more years ahead.” Even though Simon Property Group has withdrawn its $16.8 to further developing our e-commerce Sequential has received commit- billion bid, that doesn’t mean the targeted Macerich Company site and taking our brand all over the ted financing from Bank of America is off the hook. PAGE 1 world.” She also said she looks forward and GSO Capital Partners LP, an affi li- to having her own freestanding stores ate of Blackstone Group. The transac- “Men are the new women,” seemed to be the overriding both in the U.S. and abroad “where I tion, which is slated to close in 90 days, theme running through the WWD Men’s Wear Summit, held at can dress a woman from head to toe, is expected to be immediately accretive. the Asia Society here last week. PAGE 1 while offering them a more complete David Levin of David Levin Business experience of who I am.” Management and Charles Grimes of Wealth, creativity and craft were on powerful view at Chanel’s Vince Camuto, the late founder and Jessica Grimes LLC were responsible for struc- Métiers d’Art show at the Park Avenue Armory on Tuesday night, chief executive offi cer of Camuto Group, Simpson turing the transaction on behalf of which hosted guests including Pharrell and Beyoncé. PAGE 4 who died Jan. 21, bought the master li- IMAGES FOR JESSICA JAMIE MCCARTHY/GETTY SIMPSON COLLECTION PHOTO BY Simpson and advised her on valuation, cense for Jessica Simpson in 2005 for $15 intellectual property and licensing mat- Cruise collections are a moving target this season. Dior, million. With the closing of the new deal, Camuto’s ters. Mitchell C. Littman of Littman Kroos LLP advised which had planned to stage its show in Los Angeles on May 9, master license for the Jessica Simpson Collection has Simpson on corporate legal matters. The deal team has decided on a new country and date. PAGE 6 been replaced with a new, long-term license to manu- that represented Sequential during the acquisition facture and distribute footwear. All of Simpson’s other was led by Tengram Capital Partners. Gibson Dunn ad- Terry J. Lundgren saw his total compensation as Macy’s Inc.’s licensing agreements are expected to stay in place, vised Sequential on legal matters. such as jeanswear with Jones Jeanswear, fragrance Sequential, a brand management organization, chairman and chief executive offi cer increase 37.1 percent to with Parlux Fragrances, dresses with G-III Apparel has a portfolio of companies generating $2 bil- $16.5 million in 2014. PAGE 6 Group and handbags with Trebbiano LLC. Several lion in global retail sales, which will reach $3 bil- of the Camuto employees who market the Jessica lion once the deal closes. Its brands include And Oprah Winfrey emerged from her green room after a daylong Simpson brand are moving over to Sequential. 1, Avia, footwear brand Nevados, Linens-N-Things, shoot at the Chelsea Piers in Manhattan, during which she Camuto engineered the growth of Simpson’s brand Ellen Tracy, Revo, Caribbean Joe, William Rast, The posed for three covers of O, The Oprah Magazine. PAGE 6 from footwear into a multicategory celebrity business. Franklin Mint and Heelys. The company is traded Today the brand has 31 product categories, including on NASDAQ. For the year ended Dec. 31, Sequential American Apparel chief executive offi cer Paula Schneider will footwear, apparel, fragrance, fashion accessories, ma- had on a GAPP basis a net loss of $1.1 million versus eliminate about 180 jobs in her bid to turn around the struggling ternity apparel, girls’ clothing and a home line. The a loss of $18 million a year ago, on total revenues of Los Angeles-based fi rm. PAGE 7 line is distributed through such retailers as Dillard’s, $24 million, compared to $12.3 million a year ago. Macy’s, Belk, Lord & Taylor and Nordstrom, and has The Simpson brand was founded and built in part- Edward Lampert is raising yet another $2.5 billion in his big 2,500 points of distribution worldwide. nership with Jessica’s mother and younger sister, bet on reinventing retailing and his struggling Sears Holdings “I am extremely honored to partner with Ashlee Simpson Ross, who serves as cocreative direc- Corp. PAGE 7 Sequential Brands Group to continue the growth and tor of Jessica Simpson Girls. It launched at the same integrity of the Jessica Simpson Collection,” Simpson time Simpson appeared as Daisy Duke in “The Dukes said. “Working together with the powerful manage- of Hazzard.” In a WWD interview last July, Camuto ON WWD.COM ment team at Sequential and with all of our trusted spoke about the success of the Simpson license. “It retailers and licensees, including Camuto Group, was the right time at the right place. It’s almost her EYE: Pharrell Williams and Beyoncé were among the there is no limit to our success. I’m as committed as I 10-year anniversary and she never got into trouble. We constellation of stars in attendance to witness Chanel’s was 10 years ago. Here’s to the next billion.” gambled with it, but it worked out. We built a whole Métiers d’Art show in New York. For more, see WWD.com. Yehuda Shmidman, chief executive offi cer of showroom. When the retailers came in, they were ex- Sequential, added, “Jessica Simpson is an enter- cited about it right from the beginning. The good news tainment and style icon who successfully built an is it really works, and so many celebrities have called incredibly strong fashion brand with best-in-class us, but we don’t like to repeat the same thing twice.” CORRECTION licensees and leading retail partners.” He said he Simpson’s secret, according to Camuto, is her ap- Tiffany started making watches in 1847. The date was incorrect was happy to partner with Jessica, her team and proachability. “People like her,” he told WWD in 2010. in a story on page 6, Wednesday.

FOLLOW US ON SOCIAL MEDIA Calvin Klein to Sponsor Exhibit in Central Park @ WWD.com/social CALVIN KLEIN COLLECTION City alongside Creative Time,” explore Northern Central Park will sponsor Drifting in Daylight, said Melisa Goldie, chief mar- landscape features such as the TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. a springtime art exhibition wind- keting offi cer of Calvin Klein Harlem Meer, Great Hill and WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. ing through New York’s Central Inc., a wholly owned subsidiary Conservatory Gardens. COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 209, NO. 67. THURSDAY, APRIL 2, 2015. WWD (ISSN 0149-5380) is published daily (except Saturdays, Sundays Park presented by public arts of PVH Corp. She added the Calvin Klein Collection’s and holidays, with one additional issue in March, June, August, September, October, November and December, and two organization Creative Time, and company is looking forward to Francisco Costa, women’s cre- additional issues in April and three additional issues in February) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Floor, Los Angeles, CA 90025. Periodicals Central Park Conservancy. celebrating the Central Park ative director, and Italo Zuccelli, postage paid at Los Angeles, CA, and at additional mailing offi ces. Canada Post: return undeliverable Canadian addresses The free exhibition, which Conservancy’s 35th anniversary men’s creative director, will host to P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WWD, opens May 15, aims to draw “by supporting the initiative an exclusive invitation-only din- 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 visitors into the park’s North and bringing visitors the oppor- ner on May 14 in celebration of wwdPrint@cdsfulfi llment.com. Please include both new and old addresses as printed on most recent label. For New York End, much of which has been tunity to immerse themselves the unveiling. Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected restored by the Conservancy. in these incredible works of art Starke, director of exhibitions address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you Co-curated by Cara Starke and within one of the world’s most at Creative Time, said, “Eight are ever dissatisfi ed 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 Nato Thompson, the six-week- iconic parks.” artists have conjured eight al- contained in a subscription term and/or the way the product is delivered. Address all editorial, business and production end show runs on Fridays and Artists including Marc luring, challenging interpreta- correspondence to WWD, 475 Fifth 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. Saturdays from noon to 6 p.m., Bamuthi Joseph, Spencer tions of our everyday park ex- For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. until June 20. Finch, Alicia Framis, Nina perience. Drifting in Daylight 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 “We are honored to be able Katchadourian, Ragnar invites the public on a springtime MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND to take part in such an excit- Kjartansson, David Levine, stroll of artworks that punctuate TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED ing event, which both show- Karyn Olivier and Lauri and playfully mimic New York’s TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE cases and supports New York Stallings will invite guests to urban oasis. — L.L. ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. WWD PLACES THE WORLD OF FASHION AT YOUR FINGERTIPS.

FOLLOW US AT 4 WWD Thursday, april 2, 2015 Métiers Takes Manhattan Wealth, creativity, craft. of the house’s number-one Of Monday’s audience of 650, regular ready-to-wear, Pavlovsky “fashion is about agility.” in concert, extreme doses employee, its creative genius 200 were clients. they got an acknowledged the obvious, that lagerfeld couldn’t agree more. of the three make for a mighty and its face to the world. it’s an up-close look at Métiers d’art, both are “a big investment,” but he keeps his thoughts on the trinity, a fact on powerful view arrangement unique in fashion. one of the fastest-growing areas beyond that, not surprisingly, no future — the next collection and at chanel’s Métiers d’art show in an age when brand dominates of chanel’s business. after details. “We don’t even talk about the next, sometimes waking up at the Park avenue armory on designer unapologetically (and the couture, it’s also the most delivery-of-investment,” he said. in the morning with plans for his tuesday night. understandably) at every other elaborate, highlighting the work “We talk about the capacity to next set fully formed in his head

as everyone with even a turn, lagerfeld stands alone of the Métiers companies owned have a specific story, a story that that he sketches out immediately. remote interest in fashion at the non-ownership pinnacle by chanel via its Paraffection is meant to move. that is more for Seoul, he decided to avoid knows, this was a restaging of of power, a post made possible subsidiary. When on the road important than talking about too much reliance on history, the Paris-Salzburg show first by alain Wertheimer’s obvious — Salzburg, Dallas, edinburgh — money.” noting, “for me, Korea is the presented at the rococo palace and complete trust in him, that lagerfeld typically incorporates and well worth it, on many world of the future.” thus, he’s Schloss leopoldskron trust in turn secured elements of local tradition into his levels. clients from california, opted to show not in a location in December. it lost and maintained by lineup. yet no matter how fanciful florida and texas in addition rich with ancient resonance nothing for having been lagerfeld’s remarkable the Maison Michel chapeaux or to New york attended the show, but in a Zaha hadid-designed take two — even if the decades-long track how regional the inspirations creative genius behind record. behind the lesage embroideries, the whole shebang had yes, lagerfeld’s he keeps the clothes chic and moved on, intellectually “working class” status real, a fact driven home as the and practically, if has worked’’ well for models negotiated the aisles and not physically. Karl him; most of us can only turns of the armory’s temporarily lagerfeld was, of dream of experiencing palatial chambers. course, in attendance, Bridget Foley’s a day in the life of the this is where the craft comes the brightest star on pampered choupette. in. if lagerfeld can imagine a night of stars that Diary (She travels with her it, these jewel companies can featured Julianne own maid.) But season create it and the chanel studio Moore; Beyoncé; Pharrell after season, show after show, can execute it to lagerfeld’s Williams; Dakota Johnson; lagerfeld sings for his supper exacting standards. Passing by: vanessa Paradis with her as intensely and obsessively as one exquisitely embellished enchanting daughter, ingénue in those days long ago when he jacket after another, from actress lily-rose Depp; Patti had to. spins on the house classic to an Smith, Geraldine chaplin, lily “you have to continue to intensely feathered, flowered, collins and on and on. make an effort,” advised the flyaway gem; gorgeous sweaters lagerfeld walked the vast notorious workaholic. “i cannot including one buttoned back runway through the one-night- only palatial labyrinth that recalled but didn’t imitate an opulent austrian palace I cannot get any satisfaction (“you can’t recreate the 18th century”), all golden walls and from what I did. I can only get gilded seating under the glow of enormous crystal chandeliers. satisfaction when I’m doing it. later, he quipped dutifully with stars at the after party. — KARL LAGERFELD For more photos, see But make no mistake: redux — even one that dazzles, delights get any satisfaction from what with a white frill down the front; and demands attention — isn’t i did. i can only get satisfaction Keira Knightley’s Golden Globes lagerfeld’s natural inclination. when i’m doing it.” Once finished butterfly dress (what was wrong Normally, “i’m not supposed to with a project, satisfaction flees, with all those social media see this stuff twice because i’m in and he lives “in a permanent haters?), a series of bow-marked the middle of the next collection,” state of ‘i could do better, i could lBDs that were anything but he said, ensconced in a corner improve, i need a kick in the basic. Within the razor-sharp banquette in the lobby lounge of ass.’ i wake up not pleased with focus, lagerfeld exhibited the Mercer hotel the day before myself. it’s very funny, no?” why his chanel has such cross- the show. “there’s an old German yet he resists any inclination generational appeal, showing, Karl Lagerfeld with Beyoncé in Chanel. line. it’s one of my favorite lines to indulge in glum. there’s “no along with elegantly adult looks, that goes, ‘no credit on the past.’” time to be disappointed because others delightfully young in spirit yet no one understands better i have to start immediately if not in price. Some’’ featured according to John Galantic, museum. “i’m not doing a cultural than he the needs and demands again. the minute the thing is leather lederhosen-hotPants or president of chanel inc., the thing — no, no, no, no, no. there of the moneyed marketplace. it’s over, it’s ‘what’s next?’” knickers; many were shown with house’s U.S. wing. Such events may be a few influences but part of what has kept him at the a chanel production is thick, flower-strewn tights, likely are hugely exciting for people they are not used like a cultural pinnacle of fashion influence nothing if not labor-intensive. in the work of Barrie cashmere. “who realize that chanel has homage to the country. this is in and fascination, 32 years and the past several years, lagerfeld the audience reveled in the come into their city and into fact, futuristic.” counting into his legendary has taken to doing mega sets, visual extravagance, a mood their world,” he said. “the But pragmatist that he is, chanel gig. essential, he said, in this day right for the moment, according appeal of this collection is very lagerfeld’s not talking a space lagerfeld also loves to make of global fashion. “you have to to lagerfeld. “Minimalism [has much tied to the uniqueness of odyssey. to him, futuristic in known that he knows his place, do your shows with the big sets limits], because people will die the clothes that goes beyond the fashion means looking ahead six taking pleasure in verbalizing today,” he said. “you have to from boredom,” he said. “i’m ordinary ready-to-wear, with this months. “Not even six months his employee-only, designer-only give something visual. Because not against it, but there is a heightened sense of exclusivity anymore,” he auto-corrected. status. “the business part, i girls coming out on a runway minute where fantasy is needed. that really sets chanel apart.” “Now it’s three months-three don’t make business, i don’t take — there’s nothing wrong; it’s fashion is like the sea. there Galantic added that customers months-three months.” percentages out,” he said. “Bruno interesting for people in fashion. are waves.” are well informed on the special though the pace should be [Pavlovsky, chanel’s president of But for the rest of the world who With Métiers d’art, chanel nature of Métiers d’art. “We have exhausting, lagerfeld never fashion] and i, we do a decent job. buys the nail polish, the lipstick is taking full advantage of that clients who love everything from gives any outward sign of fatigue, We are not too pretentious; we for a global label, it’s a problem wave, according to Pavlovsky. the life of coco, to the modernity either physical or creative. “it is don’t take ourselves too seriously. to show something that looks he noted that the collection is that Karl is infusing into the no problem for me because i have Bruno looks like a schoolboy. [plain]. that’s our time….you among chanel’s fastest-growing collections,” he said. “they talk a strong voice,” he said. then i never interfere in his job; he have to adapt, we have to adapt. enterprises, and the individual to their sales associates about there’s that super-human work never interferes in mine. We don’t i am an opportunist so i adapt companies, all profitable and the Métiers d’art individual ethic that drives him to turn out have meetings because i think easy. a professional opportunist. primed for growth. “it’s very artisan houses. they’ll know a one chanel extravaganza after meetings can kill creativity.” One has to be.” special,” Pavlovsky said. “the lesage embroidery is a special another, many in remote parts of asked when the decision to that end, every chanel items you see in the boutique kind of embroidery.” the world, and work in all kinds of was made to take Salzburg to show has a sizable client roster are quite unique. Our customers Given such local enthusiasm outside projects, from his beloved Manhattan, lagerfeld continued among its invited guests, a are looking for very special and the global attention these photography to artistic direction the thread: “i don’t know. i reality immediately obvious to outfits and they can find this shows garner, it makes sense of the upcoming hyères festival don’t make any decisions here. anyone exiting one of Paris’ top sophistication through this that the house would want to of fashion and Photography. My decisions are limited to hotels an hour or so prior to one collection. that doesn’t mean schedule second showings on a he wouldn’t have it any other the studio. i never interfere in of chanel’s spring or fall ready- they cannot find it in other regular basis, but Pavlovsky said way. “i spend time nowhere except business, never ever, but nobody to-wear shows. each season, collections, but this one is no such master plan is in the where i’m working,” lagerfeld interferes in the studio.” legions of chic, non-industry special. it’s only chanel who’s works. “each time we have to said, lest one wonder if he’d take that clear division of women turn out in their newest doing that, with Métiers d’art. find the right reason to [repeat] in a museum exhibit or Broadway responsibility works to apparent chanel purchases and settle it’s something we give the a specific show. We are not into show while in New york. “i’m not perfection. yet if all facets into their cars for the brief ride customers. there’s space for that duplication,” he said, adding a tourist. it bores me. and i cannot operate independently, all to the Grand Palais. there, one- today in the fashion world.” that though Seoul is little more walk in the streets. i don’t want revolve intrinsically around third of the typical seating of asked about the cost of staging than a month away it’s too to do selfies with 300 unknown the personality and production 3,000 is reserved for clients. a Métiers’ show versus the early to decide about that one: people, you know?” 4 WWD Thursday, april 2, 2015 WWD THURSDAY, APRIL 2, 2015 5 WWD.COM

Patti Smith Kris Jenner Lily Collins and Banks in Chanel with Dakota Johnson Métiers Takes Manhattan in Haute Couture. Wealth, creativity, craft. of the house’s number-one Of Monday’s audience of 650, regular ready-to-wear, Pavlovsky ““Fashionfashion is about agility.” in concert, extreme doses employee, its creative genius 200 were clients. they got an acknowledged the obvious, that lLagerfeldagerfeld couldn’t agree more. of the three make for a mighty and its face to the world. it’s an up-close look at Métiers d’art, both are “a big investment,” but hHee keeps his thoughts on the trinity, a fact on powerful view arrangement unique in fashion. one of the fastest-growing areas beyond that, not surprisingly, no future — the next collection and at chanel’s Métiers d’art show in an age when brand dominates of chanel’s business. after details. “We don’t even talk about the next, sometimes waking up at the Park avenue armory on designer unapologetically (and the couture, it’s also the most delivery-of-investment,” he said. in the morning with plans for his tuesday night. understandably) at every other elaborate, highlighting the work “We talk about the capacity to next set fully formed in his head as everyone with even a turn, lagerfeld stands alone of the Métiers companies owned have a specific story, a story that that he sketches out immediately. remote interest in fashion at the non-ownership pinnacle by chanel via its Paraffection is meant to move. that is more fForor Seoul, he decided to avoid knows, this was a restaging of of power, a post made possible subsidiary. When on the road important than talking about too much reliance on history, the Paris-Salzburg show first by alain Wertheimer’s obvious — Salzburg, Dallas, edinburgh — money.” noting, ““Forfor me, Korea is the presented at the rococo palace and complete trust in him, that lagerfeld typically incorporates and well worth it, on many world of the future.” tThus,hus, he’s Schloss leopoldskron trust in turn secured elements of local tradition into his levels. clients from california, opted to show not in a location in December. it lost and maintained by lineup. yet no matter how fanciful florida and texas in addition rich with ancient resonance nothing for having been lagerfeld’s remarkable the Maison Michel chapeaux or to New york attended the show, but in a Zaha hHadid-designedadid-designed take two — even if the decades-long track how regional the inspirations creative genius behind record. behind the lesage embroideries, the whole shebang had yes, lagerfeld’s he keeps the clothes chic and moved on, intellectually “working class” status real, a fact driven home as the and practically, if has worked’’ well for models negotiated the aisles and not physically. Karl him; most of us can only turns of the armory’s temporarily eye lagerfeld was, of dream of experiencing palatial chambers. course, in attendance, Bridget Foley’s a day in the life of the this is where the craft comes the brightest star on pampered choupette. in. if lagerfeld can imagine a night of stars that Diary (She travels with her it, these jewel companies can featured Julianne own maid.) But season create it and the chanel studio Moore; Beyoncé; Pharrell after season, show after show, can execute it to lagerfeld’s Williams; Dakota Johnson; lagerfeld sings for his supper exacting standards. Passing by: vanessa Paradis with her as intensely and obsessively as one exquisitely embellished enchanting daughter, ingénue in those days long ago when he jacket after another, from Chanel Gets Lucky actress lily-rose Depp; Patti had to. spins on the house classic to an Smith, Geraldine chaplin, lily “you have to continue to intensely feathered, flowered, “Chanel!” Pharrell Williams said. “I can’t believe I’m here collins and on and on. make an effort,” advised the flyaway gem; gorgeous sweaters right now.” lagerfeld walked the vast notorious workaholic. “i cannot including one buttoned back Yes, it was so hard to believe Karl Lagerfeld staged a runway through the one-night- Chanel show in the middle of New York’s Upper East only palatial labyrinth that Side Tuesday night, even Pharrell was incredulous. recalled but didn’t imitate He was speaking from a makeshift stage at the an opulent austrian palace I cannot get any satisfaction Park Avenue Armory after Lagerfeld sent down (“you can’t recreate the 18th a labyrinthine runway a parade of models that century”), all golden walls and from what I did. I can only get included Cara Delevingne, Kendall Jenner and Stella gilded seating under the glow of Tennant, showing off the work of the house’s enormous crystal chandeliers. satisfaction when I’m doing it. Métiers d’Art companies. later, he quipped dutifully with Williams was part of the constellation of stars stars at the after party. — KARL LAGERFELD ForFOR moreMORE photos,PHOTOS, seeSEE in attendance to witness the once-in-a-blue-moon But make no mistake: redux event — Beyoncé, Julianne Moore and Dakota Johnson — even one that dazzles, delights get any satisfaction from what with a white frill down the front; WWD.com/eye. were among the others. and demands attention — isn’t i did. i can only get satisfaction Keira Knightley’s Golden Globes Kris Jenner, one of the fi rst to arrive, came to lagerfeld’s natural inclination. when i’m doing it.” Once finished butterfly dress (what was wrong New York from Los Angeles just for the occasion. Normally, “i’m not supposed to with a project, satisfaction flees, with all those social media “Only for Karl,” she said, installed in an see this stuff twice because i’m in and he lives “in a permanent haters?), a series of bow-marked armchair toward the entrance. “I missed the the middle of the next collection,” state of ‘i could do better, i could lBDs that were anything but Lily Rose Salzburg show so I’m relieved I get to see it here.” he said, ensconced in a corner improve, i need a kick in the basic. Within the razor-sharp Depp and Most guests were still snaking through the Rainey and banquette in the lobby lounge of ass.’ i wake up not pleased with focus, lagerfeld exhibited Vanessa Julianne gilded furniture trying to locate their seats. Margaret the Mercer hotel the day before myself. it’s very funny, no?” why his chanel has such cross- Paradis in Moore in Johnson ended up on a settee in the center of Qualley in ▲ the show. “there’s an old German yet he resists any inclination generational appeal, showing, Karl Lagerfeld with Beyoncé in Chanel. Chanel. Chanel. the room, across from Lily Collins and Banks, both Chanel. line. it’s one of my favorite lines to indulge in glum. there’s “no along with elegantly adult looks, perched on an ivory pew. The ladies inevitably that goes, ‘no credit on the past.’” time to be disappointed because others delightfully young in spirit ended up discussing their Chanel wares. “I yet no one understands better i have to start immediately if not in price. Some’’ featured according to John Galantic, museum. ““I’mi’m not doing a cultural turned around the top and sashed it,” Collins Nicola Peltz than he the needs and demands again. the minute the thing is leather lederhosen-hotPants or president of chanel inc., the thing — no, no, no, no, no. tTherehere said of her black satin crepe top from the spring in Chanel. of the moneyed marketplace. it’s over, it’s ‘what’s next?’” knickers; many were shown with house’s U.S. wing. Such events may be a few influencesinfl uences butbut collection. Johnson opted for a silver skirt suit part of what has kept him at the a chanel production is thick, flower-strewn tights, likely are hugely exciting for people they are not used like a cultural from spring couture. “I feel like a fi rst lady,” she pinnacle of fashion influence nothing if not labor-intensive. in the work of Barrie cashmere. “who realize that chanel has homage to the country. tThishis is in said. Moore’s footwear caused quite a stir when she and fascination, 32 years and the past several years, lagerfeld the audience reveled in the come into their city and into fact, futuristic.” arrived. The heels — black strappy sandals with a lit counting into his legendary has taken to doing mega sets, visual extravagance, a mood their world,” he said. “the But pragmatist that he is, Lucite heel — produced a headlights-type effect as chanel gig. essential, he said, in this day right for the moment, according appeal of this collection is very lLagerfeld’sagerfeld’s not talking a space the crowd parted, clearing the aisles to let her pass. lagerfeld also loves to make of global fashion. “you have to to lagerfeld. “Minimalism [has much tied to the uniqueness of odyssey. tToo him, futuristic in “You can switch them on and off,” she said from her known that he knows his place, do your shows with the big sets limits], because people will die the clothes that goes beyond the fashion means looking ahead six seat, demonstrating the party trick. “I think I’ll turn taking pleasure in verbalizing today,” he said. “you have to from boredom,” he said. “i’m ordinary ready-to-wear, with this months. “Not even six months them off for the show if the lights go down.” his employee-only, designer-only give something visual. Because not against it, but there is a heightened sense of exclusivity anymore,” he auto-corrected. Soon the lights did go down with one seat still status. “the business part, i girls coming out on a runway minute where fantasy is needed. that really sets chanel apart.” “Now it’s three months-three empty. Then, Queen Bey emerged from backstage and don’t make business, i don’t take — there’s nothing wrong; it’s fashion is like the sea. there Galantic added that customers months-three months.” was ushered to her throne next to Pharrell, cuing the percentages out,” he said. “Bruno interesting for people in fashion. are waves.” are well informed on the special tThoughhough the pace should be show to begin. [Pavlovsky, chanel’s president of But for the rest of the world who With Métiers d’art, chanel nature of Métiers d’art. “We have exhausting, lLagerfeldagerfeld never “I love how he mixes the most unexpected pieces, the fashion] and i, we do a decent job. buys the nail polish, the lipstick is taking full advantage of that clients who love everything from gives any outward sign of fatigue, socks with the shorts and sequined blazer. Karl’s mind We are not too pretentious; we for a global label, it’s a problem wave, according to Pavlovsky. the life of coco, to the modernity either physical or creative. ““Itit is is like an explosion of ideas,” Collins said post-show as don’t take ourselves too seriously. to show something that looks he noted that the collection is that Karl is infusing into the no problem for me because iI have she made her way from the front row to the darkened Bruno looks like a schoolboy. [plain]. that’s our time….you among chanel’s fastest-growing collections,” he said. “they talk a strong voice,” he said. tThenhen salon where Williams was about to perform. i never interfere in his job; he have to adapt, we have to adapt. enterprises, and the individual to their sales associates about there’s that super-human work After working with Lagerfeld on a short fi lm about the never interferes in mine. We don’t i am an opportunist so i adapt companies, all profitable and the Métiers d’art individual ethic that drives him to turn out Métiers d’Art collection, Williams jumped at the chance have meetings because i think easy. a professional opportunist. primed for growth. “it’s very artisan houses. they’ll know a one cChanelhanel extravaganza after to team with the designer again. meetings can kill creativity.” One has to be.” special,” Pavlovsky said. “the lesage embroidery is a special another, many in remote parts of “I’m a fan. I’m, like, a huge fan and it’s not often that as a fan you get asked when the decision to that end, every chanel items you see in the boutique kind of embroidery.” the world, and work in all kinds of a chance to work with a someone you respect,” the singer said, wearing was made to take Salzburg to show has a sizable client roster are quite unique. Our customers Given such local enthusiasm outside projects, from his beloved custom Chanel. “It’s just made for a really incredible yet educational Manhattan, lagerfeld continued among its invited guests, a are looking for very special and the global attention these photography to artistic direction experience. I learn so much from him. Whenever we work together, I get the thread: “i don’t know. i reality immediately obvious to outfits and they can find this shows garner, it makes sense of the upcoming hHyèresyères fFestivalestival to ask him questions and he actually tells me and he’ll sketch things right don’t make any decisions here. anyone exiting one of Paris’ top sophistication through this that the house would want to of fFashionashion and Photography. in front of me. That man is as sharp as a pen.” My decisions are limited to hotels an hour or so prior to one collection. that doesn’t mean schedule second showings on a hHee wouldn’t have it any other Williams teased future collaborations without giving away any the studio. i never interfere in of chanel’s spring or fall ready- they cannot find it in other regular basis, but Pavlovsky said way. ““Ii spend time nowhere except trade secrets. business, never ever, but nobody to-wear shows. each season, collections, but this one is no such master plan is in the where iI’m’m working,” lLagerfeldagerfeld “We’ve done a couple of things together. One’s been revealed and a interferes in the studio.” legions of chic, non-industry special. it’s only chanel who’s works. “each time we have to said, lest one wonder if he’d take Harley Viera- couple of others have not been yet,” he said. that clear division of women turn out in their newest doing that, with Métiers d’art. find the right reason to [repeat] in a museum exhibit or Broadway Newton, The pair’s short fi lm, for which Williams wrote an original song, responsibility works to apparent chanel purchases and settle it’s something we give the a specific show. We are not into show while in New yYork.ork. ““I’mi’m not Laura Love played around 9 p.m. and the singer took the stage before a rapt crowd perfection. yet if all facets into their cars for the brief ride customers. there’s space for that duplication,” he said, adding a tourist. iItt bores me. aAndnd iI cannot and Alexa that included Beyoncé and Lagerfeld for a fi ve-song set that consisted operate independently, all to the Grand Palais. there, one- today in the fashion world.” that though Seoul is little more walk in the streets. iI don’t want Chung, all in of “Come Get it Bae,” “Get Lucky” and, surprisingly given recent news, revolve intrinsically around third of the typical seating of asked about the cost of staging than a month away it’s too to do selfiesselfi es withwith 300300 unknownunknown Chanel. “Blurred Lines.” So much for that Marvin Gaye lawsuit.

the personality and production 3,000 is reserved for clients. a Métiers’ show versus the early to decide about that one: people, you know?” — ERIK MAZA AND TAYLOR HARRIS STEVE EICHNER PHOTOS BY 6 WWD thursday, april 2, 2015

and The Have Nots” and “If Clinton responded: “It’s less about age Loving You Is Wrong,” and with Oprah and more about the message MeMo pad her film career as a producer she has.” developing at a faster clip. But Back in her green room, Winfrey — OPRAH’S 15 YEARS: A small group of Winfrey emphasized that the who rested her feet on a coffee table es photographers, editors and other G magazine still plays a vital role as she reclined on a black leather a iM creative types huddled around a large in the building of what people at sofa — tackled the question of her

cardboard rectangle propped up on TTY Hearst call her “super brand.” magazine’s reach and relevance to the an easel, waiting for Oprah Winfrey to Still, at a time when print isn’t younger generation. “I think we do emerge from her green room, following exactly the most vibrant element speak to all ages, but the emphasis is, a daylong shoot at Chelsea Piers in of the brand — O’s newsstand unlike everybody else who is chasing Manhattan, during which she posed for sales in 2014 totaled 298,980, the Millennials, we are not chasing the three covers of O, The Oprah Magazine. down 49.8 percent since 2010, Millennials,” she offered. “I think we Adam Glassman, O’s creative director, and its total paid and verified try to speak to the heart of the woman began pouring Champagne and Kevin Mazur/Ge PHOTO BY circulation slid 2.9 percent who we know is interested in growing sparkling rosé into flutes, once a plainly Lucy Kaylin and Oprah Winfrey unveiling the 15th in four years to 2.4 million — into herself. Obviously, I think that, the clothed Winfrey quietly appeared on the anniversary cover of O, The Oprah Magazine. Winfrey is sticking to her guns. idea of reaching young girls that are in scene, wearing a bright orange sweater “We’ve seen the advertising college is something that we are strongly with white piping, dark blue jeans and and explores the career changes of sales landscape, the financial landscape open to because who better wants to off-white sneakers bearing sparkles on successful women. L’Oréal bought the change for everybody actually, in the know how to live a more purposeful life the toe box. double ad flap that opens the cover. The business. But our number-one intention than people who are starting out? But The occasion was the unveiling of issue, which had a 50 percent increase is being connected to the reader, which what we really try to concentrate on is O’s May cover, which marks the Hearst in revenue, also features a 12-page hair is really the force behind the reason why the heart of our reader.” Magazines-owned title’s 15th year. The guide sponsored by the L’Oréal brands I started the magazine,” she said, adding — ALEXANDRA STEIGRAD crew huddled around Winfrey, who gave Carol’s Daughter and Softsheen, as well that Hearst editorial director Ellen Levine a brief thank you toast, and then said: as ads from Dior, J.C. Penney and Dove. was instrumental in getting her on board CONDÉ’S CREATIVE: Condé Nast is bringing “I won’t say 15 more But back to Winfrey, 15 years ago. Raul Martinez on full-time as corporate [years]. Fifteen more who alluded to a topic Levine’s pitch was simple: there’s a creative director to work with Anna of dragging me out, I that is front of mind of pass-along readership for women with Wintour, the company’s artistic director. don’t think so.” any reader who picks magazines that isn’t as common for The appointment is a homecoming She was then up the magazine: What books, which Winfrey loves. of sorts for Martinez, who has been handed a drink and will happen when “With print, you have a keepsake. Vogue’s design director since 2009. He directed to look at the she stops appearing We had to convince her that there was a will report to Wintour and work with shrouded cardboard on the cover and, reason this was important,” said Levine, her on setting the vision for Condé’s depicting the cover. more pointedly, can it who almost evangelized Winfrey for her various titles. Condé did not address “I wonder who’s on survive without her? “inspiring, authentic” manner. “She had how Martinez’s new job would impact it,” Winfrey gasped, “I do not see myself the TV show and 25 million viewers. the reporting structure for creative feigning surprise, as on the cover for the When she went off screen, it felt like you directors at its magazines. A company the sheet was lifted. next 15 years. We lost her.” spokesman did not comment. Glassman revealed a actually seriously That aside, Levine had also keenly Martinez, who cofounded AR New black and white image considered it. We observed that whenever she put York, the branding and advertising of Winfrey, wearing a made the decision not Winfrey on the cover of Hearst’s Good agency, will continue to work as creative black dress adorned to do it now,” Winfrey Housekeeping magazine, it would sell adviser at his firm, but as a consultant of with crystals. The said, referring to her out every time. sorts. The relationship allows AR to find cover’s “O” logo was self-imposed slow-fade Michael Clinton, Hearst Magazines’ new ways to bring value to its portfolio also encrusted with from appearing on the president, marketing and publishing of clients, which include Revlon, crystals. (For those magazine’s monthly director, noticed as well, adding that Balenciaga, Calvin Klein and Land’s End. Close-up of the Swarovski Crystals on sensing a theme, cover. over 15 years, the magazine has pulled AR chief executive officerDianne the limited-edition May issue. crystals mark a 15th Lucy Kaylin, O editor in $1 billion in consumer revenue from Desroches told WWD of Martinez’s wedding anniversary.) in chief, said there’s subscriptions and newsstand sales. role: “It truly was an organic, natural Fifteen premier members of O’s already a cover model succession plan “There’s only one Oprah Winfrey, evolution in that relationship [between Circle of Friends could win a copy of the in the works, but wouldn’t provide a which is by nature a differentiator. Oprah Wintour and Martinez], and for Raul’s magazine, which would both be signed timeline. was always a big presence in culture,” creativity.” She said his job would by Winfrey and adorned with actual “Oprah is all in,” Kaylin said, said Clinton, who acknowledged that also help foster a closer relationship Swarovski crystals — more than 1,500 explaining that Winfrey would still be when the talk show went off the air in between AR and Condé Nast, which an issue to be exact. In order for those in the magazine, just not always on the 2011, the magazine dropped 19.5 percent would likely include leveraging the members, who pay $199 a month to be cover. “She’s in love with this magazine. to 479,763, according to the Alliance for content produced by the publisher’s new part of the premier Circle, to be selected, She’s here for us. It’s only human and Audited Media. The newsstand never native advertising unit, 23 Stories. they must write a short paragraph on appropriate for magazines to change fully rebounded from that, although In Wintour’s memo to Condé Nast “what makes you shine.” O’s editorial it up, so she doesn’t have to be on the circulation did level off. For growth, employees on Wednesday, she offered staff will decide the winners. cover for the end of time.” Clinton and his team at Hearst are hoping that Martinez would work with her to The issue, which hits newsstands At 61, Winfrey is in a different to tap into “all things Oprah,” meaning “guide the company’s artistic direction on April 14, includes 15 chapters or chapter in her media career with her Winfrey’s diverse media portfolio. across all platforms,” and he will “bring mini-sections that play on some of television network, OWN, beginning to But Winfrey’s relevance to a younger his keen eye and strong vision to help Winfrey’s mantras. For instance, one rebound recently with strong ratings generation is also key in determining shape the creative focus of the company chapter is called “It’s Never Too Late,” from Tyler Perry’s shows “The Haves how the magazine will grow, to which as a whole.” — A.S. Lundgren’s Compensation Up 37.1% Fashion scoops on the date they are granted, those amounts may not By ARNOLD J. KARR be realized in full by the named executives because CRUISE CONTROL: Cruise collections are a moving target of stock fluctuation, vesting schedules and other fac- this season. Dior, which had planned to stage its show in TERRY J. LuNDGREN SAW his total compensa- tors. Los Angeles on May 9, has changed gears and decided on a tion as Macy’s Inc.’s chairman and chief executive Much of the increase in Lundgren’s reported new country and date, WWD has learned. The cruise show officer increase 37.1 percent to $16.5 million, and its compensation could be attributed to the essentially is now slated for May 11 on the French Riviera not far cash portion grow by more than 20 percent, in 2014. actuarial measure of “changes in pension value and from Cannes. Dior has yet to reveal the venue, but is said According to the company’s definitive proxy, re- nonqualified deferred compensation earnings,” which to have seized on an opportunity it couldn’t resist. It still leased to the Securities and Exchange Commission last year rose more than sixfold to $3.8 million from puts the French house in close proximity to the global film Wednesday, Lundgren earned nearly $4.5 million more $620,000 in 2013. His other income more than doubled, elite, as the Cannes Film Festival opens May 13. than the $12 million reported in the prior year as his to $233,000 from $98,000, with about half of the 2014 Other key destinations for cruise this season include cash bonus and stock and option awards increased. amount attributable to matching contributions by the Seoul on May 4 for Chanel and Palm Beach, Calif., on May 6 His salary was unchanged at $1.6 million, but his company under its deferred compensation plan. for Louis Vuitton. — MILES SOCHA cash bonus, or non-equity incentive plan compen- Lundgren is the only Macy’s executive permitted sation, rose 38.2 percent, to $2.6 million from $1.9 to make personal use of the company aircraft, and his KANYE AND DAMON, GET IN LINE: Kanye West and Damon Dash million, 59.8 percent above his base salary. Both the other income includes $75,000 allotted for that purpose. are going to have to follow procedure if they want to buy company’s 2014 adjusted earnings before interest Jeff Gennette, named president of Macy’s last bankrupt e-tailer Karmaloop, as they say they do. Senior and tax of $2.89 billion and sales of $28.55 billion year, had total compensation of $4.3 million, 41.9 lender Comvest Capital in the site’s bankruptcy has been landed between the threshold and target amounts percent above the $3.1 million he earned in 2013. selected as the stalking horse to spur a bidding process set by the compensation and management devel- The cash component of his pay was up 38.9 percent for the company, which filed for Chapter 11 in Delaware opment committee of the board, while cash flow of to $1.8 million from $1.3 million. last month. $1.93 billion qualified as outstanding. In its filing, Macy’s noted that its comparable sales In lieu of cash, Comvest has agreed to a $13 million credit Lundgren’s stock and option awards totaled $8.3 mil- rose 0.7 percent, its fifth consecutive year of comp bid. The credit bid will be used to forgive $13 million in debt lion, up 5.5 percent from the $7.9 million granted in 2013. increases but the lowest increase in that time span. owed to the lender, the filing in bankruptcy court said. The These awards reflect the company’s performance Including sales from licensed departments, comps court document also said that Karmaloop’s financial adviser over three years in adjusted earnings before inter- were up 1.4 percent. Other metrics showed consistent Consensus reached out to 150 parties regarding a sale of the est, taxes, depreciation and amortization; adjusted improvement over the five years, including net sales streetwear e-tailer, but couldn’t find a buyer. EBITDA margin; average return on invested capital, and adjusted EBIT as well as adjusted earnings before While West and Dash have said they are interested and total shareholder return when measured against interest, taxes, depreciation and amortization margin in buying the bankrupt firm, there was no indication Macy’s peer group. Although the SEC requires that of 14 percent last year; return on invested capital of in court documents that they had made any overtures these awards be reported at the fair market value 22.4 percent, and adjusted earnings per share of $4.40. to Karmaloop. — VICKI M. YOUNG WWD Thursday, april 2, 2015 7 WWD.COM What’s Next for Simon and Macerich? American Apparel to {Continued from page one} outlets, primarily in Europe, where there

But what’s next for Simon? chairman and es are opportunities for expansions of existing G ceo david Simon and his team could make assets and potential new development. Lay Off 180 a hostile run at Macerich down the road, Macerich, the nation’s third-largest mall particularly if Macerich’s stock continues to developer and operator, reported $587 in slide. the share price is still above the seven- sales per square foot in 2014 versus $562 By kari HaManaka

year high of $77.08 reached last november offman/Getty Ima the year before. the occupancy rate was when Simon disclosed a 3.6 percent stake, h 94.4 percent last year, compared to 94.6 per- aMErican apparEL chief causing Macerich’s shares to jump 10 percent cent in 2013. among Macerich’s best malls executive officer paula rendan

from trading in the mid $60 range. b are Queens center, tysons corner center, Schneider will eliminate “Simon sits back and waits for Macerich Biltmore Fashion park and Santa Monica about 180 jobs in her bid to stock to go down,” said another senior-level place. Macerich, based in Santa Monica, turn around the struggling real estate executive, discussing Simon’s photo by calif., has $600 million in development proj- Los angeles-based firm. potential next move. “a future deal could Inside the Tysons Corner Center. ects in the works. the majority of those get done.” “Both companies are making big in- jobs are manufacturing po- “is Simon going away? probably not,” Simon, a former banker who took over the vestments in their centers, involving new sitions located in Southern said one retail expert who knows Simon. reins of the family business in 1995, has ag- technologies for omnichannel initiatives, california. “But they have to look at different ways gressively put his real estate company on the restaurants, evolving common areas, rotat- “we are disappointed how to grow their business — outlets, on- acquisition trail. in 1996, the company merged ing kiosks, and creating new kinds of expe- that we had to make this line, moving up their rents. no one is re- with former rival deBartolo realty corp., and riences and events,” said one consultant to very difficult decision, ally building malls anymore. and rEits are has since purchased premium outlets, the major real estate firms. “Both companies however, this is a turn- complicated to take over,” due to whatever Mills and a 28.9 percent ownership interest are doing all the right things to make things around,” Schneider said. poison pills and staggered boards they could in klépierre, which has shopping centers in productive, in some cases even investing in “this change is meant to have in place, and government antitrust 13 European countries. Last January, Simon mixed use and lifestyle projects. they are restore the financial health concerns. there’s extensive due diligence completed the acquisition of Jersey gardens both very much focused on creating a better of american apparel, which required before launching a bid, on anti- in Elizabeth, n.J., which was renamed the experience for the shopper and making the under previous manage- Mills at Jersey gardens, and university park mall more than just a place to shop a couple ment, saw losses of more Village in Fort worth, tex. two months ago, of times a month. there’s also always oppor- than $300 million over the Simon formed a joint venture with Hudson’s tunity for pruning and they can grow their David Simon past five years. this is a Bay co. for property acquisitions and to outlets businesses.” very sad day. it is very chal- strengthen owned properties. Late tuesday, Macerich said its board lenging to go down this Still, Simon’s overtures haven’t always unanimously rejected Simon’s revised, route, but we have to con- been met with open arms. a yearlong, hos- unsolicited proposal to acquire the com- duct business differently in tile $1.68 billion bid for taubman centers pany for $95.50 a share in cash and stock, order to thrive.” was thwarted in 2003 after the governor of after reviewing it with the assistance of its a spokeswoman for the Michigan, where taubman is based, signed financial, real estate and legal advisers. company declined to say a law to protect rEits from unwelcome of- Macerich said the proposal “substantially whether additional cuts are fers. Starting in 2009, Simon made several undervalued” the firm. expected, saying it was an bids for the-then bankrupt ggp, but threw in “our board carefully reviewed Simon “ongoing process assessing the towel when an investor came in with a property group’s revised proposal and con- what the business needs are, recapitalization plan. cluded that it does not reflect the full value depending on inventory.” homas Iannaccone t “their eyes are always open for expansion of our company,” coppola said. the 180 positions are less through acquisition,” said arnold aronson, “Simon’s proposal has shined a bright than 2 percent of the compa-

hoto by hoto by managing director of retail strategies at kurt light on the value of Macerich,” coppola ny’s overall workforce. p Salmon. “Simon is looking for higher profit- added, despite the stock price drop on it’s yet another hiccup for ability, more efficiencies and economies of wednesday. Schneider, who was tapped to trust, geographic fits and future opportuni- scale. the fastest, most profitable growth Fred Hubbell, lead independent director right the business in January. ties for a combined company. in addition, path is through the acquisition of healthy of Macerich, added, “our board — includ- the company re- the retail source noted, “Most managers competitors. there is not much room left for ing in separate sessions of the independent cently disclosed that the don’t want to give up all their perks. they’ve new shopping center construction.” directors — spent extensive time carefully Securities and Exchange got their own planes.” at the indianapolis-based Simon, the evaluating the revised proposal and our commission launched Beyond a straight acquisition, “Simon largest shopping center developer and op- stand-alone plan with management, Eastdil an investigation into the looks at different permutations, other forms erator in the country, sales per square foot Secured and our financial and legal advis- events surrounding the fir- of growing the business — more strategic rose to $619 last year, versus $582 in 2013. ers. the board, which includes real estate ing of founder and former partnerships rather than always compet- the occupancy rate rose to 97.1 percent experts and a representative of one of our ceo dov charney. charney, ing, more international projects, and urban from 96.1 percent. among its biggest and largest stockholders, concluded that now is who was fired from the com- settings that have generally not been facili- most famous malls are roosevelt Field, not the right time to sell the company. we pany last year, has filed a tated by traditional developers,” said one the Forum Shops at caesars, aventura remain committed to continuing to grow lawsuit in which he is seek- retail ceo. Mall, Sawgrass Mills, woodbury common stockholder value. we recognize it is in- ing $40 million in damages at this stage, Simon wouldn’t want to ap- premium outlets, king of prussia and cumbent upon us to have the public market from american apparel. pear overly eager to acquire something and town center at Boca raton. Simon has $1.8 understand the value of our business and the company’s shares pursuing a rEit, such as general growth billion in redevelopment and expansion properly reflect it in our share price. i in- were down about 3 percent in properties, the nation’s second-largest de- projects currently underway at 27 prop- tend, together with management and other afternoon trading wednesday, veloper, would create problems for the gov- erties. there is also a joint venture with directors, to engage directly with stockhold- giving the firm a market value ernment to resolve. Mcarthurglen to own and develop designer ers over the coming weeks and months.” of $118.9 million. Sears Forges Ahead on REIT Plans, Enters Separate JV with GGP on a pro rata basis to Sears shareholders. unlock a portion of its real estate portfo- Scott tuhy at Moody’s investor By Vicki M. Young in a separate move, Sears and general lio, and that the JV and its structure are Service was more critical of the prog- growth properties inc. entered into a consistent with the company’s move from nosis for Sears’ future, noting that the Edward LaMpErt is raising another joint venture for 12 Sears properties lo- a store based business to an asset-light, transactions do not “address Sears’ con- $2.5 billion in his big bet on reinvent- cated at general growth’s malls. as part of member-focused model. tinuing operating challenges.” ing retailing and his struggling Sears the JV’s structure, a subsidiary of general in a letter to company employees He said that the total base rent paid by Holdings corp. growth has made a cash contribution of about the real estate maneuvers, he said: Sears for the rEit and JV is $189 million Sears on wednesday filed plans for $165 million in exchange for a 50 percent “importantly, we expect little, if any, dis- at current market rates. with cash burn at its real estate investment trust with the interest in the JV. the properties Sears ruption from these transactions to our $1.2 billion, adding in the rental obliga- Securities and Exchange commission. is contributing have been valued at $330 day-to-day operations and the overall tion increases the amount to $1.38 billion. the rEit will be called Seritage growth million. the $165 million will go to Sears, shopping experience for our members. while the transactions provide “meaning- properties, a Maryland trust company. which in turn will own a 50 percent stake in essence, it’s business as usual and ful liquidity, it is sufficient only to cover the filing includes a rights offering by in the JV upon closing of the transaction. that’s what you should reiterate to our approximately 24 months of cash burn at Seritage to partially finance the purchase once the rights offering is completed members. we have said numerous times fiscal 2014 levels.” Further, tuhy noted that of 254 properties operated as Sears and for the Seritage rEit, Sears plans to sell that Sears Holdings has a vast and valu- Sears still needs to repay the $200 million kmart nameplates. Sears said proceeds its 50 percent interest in the JV to Seritage able real estate portfolio and these trans- balance of its short-term real estate loan to from the sale, which will go to Sears, are for the same amount — $165 million — that actions represent a way of monetizing a ESL, as well as $565 million required pen- expected to be over $2.5 billion, which general growth paid for its 50 percent small portion of that portfolio to support sion contributions in 2015 and 2016. one will be used to increase the retailer’s stake. Separately, general growth has also our continued transformation.” concern of tuhy’s is whether Sears can liquidity — although credit analysts say committed to investing $33 million to ac- credit analysts from ratings agency “meaningfully reduce its cash burn.” other the funds will cover just two years of quire Seritage common shares in a private S&p said, “while the transaction will considerations are the april 2016 maturity cash burn based on last year’s levels. placement at a purchase price equal to the enhance liquidity in the near to inter- of its asset-based revolver and other debt as part of the structure, Sears will subscription price for the rights offering. mediate term, it’s still uncertain if Sears maturities in 2018 and 2019. enter into a master agreement to lease Lampert, chairman and chief execu- can return to profitability given the head- while Sears still has 381 stores that it back the properties from Seritage. the tive officer of Sears, said the transactions winds in the business and some addition- owns and can leverage for additional flex- subscription rights would be distributed are examples of the company’s ability to al rent expense.” ibility, its options are slowly dwindling. MW8 WWD Thursday, april 2, 2015 Men’s Week Subhead The New Dimension in Men’s From design inspiration and social media strategies to innovation at retail, speakers at the annual Men’s Wear Summit took on a variety of topics.

For more images, see Stuart Vevers Todd SNyder Todd Snyder Todd Snyder was unabashed about how WWD.com/ abandoning his collegiate plan to become an menswear-news. architect allowed him to build a house of a different kind. Having worked in the industry for 20-plus years at companies such as Ralph Lauren and J. Crew, the designer, a three-time CFDA award nominee, ventured out on his own four years ago to launch his signature brand. “My dad always told me, ‘If you want to be the best, work for the best,’” he said. “For me, there was nothing better than Ralph Lauren. And when I met Mickey Drexler, there was nothing better than his vision and what he’s done. I started my own brand because I saw a real void in the marketplace. Throughout my career, I was able to shop the industry to see what was missing.” Snyder said he aimed to build a brand around updated American classics such as a sweatshirt, chinos, “a great jean” and a suit — essentially the go-to items in his own closet. “But I wanted to reinvent that and update that. I felt that the American designer especially is always getting eclipsed by the Europeans,” he said. “J. Crew really showed me there’s a cus- All Photos by tomer out there who wants great quality and PAtrick MAcleod something a little nicer, but that is still luxury.” After interning at Ralph Lauren in 1992, a year later he joined J. Crew, where he taught STuarT VeVerS, CoaCh INC. “I’ve always had a great passion for incorporating iconic brand signatures Millennials have brands,” declared Coach’s Stuart Vevers in unexpected ways — the turn lock clo- to begin his presentation. A mere glance sure used to embellish a pair of sneak- really changed how at the designer’s résumé would confirm ers, whip-stitch leather detailing, and so that statement; over the past 19 years, forth. “We deliberately didn’t limit our- “they look. they want Vevers has designed for the likes of selves to the past, but we explored and Bottega Veneta, Givenchy, Mulberry, listened to our instincts based on what to know, ‘who Makes Louis Vuitton, Loewe and, now, Coach, categories made sense,” he said. “The where Vevers has served as executive heritage inspired our point of view.” it? why is it designed creative director since June 2013. Of course, at the center of the Coach “The soul and uniqueness in great brand heritage is leather goods, and in that way? where do fashion houses is what really excites me, keeping with the ready-to-wear, Vevers has and it’s what drew me to Coach,” Vevers kept them casual. “I have actively avoided the vegetables coMe said. “I think Coach is truly special as the formal briefcase because I don’t see the American leather goods house, and many younger guys carrying them,” he froM? what was the interestingly, Coach actually began as said. “Our bags are focused on construc- a men’s brand, with a workshop of six tion and details. Is a guy more comfort- naMe of the cow that craftspeople here in New York City in able carrying a bag today? I do think so. was killed?’” 1941. Almost 75 years later, my focus is Something about a modern lifestyle im- to establish a fresh, new vision that ex- plies some necessity — a vessel for his plores what it is about the brand that is himself how to sew, thanks in part to help- with Nordstrom and is now being added at unique and has drawn customers around ing the company’s tailors during his off-hours. Bloomingdale’s and Saks Fifth Avenue. the world to Coach.” the reason we are Unable to afford designer labels, he went to “In the last 10 years, men have become in- Vevers described his vision for men’s Manhattan’s “amazing fabric stores” and start- credible connoisseurs of whiskey, food, cloth- wear as “easy, inherently cool, youthful focusing on casual ed making his own shirts at home on the week- ing and art. Millennials have really changed and uncontrived.” Among his inspira- ends. “That’s actually how I got known. I was in how they look,” Snyder said. “They want to tions: the Beastie Boys, the Kennedy “pieces is because it a meeting with the head merchant, who said, know, ‘Who makes it? Why is it designed that boys, Steve McQueen and the imagery of ‘That’s a cool shirt. Where did you get it?’ I told way? Where do the vegetables come from? Gus Van Sant. “I think of the Coach guy is where the world him that I made it and he said, ‘What?’ What was the name of the cow that was killed?’ as solid; he’s not fragile,” said Vevers. “It seems like a crazy idea, but…that got me The same thing has happened with men’s wear. “He wants to get dressed fast. He’s is Moving.” noticed. And lo and behold, I started getting in- They don’t just want to go to a department straightforward, but he wants to cele- vited to more meetings and getting my opinion store. They want to know everything.” brate his character and individuality….It gym gear and technology…. American style asked more. I was able to use that experience With a three-story multibrand store called was important that [the collection] wasn’t is about relaxed, and it’s about ease, func- to build my career and work with some great The Townhouse up-and-running in Tokyo, a re-creation of the past or tied to tradi- tion, utility — and that in itself can bring a people,” Snyder said. Snyder plans to open three more stores tional assumptions of what luxury men’s new perspective on luxury.” After leaving J. Crew in 2005, Snyder played in Japan through a partner there. Having means, such as formality, somber color Interestingly enough, as one audi- a pivotal role in opening The Liquor Store in seen how a three-month pop-up store with and the idea that an investment piece ence member pointed out, Vevers chose TriBeCa in 2008 with Andy Spade. “That curat- Champion in New York wound up being ex- has to be classical. When we decided to debut his admittedly American- ed men’s shop with multibrand collaborations tended to 18 months, Snyder said he would what was right, we went for it boldly.” influenced men’s collection during located in what used to be a neighborhood like to eventually open a permanent New York For Vevers, what was right was a London’s men’s fashion week last bar and liquor store really changed the way J. store. But the city’s requisite 10-year lease, focus on casual items — including over- January. “People thought it was just Crew was perceived in the industry,” Snyder and six months’ rent in advance policy is too size outerwear, suede jackets, T-shirts because of my nationality and because said. But teaming with Alden and Shinola did much of a financial burden for him to carry and denim — that can be either worn I just wanted to go home, but up until not come easy, as Snyder said he sometimes on his own. “We’re trying to find a partner or together as a full look or individually as recently New York hasn’t had a spe- had to ask potential partners more than 10 a pop-up opportunity or something,” he said. a stand-alone piece. “The reason we are cific, men’s focused fashion week mo- times to work with him. Such tenaciousness Snyder, who is also working on a gray flan- focusing on casual pieces is because it ment — obviously that is changing,” he paid off, considering that J. Crew sold more nel version of Eames’ management chair, said is where the world is moving,” he said. explained. “I felt we had to take our- than one million units of Timex watches, for the dominance of European designers re- “There has been a cultural shift in men’s selves out of context, to show something example, according to Snyder. mains a struggle for American designers both — I get the sense there are fewer jobs in a new environment. Sometimes when Motivated by the successful collabora- here and abroad. “I will say this to the retail- each year that require a working guy to you go somewhere different, people are tions he helped to put in place at J. Crew, ers here: Everyone wants European brands adopt tailoring and formality. The ward- more curious, and I think that helped.” Snyder lined up ones with Champion, PF right now [in the U.S.] and it’s the same thing robe of the workplace space has and con- So would he be showing in July dur- Flyers and Cole Haan once out on his own. in Europe. It’s really hard to open accounts tinues to change.” ing New York Fashion Week: Men’s? “To He also cited the successful launch of his there. The only exception is Japan. They love While moving toward the future, be confirmed.” soft-shoulder, American-made $795 suit under American fashion and they really embrace it.” Vevers also looked to Coach’s heritage, — LAUREN MCCARTHY the Todd Snyder White Label that launched — ROSEMARY FEITELBERG Men’s Week WWD Thursday, april 2, 2015 MW9

of his own last year, using a naked Italo Zucchelli and greased up black model, Adonis Italo ZucchellI, Bosso, photographed by Steven calvIn KleIn Inc. Klein, who had worked with Calvin Klein himself in the late Nineties. The New Dimension in Men’s There was never a doubt in Italo traveling to cities such as Tokyo, Los “It was a celebration of black skin Zucchelli’s mind that he would Angeles, Berlin or London. “I go to and beauty,” he said, “but this was in become a designer. And over the past exhibitions, buy books, vintage, and a big way since he was naked.” 13 years at Calvin Klein, the men’s I come back to my office and look at Moments such as this allow creative director of Calvin Klein what we collected. We start to put Zucchelli to make a statement Collection has taken the lessons he together a concept of colors, theme, of his own, something he’s also learned from the “god and goddess of fabric inspiration.” managed to do on the runway. In minimalism” to make his own mark The use of innovative fabrics such 2007, he dressed models in tight- on the fashion industry. as Neoprene or PVC in his designs fitting, brightly colored leggings Although Zucchelli dabbled has become one of his hallmarks. that were inspired by Australian with the idea of becoming an ar- “I think fashion is supposed to surfers. “I didn’t have any agenda. chitect as a young man, “I knew move forward so the fascination But it was sort of a perfect fashion was my passion,” he said. I’ve always had with fabrics and Calvin Klein moment, something In the early Eighties in Italy, materials can help push a new mes- controversial and provoking. It the fashion business was booming sage,” he said. “Fabrics represent happened again several years and he became “obsessed” with the soul of the clothes. I like to push after with another show when I the proliferation of magazines in with innovation and that’s what the used really fluorescent colors. By the market. He traveled to London materials have always been for me. the third [outfit] they clapped and and absorbed everything that was I like to put together something fa- screamed and everybody backstage happening with street style and miliar with something slightly un- started crying. That was a great music, and there was no turning familiar.” For example, offering a moment. People don’t clap at back. “There was a new energy and tuxedo jacket in Neoprene makes fashion shows.” I knew I wanted to do something the piece “new and exciting but fa- Zucchelli also made a mark with creative.” He cut his teeth at miliar at the same time.” his use of the words Obsession and Romeo Gigli and then moved on That familiarity is also evident Escape — the names of the brand’s to Jil Sander, where he got a call in Zucchelli’s choice of faces for fragrances — on sweatshirts that from Calvin Klein telling him that the brand — both on the runway have become collectors’ items. “The he wanted Zucchelli to work on his and in its advertising. words are iconic when it comes women’s collection design team. “Calvin is legendary for casting,” to Calvin Klein and they’re very “He’s a living legend and in my he said. “So I do a lot of pre-casting relevant today,” he said. “We’re all opinion, a genius,” Zucchelli said. before shows. Usually they’re not obsessed today. We’re obsessed with “I worked with him for three years even models, they’re guys.” Often, social media, with selfies and we and learned a lot from him. He’s these “guys” are almost “clones,” need to escape.” my mentor. He changed my life.” he said. “The Calvin Klein guy is It comes natural to me. It’s an Looking to the future, Zucchelli Being able to work with Klein strong, masculine, very American, said he has no desire to start a and Sander, both of whom were and in my mind, Americans have effortless process. But I want to brand under his own name, opting famous for their minimalist de- always looked healthy, built, good- instead to push the Calvin Klein signs, opened Zucchelli’s eyes. “It looking — and that’s what I look for “push fashIon forward. I want to brand ahead. was interesting for me to see how when I cast my models.” “I’ve worked for so long in the same aesthetic could be trans- That strategy also holds true strIke a Balance Between IconIc this minimalism aesthetic that lated in a very European, concep- with celebrities, he said. “I like it’s kind of my second home,” he tual, arty way from her and a very handsome guys like Bradley and InnovatIo n .” said. “It comes natural to me. It’s American, immediate, to-the-point [Cooper] and Alex [Skarsgard], an effortless process. But I want way from him. There are a lot of people who can really represent enhance what you do, music is the faces of the Calvin Klein brand: to push fashion forward. I want to similarities, but the way it’s ex- what I do in the best way — the most powerful way to do it,” he said. one dressy and the other rooted in strike a balance between iconic and pressed is different, and what I do athleticism, the Americanism. Recently, he designed the American sportswear. innovation. Fashion and men’s wear is a mixture of both.” But at the same time, I also like wardrobe for Drake’s tour and Zucchelli has inherited the are changing so fast, and this is one With his own aesthetic characters like Jared Leto.” he’s also worked with Sam Smith mantle of retaining Calvin’s of the leading brands in the world, established, Zucchelli said he starts He also likes musicians. “Music — two divergently different artists groundbreaking advertising. He so there’s a lot to do.” the design process each season by has a cool factor, and if you want to who allow him to express different created an eye-opening campaign — JEAN E. PALMIERI

Glenn SIlbert, under arMour Glenn Silbert The foundation of Under Calling it the “new normal in was manufactured in a bra factory Armour’s business is innovation, athleticwear,” Silbert said athletes instead of a footwear facility. “Why?” and developing new products and today “think very differently about he asked, “Because people who embracing new platforms contin- what they put on their bodies.” make bras know how to focus on fit.” ue to drive the company’s growth And so while Under Armour But perhaps the most promis- nearly 20 years later. never loses sight of where it start- ing category is connected fitness, “We’re just getting started,” said ed, “we lead the brand with the Silbert said. Glenn Silbert, senior vice presi- idea that what got us here is not “Five years ago, if I would have dent of men’s and youth apparel even close to where we need to told you we’re going to make a and accessories. “This is chapter go. Kevin [Plank] says we’re a new T-shirt that regulates your core one of a very compelling story and brand every six months. We’re still body temperature, measures your the opportunities are endless.” grounded in who we are, but we’re heart rate and tracks your work- Since Under Armour founder constantly changing. outs all at the same time, you prob- Kevin Plank invented a compres- sion-fitting, wicking alternative to the cotton T-shirt for male athletes desIgnIng cool-lookIng stuff in 1996, the company has grown into a more than $3 billion brand Isn’t hard, It’s much harder to that has expanded into a range of categories, including footwear, “desIgn product that truly makes women’s wear, children’s wear and even men’s sportswear. It has you Better.” also branched out internationally and, more recently, has embraced the whole concept of “connected “Trends and movements will ably would have called me crazy,” bodies. That’s not acceptable.” But in the market today that can boast fitness,” with acquisitions such as come and go,” Silbert added, “but Silbert said. “We don’t think so.” connected fitness can change that. more than 500 million users, he said, MyFitnessPal and MapMyRun. because of the filter of performance Although Under Armour contin- “There’s life before and after compe- and “they’re all in the social space — Silbert said Under Armour’s and innovation, we will continue to ues to be focused on giving athletes tition,” he said. “I don’t want to call nobody is doing it in fitness space.” focus on the athlete continues and lead this conversation. For us it’s the tools to improve their perfor- this lifestyle, I want to call this life But providing users with a combina- drives the company to new heights all about the athlete and the athlete mance during competition, “what and our athletes are inviting us into tion of content, product and informa- to meet constantly changing needs. demands more and more every day. about after the game?” Silbert the space.” From its performance tion “is going to unlock a whole new “We live and breathe competition It’s about this authentic relationship asked. Introducing products and chinos to its new mobile apps, Under world for this space. and that’s what makes us better,” that allows us to anticipate their tools that shorten the recovery Armour looks to these “game chang- “While we’re in the business he said, calling the brand “loud, ever-evolving needs. We like to say, time “will unlock an athlete’s true ers” to continue to move forward. of making shirts and shoes — and bold and fearless. It’s our culture beware of imposters. Designing cool- potential,” he said. Silbert said over the past 1.5 that will continue to be our core — and it’s what defines us.” looking stuff isn’t hard, it’s much Silbert likened it to a car, saying years, the company has focused on it’s this relentless focus on innova- He said that first white T-shirt harder to design product that truly immediately upon turning on the “informational armour.” The compa- tion and pushing the boundaries of “created a movement — the idea that makes you better.” engine, the driver knows everything ny now has more than 400 employees what is possible that will drive us apparel could really improve your Among the company’s most re- about the vehicle: whether it needs dedicated to this area and has “built and allow us to define what the fu- performance. Others have followed, cent offerings that fit that bill are the gas, service, the tire pressure, etc. a community of over 137 million ac- ture looks like,” he concluded. and today, an entire category exists.” SpeedForm running shoe, which “But we know nothing about our tive users.” There are only five apps — J.E.P. 2.5x7 (left) 2.5x7 (right)

MW10 WWD Thursday, april 2, 2015 Men’s Week

Subhead to Santi-Weil, 80 percent of the brand’s busi- alexandre Mattiussi, niColas santi-Weil, ness comes from outside of France. While at The Kooples, Santi-Weil over- aMi alexandre Mattiussi saw the opening of 350 stores, 100 of which Friendship might not be a typical reference point were outside of France. Although Santi- for a fashion brand, but it’s a theme that perme- Nicolas Santi-Weil and Weil is taking Ami’s expansion slow, he said ates Ami, an advanced contemporary men’s wear Alexandre Mattiussi it’s important to open more stores. label founded by Alexandre Mattiussi. “Even if most of our business is abroad, After spending his 20s hopping around the to be able to open our own stores is to be halls of LVMH Moët Hennessy Louis Vuitton in direct contact with our clientele,” said — he started at Dior, moved to Givenchy and Santi-Weil. “[We can] tell our own story and ended his stint at Marc Jacobs — Mattiussi have the feedback as well.” was ready to create clothes for his friends that Another way to connect with this cus- For more images, see filled the gap between fast fashion and luxury. tomer is through Instagram, a platform that “I couldn’t afford the things I was design- Mattiussi frequently uses. Aside from telling WWD.com/ ing,” Mattiussi said. “I wanted to bring this lux- his brand’s story and showcasing his friends menswear-news. urious feeling into something more accessible.” wearing a red beanie — Mattiussi’s signature So in 2011, he launched Ami, which are hat — on the app, it allows the designer to see his initials and also means friend in French. how his customers interpret Ami product. Nicolas Santi-Weil, Ami’s chief executive offi- “This is the best window on what’s hap- cer who had cofounded French contemporary pening. Every day I have the chance to see brand The Kooples, joined the business in someone wearing Ami. I feel like the suc- 2013. The two met through friends and Santi- I don’t say I’m the best desIgner In the cess of the brand comes from the people Weil said he was drawn to the 34-year-old de- who are wearing your clothes.” signer because he had a knack for business world. I don’t say I’m goIng to revolutIonIze Customers also communicate with and a clear vision for the brand. Mattiussi on Instagram and send direct According to Mattiussi, that vision isn’t “fas h Ion. I just say I have Ideas and I want to messages with design suggestions, which anything deep. sometimes include altering silhouettes “I try not to intellectualize it too much,” share them wIth as many people as I can.” or producing pieces in additional colors. Mattiussi said. “When I think about my ex- Mattiussi takes these comments seriously. perience before, the way we were designing — AlexAndre MAttiussi “I have ideas, but I don’t say I’m the was sometimes not so right. It feels like the best designer in the world. I don’t say I’m only thing that interests me is the way a guy is He also doesn’t play the celebrity game, feels like this is a reality, and I wanted to tell going to revolutionize fashion. I just say I going to wear my clothes.” although he was pleased when David Bowie the story of a street in Paris during winter have ideas and I want to share them with Instead of approaching each season with a wore an Ami trenchcoat in his 2013 music with the snow falling at the end.” as many people as I can,” he said. theme, Mattiussi asks friends what they want to video “The Stars (Are Out Tonight).” Although his fall show featured five When Mattiussi and Santi-Weil were wear and then creates their ideal wardrobe. He “He’s still wearing it,” Mattiussi laughed. women wearing Ami looks, Mattiussi said asked how big they wanted Ami to be, they plays with proportions and fabrics to produce That same year, Mattiussi won the ANDAM he has no plans to work on a women’s col- were reticent to give projections but posi- modern men’s wear staples, which are made Fashion Award. He was the first men’s wear lection. Instead, he’s homing in on his tive about the future. in Europe. Unlike the women’s market, which designer in 25 years to receive the honor and men’s collection, opening two more stores “It’s like a friendship; we want to devel- churns out fashion pieces each season, Mattiussi he used the prize money, about $268,500, to this year, one in London and another in op it first. It’s just the beginning of the story, doesn’t feel the need to play that game. stage his first runway show last February. Paris, and maintaining his 300 points of so I cannot give you a precise figure,” Santi- “I have the temptation [to design more The show, which replicated a snowy street in sale worldwide. Ami operates two stores in Weil said.“We do believe, like our friends fashion pieces], but I feel like it’s not the right Paris, was a turning point for the brand. Paris and is sold globally at retailers includ- have said, that men are the new women. We time to do it. The guy who is wearing Ami is “I wanted to put the story of my guys and my ing Barneys New York, Harrods, Galeries do believe that there is a huge potential in not about being fashionable,” Mattiussi said. collection into something that’s very realistic. It Lafayette and Saks Fifth Avenue. According this segment.” — ARIA HUGHES

MassiMo Caronna, Brunello CuCinelli WWD PRINT SUBSCRIBERS: The heart and soul of its founder is woven To accomplish this, Caronna said there through the fabric of every design offered are three key components: quality, creativ- by Brunello Cucinelli, and it’s his passion ity and visual merchandising. PLEASE GIVE US YOUR for quality and creativity that has created a Materials are purchased from the best successful luxury lifestyle brand. mills in Biella, Italy, or, in the case of cash- EMAIL ADDRESS “At the core, our brand is the vision mere, Mongolia, and created by the com- of a very special individual — Brunello pany’s artisans in its hometown of Solomeo, Cucinelli,” said Massimo Caronna, president Italy. In fact, Caronna said, 25 percent of the “ DON’T MISS OUT ON THE of the company’s U.S. business. Caronna met company is dedicated to quality control, en- the designer two decades ago when Cucinelli suring that every product “adheres to the was just creating women’s cashmere sweat- standards of the quality the brand stands for.” NEW DAILY DIGITAL EDITION! ers, but quickly saw the “vision of what the To be certain this continues, Cucinelli brand could eventually become one day.” has created a “school of craft” in Solomeo When attempting to build any brand, the where young people are trained in the art On April 29th, the print edition of WWD will re-launch in a most essential ingredient is product, he said. of tailoring. “The average age of our tai- Starting with those sweaters in 30 colors in lors is 60 or 65,” he said. “We had to make weekly glossy format. The final edition of the daily newspaper 1978, Cucinelli branched out into men’s wear a clear decision what to do for the future.” in 1994, starting with sweaters and expand- The school has turned into a rousing success, in its current format will be on April 24, 2015. ing into other categories, including sports- with 1,300 students applying for 75 slots. wear, clothing, outerwear and accessories. Turning to creativity, he said this “plays Today, men’s wear represents 40 percent of a major role” in men’s wear, and is defined overall sales, which last year were 355.8 mil- by the details, whether that be the fit, the Beginning with the April 27th issue, we’ll produce a curated lion euros, or $420 million, with 85 percent of color or the styling. the men’s business coming from ready-to-wear Also important is visual merchandising, and 15 percent from accessories, he said. and Cucinelli employs 30 people in Italy and a Daily Digital edition of WWD that will reflect the top stories While the offering has evolved, one dozen in the U.S. whose job is to visit the mono- thing has remained the same: offering brand and multibrand stores that carry the col- of the day. It will be emailed to you before you wake up each product with a “casual, chic” taste level lection to ensure consistency in the displays. that is ageless and sophisticated. Today, distribution is split evenly be- business day! tween monobrand and multibrand stores, Massimo he said. Among the retailers that carry Caronna the line in the U.S. are Saks Fifth Avenue, Neiman Marcus, Mario’s and Andrisen In order to ensure that you receive the Daily Digital, Morton, and over the years, these retailers have proven to be important “guardians of please go to wwd-email.com or call 1-866-401-7801 the brand,” Caronna said. “North America has been a key market for us,” he said, not- to provide or update your email address. ing the U.S. represents 34 percent of sales and is the brand’s largest market. Europe is 33 percent of sales and Italy is 18.7 percent. The Far East is also important, he said. At the same time Cucinelli has been careful not to sell its brand in too many places around the world. “A high-quality product cannot be overdistributed,” he said. By staying small, it allows the brand to maintain its culture and its close relation- ship with its founder. — JEAN E. PALMIERI

WWD_QuarterPgAd3.indd 1 3/27/15 5:02 PM 2.5x7 (left) 2.5x7 (right)

Men’s Week WWD Thursday, april 2, 2015 MW11 to Santi-Weil, 80 percent of the brand’s busi- ness comes from outside of France. Thomas Ott riChard Cohen, While at The Kooples, Santi-Weil over- saw the opening of 350 stores, 100 of which TriniTy lTd. were outside of France. Although Santi- China’s economy might be slowing — its Weil is taking Ami’s expansion slow, he said growth rate for 2015 is expected to be 7 it’s important to open more stores. percent, which is the lowest it’s been in 11 “Even if most of our business is abroad, years — but men’s wear continues to boom to be able to open our own stores is to be in the region, according to Richard Cohen, in direct contact with our clientele,” said chief executive officer of Trinity Ltd., which Santi-Weil. “[We can] tell our own story and owns men’s wear brands Gieves & Hawkes, have the feedback as well.” Kent & Curwen and Cerruti 1881. Another way to connect with this cus- “China is the most exciting opportunity tomer is through Instagram, a platform that right now,” said Cohen, who joined Trinity Mattiussi frequently uses. Aside from telling in 2014 after serving as the senior vice his brand’s story and showcasing his friends president of business development at wearing a red beanie — Mattiussi’s signature Saks Fifth Avenue. hat — on the app, it allows the designer to see According to MarketLine, men’s how his customers interpret Ami product. wear represents the largest cat- “This is the best window on what’s hap- egory in China’s apparel sector, pening. Every day I have the chance to see accounting for 43 percent of the someone wearing Ami. I feel like the suc- business, or $73.3 billion. Women’s cess of the brand comes from the people trails behind at 34 percent, followed who are wearing your clothes.” by children’s, which makes up 23 per- Richard Customers also communicate with cent of the apparel category. Cohen Mattiussi on Instagram and send direct Despite the robust men’s wear num- messages with design suggestions, which bers, the area faces challenges. Cohen sometimes include altering silhouettes said over the years the Chinese customer million people, which is more than double the or producing pieces in additional colors. U.S. e-commerce consumer base of 200 million, Mattiussi takes these comments seriously. ThoMas oTT, saks FiFTh avenue according to iResearch. “I have ideas, but I don’t say I’m the onlIne shoppIng “Online shopping has just overtaken reg- best designer in the world. I don’t say I’m In his two decades at Saks Fifth Avenue, way they shoot their models, and the fit is ular business. It’s like an express train and going to revolutionize fashion. I just say I Thomas Ott, senior vice president, general closer to the body. He said he is also look- has just overtaken we can’t let go,” Cohen said. have ideas and I want to share them with merchandise manager of men’s, gifts and ing to double his private label in the next As an example, Cohen said Trinity tar- as many people as I can,” he said. home, has seen some dramatic changes in two to three years. “regular busIness. It’s geted the digital savvy Chinese consumer When Mattiussi and Santi-Weil were the men’s wear category. Something that Saks has worked on the by sending out SMS text messages to its core asked how big they wanted Ami to be, they The shifts range from tailored clothing’s last few years is showing lifestyle dressing. lIke an express traIn customers during the 2014 World Cup. If were reticent to give projections but posi- rapid growth in the late Nineties when “We’re integrating all the different parts France won a game, customers could show tive about the future. Saks was opening stores at a brisk pace of a how a guy dresses into each and every and we can’t let go.” their SMS text messages to store associates “It’s like a friendship; we want to devel- in San Francisco, Florida and Houston floor we cover in men’s.” Consequently, for a 10 percent discount. He and his team op it first. It’s just the beginning of the story, to the popularity of casual Friday, to the men’s accessories has been on fire the last were amazed by the response. so I cannot give you a precise figure,” Santi- aftereffects of 9/11 when men started get- two to three years. “In particular, leather has become much more discerning and the Although this customer wants to be en- Weil said.“We do believe, like our friends ting dressed up again for job interviews to goods are really driving it. Sunglasses is country’s lucrative gifting culture no lon- gaged on his mobile phone, Cohen said re- have said, that men are the new women. We the influence of European fashion and de- a super business. It’s very trend oriented. ger exists. But China’s rapid urbanization tailers must offer a service in order to get do believe that there is a huge potential in signer sportswear and then the recession, You’ve got to have the right belt to go with and growing middle class create an oppor- his personal contact information. For exam- this segment.” — ARiA HUGHEs where business was off 35 percent for two the right sneakers and the right shoes. tunity for brands. ple, Trinity obtains a shopper’s information years. Now under new ownership and lead- Backpacks is, like, people never saw a Trinity currently has 390 stores in China by offering free ironing and home delivery ership, Saks is expanding again in both the backpack before. Also, fashion watches, across 65 cities, and its three brands gener- service when customers purchase a shirt. U.S. and Canada. with a little bit of color and a bigger dial.” ate $400 million in annual sales. He said the In addition to being big spenders domes- MassiMo Caronna, “As a company, we were kind of stalled. It The Chicago store had been a men’s- brands’ success in China, which has a popu- tically, Cohen said the Chinese will be trav- was great working with some super people only unit, but now has been absorbed into lation of 1.2 billion, has been predicated on eling more and they expect the same brands Brunello CuCinelli at Saks, [but] we didn’t have money to keep the main store. “You get a lot of guilt gifts. the following: targeting globally, but think- they shop at home to be available abroad. To accomplish this, Caronna said there up with the Joneses. We couldn’t do any ex- The woman spends $25,000 on the shoes and ing locally; being authentic, and, most im- The China-United States Exchange are three key components: quality, creativ- pansion. When you’re a men’s department in the bags, and they realize they need to buy portant, engaging the Chinese consumer via Foundation said that 10 million Chinese will ity and visual merchandising. at least a shirt and tie for Joe.” He recalled the Internet and their mobile phones. come to the U.S. in 2022 and each person will Materials are purchased from the best two husbands who came into the store with “They don’t go to department stores, they have $10,000 of disposable income. Cohen mills in Biella, Italy, or, in the case of cash- ‘Men are the their wives, and they went to the bar in the go to their iPhones,” said Cohen. said Trinity, which currently has stores in mere, Mongolia, and created by the com- men’s department to hang out. “They turned Citing figures from the Fung Business London and Paris, plans on opening loca- pany’s artisans in its hometown of Solomeo, new woMen.’ It’s a into big Kiton customers. One spent 40 Intelligence Centre, the executive said that in tions in the U.S. to target this customer. Italy. In fact, Caronna said, 25 percent of the “superexcItIng tIMe. grand and the other spent $50,000,” he said. 2013, China surpassed the U.S. and became “The Chinese are coming,” said Cohen. company is dedicated to quality control, en- Turning to the new Saks store that will the world’s largest e-commerce market. The “You need a Mandarin or Cantonese speaking suring that every product “adheres to the Men are well read, be opening in Brookfield Place in down- country’s e-commerce consumer base is 520 person in your stores,” he stressed. — A.H. standards of the quality the brand stands for.” town Manhattan, he said, “New York To be certain this continues, Cucinelli well versed and have will be a cluttered ball field. Everybody has created a “school of craft” in Solomeo and their aunt and uncle will be here. where young people are trained in the art an Interest In fashIon. Nordstrom, Neiman’s, Barneys and us.” of tailoring. “The average age of our tai- The Saks store will be 85,000 square feet lors is 60 or 65,” he said. “We had to make there are a lot of and will feature women’s and men’s. There a clear decision what to do for the future.” will be a 12,000-square-foot men’s floor. He The school has turned into a rousing success, great Influences said that where the uptown renovation is with 1,300 students applying for 75 slots. more Art Deco styling, the downtown store Turning to creativity, he said this “plays rIght now.” will be more modern and updated. “I think For more career opportunities log on to WWDCareers.com. a major role” in men’s wear, and is defined it’s two different trading zones. I think it by the details, whether that be the fit, the a women’s store you don’t get a lot of capex will offer us a different opportunity and color or the styling. [capital expenditures], so you’re fighting for different customer. As that area is revital- Also important is visual merchandising, all the dollars. What’s really refreshing now ized it’s a whole new shopping customer.” Check out and Cucinelli employs 30 people in Italy and a is it’s more entrepreneurial and we’re going Asked how he views the competition the new DIGITAL dozen in the U.S. whose job is to visit the mono- to grow stores again,” said Ott. downtown, Ott gave his perspective: “In brand and multibrand stores that carry the col- In a conversation with Jean Palmieri, men’s, we’re all a little different. We have a PATTERNS, SAMPLES, version of lection to ensure consistency in the displays. senior editor of WWD, Ott said that men lot of vendors we share. We’re all headed in PRODUCTIONS Today, distribution is split evenly be- are more interested in fashion today than slightly different ways, and we’re not butt- Full service shop to the trade. Fine fast work. 212-869-2699 tween monobrand and multibrand stores, they were in the past. ing heads. Of our major competitors, one is The he said. Among the retailers that carry “We started the ‘Men are the new all about luxury. They do luxury probably the line in the U.S. are Saks Fifth Avenue, women.’ It’s a superexciting time. Men better than anybody. Where I start at $2,000, premier Neiman Marcus, Mario’s and Andrisen are well read, well versed and have an in- they may start at $3,000 or $4,000, and that’s destination Morton, and over the years, these retailers terest in fashion. There are a lot of great great and God bless them. There’s another have proven to be important “guardians of influences right now. The world of sports, guy who’s very much about contemporary. for the fashion the brand,” Caronna said. “North America the great basketball players are dressing They do a lot of really young fashion and Experienced accountant/bookkeeper industry’s Real Estate, has been a key market for us,” he said, not- so well. A lot of young musicians are dress- are really into denim. Another guy is super with 34 years of experience in fashion industry Business Opportunities, ing the U.S. represents 34 percent of sales ing up.” Guys in their 20s and early 30s are classic and hits it in the middle and they do looking for a job in apparel industry and is the brand’s largest market. Europe is great for the industry, added Ott. “They’re nothing but business, and we’re very envi- Please call 917-239-0962 and Help Wanted listings. 33 percent of sales and Italy is 18.7 percent. very interested in fashion and they under- ous of that store and the volume that they

The Far East is also important, he said. stand it. Thinking back on my career, it’s do. They’re classic, and they’re great. Then POST YOUR LISTINGS ONLINE NOW! At the same time Cucinelli has been probably one of the best generations of there’s a real fashion store and they do de- careful not to sell its brand in too many male dressers that I’ve seen,” said Ott. signer probably better than anybody. That’s FASHIONCAREERS.MARKET.ADICIO.COM places around the world. “A high-quality One of fastest growing men’s catego- kind of the landscape of our competitors product cannot be overdistributed,” he said. ries at Saks is advanced contemporary, and how we see it. We try to be a little more By staying small, it allows the brand to especially the young contemporary French approachable. We’re playing in the contem- maintain its culture and its close relation- brands. “Nobody wants to be the old fogey porary zone and updated and modern. And ship with its founder. anymore,” he added. Ott said the classic that’s the landscape according to Tom.” — JEAN E. PALMiERi businesses have updated their models, the — LisA Lockwood

MW12 WWD Thursday, april 2, 2015 Men’s Week Ali AsAriA, tuliP retAil And GreG Petro, First insiGht inc. According to the data guy, men’s wear is a More importantly, Petro said recent ethAn sonG, FrAnk & oAk robust, growing business where retailers, analytics suggest that men’s wear compa- Retail is about the experience. not to mention the style advice features, all vendors and brands could all be enjoying nies can be pricing product at significantly That was the message from a presenta- help to improve the life of a Frank & Oak higher margins. higher premiums. The market test was done tion by Ethan Song, cofounder, chief execu- guy. Even mobile, whether its the payment That was the key takeaway from Greg at the Milan fashion shows earlier this year tive officer and creative director of Frank services or ease in accessing the site’s on- Petro, president and chief executive officer where First Insight engaged consumers & Oak, and Ali Asaria, founder and ceo of line content on a smartphone, helps to up of First Insight Inc. Petro said the men’s using online games to gauge trend prefer- Tulip Retail, on “From Virtual to Physical: the experience quotient. market presents a “complicated environ- ences for brands, designs and price points. How Frank & Oak Became a Model for Song advocated that people stop think- ment” where trends change fast, First Insight crunched 500,000 data Omnichannel Retailers.” ing of each option — physical, mobile or but where growth is vigorous. points in the testing, and the results re- According to Song, the apparel brand desktop — as separate channels or screens. vealed that the top three preferred was started three years ago in Montreal. Digital content is available at the Frank & brands were: John Varvatos, Prada Greg “We wanted to create cool clothes for regu- Oak stores, even at the Toronto location and Salvatore Ferragamo. The Petro lar guys like us,” Song said. And while the where half the store is a bar. The company analytics also showed that “by a company is a fashion brand, it wasn’t other also eschews beacon technology to help margin of three to one, people prefer with self-service checkout. coats without a belt versus coats with “We did the opposite. a belt,” Petro said, adding that the pre- Ali Ethan We empowered our stylists ferred colors were black, blue and brown — Asaria Song at the stores to know all preferred by men and women alike. about the customers wher- And for men only, “oxblood/purple” and ever they buy. All the chan- green/olive were tops. For women, gray and nels link to the core base,” purple were winners. But it was the pricing Song said. front that was most intriguing, Petro said. Asaria, whose firm pro- On average, four of the five product catego- vides retailers with in-hand ries tested could “bear a premium. technology to provide store “We found that products could have car- associates with product, “Customer intimacy remains important. ried a higher price point — much higher,” customer and store infor- Consumers want to communicate. And with Petro said, adding that with certain prod- mation to improve the cus- technology, you can engage consumers on ucts, such as leather, the value proposition tomer experience, said, “We that level,” Petro said, adding that with could have supported a 44 percent higher keep hearing of how shop- “predictive analytics,” men’s wear compa- price. Long coats could have fetched an 11 pers have changed….Ninety nies can also anticipate consumer behavior. percent premium while overcoats and ca- percent of what’s happen- The Summit’s theme of “The New sual jackets could have garnered premiums ing is inside the store.” Dimension” of men’s wear was fitting to of 5 and 3 percent, respectively. What Asaria means by Petro’s remarks, which included an over- “Men are also more willing to pay more that, he explains, is “Stores view of a market that is growing one-and- than women — up to 30 percent more com- design houses that the company looked to are the strongest line of defense against e- a-half times faster than women’s wear and pared to the price women will pay for the emulate. “We looked at media companies as commerce pressure and new entrants.” where online sales are growing at an im- same item,” Petro said. our reference,” Song said. That focus gave While retailers use beacon technology pressive 17 percent. — ARTHUR ZACZKIEWICZ Frank & Oak the vision of how to make the to personalize or make recommendations lives of its customers better, the ceo said. through apps, the key for retailers is still in Song described his firm as an “experi- the stores, he said. Using Frank & Oak as an ence company.” By that he means Frank & example, the style advisers are not store as- Felix del toro, lululeMon Oak creates an experience that guys want sociates. Their presence is not transactional, Yes, real men practice yoga, but they also to repeat. That experience — content on and that means a store’s purpose is no longer have other athletic pursuits. Felix del Toro the site, the ability to buy products online about inventory. Rather, the “store is a way to As Felix del Toro, senior vice president and personal service, whether texting cus- share the brand, the products and the experi- and head of men’s design for Lululemon tomer service or working with a personal ence,” Asaria explained. Athletica, describes the company’s con- stylist — are all powered by technology. Yet He said for omnichannel, consistency sumer, he works out five or six days a week it’s the culture and content that changes and continuity at every touchpoint is key. and may do yoga once a week. monthly that pushes Frank & Oak more According to Asaria, it’s the simplest things Del Toro recalled that when Lululemon into the media realm, or at least that’s how that drive the return on investment, such as Athletica was in the throes of developing the company views itself. sales associates having mobile capability to its men’s business two years ago, one ques- The monthly collections are available answer questions from customers. “The fu- tion that kept coming up was whether to for a 60-day period, allowing for small pro- ture of retail is the store and the future of the change the brand name and the logo. “How duction runs that tend to sell out in 45 days, store is the associate,” Asaria concluded. can this be relevant for men when it’s Song said. And the monthly digital content, — VICKI M. YoUng such a woman’s brand,” del Toro remem- bered being asked again and again. “Can a women’s yoga brand be meaningful for men? Obviously, we feel the answer is yes. GiovAnni MAnnucci, BoGlioli Besides, we liked the challenge.” How do you build a powerful brand? Lululemon describes its male consum- in conversation around what is meaningful Giovanni It’s a complex question, but Giovanni ers as being confident, competitive, well and what is relevant for our guest, who is an Mannucci Mannucci, president and chief executive rounded and happy. “Self-assured and self- athlete,” he said. “Within this very challeng- officer of Italian men’s wear brand Boglioli, aware,” del Toro added. “He’s discerning, ing world, how do we support him in living attempted to answer it in the most spirited he recognizes quality and expects it. He’s his daily life? By making products that way possible. style conscious, works hard, has a sense of allow for transformational experiences.” Mannucci, who previously served as ceo humor and is witty. He’s a multidimension- Lululemon apparel is created with the in- of high-end men’s wear firm Isaia, is oversee- al man, someone you’d want to be friends tent of multiple uses. The Pace Breaker short, ing Boglioli’s expansion. The tailored cloth- with and someone you’d want your sister to for example, was made from swim fabric ing brand opened a Milan flagship last year marry — I know, he’s quite a guy.” and can be worn as both a workout short and after Wise SGR, the private equity fund that It stands to reason that the company’s swim trunk. “He was happy because we made owns all shares of the brand, completed the motto, “There’s no reason why you shouldn’t his suitcase lighter,” del Toro said of the con- acquisition of about half of its current debt at look as good as you feel when you’re working sumer’s reaction to the two-in-one product. merchant bank GE Capital Interbanca. out and pushing your boundaries,” would ap- The ABC pant made from moisture-wicking The executive, who joined Boglioli in peal to such a male consumer, who may be a four-way stretch fabric can be worn during a 2013, used business philosophies and per- little vain, although del Toro didn’t address consumer’s commute, while reflective details sonal anecdotes to detail how he’s attempt- the possibility. allow him to go bike riding. The pant can be ing to grow the brand, which was founded in “We’re in this moment where sportswear worn to work and after work because it has early 1900 and is best known for its K. Jacket. and performance gear have come together,” “an elevated aesthetic,” del Toro said. According to Mannucci, brands should del Toro said. “For us, it’s not a moment, it’s Products under the headings of Sweat, attempt to follow in the footsteps of the who we really are. We create product by, Post-Sweat and No Sweat address func- Apple iPhone and dominate a space in- with and for athletes, and our ultimate goal tional strength training with a perfor- stead of competing with other players. bad. You should listen to things. But if you is to reach this intersection between techni- mance fabric so “the customer only has “They told us competition was a very good have a plan, stick to it,” he said. “They are cal performance and effortless style.” to focus on his performance. There are no thing. It was a healthy thing. The more going to hate you at one point, but eventu- Del Toro said men’s accounts for 14 per- distractions for him,” del Toro said. After competition you have, the better for the ally they are going to marry you. It’s the se- cent of the total Lululemon Athletica busi- a workout, Post-Sweat garments allow his consumer. But if you are the entrepreneur quence of the Kardashians.” ness, which had sales of $1.6 billion last body to cool off, while No Sweat recognizes and you are the guy that’s playing the game, As companies embark on this sequence, year. In November, the company opened its that he has a life outside of working out. you don’t like competition do you? You Mannucci said uncertainty and lack of per- first men’s freestanding store in New York’s Offering some insight into the company want to dominate the game,” he said. sistence will get in the way of creating a SoHo. “We’re looking at other stand-alone and its culture, del Toro described going In order to dominate, he offered a suc- powerful brand. men’s locations, we’re looking at bigger to work and “being surrounded by athletes cess sequence for brands — attention, criti- “You need to know what you are doing,” stores and side-by-side stores,” he said. “We every day. You see people coming in that cism, haters, admiration — and likened it he said. “If you are not sure of your values, have over 250 stores today. We’re optimizing have gone for a 20k run, somebody who’s to the Kardashian brand trajectory. your goals and what you want, the world what’s happening in those stores. We’ve ex- been cycling and someone who’s been at the “The first one is attention. Say, ‘Hey, I’m will never reward you.” panded the collection by 70 percent and we pool. It’s really about being engaged in an here.’ You are going to get the attention. His last piece of advice: stay in the game. see additional growth beyond that.” active lifestyle. It’s how we bring the brand Once you get the attention you are going “Spectators pay and players get paid.” Del Toro derives a lot of insights from to life and engage as a collective.” to get criticism. Now criticism is good and — ARIA HUgHES customer feedback. “We are consistently — SHARon EdElSon