PLUS: Dylan ON THE CLOCK Lauren gets a ACCESSORIES: THE sweet- LATEST TRENDS FROM THE toothed BASELWORLD WATCH FAIR. wedding STYLE, PAGE ONE shower. STYLE, PAGE 8 L

TAX DECISION Dolce, Gabbana Cleared by Judge

By LUISA ZARGANI

MILAN — Innocenti. A judge here ruled Friday that designers Domenico Dolce and Stefano Gabbana will not stand trial for alleged tax evasion. After four-and-a- ■ ■ MONDAY, APRIL 4, 2011 WOMEN’S WEAR DAILY $3.00 half hours behind closed doors evaluating evidence WWD by Milan-based prosecutor Laura Pedio and state- ments from the defendants, judge Simone Luerti on Friday dismissed the charges and deemed there was foundation for a trial. The designers’ lawyer, Massimo Dinoia, was visibly pleased and fi elded questions by a handful of journalists assembled at the Milan courthouse, but declined comment. The designers also declined comment. “There are no elements of penal relevance,” said Giuseppe Bana, lawyer for the designers’ accoun- tant, Luciano Patelli, following the preliminary court hearing. “I am very pleased with this decision and I’m not in the least surprised. The judge prevent- ed this from going too far, it’s an investigation that should never have been initiated in the fi rst place.” Luerti had the option to dismiss the case if the evidence didn’t justify moving forward. Wild The judge’s decision cleared Dolce, Gabbana, Patelli, and four others involved: Dolce’s brother and board member Alfonso Dolce, managing direc- tor and board member Cristiana Ruella, and compa- ny managers Giuseppe Minoni and Antoine Noella. None of the defendants attended the hearing, Mannered which was not open to the public or the media. A source said Dinoia, who has been repre- Their shapes may senting the designers for the past three years, be ladylike, but wrote a fi le of more than 300 pages refuting the these accessories accusations. Lawyer Alberto Simbari, who works in Dinoia’s offi ce, told WWD in February “the are anything but challenges for fraud and fi scal irregularities do demure. Fall’s not exist in fact and in law. [The designers have richly colored acted] in a legitimate and transparent manner and we reject any accusation.” furs and skins are SEE PAGE 3 the makings of one fi ercely chic IN WWD TODAY season. For more, see pages 4 and 5. All Eyes on American Apparel PAGE 2 RETAIL: With its mounting losses and debt woes, the retailer is said to be trying to line up new fi nancing without which observers say it might have to fi le Chapter 11.

Hermès Eyeing Sale of Gaultier Stake PAGE 2 FASHION: The luxury goods house said it is in talks with several prospective buyers for its 45 percent holding in Jean Paul Gaultier.

Marlies Dekkers’ L New Brand STYLE, PAGE 3 INNERWEAR: The Dutch designer gets set to introduce a diffusion line in July. From top: Nancy Gonzalez’s crocodile and suede bag, Adrienne Landau’s raccoon fur boa, Jimmy Choo’s mink and crocodile bag and Sergio Rossi’s calf hair and fox fur shoe.

PHOTO BY ROBERT MITRA; STYLED BY SHOSHANNA FISCHHOFF 2 WWD monday, april 4, 2011

Hermès Looking to Sell Jean Paul Gaultier Stake American Apparel Facing By Miles socha Growing Financial Squeeze PaRis — hermès international and Jean apparel can win waivers for this covenant, its Paul Gaultier — unlikely bedfellows since By DaViD liPke loans will go into default, preventing the com- 1999 — moved a step closer to a full divorce pany from making any additional borrowings, Friday when hermès said it has initiated aMeRicaN aPPaRel is scrambling to and the entire debts become immediately due. discussions to sell its 45 percent stake in find new financing as it faces a severe in addition, defaulting on the Bank of Gaultier following “an expression of interest cash crunch and a looming april 30 dead- america credit agreement would trigger a from potential buyers.” line that could cut off its ability to borrow default on the lion capital loan. The identity of the suitors could not im- from banks and cover daily operating costs, “it’s a pretty meaningful date,” said lyndon mediately be learned; however, sources said which could potentially trigger a chapter 11 lea, a founding partner at lion capital, of the they would likely include beauty firms with bankruptcy filing. potential april 30 covenant breach. experience in fashion — with spain’s Puig, The company has tapped the Rothschild lea and Neil Richardson, also of lion owner of Nina Ricci and Paco Rabanne, a investment bank to shake the money tree for capital, both resigned from the american likely suspect — or an asian player keen potential investors, but so far there have been apparel board last week, which some observ- to leverage Gaultier’s Parisian cachet in no takers, according to company insiders. ers saw as an indicator that the investment fast-growing markets like china. such con- “Without an additional injection of cash, firm is losing faith in charney. however, lea tenders could include acquisition-hungry the company is done. somebody has to write countered the move was taken to prevent a Fung capital, which on Friday said it had a check,” said howard Davidowitz, chairman conflict of interest for the equity firm. acquired majority control of French shoe- of New York-based Davidowitz & associates, “as board members, we were responsible maker Robert clergerie. (see story, page 6.) a retail consulting and investing banking for a lot of different interests in terms of last year, hermès ended its seven-year design firm. “There is no way the company can con- shareholders and creditors and stakehold- collaboration with Gaultier, who was tapped in tinue in its present state.” ers. Now that we have 2004 to succeed Martin Margiela as its designer of Dov charney, chairman been talking about raising women’s ready-to-wear. The madcap couturier was re- and chief executive officer Dov Charney new forms of liquidity, and cruited and championed by former hermès chief exec- of american apparel, in- we’d have to have a clear utive officer Jean-louis Dumas, who died in May 2010. A Jean sisted the company will not point of view on whose in- christophe lemaire, best known for his earlier role Paul file for bankruptcy. “in my terest we were looking out as lacoste’s creative director, was named Gaultier’s suc- Gaultier opinion, there’s no chance for, that made it more dif- cessor and showed his first women’s collection last month design. of that. That’s not an option ficult. something that was during Paris Fashion Week, a quiet parade without the we are going to explore,” good for american apparel humor or antics unleashed every season by Gaultier. he told WWD. “We have a might be bad for lion hermès bought 35 percent of Gaultier in 1999 by in- variety of options. We could capital,” explained lea. vesting $23.4 million in the business. The plan was to ex- do a private placement of asked why the two pand the designer’s network of boutiques at the rate of stock. or we could use the joined the board in the three a year. at present, there are about 30, with a new one resources we have. We do first place, lea respond- slated to open soon in Taiwan. $10 million a week in sales.” ed: “That’s a damn good in 2008, hermès raised its stake in Gaultier to 45 percent. The same however, the company’s question. But hindsight is year, hermès Parfums’ ceo Véronique Gautier was appointed president financial picture is bleak. 20/20. We didn’t think there at the Gaultier fashion house, suggesting tighter synergies between the last week, it reported a net would be these liquidity maker of Birkin bags and silk scarves and the maverick designer, who has loss for 2010 of $86.3 mil- issues when we first made put men in skirts and Madonna in conical bustiers. lion and an eBiTDa loss of the investment and the But Gautier exited the role in mid-2010 to become international general man- $7.4 million. as of Feb. 28, it company was doing $80 ager of Giorgio armani Parfums. The designer himself took on the title of presi- had just $5.3 million in cash and $1.9 million million in eBiTDa.” dent and put caroline le Borgne in charge of day-to-day operations at Jean Paul of availability for additional borrowings on a lion capital may provide additional fi- Gaultier. she has been Gaultier’s deputy managing director sinces eptember 2006. Bank of america credit agreement and $1.2 nancing to american apparel itself, with lea “We are aware that hermès has been approached,” said a Gaultier million on a Bank of Montreal credit agree- saying he was “favorably inclined” to doing spokeswoman. ment. The company owed $58.2 million on the so but that no final decisions had been made. she declined to comment on reports suggesting the designer initiated Bank of america facility and $4 million on lion capital is exploring various loan and in- a sale effort to raise capital for expansion. the Bank of Montreal facility. additionally, as vestment options, he added, noting that an ad- it is understood the Gaultier fashion house remains loss mak- of Dec. 31, american apparel owed $81.2 mil- ditional cash infusion into american apparel ing, despite healthy royalties from beauty licensee Beauté Prestige lion to lion capital, the london-based private was probably necessary “within weeks.” international. equity firm that rescued the company from its asked his views on a possible american according to hermès’ most recent annual report, 2009 revenues at last financial precipice, in 2009. apparel bankruptcy filing, lea said he wasn’t con- Gaultier, derived mostly from licensing royalties, dropped 19 percent to The company has repeatedly warned in cerned for lion capital’s funds. “if they do file, i 23 million euros, or $32.1 million at average exchange rates for the pe- its filings with the securities and exchange feel okay. i believe the brand has a lot of value, riod. according to official records, the company posted losses of about commission that it may not be able to contin- and it’s more than what they owe me,” he noted. 2.9 million euros, or $4.1 million. sources indicated Gaultier logged an ue as a “going concern,” due to its financial Davidowitz pointed out that any new in- increase in sales and losses narrowed in 2010. circumstances. charney has spun those warn- vestors could wrest majority ownership of aeffe spa, which produces and distributes Gaultier’s signature collec- ings as boilerplate language meant to protect american apparel from charney, who currently tion, recently said 2010 sales of the line edged down in the low double-digits. investors— but they have also triggered a se- holds 62.7 percent of the shares in the company, sources said Gaultier’s perfume operation remains the key asset of rious potential covenant breach with lenders. not inclusive of warrants held by lion capital, the business, along with the designer himself, who has a cultlike follow- Both Bank of america and Bank of Montreal convertible to 16.8 million shares. “i don’t see ing. BPi — shiseido’s high-end fragrance arm — has held the Gaultier require the company to furnish audited finan- how there is any way for him to retain a majority fragrance and cosmetics license since 1990 and renewed it in 2000 for 15 cial statements that do not contain a “going con- stake in the company. any major equity investor more years. cern” qualification by april 30. Unless american will want a controlling stake,” said Davidowitz.

To e-mail reporTers and ediTors aT WWd, The address is ouT Today daily QuoTe Today on WWd.CoM [email protected], using The individual’s name. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. ■ EYESCOOP: See more COPYRIGHT ©2011 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 201, NO. 69. Monday, April 4, 2011. WWD (ISSN 0149–5380) is published daily (except pictures from the “Source Code” Saturdays, Sundays and holidays, with one additional issue in May, June, November and December, two The fact that screening, Dylan Lauren’s bridal additional issues in February, March, April and August and three additional issues in September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 shower and Fall 2011 Trend: Quilty Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; we are selling so Pleasures at WWD.com/eyescoop. Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, Chief ■ WWDBLOG: See the latest Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. from WWD’s newly relaunched 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: many expensive blog at WWD.com/fashion-blogs. return undeliverable Canadian addresses to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . Box 15008, North Hollywood, ■ BUSINESS: More financial CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE pieces is a clear news and daily stock movements INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, call 800-289- 0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent at WWD.com/business-news. label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further ■ GLOBAL BREAKING NEWS obligation unless we receive a corrected address within one year. If during your subscription term or up to sign of recovery. one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed — Hublot’s Jean-Claude Lindsay within four weeks after receipt of order. Address all editorial, business, and production correspondence biver. style, page one Lohan to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For reprints of articles, please contact Scoop ReprintSource at 800-767-3263 or via e-mail at [email protected]. Visit us online at www. wwd.com. To subscribe to other Fairchild Fashion Group magazines on the World Wide Web, visit www. CoMing This Week ■ Cache Inc. reports THURSDAY: Major U.S. fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive NER

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{Continued from page one} Luxembourg instead of being declared and taxed in The dapper Dinoia, who was wearing a Gianfranco Stefano Gabbana and Italy. The designer’s lawyer, Francesco Giuliani, said at Ferré suit on Friday, has been a criminal lawyer for 30 Domenico Dolce the time, “Our position is that the authorities have not years and has argued countless high-profi le cases. He taken into account the real situation: IFF does not have was recently on the front pages of newspapers through- a structured organization in Italy, and they [the tax au- out Italy as the lawyer representing the young woman thorities] did not correctly calculate the turnover of IFF, nicknamed “Ruby Heartbreaker,” who implicated Prime as they did not take into account the company’s costs.” Minister Silvio Berlusconi in a sex scandal. Dinoia de- Two years ago, the Lazio, Italy, regional tax offi ce hit cided against defending the woman in February. Valentino Garavani and his longtime business partner, A legal source said the Milan prosecutor Pedio was Giancarlo Giammetti, with a 33 million euro, or $46.7 “extremely surprised” by the outcome and may decide to million at current exchange, fi ne for allegedly evading appeal, once she reads the judge’s reasons for dismiss- tax payments. The fi ne was levied in relation to possible ing the case. Luerti will fi le the papers in 30 days. The undeclared earnings. According to the tax offi ce, the cou- acquittal could also be supported by the government’s turier and Giammetti avoided declaring their incomes decriminalization of false accounting, said a source. in Italy by moving their residence outside the country, Another legal source close to the matter said, “It’s while effectively keeping their business operations here. not as if nothing happened, issues at an administra- However, their lawyer, Marino Bastianini, stated that tive level remain, but the limits that would make this a both men have been residents in the U.K. for almost a de- penal offence were not passed.” cade and have “in that period always declared and been According to the accusations, each designer allegedly subject to tax in the United Kingdom, which included evaded taxes totaling 416 million euros, or $589 million taxation of the consultancy income received from the at current exchange. The designers issued a statement Valentino company. The dispute with the Italian authori- in May 2009 denying the allegations, which relate to the ties is in essence not about tax evasion but related to the 2004 sale of the Dolce & Gabbana and D&G brands to the interpretation of facts and circumstances concerning tax designers’ Luxembourg-based holding company, Gado Srl. residency. The issue has been [the] subject of a previous The Italian tax police are understood to consider Gado investigation in Italy and the U.K. and on both occasions essentially a legal entity, allegedly used to avoid higher the U.K. residency has been considered in full compli- corporate taxes in Italy. Noella, a source said Friday, was ance with the Italian and U.K. tax regime, thus acknowl- considered by the prosecutor only a fi gurehead manager. edging the legitimacy of their U.K. residency.” The designers said the accusations were “based on a Bastianini said the issue “disregarded some ele- completely abstract calculation,” which enables the tax au- ments which were previously taken into consideration.” thorities to replace the sum actually paid with a hypotheti- Salvatore Ferragamo SpA also was accused of tax cal market value. Since their May 2009 statement, the de- fraud, reportedly to the tune of more than 20 million euros, signers have consistently declined to comment on the issue. or $31 million, in unpaid monies related to the group’s There also was a separate criminal probe into sup- Netherlands-based holding company. However, the fashion posed tax irregularities at the Dolce & Gabbana Group, company was cleared of the charges on appeal three years which was part of the case dismissed Friday. Those ac- ago. Ferragamo proved on appeal that its holding company, cusations address unpaid taxes of 200 million euros, or Ferragamo International B V, was a fully consolidated part $283 million. The designers’ alleged evasion of national tinue to press the case, “the designers may still have to of the group and not, as fi scal authorities had alleged, little income tax could have carried up to a three-year prison pay a fi ne, or they may have to turn to the province tax more than legal entity, which the fashion house used to sentence or a fi ne up to 1 million euros, or $1.3 million commission” to avoid any fi ne. avoid paying higher corporate taxes in Italy. at current exchange, according to a legal source. This was only the latest go-round between fashion Three years ago, Roberto Cavalli was cleared by The news that Dolce and Gabbana had been in- designers and crusading Italian tax authorities — who Italy’s Supreme Court of Cassation of a tax evasion in- dicted and could have faced a court trial emerged in seem to be better at throwing allegations than at actu- dictment, after the designer was accused in 2002 of evad- November, as Pedio confi rmed that Dolce and Gabbana ally proving them. Over the years, numerous luxury and ing fi scal responsibilities by booking costs to remodel had been indicted on tax evasion charges. The inves- designer brands have been accused of evading tax pay- his villa on the hills surrounding Florence as company tigations were initiated by the Guardia di Finanza, an ments through dummy headquarters or residency in expenses for the fi scal years 1996 through 2000. Cristiana Italian police force under the authority of the national countries where the fi scal grip is less tight than in Italy Cavalli, daughter of the designer and president of the minister of economy and fi nance. — and in most cases the designers and brands have suc- company, told WWD at the time that they had proved While the judge’s decision Friday to throw out the case cessfully refuted the allegations. The authorities also “there were never fi ctitious activities or expenses.” upset the Milan prosecutor, one leading industry fi gure, have gone after high-profi le fi gures in sports, the arts Gianfranco Ferré, Santo Versace, Mariuccia Mandelli Armando Branchini, deputy chairman of Milan consul- and industries across the board. of Krizia and their business associates were indicted in tancy InterCorporate, predicted the outcome months ago. In July, an inquiry by the Guardia di Finanza re- July 1995 on charges of corruption and bribing tax po- “Italy’s tax agency wants to win the favor of public opinion sulted in allegations that Belgian designer Dirk lice in return for swift, trouble-free audits. While they and show it keeps busy. It often doesn’t get to those that con- Bikkembergs evaded tax payments of 111 million euros, were originally found guilty, a higher court overturned sistently defraud the fi scal system because they succeed in or $151.7 million. Bikkembergs rebutted the allega- the verdicts and found they were victims of extortion. becoming totally invisible, so it focuses on those that are tions, calling them “shameful towards a foreign inves- At that time, Giorgio Armani, Gerolamo Etro and visible, that do pay their taxes,” said Branchini. “So many tor.” The investigation is focusing on two companies: 22 Krizia chairman Aldo Pinto were indicted on similar luxury goods houses are visited by the Guardia di Finanza Srl, which produces clothing in Fossombrone, Italy, for charges, but pleaded guilty in May 1996 before the trial for months on end, which slows down their daily activities, Bikkembergs’ brand, and Luxembourg-based IFF Sarl, began. They, too, said they were victims of extortion, but and already Italian bureaucracy doesn’t help.” the distributor of the brand’s products. took plea bargains to end their cases as soon as possible Another source said he believed Friday’s outcome The authorities alleged the Bikkembergs organiza- to save themselves and their businesses from the impact was “reasonable.” Should the authorities decide to con- tion is in Italy and that revenues were redirected to of a long judicial process.

GUEST SPOT: Former-model-turned- right now, Bäumer noted that the designer Bibi Russell will be the active market in China has been FASHION SCOOPS keynote speaker today at Intersections driving prices upward for gemstones International’s Powers and Values — “the price of rubies has really HELPING HAND: More than fl ash-sale Web site Ajaline.com initiative in New York. Through her gone crazy” — while technology $850,000 has been raised so far have corralled 19 jewelry fi rms clothing line, she has provided work was becoming more and more key. for the UJA-Federation of New to donate pieces for auction on for thousands of Bangladeshis, and her The Place Vendôme-based jeweler, York annual fashion luncheon on Charitybuzz.com, with a 100 business model has been replicated in for instance, currently employs April 5 at Cipriani 42nd Street, percent of proceeds going to relief such places as Africa, India, Pakistan 3-D software, traditionally used for where Frank Doroff, vice chairman efforts. Among the list of donors: and Sri Lanka. Attendees will also get airplane and car designs, to create of Bloomingdale’s, and Steven B. H.Stern, House of Waris, Buccellati, a glimpse of her designs. some of his high-priced fi nery. Next Tanger, chief executive offi cer of Kimberly McDonald, Mikimoto, up on the FIAF roster: a talk with Tanger Factory Outlets Centers, will Monica Rich Kosann and Robert Lee CATCH A WAVE: Lorenz Bäumer, Oscar de la Renta on Monday. be honored. “We are raising a great Morris. “We sought to bring together jewelry designer, engineering grad deal of money. I felt a responsibility the many brands and individuals and…avid surfer? That’s just one SAIL AWAY: Fifteen teams from 12 to do something,” Doroff said. In who, like myself, have experienced of the fun facts gleaned from the countries will participate in the Louis the past decade, $6.5 million has the extraordinary generosity of the second installment of the French Vuitton Cup in 2013. China, Sweden, been raised through the event. Stacy Japanese people,” said Conte, who Kelly Cutrone’s new book. Institute Alliance Française’s “Art de France and the United States are among London, co-host of TLC’s “What Not spent 17 years living in Japan. “We Vivre: Fashion Talks.” Bäumer, born those participating. The preliminary to Wear,” will emcee the luncheon. hope that through our efforts, we’re “Normal Gets You Nowhere.” The in Washington, D.C., to diplomats, regattas, the America’s Cup World Michael Gould, Bloomingdale’s able to repay at least some of that publicist/TV personality/designer/ took the audience through his Series, will start next August in Portugal, chairman and ceo, and Laurence kindness during a time of such mother hopes her HarperOne- career from furniture designer and will go to Plymouth in England and, by C. Leeds Jr. of Buckingham Capital immense sadness.” The “Jewelers published tome will make readers costume jeweler (selling $30 to December, they will sail in San Diego Management Inc. will present the for Japan” sale kicks off on April 5 rethink who they are, what they $40 baubles to his mom’s friends at Bay. The Louis Vuitton Cup will be awards to the honorees. and will close on April 19. value and what they want from life. Tupperwarelike parties) to longtime held from July 13 until Sept. 1, 2013, Cutrone, whose fi rst book was a fi ne jeweler for Chanel and his and the America’s Cup from Sept. 7 to AIDING JAPAN : Fashion designers THE NEW NORMAL: Kelly Cutrone New York Times bestseller, will no current gig at Louis Vuitton, where 22, 2013. The 34th America’s Cup, aren’t the only ones getting behind will be the fi rst to admit she is not doubt be making the media rounds he revealed there’s a massive 30- which will take place in San Francisco Japanese aid efforts. Meeling one for convention. Just consider once her latest effort hits stores carat diamond in the atelier. As for Bay, promises spectacular sailing races Wong and Jim Conte of fi ne jewelry the title of her forthcoming book — May 3. the biggest changes in the industry with futuristic boats. 4 WWD MONDAY, APRIL 4, 2011

Dax Gabler’s calf hair and leather flat.

Ranjana Khan’s mink, river pearl and metal necklace.

Tod’s pony hair clutch.

Sang A’s python bag.

Edmundo Roger Castillo’s Vivier’s pony marmot fur hair and and leather metallic bag. kidskin wedge. WWD MONDAY, APRIL 4, 2011 5 WWD.COM Wild and

Jérôme Dreyfuss’ calfskin and long- haired shearling bag. Wool ly

Alexandre Birman’s Skin is in, and so are plush python pump. fur, sleek pony hair and fantastic feathers. Accessory designers are making fl amboyant use of them all for some of the most creative — and most gorgeous — fall looks. — Shoshanna Fischhoff

PHOTO BY ROBERT MITRA

Kara Ross’ python bag.

Brian Atwood’s pony skin, ostrich feather and grosgrain ribbon shoe. 6 WWD monday, april 4, 2011

Shoes from Robert Urban Outfitters Forecast Lowered Clergerie. about 70 percent of Urban’s stores are in By sharoN eDelsoN outdoor locations. “it’s difficult to predict when UrBaN oUtfitters iNc. reported the Urban consumer will adopt the weaker-than-anticipated March sales in new fashion trend,” tennant said. its 10-k filing, released friday, setting “historically, the transition period has up the likelihood of lower-than-expected averaged 12 to 18 months. the company Fung Acquires Robert Clergerie first-quarter sales. is eight to nine months into the current “thus far, during the first quarter of cycle, leading us to believe adoption Paris — signaling a buoyant market for clergerie bought back a 90 percent fiscal 2012, comparable retail segment will occur in the second half. in the luxury footwear and a perky climate for stake in his company in 2004 after ceding net sales are low single-digit negative,” meantime, we continue to see solid evi- mergers and acquisitions, fung capital majority control to investment fund sG the company said. dence of inventory control.” and fashion veteran Jean-Marc loubier european equity Partners in 1999. following the retailer’s filing with the Both Jaffe and tennant reiterated have teamed up to acquire a majority clergerie’s factory — in operation securities and exchange commission, “buy” ratings, citing the company’s suc- stake in luxury french shoemaker robert in the Drome region of france since several analysts published research cessful international expansion, addi- clergerie from its namesake founder. 1895 — is one of the last remaining ones notes lowering their first-quarter esti- tion of new brands, increased impact rc holdings — a new entity held by in romans, and the designer remains mates. stifel, Nicolaus & co. retail ana- from the direct business and one of the fung Brands limited, a subsidiary of a staunch supporter of french-made lyst richard Jaffe said comparable retail highest quality management teams in fung capital limited, and loubier — said shoes. the company employs 200 people segment sales will be up 1 percent in the the industry. it took a 90 percent stake in financiere and generates revenues of more than 20 first quarter, given the 4 percent increase a proxy statement on friday said de romans, which owns the clergerie, million euros, or $28.3 million at current in february, the negative 5 percent esti- total fiscal 2011 compensation for Glen fenestrier and espace brands, with the exchange. loubier noted the firm oper- mated for March and the mid-single digit senk, Urban’s chief executive officer, designer maintaining 10 percent. ates at break even. there are 20 free- gain that appears likely for april. “this is was slightly more than $2.5 million. financial terms were not disclosed; standing clergerie stores in france, the below our original estimate of a 5 percent the breakdown was $1,003,846 in sal- however, it is understood fung holds the U.k., spain, switzerland and the U.s. increase for the quarter,” Jaffe wrote. ar y, $5,000 in bonus, $1.5 million in non- majority of rc holdings. loubier said he sees significant expan- adrienne tennant, an analyst at equity incentive plan compensation and london-based fung capital is the sion potential in europe, the U.s. and asia, Janney capital Markets, said in a re- $4,272 in other compensation, including private equity partnership of Victor and and that the business could double in size in search note, “With a softer start to the life insurance premiums. senk in the William fung of li & fung ltd., which four or five years. he noted that clergerie’s quarter, we are lowering our first-quarter previous year received stock awards bought hardy amies in 2008. original innovation — interpreting mascu- profit estimate to 28 cents a share from worth $26,931,904. the awards are con- li & fung, the hong kong-based sourc- line shoes for women — is currently in line 30 cents [the street consensus was 29 tingent on performance measures, time ing titan, has made it clear acquisitions are with trends as extreme shoe designs ebb. cents] based on a 2 percent comp [previ- vesting, and market conditions. Based on the agenda. among deals in 2010 was from the early days of his career, ously 4 percent].” on 164,420,238 shares outstanding as of the acquisition of integrated Distribution clergerie was a trendsetter with his chic, Urban cited a continuing increase feb. 28, senk owns 2 million shares of services, as well as significant licensing yet wearable styles. he was the first de- in markdown levels until it successfully common stock beneficially or 1.2 per- agreements with brands such as sean signer to make women’s shoes on a men’s navigates a fashion shift to seventies- cent of common stock. also noted in John, Jennifer lopez and Marc anthony, lasts, and is perhaps best known for the inspired styles, challenging compari- the proxy is keith Johnson’s compensa- rachel Zoe and french connection. collection of women’s lace-up oxfords he sons from last year’s “superb” first -half tion of $136,319 in fiscal 2011. Johnson loubier, who has been chief execu- launched in 1981. in 1992, he created an performance and margin pressure that is senk’s domestic partner and is em- tive officer at fashion houses escada and iconic raffia sandal, and two years later could be higher than what was expe- ployed by Urban. celine, already has ties to li & fung. in launched a line of winter sandals (de- rienced in the fourth quarter. results Urban’s stock on friday closed at 2009, he was named a director of its lux- signed to be worn with big, thick socks) — could also be impacted by an easter shift $30.34, up 51 cents, on the New York ury men’s wear retailer trinity. something that was revolutionary at the and the stubborn cold weather, given that stock exchange. loubier told WWD he would assume time. through the eighties and Nineties, the role of president of clergerie, with clergerie developed a strong following at the designer remaining involved in prod- top U.s. department stores, opening his first uct development and communications. stateside store in 1987. — Miles socha

beauty beat Origins’ Customer-Friendly Update Not all skiN care consumers shop by product type like cleanser and toner to the same — and origins is recognizing concerns like redness and aging. that with a new store design unveiled the new design reinforces the brand’s this month at south coast Plaza in costa scientific and natural messaging with Mesa, calif. beakers brimming with botanical ingredi- Dubbed nature’s laboratory, the de- ents used in product formulae. arches in sign by origins and New York firm lalire the ceiling are a nod to greenhouses, and March architects is an evolution of the science labs inspire brushed metal and estée lauder cos. inc.-owned brand’s white surfaces. slatted wood walls are lit store concept that broke through the skin from behind as if they were illuminated by care shopping clutter natural light. two decades ago with a origins plans to barrier-free selling en- renovate its Grand vironment. so-called central station store guides still walk freely within the next few around the store to months to outfit it with provide assistance, but the latest design com- design enhancements ponents, and future are intended to encour- renovations to the age customers to direct brand’s fleet of 92 U.s. their own shopping as stores will be made on well through a digital The retooled Origins. a case-by-case basis. touch-screen, ample the brand is carried in testing at a “Discovery Bar,” and visual 398 department store doors domestically merchandising displays highlighting best- and already has revamped the Macy’s selling products and key ingredients. counter at the Westfield century city “We are trying to give the customers shopping center in concert with the new different ways to shop and different sto- design. the design is also being rolled out ries around our products, creating zones internationally, where origins now has a within the store where she can play and 486 doors at a mix of freestanding, depart- investigate on her own, sample, try things, ment and specialty stores. the brand will read and create a customized experi- add approximately 90 more by the end of ence,” said Melissa knapp, vice president the calendar year. and creative director of origins and ojon. sales of skin care at estée lauder rose the effort to update origins retail 14 percent — the most of any category — started after Jane lauder, global presi- to nearly $1.03 billion in the second quar- dent and general manager of origins and ter ended Dec. 31, 2010. origins’s latest ojon, joined the brand in 2008 and worked skin care offering, launching this month, to reassert the brand’s identity as high- is Plantscription anti-aging serum, fueled performance, naturally based and eco- by an extract from the leaves and bark of logically friendly. at the time, the brand the african anogeissus tree. origins ex- conducted in-store customer interviews ecutives do not break out sales figures, but to evaluate how the products were being industry sources estimate that the product sold and merchandised, which led to a could generate $25 million in first-year re- shift from the selection being arranged tail sales globally. — Rachel BRown WWD monday, april 4, 2011 7 WWD.COM Sales in Japan Take Big Hit in March Retail IPO Market Stirring least. And while the worrying situation at an By AmAndA KAiser and overheated nuclear plant in Fukushima seems By eVAn ClArK Kelly Wetherille stable at the moment, it’s still unresolved. the cooling process could take months. retAil’s Up-And-COmers Are ready for their shot at the big leagues. tOKyO — Uniqlo, isetan mitsukoshi and those concerns and disruptions to daily life A number of quickly growing chains — including Charming Charlie, takashimaya reported double-digit drops in are likely to weigh on consumers’ minds. Francesca’s Collections and love Culture — are said to be talking to march sales, providing the latest indications “essential apparel items such as under- bankers about initial public offerings this year. selling stock on public of how much Japanese consumers are holding wear and outerwear are unlikely to suffer from markets would let owners cash in on their investments and give the back in the immediate aftermath of the earth- the fallout of the earthquake and tsunami. companies a new kind of currency to pursue growth. it will also give quake and tsunami disaster. however, accessories and other nonessential them higher profiles, as well as increased scrutiny. Uniqlo’s corporate parent Fast retailing wear such as swimwear are expected to see the timing looks good. retail stocks are not far from their all-time said same-store sales at the fast-fashion chain sales shrinking as Japanese consumers reassess high, years of downturn have opened up real estate opportunities and slid 10.5 percent last month. the comp figures their needs versus wants on the fashion front,” the recovery appears to be strengthening, with march unemployment refer exclusively to Uniqlo’s Japan operations. according to a recent report from researchers falling to 8.8 percent. the retailers planning ipOs are in good company: despite the drop, a Fast retailing spokesman at euromonitor. prada spA is said to have finally filed papers to go public in hong Kong said the company was encouraged by the de- the luxury goods business is considered par- by the end of June. mand for some key spring items like chinos, ticularly vulnerable. even before the natural Charles Chanaratsopon, founder and chief executive officer of bud- cargo pants and machine washable sweaters. disaster and ensuing nuclear crisis occurred, get-accessories retailer Charming Charlie, said the 100-door houston- isetan mitsukoshi said preliminary march Japanese consumers were shunning expensive based chain plans to open another 65 stores this year. he declined to sales at its nine isetan stores dropped 28.4 per- labels in the face of economic uncertainty. But comment on a public offering. cent and those at its 14 mitsukoshi stores fell 22.8 it’s also true that the Japanese market for those “i like to think we’re [opening] the most units in the country,” percent. similarly, takashimaya said sales at its products is becoming less important than it Chanaratsopon said. 14 stores in Japan slid 17.3 percent in march. the once was, as demand in China and other devel- that’s catnip to investors looking for growth and a sign of rejuvena- retailer specified that sales at some of its tokyo oping countries grows exponentially. tion for retail, compared with talbots, Zales and scores of others who locations dropped more than 30 percent. On thursday, lVmh moët hennessy louis instead have been abandoning space. J. Front retailing, which operates 21 daimaru Vuitton’s Bernard Arnault downplayed the busi- Fashion and accessories firm love Culture has 33 stores in 14 states, and matsuzakaya department stores, said march ness implications of the Japan disaster. “the with another 25 doors planned for this year. the company, which did sales dropped 9.6 percent. matsuzakaya branches impact should be quite limited, in spite of ev- not return a call for comment Friday, was founded by former Forever 21 in the tokyo neighborhoods of Ueno and Ginza erything,” he told shareholders. executive Jai rhee and Bennet Koo in 2007. the retailer plans to add saw their sales drop 29.6 percent and 28.9 per- meanwhile, retailers are coming to grips with 100 doors over the next three years. cent, respectively, it said. damage to their infrastructure. Uniqlo has a net- houston-based Francesca’s Collections sells apparel, accessories the Japanese department stores’ march work of 829 stores in Japan, and 160 of them suf- and gifts in more than 190 stores. private equity firm CCmp Capital sales data seem to indicate that business in fered some sort of damage and were closed at Advisors bought a controlling interest in the firm last year and declined other parts of Japan, excluding tokyo, is hold- various points. As of the end of march, 14 were to comment on an ipO. ing up better. J. Front said march sales at the still shuttered. One of those reopened Friday “Growth prospects are still king,” said erika maschmeyer, an analyst Osaka Umeda branch of daimaru rose 0.3 per- and seven more are due to open “soon,” accord- at robert W. Baird & Co., who worked on Vera Bradley inc.’s $176 mil- cent. takashimaya said its Osaka store’s sales ing to a spokesman. he said the Japanese chain lion ipO last year. late Friday, Bradley unveiled a plan to sell an addi- rose 0.5 percent for the month, while isetan has six stores in quake- and tsunami-affected tional 6 million shares for as much as $241 million. mitsukoshi said sales at its hiroshima store areas that are so badly damaged they won’t be “the summer could be a better time for companies to go [public] rose 1.3 percent. reopened at any point in the near future. because we’ll start to get more visibility into how the consumer’s going three weeks after the quake and tsunami hennes & mauritz took a particularly to react to higher costs for everything,” maschmeyer said. slammed northeastern Japan, life in tokyo cautious approach to its business in Japan higher prices for everything from cotton to oil to labor are expected is gradually resuming a somewhat normal after the quake. it shuttered its tokyo to cut into profit margins for most fashion companies, especially in the rhythm, although most retailers have cut back stores for days longer than some of its com- second half this year. on their operating hours to conserve electric- petitors like Gap and Forever 21. it also “in general, retail stocks are still up this year-to-date,” maschmeyer ity amid an energy shortage. rolling black- temporarily relocated its Japan offices said. “As long as we don’t see a massive pullback, the environment will outs in the surrounding areas of the city are to Osaka. — with contributions from be a good one [for ipOs].” expected to continue through the summer at Joelle DiDerich, Paris the s&p retail index gained 0.8 percent, or 4.17 points, to 519.92 Friday.

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BASel, Switzerland — explosive de- mand from china is set to fuel strong growth in the watch sector in 2011, but will leave the market increas- ingly polarized between large groups with the critical mass to expand and smaller independent players with less financial firepower. That was the message from this year’s edition of the Baselworld fair, the watch industry’s most important annual gathering, which ran from March 24 to 31. Swatch Group, the world’s larg- est watchmaker, said momentum remained strong in the first three months of the year after a re- cord 2010, a sentiment echoed by brands including chopard, hublot, TechnoMarine, Tag heuer and Frédérique constant. “So far, the first part of the year has been terrific,” reported cindy livingston, president and chief execu- tive officer of Sequel, which holds the licenses for Guess and Gc Watches. “in the Middle east, we have our is- sues, as everybody in the world does right now, but we’re getting very big growth in Asia with what’s happening with the chinese consumer, so that is counteracting the tension in the Middle east,” she added. The top end of the market was equally buoyant. hublot ceo Jean-claude Biver said he expected to close the fair with sales of 100 million Swiss francs, or $109 million, up from 85 million Swiss francs, or $80 million, in 2010. All dollar figures are calculated at average ex- change rates for the periods concerned. The brand sold hundreds of six-figure timepieces, in addition to a one- of-a-kind $3 million watch and two priced at $1 million.

{Continued on page 6}

Harry Winston Opus Eleven 2 WWDSTYLE MONDAY, APRIL 4, 2011 retail Smith and Tara Palmeri on the desk. “There’s an exciting future for gossip out there,” said Smith, Charlotte Ronson memo the editor. “There are ways that we’re going to develop further. Now we have the team in place.” Accepts Invitation Mohr did not return a request for comment. pad — ZEKE TURNER From Uniqlo WHAT A WRITE-AROUND: Wall Street Journal FAR AND AWAY: Those who ever wondered about managing editor Robert Thomson did not agree Tommy Hilfi ger’s favorite eatery in the world NEW YORK — Uniqlo’s Designers to an interview for a profi le written about him (Bukhara in New Delhi), Diane von Furstenberg’s Invitation Project is back this spring that is published in this week’s New Yorker. airline of choice (Air France) or Simon Spurr’s with Charlotte Ronson, Vena Cava The magazine’s media writer Ken Auletta also go-to hotel (The Dylan in Amsterdam) should and Costello Tagliapietra among the was denied interviews with Rupert Murdoch look no further than the latest Council of nine collaborations. and Dow Jones chief executive offi cer Les Hinton. Fashion Designers of America’s book by The three New York designer fi rms have In the piece, Auletta writes that Murdoch has Assouline. “American Fashion Travel: Designers each created limited edition capsule collec- long harbored a grudge toward him because of a of the Go” gives readers an insider view into the tions of six pieces for Uniqlo’s chain of more 1995 New Yorker profi le that was fairly critical travel preferences of CFDA members, and from than 850 stores worldwide, kicking off with of the media titan’s type of journalism. Among Donna Karan to Elie Tahari and Francisco Costa, Costello Tagliapietra on April 21, followed other things, in the ’95 piece Auletta referred to the designers have supplied travel photos and by Charlotte Ronson’s launch on May 5 and Murdoch as “coldly amoral” and a publisher who other mementos to illustrate their lists. The Vena Cava’s debut on May 12. Each piece re- “has rarely elevated taste or journalism.” foreword of the $45 book, which hits stores tails for $29.99, and the lines will be avail- “To advisers and friends, Murdoch makes May 15, is written by von Furstenberg, which able until May 21. plain that he remains angry,” Auletta writes in the makes sense, considering that she is one of Ronson, who also designs the I [Heart] Thomson profi le. “Whether following instructions the more globe-trotting American designers. Ronson collection for J.C. Penney in addi- or not, Thomson declined to cooperate.” The CFDA president has a good piece of advice tion to her own, namesake contemporary A Charlotte Ronson dress for Uniqlo. Auletta writes Thomson’s absence into the for those who can only dream about far-fl ung line, said Uniqlo was a natural fi t. piece and describes the Journal editor — who destinations. “Reading is another way to travel, “It made sense within the brand,” she said. “It’s worldwide — and through will be three years into the job next month to discover,” she said in the foreword. “Within a Asia, we already have a great business there.” — as someone who “likes to remain slightly book’s pages is the opportunity Ronson created six styles in two colorways and said she was keen to inject her hidden.” Auletta describes to take a trip, one that can be signature aesthetic into the pieces, with striped jersey dresses and dresses with Thomson’s incredibly further informed by maps.” It country fl oral prints. close relationship to seems like she already has a “Since it’s hitting in spring, we focused on jersey and knits,” Ronson said. “I the News Corp. head — book in mind that fi ts the bill. usually do a lot more wovens, so it was nice to work around lots of different jer- Murdoch is the godfather — MARC KARIMZADEH seys. The feel was a seaside retreat, with coastal countryside as well as nautical of Thomson’s two children infl uences and whimsical prints.” and both are raising their OFF THE RECORD, THEN ON: In addition to Ronson, Vena Cava’s Sophie Buhai and Lisa Mayock and youngest children as People managing editor Costello Tagliapietra’s Jeffrey Costello and Robert Tagliapietra, Zechia, Tiny Catholics — and the piece is Larry Hackett addressed Dinosaur, Suzuki Takayuki, Theatre Products, Nine and Double Standard headlined “Murdoch’s Best journalism students and Clothing are creating pieces for the Japanese retail chain’s Designers Friend.” (Wonder how Fox interested members of the Invitation Project. They join a group of past designers that includes Phillip News president Roger Ailes public — about 35 people all Lim, Alexander Wang and Alice Roi. will feel about that.) told — for 98 minutes, off the — MARC KARIMZADEH Auletta also details record at his insistence, on how morale at the Journal Thursday evening at Columbia newsroom is improving after University. There were free a few rough years of change copies of People StyleWatch under the Thomson and and People en Español up Tuleste Adds Handbags Murdoch regime. Several for grabs at the back of the lecture hall. Hackett editors — deputy managing editor Alan Murray, was joined by the editors of those titles,Susan IN LESS than four years, sisters economics editor David Wessel and Washington Kaufman and Ernesto Sanchez, respectively, and Celeste and Satu Greenberg, of Tuleste bureau chief Gerald Seib — all come to bat in People.com editor Mark Golin on stage. Market, have carved out a growing enthusiastic support of their leaders. Afterward, Hackett agreed to chat for vintage-inspired niche in the acces- “Rupert Murdoch just turned 80,” Auletta a moment on the record. He said the royal sories world, launching cos- writes, “and the original newsroom fear — wedding is without a doubt the biggest story for tume jewelry (fall 2007), then ‘What is Rupert going to do to us?’ — has been him at the moment. “I think as we get into the shoes (spring 2011) and now supplanted by: ‘What will happen when Rupert springtime and people are feeling better, there handbags (fall 2011). More Murdoch is gone?’” — JOHN KOBLIN is great interest in this couple. They’re good- than 100 stores carry their looking. It’s a fairy tale, right?” Hackett said. product, but the entire en- SPEAKING OF THE MURDOCH EMPIRE...: New York “He’s a good-looking guy, he’s Diana’s son, she’s terprise is still run from Post Page Six editor Emily Smith has tapped adorable, and I think it’s what we do very well.” the Greenberg’s Second a deputy, Ian Mohr, to join the paper’s gossip Hackett will need some fairy dust to Avenue apartment-studio desk as her number two. Mohr has close ties close his issue. The wedding will take place in New York, where the to the fi lm world as a former box offi ce reporter on Friday, April 29, in London, at 5 a.m. first floor has become a for Variety and New York bureau chief for New York time, and the magazine closes makeshift jewelry closet The Hollywood Reporter. “The reason I hired the following afternoon. If that weren’t tight with tables, racks and him is for his experience and his Hollywood already, Hackett’s hosting a party for the White fishbowls full of their contacts,” said Smith. “There’s obviously a lot House Correspondents’ Dinner in Washington, ongoing collections and of competition as far as reporting on Hollywood D.C., on Friday night. He hopes to be through new product — all of which is goes.” He also has close ties to the Post. cover selection before he heads south. “I’m shipped directly from there. Upstairs, Tuleste Market’s new fall handbags. Former Page Six deputy Paula Froelich set Mohr not coming back to New York, but I’ll be in their living room doubles as a design tone in the bag range, all of which is up with a job working as a producer for Elaine consultation with my guys here,” Hackett said. studio and showroom of sorts. Sketches done in leather — colorful blue and Goldsmith-Thomas (“Maid in Manhattan”). He said it has been business as usual in the and shoe samples line one wall, the burgundy, as well as black and brown Froelich also introduced Mohr to his wife, magazine’s offi ces since the ouster of Time Inc. handbag collection the other. A floral — with graphic hardware accents, Harper’s Bazaar senior features editor Elisa chief executive offi cer Jack Griffi n in February. mural hangs above the couch, which, including the rose gold rosettes that Lipsky-Karasz, a former WWD reporter and Post “John [Huey] and Maurice [Edelson] and Howard conveniently, served as the backdrop have become something of a signa- Sunday gossip columnist in her own right. [Averill] are running things, and it’s been fi ne,” for their fall look book. ture, and quilted details in the shape The hunt for a fourth Page Six staffer took Hackett said about the company’s interim “Initially we wanted to launch the of a T, for Tuleste. Smith nearly six months. “Page Six is a very chief executive triumvirate — cobbled together handbags fi rst, right after the jew- For now Tuleste is a small, indepen- specifi c job,” she said. “People think that gossip from Time Inc.’s chief fi nancial offi cer, editor elry,” said Celeste. “We wanted to dent operation, with the Greenbergs is easy. And while there are a lot of gossips in in chief and general counsel. “The fact of the branch out and do all accessories and and two freelancers as the only staff; town, you have to be a certain type of character matter is, many magazines at Time Inc. run eventually a cool clothing collection. they work with a business consultant and person to keep up with the pace and stay themselves — I mean, we’re in the style and But we wanted to make sure we had and two agents in Los Angeles. Neither focused.” Smith said she interviewed more than entertainment group run by Martha [Nelson]. the right manufacturer.” All of their sister has formal design training, but 20 people for the spot before fi nding Mohr. We know what we want to do for 2011 and, collections are produced in China by both spent years freelancing on the She has been operating short-staffed since she not that Jack disagreed with that, but we’re factories that they’ve found through editorial side of magazines and in the stepped up from the deputy role to succeed continuing with that plan.” word-of-mouth. The bags come in six production department for designers Richard Johnson last October when he switched Asked if he was invested in who would become styles that range from $295 to $495 including Jason Wu, Derek Lam and roles within the Post’s parent News Corp. and the company’s next ceo, Hackett said, “Sure.” and will be sold at Shopbop.com, Peter Som. “We want to be making moved to Los Angeles. “We have been under And did he think the next ceo will come, like which currently carries Tuleste’s more things,” said Satu, “but design some pressure,” she said, “but I didn’t want that Griffi n, from outside Time Inc.? “I don’t know, other collections. Like the jewelry is such a small percentage of our time to infl uence our decision on who would be the and I probably wouldn’t tell you,” Hackett said. and shoes, there’s a defi nite vintage right now.” — JESSICA IREDALE best person for the role.” Mohr joins Stephanie “Listen, I got to run.” — Z.T. WWDSTYLE MONDAY, APRIL 4, 2011 3

Dekkers’ bras are meant to innerwear be seen. Q&A Marlies Dekkers MARLIES DEKKERS, the Dutch lingerie portant to keep surprising your customers.… art, to poetry, to music, to choreography. For designer who put her bondage-inspired The Marlies Dekkers brand already had the example, my spring-summer 2011 collection brand on the map in 1993, will be intro- Never Out of Stock group, a selection of the is inspired by the Sixties and Seventies.… ducing her first diffusion label in July: most popular styles. Because of this, we The design of my lingerie goes through many Undressed by marliesdekkers. thought it would be a good idea to launch steps. Once the patterns and shapes have Dekkers got her break in fashion after Undressed by marliesdekkers and reintro- been designed, the best fabrics are chosen, winning a prize for best graduate design — duce favorite collections from our archives. the different sizes are fi t and then fi t again by Zeebelt Prijs — at St. Joost Academy in our models. We test the lingerie to see the Netherlands, for which she received how sustainable it is against washing, a grant from the Dutch government to Marlies sunlight et cetera. start her own company. Since then, she’s Dekkers become known for her racy black bras, WWD: Is there anything you dislike undies and bodysuits with peek-a-boo about intimate apparel? slits and cutout treatments. Her Marlies M.D.: Lingerie that is mass produced Dekkers brand is sold at 800 depart- without thought or original design. ment and specialty stores worldwide, This kind of lingerie is also of poor including Bloomingdale’s and Bergdorf quality, and the shapes and fi t of the Goodman, and at high-end boutiques in lingerie are bad because it’s pro- the U.S. as well as at 11 Marlies Dekkers duced quickly and cheaply.…I live and boutiques in Europe. breathe lingerie and design. It’s my Dekkers, whose fi rm generates esti- passion and always has been. mated wholesale and retail sales in ex- cess of $30 million, described the sec- WWD: What was your fi rst bra like? ondary Undressed by marliesdekkers M.D.: When I was just seven years old label as “cutting edge, graphical, young I asked my mother if I could have gar- and conceptual,” while the primary ters. Unfortunately, she said no.…My brand continues to be aimed at women fi rst bra was an uncomfortable train- who “love high-end, luxurious, exclu- ing bra like everyone else’s at that age. sive and refined” intimate apparel. That’s why I fi nd it so important to pro- CARIN VERBRUGGEN Bras in the diffusion line will retail for duce the perfect fi t and shape of a bra. $89 and undies will sell for $45, and the

Marlies Dekkers brand will continue to PHOTO BY WWD: Are there plans for viral cam- retail between $139 to $289. paigns, print advertising, marketing ven- Here, Dekkers shares her thoughts tures? The Space Odyssey on lingerie and her secondary brand. WWD: What makes your lingerie special? M.D.: We’re constantly thinking up new bra from Undressed by — KARYN MONGET M.D.: I don’t just design lingerie, I sell philos- ideas. Our most recent project is the Marlies Marlies Dekkers. ophy. I design from the female’s point of view, Dekkers magazine, which will offer a glimpse WWD: Do you feel it’s the right time to launch a and I want to make every woman feel special, into my life as a designer, my lingerie designs new brand — during a tough global economy? beautiful and self-confi dent through my lin- and the stories they tell, as well as fun and in- Marlies Dekkers: I believe it’s important for gerie, whether women wear it for the intri- teresting lifestyle facts, things every woman my brand to be continuously innovative. cate design or for the perfect fi t and shape. should know [about lingerie]. The magazine That’s why I think it’s the right moment for It’s the one message I hold true and fi nd im- will come out in May, and will be available my brand to be divided into two entities, one portant. Every piece has a story to tell. I fi nd in many countries in Europe. I hope we can being the total opposite of the other. It’s im- inspiration in everything around me, from expand and send the magazines to the U.S.

Maidenform’s The Dream Bra (left) and Flexees’ singlet. Maidenform Comes to South Africa ments, and are actively seeking high-quality shapewear. By BAMBINA WISE “The emergence of shapewear globally has reached the South African consumer and there is an increasing demand for effective JOHANNESBURG — Call it an American takeover. shapewear, which achieves for the body what a correctly fi tting Late last year, Calvin Klein Underwear re- and functional bra does for the bust,” said Bebb. turned to the South African retail scene after an While Bebb acknowledged Maidenform faces healthy compe- absence of 14 years with a high-profi le launch that tition in the marketplace alongside similarly priced brands such included an all-male modeling competition whose as La Senza, which is part of Limited Brands Inc.’s portfolio, as winner would be the face and body of Calvin Klein in well as Calvin Klein Underwear, which is owned by The Warnaco South Africa. Group Inc., he believes that “from a product form, fi t and func- In February, Maidenform made its debut at select tion point of view, it has no real like-for-like competitors.” Edgars and Stuttafords department stores and linge- The well-known T-shirt bra by Maidenform offers en- rie speciality stores throughout the country, with 10 hanced benefi ts with its advanced cup technology, which doors for Maidenform and 27 doors for the Flexees by varies between air pads and gel pads. Maidenform shapewear label. “Attention to detail and superior fabric choices make The Cape Town-based company Brand ID acquired this a luxurious bra collection. It is the Ferrari of T-shirt the South African franchise for Maidenform and bras and push-up bras,” he said. Flexees. Its intimate apparel portfolio already in- Flexees, on the other hand, “is in a category of its own, cludes Elle Macpherson Intimates and the Dutch lin- with unique items.” gerie label After Eden, which were both introduced With fi gure-solving products for every problem area such as to the market late last year. tummy, hips and thighs, Bebb anticipates specialty items such Lucille DeHart, chief marketing officer at as a high-waisted half slip to smooth midriff bulge, all-in-one Maidenform, said the company “sees tremendous op- bodysuits for allover control, and a Wear Your Own Bra full portunity in newer markets such as South Africa.” slip, which has a scooped out neckline that allows a woman to “We expect shapewear to be a strong category in wear her favorite bra, will be hits with customers. this market, just as it has become one of the fast- “The response has been overwhelming from store buy- est-growing segments within intimates throughout ers and customers. It [shapewear] is such an intelligent the world,” said DeHart. product, and it delivers on its promise. The consumer, Wayne Bebb, chief executive officer of Brand once she has tried the product, has no resistance to the ID, said the time was right to launch Maidenform and slightly higher prices because she is paying for what she Flexees in the South African market. He said women is getting, a superior product,” said Bebb. across all demographics are beginning to recognize the Prices for Flexees range from $65 for a control brief to importance of well-made and supportive foundational gar- $130 for the bodysuit. 004 WWDSTYLE xxxxxxxxx,monday, april xxxxxxxx 4, 2011 xx, 2011 accessories CFDA and Vogue Eyewear Aid Designers in Sunglass Effort NeW YORK — the council of Fashion Designers of america and Vogue eyewear are supporting brands that have their sights set on optical eyewear. For the second consecutive year, the cFDa partnered with the eye- wear label on a program under which designers Monica Botkier, Rebecca Minkoff and Yeohlee teng were chosen to conceptualize and create sun- glasses to be sold exclusively at Sunglass hut come September. “We started the program as a business service network. We wanted to create a design opportunity where the entire membership is invited to submit and participate and provide work and licensing opportuni- ties for designers,” cFDa executive director Steven Kolb said of the Vogue eyewear/cFDa capsule collection initiative. But there was a ca- veat: applicants must have had no previous background, experience or licenses in the category, and have to be existing members of the cFDa. ericksen kyle Inside Be & D’s by Botkier, Minkoff and teng were chosen from a pool of nearly 40 ap- New York City atelier. plicants by the luxottica product development team, Vogue eyewear’s parent company, who will work closely with each to bring their visions photos to fruition, including packaging design and the launches. “the three designers were selected by a committee of luxottica executives between Be & D’s New Space Age Milan and New York, includ- ing experts from design, buying, the tricolor wooden floors were no acci- marketing and retail. We looked By Rachel StRugatz dent, although the effect is so subtle it’s easy for concepts that exemplified the to miss unless pointed out. carefully parti- Vogue eyewear brand and that NeW YORK — Be & D’s Steve Dumain has tioned into three sections, much like the ate- offered a new perspective, a new managed to turn a Midtown Manhattan office lier itself, the office has black wooden floors, twist, on sunglass design,” said space into an atelier that has the quadruple the production portion has brown, and the Daniela Policastro, global brand function of a business, production, factory factory has scarlet. manager at Vogue eyewear. and gallery space. at a time when actually producing one’s although last year’s contest the seven-year-old brand’s headquarters product domestically is a practice that’s didn’t have a specific theme, this in New York city’s garment District was nearly extinct, Dumain said the handbags year, the cFDa wanted to extend the brainchild of founder Dumain, who also are hand-made in the red-floored workspace the concept of quality and good serves as the 10-employee company’s cre- (as well as in two other local factories with dressing all over the country. to ative director. Perhaps best known for the Be & D sewers and handworkers trained convey this, each of the eyewear studded and ruffled handbags often seen on in the higher-end manufacturing process). styles will be based on a differ- the extremities of celebrities, the brand’s Staff members even affix each and every ent city for inspiration: New York taking a more subdued approach in a palette stud, grommet and buckle by hand. up to 250 city, Miami and los angeles. of soft taupe, beige and navy (with the excep- handbags can be produced per week. Monica Botkier’s moodboard. Minkoff — responsible for cre- tion of a leopard print) in its current spring “the reason to keep the production here, ating the New York style — said and upcoming fall collections. they retail as apposed to Italy, for me, is that we have the process required more research than usual. the handbag-turned-ap- from $55 for a cosmetic pouch to $1,085 for the capabilities in america to improve luxury parel designer described the “Bowery” design as an updated Wayfarer, a handbag. there’s an expanded selection of manufacturing and make small, special pro- and since she’s known to be heavy on hardware and embellishment, small leather goods including wallets, belts ductions,” Dumain said. “having the factory wearers can expect plenty of Minkoff ’s signature metal elements. and cosmetic and iPad cases. Shoes were right here in our office and nearby keeps us “It’s about energy, style and independence. each person here [in in direct contact with quality control, and New York city] has a very distinct style and look, and I feel like people Steve Dumain we’re able to look over every small detail.” want to stand out without going too over the top. this is what this style the Be & D founder — whose career in- represents to me.” cludes former stints as a sculptor, screen- Fellow handbag designer Botkier said the pair she crafted is quint- writer and spin instructor — said he’s always essential Miami. From the flaming red frames to the customized gold been inclined to gravitate accents and oversize, round silhouette, Botkier said the sunglasses em- toward work creative in body the vibe of the city. according to the designer, “It’s just enough nature, and his latest glamour. You’re definitely making a statement but it’s not over the top. endeavor for the brand It’s something you can accessorize with day to day.” takes the artistic process teng’s “young and sexy” view of los angeles led her to design a flashy, futuristic cat-eye style with an ombre glass effect, but it was an- thropology and organic shapes that really served as her inspiration. “I actually blew up images of the girls from my runway show and did the initial sketches [for the sunglasses] based on the shapes of their faces,” teng said of her design process. Kolb said the ultimate goal of the program is for the designers to eventually go out and do something on their own in the category, either directly with luxottica or somewhere else. — R.S.

added to Be & D’s offerings three years ago, and sandals, pumps and boots retail Handbags from from $225 to $695. Cavalcante Names Ippolita CEO the spring collection. Dumain said of the new space that “the IPPOlIta haS PROMOteD Joe cavalcante to chief executive officer original vision was a creative open space a step further. after dabbling with custom- of the fine jewelry brand, which marked its 10th anniversary last year. with our factory as the centerpiece of all ization and personalized handbags to test the cavalcante, who joined the company in 2005 and became president parts of the company, from creative through waters, the brand will now offer a made-to- in 2007, previously held positions at INg Barings (now aBN amro) shipping goods out around the world. the gal- order service. Options range from designing in mergers and acquisitions, as well as at the u.S. subsidiary of the lery is meant to be something that can change a completely custom creation to remaking a Japanese trading company Itochu. throughout time as we grow and change, but bag that’s out of stock, or even just tweaking “We considered many extraordinary candidates during the search the fundamentals of what we make there — an existing style with different colors, ma- for our new ceo but Joe’s qualifications and contributions to the com- american luxury — will remain a constant.” terials or hardware. While it’s price upon pany ultimately made him an ideal candidate for the role,” said Brian Dumain tapped architect friend Nalina request, customization starts at about $300 Knez, Ippolita’s chairman and founding partner of private equity group Moses to help create the 7,000-square-foot more than the average base price for that castanea Partners, the brand’s main investor. “he’s a smart, indepen- space. Visitors first encounter Dumain’s bag silhouette. dent thinker who’s passionate about the brand and has played a signifi- eclectic art, including trong Nguyen’s “lady But there’s still another category of the cant role in the company’s growth.” of the luke,” a lit-up neon pink replica of industry that Dumain is determined to con- under cavalcante, Ippolita has increased distribution to include de- luke Skywalker’s light saber welded to the quer, and that’s men’s accessories. the col- partment stores such as Bergdorf goodman, Bloomingdale’s, Neiman ground, as well as bronze pillars from the lection’s men’s offerings will be unveiled this Marcus, Nordstrom and Saks Fifth avenue. 1800s and ultra-high ceilings. summer and will hit stores for spring 2012. WWDSTYLE XXXXXXXXX,WWDSTYLE MONDAY, XXXXXXXX APRIL XX, 4, 2011 005 ‘True Blood’ Spawns Line of Handbags

NEW YORK — Hammitt Los Angeles drew in- together this new collection,” said Hammitt’s spiration from the hit vampire TV show “True Hammitt’s Zuma bag. chief executive offi cer Tony Brockton. “It’s the Blood” for its latest handbag collection. Below: Hammitt for fi rst time we’ve done a co-branded line.” The fi ve pieces in the Hammitt for True True Blood’s “Eric” bag. Named after some of the show’s supernatu- Blood line, which will retail from $395 to ral stars and their after-dark hangout, the bags $675, were created in collaboration with HBO are available in silhouettes ranging from the to coincide with the premiere of the series’ $395 “Sookie,” a structured, dove gray suede fourth season this summer. The black and gray design with a metal clasp, pleated detailing leather and suede palette — although void of and multicolored rivets, to the more fl amboy- the bite marks and blood-spatter patterns one ant “Lafayette,” a $675 metallic leather doctor might expect to fi nd on vampire-themed bags bag with a stamped alligator pattern that’s cov- — is rife with mixed metal accents, hardware ered in studs. and fake fur. There’s even a deep red silk lin- While the evening-sized, black leather $445 ing found inside several of the styles. “Eric” is perhaps the most wearable design “HBO approached us to combine the with its shoulder strap and bullet-shaped Hammitt designs with the DNA of their number- studs (since Eric Northman’s known to have one show, and this excited my design team to put “taken bullets” for Sookie) — the most true- to-character bag is probably the $485 “Alcide.” The gray shoulder bag is based on the show’s resident good guy werewolf, which is conveyed via its fake fur fl ap and a life-size, screen- printed wolf image on the inside lining. Five-year-old brand Hammitt is carried in nearly 100 stores worldwide, and is almost ex- clusive to smaller boutiques (with the excep- tion of several Bloomingdale’s locations). The predominantly black, cognac and gray leather goods, adorned with varying sizes and patterns of the brand’s signature fl attened metal stud pattern, are handmade in Los Angeles. The designs are inspired by the lifestyle in the city, said Brockton, with collections and styles named after streets or signifi cant locations such as the Westwood, the brand’s signature leather duffel, and Brentwood, a traditional satchel. Prices start at $395 and go up to about $785. A larger, carry-on type bag retails for $1,250. — R.S.

AN INITIATIVE OF THE COUNCIL OF FASHION DESIGNERS OF AMERICA

UNDERWRITTEN BY

The {CFDA FASHION INCUBATOR} TO BE ELIGIBLE FOR CONSIDERATION, CRITERIA: EACH CANDIDATE WILL BE ASKED {CFDA FASHION INCUBATOR} APPLICANTS MUST: TO PROVIDE SPECIFIC INFORMATION TO SUPPORT is pleased to announce an > Be a designer of demonstrable talent, i.e. HIS/HER APPLICATION, INCLUDING: OPEN CALL for qualified fashion have garnered substantial editorial coverage, > A biographical statement, which includes a designers who are interested in and have support (orders) from top retailers; summary of the applicant’s design career; short-term > Be American or have established a primary and long-term business goals and objectives; growing their business. A selection design business in the United States; > Outline of existing business, including: process by industry experts will > Be in business for a minimum of 2 years; • Current organizational structure; (employees/functions filled) > Have professional staff, paid and/or volunteer, result in (10) designers receiving • Sales reports for the past four (4) seasons; which can devote the time and effort that are a two-year lease for a reduced-rate, required to accomplish the stated aims of an • List of partners, investors, consultants, applicant’s design career plans; outside advisors and professional firms state-of-the-art design studio. that the candidate works with; In addition, recipients will also > Be able to occupy {CFI} design studio space • Current brand positioning, and where the no later than May 1, 2012; relocation expenses, candidate envisions his/her brand in the future. be granted business mentoring if applicable, will be the responsibility of the tenant. > Candidates will be asked to submit a portfolio on a monthly basis. Guest lectures Request and submit a completed presentation containing work from their Spring application by the due date: June 8, 2011 and Fall collections, which may include look books, and seminars will address topics Contact: Johanna Stout sketches, editorial photos, ads, other press, etc. such as branding, marketing, [email protected] or (212)768-5712 > Candidates will also be asked to submit two (2) production, sales, finances and letters of reference from editors, retailers and other fashion industry professionals, with whom they legal issues. have a close, working relationship. 6 WWDSTYLE MONDAY, APRIL 4 , 2011 accessories A Good Time for the High End

{Continued from page 1} “The fact that we are selling so many expensive pieces is a clear sign of recovery, because the average price is generally the fi rst thing to fall in a crisis or recession, and it is also the fi rst thing to rise when the market picks up,” Biver noted. James Seuss, ceo of U.S. watch retailer Tourneau, said his budgets were up following a double-digit sales increase in 2010. “I do think it will be a good year for watch sales, and we want to make sure that we have inventory there to meet that demand,” he said. “There is a lot of demand coming from China, so certainly availability from some of the brands may be an issue later on in the year.” Seuss said standout novelties included the new Rolex Explorer II, Patek Philippe’s 5270 Perpetual Calendar Chronograph, Breguet’s Classique Hora Mundi and the Zenith Elite Class Moonphase Grande Date. Many executives saw the industry heading for record sales in 2011, though a number were concerned about the potential consequences of political turmoil in the Middle East and the earthquake and tsunami in Japan. “Japan is a big market for us and we will suffer from that,” said Mounir Moufarrige, ceo of U-Boat. “I’m very cautious. I wasn’t expecting last year to be what it was, and I’m not expecting to repli- cate last year’s performance.” Fawaz Gruosi, ceo of de Grisogono, said spreading unrest in Arab countries would further push up the cost of raw mate- rials such as oil, gold and diamonds. “Since 9/11, the economic, fi nancial and psychological stability of the world has changed enormously,” he noted. A major hurdle facing many brands is a bottleneck in the supply chain, as makers of move- ments, cases, bracelets, hands, dials and other components struggle to catch up with the market’s stronger-than-expected rebound from its worst crisis in three decades. Rolex Oyster Perpetual “It’s a nice problem to have, but Cosmograph Daytona it’s defi nitely the biggest challenge in the coming years,” said Marc Hayek, ceo of Blancpain, Breguet and Jaquet Droz, three of the prestige brands within Swatch Group. For many watchmakers, it means not only investing in extra staff and new production facilities but taking control of key suppliers in an effort to become more self-reliant. Breguet plans to complete an additional facility in L’Orient — part of a total planned investment of 66 million Swiss francs, or $71.6 million — by the end of 2012. In addition, it has integrated luxury and prestige watchcase maker Manufacture Favre et Perret SA, also owned by Swatch Group, in order to increase effi ciencies, and plans to hire be- Boucheron tween 50 and 70 extra staff this year, which would bring its total Hera Tourbillon workforce up to 1,000. bracelet watch “It’s something that is not easy because we want no shortcuts in any way, and to stay 100 percent faithful to the quality and to Glashütte the way we make the watches,” said Hayek. “A lot of craftsmen are really artists. It’s Senator years of experience to get to a certain level, and that’s a problem.” Perpetual For companies outside Swatch Group, the supply issue has become especially ur- Calendar gent, since Swatch ceo Nick Hayek regularly threatens to stop providing the market with components, though his group’s dominant position means such a move has to be mechanical watches. approved by competition authorities, a lengthy process with no clear deadline. But such expansion comes at a price. Philippe Mougenot, president of Chanel’s watch and jewelry division, said the com- “Obviously, we’re going to need investment,” he said. “It is not impossible that we pany would double production capacity and staff at its headquarters in La Chaux-de- will agree to open our capital to another investor, but with the aim of remaining an Fonds, in Switzerland, by 2015. independent brand.” Hublot revealed that it had bought Profusion, its supplier of carbon fi ber parts Other privately owned fi rms excluded the prospect of selling all or part of their hold- and components, while Corum has acquired the technical know-how of Les Artisans ing, in the wake of luxury group LVMH Moët Hennessy Louis Vuitton’s recent $6 billion Horlogers, a fi rm that specializes in the development of complicated movements, after purchase of Italian jeweler Bulgari. Les Artisans fi led for bankruptcy in January. Thierry Stern, chairman of Patek Philippe SA, said that even though he was strug- Co-founder Laurent Besse and four of his staff will join Corum’s existing R&D lab gling to make enough movements to equip his annual production of 45,000 timepieces, and help it develop its own movements for the Admiral’s Cup line, as part of a planned joining forces with a bigger player was out of the question. expansion that includes building new facilities by 2013, said Antonio Calce, Corum’s “They do not have the know-how to produce those kinds of pieces. So for me, what president and ceo. is important by staying independent is also that I can do what I believe is right for my “We hear what is happening at Swatch Group, and we see brands snapping up sup- brand and what I believe is right for my customer,” he said. pliers because they need extra capacity, so we also have to integrate skills in order to “And I can choose to focus more on service and less maybe on marketing. This is not secure the business,” he explained. possible when you are inside a group where you have shareholders. They don’t give a Corum already produces its signature Golden Bridge movement, launched in damn about after-sales service,” he added. 1980, and Calce says that type of proprietary innovation is key to future growth as Karl-Friedrich Scheufele, co-president of Chopard, said the brand was pursuing ver- consumers become increasingly well informed about the components that go into tical integration on the watch side in order to guarantee its independence. “The desire WWDSTYLE monday, april 4, 2011 7

Omega Speedmaster Co-Axial Hublot MP-02 Chronograph Key of Time

ingly investing in brick-and-mortar in order to showcase the full range of their assortment and tell the history of the company. Omega, for instance, plans to add 30 to 35 units this year to its existing net- work of 100 directly operated stores, including 15 in the U.S. alone. “Where we have a good partner, we will continue with them,” said Urquhart. “But I think a lot of the old style of selling watches, it’s really gone with the wind.” Swarovski is also making a big U.S. push as part of an effort to reposition the brand from a producer of ornamental objects to a fashion-driven watch and jewelry brand. It is on the lookout for flagship locations similar to a recently opened unit on Michigan Avenue in Chicago. “We do have a store on Fifth Avenue in New York which is commercial- ly very, very successful, but it’s a small location,” said Robert Buchbauer, a member of the executive board at Swarovski. “If something of the right size pops up close to this one, or somewhere else in a prominent spot on Fifth Avenue, we would make a very quick decision and go there.” Raymond Weil, which took over its U.S. distribution in 2009, said the biggest challenge there was helping the brand evolve with the times. Breguet Classique Hora Mundi “The U.S. market has changed tremendously over the last year,” said president and ceo Olivier Bernheim. “The market has shrunk by 50 percent and is now re-expanding, and we have a large cus- is clearly to stay the way we are,” he said. tomer base coming up, ready to buy watches — young profession- Chopard this year celebrates the 15th anniversary of its als, 25 to 35 years old — and they have a different approach to manufacturing arm, which produces some 4,500 to 5,000 what they would like to buy.” movements annually for high-end LUC timepieces. It also Meanwhile, Versace is hoping to open a fourth special- unveiled the Imperiale Full Set, its first watch to host a ized watch and jewelry store in Paris by the second half of movement from its Fleurier Ebauches workshops. the year, on the heels of Rome, Dubai and Beijing, accord- Chopard expects Fleurier to produce 20,000 move- ing to ceo Gian Giacomo Ferraris. ments by 2014 versus 3,000 in 2011, Scheufele said. The The openings are part of his overall plan to have accesso- company produces some 80,000 timepieces annually. ries account for 50 percent of group sales within the next two or “Introducing a new caliber movement is one thing, being three years, from around 40 percent at present, thanks in part to able to produce 1,000 pieces in a year with perfect the introduction of the more accessibly priced Versus line of watch- quality is another thing and 10,000 is yet another com- Patek es, launched in Italy last September. pletely different ball game. So I think we are pretty Philippe “There is still a lot of potential, especially with Versus, because much ahead of the pack,” he said. Ladies First Versus will become a mass product,” Ferraris said. Harry Winston is also investing heavily in its Split Seconds Indeed, the lower-priced end of the market is likely to benefit from watch division. The fine jeweler, which has won Chronograph global economic turmoil. kudos in haute horlogerie for its Opus series, is tak- “We are in a period of uncertainty. We have to be adapted to that. The ing dial production and case making in-house and long trends, long cycles are no longer there,” said Jacques-Philippe Auriol, plans to launch its own movement within three years, according to ceo of TechnoMarine. ceo Frédéric de Narp. “Consumer behavior is changing a lot. At the end of the day, indulgence “I would not be surprised to see soon Harry Winston doing 50 per- is always the driver of high-end consumption. So the impact probably is cent of its entire activity with watches. Right now, it’s a quarter,” de that people will spend their money differently. They will still self-purchase Narp said. “We feel very strongly that we can develop the brand without to reward themselves, with maybe, in the watch industry, a price point being part of a luxury group. This is what we are proving.” which will be lower,” he added. Even brands belonging to large groups are growing their in-house With that in mind, many brands drew inspiration from the past with heri- expertise. tage aesthetics and classic watches that will be marketed as heirloom pieces. Omega, part of Swatch Group, is betting on the continued development of its Co- Cody Kondo, group senior vice president and general merchandise manager at Axial escapement technology. This year, the brand introduced the first in its family of Saks Fifth Avenue, cited Zenith and Hermès as standouts in this category. The latter in-house movements to incorporate a chronograph function in the Speedmaster and carved out new territory with its Arceau Time Suspended, a mechanical watch that Seamaster collections. allows the wearer to stop the clock and pick up again at the accurate time. “As of 2012, every mechanical Omega watch will be Co-Axial,” said Omega ceo Kondo also praised designers for producing attractive and innovative pieces de- Stephen Urquhart. “We’re talking here about 400,000 to 500,000 movements a year. This spite the pressure of increased raw material costs, which has forced many brands to is not like some little niche production.” raise prices. Jean-Christophe Babin, ceo of Tag Heuer at LVMH, said it is looking to rapidly in- “Innovation was just as important as tradition, with cutting-edge mechanics from crease production of its in-house Calibre 1887, which will become available in the U.S. Chopard’s LUC and fashion-forward technology from Chanel and Dior bringing exciting in May, to 100,000 units. While group brands set their strategy independently, he said modernity,” he said. the arrival of Bulgari into the fold could yield some interesting synergies. Alongside a strong showing of retro-inspired collections, such as Hamilton’s Sixties- “If we can manufacture some movements or cases for Bulgari, or if we can become inspired Thin-o-Matic range, brands tapped into materials like ceramic, carbon and better at retailing thanks to Bulgari’s experience — we will have 140 [Tag Heuer] stores titanium for a more sporty, futuristic look. by yearend compared to their 300 — in short, if there are best practices, clearly it would Black and white remained the key color story, as epitomized by de Grisogono, which be marvelous to integrate this kind of experience,” he said. celebrated the 15th anniversary of its first black diamond jewels with re-edited versions Indeed, retail has become an important battlefront for brands, which are increas- of seven of its most emblematic timepieces in a collection dubbed “Black Forever.” Junior2.5x7 (right)

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THE CROSBY ST. HOTEL in a passed tray. “He just has that New York offers a lot to those guttural-sound-provoking movie- looking to host an event. It boasts star quality: Oomph!”) posing its own private screening room, with co-stars Michelle Monaghan (in an excellent staff, attractive a teal Roksanda Ilinic cocktail surroundings and even a lit- dress) and Jeffrey Wright. Jon from-within papier-mâché boar Kortajarena caused a stir with in the entryway. Despite all this, his cheekbones, as is his wont, the mood at Thursday night’s but left the party with a female Cinema Society-sponsored friend within the fi rst hour. screening of “Source Code” Due to the layout of the space and subsequent after party was and the seemingly unshakable decidedly downbeat. Perhaps it human tendency to gravitate was the week, which had been toward those with bold-faced long and eventful, or the weather, names, partygoers clustered which was drippy and cold and clotted around armchairs, (even for March), or the guest couches and protruding wooden list, which hosted unexpected shelves of tea lights, creating a arrivals like Lindsay “Just Lindsay” sort of party gridlock/human- Lohan, who lurked near the red moat around Monaghan and carpet before the fi lm began Gyllenhaal. Cynthia Rowley and Bill and bolted immediately after it Powers, who had been to a Marilyn ended, shielding her face with Minter exhibition earlier that Cynthia Rowley Michelle Monaghan one hand in the manner of stars evening, sensibly spent most of and Jake Gyllenhaal and Bill Powers of yore, like Grace Kelly or Jackie the party in the more sparsely Onassis. Perhaps it was the populated bar area. “I loved the Jon Kortajarena Karen Reed and Marta Morilla weight of more pressing issues movie,” Rowley enthused, “but in the world. Jake Gyllenhaal, one then again, Jake [Gyllenhaal] Elson Krakoff of the fi lm’s leads, repeatedly saved my hometown [Chicago], referenced the recent earthquake and I’m a sucker for that…so disasters in Japan when speaking I was happy.” Albert Hammond to press. “It’s just hard to do this Jr. did a quick tour around the type of thing, knowing what’s ’do, dodging aforementioned going on in Japan,” Gyllenhaal furniture and fan-girls alike explained, before leaving the before trading phone numbers red carpet to introduce his most with Gina Gershon and making way recent blockbuster. for the exit. Russell Simmons had Not everyone let current a tête-à-tête with John Varvatos events get them down, as the near a late-arriving James Marsden, hotel’s subterranean level who made a beeline through the fi lled with revelers eager for crowd for Karen Elson, grabbing the Coach-sponsored after her shoulders and crying aloud party, among them: Howard and in a campy tone: “It’s Karen!” Beth Stern, Jesse Tyler Ferguson, In the deluge on the street Seth Meyers, Rufus Wainwright, outside, “RadioMan” Craig Schwartz Pablo Schreiber, Lorenzo Martone (a highly recognizable hanger-on and John Demsey. The stars of on Manhattan fi lm and television “Source Code” were present and sets) wondered aloud about some accounted for, with the heavily of the revelers. “That Lohan girl lusted-after Gyllenhaal (“He is wouldn’t take a picture with me,” impossibly cute,” one partygoer Schwartz complained. “So why’d squealed, midselection of a bite- she come to this damn thing?” size Kobe beef slider from — ALESSANDRA CODINHA

eye Lauren Darcy Miller Bush Nussbaum and Love, Sweet Love Dylan Lauren IT WOULD BE SILLY to expect Peter Callahan were similarly on theme, anything less than a sugary sweet with puff-pastry rings topped with a spectacular for candy maven Dylan dollop of caviar and crème fraîche Lauren’s bridal shower on Thursday instead of a diamond, and individually night. Hostess of the fete, Darcy Miller sized paper cones of frites decorated Nussbaum, and the editorial team with smiling stick fi gure versions of of Martha Stewart Weddings went Lauren and her fi ancé, Paul Arrouet, the extra mile for the bride-to-be: surrounded by candy pink hearts. The

invitations arrived in the form of bride to be was resplendent in a white NICHOLAS HUNT/PATRICKMCMULLAN.COM strawberry-chocolate bars (embossed dress, with her mother, Ricky Lauren, at BY “D [heart] P”) nestled in a cardboard her elbow. box filled with pink tissue paper Tor y Burch held court in a corner and confetti, with the pertinent near the dining table (which hosted information printed on the candy giant glass containers in the “D bar’s wrapper. Upon entry into [heart] P” of the invitation, fi lled with

the party, guests were offered long pink candy and small plastic bags STEVE EICHNER; KRAKOFF

candy necklaces next to a perfect for guests to fi ll up and take home) BY display of pulled taffy, jelly beans, near Kelly Bensimon and Sylvia Weinstock. hard candy and vintage-looking Lauren Bush, engaged to marry Dylan’s lollipops, all pink. A further foray into brother David, was on hand, as were Nussbaum’s apartment showed that Alina Cho and Cristina Cuomo. every available surface was covered The proffered goodie bags proved in sweets — even the flora on the yet another source of saccharine sa- mantelpiece was made of marzipan. tiation, holding personalized tubes of A shelf on the adjoining wall hosted a jelly beans (in yellow and three shades DONNA NEWMAN; SOURCE CODE DONNA NEWMAN; SOURCE selection of hard candy engagement- of pink), a candy necklace with an em- style “diamond” rings that would have bossed leather jewelry box and one’s fit in better at a Cartier boutique than very own ring pop — not quite Dylan’s by a drugstore checkout line. sparkler, but close enough. Cristina Cuomo, Hors d’oeuvres lovingly crafted by — A.C. Sylvia Weinstock and Tory Burch. LAUREN PARTY PHOTOS BY LAUREN PARTY