White Sniffed out the Best Deals During the Tail End of the Back-To-School Selling Season

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STEVE JOBS’ IMPACT ON RETAIL. RIVER VIEW PAGE 4 BAR REFAELI WAS AMONG IMAGES THE CROWD AT THE WHITNEY GALA — WHICH WAS AT PIER 57 ON THE HUDSON RIVER. BLOOMBERG/GETTY

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HOLIDAY OUTLOOK Strong Comps Fail To Ease Concerns

By ALEXANDRA STEIGRAD

SEPTEMBER COMPARABLE SALES may have been better than expected, but weren’t spectacular FRIDAY, OCTOBER 7, 2011 Q WOMEN’S WEAR DAILY Q $3.00 enough to convince analysts that the holiday season WWD is going to be anything but tepid. That means the bitter battle for market share is expected to continue as retailers vie for the at- tentions of consumers amid the weak economy and high unemployment. Overall, September sales were characterized by most analysts as “relatively strong” and driven by luxury spending and promotions as consumers White sniffed out the best deals during the tail end of the back-to-school selling season. Luxury sales rose 10.4 percent in September, driving total comps up 5.5 percent, according to the International Council of Shopping Centers, which was projecting an overall increase of 4 percent to 5 percent. In the luxe realm, Nordstrom Inc. comped On! up 10.7 percent and Saks Inc. logged a 9.3 percent What began with the idea of a increase for the month. Investors, eager for any signs of hope, jumped at gray jogging suit turned into the sales results and pushed the S&P Retail Index one fierce Lanvin lineup. Alber up 2.1 percent, or 10.60 points, to 509.62. The Dow Elbaz worked it with strong, Jones Industrial Average rose 1.7 percent, or 183.38 points, to 11,123.33, and markets in Europe showed pronounced shoulders, even stronger gains on a British plan to boost that graphic cutouts and a nation’s flagging economy and efforts to shield stripped-down chic, as European banks from the continent’s sovereign debt crisis. shown with this crepe But retail experts aren’t getting carried away with look in all white — a optimism and are keeping a wary eye on the upcom- color that proved to ing holiday season. “I am still a little bit concerned about underlying be one of the biggest traffic weakness,” said Joel Bines, managing director trends on the spring at AlixPartners’ global retail practice. “In this envi- runways. For more, ronment, with higher prices, you wonder how willing see pages SEE PAGE 16 10 and 11. IN WWD TODAY Obama Weighs in On Currency Bill PAGE 2 TRADE:President Obama entered the fray over Chinese currency legislation, expressing concern about the bill’s compliance with international trade rules.

Sephora’s ‘Sensorium’ L PAGE 6 BEAUTY:Sephora and Firmenich have opened a 3,700-square-foot installation in New York’s Meatpacking District to help introduce consumers to the world of fragrance.

Ferré On the Block Again? PAGE 4 FASHION:Speculation is swirling in Milan that Ferré could be up for sale once again as the current owners make major changes at the fashion house. PHOTO BY GIOVANNI GIANNONI 2 WWD FRIDAY, OCTOBER 7, 2011 WWD.COM

Obama: China ‘Gaming’ Trade System CFDA Letter Reasserts

raise the tax threshold he recommended for families By KRISTI ELLIS making more than $1 million a year from $250,000 in Position on Show Dates order to pay for his jobs stimulus plan. WASHINGTON — President Obama on Thursday The China currency legislation has strong bi- By MARC KARIMZADEH entered the fray over legislation targeting China’s partisan support in the Senate. Its central com-

undervalued currency, stating that the Chinese ponent would direct the Commerce Department NEW YORK — The Council of Fashion Designers of America is manipulate the yuan and intervene in currency to treat undervalued currency as an illegal export staying ﬁrm. markets to the detriment subsidy under U.S. trade On Thursday, CFDA president Diane von Furstenberg and of U.S. businesses even laws, which could lead chief executive ofﬁcer Steven Kolb sent out a memo clarifying as he expressed concern President to punitive import tar- its position on the recent show date controversy, reasserting the about the bill’s compli- Obama iffs on China and other fashion week dates they agreed to in 2008, and spelling out the ance with international speaking countries. It would make schedule as they·· see it for the spring 2013 shows. trade rules and the poten- Thursday. it easier for industries The letter was dispatched via e-mail to all segments of the tial to spark a trade war. to petition Commerce American fashion industry, including designers, editors, retailers, With a Senate vote for relief under claims show producers, public relations executives and model agencies. looming on a controversial that a misaligned cur- “When we started together at CFDA, the members and the currency bill that would rency is an illegal export American fashion industry asked us to stabilize the dates of set punitive tariffs on subsidy. The legislation New York Fashion Week, which were being pushed earlier each China if it failed to reform would also require the year,” von Furstenberg and Kolb stated in the letter. “Given the monetary policy, Obama Treasury Department international schedule, this was no easy accomplishment — but said, “My main concern to identify countries we were successful.” — and I’ve expressed this that “fundamentally In the letter, von Furstenberg and Kolb reiterated the “Second with Sen. Schumer [a chief misalign” their curren- Thursday Rule” they said was agreed upon at a meeting of the co-sponsor of the China cies and take action if currency legislation] — is they fail to correct it. that whatever tools we put Under current law, the in place let’s make sure Treasury must identify All four fashion capitals have

that these are tools that S countries that “manipu- E can actually work, that late” their currency for kept to this agreement, to date, IMAG they are consistent with purposes of gaining an our treaties and interna- unfair trade advantage and the U.S. will continue to do so tional obligations. I don’t and show intent. want a situation where Even if the Senate for the foreseeable future. we’re just passing laws passes the legislation, it SAMAD/AFP/GETTY

that are symbolic, knowing L faces dim prospects in E — CFDA LETTER W E

that they are probably not the House after Speaker

going to be upheld by the BY John Boehner expressed CFDA, British Fashion Council, Chambre Syndicale, and Camera World Trade Organization, misgivings about the bill Nazionale della Moda in 2008. “By nature of the calendar, some HOTO for example, so that U.S. P on Tuesday. years the second Thursday of the month occurs early in the companies are subject to a Obama’s seeming month, other times it is later,” the letter stated. “For September whole bunch of U.S. sanctions. misgivings about the legislation and refusal in 2012, the second Thursday start provides New York with extra “We’ve got a strong case to make, but we’ve just the past to take unilateral action against China time since the shows will start the week after Labor Day. got to make sure that we do it in a way that is going over its currency programs indicates he will like- “All four fashion capitals have kept to this agreement, to to be effective.” ly continue a policy of trying to encourage the date, and the U.S. will continue to do so for the foreseeable fu- While Obama did not say that he would veto Chinese to reform their currency policy through ture,” they added in the letter. “As you may have read, the dates the bill, it was the strongest statement to date diplomatic means. for showing the spring-summer 2013 collections are now being that he has made about the legislation, which has But the U.S. did take action against China disputed. Milan is claiming that the agreement·· was for three flamed tensions with the Chinese government and on another issue on Thursday. U.S. Trade years only. This is not the case; the agreed-to schedule was al- sparked a war of words between Democrats and Representative Ron Kirk said the U.S. had identi- ways meant to be a long-term/permanent one.” Republicans on Capitol Hill. fied 200 subsidy programs that China has “failed to For the spring 2013 collections, the New York shows would The President acknowledged that China inter- notify” to the WTO, in a formal submission the U.S. thus be scheduled from Sept. 13 to 20, London Sept. 21 to 25, venes in currency markets, saying it is “indisputable.” made to the global trade body. The U.S. also sub- Milan Sept. 26 to Oct. 2 and Paris Oct. 2 to 10. “In fact, we have stabilized our relationship mitted and identified 50 subsidy programs it said “While the Camera Nazionale della Moda in Milan has ex- with China in a healthy way,” Obama said. “But India had not notified the WTO about. pressed displeasure with the late start for September, we do not what is also true is that China has been very ag- Kirk said the U.S. is seeking detailed informa- feel that New York should shift earlier,” the letter stated. “Our gressive in gaming the trading system to its advan- tion and data from China and India through the colleagues at the British Fashion Council support this decision, tage and to the disadvantage of other countries, actions at the WTO. If the two countries do not as they cannot change their dates either.” particularly the United States.” comply, the U.S. can bring the matter to the WTO Kolb and von Furstenberg added that at this time, “Milan cur- He added that there has been “some improve- Subsidies Committee. rently plans to organize their shows from Wednesday, Sept. 19 - ment, some slight appreciation over the last year, “The situation is simply intolerable. Every Tuesday, Sept. 25, which is in direct conflict with New York and but it’s not enough.” member of the WTO is required to come clean London show dates.” The President’s remarks came in a White House on its subsidy programs on a regular basis. China Should Milan stick to this plan, it could result in some edi- news conference where he aggressively promoted has not notified its subsidy programs in over five tors sitting out the Italian collections. As reported, Condé Nast his jobs plan and also expressed support for three years,” he said adding that India only recently International chairman Jonathan Newhouse sent a letter to pending trade agreements with Colombia, Panama filed its first incomplete notification in nearly 10 Mario Boselli, head of the Italian Chamber of Fashion, stat- and South Korea making their way through Congress. years. “The lack of transparency severely con- ing that the editors of Vogue, including those of the American, Obama said he was “comfortable” with a new Senate strains the ability of WTO members to ensure that Italian and French editions, will not attend the Milan shows if Democratic proposal unveiled Wednesday that would each government is playing by the rules.” there is a conflict with New York or London.

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going to be upheld by the ICHNER E

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The Apple store on Ferré’s Future Remains Cloudy Fifth Avenue. founded more than 20 years ago by By LUISA ZARGANI Abdulkader Sankari and is a fashion distributor and franchisee in MILAN — Uncertainty is once again the Middle East, where it operates clouding the future of the Gianfranco more than 250 stores in the United Ferré company. Arab Emirates, Kuwait and Saudi According to sources, the state- Arabia for brands ranging from appointed administrators who over- Versace and Cerruti to Canali and saw the sale of Ferré to Dubai-based Ferré itself. Paris Group in February have re- Ferré held two runway shows quested Italy’s minister of economic on Sept. 26 during Milan Fashion development to schedule a meet- Week. The collection for spring ing with the new owner on Monday was designed by Stefano Citron and to question the management of the Federico Piaggi, veterans of Mila firm so far. The commissioners are Schön, Byblos, Cruciani and the charged with monitoring Ferré for 24 months after the sale, which allowed the firm to emerge from almost two years of government-backed bank- Steve Jobs ruptcy protection. Sources say Paris Group, owned by Abdulkader Sankari and his son Retail and Publishing Innovator Ahmed, who took on the role of chairman, fired Ferré’s manage- chant in our history. As a retailer and tech- ment after the spring fashion show By DAVID MOIN and AMY WICKS nology guy, he had the ability to combine last month, although chief execu- it all and had what most of his peers did tive officer Michela Piva is alleg- THE FLURRY OF TRIBUTES to late not have — an ability to understand what edly on sick leave. “Paris Group has Apple co-founder Steve Jobs, who died customers want. He got people who aren’t stalled all activities of the company Wednesday at age 56, continued to pour in technocrats entertained by the product and without any commercial strategy,” Thursday as industry leaders, Apple fans wanting to buy another product. said a well-placed industry source. and others gauged his impact on the mod- “He made a computer easy and under- “There is proof of disorder, sup- ern world. standable for the average Joe to use. The pliers are not being paid, and the Many of those tributes focused on how stores are very ingenious, but that’s not what unions are complaining.” Jobs had a hand in creating the world in it’s all about. He designed a fashionable At the time of the acquisition, Paris which we live. But he also helped revo- product people want to buy,” said Questrom. Group said it planned to relaunch and lutionize both retailing and magazine Barbara Kahn, professor of market- expand the brand internationally. publishing through the creation of the ing and director of Jay H. Baker Retailing Another source contended the Apple stores and the launch of the iPad Center, concurred, saying, “Steve Jobs changes at Ferré are nothing un- tablet. David Carey, president of Hearst revolutionized retail. Everyone is talk- usual. “It is normal for new owners Magazines, earlier this week predicted ing about store experience, but he nailed to change managers, although it is tablets could be a $10 million business for it. Aside from the obvious attention to de- true in this case, the decision came magazine publishers by sometime next sign, to technology, he had the idea that the late,” this source said, but added year as they provide publishers with a dig- store should be a wonderful experi- that, “It is also true that Paris ital platform on which to sell their ence. He figured out how pres- Group is lagging behind on the re- titles — and at higher prices sure points in the retail envi- launch of the brand.” than a regular subscription. ronment could be eliminated. It is understood the commission- The iPad also stirred The Yo u can pay through the iPad ers are trying to revoke the sale to New York Times to put its and get your receipt e-mailed Paris Group, which, according to content behind a paywall, to you, to avoid a checkout one source, is set on holding on to and even caused News line. He proved that if you Ferré. Conversely, another industry Corp. chairman Rupert have a good idea, if you’re cre- source speculated that Paris Group Murdoch to create an en- ative and innovative, you can might be looking at cashing out from tirely digital newspaper, get people to buy in bad eco- the deal, as a new group of investors The Daily, specifically for nomic times. It’s amazing how is eyeing the brand. These include the iPad — although that emotional people feel about the Korean E-Land Group, which, has seen limited success. this man. They’re paying hom- in July, took control of Italian ac- Meanwhile, observers age by putting flowers by the cessories firm Mandarina Duck. The gauged Jobs’ impact on re- stores. In terms of retail, Apple group has formed a venture with tailing. Ron Johnson, senior is the church.” Kate Spade in Mainland China and vice president of retail at Many more remembrances has more than 40 retail nameplates Apple Inc. and J.C. Penney Apple creations, like the are likely to follow over the next and is gradually forming a fashion Co. Inc.’s next chief executive iPad, had a profound days and weeks, as magazines conglomerate, as it has over the officer, could not be reached impact on publishing. prepare their coverage of Jobs. past year bought Italian sportswear GIANNONI for comment but told the When editors at newsweek- brand Belfe and footwear group A spring look by WWD CEO Summit in 2005 that “Steve Jobs lies Bloomberg Businessweek and Time Sutorio-Lario, which includes the GIOVANNI

said he wanted to open retail stores. This learned Wednesday that he had died, they Lorenzo Banfi label. Others said to Gianfranco BY was in 2000, when most other companies stopped the presses and got to work. The be interested in Ferré are a Chinese Ferré. were moving to the Internet and away from staff at Bloomberg Businessweek was up fund, and a pool of investors head- PHOTO brick-and-mortar concepts. But that was all night, bumping a cover with Gov. Rick ed by former Ferré ceo Enrico precisely why we wanted to do it.” Perry for a black-and-white close-up image Mambelli, who exited the company house’s secondary GF Ferré line, Apple board member Millard “Mickey” of Jobs. The 64-page issue, which has no in summer 2004. who added a graphic and sophisti- Drexler, who is chairman and ceo of J. advertising, covers his life and legacy. It One source attributed Paris cated touch to the looks. It is un- Crew Group Inc., could not be reached for was created by Jim Aley, Brad Stone and Group’s shuffle on Ferré to “a lack of derstood, however, that they work comment out of respect for the Jobs family. Peter Burrows, and includes pieces by vision and tools to deal with a luxury on a consultancy basis. They suc- But Drexler sent a letter to J. Crew’s entire Steve Jurvetson, John Sculley, Sean Wilsey brand.” The owners did not invest in ceeded former creative directors staff about Jobs, a copy of which was ob- and William Gibson. the company, whose sales have dra- Tommaso Aquilano and Roberto tained by WWD: Time magazine stopped its presses matically shrunk and are now mainly Rimondi, who were ousted in April, “I remember when we first met; he invit- for the first time in about 20 years and derived from licenses, according to although Ferré never officially ed me to join the Apple board and told me editors had only three hours to produce the source. “Perhaps they wanted communicated the news. Ferré about his vision for retail,” Drexler wrote. a cover, along with 21 pages devoted to to reduce Ferré to a licensing busi- skipped a season of pre-collections “In hindsight, I’m stunned that I said ‘no’ Jobs’ life and career. The issue, which ness,” he speculated. this spring and the spring men’s a few times. He then offered — very reluc- hits newsstands and tablets today, will The purchase price for Ferré wear season. tantly I might add — to join the Gap board have an increased print run. A spokes- was never disclosed, but sources es- Designer Gianfranco Ferré if I would join his board. I quickly said ‘yes.’ man declined to comment on how many timated Paris Group spent between died in June 2007. The Fondazione Needless to say, Steve was a fast learner issues will be published. 10 million and 20 million euros, Gianfranco Ferré was established in and went on to become the world’s greatest The Jobs cover for Time — his seventh or $13.5 million and $27.1 million, February 2008 to honor and preserve retailer and merchant. It’s unbelievable to — was taken in 1984 by Norman Seeff. The for the company. Paris Group was his work. imagine that he also had a part-time job as issue has a six-page essay by Jobs biogra- the ceo of Pixar for a number of years. pher Walter Isaacson, whose “Steve Jobs” “Steve cared about product like no one will be released Oct. 24 but is already list- else. He was always focused on innovating, ed as the number-one best-selling book on Cavalli Rules Out Denim Sandblasting editing and simplifying. He was unwaver- Amazon.com. Time also has a historical MILAN — The Roberto Cavalli Group in the campaign against the process. ing in his vision.” look at his career by technology reporters confirmed Thursday that it doesn’t The Clean Clothes Campaign has Allen Questrom, former chairman and Harry McCracken and Lev Grossman and use sandblasting to treat denim. lobbied for denim firms to ban the ceo of J.C. Penney, Federated Department photo essay by Diana Walker. The New The Italian fashion firm joins sev- practice, contending it can cause sili- Stores and Barneys New York, said, “He Yo r k Times Magazine had already closed, eral other companies such as Giorgio cosis, a lethal pulmonary disease. was probably the most outstanding mer- so no changes were made to the issue. Armani, Gucci, Versace, Levi’s and H&M — ALESSANDRA TURRA

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every fl awless face has a secret… VKDUH\RXUVDQGZHâOO VKDUHRXUVDW facebook.com /lauramerciercosmetics 6 WWD FRIDAY, OCTOBER 7, 2011 MORE PHOTOS AT WWD.COM WWD.com/ beauty /beauty-industry-news. Sephora’s Journey of Scent egg-crate foam, contain a looped audio featuring people By JULIE NAUGHTON who have lost their sense of smell, a condition called anosmia — which also affects one’s ability to taste. A WITH A 3,700-SQUARE-FOOT installation in red lollipop is placed in the room beforehand and visi- Manhattan’s Meatpacking District, Sephora and tors are told to taste the candy, which is completely Firmenich are hoping to transform the way that con- flavorless, dramatizing the experience of not having a sumers think about fragrance. sense of taste. “Sensorium: An Immersive Journey Through Lucid Next is a room with six pieces of art engineered to Dreams From the Sensory World” opens to the public emit scents — among them, the beach, bacon and eggs today and will remain open through Nov. 27 at 414 West and fresh-cut grass — that share space with looped vid- 14th Street. It is designed as an interactive, multipronged eos evocative of the smells. multimedia experience designed to explore the emotions The next room has the “lab of emotions”: four sta- and instincts behind scent, noted Sharon Rothstein, se- tions, representing Addiction, Comfort, Fun and nior vice president of marketing for Sephora. Confidence. Each has three juices created by Firmenich “With fragrances, like everyone else, we’ve had to re- perfumers especially for the installation. Headphones think the category,” said Rothstein. “Over the last five blare music complementary to each emotion. years, statistics have shown a dramatic decline in fra- In the “Lucid Dreaming” room, visitors stand in front grance use. This is intended to educate consumers and of one of four stations, each with a unit to smell and a remind them what’s magical about fragrance.” video screen depicting a particular emotion: wonder, Added Debra Butler, vice president of creative mar- hope, creation and floating. Consumers sniff through keting for Firmenich: “Over the last 10 years, unit sales a nosepiece, triggering the video screens to display of fragrances have dropped 40 percent, while prices changing graphics tied to breathing. have gone up 40 percent. In 2008, you had to do about The last stop is a fragrance bar — quite literally, $108 million in sales to have a number-one launch. Now a bar counter with four “flights” of scents. The four

it’s $54 million.” fragrance families — Playful, Polished, Casual and AQUINO The Sensorium is based on a similar concept Addictive — each have scents sprayed on the inside of a The “lab of JOHN

Firmenich has done for the last dozen years for its in- clear wineglass marked only with a number from 1 to 6, BY dustry clients, noted Butler. “We’ve done it for major cli- representing tonalities of scent, including fresh, reﬁned, emotions.”

ents to excite and inspire them — but we’ve never done petally and warm. PHOTO it on this magnitude and scope, and we’ve never done it Consumers smell all and choose their favorites. in a consumer-focused way,” she said. “It is a process similar to that of a wine tasting, in The scents being tested at the fragrance bar are avail- Six distinct “experiences” are incorporated into the which consumers will smell unbranded scents, discover- able for sale at the Sensorium, and consumers are invited journey, with interactive displays, ﬁlm, storytelling and ing preferences based on emotion instead of marketing to visit Sephora’s new Meatpacking District store. Even three-dimensional art. First is a time line of important messages or bottle appearance,” said Allison Slater, vice outside windows get in on the act: Scratch-and-sniff graph- dates in fragrance, from before the birth of Jesus to the president of retail marketing for Sephora. “It’s fascinat- ics are festooned on the outside windows, and signs en- present day, along with visual cues such as raw ingre- ing because we see how things not actually part of the courage passersby to stop and take a whiff. dients and video monitors. Next, visitors enter a sen- juice — like marketing and bottles — inﬂuence consum- While tickets to the exhibition will cost $15, visitors sory deprivation room, of which there are eight in the ers’ perception of a fragrance. The Sensorium also gives can redeem that $15 toward a purchase at Sephora, installation. These closet-sized rooms, padded in white consumers a new language for fragrance.” sephora.com or in the fragrance bar at the Sensorium.

Karl’s Prism of Fragrance Agon, McDonald Honored at Galas PARIS — Karl Lagerfeld himself inspired “It is a very simple idea but worked out ticolored reality,” he said. “No beauty the new Karleidoscope women’s fragrance, in a refined, detailed way,” said Lagerfeld, By PETE BORN and JULIE is better than another, and each one which is due out on Oct. 11 exclusively in of the bottle design. NAUGHTON has its own inner truth. We respond to Sephora’s European doors. Model Bianca Balti stars in these diverse aspirations with respect “It is Karl’s multifaceted vision that was Karleidoscope’s advertising campaign, MONDAY MARKED A MILESTONE and show our willingness to listen.” the main inspiration for this project,” said which was photographed by Lagerfeld. “I for both the American Jewish On Tuesday, Camille McDonald Françoise Mariez, senior vice president love Bianca and her strong, modern but Committee and for Jean-Paul Agon, was inducted into the Fragrance of marketing for European fragrances at classical beauty,” he said. “The ad is a ka- chairman and chief executive officer Foundation’s Circle of Champions, in Coty Prestige, a division of Coty Inc., which leidoscope of images of her face four times of L’Oréal, who received the organiza- an event held at the St. Regis. holds the Lagerfeld fragrance license. on the page.” tion’s International Human Relations “Tonight, we are here to honor and The designer was involved in every step Coty acquired the Lagerfeld scent li- Award. The event, held at the New dishonor Camille McDonald,” cracked of the scent’s creation. cense in May 2005, when it purchased York Hilton, raised $1.35 million, a Don Loftus, president and ceo of P&G “He had the idea of the kaleidoscope, Unilever’s global prestige fragrance busi- record — and also dramatized the Prestige U.S. and the evening’s emcee. the bottle and the advertising,” said Mariez. ness that also included the Calvin Klein, “Yes, that’s right, it has moved That’s true for the fragrance’s Vera Wang, Cerruti and Chloé from an elegant evening where name, as well. brands for $800 million. The first the Fragrance Foundation “I love to play with words, as Lagerfeld-Coty project was a line would honor one of the indus- I love to play with scents,” said of three scents for men and women, try’s finest to a horrific night Lagerfeld. called Kapsule, which was launched of malicious mudslinging and About the juice, which was con- in fall 2008. Other former Lagerfeld cruel and callous character as- cocted with Givaudan’s Christophe fragrances include Karl Lagerfeld sassination. Camille, we hope Raynaud, Lagerfeld explained, Classic, Jakko, Lagerfeld Photo and you enjoy the evening.” “A fragrance is not made to be ex- Sun Moon Stars. Loftus then called Jerry plained by words. A mix of scents Karleidoscope is the first wom- Vittoria, president of fra- creates something we can smell but en’s scent Lagerfeld has created grances for North America at not describe. I can tell you that the with Coty. “We have decided to Firmenich; So Young Kang, base is patchouli fraction orpur, focus on this segment, as all of his vice president of brand devel- EICHNER benzoin Laos orpur, tonka bean creations mainly address women,” opment at Bath & Body Works;

and musk, and the heart (a per- said Mariez. Camille McDonald with her STEVE and Cos Policastro, executive

fume must have a heart that should She explained Karleidoscope’s cousins, George DeCanido BY vice president of fine fragranc- break, in a way, our heart) is helio- target audience is women aged 30 and Sandy DeCanido. es at Givaudan — “three peo- trope (one of my favorite scents), and older, who are “urban, arty and PHOTO ple who have known Camille violet and freesia. But I don’t want creative.” for a number of years and are to be too technical about the fra- The eau de parfum will come recent change of command at L’Oréal, still willing and able to talk about it” grance. I prefer a sentimental ap- in 30- and 60-ml. sizes, which are when the outgoing chairman Sir — to the stage to continue the roast. proach.” to retail in Europe for 39 euros, or Lindsay Owen-Jones retired on March Looking on proudly were McDonald’s As its name suggests, the scent’s $52.05 at current exchange, and 63 17, leaving the chairmanship to Agon. cousins, George DeCanido and Sandy outer packaging resembles a kalei- euros, or $84.10, respectively. Fittingly, Owen-Jones presented the DeCanido, who traveled in from doscope through whose Perspex, While Coty executives would not AJC award to his successor. In discuss- Florida to see her honored. faceted lens top a Lagerfeld silhou- discuss sales projections, industry ing how the AJC and L’Oréal share the When given a chance to speak, ette can be seen multiple times. sources estimate Karliedoscope same values of integrity and tolerance, McDonald cracked, “Now I’ve got you The outer tube also contains a small will generate 10 million euros, or Agon said the company’s field of busi- where I want you — you know how ver- black sponge shaped in the design- $13.3 million, in wholesale reve- ness is a place where values matter. bose I am!” Summing up her feelings er’s profile, which can be spritzed nues during its first 12 months. “Beauty — like peoples and cultures about the award, she said, “This is one with the fragrance. Karleidoscope — JENNIFER WEIL — is a multifaceted world and a mul- of the proudest moments of my career.”

ZDDLQGG 30 YEARINFASHION ALL OF THE STYLE, SCANDAL, CELEBRITY AND BUSINESS OF 2011. PLUS, EDITORS REVEAL THE WWD NEWSMAKER OF THE YEAR. COMING DECEMBER 2011

For more infomation contact Melissa Mattiace at 212.630.3951 or [email protected] 8 WWD FRIDAY, OCTOBER 7, 2011 WWD.COM beauty Hair-Smoothing Firms Beauty Takes to the Street Cart Get Targeted by OSHA NEW YORK — British import beauty brand I Love… unit, attracted more than 700 people Sept. 29. Lines Cosmetics last week used a New York City icon — a wrapped around the store’s main building at some key food cart — to introduce its fruity skin care products traffic times and word of mouth spread quickly in the By ANDREA NAGEL to Duane Reade shoppers. neighborhood about the freebie treats. Doling out samples of gelato and products, the cart, Sampling was also provided at Rockefeller Center, THE OCCUPATIONAL SAFETY and Health stationed at Duane Reade’s bustling 40 Wall Street Union Square and Herald Square as the fledgling Administration is the latest agency to weigh in on brand looks to shake up the skin care hair-smoothing products that allegedly contain unsafe business. The brand’s scents dovetail levels of formaldehyde and methylene glycol — and nicely with gelato flavors, such as Brazilian Blowout is under direct fire. Mango & Papaya, Coconut & Cream On Monday, OSHA issued a revised hazard alert to and Strawberries & Milkshake. Food hair salon owners and workers stating that during re- carts have become a popular vehicle cent investigations, it found air tests showing formal- for beauty companies with other dehyde at hazardous levels in salons using Brazilian brands; Urban Decay used them as Blowout Acai Professional Smoothing Solution and a distribution point during fashion Brasil Cacau Cadiveu, resulting in citations for mul- week in conjunction with free pizza tiple violations. OSHA said it found that workers were coordinating to a new color palette. exposed to formaldehyde in these salons at levels high- “The idea to use the gelato sam- er than the agency’s protective limits. OSHA also cited pling came out of a brainstorming ses- two manufacturers and two distributors of hair-smooth- sion with our promotional marketing ing products for violations that included failing to list partner,” said James Brown, founder formaldehyde on product labels as well as on accompa- of I Love…Cosmetics who added that nying hazard warning sheets, known as material safety the carts, which will be featured at data sheets, that are provided to the products’ users. other locales throughout October, OSHA’ s alert follows a report filed on Sept. 30 by match the fun-living image of the Cosmetic Ingredient Review, which stated that while brand. “I Love…Cosmetics was born many hair-smoothing products “are unsafe in the from a desire to make fun, functional, present practices of use...exposure to formaldehyde affordable bath and body products that could be minimized with proper procedures and use are designed to make people smile. We of personal ventilation devices,” according to a report feel there is a real niche in the market- by Alan Anderson, director of CIR. place for products that incorporate The CIR report came about a month after the Food wow fragrances, amazing perfor- & Drug Administration issued a warning letter to mance and vibrant colors.” Brazilian Blowout for being an “adulterated and mis- I Love…Cosmetics was branded product.” The product was found to contain one of the new brands sin- methylene glycol, which can release formaldehyde gled out by buyers attend- during the normal conditions of use; but the product critical ing the National Association is labeled “formaldehyde free” or “no formaldehyde” of Chain Drug Stores’ and does not list formaldehyde on the material safety by mass Marketplace meeting in data sheet. Boston last June. Since being Brazilian Blowout chief executive officer Mike Faye Brookman previewed there, it has been Brady said that OSHA’s recent results are at odds with picked up by Duane Reade, results from tests he said they conducted in the past. Wal-Mart, Rite Aid, Navarro, Fred “I am in receipt of federal OSHA results and they test- Meyer, Pamida Stores, Kmart, Lewis ed [our formulas] in 24 different salons and we passed Drug, Drugstore.com, cvs.com, wal- all the tests. Federal OSHA has tested over and over greens.com and AAFES. our products, and there are no violations — and emis- While Brown is targeting bath and sions are well below standards. And the treatment is a skin first, there are expansion plans life-changing experience. Put those two together and into lip balms and gloss in 2012. New we are where we need to be.” seasonal fragrances will also bow next He said he has responded to FDA’ s warning letter year, such as Tropical Paradise for by providing them with “volumes” of air test results summer. The current offer includes and documents from federal OSHA. bubble baths, shower smoothies, “We are in direct contact with them. Some, not all, body butter, lotions hand creams and are labeling issues. That is an easy resolution. I have gift sets. Prices range from $5.99 for no issues with FDA.” a 2.5-ounce hand cream to $9.99 for a Brady, who said he replaced the original maker of six-bottle gift set. “We are thrilled to his formulas with a new manufacturer in Brazil, in- introduce our brand to the U.S. mar- sisted that he is “in no way reformulating” his current ket,” said Brown. “The products are al- solution, and despite the negative attention, “business A gelato cart helps promote beauty company ready popular throughout Europe and is good and every day gets better.” I Love… at Duane Reade’s Wall Street store. Canada and we are excited to share The agencies’ actions follow months of review the line with American consumers.” on the topic of hair-smoothing safety, one that was sparked in October 2010 when a stylist in Oregon complained of eye, nose and throat irritation after ad- ministering certain smoothing treatments in the salon where she worked. The popularity of hair-smoothing treatments, Lauder Taps Ferretti for SVP Role which cost as much as $300 to $500 per service, has even triggered the formation of the Professional element of the brand worldwide, fulfill women’s aspirations. Now, Keratin Smoothing Council, an entity comprised of By PETE BORN ranging from TV, digital and print with Ferretti on board, the compa- three hair-smoothing brands that aims for safe formu- advertising to product packaging to ny has “the opportunity to set the las and safe use in salons. Edward Quevedo, a part- RICHARD FERRETTI, a former store design and retail visual mer- agenda for the next generation of ner at Paladin Law, said, “Those in the council ensure creative director of Coach and the chandising. “He has an innate tal- aspiration of luxury.” that maximum efforts are working on formulations. Reed Krakoff brands, has been ent, an innate taste level, a vision During the past two years at The rest is a tempest in a teapot. If our only answer named senior vice president and and an attention to detail” that will Coach, Ferretti was responsible for is to beat on the drum that our products are safe, we global creative director for the allow Ferretti to handle this multi- the global image of the brand’s leath- will be perceived as dodging the issue. They are safe Estée Lauder division of the Estée faceted global task, Hudis said. “He er goods and fragrances through ad- if used properly. [CIR] is not convinced they are being Lauder Cos. Inc. has the sensitivity to understand our vertising, catalogs, digital vehicles used properly, and it is their job to be conservative.” Ferretti will report to Jane heritage” through six decades of and stores in markets including the Quevedo continued that while some of the manu- Hertzmark Hudis, global brand family leadership, and Ferretti has U.S., U.K., China and Japan. At Reed facturers of smoothing treatments within PKSC con- president of Lauder, and his ap- the ability to “imagine the future.” Krakoff, he oversaw creative devel- tain methylene glycol, “none contain formaldehyde pointment will take effect Monday. Noting that almost 75 percent of opment and visual imagery for the as an ingredient. Formaldehyde is a possible conse- Ferretti is succeeding Aerin Lauder, Lauder’s business is done outside brand that was launched in 2010. quence in terms of emissions in the air. Methylene who continues to work as the style the U.S. now, Hudis said it is im- Prior to Coach, he was creative glycol is a stable, safe substance, and when heated and image director for the brand as portant that Ferretti has the ability director at Gourmet magazine, at low temperatures, it might in some cases result in well as its spokeswoman. He will be to understand the business all over also at Banana Republic and held formaldehyde vapors. But when they occur and are working closely with both Hudis and the world. “The brand initially was senior design positions at Self, used properly they have never in tests had emissions Lauder, according to the company. all about glamour and style,” she InStyle, Child and Metropolitan higher than the .002.” That number is the acceptable Ferretti’s responsibilities will observed, explaining that Estée Home publications. He also de- amount stipulated by OSHA and CIR. include every creative and visual Lauder’s mission was to excite and signed 15 lifestyle books.

ZDDLQGG 30

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Dries Van Noten Givenchy Celine

Comme des Garçons All the White Moves It may not be the most surprising color choice for spring, but what’s impressive is how designers at Paris Fashion Week manipulated white into so many exceptional sculptural silhouettes — bouffant skirts, GIANNONI peplums, cagelike cutouts and

GIOVANNI exaggerated shoulders for starters. BY PHOTOS WWD FRIDAY, OCTOBER 7, 2011 11 WWD.COM

Rick Owens Jean Paul Gaultier Valentino

COLLECTIONS TRENDS SPRING

2012

Gareth Pugh 12 WWD FRIDAY, OCTOBER 7, 2011 WWD.COM Organized Crime, Event to Showcase Cotton Through the Day

Shoplifting Seen NEW YORK — Cotton Incorporated is 24 style icons will be selected and The 24-Hour Runway Show logo. going ’round the clock and down the ﬂown to South Beach to strut their On Rise at Retail runway to promote its mantra, “The individual cotton style down the Fabric of Our Lives.” runway, along with Elite models and The organization will stage a 24- local celebrities. The winners will be By ARTHUR FRIEDMAN hour fashion show of cotton apparel revealed at noon on Oct. 26, 24 days in South Beach, Fla., on Nov. 19 and ahead of the event. ORGANIZED RETAIL CRIME is on the 20, aimed at showcasing the versatil- Hendee said the event will also fea- rise and hurting retailers. ity of cotton apparel for every hour of ture apparel from local and national The Retail Industry Leaders the day. In conjunction with mtv.com, retailers in the South Beach area. Association released the results of its the event will also include a “Cotton “The runway show provides an op- “2011 Crime Trends and Leading Practices Style Search,” a call for Web uploads portunity for these retailers to pres- Survey” that showed more than half of re- of American style. The event is meant ent the versatility of their own cotton spondents reported an increase in the fre- to bring to life the message of the com- offerings in a unique presentation quency with which organized rings company’s well-known “The Fabric of Our format, and just ahead of the biggest mitted shoplifting. Lives” TV campaign, which currently ion-minded citizens to show us their retail shopping day of the year,” said Another 41 percent saw an increase in presents day-in-the-life montages of cotton,” said Ric Hendee, vice presi- Hendee, adding that “many well- shoplifting by individuals. Sixty-four per- Kate Bosworth and Zooey Deschanel dent of communications for Cotton Inc., known retailers are already onboard,” cent of respondents reported an increase clad in cotton. the research and marketing company and that a comprehensive list of re- in theft of pharmaceutical products. Cotton’s 24-hour Runway Show funded by U.S. growers of upland cot- tailer participants and of celebrity According to the survey, online mar- will feature 1,440 cotton looks — ton and importers of cotton and cotton attendees will be released in the com- ketplaces continue to be a favored venue one look per minute — segmented textile products. ing weeks. for the resale of stolen product, with 61 by hour-themed categories such as From Oct. 14 to 26, an mtv.com mi- Mtv.com will stream the event live percent of respondents saying they expe- “Urban Chic,” “Sunday Brunch” and crosite, mtv.com/cotton24hours.com, from South Beach. Brand management

rienced an increase in the frequency with “Pajama Party.” will accept uploaded images of cot- agency Jack Morton Worldwide has which stolen company merchandise was “Our commercials show the cotton tonistas around the country in their been engaged to conceptualize and ex- resold online, and none reporting a de- celebrity connection, but in conjunc- own fashion-forward cotton styles. ecute the full program. crease in the online sale of stolen goods. tion with this event, we are asking fash- In keeping with the 24-hour theme, — A.F. Retailers also reported that their stolen merchandise was resold at ﬂea markets

and storefront bodegas more frequently. “Data detailing how crime is trend- ing and what deterrent strategies have worked for retailers will help retailers Laila Ali Named Spokeswoman for Marika focus their resources and develop effective strategies for mitigating risk,” said role in the brand’s global retail and ad- Lisa LaBruno, vice president of loss By KARYN·· MONGET vertising campaign. In-store events are Laila Ali prevention and legal affairs at RILA, being considered. which represents more than 200 retail- LAILA ALI, ONE of the world’s most Ali, the youngest daughter of ers, product manufacturers and service recognizable female athletes and a Veronica Porsche Anderson and suppliers that combine for $1.5 trillion champion of health and fitness — as Muhammad Ali, has been a major draw in annual sales. well as the daughter of boxing legend in professional women’s athletics for “It’s concerning that retailers con- Muhammad Ali — has signed a multi- years, and is known for her undefeated tinue to fight an uphill battle against the year endorsement deal with Marika. record in boxing. She currently serves resale of stolen goods online, in flea mar- Marika, a FAM Brands company, is as president of the Women’s Sport kets and other venues,” LaBruno added. a Commerce, Calif.-based specialist of Foundation, and can be seen on the new “As long as there are channels through women’s activewear and bodywear. ABC show “Everyday Health,” which fo- which thieves can resell stolen goods, Ali will serve as the label’s spokes- cuses on people who have overcome or it will be difficult to stem the tide of or- are overcoming health-related issues. ganized retail crime. That’s why it’s so Ali represents Marika’s target cus- important that we continue to explore tomers in the 25-to-50 age range who state and federal legislative solutions As a working mother want fashion, function and fit. and to enhance partnerships with exter- She described Marika as fitnesswear nal stakeholders to find a solution to the of two, it’s now for the “modern woman juggling the growing problem.” demands of motherhood, work, house-

equally important for hold and her own personal being.” R AE B

“As a former world-champion boxer, I always look for high-performance me to have functional gear to wear during my intense work- Lacoste Fakes Seized outs. However, as a working mother of RUSSELL workout wear that two, it’s now equally important for me BY

At Los Angeles Port to have functional workout wear that is PHOTO is also stylish in my also stylish in my wardrobe. This way, I WASHINGTON — U.S. Customs & Border can go from the gym to picking up the Marika was founded in 1982 and has Protection said Thursday it had seized kids, without hesitation,” said Ali. sold more than $2 billion of active and 30,300 pairs of fake Lacoste sunglasses wardrobe. Regarding the brand, Carrie Henley, lifestyle pieces since the brand’s incep- with a potential street value of $4.5 mil- Marika’s executive vice president and tion. In 2010, the company introduced lion in a shipment arriving in Los Angeles — LAILA ALI general manager, said, “We have al- a shape-enhancing collection called from China. ways, as a brand, been known for deliv- Marika Miracles. The specialist also Customs said it made the seizure on woman across all marketing platforms. ering an uplifting mix of athletic basics produces a figure-enhancing diffusion Sept. 15 at the Los Angeles/Long Beach A print and viral advertising campaign and feminine lifestyle activewear for brand called The Marika Magic as well port. The counterfeit sunglasses had a is being planned for spring and will women who are looking to maintain a as activewear by Marika Tek, Marika wholesale value of $48,000, but officials feature Ali in Marika fitness apparel in healthy balance in their lives….Laila is and the Balance Collection by Marika. said the suggested retail price would have women’s fashion, lifestyle and fitness a natural fit as she personifies today’s The brands are sold at stores world- been $4.5 million if the sunglasses had magazines. She will play a prominent on-the-go, well-rounded woman. “ wide and at marika.com. been genuine. Along with the negative effect on le- ·· gitimate manufacturers, counterfeit sunglasses may not be impact resistant, may cause injury by shattering, and may fail to provide UV protection. Huntsman Opens Brazil Production Facility “CBP officers and import specialists at the Los Angeles/Long Beach seaport com- HUNTSMAN TEXTILE Effects, the growing, dynamic markets. Huntsman, with about 12,000 plex aggressively safeguard one of America’s Singapore-based manufacturer of high- “With the opening of our new, employees around the world, had valuable assets, intellectual property,” said quality dyes and chemicals to the tex- low-cost production facility for for- revenues in excess of $9 billion in Todd C. Owen, CBP director of field opera- tile and related industries, has opened mulated chemicals in Saõ Paolo, we 2010. It specializes in developing tions in Los Angeles. “The theft of intellec- a formulation and distribution center will considerably increase our com- sustainable, high-performing pro- tual property poses a serious threat to the in Saõ Paolo, Brazil, it’s 12th such facil- petitiveness and flexibility in textile cessing and effects chemicals that vitality of our nation’s economy.” ity worldwide. chemicals in the growing Brazilian have low environmental impact and In fiscal year 2010, CBP at Los The company said the new FDC textile market,” said Rohit Aggarwal, state-of-the-art dyes to reduce water Angeles/Long Beach seaport accom- will enhance its ability to shorten vice president of Huntsman Textile and energy consumption. Among its plished a record-breaking year with 863 the supply chain in its Americas mar- Effects for apparel and home textiles. key sustainable products is Avitera, trade seizures with a domestic value ex- kets and will focus on the production “Huntsman Textile Effects is com- a tri-reactive dye range that deliv- ceeding $34 million. This is a 42 percent of dyeing auxiliaries, pretreatment mitted to sustainability and looks to ers water and energy reductions of increase in the number of seizures from and finishing products for the local develop more competitive, locally about 50 percent during the manu- fiscal year 2009. textile industry. Huntsman TE said sourced formulated products for the facturing process. — KRISTI ELLIS Brazil represents one of the fastest- local market.” — A.F.

ZDELQGG 30 SHOE TIME: Jean-Michel Cazabat drew inspiration from his SoHo apartment for his ﬁrst store, set to open on Bleecker Street. WWD STYLE PAGE 15 MEMO PAD

WOLFF AT THE DOOR?: After weeks of speculation, it appears Prometheus chairman Jimmy Finkelstein has finally decided to keep Michael Wolff around. The question is whether Wolff wants to stay around at this point. Throughout September, various reports suggested that Wolff’s tenure as editorial director of AdWeek was all but over. Earlier this week, for the first time, Finkelstein publicly offered Wolff a tepid vote of confidence when he told paidContent, “Michael’s name is still on the masthead. He’s not being fired. If I were going to fire someone, it would not be in the pages of the magazine or a news site.” There were enough qualifiers in Finkelstein’s statement to make people inside AdWeek believe that Wolff’s job was still on the line. So much so that, on Thursday morning, Wolff told an audience assembled for an event that he wasn’t sure if he’d still have a job “an hour from now” and that “it’s a nervous time.” But an AdWeek source told WWD that Finkelstein told Wolff point blank later in the day that he isn’t going anywhere. “Michael talked to Jimmy,” said the insider. “Jimmy said he is not firing Michael and is confident they can work out their differences. Michael seems less confident.” Finkelstein and Wolff have worked closely only over the last two months or so and it hasn’t been easy. After chief executive officer Richard Beckman was stripped of his day-to-day powers in late July, Finkelstein took the role of overseeing Prometheus’ publications, which include AdWeek, The Hollywood Reporter and Billboard. Finkelstein, owner of the trade publication The Hill, wants to bring AdWeek closer to a traditional trade; Wolff was brought in to make the magazine more consumer focused. There has been tension between the two ever since and, in mid- September, stories began appearing in the New York Post claiming Wolff’s job was in trouble. At an event at Pricewaterhouse- Coopers auditorium on Madison Avenue on Thursday, advertising executive Richard Kirshenbaum asked Wolff, “There have been a lot of stories circulating about AdWeek. What actually is going on at AdWeek?” Raising “I have a job, I am still employed,” Wolff said. “That story may be different if you ask me or the New York Post an hour from now. I think there is, within our company, a discussion going on. And it’s a discussion about what this The Bar magazine should be. There’s one side which — I’m characterizing it and I’m The chill on the Hudson River at Pier sure these sides would characterize it differently — but one side which I think 57 had nothing on Bar Refaeli at the wants a magazine that tells a smaller Whitney Gala in New York on Thursday story, the smaller story would be about the traditional advertising trade night. The model joined the social set magazine story: Who’s winning what accounts? And then there’s another and art world luminaries alike in the side which wants a larger story, which is the incredible transformation that’s museum’s soon-to-be neighborhood going on in our business — the conflict between old and new, a riveting tale. to honor Calvin Tomkins. I would not want me to tell the former For more, see page 14. story; the latter story, I think I’m a pretty good choice. There’s no decision within the company of which way to go. PHOTO BY STEVE EICHNER It’s a nervous time for everybody.” — JOHN KOBLIN 14 WWD FRIDAY, OCTOBER 7, 2011

John Waters, Pat Moran The Whitney Goes Meatpacking and Vincent Fremont.

Michelle Rachel Monaghan in Feinstein in Marchesa. L’Wren Scott. EICHNER STEVE

Tamara Mellon, Keren Craig BY and Georgina Chapman. PHOTOS SAMPERTON

IN PREPARATION FOR its coming Keren Craig, stood nearby as Bar Refaeli Scott Stringer was pleased with the KYLE move to the Meatpacking District, showed off one of their creations. change of pace: “While I love Museum BY the Whitney held its annual gala and (“She’s a friend, family friend,” Mile and Fifth Avenue, there’s corresponding after party at Pier 57 Weinstein explained.) The label co- something new and exciting about the PHOTO on the Hudson River on Wednesday sponsored the dinner, which honored Whitney anchoring this community.” night. It was the first time in the New Yorker art critic Calvin Tomkins. The mayoral candidate had come history of the dinner that it was not The proceedings drew a number of from speaking to the Occupy Wall held at the museum’s current Upper Tomkins’ past subjects including Street set. National East Side digs. John McEnroe, John Currin and Rachel “I was at the rally a couple of “I’m all for it,” Harvey Weinstein said Feinstein, Jeffrey Deitch and Jeff Koons. hours ago,” he said. “Everyone of the move while making his way Other attendees included John Legend is getting all freaked out about Enquirers from cocktails to dinner. “I think you and Chrissy Teigen, Tamara Mellon and demonstrations and rallies and reach more people downtown; I do. Desirée Rogers. political expression and people THE NATIONAL GALLERY held a black- Right? I’m not an expert.” “I can’t say what is better,” first- giving voice to the issues they care tie dinner for its twice-postponed “Warhol Given his business success, isn’t time partygoer Michelle Monaghan said about. I just think everybody should Headlines” show Wednesday night in it possible Weinstein is expert in all of the event’s new warehouselike take a step back and marvel in the Washington. “I love Warhol,” gushed Michael things? space. “But I can say that this is pretty fact that this city can accommodate Smith, interior designer for the Obamas, “No,” he demurred, “definitely not. great and I’m looking forward to an so many different opinions from so repeating what he had told gallery officials One thing. Movies.” evening. It’s fantastic. It’s like asphalt many different people.” two years earlier when he dropped by in Weinstein’s wife, Georgina Chapman, and disco balls.” Spoken like a true politician. search of paintings to borrow to freshen and her Marchesa design partner, Manhattan borough president — MATTHEW LYNCH up the decor at the Obama White House. The remark landed him a party invitation, but don’t expect to find a Warhol hanging eye in the White House. “Donate one,” he said, adding, “The gallery doesn’t actually have many Warhols in its collection.” Gallery officials quickly supplied the tally — four paintings, one drawing, 70-plus prints and Vamping It Up one sculpture. Among the liveliest additions to THE FANGS WERE OUT Tuesday in Paris the show are four paintings donated as fashion’s finest gathered at Russian anonymously of rock star Madonna under restaurant Raspoutine for a costume party the headline “I’m not ashamed” and celebrating the publication of Carine Roitfeld’s “Nude pix: So what.” They were wedding book “Irreverent.” Uma Thurman, Kanye presents to the singer and former husband West and Jessica Biel joined designers Sean Penn from Warhol and his friend including Karl Lagerfeld, Valentino, Keith Haring, and in fact came from the Haider Ackermann, Alber Elbaz, Diane von Carine Los Angeles home of Madonna herself. Furstenberg, Rick Owens, Giambattista Roitfeld Apparently the quartet didn’t get divvied Valli and Jean-Charles de Castelbajac and and up in the divorce settlement. models Karlie Kloss, Karolina Kurkova, Valentino Baltimore filmmaker John Waters Miranda Kerr and Anja Rubik. walked off with a gift of his own from a There was more neck biting than Anja Rubik and fellow party guest, National Enquirer backbiting going on, as guests offered editor Barry Levine: a 1999 edition of the Julia Restoin their interpretation of the vampire dress Roitfeld tabloid headlined “Sophia Collapses,” code. Arriving with singer Ciara, Riccardo featuring blow-by-blow photos of Italian Tisci had fake blood dripping from his superstar Sophia Loren taking a tumble at mouth, while Olivier Theyskens donned Harrods department store. The spread was spooky amber-colored contact lenses. Waters’ pick for a New York Times’ virtual Louis-Marie de Castelbajac sported a millennium capsule as a “ridiculously deathly halo of white face powder but mean and hilariously funny” example of was sadly lacking bite, having tried — and America’s “love-hate relationship with failed — to glue on some fake choppers. celebrity and fame.” “I bought this stuff for grandmothers. After dinner, National Gallery director It was the worst thing in the world,” he Rusty Powell gave everyone a great excuse grimaced. “It’s pasty and disgusting, so I for adhering to Washington’s decidedly had to just take them off afterwards.” unhip penchant for getting home by Abbey Lee Kershaw fared better with hers. 11 p.m. “You’re all invited over to the “You get used to it. I like the way Hirshhorn Museum at 9 a.m. tomorrow they feel,” she said. The model pulled Natalia for a preopening look at their exhibition a set of bloodied rubber vampire Vodianova of 102 Warhol silk screens,” he declared. teeth from a little black evening and Riccardo Organized independently, the two purse. “I just couldn’t manage Tisci museums capitalized on the coincidence wearing these,” she explained, with a “Warhol on the Mall” headline of and offered them to another guest their own. nearby, who politely declined. Just before leaving, gallery supporter In the center of it all was Buffy Cafritz, in a glittery Mary McFadden Roitfeld, who whirled around the gown, offered her own take on the artist. dance floor to the rousing strains Preferring Andrew Wyeth to Andy Warhol, of “Kalinka” — a tribute to her FEUGERE she recalled of the latter, “When I met Russian-born father, Jacques. him, he was so thin. I asked him what he “I’m not a queen tonight,” she ate and he said ‘Twinkies.’ That’s what Karlie Kloss STEPHANE said, pausing for breath. “It’s the and Abbey Lee BY gave me the idea. I went home with a others who are magnificent.” Kershaw name for my Maltese puppy — Twinkie.”

— JOELLE DIDERICH AND DEVORAH LAUTER PHOTOS — SUSAN WATTERS WWD FRIDAY, OCTOBER 7, 2011 15 WWD.COM FASHION SCOOPS Jean-Michel Cazabat to Open First Store By RACHEL STRUGATZ Here and below: NEW YORK — Jean-Michel Cazabat will Styles from The Hermès family reunion. open the doors to its ﬁrst freestanding Cazabat and store here Saturday. a look at the The footwear brand’s 1,800-square- new store. foot boutique at 350 Bleecker Street is inspired by Cazabat’s own modern, eclectic SoHo loft apartment. “It’s a beautiful day for me,” said Cazabat, who lists Marc Jacobs, Ralph Lauren and Jimmy Choo as his new retail neighbors. “I used to live in the West

PHOTO BY DOMINIQUE MAITRE DOMINIQUE BY PHOTO Village just two blocks away, and it’s one of the best streets for fashion retail. I ONE BIG HAPPY LUXURY FAMILY: Hermès’ Netherlands. It will be curated by Mark think it’s perfect for us. People love to U.S. employees — all 515 of them — Wilson and showcase Alaïa’s fashions walk around here, and the foot traffic is gathered last weekend at the Hyatt since the turn of the millennium. very good — you can’t miss the store.” The store’s colors are blue, red and Regency in Princeton, N.J., for the Rick Owens, Gareth Pugh, Giambattista The store will carry a full range gold — mirroring Cazabat’s home. A vi- company’s first “family reunion.” Valli and Christophe Lemaire were among of the brand’s fall offerings, which brant “Napolean” blue wall welcomes Hermès closed all its 24 U.S. stores guests mingling with fashion executives include women’s boots priced from customers into the shop, as well as a for three days — Sunday, Monday like Sidney Toledano, Bruno Pavlovsky and $245 to $425, and a selection of exotic scarlet “rouge taureau” ottoman, and and Tuesday — so that staffers could Pierre Bergé. The dinner was to belatedly skinned handbags comprised of python there’s also a limestone fireplace with be flown into the event. The stores celebrate the 2011 winner of the ANDAM and crocodile skins and men’s foot- product displayed in walnut washed cab- reopened on Wednesday. “I thought it Fashion Award, Anthony Vaccarello, who wear that start at $1,250 and $550, re- inets that resemble a chest of drawers. would be a great experience to bring dressed Lou Doillon in a skimpy black spectively. Inspired by “distant lands” “All seating areas [in the store] are all the family members together,” dress with straps on the back arranged and “harsh winter climates,” the cur- red — just like in my house. When I said Robert Chavez, president and chief into peace-sign formation. rent collection focuses on texture and launched my brand, I wanted to have a executive officer of Hermès USA. “It’s combines materials and techniques special color. I didn’t want boxes to be about creating special bonds.” Not to MARKING TIME: Jean-Charles de Castelbajac such as ruching, quilting, ruffles, chain white or black,” he said of the boxes his mention the high motivational factor: a celebrated his 40th anniversary in and beaded detailing, horns and exotic shoes come in, which all have blue tops, game of Hermès-style “Family Feud,” fashion with his two sons, Louis-Marie and skins, according to the designer. red bottoms and a gold logo. “I want the while Kermit Oliver, a postman and artist Guilhem, and singer Natalia Kills in the front customer to feel like they are in the ‘Jean in Waco, Tex., who paints scarves for row. The designer, whose label recently Mi’ [the designer’s nickname] universe Hermès, spoke about his work and came under new ownership, did not — like they are coming into my house.” where he gets his inspiration. There want to draw attention to the milestone, Cazabat — whose career in the cat- was a DIY assignment: Every employee choosing instead to showcase up-and- egory began 25 years ago as creative was asked to decorate a white 90-inch- coming band Tomorrow’s World at his director and buyer for Charles Jourdan by-90-inch silk show. Louis-Marie — said that is the first step in a global Hermès scarf. When de Castelbajac said expansion plan for the 12-year-old com- all 515 scarves were he was launching pany. The goal is to open additional re- displayed, Chavez a new brand of tail locations in New York, as well as Los said, “I wouldn’t Swiss-made watches, Angeles, Chicago and in major cities in be surprised if under the name Europe. The brand opened a shop-in- some went into “By Louis-Marie shop in Hangzhou, China, in August as production.” de Castelbajac.” a “test,” according to the designer, who Bertrand Puech, who Meanwhile, Guilhem was pleased with the results and hopes to chairs the main de Castelbajac said open freestanding stores in Asia as well. Hermès family his Los Angeles- Digital is another major initiative for holding company, based interior design the brand, which will unveil a revamped and his wife, company was taking Web site next week at jeanmichelcaza- Martine, attended Louis- off and would soon bat.com, equipped with social media ca- a gala dinner Marie and design a new bar for pabilities that include live feeds of the and recognition the Thompson hotel brand’s Facebook and Twitter accounts. Guilhem de MITRA ROBERT PHOTOS BY ceremony for top Castelbajac in Beverly Hills. “This is the first step in making the

salespeople. Chavez STEPHANE FEUGERE PHOTO BY brand present online,” said Jean-Michel declined to disclose WONDERFUL LIFE: Cazabat’s director of public relations, Liz the cost of the English synth- Auerbach, who also spearheads the com- weekend, but said it was worth every pop duo The Hurts kicked off pany’s social media initiatives. A new penny. “Hermès is committed to quality. their European tour on Sept. 30 in “JMC World” tab on the site will serve as How do we continue to set ourselves Stuttgart, Germany, and are doing a home for the designer to blog about his apart as a company? We thought, ‘Let’s it in a designer way. Theo Hutchcraft inspirations, post editorial credits and make that human connection.’” Chavez and Adam Anderson, known for their celebrities wearing the brand. hopes to make the family reunion a tri- sober personal style as well as their Jean-Michel Cazabat shoes are carried annual event. haunting, melancholic sound, will at Neiman Marcus, Barneys New York, be decked out in Emporio Armani Shopbop and Maxfield in Los Angeles. CULTURE CLUB: Work or play? At a threads for the duration of the tour. dinner Wednesday night marking the close of Paris Fashion Week hosted KIRSTEN’S A GEMME: Kirsten Dunst by French culture minister Frédéric stopped by the Ilori New York SoHo Mitterand, designers were destined boutique Tuesday night to fete the for one of those pursuits. “Rest,” Yohji launch of Bulgari’s Le Gemme eyewear Yamamoto sighed, enjoying a cigarette collection. Wearing Bulgari jewels and on the balcony overlooking Palais- a floor-length, long-sleeve white Derek Photo caption: Louis-Marie and Royal’s picturesque gardens. He Lam dress, the 29-year-old actress Guilhem de Castelbajac said he has another relaxing Paris posed for photographs and chatted Photo redit: Stephane Feugere pastime: painting. But no landscapes with partygoers, who included Fabiola for him. “Just women,” he grinned. Beracasa, Ally Hilfiger, Noot Seear and For more career opportunities log on to WWDCareers.com. Photo caption: Natalia Kills Lanvin’s Alber Elbaz also Jessica Joffe. Dunst laughed Photo credit: Stephane Feugere had leisure in mind, and about making the fashion quizzed other party guests Kirsten faux pas of wearing white for spa recommendations. Dunst after Labor Day. “Ever Spaces “I’m going to Scotland to heard of winter white?” disappear in the nature,” she said with a smile. The Haider Ackermann said. actress, who has been in COMMERCIAL Jean Paul Gaultier said New York to publicize her REAL ESTATE he already started work latest drama, “Melancholia,” on his next collection, but said she’s recently wrapped would take a side trip to three films. Dunst, who Brazil with his buddy Farida has worked with Bulgari Showrooms & Lofts Khelfa, who is presenting for a little over a year, isn’t BWAY 7TH AVE SIDE STREETS her documentary about entertaining the idea of one Great ’New’ Office Space Avail Gaultier at a festival in Rio. day starting her own line or ADAMS & CO. 212-679-5500 Azzedine Alaïa disclosed collaborating with the brand he’s gearing up for a on a collection. “It would retrospective exhibition be very difficult,” she said. opening Dec. 11 at the “Sometimes it’s hard to get (800) 423-3314, or email [email protected]

Groninger Museum in the PRUTTING/BFANYC X DAVID BY PHOTO those things executed.”

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FINANCIAL Solid Sales Fail to Alleviate Holiday Concerns

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people are to pay. I think we’re in for a very challeng- Target posted FOR MORE EARNINGS ing holiday season with modest 2 to 3 percent growth a 5.3 percent NEWS AND DAILY — that’s basically keeping up with population growth.” comp increase. MARKETS COVERAGE, SEE While Bines said most retailers are able to control WWD.com/ their financial results by tightly managing their inven- BUSINESS-NEWS. tories, he noted that in order to drive traffic they are going to have to rely “heavily on early promotions.” Mike Brown, a vice president at A.T. Kearney, said holiday results will hinge on how consumers react to Black Friday sales. The winners are likely to stay the same, though. “There has consistently been a group of retailers that have been able to follow what the consumer wants,” Brown said. “We know the consumer has been looking at opportunities to buy what they can at the best value and price and save their dollars for luxury purchases.” That dynamic has helped the likes of Nordstrom, Saks, Macy’s Inc., Limited Brands Inc., Target Corp., The TJX Cos. Inc., Ross Stores Inc. and Costco Wholesale Corp. It is no coincidence that, aside from Limited, which is known for its strong branding, those companies are either high-end players, department stores or value chains and not specialty stores. “Broadlines and department stores are gaining share from specialty retailers,” said Citi analyst Deb Weinswig, adding that she sees a strong accessories trend, which spells danger for specialty stores, as department stores have a more complete offering of handbags, shoes and jewelry at a more affordable price. What’s more, Weinswig said traffic is actually up at department stores and mass merchants, and that with falling gas and food prices, consumers felt like they were able to make purchases last month, which may ac- count for the positive results. With little change in the macroeconomic picture, the Target turned in a 5.3 percent comp gain and told question looming behind the better September results SEPTEMBER Weinswig it was “surprised” at its own robust sales re- was: What’s driving consumers to spend? sults, despite its blockbuster Missoni sale. The analyst Aside from pent-up demand, the fact that the un- COMPARABLE SALES praised the retailer’s management team and credited employment rate is just 4.3 percent among those with AUGUST 2011 AUGUST 2010 JULY JUNE it with improving its home goods offering, as well as a college degree versus a 14.3 percent unemployment % CHANGE % CHANGE % CHANGE % CHANGE for sewing up an upcoming collaboration with designer rate for those without degrees might have something to DEPARTMENT STORES Jason Wu. do with it. On the specialty side, some retailers held their own “If you look at the unemployment rate, it was spi- BON-TON -3.6 5.9 -4.7 -1.6 against department stores and mass retailers. raling out of control during the recession, but it hasn’t DILLARD’S 3.0 3.0 4.0 9.0 Zumiez Inc., Victoria’s Secret and The Buckle Inc. all changed much in a year,” said Morgan Stanley specialty J.C. PENNEY -0.6 5.1 -1.9 3.3 reported double-digit comp increases, rising 10.1 percent, retail analyst Kimberly Greenberger. 13 percent and 10.3 percent, respectively, on robust pro- That stability is key, Greenberger said, explaining KOHL’S 4.1 3.0 -1.9 -4.6 motions and innovative merchandise. In a preliminary that spending will “hold up” as long as consumers feel MACY’S 4.9 4.8 5.0 5.0 report on results for the third quarter ended Sept. 30, their jobs “won’t go away.” NORDSTROM 10.7 7.5 6.7 6.6 American Apparel Inc. said comparable sales advanced “There are a lot of people in pain, but you have to 3 percent while net sales rose 5 percent as increased keep in mind that there are 90-plus percent of us em- SAKS 9.3 6.5 6.1 15.6 wholesale revenues offset the impact of store closures. ployed, and we have adjusted,” said Madison Riley, man- STAGE STORES -0.7 1.8 -1.7 0.8 aging director of consulting firm Kurt Salmon, AVERAGE: 3.4 4.7 1.5 4.6 who noted that holiday will likely come late for retailers, as shoppers wait to make purchases. This will make it harder for midtier retailers SPECIALTY CHAINS like the Gap Inc. and J.C. Penney Co. Inc., which BANANA REPUBLIC -1.0 0.0 -4.0 -4.0 are already struggling with merchandising is- BATH & BODY WORKS 12.0 11.0 8.0 2.0 sues, Riley said. Gap’s U.S. namesake division saw comps fall BUCKLE 10.3 3.0 8.3 6.8 4 percent last month, as both the Old Navy and CATO -3.0 2.0 -3.0 -3.0 Banana Republic units comped down 1 percent. DESTINATION MATERNITY 2.4 -1.0 -1.9 -6.3 And Penney’s comps slipped 0.6 percent. While there may be more certainty about the GAP (U.S. STORES) -4.0 -1.0 -8.0 -6.0 unemployment picture, even as bleak as it is, OLD NAVY -1.0 -5.0 -4.0 -3.0 there are so many other variables that analysts PERFUMANIA 11.3 9.3 7.4 11.8 said the one certainty about the holiday season is that it can be a surprise. VICTORIA’S SECRET 13.0 13.0 16.0 9.0 “Holiday is difficult to predict right now,” said WALGREEN 3.1 0.4 5.6 2.7 A.T. Kearney’s Brown. “I think it is very rare that WET SEAL -0.3 -0.7 5.5 7.4 the North American consumer lets the economy ZUMIEZ 10.1 17.0 4.3 4.9 Saks turned in a gain of 9.3 percent. get in the way of enjoying their holiday.” AVERAGE: 4.4 4.0 2.9 1.5

SEPTEMBER COMP CRUX MASS MERCHANTS COSTCO * 7.0 4.0 7.0 5.0 GAP NAP: Walloped by a 13 percent YOUTH WAS SERVED: The biggest PRICE FATIGUE: Much was made of ROSS STORES 5.0 2.0 4.0 7.0 drop in its international operations, players in teen retailing all have bowed the potentially detrimental effect STEIN MART -1.7 0.4 -7.5 -2.8 Gap Inc. saw comparable-store sales out of monthly comp reporting, but of rising prices for cotton and for September decline 4 percent, the the second tier of the category put up other commodities going into the TARGET 5.3 1.3 4.1 4.1 same pullback experienced by the Gap strong numbers last month. The Buckle fall season, but the effect was a TJX COS. 4.0 1.0 1.0 4.0 North America unit. That wasn’t only Inc. and Zumiez Inc. not only posted bit muted as September results AVERAGE: 3.9 1.7 2.8 3.8 the steepest drop registered by any of the period’s third- and fourth-best cascaded. However, Tony Buccina, the major retailers reporting monthly numbers, with respective increases of vice chairman and president of results on Thursday, but it took a huge 10.3 percent and 10.1 percent, but merchandising at The Bon-Ton Stores TALLY: bite out of the entire specialty apparel also provided September’s two largest Inc., did note “lower sell-throughs on UP 16 20 15 17 sector’s results. Thomson Reuters put upside “surprises,” with Zumiez 6.9 selected ladies’ and men’s apparel FLAT 0 1 0 0 the increase for the category at 2.9 points and Buckle 6.6 points better than where cost increases had resulted in percent, a ﬁgure that nearly doubled anticipated. Only Victoria’s Secret parent higher retail prices” as his company DOWN 9 4 10 8 — rising to 5.6 percent — when the Limited Brands Inc. (up 11 percent) and reported a 3.6 percent decline in its TOTAL 25 25 25 25 San Francisco-based giant’s results Costco Wholesale Corp. (up 12 percent, comps for the month. were excluded. including fuel) performed better overall. — ARNOLD J. KARR SOURCE: COMPANY REPORTS *EXCLUDES FUEL SALES

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