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Schoolgirl Crush JEFFREY PFEIFLE LEAVES J. CREW/2 DVF ON ART AND ADS/8 WWDWomen’s Wear Daily •WEDNESDAY The Retailers’ Daily Newspaper • January 23, 2008 • $2.00 Sportswear Schoolgirl Crush Has Karl Lagerfeld been visiting a few tony private schools or, say, catching some key episodes of “Gossip Girl”? Perhaps so, because on Tuesday, he went for the youth vote at Chanel with a spring couture collection of abbreviated looks featuring those fabled jackets. Here, one of his jeunes fi lles in a short, braid-trimmed gray suit. For more on the season, see pages 4 to 7. Good News at Last: Retail Shares Buck Stock Market’s Fall By WWD Staff hile investors on Wall Street Wdumped stocks Tuesday on fears of a recession, there was renewed optimism about at least one sector: retail. The S&P Retail Index surged 5.4 percent to 394.39 as shares of retailers across all channels responded to the Federal Reserve Board’s emergency — and unprecedented — interest rate cut of 75 basis points. Investors are already banking on another rate cut next week. The much-battered retail area was, ironically, the lone star as the Dow Jones Industrial Average closed down 1.1 percent to 11,971.19, after dropping See Retail, Page13 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY 2 WWD, WEDNESDAY, JANUARY 23, 2008 WWD.COM Jeffrey Pfeifl e Exits J. Crew WWDWEDNESDAY Sportswear By David Moin Jeffrey Pfeifl e n a stunning development at J. Crew Group, Jeffrey Pfeifle, president, will leave the com- FASHION I There’s nothing quite like fashion in the round, as the curved shapes in pany on Feb. 1. Pfeifl e has been the number-two executive at 4 Karl Lagerfeld’s Chanel and Giorgio Armani’s Privé collections showed. the retailer, reporting to chairman and chief ex- ecutive offi cer Millard “Mickey” Drexler, since GENERAL 2003. He’s been a close associate of Drexler for While investors on Wall Street dumped stocks Tuesday on fears of a even longer. 1 recession, there was renewed optimism about the retail sector. “Jeff and I have had a successful collabora- tion for more than 15 years, with the last fi ve at J. In a stunning development, J. Crew Group’s president and number-two Crew,” Drexler said in a statement Tuesday. “He 2 executive, Jeffrey Pfeifl e, said he will leave the company on Feb. 1. has made signifi cant contributions to our busi- The World Economic Forum is likely to be dominated by concerns that a ness. I very much appreciate our working rela- 2 sharp downturn of the U.S. economy could trigger a global recession. tionship and wish him the best.” “I have been fortunate to work with Mickey Diane von Furstenberg’s fi rst major print ad campaign in a decade is and such a talented team, and I am proud of what 8 meant to defi ne the brand’s DNA and lead to broad product expansion. has been accomplished at J. Crew,” Pfeifl e said. MAINSTREAM: After a diffi cult holiday season, buyers were cautious at Pfeifl e played a critical role in helping Drexler 10 Surf Expo, hoping that bright colors and prints would entice consumers. execute the visions for turnarounds and start- ups, including rebuilding J. Crew and launching Patrick Rabain, executive vice president of L’Oréal’s consumer products Madewell. Mostly, he had executives from the cre- 11 division, will retire at the end of February. ative sides of the teams reporting to him. Drexler WEST: The Hollywood writers’ strike, which scuttled the Golden Globes and the quieter Pfeifl e seemed to revel in the gala, loomed over the Oscar nominations and its red carpet. challenge of a turnaround and in every detail of 15 the business as J. Crew became one of the fastest- Classifi ed Advertisements.............................................................16-19 growing retailers around. Signifi cantly, the company said there is no near- To e-mail reporters and editors at WWD, the address is fi rstname. term plan to fi nd a successor and that Pfeifl e’s re- [email protected], using the individual’s name. sponsibilities will be assumed by members of the executive team. Some of them have been gaining in stature, growing in their positions and working WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT closer as partners with Drexler, including Jenna ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Lyons, creative director overseeing women’s de- after being pushed out as ceo of Gap Inc. A week VOLUME 195, NO. 16. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, October and December, two additional issues in March, April, May, June, August and sign; design of Crewcuts, the children’s chain; cre- after he joined J. Crew, he recruited Pfeifl e from November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division ative development of catalogue and Web. Old Navy, where he served as executive vice pres- of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services Other key players ident and had worked closely with Drexler on provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. are Margot Brunelle, the Old Navy rollout in the Nineties. Prior to Old Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice senior vice president Navy, he worked at Polo Ralph Lauren. President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post of marketing and pub- Another source close to the company said it Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 lic relations for J. Crew, was “a mutual decision” for Pfeifl e to leave, and POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Madewell and Crewcuts; that there wasn’t a specifi c disagreement that trig- Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR Tracy Gardner, presi- gered the departure. J. Crew’s announcement on BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289- dent of retail, direct Pfeifl e’s departure gave few details and did not 0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy and merchandising; use the term resignation to characterize his leav- of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production Todd Snyder, senior ing. “I’m wondering if it was a parting of ways,” correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other vice president of men’s said one retail analyst, who requested anonymity. Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list design; John Valdivia, Another retail source said the partnership be- available to carefully screened companies that offer products and services that we believe would interest our readers. senior vice president, tween Drexler and Pfeifl e after all these years If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA store visual for J.Crew, “was no longer working out. It was time for him 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, Crewcuts and Madewell, to move on. He wasn’t as engaged. At one time, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, and Libby Waddle, ex- Drexler and Pfeifl e were real tight.” BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR ecutive vice president “I was really shocked,” said another retail ana- CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR Millard “Mickey” Drexler of the factory division. lyst, who also requested anonymity. “I believe they DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY Pfeifl e could not be let him go.” A SELF-ADDRESSED STAMPED ENVELOPE. reached for further comment on what happened In after-hours trading following the Pfeifl e an- or what his future plans are. nouncement, J. Crew shares fell 30 cents to $39.69, Sources close to the company said Tuesday that or 0.75 percent. they believe Pfeifl e doesn’t have a new job yet and According to a Form 4 fi ling by Pfeifl e in June, may have decided to take it easy for awhile after he owned about 540,000 J. Crew common shares. At In Brief working so hard for several years. the current trading price of almost $40, Pfeifl e’s J. Drexler joined J. Crew in late January 2003, Crew stock would be worth roughly $21.6 million. ● TAHARI DEPARTURE: Husein Jafferjee, Elie Tahari Ltd.’s ex- ecutive vice president and chief operating officer, is leaving the company Feb. 1. Jafferjee has been with Tahari for eight years.
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