photo by kyle ericksen; model: agnesa/red; makeupBY mizu for susan price; hairBY ryan taniguchi using tresemme; styled by bobbi queen Smooth Talk Smooth Carol Horn vintage. For more, see pages 6and7. Anthropologie and Josie Natori’s silk tap shorts; necklace by cashmere sweater, T-Luxury’s cotton and modal tank top for shapes in rich materials. Here, some examples: Chris Arlotta’s Some lingerie designers like their luxury simple: easy, no-frills foundation for a wardrobe.” foundation forawardrobe.” Louis Vuitton. “It’sgoingtobemoreabouta owned by luxury giant LVMH Moët Hennessy since taking the creative helm of the brand, relevant,” Philo said in her first interview like itwasprettysober, andthatfeelsreally never stood for flashy fashion. It always felt haschanged. industry with thetimes,underlininghowmuch intune seasons,soundlikethey’re cruise unveiled inJuneforthepre-springand the sidelines. threeyearson ready forhercomebackafter fashion starsofhergeneration,isgetting By MilesSocha PARIS — For aSensibleCeline Philo Rested and Ready Forget Fashion Flash: Fireworks areout:Realism isin.“[Celine] And herfirstdesignsforCeline,tobe W Phoebe Philo, one of the biggest PhoebePhilo,oneofthebiggest Accessories/Innerwear/Legwear Women’s Newspaper Daily •February Wear 9,2009•$3.00 •TheRetailers’ Daily lead, page4. becomes aromantic EYE: tradepolicy, page3. NEWS: s Obama repositionsChina

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2 WWD, MONDAY, FEBRUARY 9, 2009 WWD.COM Christian Dior Sales Flat in ’08;

Rtw, Luxe Bags On Growth Track WwDAccessories/Innerwear/LegwearMonday By Miles Socha said, disclosing that Dior bou- FASHION tiques in Palm Beach and Puerto Lingerie designers have a new energy for fall, PARIS — Christian Dior Couture Rico recently were shuttered. 6 did not escape the global econom- “We want to continue to put reflected in brightened palettes, painterly prints ic downturn, and saw sales growth Dior at the top level in the luxury and color blocks, along with artists’ smocks. stall as business conditions tough- market,” he said. “We see the ben- GENERAL ened in the U.S. and Japan. efits on the cosmetics business. We Fourth-quarter revenues have more and more synergies.” 1 Phoebe Philo, one of the biggest fashion stars of dropped 6.9 percent to 202 mil- Toledano said Dior would her generation, is getting ready for her comeback lion euros, or $266.4 million. continue to expand its retail after three years on the sidelines. For the full year, revenues at network in 2009, with more lo- 4 EYE: Ginnifer Goodwin isn’t accustomed to being the French fashion and acces- cations planned for China and a leading lady, but in “He’s Just Not that Into You,” sories house slipped 2.8 percent the Middle East, as well as St. the actress attains romantic lead status. to 765 million euros, or $1.13 bil- Petersburg in Russia. The com- lion, even though Dior said the pany added 15 stores in 2008. 5 Etam staged a glitzy catwalk show in Paris business “continued to do well Dior has been driving its prod- that included the unveiling of a new lingerie and in Europe, the Middle East and uct mix and retail environments swimwear line by model Natalia Vodianova. China.” Expressed at constant ex- more and more upscale to reflect ACCESSORIES: Feeling the bite of the global change rates, total 2008 revenues its stature as a pillar of Paris high 9 economic crisis, foreign retailer attendance at NI were flat. O fashion, exemplified by John Premiere Classe in Paris fell 29 percent. Profits in 2008 from recur- A Dior Galliano’s summer couture col- ring operations stood at 9 million lection inspired by Dutch Masters s 10 INNERWEAR: Despite retail consolidation and euros, or $13.2 million. This com- runway and Dior’s New Look legacy. frugal budgets, preregistration at the Curve shows GIANN VANNI pares with operating profits of 74 O look for Details about the Dior busi- in New York and Las Vegas is strong. GI y fall-winter million euros, or $101.4 million, ness were released in tandem 15 Apparel and textile manufacturers cut 9,600 jobs in 2007. Dollar figures are con- oto b 2008-2009. with results for Christian Dior in January and department stores slashed 8,600 verted at average exchange rates ph SA, the parent of LVMH Moët positions as U.S. payrolls fell by 598,000. for the corresponding period. Hennessy Louis Vuitton and the Dior said the 2008 profit figure reflects the Dior fashion house. Revenues at the holding com- 16 With no signs of a letup in the recession and slower pace of business and costs for expand- pany rose 4 percent to 17.93 billion, or $26.38 bil- A Caftan by Josie many secondary brands failing to gain traction, ing its store network and overhauling the supply lion, while the group share of net profits declined Natori Couture. some retailers may have to sever their spin-offs. chain, “a substantial project that will improve the 9.5 percent to 796 million euros, or $1.17 billion. In profitability of Christian Dior Couture.” organic terms, revenues grew 7 percent in 2008. Classified Advertisements...... 18-19 The company gave no sales or earnings guid- The sales figures closely echo the LVMH an- To e-mail reporters and editors at WWD, the address is ance for 2009, but said its objective would be to nual results announced last week, which showed [email protected], using the individual’s name. “increase the flexibility of its organization and to resilience amid the downturn, thanks to double- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 continue its growth strategy of developing very digit organic growth at Louis Vuitton and the FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 27. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with high-end, iconic products.” strong performance of Sephora and the perfumes one additional issue in January, May, October, November and December, two additional issues in April, June and Sidney Toledano, Dior’s president and chief and cosmetics division. August, three additional issues in March and September, and four additional issues in February) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY executive officer said widespread and early mark- Indeed, Dior’s strong fashion image continues 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, downs in the U.S. hurt its business late last year. to pump up the fortunes of its beauty business, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human By contrast, Dior conducted a brief sale in Paris which LVMH said posted a “record year in terms Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada during the regulated period at a temporary loca- of revenue and profitability” as the luxury giant Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 tion, which “didn’t impact” full-price sales at its posted a 4 percent increase in fourth-quarter POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA Avenue Montaigne flagship. revenues and 2008 profits of 2.03 billion euros, or 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/ Dior also exited the logo and “access prod- $2.98 billion at average exchange rates. wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will uct” business as it pursues an upscaling drive. On LVMH trumpeted the “excellent progress” of be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence the plus side, Dior posted “significant growth” in Diorshow Iconic mascara and Dior Addict make- to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other ready-to-wear, watches, fine jewelry and handbags up lines, along with successful fragrance launches Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber priced over 1,000 euros retail, Toledano said. Dior Homme Sport and Escale à Portofino. For its list available to carefully screened companies that offer products and services that we believe would interest The repositioning effort has “worked very well 2009 outlook, LVMH said makeup creativity would our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE in Europe,” meaning some store locations driven continue to be inspired by Dior’s couture, with RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED by access products are under scrutiny, Toledano products such as Diorskin Nude. ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST Ruzow Named President at Rachel Roy BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. By Whitney Beckett ing and exciting,” Rachel Roy said. DAILY In July, Jones Apparel Group bought a 50 per- I don’t need to be Longtime industry executive Stephen cent stake in Rachel Roy, creating a three-way “ L. Ruzow is stepping up at Rachel Roy New York, venture involving Rachel Roy, Jones and TSM QUote around fashion to be becoming the brand’s first president. Capital, which acquired a significant minority Ruzow had been consulting for the designer brand stake in Roy’s firm in November 2007. The deal inspired. for a year and has a history of working within con- gave Jones a long-desired entry into the high-end glomerates and leading their designer businesses. contemporary market and provided the small de- — Phoebe” Philo on her return to He spent six years at Kellwood Co., where he was sign house with vital operational backing. the industry at Celine. Page one. president of the Calvin Klein better women’s sports- Based in New York, Ruzow reports to Susan wear division. Ruzow has also held executive posi- Metzger, chief executive officer of the women’s tions at Pegasus Apparel Group and Warnaco Group, wholesale sportswear division at Jones. coming this week and was president of Donna Karan International. “I feel strongly that his breadth of experience MONDAY: New York Women’s WEDNESDAY: The Commerce Since leaving Kellwood in September 2007, he coupled with his key relationships and intimate Fall II Apparel Market Department releases the has been an independent business consultant for understanding of Rachel Roy’s vision will make (through Feb. 27). January retail sales report. Lyn Devon and Donna Karan on the Urban Zen him an excellent leader as we begin to expand the • Texworld, Paris • Jones Apparel Group project, in addition to Rachel Roy. Rachel Roy brand both domestically and interna- (through Thursday). reports fourth-quarter and “Steve is already implementing his many inno- tionally,” Metzger said. year-end sales and earnings. vative, out-of-the box ideas that are freshly inspir- Ruzow was unavailable for comment Friday. TUESDAY: Expofil, Le Cuir a Paris, ModAmont, Paris Indigo THURSDAY: SIMM, Madrid Mode and Première Vision, (through Saturday). TODAY ON OUT TODAY Paris (through Friday). • The U.S. Commerce FRIDAY: Mercedes-Benz Becki Newton in WWDAccessories. Department releases the Fashion Week, New York WWD.com December foreign trade report. (through Feb. 20). • VF Corp. reports fourth- • Abercrombie & Fitch • Featured images from quarter and year-end sales reports fourth-quarter and WWDAccessories. and earnings. year-end sales and earnings. • Trend report: accessories glas r

e in cool tones V • Images of the Hello CORRECTION ine Streetwear apparel brand Southpole is based in Fort Lee, to

n Kitty/MAC collaboration

A N.J. After an Internet contest that ended Dec. 31, company y • Beauty roundup b executives and “America’s Next Top Model” winner Jaslene s • Report on the Gonzalez will make the final picks on the next faces of the oto

ph Capsule trade show label. This was incorrect in a story on page 10, Wednesday. WWD, MONDAY, FEBRUARY 9, 2009 3 WWD.COM Industry on Edge Over Obama China Policy By Kristi Ellis and Liza Casabona Workers manufacture down jackets at WASHINGTON — The Obama administration may be near the Quanli Garment Factory in Pinghu, a turning point in U.S. trade policy toward China, leav- Zhejiang Province, China. ing industry executives pondering the impact on billions of dollars in global apparel and textile commerce. At stake is a trading relationship involving $30.4 billion worth of products imported from China from January through November 2008. Industry and govern- ment experts speculate that President Obama is set to confront what many believe are China’s undervalued currency and unfair trade practices. In his fi rst weeks in offi ce, Obama and administration offi cials indicated they could move swiftly on China’s currency, but they also said a deepening recession is not the time to engage in a trade war, referring to a “Buy American” provision some Democrats wanted in the economic stimulus package. Obama pledged dur- NEWS/LANDOV SHEN/BLOOMBERG ing the campaign to examine the impact of trade on jobs and the economy, leading executives and experts to predict a new policy that could bring stricter interpretation and QILAI PHOTO BY enforcement of antidumping and illegal subsidy laws, particularly relating to Chinese imports. The controversial “Buy American” initiative seeks to ensure that only U.S. iron, steel and manu- President Obama and Treasury Secretary factured goods are used in infra- Timothy Geithner will craft U.S. policy toward structure projects. But the President China’s currency and trade practices. has signaled that he wants to avoid being seen as a protectionist. “I think it would be a mistake… note we’ll take note of and moni- action Obama will try to avoid, at least in the short term. at a time when worldwide trade is tor,” said Jeff Streader, senior Terse words from China’s Premier Wen Jiabao could make declining for us to start sending a vice president of global sourcing a lasting impression as Obama develops his trade policy. message that somehow we’re just for Guess Inc. “To allege that China is manipulating its currency looking after ourselves and not con- The company won’t create a exchange rate is completely unfounded,” Jiabao said in cerned with world trade,” Obama new strategy in anticipation of any London on Feb. 2, according to the offi cial Chinese news said last week during a TV inter- policy changes from the U.S. gov- agency Xinhua. He said China has been reforming its view. “I think we need to make sure ernment, he said. The global re- exchange rate since the second half of 2005, and added, that any provisions that are in there cession and mounting problems in “I think that it is confusing right and wrong when people are not going to trigger a trade war.” China, including rising job losses who have been overspending blame those who lent them His remarks came after as consumer demand for apparel the money.” Canada and the European Union plummets, are larger concerns for He said the U.S. and China would need to work to- urged the “Buy American” provi- sourcing decisions, Streader said. gether to move past the looming global recession. sions be dropped. China’s currency has been “Geithner’s comments set off some alarm bells in Retailers and apparel brands JIM YOUNG/REUTERS/LANDOV PHOTO BY a fl ash point on Capitol Hill for China,” said Joseph Fewsmith, professor and director of are producing clothing globally years, but little action was taken the East Asian Studies Program at Boston University. “I in a quota-free environment for the fi rst time in three under former president George W. Bush, who vowed to think the background is that Obama is simply not a known years, after the elimination on Jan. 1 of quotas on 34 veto most of the legislation and chose to push China to- quantity in China. I think the administration is very well Chinese apparel and textile import categories that had ward reform through diplomacy that coincided with the aware of our complex and important relationship with been established in a bilateral accord in 2005. That People’s Bank of China ending a peg to the dollar in 2005, China, and I can’t imagine that anyone in the administra- agreement came about after global quotas were elimi- tying it instead to a basket of currencies, and then seeing tion wants to set out a hard line against China, especially nated and Chinese imports to the U.S. surged. the currency appreciate moderately. on currency issues, in these diffi cult economic times.” “Clearly, Obama is looking beyond his campaign rhet- China’s subsidy programs and contaminated imports White House Press Secretary Robert Gibbs indicat- oric to the realities of today’s world,” said Kevin Burke, have also come under scrutiny and are on the fashion ed last week that any signifi cant determination about president and chief executive offi cer of the American industry’s radar because they spawned several pieces Chinese currency will be made this spring when the Apparel & Footwear Association. “In the atmosphere we of punitive legislation last year that did not gain enough Treasury Department releases the fi rst of its twice-year- are in right now, do we want to erect protectionist bar- critical mass to move past the House and Senate to ly reports on the topic. Gibbs said Geithner’s comments riers that create a trade war? I don’t think Obama wants Bush’s desk. Several members of Congress joined the refl ected Obama’s stance throughout the campaign. to be leading a trade war.” domestic manufacturing sector in arguing that the Former trade offi cials and industry executives are The President’s statement, however, followed tough bracing for stronger action against China on several talk on China and its currency policies from top ad- fronts, including antidumping and countervailing ministration offi cials. Treasury Secretary Timothy The administration is very well duty cases, as well as World Trade Organization cases. Geithner told members of the Senate Finance There is a pending WTO case against China on textile Committee that Obama believes China is manipulat- “aware of our complex and important subsidies. Countervailing duties make it more expen- ing its currency, which provoked strong words from sive to import goods from countries deemed to be giv- China’s premier. Then Vice President Joe Biden said relationship with China. ing their producers inappropriate subsides. Dumping the U.S. would “get blunter” with the Chinese to pres- occurs when goods are shipped into a country below — Joseph Fewsmith,” Boston University market value or at less than the cost of manufacturing. sure the economic giant to “play by the rules” on trade and currency. Biden said the administration had not “The whole trading relationship with China will made a determination yet on whether China manipu- yuan is undervalued by as much as 40 percent, which come under more scrutiny,” said Scott Quesenberry, for- lates its currency. puts U.S. manufacturers at a competitive disadvantage mer special textile negotiator under the previous U.S. “It’s important to continue engagement with China against lower-priced Chinese imports. A more aggres- Trade Representative, Susan Schwab. and not give in to the protectionist sentiments,” said sive stance by Obama on China’s currency could add im- The Bush administration was willing to challenge Mark Jaeger, senior vice president and general counsel petus to some pending legislation that stalled last year. China through offi cial WTO channels and expressed for Jockey International. “It’s also important to enforce “I’m not sure how much we can tell right now” in concern about its currency, but stopped short of publicly consistently both U.S. and Chinese obligations under var- terms of how Obama will approach the currency issue, labeling China a currency manipulator, he said. ious trade agreements. Trade with China is part of the said Cass Johnson, president of the National Council of “It is clear that there are political risks on the hori- economic solution, and we need to be sensitive to taking Textile Organizations, which is a member of the China zon and companies have got to manage those political steps that undermine that important relationship.” Currency Coalition that has been lobbying for legisla- risks,” Quesenberry said. “It doesn’t matter if they are Frank Kelly, former vice president of internation- tion that would make currency manipulation a subsidy huge multinationals or more limited fashion houses or al trade compliance and government affairs for Liz and actionable under U.S. trade remedy laws. “But they are a niche product.” Claiborne, and now running his own consulting fi rm, there will be action-provoking incidents soon that will David Spooner, former assistant secretary of commerce said Obama isn’t a “protectionist” but he thinks the give us more information about how his administration” for import administration, said Obama’s “tough line” on President will “tighten trade issues with China, and I will address trade and currency issues with China. China on the campaign trail and the early signals from the think countervailing duties will be the big thing.” Johnson pointed to several barometers the industry administration indicate “at least a desire to be tougher.” If Democrats in Congress prevail with currency ma- is watching, including the Treasury report on currency Spooner expects approval of legislation reintroduced by nipulation legislation that could impose sanctions on in April and the anticipated reintroduction of a bill that House Ways & Means chairman Charles Rangel that would China, Kelly said it will put “a big air of uncertainty would defi ne currency manipulation as a subsidy, forc- codify a Commerce Department decision last year to apply over doing business in China.” ing Obama to take a position. antidumping laws to nonmarket economies such as China. Some sourcing executives are undeterred by a change Most experts predict that Congress will pass legisla- “The issue of China and subsidy law will be litigated in policy toward China and plan to stay the course. tion punishing China for its currency policy, but it’s un- like crazy at both the Court of International Trade and “The early days of the Obama presidency are impor- clear on how strongly Obama will back it. An aggressive at the WTO,” Spooner said. “We’ll also see a spike in tant for them to establish some bulkheads, but from our stance against China at a time when the U.S., China and antidumping and antisubsidy cases in 2009, as well as perspective and what’s going on in the world, it’s a foot- the world is in a global recession might just be the kind of an increase in executive branch activity.” 4 WWD, MONDAY, FEBRUARY 9, 2009 WWD.COM

I have absolutely never in my “life taken something I didn’t believe in, whether it turned out to be a piece of crap or not. ­ — Ginnifer Goodwin” Actually SARDELLA DONATO BY HINDMARCH HELLIN KAY; GOODWIN PHOTO BY Love

Ginnifer Goodwin isn’t accustomed to being a leading University, she headed to Stratford-Upon-Avon’s Shakespeare Institute and the lady, although her résumé is hardly insubstantial. In 2005’s “Walk the London Academy of Dramatic Arts to continue her studies. “I have always eaten, Line,” she portrayed Johnny Cash’s first wife, ceding the screen to breathed and slept acting,” Goodwin says. “I love being a storyteller. It’s why I got Reese Witherspoon’s June Carter. In 2003’s “Mona Lisa Smile,” she into this.” was one of a gaggle of female students under Julia Roberts’ tutelage, In 2006, she had her big break when she was cast as Margene Heffman in “Big and in the ongoing HBO series “Big Love,” she is the youngest of three Love.” “I have absolutely never in my life taken something I didn’t believe in, Mormon wives in a polygamist marriage. But with the release of “He’s Just Not that whether it turned out to be a piece of crap or not,” she says. This guiding principle Into You,” the movie, open now and based on the dating book of the same name, seems to have worked — the show is now in its third season. Up next is a small part Goodwin attains romantic lead status. in “A Single Man,” the first feature film directed by designer Tom Ford, based on the “There is pressure,” admits the actress as she settles into a chair to chat after a book by Christopher Isherwood (Ford also worked on the screenplay). “I’m in it for Los Angeles press conference for the film. Indeed, standing out in a large ensemble two seconds, but I had to be a part of it,” gushes Goodwin. “Oh gosh, I’m madly in love cast that includes Jennifer Aniston, Drew Barrymore, Ben Affleck, Scarlett with [Tom]. There’s nothing about him that’s not perfect, and he always smells good.” Johansson and Jennifer Connelly is no easy task. “There are higher stakes here Ford is not the only fashion personality taking a liking to Goodwin: she is because I got to tell the story. We will see if they let me keep doing that.” regularly in demand on the party circuit and recently starred in a Gap ad campaign. As Gigi, a clueless, date-obsessed twentysomething, Goodwin sacrifices any And the actress, in turn, is beginning to feel more comfortable with the sartorial sense of vanity by donning a frizzy hairstyle, adopting a squeaky voice and throwing requirements of her job. herself, literally, at her co-stars. It was all worth it, she says. “It was very important “It used to be that I had stylists who would tell me what it was that I was to me that she truly make the mistakes that we’ve all made and fall on her face supposed to like,” she says. “They would dress me the way that they saw fit. I never because she knows that with the greatest risk comes the greatest reward,” says felt like me, ever.” Now she works with Penny Lovell and mixes repurposed vintage Goodwin, who is familiar with the foibles of the Hollywood dating scene — she pieces with high fashion and new designers. “Her whole thing has been: Who are recently broke up with longtime boyfriend Chris Klein. you? What makes you comfortable? What do you feel flatters you the most? What Her professional life is a different matter: the 30-year-old Memphis native has inspires you?” explains Goodwin. “Now I express myself and only myself.” always been determined to make it. After earning her BFA in acting at Boston — Rachel Brown EYE SCOOP DINNER WITH ANYA: The downpours that FLOWER CHILD deluged Los Angeles last week made Jamie Hippies may be a dying breed, but not if Richards, who learned to play guitar from Tisch’s fireplace-filled home an ideal setting singer Miranda Lee Richards has anything to do Metallica’s Kirk Hammett, a family friend, studied for an intimate 20-person dinner Thursday to with it. The musician’s breathy vocals, trippy music in high school before embarking on a teen welcome Anya Hindmarch to the city. But the guitar licks and piano melodies, which Richards modeling career in New York. (She credits Kate Moss Brit bag designer wanted to make one thing herself dubbed “psychedelic chamber folk rock,” for any success: “I’m shorter [than most models], perfectly clear: have garnered her comparisons with Joni Mitchell, so her career made my career possible,” she says.) “I did not bring Emmylou Harris and Lucinda Williams. The money she earned supported the determined this weather with It’s not just her music. With her straight, middle- Richards as she trekked between open mikes. me. There was parted hair, wide eyes and penchant for long, lacy Now based in Los Angeles full time, Richards actually a blizzard dresses, she looks like a waif who wandered straight says she usually takes a highly personal approach to in London the day out of the Seventies. And then there’s the matter songwriting. “I do tend to stay in the self-discovery I left, so this is an of her pedigree: The San Francisco native is the subject,” she admits. But she’s quick to point out that improvement.” The daughter of subversive comic artists Ted and Tessa her wistful ballads aren’t breakup songs, or even about Wolfgang Puck- Richards and goddaughter of legendary illustrator romantic relationships. “There is other stuff going on prepared dinner, Robert “R” Crumb. in the world. It’s not always about a guy,” she insists. cohosted by Crystal Nostalgia aside, her stylings have won her When it comes to choosing her performance outfits, Lourd and Mary a cult of followers, including Spoon lead singer she tries not to overthink things. “I went to see Patti Alice Stephenson, Britt Daniels and producer Daniel Lanois. Both Smith recently, and she was just in jeans and a T-shirt, Anya featured edible caught her first show last week at Los Angeles and it was so real and raw, but she has probably been Hindmarch versions of venue Spaceland, where Richards is the artist in Miranda Lee wearing the same thing for three weeks. But if she was Hindmarch’s residence this month. An album, “Light of X,” also Richards all glamour princessed out, it wouldn’t work,” says trademark bows on every course, from the hits stores tomorrow — the second after a 2001 Richards, who favors simple attire, herself. “Sometimes asparagus soup to the Cornish bubble and release that was well received but little heard. when I put on makeup or glitter I’m like, ‘What are you doing?’” squeak to the English breakfast tea ice cream. “Light of X” is full of soulful ballads Richards composed on So far, her slow-but-steady approach to making music is paying off, Over candlelight, Michelle Monaghan and Aaron the piano, including the classically influenced “The Last Days of though she’s still getting used to the growing level of attention. “I was Eckhart jokingly devised a movie they could star Summer,” a Velvet Underground-meets-Blondie track called “Early putting a little love into my Facebook profile a while ago and I invited in together, while Angie Harmon had everyone November” and the acoustic “Hidden Treasure.” One of her favorite a few fans from my mailing list. All of a sudden my in-box had triple gaping at her slim post-baby body. “You can’t tracks, “Here by the Window,” she says, is “sort of like my definitive the messages. I can’t believe that people want to know that much wear that dress,” Tisch said to Harmon, who self-realization ballad. I have got a million of those. They are very about me,” she says. was wearing a sequined Matthew Williamson peaceful. That’s how I like to calm myself down.” — Marcy Medina mini. “Everyone will hate you.” WWD, MONDAY, FEBRUARY 9, 2009 5 WWD.COM A Model Collection: Hermès Sees Revenue Growth in Qtr. By Miles Socha PARIS — Outpacing its luxury peers, Hermès International said “ro- Vodianova’s New Line bust” Christmas business lifted fourth-quarter revenues by 6.2 percent to 540.9 million euros, or $713.4 million. At constant exchange rates, the By Katya Foreman increase stood at 1.7 percent. “We grew everywhere except Japan,” chief executive officer Patrick PARIS — Etam doesn’t appear to be tightening its belt Thomas said in an interview. “But clearly, the growth rates are declining.” — garter belt, that is. Hermès is slated to report profits March 19 and warned it may miss The French lingerie brand staged a glitzy, celebrity- its target of flat operating margins and net profits. For 2009, Hermès is packed catwalk show at the Ritz Thursday night that forecasting flat sales, excluding the impact of currency, and a “slight included the unveiling of a new lingerie and swim- decrease” in the operating margin. wear line by top model Natalia Vodianova. Asked about January trading, Thomas said, “We maintain the pace. “What I realized when designing this is how femi- There’s some momentum….We are pretty well equipped to hold on dur- nine I am — I’m feminine to the bone,” the Russian ing the crisis. But there is no doubt we will be hit by the crisis.” model said in an interview, musing on her first foray In the three months ended Dec. 31, sales at constant exchange rates as a designer. slid 12.9 percent in Japan and receded 1.6 percent in Europe, exclud- Dubbed Natalia pour Etam (Natalia for Etam), the ing France. line includes a teal cotton bodysuit with a butterfly By contrast, sales rose 25.2 percent in Asia-Pacific, 3.2 percent in detail at the neck, polkadot two-piece sets and a gray France and 1.4 percent in the Americas. lace corset. The items are slated to hit a selection of “It’s not a depression yet,” Thomas said of the U.S. market. “For the French and international retail outlets in April, re- moment, we see Europe, France and Asia, except Japan, doing pretty tailing from around $20 for a pair of panties to $80 for well. I don’t expect any improvement in Japan in 2009.” a printed silk robe. For more Hermès was not immune to the chill in hard luxury: At constant ex- Having signed up as Etam’s brand ambassador for change rates, sales of watches fell 14.4 percent in the quarter. By contrast, three years starting this spring, Vodianova is to de- images, leather goods powered ahead 8.7 percent; ready-to-wear and fashion acces- sign a new collection for her line each season over see WWD.com. sories 2.8 percent; silk and textiles 2.4 percent, and perfumes 1.7 percent. the same period. Sales of leather bags for the year rose 21 percent, said Hermès, The range also features a silk nightgown with maker of the iconic Birkin and Kelly bags. a lace panel at the neck that was inspired by a Two looks from The Paris-based firm said it plans to continue investing in its retail Victorian slip from Vodianova’s own wardrobe. Natalia pour Etam. network and open or renovate more than 20 stores in 2009. New loca- “That could be worn as an evening dress,” she tions slated for North America include Denver, Calgary, a men’s only said. “I wanted the line to be for women who are not store on Madison Avenue in New York and a unit at the Wynn hotel afraid, who like to play.” in Las Vegas that is already open. Hermès also plans six openings in Eva Herzigova turned up in the front row for the China, as well as Istanbul and Nagoya in Japan. show to support her model pal, along with the likes of Thomas said Hermès would continue to apply financial discipline Audrey Marnay, Uffie, Victoire de Castellane, Charlotte across the company “to reduce overhead,” but noted there would be Casiraghi, Eugenie Niarchos and Lou Doillon. no staff reductions and that communication budgets would be “main- French actress Nora Arnezeder, dressed in a brown tained.” The company has “postponed” extensions to some factories, but snakeskin Dior biker jacket, said she’s been hard at he added that it would not affect the company’s performance. work rehearsing for a play by Georges Feydeau called For the full year, sales at Hermès rose 8.6 percent to 1.76 billion euros, “Chat en Poche,” or “Cat in a Bag.” or $2.6 billion. Dollar figures are converted from euros at average ex- “I’ve also been working on a project with Guerlain change rates for the corresponding periods. Excluding perimeter effects for September, but I can’t give any details,” she said. and the impact of currency, the increase amounted to 10.2 percent. By Bleach-blonde Micky Green, who’ll start work on region, like-for-like sales in 2008 rose 22.2 percent in Asia-Pacific; 6.6 per- her new album next week, said she had just shot a cent in Europe; 15 percent in the Americas, and fell 2.7 percent in Japan. hair campaign for Sebastian. Meanwhile, French heartthrob actor Melville Poupaud said he just wrapped up shooting “44 Inch Chest” with John Hurt. Ley Fashion Firm Enters Bankruptcy “Believe it or not, I’m not into lingerie, I’m just here as I know the people who organized it,” he said. AFTER LESS THAN A YEAR IN OPERATION, LEY INTERNATIONAL The crowd chattered and whooped throughout Fashion Company AG succumbed to the global recession and filed for the show, erupting into applause when Vodianova sa- bankruptcy in Munich on Friday. shayed out to take her bow in a printed silk robe of Escada founder and former chief executive officer Wolfgang Ley her own design. launched his namesake Collection Wolfgang Ley for spring-summer 2009. Targeted at fashion conscious, but not necessarily reed-thin, baby Nora Arnezeder boomers, the enterprise was personally financed by Ley, who put up 1 million euros, or $1.6 million, in starting capital. He told WWD last year that the company was “100 percent financed by myself. That may be stupid, but it’s better not to be dependent on a bank.” Ley said in a statement that the economic crisis, especially in the core markets of Russia and the U.S., made it almost impossible for a young brand to establish itself. “Despite high financial and personal engagement and promising reac- tion from leading retailers and fashion journalists, we have not been able to reach the necessary level of turnover,” he said. Thomas Rath, who designed the German women’s wear collection

FEUGERE Riani, was head of design for Collection Wolfgang Ley. Klaus Windisch, a former Escada contractor, director of the label Stiff and a master tailor, was a board member for production and quality control. STEPHANE A Munich-based bankruptcy trustee has been appointed to over- BY see the company’s further operations. Micky Green Natalia Vodianova and Riccardo Tisci — Melissa Drier PHOTOS

eye On HOt spOts

OUR newest adveRtising OppORtUnity

3423_WWD_WeekendScoop_HAD_Strips_08.indd 6 2/6/09 4:15:19 PM 6 WWD, MONDAY, FEBRUARY 9, 2009 assons P ayla K ASSISTANT: FASHION ; intage v horn

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SCARF AND elry w e j PRICE; SUSAN AT MIZU BY MAKEUP

TRESEMME; Sexy Panties and Naughty Knickers’

USING silk smock with Julianna Rae’s lace-edged silk TANIGUCHI bra and shorts. RYAN BY HAIR AGNESA/RED; PHOTOS BY KYLE ERICKSEN MODEL: WWD, MONDAY, FEBRUARY 9, 2009 7 WWD.COM

ArtLingerie designers have a newForum energy for fall, reflected in distinctive palettes, painterly prints and color blocks, along with such pieces as artists’ smocks. — Bobbi Queen

Undrest.’s cotton robe and bra.

Third Floor’s bamboo, cotton and spandex bra for Anthropologie over Puella’s cotton and polyester

leggings. t

Spreegirl’s bamboo and spandex tunic with Elle Macpherson Intimates’ cotton pants.

Irene for Silhouettes and Profiles’ silk and cotton lace bed jacket over Stella McCartney’s

silk bra and bikini. t 8 WWD, MONDAY, FEBRUARY 9, 2009 WWD.COM Back in the Game: Philo Returns at Celine Continued from page one For her debut pre-collections in par- ticular, “I want it to be less about fash- ion and trend and to do something more about pieces and style,” she stressed. Philo, whose hip-yet-girlish clothes and coveted bags catapulted Chloé into the de- signer big leagues, said she’s happy to be back at work after three years out of the spotlight and focused on her young family, Maya, 4, and Marlow, just 20 months. And while she declined to show any sketches or clothes just yet, Philo dis- cussed her approach at length. “I’m designing the collection in cap- sules and there’s going to be a part of it based on iconic pieces,” she told WWD over a cappuccino amid the gilded splen- dor of the Ritz dining room here. In her inimitable mix of tomboy and chic el- egance, Philo was wearing a “very small” men’s motorcycle jacket tossed over a loose, band-collared men’s shirt and a pair of cotton tuxedo pants from her Chloé days. “I would like them to be investment pieces,” Philo said of her forthcoming collection, sounding serene and confi- dent. “There’s going to be a big empha- sis on trousers and jackets and blouses, and pieces that mix together. It’s also designed in such a way that it takes you

through the day. It’s certainly how I dress, TELLER and it feels right. “For a design point of view, it’s very considered, and when it’s merchandised and styled, I hope it’s accessible,” she

said. “I want to make the experience of JUERGEN PHOTO BY buying and wearing clothes an easy ex- perience. There’s a soberness to it, and a classicism to it. I hope the pieces will be relevant for a while to come.” I want to make the experience of buying and wearing clothes an easy For a woman who once experimented “ with more out-there personal style early in experience. There’s a soberness to it, and a classicism to it. I hope the pieces her career, up to and including gold teeth and long fingernails, Philo has certainly will be relevant for a while to come. ­ toned down, grown up — and maintained ” — Phoebe Philo, Celine her arm’s length rapport with the media- saturated and hype-ridden fashion world. “I don’t need to be around fashion to be inspired,” she said, describing her time- But she resigned for personal reasons in 2006, mainly to spend more time with her out from the industry as “lovely.” children and her husband, art dealer Max Wigram. “I didn’t really follow fashion. I don’t think I ever really have, though. I don’t buy In addition to doing some under-the-radar consulting for Gap Europe, Philo is fashion magazines and read them cover to cover,” she said matter-of-factly. “It’s been said to have put out feelers to fashion’s biggest players — including Gucci Group a very calm time and very real. It was about some time for myself, which gives me a and Chloé parent Compagnie Financière Richemont — about launching a signature lot of strength now.” fashion house, in addition to interviewing for a range of high-profile jobs, including Since accepting the creative director post last September, a sign that LVMH king- Valentino, sources said. pin Bernard Arnault is serious about revving up his second-tier brands, Philo has Philo arrived at Celine in tandem with a new chief executive officer, Marco been building her design team, which is based in London at her request. Gobbetti, who had orchestrated a turnaround at Givenchy. Together, they will “London is where I personally feel very happy, and it’s home,” she said. be faced with rejuvenating a brand that has seen a revolving door of “It’s where my family is. Also, I think it’s really interesting, the idea of designers in recent years, and mixed results. doing something with a French brand out of London — to try and Philo succeeded Ivana Omazic, a designer tapped from Prada break out of the old French house system.” Group in 2005 to steer Celine into woman-friendly territory. Omazic The shift, along with undisclosed changes in production, has herself succeeded ex-Burberry designer Roberto Menichetti, who created redundancies in Paris, and a reorganization that will had a lackluster one-year collaboration at Celine. see up to several dozen Celine employees from the design stu- The brand has yet to reclaim the buzz it enjoyed when dio and atelier lose their jobs, according to sources. Celine de- Michael Kors was at the design helm, from 1997 to 2004. clined to comment on the reorganization, but it is understood Omazic exited the company last October, but her team re- efforts will be made to place affected employees elsewhere mained in place to design the fall-winter collection, which within the luxury group, which includes such brands as Louis will not be put on the runway. Vuitton, Fendi, Givenchy and Emilio Pucci. Marco In an interview, Gobbetti described 2009 as a “transition Meanwhile, Philo confirmed she has already traveled to Gobbetti year” at Celine, citing high interest — and expectation — Tokyo with members of her team on a fact-finding mission: pri- in Philo’s designs. marily to look at “architecture and graphic concepts” and reac- While far less prominent than Louis Vuitton, Dior or quaint herself with a market she had not visited for eight years. Fendi, considered “star brands” in Arnault’s luxury par- “I was more interested in how fashion stood in stores,” she said. lance, Celine is a sizable business, with a retail network of “Plus the street style in Japan is great, just looking at people.” some 130 stores, concentrated in Asia, which represents about The designer, who will have creative purview over store design half the business. Market sources have estimated Celine’s vol- and advertising, said she has yet to choose her collaborators for bou- ume at around 200 million euros, or about $290 million at current tiques or advertising. Yet she spoke freely about what attracted her to exchange rates. the Celine project. The business is believed to be close to break-even. Philo counts a vintage Celine skirt and blouse in her wardrobe, and from Gobbetti said the retail network would remain “the backbone of our dis- what she’s seen of other clothes in the archive, “they’re very practical, beautiful, ac- tribution,” while spying plenty of upside potential with wholesale, which he described cessible pieces. as “underdeveloped,” particularly in the U.S. Philo said she deliberately decided to “There’s nothing historical that needs to be reinvented. It feels like a blank slate,” sit out the Paris runway shows next month, as a way to “give the brand a bit of a she said of a house founded in 1945 by Celine Vipiana and based initially on shoes break” and not succumb to fashion’s “fast and furious” pace. and, later, chic sportswear. “It feels like it can be quite pure and fresh and talking “I prefer to take control of the situation rather than letting the situation take con- about now, not harking back to an era that was iconic….It’s a brand that’s very much trol of us,” she said. for women, designed by a woman. That didn’t feel forced.” Yet her eagerness is plain, and she relishes the chance to make her new fashion A graduate of London’s Central Saint Martins fashion school, Philo was classmates statement on the runway come October. with Stella McCartney and worked with her when McCartney launched her own col- “I feel very strongly that we’ve got something very interesting to lection after graduation. Philo followed McCartney to Chloé in 1997 and took the top show,” she said. “I personally feel quite ambitious and excited about get- job in 2001 when McCartney left to set up her own fashion house in a joint venture ting back into work and getting started.” with Gucci Group. With her good looks and striking personal style, Philo succeeded in accelerating Chloé’s rejuvenation and catapulting it into the high-margin leather goods business. For more runway looks by Phoebe Philo, see WWD.com. WWD, monDay, february 9, 2009 9 WWD.COM Accessories Report FINDINGS JESSICA’S JEWELS: Jessica Simpson is going for Price an Obstacle at Premiere Classe the jewels. In partnership with Trebbianno Inc., the pop singer, reality TV veteran and clothing By Katya Foreman dollar divide still proved a sore point for U.S. retailers. designer is expanding her empire with a line of “It’s very disappointing — the prices are just ridiculous… fashion jewelry, launching for spring. PARIS — Feeling the bite of the global economic crisis, foreign it’s so depressing to come all this way and go away empty- The central collection, called the Cactus retailer attendance for the recent Premiere Classe and con- handed,” said Nancy Schneider, owner of the New York-based Flower, features a mix of Swarovski stones current Who’s Next trade shows here fell 29 percent, with the multibrand boutique Nancy & Co. and colorful charm bracelets inspired by the total number of visitors down 5 percent. Schneider was back after skipping the salon for three atmosphere of Saint-Tropez. Other pieces include A citywide transport strike on the opening day contributed years because of the sky-high euro. chains and bracelets with peace sign insignias, to the downturn, said a spokeswoman for the fairs, which “The prices have leapt up, even by as much as 20 per- as well as classic layering pieces. Retailing ended a four-day run at the Porte de Versailles on Feb. cent,” said Jacqueline Harrach, owner of an epony- from $18 to $25, the line will be available at 1. However, exhibitors were buoyed by a 10 percent mous accessories store in Nice, France. department stores nationwide, including Macy’s increase in the turnout of French buyers. Nora Brennan, owner of Nora’s Shoe Shop, and Dillards. At Premiere Classe, retailers cited a re- a 1,200-square-foot footwear and accessories Simpson already has a handbag collection, turn to “reasonable-sized” functional handbag store in Chicago, said she was avoiding items as well as fragrance, scarves, hats and hosiery, styles in natural skins and sober shades, such that looked too conservative, “especially in footwear, swimwear, eyewear, outerwear, a clip- as black, gray and taupe. Ostentatious hard- these times.” in hair extension line, and a bath and body ware is out, as is big jewelry. “I’ve seen a lot of fresh things that I don’t care line. “A lot of the clothing has so much embel- see at home, but then there’s the conflict of lishment, jewelry brands have a tough nut the dollar,” she said, listing Barcelona’s Luna PROJECT HANDBAGS: Diane von Furstenberg is to crack right now,” said Darren Mason, Llena among standout brands. giving back. In partnership with Vital Voices president of Andrew’s in Canada. “Their [embroidered] bags are really colorful Global Partnership, an organization that trains Seeking accessories that match the de- An Anthony Peto hat and and fresh,” she added, disclosing that her budget emerging sire for “affordable, sober luxury,” Mason Emmanuelle Kahn sunglasses. was up by 10 percent. female leaders was among the retailers underwhelmed Hats surfaced as one of the salon’s stron- around the by the salon’s selection, bemoaning a lack gest elements, regarded as a key accessory world, the of novelty. for expressing individual style. designer “The customer wants to be uplifted, but “Fashion is moving more and more to- staged an there has to be an element of practicality,” ward independent styles, we can see it on accessories “For bags, it’s not so much the oversize, not the street,” said Francis Berquin, owner of competition to so much the hobo…but clean designs, with Derby Spot, a hat distributor based in Ghent, enable women less shine,” he said. Belgium, whose budget was up 10 percent. in developing “It’s more about fabric, less about decoration,” said Alain Muhlbauer’s range was particularly good, he nations to Phelicia Dell’s design for DVF. Massip, a bag designer and owner of De Grimm, a 1,000-square- said, with humorous touches. Ozaki Yuuhi, a men’s wear advance their foot leather goods store based in Bordeaux, France. buyer for Marui M’s Mode who was also on the hunt for hats, businesses. Carole Lion, founder of the namesake Paris-based fashion lauded Bronte’s range of wool caps. Applicants from Haiti, Guatemala, Nigeria store and Web site that operates on an invitation-only basis, Citing “protective” women’s caps in Scottish tweeds and and Cambodia were challenged to create a noted a continued focus on the clutch, with a Bordeaux eel felts as bestsellers, French hat designer Anthony Peto noted an handbag based on a DVF pattern that reflected skin style by Jalda among items topping her shopping list. absence of key Asian retailers, notably from Japan and South their country’s local traditions. The winning Several buyers said although the salon didn’t lack choice, Korea. With travel budgets being slashed, retailers will priori- collection was created by Haitian designer inflated prices made many lines too hot to touch. The euro- tize the event’s March edition, he said. Phelicia Dell. An homage to Ayizan, goddess of marketplace and commerce, Dell’s hand-painted burlap bags will be available at DVF boutiques Zealand tannery — including a matte deerskin — the and on dvf.com beginning March 9, International designers hit upon shapes such as a weekender, hobo Women’s Day. Accessories Alliance and an evening bag, all of which will be sold at Neiman “Women never cease to amaze me with Marcus, Bergdorf Goodman and Saks Fifth Avenue (retail what they can accomplish when faced with IT ALL STArTeD WITH THAT FASHIONABLe prices range from $500 to $3,000, though the box calf and challenges,” von Furstenberg said. “To be part of confidante, the hairdresser. horsehair weekender will go for a cool $7,000). “There’s a this project and Vital Voices reaffirms my belief Last fall, ralph rucci was having his hair cut at ceremonial kind of aspect to [the line], which for me is very that a woman’s ability to succeed is endless.” Frédéric Fekkai when his stylist, Hervé Merlino, began Chado,” explains Borghi, who worked on Giorgio Armani’s talking about his best friend, bag designer Leonello inaugural accessories collection in 1999 before launching BENDEL’S CREATES COMPETITION: Henri Bendel is Borghi. rucci and Borghi, who are fans of one his own namesake line in 2001. To Borghi, the term sponsoring a handbag design competition, the another, met at Borghi’s studio, which happened “ceremonial” means that the bags are simple — Henri Bendel Accessory Award, in partnership to be plastered with photos from rucci’s Chado no tricky hardware or flashy embellishments. with Parsons The New School for Design ralph rucci runway shows. Pleased to find While rucci has collaborated with labels in Manhattan. a like-minded accessories designer, rucci such as Carlos Falchi and Lambertson Truex, In December, 35 Parsons seniors submitted promptly started working with Borghi on a this is the first accessories collection he’s sketches and story boards to the contest’s line of bags for fall. “[Borghi is] so obsessed wholesaling, and it will be a continuing judging panel, which whittled applicants down with different types of cuts and things that I venture, in part because of the similarity in to five finalists. Upon graduation, the winner work on, so it was really a [collaboration] that the designers’ aesthetics. rucci says the will receive $10,000, a six-week internship at was meant to happen,” rucci says. horsehair and mesh pieces in particular Bendel’s and the opportunity to sell the bag Borghi, in fact, whipped up the sketches for reflect the look of his fall show, which is through the store. Two runners-up will each the collection within 10 days of their meeting, exactly the kind of mirroring he and Borghi receive $2,500. inspired, he says, by the clean lines of rucci’s hope to maintain in future seasons. “The line “We’ve always had an affection for the dresses. “I think ralph’s aesthetic and my has to have a relationship to the clothes, so category and we understand its importance know-how designing bags were merged,” says that there’s a continuity for the retailer,” he in the world of fashion and to customers, but Borghi, “and everyone was surprised by how says, noting that the collection’s commercial we found that in a lot of renowned fashion easily that happened.” value — despite its high sticker price — is schools, the access to that curriculum isn’t The seven-piece collection of architectural foremost on his mind. “We have to build in ways in there,” said Ed Bucciarelli, Henri Bendel silhouettes, called Chado ralph rucci by Leonello A Chado Ralph which [retailers] can merchandise the bags for the president and chief executive officer. “So we Borghi, is luxed up with horsehair, metallic mesh Rucci by Leonello most sales potential.” tried to figure out how to make some inroads and alligator. Developing the skins at a New Borghi bag. — Sarah Haight and champion the category.”

eye on Dining

WWD’s neWest aDvertising opportunity

3423_WWD_WeekendScoop_HAD_Strips_08.indd 1 2/6/09 4:21:18 PM 10 WWD, MONDAY, FEBRUARY 9, 2009

Innerwear Report Curve Sees Strong Showing on Both Coasts

A stand at the CurveNY show.

By Karyn Monget obviously, with one trade show in the market, we are very pleased be- cause it no longer divides the industry.” From left: Despite retail consoliDation anD frugal buDgets, teinturier was referring to its former rival lingerie americas, which Embroidered preregistration of buyers at the curvenV show in las Vegas and the said it would cease operations after european trade show giant eurovet’s silk caftan by curvenY show in Manhattan is strong, said laurence teinturier, purchase of a 30 percent stake in curveexpo in november. Josie Natori executive vice president of curveexpo inc. she noted that the number of brands for intimates, daywear, sleep- Couture; “We have approximately 1,800 registered buyers for both lingerie wear, robes, at-homewear, men’s innerwear and swimwear continues to Fashion fairs, and preregistration is 10 percent higher for new York over be “solid.”

Forms’ new last year. las Vegas is about the same,” said teinturier. “We have “We will have 150 brands at the las Vegas show, about the same as ericksen kyle by photos fashion plunge shaper, been marketing like crazy. not one day goes by that retailers are a year ago, and 200 brands for the new York show, double the number and Betsey not approached by our telemarketers. We know which brands the from 2008,” said teinturier. “it is the first time we have so many new Johnson retailers carry.” brands at both shows, with 25 in new York and 19 in las Vegas, and it’s Intimates’ teinturier said the marketing objective is to “measure re- definitely the men’s year at shows, with 14 brands at curvenV and 11 playful robe. tailers and make sure they are within our customer’s market. brands at curvenY. We are also very pleased that buyers will be able to circulate in the coterie show because we’ll be sharing badges with the coterie.” the curvenV fair is scheduled at the Venetian resort Hotel from feb. 16 to 18. the feb. 22 to 24 curvenY show will be in the ADVERTISEMENT galleria at the Jacob K. Javits convention center. addressing the recession and its impact on exhibitors, teinturier said, “because of the troubled economy, we are trying to convince exhibitors to take less space. We feel exhibitors should have a re- underneath it all turn on their investment. We hired a contractor who can customize a stand without too many expenses, whether it’s with visuals or by using different colors.” A PREVIEW OF THE SEASON’S NEWEST INTIMATES teinturier would not give a price range for stands, but noted that “prices are not lower or higher.” the cost generally starts around $8,000 for a stand and several chairs, according to exhibitors. regarding the fair in las Vegas, teinturier said, “this will

Pascale Madonna, renowned for her fi t, has designed the ultimate lingerie collection women will adore! Now available in sizes A-DDD. Also unveiling PM Studio - designed and priced to perfection! For more information, contact: Joel Orenstein at 718.482.0100 (x225) or [email protected]. 33 East 33rd St. Suite 901, NYC 10016 WWD, MONDAY, FEBRUARY 9, 2009 11 WWD.COM Innerwear Report Curve Sees Strong Showing on Both Coasts VEGAScurvexpo.com be our eighth season in las vegas, and we now have roots there. everybody west of the mississippi is shopping las vegas. curveNv draws 40 percent of its lingerie buyers from the West coast, 44 per- cent from the east coast and the mountain and central regions, and 16 percent represent international buyers from canada, as well as australia, Japan, mexico and even europe. “the turnout has always been strong in las vegas because people feel they are on vacation and it’s now so affordable. Some flights on airlines such as Jetblue offer round-trip fares for $90, and you can find hotel rooms from $45 to $219 for a suite per night. it’s very affordable.” addressing the New York edi- tion, she said, “a majority of buy- ers in the east, including Quebec, will be shopping curveNY. Seventy-five percent of our buyers in the east are coming from New York, New Jersey, connecticut, maryland, Pennsylvania and massachusetts.” a highlight of curveNv will be A sexy set at a cocktail party, informal model- CurveNV. Fall/Winter ing and a raffle on feb. 16 at the venetian, where guests can meet 2009 Collections Josie Natori, founder of Natori co. there will be a roundtable seminar on feb. 17 titled “Navigating the Storm,” which will be Feb 16,17,18 coordinated by ellen lewis, owner of intimate Product concepts inc., a consulting firm. Speakers will include Jim West, an account LAS VEGAS executive at chantelle; Guido campello, executive vice president Venetian Hotel of merchandising and innovation at cosabella, and Joe Smith, man- ager of international logistics and specialty stores sales manager at Wacoal america. details of presentations at curveNY have not been finalized. Wrubel Bares Internet Ideas Noah Wrubel, chairmaN aNd chief executive officer of bare Necessities, a brick-and-mortar and internet lingerie retail- er, presented a seminar last Wednesday on how brands and compa- nies can boost business in tough times. the event, “Getting intimate with the internet,” hosted by the intimate apparel council division of the american apparel & footwear association at the Grand hyatt New York hotel, also focused on the success of bare Necessities’ 10-year-old online business. Wrubel, who launched bare Necessities in 1997, a year before going online, told the 75 executives in attendance that the $35 mil- lion company has generated yearly compounded sales growth of more than 70 percent for the past 10 years. barenecessities.com garnered the 49th position on the top 500 Guide of apparel e-tailers. “We do everything ourselves, from se- lecting the merchandise to designing the Web site and creating the text to fulfill- ment and shipping,” said Wrubel. “today, we are the largest purveyor of men’s un- derwear online. We have one million vis- itors a month, have sold 2.75 million bras Fall/Winter and 1.9 million panties, and we have half a million e-mail subscribers.” 2009 Collections he added that the site offers 125 in- nerwear brands, as well as 226 bra sizes, Feb 22,23,24 ranging from 28dd to 58c. “Part of what we do is deciding what to NYC carry and not to carry, and that has put us in Javits Galleria Noah Wrubel

PHOTO BY STEVE EICHNER STEVE BY PHOTO a good stead over the years,” Wrubel said. “in 2008, we launched our first catalogue. but what i didn’t know was we were entering an economic tsunami.” Wrubel noted that 1.5 million catalogues were mailed last year. he said the secret to the company’s success is that staff members remained merchants, not tech geeks. “We decided we were retailers, and that thought was a great CURVExpo way to sell lingerie,” he said. “We believe the shopping experience online is a separate experience than a branding experience or a T: 203 698 7470 Web experience. We want to sell product and get customers moving [email protected] through the process quickly. “the only thing we don’t do is manufacture the product,” he said. “almost every contact we have with every customer is to ask for some feedback. it goes to everybody at the company and every morning my e-mail box is filled with customer comments. We try to fulfill customer comments, no matter how trivial. We never forget that the customer is king.” regarding best-selling categories, Wrubel said, “better [price] bras do a good business. Women who buy bras in the $50, $60, $70 curvexpo.com and $80 range are still buying bras. and shapewear is growing unbe- lievably online. i think it’s arrived as a product category unto itself. featuring it’s no longer a segment. Women now think of the shapewear piece they want to wear when they buy apparel.” NYC — Karyn Monget 12 WWD, MONDAY, FEBRUARY 9, 2009

MEOW MIX: There was nary a schoolgirl or sticker collection in sight Demsey, group president of the Estée Lauder Cos. Inc. and MAC, FASHION SCOOPS Thursday night when MAC Cosmetics and V Magazine hosted a very and chairman of the MAC AIDS Foundation. adult party at Chelsea’s Cedar Lake in honor of its new makeup “When the going gets tough, the world wants fashion,” said Stefano Gabbana and collection inspired by Hello Kitty. Demsey, noting that all of the dresses will be auctioned Domenico Dolce in “Nine.” Instead, two bare-chested, black latex-clad on eBay to benefit the Fashion Institute of Technology. male sentinels (sporting huge masks in the cat’s While Demsey declined to comment on projected likeness) greeted Lindsay Price, Fabiola Beracasa, sales, industry sources estimated that the line did model Behati Prinsloo and Cecilia Dean. Inside, guests more than $400,000 within three hours of being circled a display of 30 Hello Kitty-inspired outfits, offered for sale Tuesday on maccosmetics.com. It hit commissioned by MAC from designers like Emanuel New York City MAC stores on Thursday and will be on Ungaro, Hervé Léger, Zac Posen and Marchesa (they sale everywhere else on Feb.14. will be auctioned on eBay, with proceeds benefiting The Museum at FIT). HOT STUFF: Belstaff has tacked another blockbuster “It’s a dark, sexy Hello Kitty,” said Yigal Azrouël of movie to the list of films that have used its tough chic his black leather and fabric sheath creation. “She’s a jackets: “The Curious Case of Benjamin Button.” little punk.” After blanketing the sets of “The Aviator,” “Ocean’s Pink champagne and vodka cocktails and black Twelve,” “Penelope,” “The Departed” and “Blood bow-shaped cookies fueled the eclectic crowd, many Diamond,” among others, Belstaff vice president of whom admitted to being longtime fans of the Michele Malenotti hooked up with costume designer feline icon. “When I was younger, I had the school Jaqueline West to outfit Brad Pitt in the film nominated boxes with all of the pencils,” recalled pop singer for 13 Oscars, including the one for best costumes. Ciara. “It was a very big deal.” West tapped into Belstaff’s 85 years of history and It clearly still is, even for those well past their found three iconic styles that were slightly tweaked for

homework days. “A lot of the women in my life have steve eichner photo by the set. been very obsessed with Hello Kitty,” said John Ciara Throughout the different phases of his unusual

splash news photo by

MEN IN BLACK: Dolce and Gabbana are back on film, and this time it’s safe to say that “fathers” Stefano and Domenico are cast against type. Adding to a star-studded cast that includes Daniel Day-Lewis, Marion Cotillard, Judi Dench, Kate Hudson, Nicole Kidman, Penélope Cruz, Stacy “Fergie” Ferguson and Sophia Loren, the film eye on Hot SPotS “Nine,” directed by Rob Marshall, will feature a cameo with Stefano Gabbana and Domenico Dolce playing the roles of priests. The musical film, based on the 1982 Broadway musical, inspired by Federico Fellini’s “8 1/2,” is due out at the end of November. The designers were captured by paparazzi last week in Rome during an in-between-scenes break, clad in long black ecclesiastical gowns. The duo are no newcomers to movie sets: They both acted in the 1995 “L’Uomo delle stelle” (The Star Maker), which was directed by Giuseppe Tornatore and was nominated for an Academy Award in the Best Foreign Film category. Their characters were quite a stretch from their real life roles, with Domenico playing a farmer and Stefano playing a photographer, though maybe not quite the role eye on travel Put down the Blackberry. Pick up the wine glass. reversal their new priestly personas require.

BY THE SEA: With seaside stores in Miami and Palm Beach, Tomas Maier is extending his retail reach to another coastal town, Wainscott, in the heart of the Hamptons. The boutique, set to open this spring in a former diner on Montauk Highway, will showcase his eponymous line of swimwear and knitwear for men and women as well as ready-to-wear and accessories exclusive to the location. Other items personally selected by German-born Maier, designer and Bottega Veneta’s creative director, include jewelry, WWDeyeScoop apparel, accessories, design objects and books. The 1,800-square-foot shop boasts a garden and patio, eye on relaxatIon while the store’s interior wood plank floors and white washed wood walls add to the East Hampton feel. Advertise in the all-new WWD EyeScoop and get in BOYS WILL BE BOYS: Kellogg’s may have canceled its endorsement deal with Michael Phelps after he admitted front of the industry’s power players — influential, affluent to smoking pot, but Speedo is standing by its 23-year-old Olympian, to whom it gave a $1 million bonus after he consumers — as they plan their weekend. won eight gold medals last fall. “Speedo would like to make it clear that it does not condone such behavior, and we know that Michael truly regrets his actions,” stated the performance swimsuit company. “Michael Phelps is a valued member of the Speedo team and a great champion. We will do all that we can to support him and his family.” Coming this spring eye on SHoPPInG BIG NIGHT: Jason Wu’s profile has skyrocketed since dressing Michelle Obama for the inaugural balls. On Thursday night, Angela Mariani and Anne Fahey-Storment of C & M Media, which handles Wu’s publicity, hosted a party to celebrate Wu. Philip Crangi, Monica Botkier, Bergdorf Goodman’s Roopal Patel, and Kirna Zabête’s Beth Buccini and Sarah Easley braved the cold to congratulate the 26-year-old designer. Half an hour into the shindig, Want to be a part of the action? the penthouse at the SoHo Grand Hotel reached full Contact Christine Guilfoyle, publisher at 212 630-4737, or your WWD representative. capacity, and arriving guests such as Olivia Chantecaille, Olivia Palermo and James Scully were asked to wait in the hotel lobby for a while — which they all happily did for the designer, who seemed unfazed by the sudden spotlight. “These are all people who supported me from day one,” he said. The one fan missing, though, was the First Lady herself. “I think she is busy with politics,” Wu said. WWD, MONDAY, FEBRUARY 9, 2009 13 WWD.COM

life as Button, Pitt dons a mud LET’S TALK ABOUT SEX: Paris Kain of Abraxas LVMH Pulling Fendi Scent brown bomber, a shearling coat and a Rex jewelry isn’t Alexander Wang’s only distressed belted safari style the actor collaborator this coming fashion week. Wang MILAN — Just 18 months after relaunching the Fendi sports while saddled to a cherry red also worked with Proper Attire and created a fragrance business, LVMH Möet Hennessy Louis Indian motorcycle. But the lights and special packaging design for a new collection Vuitton announced Friday it will pull the brand’s action aren’t winding down at Belstaff, of limited edition Proper Attire condoms. The sole scent off the market. whose jackets will also appear in the limited edition Proper Attire by Alexander The company will stop selling its Fendi Palazzo latest “Harry Potter” movie due out Wang line of condoms will make their debut women’s fragrance, which it introduced in 2007, in mid-July, in Quentin Tarantino’s in the front-row goodie bags at Wang’s show, due to sales that “while encouraging, didn’t meet “Inglourious Basterds” and in the new Poppy Delevigne for Myla. which, rather appropriately, is scheduled expectations” in 2008, stated Gabriella Scarpa, “Terminator,” both scheduled for the on Valentine’s Day. Those who don’t have country general manager for LVMH Perfumes and Cannes Film Festival. the pleasure of being there can also buy the designer condoms at Cosmetics in Italy. At the time of its introduction, Thompson Hotels, and Properattirecondoms.com, with proceeds industry sources estimated Palazzo would ring up MYLA’S NEW MODEL: Model and party fixture Poppy Delevigne benefiting Planned Parenthood. “I used a spare design that felt $50 million in global retail revenues during its first is the face and body of lingerie label Myla’s spring 2009 sexy, modern and empowering,” Wang pointed out. year on counter. campaign, stepping into the shoes of Lydia Hearst, who modeled the line for fall. The campaign, shot by Vanina Sorrenti — Mario SALON STYLE: Come London Fashion Week, it looks like designers’ Sorrenti’s sister — was inspired by 1970s romanticism, and showrooms could be a rival to the runways. As perhaps a sign BEAUTY BEAT the images spotlight Delevigne lounging on a wicker chair in of the newly austere times, a number of designers in the city pieces such as a caramel lace balconette bra and a floaty chiffon have opted to put on low-key presentations instead of catwalk An LVMH spokesman in Italy declined further camisole. Delevigne, who’s recently decamped to New York from extravaganzas. Modernist, Louise Gray, Maria Grachvogel, comment, but market sources believe that despite her native London, has also chalked up campaigns for Anya Aminaka Wilmont and Antoni & Alison will all hold presentations the setback, Fendi will forge ahead with a fragrance Hindmarch and Bamford & Sons in the past. The Myla campaign in lieu of a show, while Mulberry will hold its usual a day of business at a later date. images were unveiled in Myla’s London stores last week. presentations Feb. 23. Palazzo was Fendi’s first major fragrance launch in collaboration with the company’s distribution partner, Christian Dior Perfumes and Cosmetics. Unveiled at a major press event in Rome in summer 2007, Palazzo was Fendi’s first scent to be introduced since the mid-Eighties. Its rectangular bottle with a graphic black sketch of a building was meant to re- semble Fendi’s headquarters. Karl Lagerfeld shot images for Palazzo’s ad and also for a storybook, called “Palazzo,” to accompany the scent’s launch. The Palazzo fragrance was distributed in 1,500 doors in the U.S., Canada and Europe beginning in September 2007 and then went to Asia in 2008. At the time of the launch, Michael Burke, chief ex- ecutive officer of Fendi, said the scent’s distribution network would progressively grow along with Fendi’s fragrance portfolio, which was to include a men’s eye on Hot SPotS scent in 2008 and another women’s fragrance in 2009. All previous Fendi fragrances had been removed from the market after the end of the brand’s beauty license with Gucci Group’s YSL Beauté division in 2005. Also at the time of launch, Burke estimated Fendi’s beauty business would account for 10 percent of the company’s total sales in five years, and that a beauty line could diversify into other categories, such as a spa line. None of this took place. Instead, there’s been a gradual line extension added. In the second half of last year, an eau de toilette was introduced, for instance. “Perhaps their expectations were too big,” said Antonella Mandelli, general manager of Mazzolari, one of Milan’s leading perfumeries. “It’s a very strong signal they are sending out, as they realized it wasn’t eye on travel Put down the Blackberry. Pick up the wine glass. performing how they wanted it to. Other companies should have the courage to do the same thing.” The Fendi fragrance business was not discussed during LVMH’s financial analyst meeting Thursday, when the Perfume and Cosmetics division was laud- ed. It posted sales of 2.87 billion euros, or $4.22 bil- lion at average exchange for the period, in 2008, up 5 percent on-year. Its organic growth was 8 percent and current operating margin came in at 10 percent for the first time. The division logged gains in all markets in local currencies: 20 percent in Asia, 10 percent in the U.S. and 3 percent in both Europe and Japan. WWDeyeScoop — Stephanie Epiro, eye on relaxatIon with contributions from Jennifer Weil Advertise in the all-new WWD EyeScoop and get in Nu Skin Profits Spike Skin care product launches in China and year-ago front of the industry’s power players — influential, affluent restructuring charges helped Nu Skin Enterprises Inc. more than double its fourth-quarter profits, the consumers — as they plan their weekend. company reported Friday. In the period ended Dec. 31, the Provo, Utah- based firm posted net income of $14.5 million, or 23 cents a diluted share, a 140.2 percent increase from $6 million, or 9 cents a share, in the prior-year period. In the 2007 quarter, the company incurred Coming this spring $17 million in pretax restructuring charges. eye on SHoPPInG Quarterly sales were up 3.8 percent to $317.6 million from $306.1 million a year ago. “Our success was largely attributed to positive momentum in our skin care business,” Truman Hunt, president and chief executive officer of Nu Skin, told Wall Street analysts during a conference call Friday. Growth in Japan also helped drive results, said Hunt, who added that the Japanese market contin- Want to be a part of the action? ues to be a target for future growth. Contact Christine Guilfoyle, publisher at 212 630-4737, or your WWD representative. “Our skin care business is capitalizing on the suc- cess of the Galvanic Spa System, [which launched in China,” he said. Full-year profits jumped 48.9 percent to $65.3 million or $1.02 a share, from 43.9 million, or 67 cents a share, in 2007. Annual sales reached $1.25 billion, a 7.8 percent in- crease compared with $1.16 billion during the prior year. — Matthew W. Evans 2x4 (left)

14 WWD, MONDAY, FEBRUARY 9, 2009 WWD.COM MEMO PAD MANCONE JOINS ARMANI: Giorgio Armani SpA has appointed Fabio Mancone director of licensing and communications for the group, confirming a WWD Memo Pad item. In addition to the duties held by his predecessor, Robert Triefus, who left the company last year to join Gucci Group, Mancone will be in charge of Armani’s licensing division. Mancone, 42, is currently senior vice president, European marketing and communications, and general manager, Menswear Luxury Labels, for Polo Ralph Lauren. He will take on his new post by the end of February, most likely in time for Milan Fashion Week. Before joining Ralph The latest Tommy Hilfiger campaign is shot throughout Los Angeles. Lauren in 2004, Mancone was international general manager spring media allocation and paging said the company is looking for a for Giorgio Armani Fragrances levels consistent with the same replacement. — Stephanie D. Smith and Cosmetics, within the Luxury period last year. — Amy Wicks Products division of L’Oréal in WEATHERPROOF’S 15 SECONDS: Paris, where he also acted as ANOTHER EXIT FROM INTERVIEW: Feisty outerwear marketer director of image worldwide Interview lost yet another executive Weatherproof Garment Co. for Lancôme International and this week, but this one left before was set to get more than the Ralph Lauren International her first day of work. Samantha Andy Warhol-prescribed 15 Fragrances. Previously, he had Fennell, who was named publisher seconds of fame with three handled international brand and of Interview when Alan Katz left five-second commercials on business development at Kraft Brant Publications in January, was WCBS in metropolitan New York Foods. He began his career in due to report to her new job last on Sunday. Two Weatherproof 1990 at Unilever, where he was Monday. But she declined the role commercials were scheduled to international brand manager on after the sudden exit of coeditorial air on the 8 p.m. broadcast of various products. — Luisa Zargani director Fabien Baron and creative the “51st Grammy Awards,” and director Karl Templer. a third was to precede them on TOMMY ON THE ROAD: After six “After learning of the recent “60 Minutes,” in a spot slated seasons of running ad campaigns editorial changes and evolution to appear during Katie Couric’s against the backdrop of iconic that the magazine is undertaking, interview with U.S. Airways pilot American landscapes such I thought it best that I pursue as Olympic National Park in other opportunities where I can Washington state, Tommy Hilfiger better utilize my skill set and is introducing a new theme for affect positive change. I wish spring that will celebrate U.S. them all the best,” said Fennell in cities. “This campaign is slightly an e-mail on her decision. more upbeat than seasons past Fennell, previously an associate and shows a renewed optimism publisher of Elle, was due to and attitude about the brand,” join Interview after working for said Avery Baker, executive vice President Obama’s campaign for president of global marketing and six months. But the sudden ouster communications. of Baron and Templer last week First up, the creative team caused Fennell to reconsider. Weatherproof’s ad. traveled to Los Angeles, with For one, she learned of the Document4 7/11/03models 5:59 including PM PageShannan 1 departures from outside sources Chesley “Sully” Sullenberger Click and Missy Rayder, shot by as the news broke late on Friday of Flight 1549. Ahead of the photographer Phil Poynter in breezy night, as opposed to having top three Sunday-night spots, scenes staged at familiar locales, executives at Brant, including Weatherproof racked up some including an actor’s trailer in coeditoral director Glenn O’Brien, serious media miles. Coverage Malibu, cruising Sunset Strip and tell her themselves. “It was bad of its unsuccessful efforts to the Griffith Park Observatory. The timing,” said O’Brien. “Maybe secure superbrief Super Bowl ads brand will continue to advertise we had less of an understanding has appeared in The Wall Street aggressively in magazines, with a than we thought we did.” O’Brien Journal and CNN’s “Campbell Brown: No Bias, No Bull,” among other outlets. These reports apparently caught the famous eye of CBS. Freddie Stollmack, president of Weatherproof, said the TV network contacted the apparel company with an offer of time for its black-and-white, animated, five-second mini commercial, and the two parties concluded the deal Thursday morning. “It’s a supply-and- demand situation,” Stollmack acknowledged of the offer to air the brand’s three commercials — all for less than $75,000. A CBS spokeswoman declined comment. Weatherproof already made the five-second commercial play in the New York market during the American Football Conference championship game, also on WCBS, Jan. 18, and the Macy’s Thanksgiving Day Parade on WNBC, Nov. 27. — Valerie Seckler ENGEL OUT AT DETAILS: Associate publisher Jamie Engel is out at Details, after spending a year with the magazine. His last day was Friday, and a spokeswoman said Engel and vice president and publisher Steve DeLuca mutually decided a change was needed. — A.W. WWD, MONDAY, FEBRUARY 9, 2009 15 WWD.COM Financial Industry Job Losses Mount, Iconix Sues Hansel for Breach of Contract By Matthew Lynch while still under contract. August that allowed him to Hansel founded Rampage prepare a new line of junior Unemployment Hits 7.6% ICONIx BRAND GROUP INC. in 1983 and sold the brand to sportswear for spring contin- has filed a breach of contract Iconix in 2005 for $45.9 million gent on him making $1.9 mil- By Liza Casabona suit against Rampage founder in cash and stock. He stayed on lion in royalty payments. The Larry Hansel for allegedly com- as designer and distributor until suit alleges Hansel has not WASHINGTON — Apparel and textile manufacturers cut 9,600 jobs in peting with the company, to October 2008. made the payments in full and January and department stores slashed 8,600 positions as U.S. pay- which he sold the brand more Hansel did not return calls was thus in violation of the rolls fell by 598,000, the worst loss in 34 years. than three years ago. seeking comment. contract in bringing his new The U.S. Labor Department said employment at department In a complaint filed in federal The suit alleges that Los lines to market. stores fell to 1.5 million workers, and specialty stores added 1,400 court in Manhattan on Feb. 3, the Angeles-based Hansel Clothing In November, he told WWD of positions to employ 1.45 million. New York-based brand manage- started work on a directly com- his plans to launch Grass, a junior Unemployment rose to 7.6 percent in January from 7.2 percent ment firm, through its subsidiary petitive line last year in antici- sportswear line, in 500 depart- the previous month. IP Holdings LLC, accused Hansel pation of the end of the non-com- ment stores in mid-February. Since the recession started in December 2007, the overall econo- and his company, Larry Hansel pete agreement in December. Iconix is seeking $1.5 million my has shed 3.6 million jobs, with close to half of those evaporating Clothing Co. LLC, of violating a In court documents, Iconix in damages from Larry Hansel in the three months since November 2008. clause barring him from direct- said it entered into an amend- Clothing Co. and $1 million from “The worst is yet to come,” said Richard Yamarone, director of ly competing against Rampage ed agreement with Hansel in Hansel individually. economic research at Argus Research Corp. A one-month loss of as many as one million jobs or more is a pos- sibility, Yamarone said. The U.S. hasn’t posted a monthly job loss that steep since 1945. Citigroup Accused in AEO Lawsuit President Obama said the job figures were “devastating,” and he used the report to reinforce the necessity for quick action on the AMeRICAN eAGLe OUT- ties and “sought to conceal” that is “unable to access this substan- stimulus plan. fitters Inc. last week filed a law- information from the retailer. tial portion of its cash, causing As consumer spending dropped last month, layoffs across all sec- suit against Citigroup Global A spokeswoman for Citigroup the company to turn to borrowed tors were announced, including cuts at Target Corp., Saks Inc., Macy’s Markets alleging that Citigroup on Friday declined comment. funds to ensure uninterrupted Inc., Liz Claiborne Inc., The Bon-Ton Stores Inc., Home Depot Inc., “induced” the specialty chain to Auction rate securities are operations.” The lawsuit also said Starbucks Corp, The Boeing Co. and Caterpillar Inc. buy $258 million worth of auction long-term bonds and preferred it had been “forced to reduce its “There is no end in sight to the huge payroll declines, as rate securities that turned sour. stock with interest rates or divi- business activities and forgo stra- high-profile layoff announcements keep coming,” said Nigel The lawsuit, filed on dend yields that are reset through tegic transactions due to the lack Gault, chief U.S. economist at IHS Global Insight. “February Wednesday in federal district periodic auctions. The ARS mar- of immediately available capital.” might be even worse than January. The job losses are deep and court in Pittsburgh, alleged that ket collapsed in February 2007. The lawsuit includes allega- broad. This month was especially harsh in manufacturing, as Citigroup made “false and mis- The complaint said American tions of fraud under federal and producers tried to keep inventories under control in the face of leading statements” by represent- eagle keeps “substantial funds state laws and negligent misrep- plunging demand.” ing that the securities were safe readily available in the form of resentation. American eagle Apparel factors lost 4,200 jobs, bringing employment in the sector and liquid instruments suitable cash or highly liquid assets with is seeking compensatory and down to 178,700. Textile mills, which make apparel fabric, cut 3,100 to the retailer’s “conservative in- which to satisfy a variety of busi- punitive damages and a rescis- jobs to employ 134,400 workers. Textile product mills, which manu- vestment policies.” The plaintiffs ness contingencies.” sion, or an undoing, of all ARS facture industrial and home furnishing fabrics, trimmed payrolls by charged that Citigroup knew of Because of the illiquidity of the purchases. 2,300 to employ 139,600. the loss of liquidity for the securi- securities, American eagle said it — Vicki M. Young “Job losses in the industry are skyrocketing as retail demand has collapsed,” said Cass Johnson, president of National Council of Textile Organizations. North Carolina has been particularly hard hit by job losses, with statistics showing that 13 textile plants closed during the last year, he said. The test of time. In bRIEf • SEARS SWITCHES CIO’S: Sears Holdings Corp. said it has brought in a new chief information officer: Timothy Kasbe, formerly cio at Indian chain Reliance Retail Ltd. He has also worked at IBM and Andersen Consulting. Sears’ former cio, Karen Austin, is now presi- dent of the company’s home electronics business unit. Previously, she was cio for Kmart, a unit of Sears.

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WWD_3.875x5.indd 1 2/6/09 9:53:06 AM 16 WWD, MONDAY, FEBRUARY 9, 2009

Financial Specialty Store Spin-offs Face Uphill Climb in Struggling Sector

By Alexandra Steigrad pany founder Manny Mashouf, who has returned to the he said. “We know the market is there.” ceo role, should “aggressively reduce bebe sport, by ei- cerny said J. crew Group has been able to target the It’s never been harder to be a stepchIld. ther closing stores or converting them to bebe or bebe post-abercrombie demographic with much success, and In a sequence of store closings, layoffs, huge promo- accessory stores.” the creation of ruehl has been a way to recapture their tions, inventory reductions and stalled expansion plans, beder described bebe sport as “outdated and unfo- clientele. specialty retailers hoping to survive the economic crisis cused, at best, and not worthy of management’s limited “If someone’s going to capitalize on the abercrombie may have to use more than a scalpel to cut costs. With time right now.” customer, why shouldn’t we?” he said. no signs of a letup in the recession and many secondary no new store openings are slated for the 63-store to accomplish this, cerny said ruehl will continue brands failing to gain traction with consumers, some re- chain, company management said, as bebe focuses on investing in marketing, new products and the store ex- tailers may be forced to wield an ax and sever their spin- its newer outlet concept, 2b bebe. perience. offs, analysts said. although bebe does not break down earnings by divi- “It takes years to get brands going,” he said, noting that “In this kind of economic climate, with cash being king sion, the company said it will continue to evaluate the ruehl has only been around since 2004. “but it is a very and [inventory] liquidation being essential, each busi- difficult time to start new concepts.” ness has to pay for itself,” said dana telsey, president In January, comps at a&F’s abercrombie and of telsey advisory Group. hollister spin-offs both fell 24 percent. ruehl’s the fate of the spin-offs is certain to come under slipped 17 percent. scrutiny now that retailers have finished their fiscal the track record for spin-off brands is less than years and are preparing to release fourth-quarter stellar, and the deteriorating economy only exac- and full-year results. erbates these “flawed” concepts, said retail analyst “anything’s up for discussion,” said retail analyst Jeff van sinderen of b. riley & co. van sinderen amy Wilcox noblin of pali capital. “retailers are cited american eagle outfitters’ Martin + osa seriously cutting back. no one knows when demand brand, launched in sept. 2006, as an example. comes back.” targeting 28- to 40-year-olds, mall-based M+o Intolerance for weak offshoots was building even in 2007 lost $50 million, or 15 cents a share. last before the recession hit with its full fury. an exam- year’s loss, which will be announced with fourth- ple is pacific sunwear of california Inc.’s departed quarter earnings, will be “higher,” said Joan urban-inspired spin-off, d.e.m.o. the brand shed 74 holstein hilson, american eagle executive vice stores in spring 2007, before shutting down the re- president and chief financial officer. maining 154 stores in January 2008. american eagle said it would not be adding to the closures followed a string of weak financial M+o’s 28-store count in 2009. performances. For fiscal 2007, the retailer posted a “In my opinion, if Martin + osa does not im- net loss of $30.4 million on $1.45 billion in sales. the Pacific Sunwear closed prove by the end of the year, they will be gone,” company said the pacsun division had an income D.e.m.o. in January 2008. van sinderen said, adding that the company has from continuing operations before taxes of $218.6 set “very tight” guidelines for 2009, one of which million, on revenue of $1.31 billion, while d.e.m.o. he said includes cutting its operating loss in half. put up a net loss from continuing operations of $106 marketing dollars for sport, and will “reduce the total While M+o did not offer a detailed projection, M+o million on sales of $148.3 million. For the year, d.e.m.o. dollar spend if sales do not show improvement.” president laura dubin-Wander indicated in an inter- reported a 19.6 percent comparable-store sales decline, abercrombie & Fitch co.’s 26-unit “post-collegiate” view that she hopes the store brings in at least $375 a while pacsun specialty and outlet stores posted a 3.4 ruehl is another struggling spin-off with no plans for square foot, but declined to comment on how much it percent comp increase. pacsun also elected to abandon new stores. Instead, a&F said it intends to focus on fine- currently generates. its fledgling one thousand steps concept during the tuning the concept, which generated $39.1 million of the a similar experiment by Gap Inc., Forth & towne, fourth quarter of fiscal 2007. parent firm’s $2.54 billion in sales in the first nine months was shuttered in February 2007 after an 18-month, pali’s noblin said bebe stores Inc.’s athletic apparel of fiscal 2008. ruehl’s comparable-store sales declined 22 19-unit effort. concept, bebe sport, is a “business that has never proven percent during the nine months. even the once-expansive dubin-Wander said M+o produced a comparable- itself ” and may suffer a fate similar to d.e.m.o.’s. the re- hollister was off 12 percent during the same period. store sales rise of more than 40 percent for november- cent departure of corporate chief executive officer Gregory “I remain unconvinced that there is a market for ruehl,” december. scott makes the situation “uncertain,” she added. said citigroup retail analyst Kimberly Greenberger, who some analysts said the increase could be misleading “It is no secret that bebe has struggled with product observed that it is “very easy to target an age group,” or to because the store marked down merchandise in order to and second concepts for some time in addition to a weak let age “define a demographic,” but once a consumer is out clear out inventory during the holiday period, but M+o’s consumer,” noblin said, noting that, over time, the retail- of college that effort becomes more difficult. management sees the results as a positive sign. er’s apparel has seemed to target a 30-plus customer, in- although her complaint can be applied to any retail- “We are thrilled they [consumers] see such an appetite stead of its younger, core contemporary customer, making er trying to box in 20- to 40-somethings, she said ruehl’s for this brand,” dubin-Wander said, while acknowledging the management change “not necessarily negative.” “problem” is that it feels “meaningfully younger” than there are significant challenges for mall-based retailers. retail analyst eric beder of brean Murray, carret & its rivals. “We want head-turning prices,” she said, adding that co. said scott’s decision to double the bebe sport chain eric cerny, abercrombie’s manager of investor rela- M+o has factored higher quality fabrics, such as cash- over the past three years hurt the retailer, and that com- tions, disagreed. “We think ruehl is a viable concept,” mere, into the price-value equation. although this may be a good move, van sinderen said retailers offering higher price points aren’t going to motivate people to shop. “the aspirational customer We See Opportunities isn’t so aspirational anymore,” he said. “their aspirations have gone down a few notches.” Where Others See Issues van sinderen said retailers Successful companies take advantage of the opportunities that changing times are looking at their concepts’ present. But growing companies often face financial issues in times of change. level of profitability and their It takes a knowledgeable eye to see beyond fixed formulas or capital ratios to lease contracts. the Wet seal Inc.’s contempo- fully comprehend the complex financial needs of businesses. For over 70 years, rary women’s apparel concept, mid-size and large businesses have relied on Rosenthal & Rosenthal to manage arden b., has seven to nine leas- their accounts receivable and to provide timely financing for growth. Business es up in the next few years, he owners and managers have access to the key decision makers at Rosenthal, noted. Instead of the retailer in- which enables them to obtain quick and informed responses to their most curring an expense from closing down arden b. stores outright, it pressing business needs. would be beneficial to either re- negotiate the leases, convert the Domestic & International Factoring—Letters of Credit stores to Wet seal nameplates Working Capital Loans—Term Loans—Collateral Management Services or shutter them once the leases have expired, he said. however, van sinderen said it might be too early to forecast arden’s death because the com- pany has lowered its inventory and has had fewer promotions, allowing it to sell more merchan- dise closer to full price. In 2007, arden b. had an oper- NEW YORK LOS ANGELES SHANGHAI ating loss just under $15 million and sales of $132.8 million, while Wet seal had operating income of For a confidential consultation, please contact Michael Stanley: $69.2 million on revenue of $478.4 212 356-1497 or [email protected] million. For the nine months of ROSENTHALINC.COM this fiscal year, arden b. cut its operating loss to $2.1 million WWD, MONDAY, FEBRUARY 9, 2009 17 WWD.COM Financial For full daily stock changes, see WWD.com. Weekly Stocks 52-Week Volume Amt 52-Week Volume Amt Specialty Store Spin-offs Face Uphill Climb in Struggling Sector High Low Companies p/E Last Change High Low Companies p/E Last Change

and brought in sales of $77.2 million, while Wet Seal 82.06 13.66 Abercrombie & Fitch (ANF) 4.3 20168366 20.96 3.11 51.42 13.95 J.C. Penney (JCP) 4.3 52090702 15.83 -0.92 recorded operating income of $51.9 million on sales of 26.78 9.04 Acadia (AKR) 9.1 1587930 12.05 0.38 7.70 2.00 Jaclyn (JCLY) - 2000 3.50 0.50 $360.3 million. 3.78 0.47 Aeffe * (AEF:MI) - 391488 0.58 0.01 1.67 0.24 Joe’s Jeans (JOEZ) 3.1 556031 0.28 -0.07 “We recognize that we need to stabilize sales at Arden 37.40 12.52 Aéropostale (ARO) 10.9 14475658 23.66 2.55 22.12 2.34 Jones Apparel (JNY) - 11065530 3.67 0.21 B. to achieve profitability in the business,” president and 29.40 19.32 Alberto Culver (ACV) 10.9 3708083 25.92 1.46 50.58 15.38 Jos. A. Bank (JOSB) 8.8 2460214 26.99 -0.47 chief executive officer Edmond Thomas said during the 12.85 1.45 American Apparel (APP) 5.7 1226259 2.20 0.17 19.74 5.52 Kenneth Cole (KCP) - 540026 8.43 2.04 company’s third-quarter earnings call. “We do not feel 23.73 6.98 American Eagle (AEO) 6.4 25578632 9.64 0.63 47.80 9.56 Kimco Realty (KIM) 9.4 45949620 13.38 -1.00 comfortable, though, that we can operate at a much 29.23 3.74 Ann Taylor (ANN) 8.4 6335734 5.99 1.07 56.00 24.28 Kohl’s (KSS) 12.4 37235962 38.48 1.77 smaller operating loss than that incurred in fiscal 2007, 420.00 112.50 Asos * (ASC:L) 33.8 859372 290.00 17.25 20.76 9.55 K-Swiss (KSWS) 10.9 586481 11.17 0.45 at just about any reasonably foreseeable sales level.” 45.34 17.45 Avon (AVP) 10.7 33905907 22.73 2.28 18.98 8.28 LaCrosse Footwear (BOOT) 8.7 18852 10.00 -0.76 Thomas noted that Arden B. had a 20.2 percent fall in comps last quarter, and said the company’s “best 13.83 4.57 Bebe (BEBE) 9.3 2280948 6.11 0.46 22.16 6.90 Limited Brands (LTD) 5.1 30398725 8.85 0.93 current option is to continue efforts to turn around 56.72 32.32 Beiersdorf * (BEI:HM) 14.6 5430836 35.77 -2.52 22.70 1.46 Liz Claiborne (LIZ) - 8529905 2.58 0.38 the Arden B. business, even with running the business 13.30 4.80 Benetton Group * (BEN:MI) 7.4 1224136 6.12 0.41 3.99 0.35 LJ Intl. (JADE) 8.7 224617 0.62 -0.13 at a nominal operating loss for at least in near term.” 5.12 0.30 Birks & Mayors (BMJ) 0.3 14400 0.33 -0.09 99.97 50.00 L’Oréal * (OR:PA) 12.0 5322429 54.95 2.85 There are some bright spots in the secondary 44.29 28.27 BJs (BJ) 13.6 18702438 30.25 1.57 37.33 5.91 Lululemon (LULU) 11.9 1934733 7.82 1.02 brand business. Rock-inspired Hot Topic Inc.’s Torrid, 0.29 0.07 Blue (BLHI) - 12250 0.07 -0.01 26.66 10.62 Luxottica * (LUX:MI) 12.1 6837977 11.74 0.69 a plus-size concept aimed at teens and young adult 5.50 0.55 Bluefly (BFLY) - 9449 0.85 0.17 89.36 38.10 LVMH * (MC:PA) 11.7 11961866 50.02 7.22 women, has tapped into a unique market. 10.50 0.76 Bon-Ton (BONT) - 366150 1.39 0.02 76.50 8.31 Macerich (MAC) 6.4 16280555 15.09 0.35 At a time when the dominant plus-sized retailer, 18.44 4.16 Brown Shoe (BWS) 5.4 3589330 4.55 -0.14 27.08 5.07 Macy’s Inc. (M) 5.5 114266555 9.70 0.75 Lane Bryant parent Charming Shoppes Inc., is cut- 44.57 13.57 Buckle (BKE) 11.0 3648420 24.41 3.26 17.59 6.25 Maidenform (MFB) 7.4 584428 9.54 0.59 ting jobs and costs, Torrid is a “complete standout,” 11.48 2.97 Bulgari * (BUL:MI) 8.0 12154328 3.43 0.19 669.00 191.90 Marks & Spencer * (MKS:L) 6.7 77390603 269.50 38.50 having “substantially outperformed” its rival, said Citigroup’s Greenberger. 686.50 154.75 Burberry * (BRBY:L) 8.7 20456004 289.75 36.75 27.64 8.33 Men’s Wearhouse (MW) 8.0 3987875 12.29 0.64 Not only is Torrid grabbing share from other plus-size 16.29 4.18 Cabela’s (CAB) 4.9 1927391 6.32 0.71 26.50 5.94 Movado (MOV) 4.6 1178471 8.51 0.83 retailers, Greenberger said it is succeeding at a time when 14.86 1.41 Caché (CACH) 10.4 523734 1.99 0.12 25.00 10.03 National Retail Prop. (NNN) 11.8 9196280 16.34 1.91 most women’s businesses in the teen space are struggling. 54.20 24.16 Carrefour * (CA:PA) 10.4 16511822 27.85 1.06 12.12 0.82 New York & Co. (NWY) 8.5 1443633 2.19 0.21 Torrid has a 1.7 percent comp decline for the year, while 22.39 11.94 Carter (CRI) 12.4 3682945 16.84 -0.15 0.10 0.05 NexCen (NEXC) - 605189 0.06 0.00 older sibling Hot Topic has had a 6 percent gain. 4.95 0.35 Casual Male (CMRG) - 616951 0.46 0.08 70.60 42.68 Nike (NKE) 12.6 16006362 48.68 3.43 In this environment, a “modest comp decline” is 19.38 11.30 Cato (CTR) 13.9 917388 15.00 1.77 1.94 0.03 Nitches (NICH) - 19780 0.19 0.04 good, said Greenberger, who added that Torrid is 27.55 2.53 CBL (CBL) 9.0 9709727 4.80 0.73 39.52 6.61 Nordstrom (JWN) 5.4 35661870 14.19 1.50 doing well because it is “fashion-focused.” Although 9.75 2.75 CCA (CAW) 4.9 170086 2.79 -0.29 10.49 5.95 Orchids Paper (TIS) 17.8 60160 10.35 1.49 most retailers and vendors have moved toward basics 1.92 0.18 Charles & Colvard (CTHR) - 63446 0.35 0.09 29.88 4.48 Oxford (OXM) 6.5 751229 6.57 -0.09 during this period of economic stress, Torrid “did the opposite, and it has paid off,” she said. The company 20.61 3.98 Charlotte Russe (CHIC) 56.2 1197799 5.78 0.63 14.04 0.72 Pacific Sunwear (PSUN) - 4533714 1.12 -0.13 posted $197.3 million in third-quarter sales, $37.6 mil- 6.42 0.57 Charming Shoppes (CHRS) - 2430308 1.13 0.05 7.15 2.32 Parlux Fragrances (PARL) 32.4 283849 2.52 -0.31 lion from Torrid. This was a 13.3 percent increase in 82.17 57.10 Chattem (CHTT) 19.0 1909968 65.48 -2.12 27.88 2.21 Penn Real Estate (PEI) - 4167466 4.83 0.40 third-quarter revenue for the concept, which regis- 36.97 11.55 Cherokee (CHKE) 10.2 148585 18.33 3.05 29.27 3.40 Perry Ellis (PERY) 3.2 1017368 3.91 0.07 tered sales of $33.2 million a year earlier. 10.72 1.72 Chico’s (CHS) - 21644218 4.27 0.31 47.94 13.04 Phillips-Van Heusen (PVH) 6.4 4296603 20.24 1.22 Greenberger noted that the economy has allowed 43.40 16.45 Children’s Place (PLCE) - 3546860 18.45 -0.36 2.10 0.22 Phoenix Footwear (PXG) - 9072 0.35 0.02 some retailers to capitalize with fresh fashion and 12.19 2.46 Christopher & Banks (CBK) 60.6 1084609 4.51 0.63 82.02 31.22 Polo Ralph Lauren (RL) 8.8 16617017 42.01 0.98 new concepts. 33.73 19.51 Cintas (CTAS) 11.0 10169379 23.84 1.09 141.50 31.06 PPR * (PP:PA) 5.2 3865788 45.89 6.26 In the fall, for example, teen value-oriented 28.12 7.01 Citi Trends (CTRN) 10.4 829557 11.75 2.22 29.73 10.35 PriceSmart (PSMT) 11.8 489518 19.20 2.90 Aéropostale Inc. plans to launch a promotional chil- 37.64 13.19 Coach (COH) 6.8 40078492 15.87 1.27 10.67 0.07 Quiksilver (ZQK) - 4131470 1.90 -0.20 dren’s concept. 8.31 0.91 Coldwater Creek (CWTR) - 2526174 2.98 0.16 8.84 4.85 R.G. Barry (DFZ) 7.1 41365 6.18 -0.32 “It will highlight the best characteristics of Aéropostale’s core line and will also mirror the strengths 80.49 54.36 Colgate Palmolive (CL) 17.6 18039671 65.66 0.62 24.28 3.45 Ramco-Gershenson (RPT) 3.5 1003602 4.82 -0.10 of Aéropostale’s operating model,” executive vice presi- 21.00 3.85 Collective Brands (PSS) 21.9 5031443 11.24 0.57 73.55 23.36 Regency Centers (REG) 13.9 13375420 34.06 -1.24 dent and chief financial officer Michael Cunningham said 49.49 26.07 Columbia Sprtswr (COLM) 11.2 1502870 31.33 2.61 7.46 0.90 Retail Ventures (RVI) 2.1 751600 2.76 0.37 at the ICR XChange Conference in Dana Point, Calif. 75.23 41.83 Costco (COST) 15.1 48591409 45.21 0.18 14.85 0.67 Revlon (REV) 2.2 981229 4.75 -1.16 But Citigroup’s Greenberger said her expectations 34.75 0.79 Crocs (CROX) - 4120324 1.31 0.11 83.00 15.89 Richemont * (CFR:VX) 4.4 16450782 18.96 1.96 for the still-to-be-named concept were “low.” The chil- 0.18 0.02 Cygne Designs (CYDS) - 574 0.04 0.00 41.56 21.70 Ross Stores (ROST) 13.5 17174257 32.58 3.16 dren’s market is already established with several val- 146.60 46.27 Deckers Outdoor (DECK) 10.4 2281038 56.46 4.22 3.72 0.44 Safilo * (SFL:MI) 8.1 3146479 0.73 0.02 ue-oriented players like Wal-Mart Stores Inc., Old Navy 3.50 1.50 Delia’s (DLIA) 196.0 735490 2.04 0.05 18.34 2.25 Saks (SKS) - 9937391 2.72 0.20 and The Children’s Place Retail Stores Inc., she said. 9.15 2.09 Delta Apparel (DLA) 7.1 66045 4.31 0.51 112.80 26.80 Sears (SHLD) 20.5 6980935 41.42 0.50 “Who are they going to take share from?” she asked. “I 20.21 5.72 Destination Maternity (DEST) - 32804 7.99 -0.51 106.43 33.78 Simon Properties (SPG) 23.1 33756644 45.86 2.88 don’t see a lot of room for them to be the low-pricer.” Nonetheless, B. Riley’s Van Sinderen sees the 45.66 1.73 Developers Diversified (DDR) 4.1 27515088 4.80 0.00 25.20 9.25 Skechers (SKX) 5.4 4497078 7.42 -2.54 weak environment as more than just an opportunity. 23.11 2.50 Dillard’s (DDS) - 3925602 4.70 0.35 3.37 0.15 Sport-Haley (SPOR) - 0 0.43 0.00 With rivals going out of business and real estate pric- 17.93 6.16 Dress Barn (DBRN) 7.9 4405751 9.83 1.21 6.65 0.99 Stein Mart (SMRT) - 520493 1.18 0.01 es dropping, “retailers have to keep trying,” he said. 20.69 7.30 DSW (DSW) 12.8 1035889 11.07 1.09 29.00 13.37 Steve Madden (SHOO) 12.9 994664 18.61 1.23 “They have to keep introducing new concepts. 24.00 7.09 Duckwall-Alco (DUCK) - 59910 9.90 1.29 76.50 23.05 Swatch Group * (UHRN:SW) - 501935 28.35 2.45 “You have to keep looking forward,” he said. 8.72 0.30 Eddie Bauer (EBHI) - 315868 0.70 -0.05 17.86 5.43 Syms (SYMS) - 51669 7.33 1.55 21.79 5.18 Elizabeth Arden (RDEN) 33.3 1492886 7.33 1.50 17.97 1.19 Talbots (TLB) - 1945905 2.97 0.94 54.75 24.24 Estée Lauder (EL) 10.9 18395618 28.12 1.87 8.04 1.25 Tandy Brands (TBAC) - 14973 1.69 -0.05 WEEKLY 32.50 18.00 Family Dollar (FDO) 15.6 22617896 26.92 -0.85 3.37 1.55 Tandy Leather Factory (TLF) 7.4 43669 1.92 0.31 12.43 2.30 Finish Line (FINL) - 3112566 4.94 0.19 46.30 24.62 Tanger Factory Outlet (SKT) 39.8 3653338 31.77 1.47 CHANGE WWD 38.08 11.00 Fossil (FOSL) 5.5 2758189 12.50 0.96 59.55 25.60 Target (TGT) 9.9 78009595 33.02 1.82 ENDING 3.99 0.16 Frederick’s of Hollywood (FOH) - 17250 0.35 -0.03 1.14 0.21 Tarrant Apparel (TAGS) - 436094 0.47 -0.11 ( feb. 6 ) INDEX 15.91 8.20 Freds (FRED) 39.3 1602871 9.90 -0.36 92.35 17.47 Taubman (TCO) 27.8 8907133 20.42 0.57 % 196.75 30.00 French Connection * (FCCN:L) 153.4 276023 48.00 3.50 3.65 0.18 Tefron (TFRFF) - 13629 2.81 0.00 21.89 9.41 Gap (GPS) 8.3 50319348 11.94 0.66 49.98 16.75 Tiffany & Co. (TIF) 9.2 12289563 22.89 2.14 Gainers Change Composite 44.23 0.24 General Growth (GGP) 3.4 30798816 0.81 0.16 19.41 7.19 Timberland (TBL) 12.1 2378187 11.86 0.87 Talbots 46.31 676.43 38.74 10.37 Genesco (GCO) 2.9 1899780 15.95 0.55 37.52 17.80 TJX Cos. (TJX) 10.6 36110932 22.82 3.40 Charles & Colvard 34.65 23.00 4.77 G-III Apparel (GIII) 4.6 580344 4.94 -0.56 64.48 25.23 Tod’s * (TOD:MI) 11.2 626164 30.60 3.88 Kenneth Cole 31.92 42.74 7.76 Gildan Activewear (GIL) 9.0 5457652 10.54 -0.12 31.82 9.83 True Religion (TRLG) 7.2 1638046 12.23 0.82 Tween Brands 29.74 13.46 0.75 Glimcher (GRT) - 2343276 1.60 -0.25 33.73 2.07 Tween Brands (TWB) 4.1 1461037 3.49 0.80 39.90 17.05 G&K (GKSR) 11.6 524785 20.87 2.42 46.80 16.05 Under Armour (UA) 22.7 5578315 18.20 -0.30 Zale 27.42 45.21 10.26 Guess (GES) 7.4 7141335 18.29 2.20 5.43 1.40 Unifi (UFI) - 1551449 1.41 -0.43 47.69 16.48 Gymboree (GYMB) 8.4 3599128 27.57 3.07 34.89 19.96 Unilever (UL) - 8042249 20.73 -1.19 Decliners Change 12.80 2.05 Hampshire (HAMP) - 48550 2.99 -0.22 38.40 12.33 Urban Outfitters (URBN) 13.6 25951404 17.85 2.27 Skechers -25.50 37.73 7.83 Hanesbrands (HBI) 6.0 9480854 8.60 -0.39 84.60 38.22 VF Corp. (VFC) 9.8 6458310 58.47 2.45 Unifi -23.37 0.53 0.02 Hartmarx (HTMXQ) - 1623431 0.03 0.00 28.88 6.39 Volcom (VLCM) 5.8 1349570 9.52 1.23 Birks & Mayors -21.45 433.50 239.50 Hennes & Mauritz * (HMB:ST) 18.7 20002316 345.50 21.50 63.85 46.25 Wal-Mart (WMT) 14.1 130224102 49.63 2.51 131.89 59.42 Hermès * (RMS:PA) 29.5 1147536 80.00 1.10 53.89 12.22 Warnaco (WRC) 12.4 4569889 24.05 1.41 Joe’s Jeans -20.00 +25.55 9.50 4.04 Hot Topic (HOTT) 22.6 4611430 9.57 1.03 40.00 8.27 Weingarten (WRI) 7.1 8754593 16.40 0.21 Revlon -19.63 21.09 13.27 IAC Interactive (IACI) - 14118161 14.79 0.09 5.54 1.85 Wet Seal (WTSLA) 7.2 6721377 2.89 0.28 22.80 5.11 Iconix (ICON) 7.1 2884318 8.60 0.33 41.99 23.82 Weyco (WEYS) 17.3 74510 31.56 2.78 * Editor’s note: European stocks are quoted in the currency of 53.90 23.29 Inditex * (ITX:MC) 15.5 9371710 31.45 1.57 31.21 16.24 Wolverine (WWW) 9.0 3148304 17.74 -0.40 their principal exchanges. Shares on the London Stock Exchange 19.96 4.64 Inter Parfums (IPAR) 7.7 582090 6.72 0.68 30.89 1.11 Zale (ZLC) - 4752502 1.58 0.34 are quoted in pence, Richemont and The Swatch Group are quot- ed in Swiss francs and Hennes & Mauritz is quoted in Swedish 1.96 0.16 IT Holding * (ITH:MI) - 14967918 0.18 0.00 28.84 4.50 Zumiez (ZUMZ) 10.0 1792251 8.81 1.66 kronor. All other European stocks are in euros. 50.35 8.02 J. Crew (JCG) 7.7 7528537 11.77 1.77 18 WWD, MONDAY, FEBRUARY 9, 2009 WWD.COM/CLASSIFIEDS Professional Services For more career opportunities log on to fashioncareers.com. Call 212.630.3963 or e-mail [email protected] to advertise.

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By Increasing Your Bank Lines •Sales Order Processing •Inventory costing and import tracking Letter Of Credit Financing Provided •EDI No Collateral Required •Billing and Accounts Receivable Non Disturbance Of Existing •Deduction Management Credit Arrangements •Bookkeeping and Financial Statements •And more Take advantage of our solid supply chain experience & reduce costs Call or email today: Jacob Berman G&A SERVICES LLC President DAVID HARARI, PRESIDENT (212) 688-0303 (732) 379-6700 [email protected] [email protected] www.GoldCrestFunding.com See our informative web site at: www.gaserv.com WWD, MONDAY, FEBRUARY 9, 2009 19 WWD.COM Baugur Subsidiary in Bankruptcy Safilo Talks Said at Stalemate By Nina Jones management teams and operation companies By Andrew Roberts exchange, by the end of fiscal 2008, concerned,” the bank stated. according to market estimates. LONDON — BG Holding ehf, a subsidiary of Baugur said in a separate statement it MILAN — Safilo Group SpA’s plans to The stock trades at six times EV/ the troubled Icelandic retail investment firm had withdrawn its petition for a morato- remedy its financial ills by bringing EBITDA, and on Friday fell 1.2 Baugur Group, was put into administration rium process on BG Holding at Reykjavík’s in private equity investment may percent to 0.73 euros, or 93 cents, in the U.K. on Friday by the Icelandic bank District Court, where the petition for credi- have hit a snag. giving the firm a market capital- Landsbanki, one of Baugur’s creditors. tor protection for the rest of the group is on- Sources said Safilo majority ization of 206.9 million euros, or BG Holding’s investments include a 34.9 shareholder 3T SpA met with funds $265.6 million. percent stake in department store chain — speculation has focused on Bain Only 3T said last month it was House of Fraser through Highland Group In the interests of the Capital, Apax Partners and CVC weighing ways “to strengthen and Holdings; a 37.7 percent stake in Aurum Capital Partners — but talks stalled develop” Safilo and had contacted Group, the parent company of jewelers portfolio“ companies, over control. “a few potential partners” but that including Mappin & Webb; a 63.7 percent The Tabacchi family, which no agreement had been reached. stake in the toy store Hamleys, and a 13.7 we have decided to not owns 39.8 percent of Safilo through There has been speculation that percent stake in Iceland Foods Group Ltd. Only 3T, does not want to relin- Safilo’s management was working The U.K. administration process is equiv- oppose the administration quish a controlling interest in the on a plan to delist the company from alent to Chapter 11 in the U.S., and the move eyewear firm even though this im- the Milan Bourse. follows Baugur Group’s application for credi- of BG Holding. plied an unrealistic valuation of In November, Safilo revised down tor protection in Iceland last week. its stake in the current climate, its 2008 revenue and margin fore- — Gunnar Sigurdsson,” Baugur Group “We believe that the appointment of admin- sources said. casts for the second straight quar- istrators over BG Holding ehf is the best way of “For there to be an upside for ter — predicting a 2 percent drop in ensuring stability and continuity for the U.K. going. Gunnar Sigurdsson, chief executive the Tabacchi family, its stake has revenues and a net income target of companies in which it has shareholdings,” officer of Baugur Group, said while “very to be valued more than its debt but 1 percent of sales — after a 63 per- Landsbanki’s resolution committee said. disappointed” with Landsbanki’s decision, [Safilo] is deeply underwater,” a cent decline in earnings in the first A spokesman for Landsbanki said the bank the group would not oppose the U.K. admin- source said. “This is the reason talks nine months of the year. has no plans to sell the shareholdings in the istration process. are stalling.” Subsequently, credit rating various businesses. “In the interests of the portfolio com- Safilo, which has licenses with agencies and equity analysts down- “These are good businesses, and we want panies, we have decided to not oppose the Giorgio Armani, Dior, Gucci and graded the eyewear company on to make sure they continue operating and administration of BG Holding and will work Valentino among others, is under concerns the weakening market are not distracted,” he said. “Our role is to with Landsbanki’s resolution committee and pressure because of net debts, conditions could put further pres- maximize the long-term value of those as- provide all possible support to the business- which are set to exceed 580 million sure on its already vulnerable bal- sets, and we will give our full support to the es,” said Sigurdsson. euros, or $744.6 million at current ance sheet. WWD.COM/CLASSIFIEDS

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PRODUCT MANAGER SALES KEY ACCOUNT EXEC $$ Open, Design Assistant/Associate NYC children’s apparel co seeks exp BOE. Current exp in men’s or young COMMERCIAL Leading NYC importer has immediate person to manage all aspects of gar- men’s or boy’s, gloves, hats, scarves or opening in Missy knits & sweaters. ment approval process for sports team underwear req’d; or women’s accesso- REAL ESTATE Requirements: Min. 2-3 yrs experience licensed products i.e. lab dips, fit, ries, such as small leather goods, etc. in women’s wear, AI & Photoshop strikeoffs, pre-pro and production. [email protected] 973-564-9236 skills a must, tech knowledge of con- Email reume to [email protected] struction & trims, strong attention to SALES KEY ACCOUNT EXEC $$ OPEN, Administrative Assistant detail and solid communication skills. SHIPPING COORD/ORDER ENTRY Australian Wool Innovation, the BOE. Strong current relationship with Handbag Contract Work Email resume to HR: Accessory co. needs person to manage Target in Missy or Jr’s req’d. Target ac- Hi-end handbags, Patterns, Samples. world’s largest supplier of Merino [email protected] shipping & rec. area. Must be computer seeks an experienced Admin. Assistant. count manager. Mdtn $100mil volume co. Made in Brooklyn.“No production is or fax to: 212-221-8563 literate w/ knowledge of SBT & EDI, [email protected] 973-564-9236 too small or too big”. 718-625-8969 Must have excellent writing and organi- organized, efficient & accurate. Ability [email protected] zational skills; detail oriented, able to to meet deadlines. Email resume to: prioritize and effectively multiple task. SALES KEY ACCOUNT EXEC - $$ Open . Fit Model/Receptionist [email protected] Current exp in private label Jr knit tops Knowledge of accounting required. For women’s private label company. Will be responsible for all general office Sr. Merchandiser *Men’s Neckwear*. or private label missy blouses. Must 214 W 29th St People skills, positive attitude & efficiency have current relationship w/Kohls or Patterns/Samples/Production functions as well as assisting the Sr. a must. Duties to include greeting Merchandising capabilities/line build Any Style. We do Bridal/Evening VP. Please email resumes to : experience with mid-tier and better Walmart or JC Penney or Target req’d. Just Steps to Penn Station customers, answering phones, office [email protected] 973-564-9236 Gowns custom made & wholesale. [email protected] work, and informal garment fittings. neckwear collections, traditional & con- Units from Call: 212-278-0608/646-441-0950 Body measurements required: Bust: temporary. Experience in coloring nec- 36, Waist: 28, High hip: 35, Low hip: essary, able to travel. Please forward SALESPERSON resumes to [email protected]. 2,500 Sq. Ft. BOOKKEEPER F/C $60-65K. Current 37.5, height: 5’5” to 5’8”. Please do not Junior dress company seeking experi- PATTERNS, SAMPLES, exp in apparel or software accessory co apply if your measurements are not enced salesperson. Chain/Specialty/ to 8,000 Sq. Ft. reqd. Midtown. Will have duties compa- listed. Excellent work environment Dept store experience a must. PRODUCTIONS rable to controller. Good work history. and a good opportunity for the right Fax resumes to: 212-768-2835 Harve Schuster, SrVP All lines, Any styles. Fine Fast Service. [email protected] 973-564-9236 person. Email resumes with body Call Sherry 212-719-0622. measurements to: [email protected] SALESPERSON NEEDED 212-696-7119 Dress manufacturer looking for sales- BUSINESS * JOBS *JOBS *JOBS * person. Please fax your resume to: www.walter&samuels.com Artist - Girls 4-14 Generic & Disney 212-971-0202 PATTERNS, SAMPLES, DEVELOPMENT EXEC Data Entry - - Purchase Orders Overseas Vertical Knits Manufacturer. Designer/Merchandiser -Jr. better apparel $HI PRODUCTIONS Call B. Murphy(212)643-8090; fax 643-8127 Full service shop to the trade. A KSA designed facility with WRAP Fine fast work. 212-869-2699. certification exporting to major US Apparel Salesperson Brands since 1990, seeks a senior MARKER/GRADER Garment mfr/importer seeking com- industry executive to establish new mission based salesperson with active direct relationships with major Retail- Women’s apparel company seeks experi- enced person for computer marking orders to retailers/wholesalers. We can ers, Brands and Importers in the US. provide financial and manufacturing MANAGER/RETAIL SALES Please send resumes to: and grading. Tukatech preferred. WALTER & SAMUELS Send resume to: [email protected] support. Email resume to: Flemington Fur seeks candidate with [email protected] [email protected] managerial experience in retail sales. Full-time position. Must be detail Production Assistant KEY ACCOUNT EXECUTIVE oriented; have excellent sales skills; CEO-SALES DIRECTOR $250-350K +++ and possess leadership qualities. Fur Current exp in young men’s accessories Wms Imp seeks well-org. ind. w/exc Must have private label exp. in follow-up. 2yrs exp. Blue Cherry. Missy/Large Sz Blouses, must have knowledge is not a priority. Integrity NEED FINANCING? or young men’s casual sportswear re- is a must. Excellent pay, benefits, etc. quired. Will handle sales but also able Track prod. reports, samples thru current relationship w/ K-Mart, Sears, Showrooms & Lofts ARE YOU STRUGGLING WITH prod., gmt meas. Excel. Opp.. for a JC Penney, Shopko, Catherine, etc. Fax or email resume to: FINANCING YOUR BUSINESS? to take on CEO responsibilities. Pri- Ms. Christina Rucker at 908.782.2773 BWAY 7TH AVE SIDE STREETS vate label. Popular priced. Los Angeles self-motivated ind. Fax res. w/sal. to: Salary/Comm + benefits.Call: Bruce @ Great ’New’ Office Space Avail We are an established apparel company 212-391-5268 212 768-7320, email: [email protected]. or: [email protected] that is seeking to acquire or develop based indivual. Company will not relo. ADAMS & CO. 212-679-5500 [email protected] 973-564-9236 an alliance with another apparel or- Sales Executive – Part time ganization to provide financing, ad- Production Clerical Kid’s sleepwear co. requires aggressive ministration, shipping and distribu- Wms Imp seeks ind. to asst Prod. Dept person to lead new division to be sold tion. Please email an outline of your CONTROLLER $115-125K. Current w/ courier pkgs, filing, copy, data strong exp in apparel co required CPA to mass market. Min 3 yrs exp & con- business, including contact information input, Excel. Fax res. w/sal. to: 212- tacts. Send res with salary history to: to: [email protected] required. Will manage 25 indivs. North 391-5268 Central NJ loca tion. Will report to CFO. [email protected] or fax 212-967-2038 [email protected] 973-564-9236 Runners Internationale Canada Production Coordinator SALES Excellent Event Space We have hot items in Juniors. Looking Fly Through Inc. seeks a qualified and Credit & Collection Manager To $75K. Luxury company seeks entry level pro- experienced sales person established Available Long/Short Term for known label that we can use in Current exp in all aspects of credit & col- duction coordinator w/working knowl- Top Experienced Sales Professional SOHO, Manhattan Canada and U.S. Will pay royalties. in women’s apparel to bring in new Ladies and Men’s Areas,Outstanding. lection for apparel or accessory co reqd. edge of manufacturing / accounting clients and sell a line of ladies suits, peprealestate.com Ron Kaminski. 514-885-0098 Must have good work history. Mdtn. software. Will train. Please fax resume Coporate Level Contacts w/All Majors. 212-925-3280 x100 [email protected] tops, dresses and private label. Fax Please Call David at 267 671 2130 [email protected] 973-564-9236 to: 646-304-0864 Resume to 212.302.5230