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ONE LESS WORRY India Revokes Ban On Cotton Exports

By MAYU SAINI

NEW DELHI — Cotton users can breathe a little eas- ier — for now. Almost two months after an unexpected ban on cotton exports, the Indian government has once again TUESDAY, MAY 1, 2012 ■ $3.00 ■ WOMEN’S WEAR DAILY allowed the country’s growers to export their crop, easing fears the ban might destabilize already vola- WWD tile global prices. “After a comprehensive review, it was decided that the suspension of new registrations for cotton exports will be revoked and exports permitted,” the Finance Ministry said Monday. Commerce Minister Anand Sharma said fresh reg- istrations for export will now be allowed and the situ- ation will be reviewed every two weeks. Advantage, India is the world’s second-largest producer of cot- ton after China and the second-largest exporter after the U.S. Globally, cotton prices have stabilized world- wide compared to a year ago, when they had highs of about $2.12 a pound in March, throwing the entire supply chain, from farmers to retailers, into near Ve nu s states of panic. Yarn spinners and fabric mills were The French Open is just weeks away, but Venus stuck with overpriced inventory they couldn’t sell, and denim fi rms were trying to fi gure out how they were Williams is working on more than her game. She was going to pass on the increased costs to stores and con- in New York on Monday to show off her new EleVen by sumers, and started seeking out alternative fabrics. Venus Williams tennis line, which is relaunching for The fi nancial impact is still being seen as companies report their year-end and quarterly results. spring. Some of her original prints are featured on Cotton is selling at 82 cents a pound and crop fore- the merch, such as the “Oh and Oh” motif, a play on casts are strong. The National Cotton Council sees tennis scores, shown here on a polyester and 2012 world mill use of 113.8 million bales, an increase of 3.5 percent from 2011. Global production is pro- spandex jersey tournament dress. For an on-court jected to exceed consumption and allow world ending interview with Williams, see pages 6 and 7. stocks to build to 64.1 million bales. J. Berrye Worsham, chief executive officer of Cotton Incorporated, said, “If the decision by India to resume normal raw cotton trade remains in effect, it will benefi t the entire cotton industry, as artifi cial trade restrictions have been shown to increase price SEE PAGE 8 Yohji’s Movie Move HYERES, France — Yohji Yamamoto is working on his fi rst feature fi lm. The designer spoke of this and other new ven- tures during a discussion on fashion and cinema with French director Christophe Honoré at the Hyères International Festival of Fashion and Photography. “I’ll do music. I’ll do painting. Then, fi nally, I’ll do fi lm,” Yamamoto told WWD when asked what future projects he was working on. He will don the director’s cap for the movie, which he said is not based on himself. Yamamoto has com- missioned somebody to write the script and expects to have the fi lm wrapped up in two years at the earli- est. “It’s very secret,” he said. During the discussion, the designer, whose cre- ations have featured in a handful of fi lms, including the Takeshi Kitano-helmed “Dolls,” told the audience that he does not like creating clothes for the cinema. “I don’t want to kill the characters of the actors and actresses with my ego,” said Yamamoto, for whom fashion and costume design are distinct professions. “[Costume designers] have to know which fashions and which trends were running at which time, so their knowledge of past clothing is sometimes better than ours.” But he still fi nds the work of certain costume de- signers hard on the eyes. “Have you ever experienced after starting to watch a movie that because of the ugly costumes, you cannot keep on watching? Have you ever experienced that? I have a lot. So in that respect costume [design] is very important,” said Yamamoto. The designer also mentioned director Wim Wenders, whom he sees as a brother, describing the PHOTO BY GEORGE CHINSEE SEE PAGE 12 2 WWD TUESDAY, MAY 1, 2012 WWD.COM International Woolmark Prize Relaunched THE BRIEFING BOX us we looked at the opportunity scene. The firm had a big presence By LISA LOCKWOOD on a number of different levels.” in Paris in the Sixties, he said, IN TODAY’S WWD Not only did the award carry a adding that it brings back good The International Woolmark substantive prize with it, but there memories. Already the company Prize is making a comeback. was an appealing retail compo- recently has been building up its The global fashion compe- nent for the winner. The prize also presence in France as a sponsor tition, which famously was a allows participants to learn more of young talent-related events, he The scene at the springboard for the careers of about the technical aspects and added, such as for the live screen- Harry Winston Yves Saint Laurent and Karl value of wool. Kolb said the con- ing this weekend at the Palais de gala in Shanghai. Lagerfeld in the Fifties, will test was open to CFDA members Tokyo of the fashion show from be reintroduced this year with (members have to be in business the Hyères International Festival the aim of supporting individ- at least three years), and that it of Fashion and Photography. ual excellence in design. The would be great to see the U.S. win- Grumbach said that the de- International Woolmark Prize ner compete internationally. “It tails of Paris’ role in the new awards outstanding and emerg- says a lot for how far American International Woolmark Awards ing designers for their creativity fashion has come,” he said. is still to be defined, however. “I in merino wool. The contest aims The CFDA has received about hope it will be long-term,” he said. to develop the next generation 25 initial inquiries. He said that The Australian Wool Industry of fashion designers and to high- those who are applying are not has supported numerous design- light wool’s eco credentials. only young emerging designers er programs dating back to the Stuart McCullough, chief ex- “but a brand who could use a illustrious International Wool

ecutive officer of Woolmark, told boost.” He said the prize wasn’t Secretariat design award of the OF HARRY WINSTON COURTESY WWD that regional design con- for marquee brand names, but Fifties, where Saint Laurent and tests will take place in China, rather small business owners. Lagerfeld were discovered. More The Indian government has once again allowed cotton Australia, India, Italy, the U.K. Simon Ward, chief operating recently, in 2007, the Protégé growers to export their crop, easing fears the ban on exports and France. The winner of each officer of the British Fashion program teamed up some of the might destabilize already volatile global prices. PAGE 1 region will receive a financial Council, said, “When the award world’s most established de- contribution towards their next was first introduced, Yves Saint signers, such as Lagerfeld and Yohji Yamamoto spoke of working on his first feature collection, as well as an oppor- Laurent and Karl Lagerfeld were Donatella Versace, with young film and other new ventures at the Hyères International tunity to participate in the inter- among the first winners, and at protégés of their choice. Festival of Fashion and Photography. PAGE 1 national final. The winner of the the time they were young, emerg- In the U.S., the judging panel international final will receive ing talents. What we like is that consists of the CFDA’s Kolb; Experts on the BRIC countries gave insights into 100,000 Australian dollars, or there is a symmetry and a paral- Linda Fargo, senior vice presi- the reasons so many brands want to make inroads $103,963 dollars at current ex- lel with the past in these latest dent of the fashion office and in those markets. PAGE 4 change, to assist them in under- Woolmark awards. In London in store presentation at Bergdorf ’s; Sally Singer, editor of T, the New The Bon-Ton Stores Inc. has extended the contract of its York Times Style Magazine; vice chairman and president of merchandising, and will begin Narciso Rodriguez, and Malcolm a search for a new chief merchandising officer. PAGE 4 Carfrae, executive vice presi- dent, global communications at Industry veteran Frank Tworecke of The Warnaco Group Calvin Klein Inc. Franca Sozzani, Inc. is planning to retire at the end of the year. PAGE 4 editor in chief of Italian Vogue, and Diane von Furstenberg are The silk kimono that was said to have been worn by confirmed to be on the interna- Lady Duff Gordon when she escaped the Titanic sold tional judging committee. The at auction Thursday for $75,205. PAGE 7 U.S. judging will take place on July 9 in Manhattan. Designers Leighton Meester and Ed Westwick of “Gossip Girl” are required to present sketches caused quite a scene in Shanghai at the opening of of a merino wool capsule collec- Harry Winston’s first freestanding pavilion. PAGE 9 tion comprising six outfits with one full outfit to be produced. Glamour introduced a redesign earlier this year, and the The international judging takes numbers look promising after some difficult times on the place in London in September newsstand. PAGE 9 during London Fashion Week. The contest, including the Adidas AG said it surpassed market expectations with a KEYSTONE-FRANCE winners, will be communicated 38 percent spike in first-quarter net profits. PAGE 11 through print media as well as a

PHOTO BY large digital component. John Varvatos received Philadelphia University’s 2012 Spirit of Design Award Saturday night. PAGE 11 Karl Lagerfeld, left, was a winner of the International Woolmark Prize in 1954. The Woolmark Co. owns the Woolmark logo, which is one of writing their next fashion show. particular, there is so much new the world’s 10 most well-known The Shops at Target, one of the mass retailer’s biggest In addition, the winner will have and emerging talent, so there was and respected apparel-related merchandising initiatives in recent years, will be unveiled their collection sold to key retail a large pool to choose from.” brands in the world. Over 2 billion on Sunday in the U.S. and on target.com. PAGE 12 partners such as Harvey Nichols Ward said the criteria for the garments have carried the logo in the U.K., Lane Crawford in candidates was drawn up by since its creation in 1964. To fea- Calvin Klein Inc. unveiled at the Decoded Fashion China, Eickhoff in Germany and Woolmark, and the BFC chose ture it, the garment must contain Forum Monday its latest foray into social media: the Bergdorf Goodman in the U.S. candidates for their creativ- 100 percent pure new wool and first official Calvin Klein Tumblr blog. PAGE 12 The regional finalists will be ity and the way they use wool in meet strict quality and fabric per- revealed in July. The regional their designs. “It’s appropriate formance criteria. The Woolmark ON WWD.COM winner will receive $100,000 in that Woolmark should be working Co. is a subsidiary of Australian the U.S., and $50,000 in the other with, and supporting the new tal- Wool Innovation Limited, a not- SHANGHAI SHOWTIME: Harry Winston celebrated the regions. The international final- ent of today and following their for-profit company owned by opening of its first-ever freestanding pavilion and flew ist will be unveiled in March potential for growth — they are a 30,000 Australian woolgrowers. over “Gossip Girl” stars Ed Westwick and Leighton Meester. 2013. Woolmark has budgeted great partner,” Ward added. According to McCullough, 85 For more, see WWD.com/eye. this annual award for the next The U.K. has become some- percent of the world’s wool, used four years. “We wanted to make thing of a hotbed for wool pro- for apparel, comes from Australia. sure it had continuity and we motion: For the past two years, “The versatility, renewable and TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS biodegradable properties of wool [email protected], USING THE INDIVIDUAL’S NAME. wanted to set the platform for London has played host to WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. years to come,” said McCullough. Wool Week, an initiative that are well communicated,” he said. COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. He considers the Woolmark touts the benefits of the natu- Wool consumption has been on VOLUME 203, NO. 90. TUESDAY, MAY 1, 2012. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in May, June, October and December, and two additional issues in February, Prize a significant marketing proj- ral fiber, the price of which has the upswing, thanks to the emer- March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine ect to spread the word about wool steadily declined over the past gence of affluence in China. “Our Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, and what can be done with wool in decade. The week is part of the challenge is to demonstrate that Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at a design sense. “We know through Campaign for Wool, a five-year it can be used in luxury gar- 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 Post: return undeliverable Canadian addresses the fashion arena, it attracts a lot initiative dreamed up by Prince ments. It’s not just the fiber that to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S of attention. It’s an important way Charles and supported by indus- was used in sweaters that your WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, grandmother used to knit you ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, of [touting] the fiber,” he said. try figures including Nicholas call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent The award has been sup- Coleridge, managing director that itched and scratched you a label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless ported internationally by key of Condé Nast in the U.K. and bit,” said McCullough. He said we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on fashion councils including the a spokesman for the campaign. there are new properties in wool all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all Council of Fashion Designers of Past Wool Weeks have seen sheep that give it a great hand. Eighty editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints America, British Fashion Council, grazing in a makeshift meadow percent of Australia’s wool is ex- of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at Chambre Syndicale de la Couture, on Savile Row or dyed a shade of ported to China. Some 50 percent www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that Mercedes-Benz Fashion Week bright yellow and gathered in a is consumed there, and 30 percent we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at Madrid and Premsela Foundation. flock outside Selfridges. is exported. The next two largest P. O . Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED “There’s a lot of history with Didier Grumbach, president markets are Italy and India. ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER the award,” said Steven Kolb, of the Chambre Syndicale, said — WITH CONTRIBUTIONS FROM UNSOLICITED MATERIALS. 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Bon-Ton Extends Buccina’s Contract At Neiman’s, Fernandez de- textiles By dAvId MOIN veloped strategies broadening the luxury chain’s appeal to tHE BON-tON stores Inc. has include younger and contem- extended the contract of tony porary customers. He had been BRICs: Potential and Problems Aplenty Buccina, vice chairman and a vice president at Neiman’s president of merchandising, to since 2002 with responsibilities By ARtHuR FRIEdMAN Feb. 15, 2013, and will begin a in marketing, online, catalogue, search for a new chief merchan- and customer relationship man- NEW yORK — the BRIC coun- dising officer. agement systems and strategies, tries may represent huge poten- Bon-ton also named Luis providing research and analyt- tial for luxury goods brands, but Fernandez executive vice pres- ics for NMG divisions. Earlier, there also are major pitfalls. ident and chief marketing offi- Fernandez worked at the Anna stupnytska, executive cer, a new position. Fernandez, Limited, victoria’s secret stores director and macroeconomist in formerly vice president of Last and Alliance data systems. the Asset Management division Call marketing and customer Buccina, a 20-year veteran of of Goldman sachs, said, by 2030, Owen D. Nee Jr. insights at the Neiman Marcus Bon-ton, will help ease Hoffman’s Brazil, Russia, India and China, Group, will oversee Bon-ton’s transition. Hoffman joined Bon- along with the u.s., could be the problems down the road, and if some very interesting designers sales promotion, marketing ton in January, after serving largest five economies in the the newly rich middle and upper that present their collections in and e-commerce. as president and ceo of Lord & world. stupnytska said the esti- classes will demand a greater Paris, Milan and New york.” “Bringing in a new chief taylor and, before that, presi- mate is that by this time about 2 role in the political sphere. she said the main problems marketing officer allows us to dent of Neiman Marcus direct billion people globally will have “there’s also a possibility of with manufacturing in Russia change the reporting structure and vice president of Last Call. At joined the middle class, 300 mil- the balance of trade shifting in or bringing brands there are to better position us for growth,” NMG, he worked with Fernandez. lion from the BRICs alone. favor of the u.s., as China be- protective barriers such as high Brendan Hoffman, president “I know Luis shares my vision of “China could become the comes a consumer market and customs duties and value-added and chief executive officer, optimizing technology to reach largest luxury market within manufacturing is focused on taxes, and widespread corrup- told WWd. “tony focuses on our customers — existing and this decade, overtaking Japan, made in China, sold in China,” tion in government agencies. all the merchants and the pri- new — to increase awareness of and this means that the consum- he said. “Russia has never signed any vate brands. Before, he also had our message of fashion, quality er theme in the BRICs is still Nee also said most experts international intellectual prop- planning and allocation and e- and value,” Hoffman said. intact,” she said at a Fordham look at China’s evolving dy- erty [agreements],” Lozovsky commerce. I thought the scope the 272-unit Bon-ton, based Law Institute event, “Fashion = namics in commerce and so- added. “It’s a high-risk market, was too large so we restructured in york, Pa. and Milwaukee, Wis., Art + Commerce.” “the last de- cial culture and assume it will which is why very few outside to where e-commerce moves operates department stores in cade has been relatively easy for achieve its goals, whereas, “It retailers have ventured into it.” into marketing, and planning 23 states under the Bon-ton, brands — you go into the BRICs, could in fact not succeed. It is she noted that even with and allocation moves up to Bergner’s, Boston store, Carson you invest and it pays off. Now a state-planned economy and Russia joining the World trade Barbara schrantz, our chief op- Pirie scott, Elder-Beerman, this decade is going to be much country, and state planners do Organization this year, in erating officer.” Buccina’s con- Herberger’s, younkers and more subtle. China is going from from time to time make very big which it must adhere to global tract was set to expire April 30. Parisian nameplates. an economy driven by manufac- mistakes.” On the other hand, trade rules, “it’s a transition turing to one being driven by the China’s plans could come to that will take five to seven consumer. Russia has political fruition so much so as to make years,” during which time risks and many companies are fashion, for instance, shift from “Russia has to seriously fight Tworecke to Retire at Year’s End scared to do business there be- being influenced by American corruption and counterfeiting.” creasing sales from $2.5 billion cause there are no protections and European design to being Heike Bhonsle, anticounter- By JEAN E. PALMIERI in 2011 to $4 billion by 2016 by for intellectual property rights. China-centric, where “Chinese feiting director at Lacoste usA, growing the direct-to-consumer said, “My personal experience INdustRy vEtERAN Frank channel; ramping up inter- is that, for counterfeit merchan- tworecke is planning to retire national expansion; gaining dise, the number-one country at the end of the year. market share with its heritage How tHe BRICs staCk Up in any class of product is China, tworecke, who has held swim, sportswear and intimates nothing even comes close.” management positions at sev- brands, and managing cash to Here’s a look at tHe Gross Domestic ProDuct Bhonsle said Lacoste’s involve- eral retail and apparel compa- enhance shareholder value. of Brazil, russia, inDia, cHina anD tHe u.s. ment in the BRIC countries is nies over the course of his ca- “I believe the opportunities that its product is distributed reer, is currently president of for Warnaco are boundless,” Country GDP 2011 GDP 2010 Growth worlD in all of them, and 40 percent of the sportswear Group at the said tworecke, who has been an rate rank the apparel for Lacoste is man- Warnaco Group Inc., a position integral member of the manage- ufactured in China, with some he has held since 2004. ment team that established the Brazil $2.282 trillion $2.222 trillion 2.7% 7 made in India, as well. tworecke, who is 65, told platform to grow and expand russia $2.38 trillion $2.282 trillion 4.3% 6 vincent Bevins, a reporter for WWd Monday: “I came here with the Calvin Klein Jeans and the Financial times based in são a history over the past 15 years Accessories businesses. “the inDia $4.463 trillion $4.139 trillion 7.8% 3 Paulo, noted that Brazil is the of going into companies that new team and structure are well cHina $11.29 trillion $10.34 trillion 9.2% 2 sixth-largest economy and grow- needed a turnaround. I was re- positioned to write the next suc- ing quickly, but problems exist. cruited at Warnaco for that same cessful chapter for Warnaco.” u.s. $15.04 trillion $14.82 trillion 1.5% 1 “In the last 10 years, we’ve reason and joined right after it Before Warnaco, tworecke had 40 million people rise out came out of bank- was with the Bon- of poverty, while the superrich ruptcy. today, the ton stores Inc. Source: cIA World FActbook Frank Tworecke have also gotten much richer, company is success- from 1999 to 2004 as In Brazil, the currency is over- brands are on the retail shelves and across the board you have ful and prospering president and chief valued. India also has political in the u.s. and Europe.” an increased appetite for lux- and we’ve restruc- operating officer, problems, such as policies that sabina Lozovsky, director of ury goods and fashion goods,” tured accordingly, and before that, he make it difficult for foreign firms special projects at the Russian- Bevins said. “On the other so it’s time for me held the same po- to enter the country.” American Foundation, noted hand, the fashion industry is to move on.” sition with Jos. A. Owen d. Nee Jr., senior that the Russian apparel market in crisis because Brazil has be- tworecke said Bank Clothiers Inc. chner

counsel at Greenberg traurig, is considered one of the fastest come an extremely expensive “the timing is per- eI He has also had who has spent the last 30 years growing in the world, with 25 place to do almost anything. It fect” with the as- senior merchan-

in China, noted that the coun- percent annual sales growth in has become almost impossible cension of Helen Steve dising positions try today is the second-largest 2011, with the accessories mar- to produce clothing…in the McCluskey to pres- with Federated market for Coca-Cola, General ket increasing 35 percent. last 10 years. What you’re see- ident and chief department stores Motors, volkswagen and “Many leading global brands ing now is the death of manu- executive officer, photo by Inc. and Merry-Go- Boeing; is the top producer of have established their presence facturing in Brazil and a crisis and the addition of several new Round Enterprises Inc. mobile phones, tvs and air in Russia and have announced for the government of President executives who will take on the “It’s an opportune time for conditioners, and remains the expansion plans,” Lozovsky said. dilma Rousseff. the fashion in- responsibilities that he had me to step away from the daily op- largest source of textile prod- “Russia has the third-largest dustry is dying at the same time previously overseen. these in- erations of the business and focus ucts worn in the u.s. concentration of millionaires there is a big demand for fash- clude Karyn Hillman as chief my attention on the next phase He said China’s 12th “Five- in the world after the u.s. and ion. são Paulo is now the most merchandising officer for Calvin of my pursuits: continuing my in- year National Plan” for 2011 to Germany. However — and when expensive city in the Western Klein Jeans and Accessories, volvement in charities and edu- 2015 is focused on the develop- talking about Russia you always Hemisphere. People go to Mark Whyman as chief com- cational affiliations, along with ment of the urbanized consumer have to come to however — the Miami and New york just to buy mercial officer for Warnaco’s evaluating opportunities where economy. In 2011, the lower-mid- fashion market is as contradic- clothes and consumer goods.” Calvin Klein businesses glob- I can apply my expertise in pro- dle class in China was 290 million tory as Russia itself. It’s mostly stupnytska added that the ally, and tom speight, president viding guidance to management,” people, or 44 percent of the popu- based on imports, with its re- BRIC countries “are work- and managing director of Calvin tworecke said. “Other than work lation, accounting for $600 billion tail market being the largest in ing together in certain areas Klein Jeans and Calvin Klein on my golf game, I hope to sit on a in spending, Nee noted. By 2025, Eastern Europe and the sixth such as convertible curren- underwear North America. couple of boards.” He said he has this group is projected to reach largest in all of Europe. the lux- cies, but they are also fighting “this is all part of the succes- no desire at this point to take on 520 million, or 50 percent of the ury market alone is $2 billion in among each other for markets. sion plan we laid out a few years an operational role with any other urban population, with spending clothing, shoes and accessories. Economic interests are creat- ago,” tworecke said. company, but would like to “con- power of about $2 trillion. In all that wealth and largeness, ing tensions, but it’s also about Warnaco, the manufacturer tinue to interface with the indus- Nee said among the unknown Russian brands account for less politics. they’re all trying to of Calvin Klein underwear and try in some way. I want to stay con- factors in China are how the than 20 percent of the market, figure out how to be a big voice jeans, recently spelled out a nected and do something where I country will react to economic despite the fact that there are on the international stage.” five-year plan that calls for in- can provide value.”

w01a004a;7.indd 4 4/30/12 5:36 PM 04302012173651 WWD TUESDAY, MAY 1, 2012 5 WWD.COM

into the fashion industry where he led business development, licens- West Joins Marvin Traub Associates ing, and marketing communica- other leg to the stool. Now we are leading the branding and tions for Zac Posen. By DAVID MOIN have the brand management revenue enhancement of a real MTA was founded by Traub, piece, which has really always estate development in Chicago.” the former Bloomingdale’s chair- NEW YORK — Marvin Traub been inside the soul of what we However, the MTA team will man and chief executive officer, Associates has broadened its scope do. But it’s become more tan- also work with many clients in 1992. The firm has mostly been of operations by merging with gible with a driving force that that had been with CS West, known for its dealmaking and CS West International Corp. and could benefit all of our clients.” including Ideeli.com, William consulting activities, helping re- naming its founder, Christopher He likened MTA’s manage- Morris Endeavor Entertainment, tailers and brands to expand via West, a managing director. ment structure to a “triumvirate” Ambient Content LLC, JWT, Christopher licensing, franchising, merchan- West has also joined MTA’s ex- where Traub is the main mer- Guggenheim Partners, Vicart West dising, mergers and acquisitions, ecutive committee which has two chant; West, the brand manager, Entertainment, Endgame as well as restructurings. The other members: Marvin Traub, and himself, “the deal guy.” Entertainment Group, Cole August 2008. The firm focused on company also helps major devel- chairman, and Mortimer Singer, “Since CS West International Haan, Lacoste, Erin Fetherston, operational management, revenue opers by conceptualizing the mer- president. Traub and Singer are merged into Marvin Traub Christian Cota, Tracy Reese and generation and business develop- chandising on new projects and partners in the business. Associates, we have closed on Yohji Yamamoto. “We brought his ment for new and rapid-growth attracting tenants to the space. “When Marvin and I entered a number of new clients,” said business in,” said Singer. “His companies. Prior to forming his Singer said he is actively seek- into partnership together 15 West, citing Tourneau, the watch clients become our clients. He’s own company, West worked at ing additional talent for the firm, months ago, we agreed I should retailer, and Gruppo C’E, a real been really running business de- Procter & Gamble Co. in London, and will be hiring midlevel, junior also be looking to bolster the estate developer. “For Tourneau velopment and strategy — the on- New York and Geneva, and held executives with a range of exper- team for the future,” said Singer. we are performing strategic con- the-ground operations.” global responsibility for several tise, from banking to merchandis- “Christopher brings a whole sultancy, and for Gruppo C’E we West founded CS West in luxury beauty brands. West moved ing. “We are growing,” Singer said.

Charney Pay Rises At American Apparel AMERICAN APPAREL INC. [ree-teyl-per-teez] doesn’t believe it will hit a re- TM quired covenant under a credit agreement between the compa- Definition: Retail expertise that ny and Lion Capital, which will Retailpertise mean that the Lion warrants to a supplier has when factored purchase American Apparel’s common stock at the exercise by CIT, knowing it can ship to price of $1 per share will need retailers with confidence. to be adjusted. According to the defini- tive proxy filed Monday with the Securities and Exchange Commission, American Apparel said it was still finalizing its fi- nancial statements for the first quarter ended March 31, but that information as of the filing of the proxy has the company believing it “will not achieve” the level required, which means that per an earlier agreement between American Apparel and Lion, the exercise price for each warrant will be reduced by 25 cents a share. The covenant has a defined ratio unique to the credit agreement and is for the trailing 12 month period ended March 31, according to the proxy. In addition, chief executive officer Dov Charney’s base sal- ary stayed essentially flat in 2011 from a year ago, but stock awards pushed his total com- pensation up by an additional $10.1 million. Charney’s base salary was CIT has been by our side for 14 years. With $750,000 last year, and his “ stock award was $10.1 mil- factoring and financing support from CIT, our lion, which reflected antidilu- tion rights granted under the growth has taken great strides. CIT knows April 27, 2011, purchase agree- ment between himself and retail. We are comfortable relying on CIT American Apparel. Former chief business because they have walked in our shoes. development officer Martin ” Staff earned a base salary of Roger Orozco, Creative Director, Bed|Stü Footwear $378,000 last year, with stock awards valued at $600,000. His total compensation CIT is a leader in factoring and financing services reached nearly $1.6 million once $300,000 in severance for footwear companies like Bed|Stü. and health insurance benefits for six months and a $300,000 cash payment in lieu of the re- stricted stock award granted in 2011 are added in. Staff joined To learn how you can put the resources of CIT to work for your company, visit American Apparel in March and left in October. www.cit.com/footwear or call us at 800-248-3240. Because of vesting schedules and stock fluctuation, stock and Factoring • Working capital • creDit protection option awards aren’t necessarily • realized by the executives listed accounts receivable ManageMent iMport/export Financing for them, but the Securities and Debt restructuring • groWth Financing Exchange Commission requires that they be reported at grant © 2012 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc. date fair value. — VICKI M. YOUNG AND ARNOLD J. KARR 6 WWD TUESDAY, MAY 1, 2012 Fa shion Set

She loved it and ran it by her 30-year-old sis- By LISA LOCKWOOD ter Serena. “I asked her, ‘Do you like this?’ She loved it and wanted to know when it was AS EVERY TENNIS player in Manhattan coming out. She’s my muse,” said Williams. knows, it’s not easy getting court time in the Recently, she wore the “Oh and Oh” ab- city. But fortunately if you’re named Venus stract top to a charity dinner with heels and Williams, that doesn’t seem to be a problem. jeans. “ Yo u can mix and match them. Yo u Williams, the winner of seven Grand can work out in some of them,” she said. She Slam singles tournaments, held center court plans to expand to a lifestyle line in 2013. Monday at the Town Tennis Club on East 56th “Right now it’s just a sneak peak of it all. It’s Street, where she hit tennis balls with eager my mind and my philosophy coming out in press members who wanted to try out their clothes,” she said. “This is just the beginning. “weekend warrior” forehands and backhands It’s important to have calculated growth. Yo u on her. Williams, 31, couldn’t have been more have to be strategic.” gracious. Dressed in her new EleVen by EleVen includes a tournament dress, Venus Williams tennis dress, she was poised, classic flutter skirts, tanks and sports bras friendly and even took it easy on a reporter in polyester and spandex jersey, as well as who likes to think she has pretty good strokes. graphic V-necked T-shirts in 100 percent cot- Even though she was no match for Williams, ton jersey. For men, there are fashion polos, she did let her win a point. V-necks and crewnecks in nylon and spandex, Williams was in New York to launch her as well as 100 percent cotton. The line, which new tenniswear collection. Coming straight wholesales from $17 to $48, features graphic from a practice herself, she had to borrow prints, abstract prints and rose-gold metal ac- silver dangling earrings from her sister Isha cents. While she doesn’t have a footwear line to get ready for the press event. Williams is yet, she said someday she would like to de- working with a manufacturing partner, Ugo sign sneakers under the EleVen label. “That Capasso, and is producing the collection in would be awesome. Now I wear whatever Los Angeles. matches the outfit,” she said. “She’s fully involved in the design, which Williams, who’s also a spokeswoman for makes it easy for us,” said Capasso, who has Jamba Juice and Wilson Sporting Goods, said already begun selling to country clubs and has it’s a challenge to juggle her tennis and fash- received reorders. This week, they shipped ion careers, but she’s as ambitious about her to the Tennis Warehouse, a large online ten- tennis game as she has always been. nis retailer. EleVen will offer three small “I definitely love tennis. I just got back on capsules this year, and next spring, the line the tour. It was a blast and a roller coaster. It will be three times the size, said Capasso. was awesome,” she said. Distribution will be expanded to department After being sidelined for six months with and specialty stores and more pro shops. Sjögren’s syndrome, an autoimmune dis- Known for her fashion sense on and off ease, Williams had to withdraw from the U.S. the court, Williams is serious about devel- Open and the Australian Open. She started oping an active sportswear business. This is playing again in March at the Sony Ericsson her second attempt to develop a collection. Open tennis tournament in Miami, where she In 2007, she founded EleVen exclusively for reached the quarterfinals. The illness limited Steve & Barry’s, the apparel chain that went her to 11 matches in 2011 and she finished into liquidation in 2008. She went on to do a outside the Top 100 for the first time in 15 partnership with Ralph Lauren and designed years. She is ranked No. 70. some tennis pieces for Gilt Groupe. Williams said she has her illness under She said the relaunched EleVen collection control, has committed to a vegan diet and is isn’t inspired by the latest trends, but rather playing well again. “I feel like my game, espe- comes from deep within herself. “It was in- cially in the last few days, is starting to feel spired by inside of me. For me, it’s about how like it should feel,” she said. do I see it, as opposed to what’s the latest Asked how she’s able to balance both a design. If something is a good design, people tennis and fashion career, she replied, “It’s will relate to it,” said Williams, who has an not easy. I’ve got a good partner. I’m someone associate degree in fashion design from the who likes to do everything. I had to follow Art Institute of Fort Lauderdale. up on everything. I realize there are capable Williams explained that when a consum- people around me who are very good as well, er gets dressed in ready-to-wear, she gets and you have to trust them. I just got to that to choose the designer, fabric and style she point about three weeks ago. My life is so wants to wear. But in sports apparel, she is much better now. I’m starting to have a life.” not able to do that. A consumer has to wear She said she intends to get the word out whatever that sport requires. “EleVen allows about the new collection “by winning match- you to be fashionable or less fashionable. es.” She also gave a shout-out to her fans, who Your personality comes out,” she said. were asking for a collection and also wanted Williams, at 6 feet 1 inch, has always had her to return to the tour. She’s in constant a philosophy, “Look good, play well,” and she contact with them via Twitter, Facebook and said if you don’t look good on the court, your “face to face.” Venus game is going to be affected. Does she envision some of her tennis Williams Throughout her tennis career, Williams friends wearing the collection on tour? wears has experimented with different looks on the “I’d like to get some of the younger players EleVen’s court, to varying degrees of success. “I was to wear it. I’ll be the kind of person that it polyester wearing lace and fringe and experimented wouldn’t just be about the clothes. I’d prob- and spandex with how far I could go on the tennis court ably say, ‘Here are your outfits for these two jersey top and still play without thinking about what I tournaments. Also here are the earrings and and skirt. was wearing. Those experiments are over,” the necklace. Please wear it with this hair she said. band,’” she grinned. For her own line — which features strong, Williams said she’ll match her earrings to simple and classic designs — she brings her her tennis outfits on the court. “Accessorize, love of art and watercolor and even incorpo- accessorize, accessorize.” That is her man- rates some of her original prints, including tra. “In practices I’ll wear my hair down,” one called the “Oh and Oh” design, a play on said Williams, who was wearing her hair tennis scores. Some of the styles have secret, down during the interview and tennis rally. handwritten messages from Williams such as But when she gets down to business in a real “Bring It,” and “Oh and Oh, Beat ’Em,” which match, “I’ll wear it up a little more. It’s roll- are hidden in each piece of the collection. up-your-sleeves time.” Williams recalled when she started design- Williams said she’d love to design earrings, ing the dresses, she had to sketch 12 dresses but she’s got to pace herself. “One step at a before one was OK. But for the “Oh and Oh” time,” she said. “And I definitely want to play PHOTOS BY GEORGE CHINSEE tournament dress, she did only one sketch. tennis. I want to get to the top again, absolutely.” WWD TUESDAY, MAY 1, 2012 7 WWD.COM

EleVen’s polyester and EleVen’s nylon spandex jersey tank and spandex FASHION SCOOPS top and nylon and piqué polo spandex piqué skirt. shirt and skirt. TITANIC SALE: The disputable and technological innovation. silk kimono that was said to Credited with the creation have been worn by Lady Duff of the “stonewashed jean” in Gordon when she escaped the Seventies, the Girbauds the Titanic sold Thursday have long been pioneers in the for $75,205. “An anonymous denim industry. Recently, they international collector who have concentrated their efforts was very well-versed about on the creation of chemical-free the controversy bought it,” denim treatments. said Bobby Livingston, vice The exhibit will run from president of RR Auction, which Oct. 26 through May 6, 2013. conducted the sale of Titanic During that time, it is to memorabilia. The item was contribute pieces to the eighth among the five top sellers, with annual International Design a letter penned by the ship’s Biennial, a celebration of heroic bandleader Wallace innovative design hosted by Hartley that sold for $154,974 the small southeastern city of being the standout. Saint-Etienne from March 12 to Livingston said Friday 31, 2013. — CAMILLA VOGT he was not at liberty to say what the buyer’s plans for the NEW TIME: Watch executives kimono are and whether it will raised a glass at The Carlyle be displayed publicly. hotel in Manhattan Thursday Before the auction, family to kick off the second annual members of Gordon challenged Madison Avenue Watch Week. the Amherst, N.H., auction The events, which officially house’s claim that she wore the run until Friday, are open to garment in a lifeboat after the the public and will feature doomed vessel went down and watch previews and launches, later aboard the RMS Carpathia. discussions with watchmakers Gordon was an established and presentations regarding fashion designer who created trends and designs. Brands collections under the Lucile partaking in the festivities label. — ROSEMARY FEITELBERG include Antiquorum Auctioneers, Asprey, Blancpain, SEARS — TRENDY AND RUGGED: Breguet, Buccellati, Chopard, Sears, attempting to escape its David Yurman, de Grisogono, dowdy reputation, is getting F. P. Journe, Georg Jensen, trendy for fall by injecting Girard-Perregaux, Graff, its key private brands with Mauboussin, Montblanc, Porsche EleVen’s polyester polka dots, stripes, skinny Design, Stephen Russell and and spandex jersey legs, leopard prints and lots of Vacheron Constantin. tank top and shorts. colored denim. Its Kardashian “Madison Avenue is the Kollection, launched last largest fine watch marketplace year, gets flirtier for fall, with in North America,” said Matthew VENUS’ some sensual short-in-front, Bauer, president of the Madison longer-in-the back dresses, and Avenue Business Improvement TOP FIVE sexier skin-tight body dresses, District. “And as there is a as well as structured jackets, fashion week that launches FASHION TIPS while keeping the prices under all the new collections. Watch $100. The junior-based Bongo Week on Madison Avenue FOR TENNIS collection keeps it promotional launches all the new watches Mix in all white every now with jeans that open at $54 but that have been released at and again. You never want to go on sale pretty quick. Bongo Basel World and the SIHH forget the roots of the game. is also introducing collapsible [Salon International de la sunglasses. The long-standing Haute Horlogerie] show.” Apostrophe line is changing — ALEXANDRA STEIGRAD Wear something you feel its name to Metaphor as part confident in. You want to walk of the updating. “We are really BAND AID: With rousing live out there feeling like you’re pushing to be on trend and performances from Manu going to win the match. Wear relevant,” said a spokesman. Dibango and Imany, the fashion something that accentuates However, there was no crowd thronged to Tommy comment on a report that Hilfiger’s Avenue des Champs- you and works for you. Sears is injecting some Elysées flagship on Thursday ruggedness into its men’s night for the Paris launch of Don’t be afraid to mix in offering by collaborating “The Promise Collection,” a some shorts or even capris, with Outdoor Life on a major line manufactured in Africa even if no one else is doing it. private brand inspired by with proceeds benefiting the magazine. According to Millennium Promise, an Don’t forget accessories. sources, the Outdoor Life international nonprofit brand could launch later organization that aims to halve Even if you’re playing this year and will include a poverty in Africa by 2015. sports, you can wear a cute generously spaced shop with “She’s amazing, she has soul visor, a stud earring or a wide array of outerwear, in her voice,” said the night’s a cute wrist band. footwear, packs and other host, Yelena Noah. Noah, who is gear. It’s a case of Sears, a jewelry designer, revealed Regardless of all the which generally does best she has a charitable project selling tools and appliances, in the pipeline herself. She is other rules, dress to win. capitalizing on its macho developing a jewelry collection side to bolster its apparel with women from a community merchandising. — DAVID MOIN in Suriname. “It will be based on their cultural identity, very JEAN GENIE: Following its recent ethnic looking. But it’s still in renovation, the Museum of Art the pipeline,” explained Noah, and Industry in Saint-Etienne, adding that she hopes to launch France, is planning a large it in the U.S., where she is exhibition to commemorate based, this fall. the 40th anniversary of design Backstage after her concert, duo Marithé and François Girbaud Imany, who used to be a model, this fall. The event will mark said she is busy promoting her Marithé + François Girbaud’s debut album, “The Shape of a first-ever exhibition in France. Broken Heart.” Entitled “L’autre jean” (or “The “It’s the form of the African Other Jean,” in English), the continent. When you look exhibit is to feature a selection closer, that’s the shape of a of pieces demonstrating the broken heart to me,” said synthesis between creativity Imany. — KATYA FOREMAN 8 WWD TUESDAY, MAY 1, 2012 ’’ WWD.COM Indian Cotton Exports to Start Again Magaschoni {Continued from page one} major cotton producer, is forced to import which had dropped in the last two months, Taps Kearney volatility, will give a boost to global cot- at much higher prices to meet the domes- can now be expected to rise once again. ton demand.” tic demand of the industry,” Sharma ex- “My prediction is that the farmers will SHAUN KEARNEY has been named The meeting of the group of ministers plained earlier, describing the move as benefit completely in this process.” executive vice president and creative was chaired by Finance Minister Pranab “judicious” and “considered.” Cotton exporters in Gujarat and director at Magaschoni Co. Mukherjee and included Agriculture N.P Hirani, chairman of Maharashtra Maharashtra reacted to the announce- Kearney succeeds Jeffrey Thorpe, Minister Sharad Pawar, Sharma and C ment with relief. who left the firm six months ago. Rangarajan, chairman of the prime minis- “I lost my contract with the sudden Most recently, Kearney was cre- ter’s economic advisory council. If the decision by India ban and the country lost a huge amount ative director and executive vice Revised estimates of cotton have of foreign currency,” said B.T. Valia, president at Cynthia Steffe. Before predicted that India will produce more chairman of Cotton Asha, one of the big joining Steffe in 2008, the British de- than 3.5 million bales this cotton season, to resume normal raw manufacturers and exporters of cotton signer was vice president and creative which runs until the end of September. from the state of Gujarat. The ban on Indian cotton exports was cotton trade remains He said one of the continuing gray areas Shaun made on March 5, at a time when cotton ex- in the process is the lack of consultation of Kearney ports touched 9.5 million bales and abrupt- in effect, it will ginners by the government-owned Cotton ly stopped the exports, much to the dismay Advisory Board, resulting in inaccurate of farmers and exporters. Adding to the data on forecasts and stocks of cotton. consternation was that there were already benefit the entire “The government needs to review 2.5 million bales of orders for exports when the situation very carefully,” he said. “It the ban went into effect. However, the gov- cotton industry, makes a huge impact on the economy ernment relented and let the pending or- and India loses both faith and money.” ders get clearance one week later. as artificial trade While the government is still keen

“This is a positive development,” said on building a strategic reserve of cotton, Jimi Celeste Photo bY Dhiren N. Sheth, president of the Cotton Dhiren Sheth, president of the Cotton Association of India, speaking about the restrictions have been Association of India, said, “Creating a stra- director at Kenneth Cole New York lifting of the cotton export ban. “It was a tegic reserve in India for ensuring supply of women’s sportswear, and earlier held travesty of justice. There is no country in shown to increase cotton to the domestic textile mills on the design posts at Max Mara, Laundry by the world where a farmer should have to lines of a similar reserve in China is wrong Shelli Segal and Randolph Duke. suffer at the cost of industry. The govern- price volatility. since the situations in India and China are “Shaun Kearney is a very talented ment should keep it free and let every- not comparable. China is a huge cotton-defi- and skilled designer that can capture one compete — the mills, the ginners, the — J. Berrye Worsham, cit country, whereas India is a huge surplus the spirit of the Magaschoni brand and farmers. It is important that they don’t cotton economy and the cotton is available evolve its design and product as we look flip-flop and set up procedures that are Cotton InC. to the Indian mills at their doorstep.” to expand our business in the domes- followed through.” Cotton farmers have already been tic and global markets,” said Monica Farmers have been indignant about the State Cooperative Cotton Growers reeling from this year’s falling cotton Forman, president of Magaschoni. “He development because they felt the govern- Marketing Federation Ltd., said the deci- prices, which have come down by more just had all the right sensibilities in ment had sided with the textile industry sion to remove the ban had come “very than 60 percent from last year, and ana- product for our customer.” at their expense. However, one reason late,” but “was still very welcome.” lysts are predicting a fall in cotton acre- Magaschoni, established in 1989, is the government banned the exports was “The cotton-growing farmer has not age for the coming year. sold in 800 department and specialty because “we could not countenance a been properly supported with this poli- — WITH CONTRIBUTIONS FROM stores worldwide and has four free- situation where the country, which is a cy,” he said, predicting that’’ cotton prices, ARTHUR FRIEDMAN, NEW YORK standing boutiques. — L.L. For the truly creative mind, a good idea is just the beginning.

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w01a008b;12.indd 1 4/30/12 8:05 PM 04302012200619 ROCKING ON: The Rockettes alums gathered Sunday for their annual luncheon. WWDSTYLE PAGE 10

Mobbing Meester

SHANGHAI — The scene at the opening of Harry Winston’s first freestanding pavilion was pandemonium thanks to appearances by Leighton Meester and Ed Westwick, and the insane popularity of “Gossip Girl” among the Chinese viewing public. For more, see page 10.

PHOTO BY DAVE TACON

said editor in chief Cindi Leive. the September issue would be his portraits of personalities MEMO PAD “In June you’ll be surprised so…2007. — AMY WICKS including Rick Owens and Patti and, in July, we’ve gone in a Smith, while upcoming projects LOOKING UP: Earlier this different direction.” BRANCHING OUT: Joakim Andreasson, include Fashion20(XX), a digital year, Glamour introduced a Leive is now focused on the who served as managing exhibition platform. redesign and the numbers look September issue, which will be director at HL-ART/Helmut — JOELLE DIDERICH AND promising after some difficult completely devoted to fashion. Lang Studio for the past seven MARC KARIMZADEH times on the newsstand. Every single editorial page will years, is going solo. Andreasson, Insiders said the March issue, feature some kind of fashion who helped Lang transition CROSSING BORDERS: The Italian with Amanda Seyfried playfully angle, an unprecedented format from fashion to the art world, edition of L’Officiel is set to posing with a yellow hair for the title. “We’ve seen a is launching cultureEDIT, a hit newsstands in September. dryer, was up 9 percent on the really strong response to some new firm based in New York Published by Martina Mondadori’s prior year, and the April issue new fashion features since and Los Angeles. Andreasson Memoria Srl in collaboration sold 10 percent more than the redesigning this spring,” said will focus on brand consulting, with Paris-based Les Editions 2011 edition. The May cover, Leive. “Women are obsessed curatorial direction, public Jalou, the fashion magazine featuring a topless Lauren with fashion, and not just the relations and representation will be overseen by Memoria’s Conrad, is trending up as well, clothes but the people, shows, of artists and designers — or, chief executive officer Carlo in the high-single digits. “It news — everything.” Over the as he put it, will serve as a Mazzoni. L’Officiel, which counts was time to take some risks next two months, the title will “strategic catalyst progressing 16 international editions, also and we’re going to continue to live-tweet the “making of the contemporary culture.” Clients features a men’s Italian version, make changes on the cover,” The March issue of Glamour. issue.” A documentary about include Robert Knoke, known for launched in 2009. — FABIANA REPACI 10 WWD tuesday, may 1, 2012 Ed Westwick, Frédéric de Narp For more photos, see

and Leighton acon t eye. Meester. WWD.com/ ave d

Shanghai Shake-up by photos There’s A good chance that he was right. Within half harry Winston may go down in an hour of the event, photos history here on the Mainland as and comments about Westwick, the first brand to give chinese Meester and harry Winston an up close and personal had been forwarded thousands encounter with none other than of time on sina Weibo, which chuck Bass and Blair Waldorf is china’s top microblog. in of “gossip girl.” February, the jeweler opened its The jeweler celebrated the own branded account on sina’s opening of its first freestanding microblog, which now has around pavilion in shanghai Friday and 30,000 subscribers. flew over Ed Westwick and Leighton De narp is adamant that Meester, actors who play chuck harry Winston is not trying to and Blair on the hit TV series, to “democratize” luxury on the participate in the festivities. it Mainland. The brand has had was the first time the stars had an almost secretive presence ever visited the country. here for four years with a by- it is not an understatement to appointment-only boutique in say that “gossip girl” is insanely Beijing in the Peninsula hotel. in eye popular in china, where countless January, it opened a small store fans watch episodes via pirated in the Peninsula in shanghai. The DVDs sold on the street or online executive said there are plans video Web sites. Masses of young to open a location in hangzhou become the de facto media chinese women swarmed the next year as well as a select outlet for discussing and sharing new two-story, 5,800-square-foot number of other second-tier celebrity news and gossip on the harry Winston flagship, which was cities. During the next four years, Mainland. And now, perhaps more designed by new york architect harry Winston will grow its retail than ever, families are pouring William sofield of studio sofield presence from its current 24 tens of thousands of dollars into and is located in Xintiandi, a stores to 50 locations globally. the weddings of their sons and high-end shopping district, to see “We want to be the opposite daughters, many of whom are the actors during a ribbon-cutting of all of the other luxury brands only children due to the country’s ceremony Friday afternoon. that are massively expanding in one child policy, which multiplies it was a scene of utter chaos. china, that see china as the el the amount of money parents are Barricades surrounding Dorado of mass luxury,” de narp willing to shell out. the store almost collapsed as said. “We see china as being for “This is a phenomenon that is a wave of women screaming us the most exclusive place in the booming and becoming very, very “chuck! Blair! chuck! Blair!” world, and we intend to stay the important,” de narp said. heaved in towards Westwick and most exclusive timepiece maker yet harry Winston is casting Meester when they appeared and jewelry maker in the world.” a wide net on the Mainland. This outside. During the middle of it is clear, however, that harry was evident at the gala dinner the ceremony, a district police Winston is trying to democratize that followed Friday afternoon’s chief walked up to Frédéric de Narp, a dream, particularly for the 70 frenzied ribbon cutting ceremony. president and chief executive percent or so of chinese women Westwick and Meester attended; officer of harry Winston inc., who, according to de narp, do not yet what was noticeably different and warned him that, if things have a diamond solitaire wedding the second go around was the Views of the Harry Winston flagship in Shanghai. got much more out of control, ring. The brand is also clearly presence of a slightly older and authorities would come and shut capitalizing on the intersection of arguably more sophisticated set high jewelry collections, with designated watch gallery harry the whole thing down. shortly various cultural, technological and of chinese women dressed in a specific focus on pieces from Winston has created within one after the event, rumors spread social factors to plant a seed of an understated evening gowns and Ultimate Adornments, the new of its own stores. De narp said on chinese microblogs that the aspirational fantasy of diamonds, noticeably large jewels. york-based house’s exclusive the brand will increase its watch “gossip girl” stars had caused weddings and princesslike The dinner, held in a massive collection of 40 one-of-a-kind distribution business in china traffic accidents. romance with these women. tent alongside a lake in a park diamond and platinum necklaces, over the next couple of years. in the flagship after the such factors include a certain nearby Xintiandi, was one of bracelets, rings and earrings. The evening also featured ceremony, de narp seemed infatuation with American pop opulence and elegance. The The brand has also introduced a performance by Jay Chou, a slightly shell-shocked. “And culture among chinese females walls of the structure were lined a limited edition watch collection Taiwanese musician and actor, now imagine how this is all who download Western movies with small exhibits aimed at for shanghai, which will be who is a notorious heartthrob spreading online on chinese and TV shows from the internet. illustrating the history of harry featured in the flagship’s among young chinese. social media,” he said. Meanwhile, microblogs have Winston and the evolution of its timepiece salon, which is the first — lara Farrar Rockettes of Ages doing a lot of math while you’re up Jean Radnik there. you have to be conscious of Martin, a every detail from the tip of your Rockette from toe to the tip of your finger.”

1951 to 1953. lexie moreland The 80-woman cast rehearses in spurts for various productions throughout photo by the year, such as the Macy’s Thanksgiving Day Parade, but things get hard-core in October when training begins for the radio city christmas spectacular with workouts six days a week, six hours a day. “At the end of every day, we all go home and take an ice They’re sTill kicking, bath,” said Rhoda Kaufman Malkin, a quite literally. rockette for the past 11 years. The rockette Alumnae grueling as that sounds, Association held its annual it’s nothing compared to the

ap luncheon on sunday schedule of yore. Take it from / afternoon at the Out hotel’s Jean Radnik Martin, 80, who was a nyc

t

U Xl nightclub in new york, rockette from 1951 to 1953. o marking the organization’s “We worked 52 weeks a year the 80th year and honoring Linda back then,” she said. “But i loved Haberman, who has been every minute of it. My pay was choreographing the dance $77.50 a week but i would have ondareff/ b troupe for 12 years. worked for nothing.”

iane “linda is no joke,” said Kristin so can she still do that d

Linda Haberman (center) with Altfather, a current rockette who’s signature high kick? Rockettes alumni. been with the group for 16 years. “Oh no,” she laughed. “Maybe

photo by “it’s precision dancing so you’re to my waist.” — Taylor Harris

w01a010a.indd 10 4/30/12 7:33 PM 04302012193559 WWD tuesday, may 1, 2012 11 WWD.COM Varvatos Receives Design Award

By Marni Prichard Manko John Varvatos PhiLadELPhia — designer and “Fashion Star” mentor John Varvatos was on hand Saturday night at the academy of Music for The Verizon Philadelphia University Evening of innovation, where he received Philadelphia University’s 2012 Spirit of design award. First given to Geoffrey Beene in 2002, A look inside the new store. the award is presented to designers who have made outstanding contribu- tions to the fashion and design indus- try. Previous winners include Tommy Bottega Veneta’s Men’s Move hilfiger, calvin klein’s Francisco costa, Mary McFadden and “Project runway” have been selected especially for the man season one winner Jay Mccarroll. By daVid LiPkE who lives and shops there.” allen Sirkin, president and chief op- Globally, men’s comprises about 30 erating officer of PVh corp. and a 1964 nEW York — Bottega Veneta opened percent of total Bottega Veneta sales. graduate of Philadelphia University, a new men’s-only store on Saturday at The new shop is bathed in elegant, opened the affair by presenting the award 23 East 67th Street, near the corner of neutral tones with a polished concrete to Varvatos, calling him an icon who Jason Minick photo by Madison avenue. it is the luxury brand’s floor and walls finished in suede, as “mixes the flair of Motown music with the vation and copycats, and there are a lot of second men’s store — following on the are the interiors of fixtures and display edginess of an urban environment for his people who just do versions of versions of heels of a unit that opened in Shenyang, boxes. Two dressing rooms are clad in award-winning men’s wear collections.” versions. But everybody here today needs china, last May — and the first in the U.S. hemp cloth and the rear tailored cloth- The 2,300 design students and other guests to think about being an innovator, not a fol- The long, slender space is 1,661 square ing area is decorated with Bottega Veneta in attendance were shown a gritty black- lower. You don’t want to be a wannabe. You feet and was designed by Bottega Veneta canapé sofas. all elements of the interi- and-white video montage of Varvatos’ run- want to be an about-to-be. You want to be a creative director Tomas Maier. it offers ors are custom-made, including leather- way reels, clips and ads, with imagery of leader,” he implored them. a full array of men’s bags, small leathers sheathed door handles, as is the case music icons ranging from LL cool J to iggy in line with the innovation theme, ear- goods, luggage, shoes, belts, sunglasses, with all Bottega Veneta stores. Pop flashing throughout the flick. lier in the night Varvatos confirmed that jewelry, home items, tailored clothing, a door in the back of the store leads Varvatos bounded up on the stage to ac- he has plans with his new partner, Lion dress furnishings and a small amount to a quiet, ivy-lined outdoor seating area cept the award and immediately infused capital, to expand his global retail pres- of sportswear. it is located in an historic inlaid with ipe wood flooring. some raucousness into the usually staid ence, as well as enter the women’s wear sec- townhouse, previously occupied by isaac at the end of March, Bottega Veneta op- academy. “i want all the students to stand tor. “We’re not sure when, how or where,” Mizrahi, and adjacent to a creed fragrance erated 24 directly owned stores in the U.S. up and rock this place like it’s never been he said, “but it’s definitely on our docket.” boutique. Several art galleries and a single and 171 globally. in november, the brand rocked before,” he belted out. “Forget in keeping with the decidedly rock ’n’ residence are situated above the store. opened a women’s store at 849 Madison about me. This night is about you guys.” roll vibe of the night, the fashion show The PPr Group-owned brand has avenue, three blocks north of the men’s after the thunderous applause ceased, portion of Evening of innovation followed embarked on a strategy of tailoring some store. a Fifth avenue flagship carries both Varvatos spoke of his appreciation for re- Varvatos’ appearance. Student designs specialized stores to certain customer men’s and women’s collections. ceiving the award, and then moved onto ranged from Gustav klimt-inspired futur- segments and neighborhoods. The company did not reveal any spe- words of inspiration for the burgeoning de- istic separates to a black-and-white tulle “Philosophically, Bottega Veneta is cific further plans to roll out additional signers. “What i love about this evening is tiered gown provoked by the idea of the about individuality. We now have the stores segregated by gender. “our gen- that it’s about innovation,” he said. “We’re Victorian era with armadillo influences, breadth of product, and the years of ex- eral plan is to continue opening stores in an industry that’s a cross between inno- which won Best of Show. perience, to effectively tailor how we ap- wherever there is the opportunity and the proach our customer,” said Maier. “The appropriate location…and open comple- new men’s store will enable us to offer a mentary stores that are precisely edited more engaging shopping experience, in a to a client in a particular neighborhood,” neighborhood store, where the products said a spokesman.

Adidas Reports Solid Growth For more career opportunities log on to WWDCareers.com. quarter and full-year sales, hainer By kaTYa ForEMan heralded 2011 as “the best year in the history of our company.” adidaS aG said Monday that it had adidas’ results should put further surpassed market expectations with pressure on local sporting goods com- a 38 percent spike in first-quarter net petitor Puma SE, which is owned by COMMERCIAL COMMERCIAL profits and has increased its financial French retail-to-luxury group PPr, to REAL ESTATE REAL ESTATE outlook for the year. shape up its act following a disappoint- DOMAIN NAME FOR SALE The world’s second-largest sport- ing performance in the first quarter of ApparelGuru.com is a premium appa- rel industry Domain Name available ing goods manufacturer after nike inc. 2012 that was impacted by the sluggish for sale. Ideal domain name for registered preliminary net income of European economy. Puma reported a 4.9 importers,exporters,manufacturers or other clothing related businesses. Ask- 289 million euros, or $378.4 million, in percent drop in income in the period to REMARKABLE SHOWROOM SPACE ing $9990 or best offer. the three months ended March 31. 73.9 million euros, or $96.8 million. Showroom space available in 12 story Call rajesh at 1-818-294-1747 doorman builidng. Space is approx Boosted by increases in all regions Western Europe — adidas’ weak- 1500 sq. feet on 9th floor; Floor is and segments — particularly in Greater est link in terms of currency-neutral, shared with premium denim brand Floor features 2 walls of windows for china and Japan as well as from the first-quarter regional sales — posted each tenant, bright natural lighting, spacious open showroom area with TaylorMade-adidas Golf brand — group 7 percent growth. Leading the pack workstations, reception area, 2 private sales in the period gained 17 percent to were china and other asian markets, bathrooms and a shared kitchenette. 3.8 billion euros, or $4.97 billion. which together reported a 26 percent Please contact Kelli: 212-931-5500x108 dollar figures are converted at aver- revenue jump. Sales rose by 15 percent Showrooms & Lofts age exchange rates for the periods to in European emerging markets; by 14 BWAY 7TH AVE SIDE STREETS PATTERNS, SAMPLES, which they refer. percent in Latin america, and by 11 Great ’New’ Office Space Avail PRODUCTIONS ADAMS & CO. 212-679-5500 Full service shop to the trade. The herzogenaurach, Germany- percent in north america. Fine fast work. 212-869-2699 based company raised its guidance for adidas expects commercial irregu- 2012, when sales are expected to in- larities discovered in its reebok india crease almost 10 percent on a curren- co. will negatively impact the compa- cy-neutral basis. The growth was esti- ny’s consolidated financial statements mated in the mid- to high-single digits. this year. it estimates a pretax nega- “our first-quarter performance con- tive impact of up to 125 million euros, firms the outstanding brand momentum or $165.5 million at current exchange. and global power of the adidas Group,” a new local leadership team was in- said herbert hainer, the company’s stalled in india at the end of March. MERCHANDISER chief executive officer. “our investments By brand, adidas saw double-digit Manufacture company in NYC looking for merchandiser for ladies Missy line in brands and channels are yielding an growth in all regions and most major cat- with minimum 3 to 5 years experience unprecedented period of growth for the egories, with a 16 percent sales increase Email resume:[email protected] group, as we continue to excite consum- on a currency-neutral basis. TaylorMade- ers and customers with the ultimate in adidas Golf ’s sales rose 32 percent. product and brand experiences.” reebok’s 7 percent revenue decline was The first-quarter numbers follow an attributed to the transfer of sales to the (800) 423-3314, or email [email protected] already strong 2011. in March, during reebok-ccM hockey segment. adidas the presentation of adidas’s fourth- will hold a conference call Thursday.

w01a011a;8.indd 11 4/30/12 7:37 PM 04302012193815 12 WWD TUESDAY, MAY 1, 2012 WWD.COM

Yohji Yamamoto Target Readies ‘Shops’ Kickoff in Hyères. a Target event. Go International re- P-Fresh grocery initiative, it lost By SHARON EDELSON portedly contributed $100 million in some of its merchandise advantage annual volume to Target, a small frac- “and things began to change. They’re NEW YORK — The Shops at Target, tion of the retailer’s $47.3 billion in trying to use nondiscretional items one of the mass retailer’s biggest revenues last year. to boost incremental traffic.” merchandising initiatives in recent Target is hoping that The Shops Target already has chosen its next years, will be unveiled on Sunday will be both a big volume generator series of The Shops participants. There at all 1,763 Target stores in the U.S. and that it will have a halo effect on will be four stores, two dedicated to and on target.com. its image. By partnering with inno- home and two for fashion, one men’s The five inaugural Shops at vative, stylish stores, Target hopes shop and one women’s shop, bowing in Target feature retail concepts in- to burnish its image with The Shops early September. Thomas declined to spired by The Candy Store in San just as Go International gave it fash- divulge the store names, but said the Francisco, Aspen, Colo.-based ion credibility. retailers are based in Manhattan. Cos Bar cosmetics shop, Boston’s “Whether it will work remains Heriard Dubreuil designed the Polka Dog Bakery’s dog accesso- to be seen,” said Michael Kearal, a Target collection taking inspiration ries, Warren, Conn.-based from the Miami Beach Art Privet House home prod- Deco district. The Webster’s ucts and The Webster, a signature wallpaper appears 20,000-square-foot bou- as a pattern on dresses and tique in Miami that sells blouses. An eyelet dress is luxury apparel, footwear, priced $39.99, a navy dress jewelry and accessories with leaf print, $42.99, and brands. The shops were a navy color-blocked shift, chosen by Target’s in- $39.99. While most store house design team not only proprietors aren’t designers for their unique products, by trade, Target has experi- but for their ambiance, ence in helping them create which Target hopes to re- product. Heriard Dubreuil create to some extent. is more confident than some. The Shops at Target “I’m also developing my own will have a one-time setup collection,” she recently said. “like all limited time pro- “I have all the background GIANNONI GIOVANNI grams,” said a Target Corp. to do products from when I spokesman. “It sparks pur- A collage of items from The Shops at Target. worked at Balenciaga and PHOTO BY chase urgency.” Previous YSL as a merchandiser.” limited time programs have includ- retail analyst at Morningstar. “It’s In other Target news, in the defini- ed Missoni, which was so popular definitely creative. It falls into the tive proxy filed by the retailer Monday Yohji’s Broad Scope Target’s Web site crashed under the thesis that they’re trying to rekindle with the Securities and Exchange {Continued from page one} weight of demand for the products. their merchandise prowess and get Commission, Gregg W. Steinhafel, personal struggle he went through when Wenders Missoni inventory lasted one day back their edge. Target lost its way chairman, president and chief execu- asked him to design 500 costumes for his film “Until while Jason Wu, another limited in the last 18 to 24 months. [The tive officer, saw his total compensation the End of the World” in the early Nineties. “From time designer, sold out in three days. Shops] clearly says Target’s pulling decline by 17.9 percent from a year ago. the beginning I was tired.…I had to create everything, The spokesman said there will out all the stops to reignite the skill His total compensation in 2011 was even very normal jackets and suits to try to make it The Shops at Target exclusive mer- that’s been lacking. Target lost tal- $19.7 million, down from $24 million not look too much Yohji Yamamoto, I really suffered chandise available only online. ented people. I’m hearing that there in 2010. His base salary remained the from the beginning,” he said. “It was a moment when “The Shops is not meant to be an was a lot of talent that went to deal same at $1.5 million, but the value of [Wenders] had made a big hit, ‘Wings of Desire,’ and either-or equation,” he said. “It’s in ad- with the Canadian rollout. You’ve stock awards in 2011 was $4.9 million many sponsors wanted to pay for his new movie, so he dition to how we interpret affordable had some management changes. The versus $8 million in 2010. In addition, was very rich and he could ask me to make 500 outfits. design. We’ll continue to work with part- economy hasn’t been the best for the his nonequity incentive bonus also “He came to Tokyo one day.…He asked me to ners such as Jason Wu and Missoni.” middle-income consumer. They’re decreased to $2.2 million from the pick him up from his hotel and while we were driv- Target discontinued its five-year- fighting a lot of issues. Target is say- $4.1 million awarded in 2010. A sepa- ing along in the car he started talking to me. ‘Yohji, old Go International program late last ing, ‘Lets try to find our merchandise rate bonus of $1.2 million was similar maybe you sometimes have a job and [you realize] year. “Go [International] was a lim- edge that we had in the past.’ They to the one in 2010, and option awards that this is a mistake, but you have to finish it’.…I ited time partnership model,” Stacia need to differentiate themselves.” of $3.7 million reflected an increase. was driving and was, like, ‘Oh yes, I do,’” smiled the Andersen, senior vice president of Kearal believes that when Target — WITH CONTRIBUTIONS FROM designer, before pausing to add, “Sometimes rich merchandising, said in January at became heavily invested in its VICKI M. YOUNG movies make mistakes.”

agreed that the impact of social media is undeniable. Miller can see it on her CKI Talks Tumblr at Decoded Fashion Forum payroll. “Social media has definitely cre- ated more jobs,” she said. “It seems like visuals of current and past ad campaigns personalized styling for users. “We’re not we hire more people to work on that than By WWD STAFF to other elements depicting its intersec- a blog showcasing our personal style in assistant designers.” tion with art, architecture, style and hopes of inspiring you. We’re a blog show- During the “Investor Reveal: Rising NEW YORK — Calvin Klein Inc. is delv- music. Mustaparta’s content will be show- casing your personal style in hopes of Startup Stars” session, Lawrence ing deeper into digital. cased in her own category, #Hanneli, on styling you,” Ylvisaker said, citing celeb- Lenihan, founder and managing director At the Decoded Fashion Forum, which the Tumblr blog, and she is expected to rity stylist Kate Young as one of the site’s of Firstmark Capital, noted that there is took place at Lincoln Center’s Alice Tully give visitors to the blog a behind-the- contributors. “Our focus is shifting from still a huge gap online as companies try to Hall on Monday, CKI executive vice pres- scenes glimpse into the brand, from new search-based purchases to suggestion- “translate the physical world” of retail to ident and chief creative officer Melisa collections to CKI creative directors, based purchases, capitalizing on the com- the online space. That’s one reason why Goldie unveiled Calvin Klein’s latest models and events. CKI plans to support mercial potential of recommending things he expects continued interest in the space foray into social media: the first official its Tumblr blog and Mustaparta’s con- people didn’t even know they wanted yet.” since the intersection between fashion Calvin Klein Tumblr blog, with model, tributions through its existing Facebook Aliza Licht, senior vice president of and technology is still in its early stages. photographer and blogger Hanneli page and Twitter account. global communications for Donna Karan David B. Lerner, an angel investor and Mustaparta serving as contributor. Earlier in the day, a discussion at the International Inc., who mans DKNY’s host of Venture Studio, said he would The launch strengthens Calvin Klein’s Decoded Fashion Forum tackled the fast- Twitter feed, moderated a panel on like to see more fashion brands get in- growing online presence, which got a growing content curation category, featur- Designers & Tech Innovation with Alice volved from an angel investing point of boost during New York Fashion Week ing panelists such as AhaLife chief execu- + Olivia designer Stacey Bendet, Nicole view since they have a unique expertise last February when the brand turned to tive officer Shauna Mei; Buyosphere ceo Miller and Deborah Lloyd, president within fashion that sometimes investors Mustaparta to guest curate its official and co-founder Tara Hunt; Feyt co-found- and creative director of Kate Spade might not understand. Twitter feed in the days around the fall er Eleanor Ylvisaker, and Lyst ceo and co- New York. The three designers see so- Karen Griffith Gryga, ceo of Calvin Klein Collection runway show. founder Chris Morton, who each revealed cial media as a chance to tell their brand FashInvest, noted that industry execu- “We have been fine-tuning our mix of how their respective platforms serve as a story, engage with the consumer and give tive Marty Staff is in the process of form- media, and increasing our financial com- discovery medium for consumers. her a voice. But Licht managed to find ing an angel fund. She also expects to see mitment to digital,” Goldie said. “This According to moderator Daniel Saynt, entertaining ways to tackle the endlessly more activity in the tech space, both as year, our digital spend will be 23 percent of chief creative officer of Socialyte.Co, cura- discussed topic of social media, asking entrepreneurs seek to find solutions to our overall budget. And this will allow us tion used to be a “dictatorship” ruled by questions like, “If your brand was stuck fashion issues and as consumers deter- to take maximum advantage of Facebook, a select few who told everyone else what on a desert island, what app would you mine how shopping online will evolve. YouTube and Twitter, using each platform to buy and what to be interested in. Now, take?” (Lloyd and Bendet, Instagram; Charlie O’Donnell, partner at Brooklyn in a way that makes the most sense for our thanks to the above, everyone can “play” Miller, Facebook “because it brings us Bridge Ventures, said he sees many men brand, while also partnering with other the online curation game. For example, the most sales.”) Licht also asked the introducing female entrepreneurs to in- sites and deploying imaginative ad vehi- two-month-old Feyt, billed as a “personal panel how they deal with negative blog vestors, and noted that women entrepre- cles like site takeovers.” styling Web site that allows users to dis- posts, tweets and Facebook comments, neurs need to help each other more and Calvin Klein’s Tumblr presence aims cover what they like without having to to which Lloyd and Miller respond by develop their version of the “old boys net- to give viewers an editorialized perspec- search,” was co-founded by Ylvisaker and addressing them directly, while Bendet work. Women need to share angel inves- tive of the brand, which can range from Ferebee Bishop as a means to provide said she defers to her p.r. Everyone tors and help each other network.” WWDMILESTONES SECTION II

AMERICAN DREAMERS PAUL AND MAURICE MARCIANO ON THE FRIDAY STRATEGY AHEAD GUESS At 30 From jeans to cocktail dresses, swimwear to jewelry: Three decades of sexy, young American fashion. MYLES AT WORKGROUP LTD. USING MAC COSMETICS; PHOTO ASSISTANT: RUOYI JIANG; FASHION ASSISTANT: ASHLEIGH WILLIAMS; STYLED BY KIM ASHLEIGH WILLIAMS; STYLED BY ASSISTANT: JIANG; FASHION RUOYI USING MAC COSMETICS; PHOTO ASSISTANT: WORKGROUP LTD. MYLES AT

THE ADS THAT MADE THE BRAND

PLUS Finding Riches in Retail

A look from fall. For more, see pages 18 to 22. FASHION PHOTO BY GEORGE CHINSEE; MODEL: SARAH/NEW YORK MODELS; HAIR BY CARI DUPREY AT ARTISTSBYTIMOTHYPRIANO.COM; MAKEUP BY JEN MAKEUP BY ARTISTSBYTIMOTHYPRIANO.COM; CARI DUPREY AT MODELS; HAIR BY YORK GEORGE CHINSEE; MODEL: SARAH/NEW PHOTO BY FASHION

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WWD MILESTONES

Paul and Maurice Marciano PHOTO BY DONATO SARDELLA DONATO PHOTO BY American Dreamers Three decades after its founding, Guess has an American foundation and a global future. By Arnold J. Karr

aul and Maurice Marciano agendas. The anniversary comes on discounting in the malls,” he said united Guess with perhaps the best- sound like they’re just get- the heels of what was by most mea- on the company’s March earnings known of the Guess Girls, Claudia ting started. sures an uncharacteristically difficult call. “Considering what Europe went Schiffer, and heralds a new capsule col- Three decades after found- year for the Los Angeles-based com- through this past holiday season, we’re lection inspired by Schiffer and other ing Guess, the American- pany. Led by a 24.8 percent surge to very pleased with these results.” actresses and models who’ve become Pflavored jeanswear line that would more than $250 million in its expand- He was particularly pleased to be synonymous with the brand and its all- evolve into an international lifestyle ing Asian operations, overall sales able to report that the four-year-old G American, California-sun-soaked image. brand with ongoing denim “cred” and rose 8.1 percent to approach the $2.7 by Guess unit broke even in 2011 and Even with, and partially because of, 2011 revenues of $2.69 billion, the billion mark — more than quadruple was expected to turn a profit in the the big anniversary promotional push, brothers maintain a long list of corpo- the $636.6 million of 2003 — but net in- new year. Guess’s financial expectations for the rate objectives. come, hurt by a settlement charge in- Following Nancy Shachtman’s year are modest. Revenues are expect- These include far deeper penetra- volving a European logistics provider, promotion to president of all North ed to rise 1.9 to 3.4 percent to between tion of the Internet and social media; fell 8.3 percent to $265.5 million. It was American operations in March 2011, $2.74 billion and $2.78 billion, and earn- further expansion of their 1,559-store the first decline since the company reg- little effort was spared to upgrade the ings, limited by increased marketing retail network in the U.S. and abroad; istered a net loss back in 2002, which firm’s women’s assortments, an initia- investment and unfavorable currency continuing development of the more was the firm’s only deficit in 15 years tive that officials inside and outside translation, are forecast to decline to youth-oriented, lower-priced G by as a public company. the company said met with consider- between $2.50 and $2.65 a diluted share. Guess brand even as it continues to Paul Marciano considers the 2011 able success. The same energy is ex- That guidance, issued on March 14, sent fine-tune the flagship Guess label; re- numbers a minor stumble, indicative pected to be invested in men’s wear the company’s shares down more than entry into the Brazilian and Japanese of efforts to maintain and even bur- and accessories this year, even as the 10 percent the following day, to $32.97, markets, and perhaps new or revisited nish the Guess brand amid challenging company invests more heavily in off- and they’ve yet to regain the ground ventures in categories such as lingerie macroeconomic conditions. Even in a line as well as online marketing to they lost, closing at $29.28, up 0.2 per- and home. frantically bargain-oriented holiday commemorate its anniversary and fur- cent, on Monday. The stock hit a 52-week With Paul serving as chairman and environment, brand integrity remained ther elevate brand visibility. high of $45.73 on the last day of May chief executive officer and Maurice the focus. Go to guess.com and there’s already 2011. The final price on Monday values now in the role of non-executive chair- “We managed our resources care- a “30 Gifts in 30 Days” promotion in the Marcianos’ 26.7 percent stake at man following his official retirement fully, especially on inventories, pro- place to promote the firm’s “30 Sexy about $818.5 million, $455.1 million for in January, the 30th anniversary will tecting our brand through the holiday Years.” The same tag line appears on Maurice and $363.4 million for Paul. be anything but the only item on their season, avoiding much of the massive the anniversary ad campaign that re- {Continued on page 10}

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WWD MILESTONES Guess’ Global Retail Presence Current totals and projections for stores.

AMERICAS EUROPE & MIDDLE EAST ASIA 575 561 423 720 – 740 850 – 875 720 – 750

KEY Q2011 TOTAL STORES 2011: 1,559 STORES IN 87 COUNTRIES QPROJECTED 2016 STORES 2016: 2,290 – 2,365 STORES WORLDWIDE

{Continued from page 8} “Domenico De Sole,” he fired off By the turn of the century, brand The recent performance on Wall without hesitation, speaking of the messaging was of necessity taking a Street clearly isn’t something that former president and ceo of Gucci back seat to the company’s viability in TIMELINE pleases the Marciano brothers, who’ve Group. “To do what he did — take a the marketplace. felt Wall Street’s wrath before, but brand that was nearly extinguished, By the time its higher-priced it’s hardly something that keeps them apply his vision and then bring in stonewashed denim jeans in flat- Highlights through awake at night in the homes they oc- Tom Ford, a designer with the same tering fits began to catch on, first at the years. cupy, within easy walking distance of kind of vision — is just extraordinary. Bloomingdale’s and later at such better each other, in Beverly Hills. Having Together, they built back Gucci from specialty stores as Fred Segal, Maurice, 1977: Maurice becomes the first been private and public, sole owners the ashes in the Nineties, and it was Paul and their brothers Georges and of the four Marciano brothers to and partners, they take a decidedly consistency and execution that did it. Armand already were veterans of settle in California. more long-term view. He’s a real architect.” European and then American retailing. QFirst retail store opens in Century They offer similar expressions of ad- Seeking expertise in wholesaling, the ‘FIVE-POCKET HERITAGE’ City, Calif. Others follow in Beverly miration for Lew Frankfort and Reed four brothers had sold half their busi- Hills and New York. “What we have done in the last 30 Krakoff ’s work as brand resuscitators ness to Jordache Enterprises’ Nakash years is build a lifetime asset,” said at Coach, as well as for the many brand- brothers in 1983, and the legal fight to Paul. “Maurice and I, coming to the building successes of Ralph Lauren. regain ownership took the better part 1981: Bloomingdale’s in New York U.S. from France, had a vision of Kismet brought the brothers together of a decade to resolve, finally ending buys, and quickly sells, 24 pairs something American, a brand that with Lauren on a European airline with a jury’s determination that the of Guess jeans in December. was young, sexy and adventurous, and flight in 1985, leading not only to a high- Nakashes had fraudulently induced we’ve never changed that vision. It was altitude brainstorming session but to the Marcianos to sell them a 51 percent 1982: Paul Marciano creates Guess based on denim, with the authenticity subsequent meetings with Lauren in stake. The jury returned full ownership Advertising and begins creating of denim. It’s our five-pocket heritage, New York. Paul called Lauren “the per- of the company to the founders. groundbreaking marketing imagery. what made the brand Guess. With what son I respect most in the industry” and No sooner was that conflict settled you attach to that image, you create his work “legendary.” than cracks began to appear in the Guess Men makes its debut. something permanent and lasting. bond between the brothers themselves. 1983: “It takes a long time to do that and VISIBILITY AND CONFLICT The Marcianos’ own M.G.A. stores were yet it’s very easy to destroy,” he added. Guess has amassed some significant experiencing strong sell-throughs on 1984: Guess launches Baby Guess While “young, sexy and adven- accomplishments of its own in its 30 their own higher-priced, fashion-fo- and Guess Watches. turous” are the three adjectives as- years, emerging as the dominant sur- cused Guess jeans as well as some of cribed to the brand, nouns imme- vivor of the status jeans craze of the the French imports they carried even 1985: First black-and-white ads shot by diately flow forth when the subject Eighties that presaged the premium as department stores were promoting photographer Wayne Maser appear in turns to the corporate attributes they jeans boom of the last decade. heavily and trading down and a num- European fashion magazines to speed most admire, emulate and value in Paul took the lead in marketing the ber of brands were moving into the acceptance of its products in Europe. the Guess corporate culture. “Vision, product, forming Guess Advertising mass channel. discipline and consistency,” Paul con- in the company’s inaugural year and Georges, who owned 40 percent Guess wins first Clio tributed, to which Maurice quickly quickly establishing a consistent cre- of the company, voted “mass” while 1986: added, “Execution.” ative approach that produced some of Maurice opted for “class” and, in advertising award for “Desert” “What I actually think is different the fashion industry’s most iconic and 1992, left the company, working briefly commercial. about us as we enter our 30s is the enduring advertising imagery. Even as with Lawrence Stroll and Silas Chou. value of consistency, about not jumping the young company struggled through Georges attempted to acquire all of 1987: Guess wins second Clio for around so much,” Paul said. the twists and turns of the fashion Guess but instead wound up selling “Picture Show” commercial. A recent round of litigation hasn’t denim business, the sensual black- his stake to his three brothers for $240 altered the ceo’s established admira- and-white advertisements garnered million in cash and bonds, effectively 1988: Footwear and fragrance tion. Considering the time and expense numerous Clio awards, including valuing the company at $600 million categories launch. spent defending itself against charges seven in 1996, and helped to launch and bringing Maurice back into the Guess wins a third Clio award of trademark infringement filed three or invigorate the careers of Guess fold in the process. (Armand would Q years ago by Gucci America, leading up Girls including Anna Nicole Smith, leave for medical reasons in 2003 and for its commercial “Paparazzi.” to a trial that ended only last month and Paris Hilton, Naomi Campbell, Eva later become Allen Schwartz’s partner QGuess products become available for which a verdict is still pending, his Herzigova and future French First in A.B.S. by Allen Schwartz.) in South Korea. choice of role models is a bit surprising. Lady Carla Bruni-Sarkozy. {Continued on page 12}

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WWD MILESTONES TIMELINE

1989: Eyewear launches. QClaudia Schiffer attains supermodel status after appearing in company campaigns. QGlobal expansion continues into Argentina, Canada and Mexico. Qhe Guess Collection line of tailored sportswear for women, now known as Guess by Marciano, hits stores in fall.

1990: Schiffer’s appearance at Macy’s Herald Square in New York draws a record crowd. QThe Metropolitan Museum of Art adds Guess image book, “Nashville,” to its permanent library collection.

1991: Guess opens a men’s megashop in Bloomingdale’s flagship. QThe coffee-table book “A Decade of Guess” hits shelves throughout Hong Kong, Malaysia, Singapore and Taiwan.

1992: Guess expands to the Philippines and Australia. QHandbags and leather lines are launched. An accessories store in Singapore. QAnna Nicole Smith becomes a household name after appearing in a Guess advertising campaign. {Continued from page 10} “We were the first ones to turn Controlling expenses, however, can Because the bonds used in the ac- around at the time and just say, prove more difficult. The brothers 1993: Guess flagship opens on quisition of Georges’ stake were pub- ‘Enough!’ We already had a network of noted that there have been numerous Rodeo Drive in Beverly Hills. lic, Guess began reporting numbers 80 stores, unlike anyone else, and this demands brought to bear by the transi- QThe brand arrives in Brazil like a public company and, in 1996, gave us the ability to be independent,” tion into a retail-focused organization, and Indonesia. became one with a listing on the New Paul said. including the capital intensity of open- Belts, neckwear and men’s leather York Stock Exchange under the ticker “It was very painful when we did ing and operating stores and numer- Q GES. The move coincided with the that,” said Maurice, “and we knew it ous benefits and compliance issues. lines are launched. firm’s decision to begin to shift the was going to be painful, but we also “A wholesale operation can function QSingapore appearance by Guess bulk of its production outside the U.S., knew it was the absolute right decision with something like 200 people,” noted models Smith and Beiron Andersson where its wage and labor practices for our survival and the longevity of Maurice. “This is now a 14,300-person spurs a riot. had attracted the scrutiny of UNITE the brand.” organization.” QGeorges Marciano, who handled as early as 1997. UNITE filed an un- The pain lasted for several years A powerful force from outside the merchandising, leaves the company. fair labor practice charge against the and exacted considerable toll on the family was an integral part of the His brothers buy his shares. company in 1999, which was dismissed company’s stock as the investment in transformation of the company. Carlos the following year but appealed by the retail worked in tandem with the ero- Alberini served as president and chief The Guess Foundation is National Labor Relations Board and sion in the wholesale business. Net operating officer for 10 years, begin- 1994: established to further the company’s finally settled in 2003. income, up to $51.9 million in 1999, ning in 2000, and stayed on as a di- fell 68.2 percent in 2000 and another rector for a year following his depar- philanthropic efforts. REINVENTING THE CONCEPT 62.2 percent, to $6.2 million, in 2001 ture to become co-ceo of Restoration QThe first Guess Journal is published. No longer neophytes in the world of before evaporating completely into a Hardware. With responsibility for lo- QThe complete line is wholesale as it turned 15 as a public $11.3 million loss in 2002. Meanwhile, gistics and retail operations, among showcased in one Bloomingdale’s company in 1997, Guess found itself wholesale revenues declined by al- other areas, and a background includ- storewide promotion. again besieged by competitive pres- most $90 million, to $159.6 million, ing Price Waterhouse and several re- QGuess expands to Colombia sures, this time from a new wave of de- from 2000 to 2002, while total reve- tail organizations, he is often cited, and Italy. inside the company and out, as a vital signer jeans lines that, like the status nues contracted to $583.1 million from QJewelry and swimwear jeans that preceded them, wound up $779 million during that same time force in facilitating change and also collections launch. becoming heavily promoted loss lead- frame, some of it attributable to the putting the company’s relationship ers for department stores intent on drop-off in business after the 9/11 ter- with Wall Street back on track. QAfter being discovered by Paul generating traffic. rorist attacks. Marciano, Laetitia Casta begins her “It was all promotion, all about the But 2003 would prove to be a turn- EUROPE AND BEYOND modeling career in a Guess campaign. lowest price,” recalled Maurice, with- around year for the company. Its Following its 20th anniversary in out trying to hide a look of disgust. shares, at $21.75 on Dec. 31, 1999, 2002, Guess returned to profitability 1995: The label first appears “Jeans became a commodity. It was no closed at $4.19 on the last day of 2002 in 2003 and began a growth spurt that in Spain. longer about creativity.” and spent much of 2003 below $4. even stood up under the pressures of QAnother discovery, Valeria Mazza, As devoted to their adopted coun- Analysts and investors, at first skepti- the Great Recession of 2008. The bot- becomes an overnight success after try as the four Marciano brothers, all cal about the retail strategy, warmed tom line improved, often at a double- modeling for the brand. born in north Africa before emigrating markedly to the stock as results im- digit clip, every year for eight years, a from France, have become, Maurice proved and profitability returned, lift- streak interrupted by the 2011 results. waxed a bit nostalgic when discuss- ing the stock that year to $12.07, 188.1 Revenues have risen without a pause, 1996: Guess wins seven Clio awards ing the tendency of European firms percent above its final 2002 level. with increases of 33.8 and 39.7 percent for the short film “Cheat.” to remain focused on fashion despite Shares were up 4 percent in 2004, as in 2006 and 2007, lifting volume to $1.25 QStore opens in Lebanon. the market-driven pressures of supply profits quadrupled; up 183.7 percent in billion and $1.75 billion, respectively. Quess becomes a publicly traded and demand. 2005, when net income nearly doubled, Even with the decline in overall company listed on the New York Stock “Europe is good for brands,” he and up 78.2 percent in 2006, when it profitability last year, Maurice and Exchange under ticker symbol GES. stated. “There’s a lot of creativity in more than doubled. Even with the de- Paul pointed with pride to Guess’s the U.S., but it’s there consistently in cline last year, profitability was more growth in Europe, which, despite brisk 1997: Guess store opens in Guam. Europe. The jeans companies there, than twice the 2006 level. economic headwinds and a marked Raj Manufacturing becomes the like the luxury companies, are very “Retail was our background before slowdown in southern Europe at the Q creative, very design-driven.” Guess, and we were much more com- end of the year, registered a 9.8 per- company’s official swimwear licensee. Paul noted, “The department fortable in a retail environment than cent increase in sales to top $1 billion stores here were pitching at each we were in a wholesale environment in revenues for the first time. Not only 1998: Stores open in South Africa. other. It was literally a war. But in where there’s no control over what is does that make it the second-largest QThe company launches the 1999 it was Maurice who decided that presented and how it’s sold,” said Paul. segment of the business, behind only Fundraising Scrip Program to our future, to survive and grow, was “Once you control those things, you re- North American retail (up 4.5 percent benefit community schools. to create and build our own network ally control your brand, your message to $1.12 billion), but its growth rate was of stores and distribution. and your product.” {Continued on page 14} Congratulations 14 WWD TUESDAY, MAY 1, 2012

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WWD MILESTONES TIMELINE {Continued from page 12} Chinese and surprised by the slow of the business. But like in Brazil, you second only to Asia’s, where revenues pace of infrastructure development in have to find the right partner.” expanded 24.8 percent to $250.7 million. India, where the company expects to 1999: Guess.com goes live. In what has become a template for double its store count to about 55 this WORD ON THE STREET QRecording artist and companies seeking greater control and year. “They’re totally opposite situa- Wall Street has been far from enam- model Tyrese signs on as an greater recognition of revenues, Guess tions,” Paul pointed out. “In China, ored with Guess in recent months but exclusive spokesmodel. in 2005 took over its European jeans they’ve built more infrastructure in analysts see promising signs despite QA state-of-the-art distribution operations after the expiration of a li- the last four years than the French did the headwinds of a troubled European center opens in Louisville, Ky. cense. The company philosophy about in 40. Meanwhile, in India, the infra- economy, unfavorable currency rates QRetail operations hit global expansion is summarized by a structure just isn’t there. They’ll build going forward and even the continued 50 percent of sales. statement Paul made that year, which a mall in the middle of nowhere with pressure on margins due to higher com- can be seen in the lobby of the compa- no way to get to it.” modity costs, which aren’t expected to Web presence expands ny’s 355,000-square-foot headquarters ease until the second half of the year. 2000: east of downtown Los Angeles: “The GLOBAL GUESSWORK Sterne Agee’s Margaret Whitfield, with launch of guesskids.com. world is our field.” Another untapped market for Guess who was impressed by the improve- QGuess Kids stores open. “Between 2004 and 2011, the com- is Japan. The company exited a joint ment in women’s merchandise last year, QMax Leather Group becomes pany went from $43 million to $1 bil- venture arrangement there in 2006 and expects to see similar progress in men’s licensee for women’s belts. lion just in Europe,” Paul noted, “and has yet to return. “We’ll build our team and accessories and, while it might be QGuess store opens in this was without eyewear and watches, now and go there directly, not with a a short-term drag on profitability, the Nassau, Bahamas. which are a huge business. Even when licensee or franchisee, and build what marketing efforts dedicated to the 30th times are good, Europe is an extreme- Guess has to be for the next 20 years,” anniversary to provide improved recog- 2001: Guess Canada license ly challenging market because it’s so said Paul. “I like to look at the glass as nition for the Guess brand. is acquired. fragmented by language and customs. half full, but they’ve really had 20 years She’s among many who have words In the last two years, it’s been going of darkness there. Now we can start of praise for the continuing develop- through major turmoil. But we’re from from fresh roots.” ment of the G by Guess stores, which 2002: The company celebrates its Europe and we understand the differ- The brothers believe that there are are distinguished by prices below 20th anniversary with the ent ways its markets and businesses still opportunities to be harvested in those of Guess and above those of its publication of the “Second Decade outlet stores as well as by clear, dis- of Guess” oversize book. tinct merchandising. QGuess Collection handbags launch. GUESS REVENUES (000s) “It’s been their best retail concept, QThe label opens its 200th something that could very well work in U.S. store. $3,000,000 the middle of the country,” she said. “It had the best [comparable-store sales] Guess wins four in the company last year and among 2003: $2,500,000 the reasons for that is the clear delin- Mobius Awards. eation between denim, dressy and ca- QFirst M concept store bows sual and the way they’ve made it easier in Atlanta. $2,000,000 to put outfits together with key items, footwear and accessories. This should 2004: Guess Accessories stores open help them boost units per transaction in Los Angeles. $1,500,000 and really makes them stand out in the QGuess by Marciano opens stores crowded world of teen retail.” in North America. Eric Beder, analyst at Brean Murray, $1,000,000 Carret & Co., believes that investors, who were attracted to Guess’ European 2005: Guess Accessories retail penetration until the sovereign debt cri- concept expands internationally. QWomen’s fragrance launches. $500,000 sis on the continent became a liability, are still fearful about the status of the company’s overseas business. 2006: Men’s fragrance launches. “But I think they’re on the right Flagship opens in Mexico City. $0 track as far as turning around their U.S. business,” he said, “and I think 2007: G by Guess bows. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 that better numbers in the second and QGuess by Marciano third quarters this year would go a footwear launches. long way to rebuilding their credibility function. However the economy is Africa, but no single market has captivat- with the Street.” QGuess takes direct control doing, there is always a local need that ed Paul during his period as ceo more He’s upbeat about upcoming ven- of businesses in South Korea you have to address to be successful.” than Brazil, and not only because of its tures in places like Japan and Brazil and China. Paul earlier this year reminded obvious status as a fast-growing market. — “the Guess name resonates in both analysts that Italy, which accounted “We have 40 stores in Florida and places” — but doesn’t believe those can 2008: Guess by Marciano opens first for more than half of European rev- there are 25 flights a day between produce immediate returns. flagship in New York’s SoHo. enues four years ago, now accounts for São Paulo and the cities in Florida,” “It won’t be material for the 31st or less than 40 percent, and that its top 10 he said. “We have extremely strong 32nd anniversaries, but maybe after 2009: Flagship opens in growth markets on the continent, includ- brand recognition among Brazilians that,” he offered. Santiago, Chile. ing Germany and Russia, grew 29 per- and when they hit our stores in Florida cent last year and now represent almost they basically shop, shop, shop.” STILL FULLY ENGAGED 30 percent of the European business. Guess, he reported, is in the “final Maurice, who’s now 63, may be officially 2010: Largest Guess store in The Europe-Middle Eastern region stages” of negotiating a joint venture retired, but he describes himself as “still the world opens on New York’s concluded 2011 with 561 stores and, like deal with a large Brazilian retailer. very, very much involved with strategy Fifth Avenue. Guess’s worldwide total, that’s expected “We knew the demand was there,” and expansion,” prompting his assistant QCoty becomes the licensee to grow by about 50 percent to between Maurice noted, “but it was a matter of to suggest that he “un-retire” in order for beauty, launches Guess 850 and 875 in five years, part of a glob- finding the right partner.” to have more time for himself and his Seductive fragrance. al network expected to expand to be- There are also a few category family. He is pursuing several personal QGuess by Marciano Eyewear and tween 2,290 and 2,365 from the year-end voids that the brothers would like to passions, including the cultivation of his G by Guess footwear are launched. total of 1,559. (Those numbers exclude fill. They had a special affection for a property in California’s Napa Valley and North American retail operations shop-in-shops and smaller formats op- home collection launched in the mid- plans to bring Marciano Estates wine to Q erated by licensees or other affiliates.) Nineties that never quite caught on. market. The winery should be finished pass $1 billion in sales. In Asia, growth will be somewhat “The majority of home collections this summer and, like his property in more brisk, with the 423 total from are along the lines of elegant, classic, Beverly Hills, is just blocks away from 2011: Flagship opens in Panama City. last year expanding to 720 to 750. Its traditional,” Paul said. “We’re young, his brother’s home there. QActress Amber Heard appears in Asian operations are dominated by sexy and adventurous and we think “I talk to Paul five times a day,” he Guess ad campaigns. South Korea, with 283 stores and con- there’s a fit there for a young person or reported. “Our kids grew up together QNancy Shachtman named cessions and a rapidly growing G by a young couple who wants something and the families are very close.” president, North America. Guess franchise among younger South less formal and more relaxed than the As he put the final touches on his QEuropean operations exceed Korean consumers. traditional brand.” plans for Guess’s 30th anniversary last $1 billion in revenues. “The kids there are really trendy,” Maurice, shaking his head, com- month, Paul turned 60, a number he ad- Paul said. “They remind me of the mented that, as closely as people as- mitted “gets caught on your tongue.” He Japanese kids from years ago, and sociate Guess with the bustiers and said he’s healthy, feels great, continues 2012: The company marks “30 Sexy it’s similar in that the Koreans today push-up bras worn by models in its to love his work, the country he calls Years” with publication of “A Third are driving technology the way the ads, the company doesn’t have a North home and even the travel outside of it. Decade of Guess Images.” Japanese kids did. It reminds us of American or Asian lingerie or inner- There’s no requirement for retire- QClaudia Schiffer returns for the Tokyo in the Eighties.” wear licensee. ment in Guess’s bylaws, he noted. “And anniversary ad campaign. The brothers said they’re aston- “It’s such a natural for us,” the chair- the word ‘retirement’ doesn’t exist in ished by the industriousness of the man noted, “and so tied to the sexy part my vocabulary.” THANK YOU PAUL & MAURICE FOR 30 years of inspiration

WE LOOK FORWARD TO 30 MORE. G-III APPAREL GROUP GUESS OUTERWEAR & DRESSES 16 WWD TUESDAY, MAY 1, 2012

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WWD MILESTONES THE SOCIAL STRATEGY GUESS IS FAST approaching the two million fan mark on The store in Milan. Facebook. According to Amber Tarshis, senior vice president of marketing at Guess, the company is focused on con- tinuing to expand its fan base on the social media platform. “We need to be where our customers are, and we know that our young, extroverted customer is an early adopter of new media,” Tarshis said. “For this reason, we’re going to continue to take risks and try new digital platforms as they become available. “The digital landscape is changing every day, so it’s impossible to imagine what we’ll be using in six months, let alone a year. It’s all about bringing the brand to our fans and customers wherever they want to find it.” But more than anything, it’s Finding Riches in Retail paramount for Guess, Guess by Marciano and G by Guess to maintain a single, consistent message across the digital retail has dipped from 50 per- life,” explained Shachtman. media on which it is active, By RACHEL BROWN G by Guess has cent in fiscal year 2000, when While Guess’ original retail 60 stores in including a custom combina- North American wholesale concept may focus on women North America. tion of Facebook, Twitter, WHEN THE MARCIANO broth- accounted for 44 percent of in their Twenties and Thirties, Pinterest, Instagram, Google+, ers, newly arrived in California, its revenues, to 42 percent in its Guess by Marciano concept Foursquare and Tumblr. opened their first U.S. store fiscal year 2012, when North widens Guess’ demographics She calls Facebook and in 1977 at what is now the American wholesale was a to fortysomethings and G by Twitter the “backbone” of the Westfield Century City shop- mere 7 percent of revenues, as Guess draws teenagers. company’s social media strategy. ping center, its customers were it has spread across the world. Shachtman forecast there Being active on the two has listening to ABBA and Queen (The company’s financial re- could be as many as 100 Guess allowed Guess to engage with on their cassette tapes and porting structure places retail by Marciano stores in North a broad, global audience — still getting a handle on credit revenues for Europe and Asia America, up from some 55 but she notes that she’s seen cards. Today, Guess retail cus- within those segments.) today, but, among its newer much success with Pinterest, tomers are smartphone-toting, because “we love watching our social media hounds rocking fans draw inspiration from our out to Flo Rida and Katy Perry, products,” and with Instagram, shopping at nearly 1,600 stores because it “has quickly become spanning 87 countries and on- a key marketing tool for us and line, and experimenting with has allowed us to give our fans a paying for merchandise on behind-the-scenes look at our ex- their mobile devices. clusive events, photo shoots and Music and technology might inspiration, which they love.” have changed dramatically since Guess started in retail, and even since it shifted em- BY THE NUMBERS phasis back to retail around GUESS ON FACEBOOK the turn of the century, but the March 2011: 844,332 likes relevancy of Guess stores to its December 2011: 1,540,800 likes target consumers — women in April 2012: 1,966,755 likes their Twenties and Thirties — Growth: 133 percent hasn’t. Through generations of female shoppers, Guess GUESS ON TWITTER has continued to be a force by September 2011: 23,000 followers adapting to shifts in the retail April 2012: 49,185 followers landscape — it has endured Growth: 114 percent five recessions and as many American presidents — while sticking to the same denim- Tarshis said it’s critical to driven, sexy and daring design match the right digital medium philosophy that emblazoned with each specific marketing its triangle logo on the fashion The New York flagship. and communication effort. For map initially. example, the brand learned “Guess is a brand and not And Guess’ global march is concepts, Guess is concentrat- uct and its product placement. that as much as women “partic- just a shopping destination,” continuing. In China, the com- ing on G by Guess to drive retail It has infused the stores with ipate in droves” on Pinterest, said Nancy Shachtman, Guess’ pany already has more than growth. It is priced 40 to 50 per- better quality goods, and cus- the total opposite holds true president of North America. 100 stores and plans to open cent lower than Guess’ original tomers have been willing to pay for its male consumers. “We don’t follow every trend, 263 new locations this year. concept, and units are mainly a premium for them. The aver- For instance, Guess con- nor would we want to. We focus Paul Marciano, vice chairman located in secondary malls. age unit retail price has gone ducted a sweepstakes on the on our aesthetics. We want to do and chief executive officer, In North America, there are up 20 percent in the last year platform, and “The Guess guys what is right for the long term of has stated Guess’ goal is to roughly 60 G by Guess stores, in its full-price stores. To show- weren’t interested — perhaps the brand. We want to give one build its Chinese store base to and Shachtman said there case the better quality mer- it felt too much like scrap- message to our customer.” 500 doors within five years. In would be around 80 by the end chandise in a better light, an booking?” Tarshis said. “What Guess has positioned its India, Guess expects to open of the year. She predicts the effort began a year ago to tweak we’re learning is that all plat- retail operations, which gen- 50 stores in the next three concept can grow to a “couple the merchandising approach to forms are not right for all ini- erated $1.12 billion in sales years on top of its current 25. hundred” North American enable customers to easily shop tiatives or for all customers.” from North American stores The brand has even stretched stores. “We believe we have de- for outfits. Specific areas within Going forward, she contends in its last fiscal year, for the to Africa with around five veloped an excellent niche in stores are being dedicated to bloggers will play an even long term with geographic di- stores in South Africa. the G market and are making casual clothes, dressy clothes, larger role in the brand’s digi- versification to assure it isn’t Guess isn’t only concerned great progress,” said Marciano denim and accessories. tal strategy — a notion Guess dependent on any single re- with expanding its audience in a recent earnings conference “Right now, what we are has experimented with in the gion. As of March of this year, country by country. It is also call, when he also disclosed focusing on is elevating the past — as will merging the the company had 575 stores in pursuing different age groups. that the brand broke even in shopping experience. When a digital and in-store experience North America, 561 in Europe “Our strategy is to capture the 2011 and is expected to turn its customer comes in now, it is and further integrating social and the Middle East, and 423 customer young, stay with her first profit in 2012. a much better experience. We media into the e-commerce in Asia. Guess’ percentage of when she graduates and then Inside Guess stores, the can bring her to exactly what component of its Web site. revenues from North American stay with her the rest of her company has updated its prod- she likes,” said Shachtman. — RACHEL STRUGATZ NEW YORK PHOTO BY LEXIE MORELAND PHOTO BY NEW YORK

18 WWD TUESDAY, MAY 1, 2012 SECTION II

WWD MILESTONES

WITHOUT WWD TUESDAY, MAY 1, 2012 19 WWD.COM

QUESTION From bluejean days to glittering nights, Guess keeps it glam. Here’s what’s on tap for fall. — Kim Friday 20 WWD TUESDAY, MAY 1, 2012

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WWD MILESTONES 30 SEXY, FABULOUS, TREND-SETTING, FASHION-FORWARD YEARS!

GUESSMACY’S CONGRATULATES ON THREE DECADES OF BEING A GLOBAL LEADER IN THE WORLD OF FASHION 22 WWD TUESDAY, MAY 1, 2012

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WWD MILESTONES AT WORKGROUP LTD. USING MAC COSMETICS; PHOTO ASSISTANT: RUOYI JIANG; FASHION ASSISTANT: ASHLEIGH WILLIAMS; STYLED BY KIM FRIDAY ASHLEIGH WILLIAMS; STYLED BY ASSISTANT: JIANG; FASHION RUOYI USING MAC COSMETICS; PHOTO ASSISTANT: WORKGROUP LTD. AT CARI DUPREY AT ARTISTSBYTIMOTHYPRIANO.COM; MAKEUP BY JEN MYLES MAKEUP BY ARTISTSBYTIMOTHYPRIANO.COM; CARI DUPREY AT PHOTOS BY GEORGE CHINSEE; MODEL: SARAH/NEW YORK MODELS; HAIR BY YORK GEORGE CHINSEE; MODEL: SARAH/NEW PHOTOS BY Congratulations on 30 sexy years! We look forward to the next thirty together 24 WWD TUESDAY, MAY 1, 2012

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WWD MILESTONES

Carré Otis by Ellen von Unwerth, 1992.

Alessandra Ambrosio and Ana Beatriz Barros by Pablo Alfaro, 1999.

Adriana Lima Jason Lewis by by Pablo Neil Kirk, 1994. Alfaro, 2000.

Anna Nicole Smith by Daniela Federici, 1992. The Ads and Fashions of 30 Years

EVER SINCE Paul Marciano made WWD: Guess has also featured male mod- embodying the word “freedom.” Anna WWD: How did you pick the photographers? the decision in 1986 to switch Guess’ els in its ad campaigns, such as Alex Nicole Smith looking like Anita Ekberg in P.M.: The first thing I look for is some- advertising photography to black- Lundqvist, Jason Lewis, Tom Skerritt, Fellini’s “La Dolce Vita,” Eva Herzigova thing in their work that catches my and-white from color, the Los Angeles Tyrese Gibson and Mark Vanderloo. styled as a young starlet arriving in New eye. Usually it is their choices in how company has left indelible imprints How did you pick the men to appear in York, Adriana Lima radiating a healthy they capture their subject, but I also in branding with its striking imag- the ads? What’s been the response to the sexuality, Line Gost shot by Bryan Adams like to find a photographer who shares es of sexy Guess Girls. WWD asked men in the ads? resembling a young Sophia Loren, and so the same level of passion for creating Marciano, who serves as Guess’ chief P.M.: The Guess Guy has to have a mascu- many more. Most recently, Amber Heard great images. For me, passion is a qual- executive officer and creative director, line presence and project a strong person- with her fresh American good looks. ity that cannot be overstated — it really to share highlights from 30 years of mar- ality as a counterpoint to the sensuality of drives great work. keting campaigns. — KHANH T.L. TRAN the women in the campaigns. With Tom WWD: What are your favorite anecdotes Skerritt, I think people thought he was an about how being a Guess Girl changed WWD: Is there a dream girl whom you WWD: How do you pick the women who interesting — maybe not the most obvious the model’s or photographer’s life? would like to photograph for an upcom- become Guess Girls? — choice for a Guess campaign. However, P.M.: At the beginning, we didn’t have the ing campaign? Paul Marciano: I like to meet the models, I felt he had that perfect combination that money to pay big names, which is how P.M.: I really like discovering new tal- but even more important to me is to see was right for the brand. Still to this day, looking for new faces began a tradition ent. I don’t think in terms of using a a photo. I find it is really important to people remember him in those campaigns. that still continues 30 years into the Guess big name and having that model adapt see what the chemistry is between the history. It’s been interesting to follow to Guess. It is more about seeing the model and photographer, which really WWD: What was among the most popu- their careers after a Guess shoot, for both Guess qualities in her. The current is the key to a successful shoot. A suc- lar male-female model pairings in the photographers and models, because the campaign with Claudia Schiffer has cessful shoot, after all, is the basis of a Guess ads? exposure around the world becomes so been so successful that I might bring memorable campaign. P.M.: The most recent example is Silviu huge. Claudia Schiffer is one of the best back other previous models. It all de- Tolu shipwrecked with Amber Heard examples of this — she went on to model pends on what I feel is right for the mo- WWD: What are some traits that a Guess in the spring 2012 campaign. The inter- for Chanel and many other things as well ment and of course, it always must be Girl must have? What are some no-no’s? play between the two is really nice and as have roles in films. Drew Barrymore’s right for Guess. P.M.: Since the day we started Guess, the pictures tell the story so succinctly. Guess shoot took place as she was making the brand has always stood for young, the transition to serious actress after hav- WWD: As Guess builds its business in sexy and adventurous, and it is these WWD: Besides Claudia Schiffer’s cam- ing been more known as a child actress men’s, shoes, bags, watches and kids, how same qualities that I look for in the paign in 1989, what are some of your who had become overwhelmed by the do the ad campaigns with the Guess Girls models that become Guess Girls. They most memorable campaigns? Hollywood lifestyle. Both Wayne Maser help those categories? also have to look healthy. When the P.M.:There are so many that really stick and Ellen von Unwerth each shot their P.M.: The campaigns and the models waif look first came into fashion, Anna out in my mind — the pictures that first ad campaigns ever for Guess, and in them create the fantasy around the Nicole Smith was in the Guess cam- are both dramatic and sensual are my the exposure led to more jobs for each of brand. It has always been about having paigns looking like a real woman. A girl favorites. One of the earliest with Estelle them. I wish I could say that Carla Bruni’s strong images. Without that, we could not who looks too thin and unhealthy does Lefebure stands out, when we began Guess campaign at age 16 led to her cur- have gone into all the categories we did. not look sexy to me, and she does not shooting with a Western look. Other favor- rent role as First Lady of France, but that It really has been the foundation from look right for Guess. ites include Carre Otis with her hair wild, might be a stretch. where the house of Guess was built. &RQJUDWXODWLRQVRQ \RXQJVH[\ DGYHQWXURXV \HDUV  26 WWD TUESDAY, MAY 1, 2012

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WWD MILESTONES GAME-CHANGERS Working on the Guess ad campaigns was a big boost for many photographers and models. By Marcy Medina

Klara Wester by Vincent Peters, 2009.

Tom Skerritt by Neil Kirk, 1987.

Claudia Schiffer by Ellen von Unwerth, 1990.

Chris Brown and Megan Ewing by Raphael Eva Herzigova Mazzucco, by Ellen von 2001. Unwerth, 1992.

MODELS ing, the Guess Jeans campaign was one of moment was a pivotal one in my career 2009. Working for them had always been Claudia Schiffer the greatest. When my agency called me to and the photos catapulted me into a new a huge goal of mine, so when I finally “Shooting the Guess 30th anniversary tell me I got the job, I couldn’t believe it. stardom. Audiences could relate to the did get the opportunity it was really a campaign was like going back in time. It The photographer Ellen von Unwerth has beauty Guess honored in women. There dream come true. Guess is a worldwide brought back so many great memories transformed me into Marilyn for them. was no ‘one type.’ We were celebrated recognized denim brand and their cam- and has been a lot of fun working togeth- And if I recall, we have done few cam- as blonde or brunette bombshells, and paigns have been iconic. My life has er again with Ellen and Paul. Guess will paigns for Guess — even one in favelas in curves were applauded as we bore wit- changed — everyone sees those cam- always have a soft spot in my heart and Brazil with Naomi and one in New York in ness to Anna Nicole’s stunning Guess paigns, they’re always sexy and it’s a I’m excited that, 23 years later, we can the The Actors Studio and on the streets campaign. There was a wonderful flavor very good spread to have in your book.” still work together so successfully.” of New York. Those ads always looked like to both the end result of the photo shoots movie stills — black-and-white and full of as well as to the fun we had while on set. I Klara Wester Naomi Campbell emotions and life. Paul Marciano had a remember that time in my career fondly.” “Working with Guess has opened many “I have been so blessed to have worked great concept and has done an amazing doors for me in my career and it’s al- with many of the greatest fashion photog- job for how long now? 30 years!! xx.” Frederique van der Wal ways a great pleasure working with raphers and designers who have produced “Guess was my first large-scale interna- Guess and their amazing team.” images which have been so important Amber Heard tional campaign with the photographer throughout my career, but that special “Guess is the epitome of an iconic Wayne Maser. It set my career in motion Estelle Lefebure combination with Ellen von Unwerth and American brand and I am honored that and, on a personal level, seeing the marsh- “For me, doing the Guess campaign for Paul Marciano for Guess was amazing. I Mr. Marciano felt that I could help rep- es and plains of America was a completely three seasons was so incredible. It was my had always loved the Guess images and I resent that. Growing up, I can remem- alien, eye-opening experience — I was first big U.S. campaign and I have especial- was so excited to do it because it was also ber the Guess ads always catching my just a school girl from Holland!” ly fond memories of the wonderful shoot in the first time I went to Brazil and Rio and eye. It is surreal that my image is now Texas. Thank you to Paul for choosing to to be the ‘Girl from Ipanema’ for a day was there. Being a part of the Guess cam- Paris Hilton express the style and image of real and sen- a dream.…I was in heaven! paign has been an incredible experi- “Ever since I was a little girl I have sual women and thanks to Wayne [Mazer] “I have special memories of that trip ence and I feel lucky to be a part of the looked up to models like Claudia for pushing me always to do better.” I will always treasure — the beaches of Guess family.” Schiffer. I dreamed of being a Guess Copacabana and Ipanema and climb- Girl and my dream came true. I abso- PHOTOGRAPHERS ing up those steps to the Christ the Carré Otis lutely loved working with Ellen von Ellen von Unwerth Redeemer statue…phew! Those images “I was on the second incarnation of my Unwerth. It made me extremely proud (1989-1996, 1998, 2000, 2003-2006, 2009-2012) were a milestone of my career. Thank you young modeling career and my first to drive down Sunset Boulevard and see “I love shooting Guess. Guess changed Guess, thank you Paul, thank you Ellen.” American Vogue cover had just come my Guess photos on a huge billboard.” my career primarily in that it gave me out when I was booked for my first as- the opportunity to shoot so many great Eva Herzigova signment with Guess. I shot with Ellen Candice Boucher and gorgeous women — and I became “Back in the days when I started model- von Unwerth for the brand in Italy. The “I did the Guess campaigns in 2008 and {Continued on page 28}

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WWD MILESTONES

Line Gost by Bryan Adams, 2008.

Amber Heard by Ellen von Unwerth, 2011.

Vanessa Hessler by Raphael Mazzucco, 2010.

Mark Vanderloo and Jason Lewis by Dean Isidro, 1996.

{Continued from page 26} was inspired by the film ‘Scarface.’ This Raphael Mazzucco “Internationally, it opened a lot of doors known for creating a certain kind of sexy shoot was a milestone in my career. It in- (2001-2003; 2005; 2009; 2010) for me to work for European magazines. image. From the beginning, I was given fluenced the way I shot back then and to “I had never shot in New Mexico be- Modeling agents became more anxious so much freedom — we have shot some this day. Paul and I both found inspira- fore, and Georgia O’Keeffe has always for me to work with their talent. There’s of the most memorable women in the tion in film and we used it to set the tone been one of my favorite artists. Shooting something about being from L.A. and being world. I love the photographs have gen- for this campaign. We continued to use Guess in New Mexico gave me an oppor- able to do a Guess campaign…it’s like the erated such a response from around the films to inspire use through our years of tunity to understand her work and con- pinnacle of L.A. fashion advertising. I also world. I meet people all the time who collaboration. Two of my favorites were: nect with those paintings in a totally new, thought it was great that there was such tell me that a picture I took of Carré Otis Anna Nicole/‘Raging Bull’ in New York, organic way. The sunsets in New Mexico an editorial spirit working with them that or Claudia Schiffer 20 years ago was on and ‘The Thomas Crown Affair’ in L.A. can only be described in pictures.” really let everyone on set, from stylists to their bedroom wall and helped them with Laetitia Casta. makeup artists to models, interpret a feel- figure out what they wanted to do when “Paul launched my career inter- Dewey Nicks ing and get inspired. It rarely happens.” they grew up. nationally and I’ll always be grate- (1994-1996) “It’s very gratifying to have touched ful to him for giving a young girl from “I remember waiting for a friend in a res- Dean Isidro people’s lives in that way.” Melbourne such an extraordinary op- taurant in New York soon after shooting (1996-2000) portunity. He changed my life.” Guess. It was kind of an industry hot spot, “I shot my first Guess campaign in 1996 Daniela Federici (1993-1997, 2003) and someone sat down at the next table with Laetitia Casta, Mark Vanderloo, Alex “Over the years, I have had the plea- Yu Tsai with the new Vanity Fair. In the first couple Lundqvist and Jason Lewis. We shot on the sure of shooting many of the Guess cam- (2006-2011) of pages there was the double-page spread Staten Island Ferry, and rode it back and paigns featuring Anna Nicole, Laetitia “Guess started and built my career in that we had just shot and he says to his col- forth. It was my first advertising shoot and Casta and many others. My first Guess the world of photography. My under- league, ‘Look at this sick new Guess cam- my first time riding the old Staten Island campaign was in Miami in 1992 with standing and love of sexiness is de- paign…this is amazing!’ I knew at that point Ferry. It immediately changed the trajec- Anna Nicole Smith. The look of the shoot fined by the Guess brand.” we were going to get a great reception. tory of my fashion photography career.”

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WWD MILESTONES Haylie Duff and Willa Ford Kat Graham performs. Pay It Forward Lauren Parsekian and Aaron Paul

GUESS’ BRAND-DEFINING ADS evoke a mood of vin- tage Hollywood glamour, but the company also main- tains an active role with the current arts scene, includ- ing partnerships with — and an increasing presence at — events like the Toronto International Film Festival and the Coachella Valley Music and Arts Festival. In fact, Guess’ multitasking mind-set has also gone to philanthropy. Recently, the company donated $2.5 million to the Gallatin School of Individualized Study at New York University to establish a visiting professorship for the study of fashion and fashion business. Guess also collaborated with the Fashion Institute of Design and Merchandising in Vanessa Hudgens L.A. in March 2010 to launch a Guess Design Challenge at the school’s an- nual graduation gala. The winning student was offered a design as- sistant position at Guess. Emerging young talent has been found in Ella Marciano, daughter of chief execu- tive officer and vice chair- Foster man Paul Marciano. The the 18-year-old has helped People design T-shirts and brace- gears lets for charity since she up for was 7. Last November, she a water designed a bracelet for Save pistol The Children to aid those affected by fight. Joy the East African droughts. Bryant Guess continues to look to the future even as it marks its 30th anniversary. As Paul Marciano con- cluded, “At the end of the day, you have to stay true to your heritage, to your roots and bring it to the digital world.” Here, a glimpse of Guess’ bash at last month’s Coachella festival. — SUBRINA HUDSON PHOTOS BY TIFFANY ROSE/WIREIMAGE TIFFANY PHOTOS BY

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