JACK LOUBOUTIN’S MULQUEEN DIES Seventh BIG STEP Avenue legend EXCLUSIVE: CHRISTIAN LOUBOUTIN was 69. TO LAUNCH BEAUTY LINE. PAGE 5 PAGE 12

EASTERN PROMISE P&G to Relocate Beauty HQ to Asia

By PETE BORN

IN A BOLD MOVE loaded with symbolism, Procter & Gamble Co. has decided to move the headquarters of its skin care, cosmetics and personal care business from FRIDAY, MAY 11, 2012 ■ $3.00 ■ WOMEN’S WEAR DAILY Cincinnati to where its sees the future — Asia. As one unintended consequence, the executive who WWD originally recommended the relocation strategy, 49-year- old Gina Drosos, has decided to retire as group president of skin care, cosmetics and personal care, rather than uproot her teenage children by making the move east. Drosos, who will step down Sept. 1, will be succeeded by Deb Henretta, who is now based in Singapore as group president of P&G Asia and the specialty channel. The relocation was fi rst reported by WWD.com on Thursday morning. The consumer products giant said Thursday that it will relocate the divisional leadership team of about 20 top executives to Singapore, which is a major P&G hub. The division, which represents about a quarter of P&G’s total beauty business — estimated by Beauty Inc maga- zine at more that $19 billion for 2010 — will be reestab- lished in Singapore during the next year or so, putting the business leadership in “the center of the greatest growth opportunity for these categories over the next fi ve years and beyond,” the company said. The personal care and beauty giant quickly pointed out that the busi- ness unit “will remain focused on the important North American business.” During an exclusive interview, Robert McDonald, chairman, president and chief executive offi cer, said, “These kinds of organization moves we make are not designed for the next quarter, they are designed for the next century, the next decade. “[The move] does recognize that we are a global busi- ness, that the skin care business is largest in Asia, that the competition there is fi erce and that many of the trends — a growing number of the trends — begin there.” He added that P&G believes in dispersing headquar- ters of business units around the world. The strategy is SEE PAGE 6 Coty Calls On Buffett

By MOLLY PRIOR

COTY INC. IS GIVING AVON Products Inc. one last chance to consider its takeover proposal — and it’s lined up none other than Warren Buffett to help it out. After spending the last month working to win over Avon shareholders, Coty is once again lobbying Avon’s board. This time around, Coty has sweetened the offer with a higher bid of $24.75 a share, or $10.65 billion — and a new investor, Buffett’s Berkshire Hathaway Inc. Buffett’s company also has an investment in Johnson & Red Revival Johnson, ironically the former employer of Avon’s new E. Scott Beattie has big plans for the Elizabeth Arden brand he acquired just over a chief executive offi cer, Sheri McCoy. Avon made Coty’s letter, which was dated May 9, decade ago: to double its $850 million in annual retail sales in the next fi ve years public on Thursday, and did not immediately reject and land the fl agship brand in the top 10 in every market in which it’s sold. A fl agship the offer, as it did on April 2 following Coty’s initial bid strategy, a slimmed-down product assortment and a more upscale positioning playing on of $23.25 a share, or $10 billion. Instead, Avon said its board “will consider the letter in due course.” the brand’s signature red door are among his tactics. For more, see page 8. Despite Coty’s lingering interest, Avon’s shares closed down 3.3 percent Thursday at $20.89 on the New York Stock Exchange. Bart Becht, chairman of Coty Inc., made clear that his company’s offer has an expiration date. Avon has until Monday to respond, or Coty will withdraw the new offer, which is subject to an expedited due diligence process of several weeks. Becht wrote, “When we contacted you again last week, you advised us that Avon’s board of directors was not prepared to engage in any discussions regarding any revised proposal until Avon had completed a stra- tegic and operational internal review with its new ceo. PHOTO BY JOHN AQUINO SEE PAGE 7 2 WWD FRIDAY, MAY 11, 2012 WWD.COM Cucinelli Profits Rise in First Quarter THE BRIEFING BOX in the first quarter, both in terms “excellent results” in Japan and By LUISA ZARGANI of sales and margins, confirm the Korea, said the company. IN TODAY’S WWD brand’s momentum at an inter- All distribution channels saw MILAN — Newly public Brunello national level,” said Cucinelli. “It growth in the period, especially Cucinelli SpA reported a 36 per- seems there is a strong positive at Brunello Cucinelli stores. cent rise in net profits to 7.2 million attitude towards our product, the Sales at directly operated euros, or $9.4 million, in the first way we present it and, as a conse- stores rose 53 percent (of which Pieces from Mischa quarter ended March 31, compared quence, the lifestyle that evokes 18 percent to be attributed to the Barton’s collection. with 5.3 million euros, or $7 mil- a Made in Italy [product] of great boutiques existing at the end of lion, in the same period last year. quality, artisanal craftsmanship March last year) to 15.1 million Sales gained 17.1 percent to and, we hope, modernity.” Sales euros, or $19.8 million, and ac- 77.6 million euros, or $101.6 mil- in Italy totaled 24 million euros, counting for 19.5 percent of total lion, compared with 66.3 million or $31.4 million, in the quarter, revenues. Franchised stores saw euros, or $86.8 million, last year. down 1.2 percent compared with a 74.1 percent spike to sales of Earnings before interest, the same period last year, and ac- 10.6 million euros, or $13.8 mil- taxes, depreciation and amortiza- counting for 30.9 percent of total lion, accounting for 13.6 percent tion climbed 27.6 percent to 12.9 revenues. Sales in other European of total sales. As of March 31, million euros, or $16.9 million. markets grew 18 percent to 24.2 Brunello Cucinelli stores totaled Dollar amounts have been con- million euros, or $31.7 million. 38, up two units compared with verted at average exchange rates Revenues in the U.S. climbed 30.6 the first quarter last year. for the periods to which they refer. percent to 18 million euros, or Wholesale sales totaled 52 mil- The brand’s namesake found- $23.6 million, accounting for 23.2 lion euros, or $68.1 million, up 3.2 er said that “expectations for the percent of sales. In Greater China, percent compared with last year, year are good, our goal is a solid, sales rose 23.5 percent to 2.9 mil- and accounting for 66.9 percent of Procter & Gamble Co. has decided to move the sustainable and graceful growth.” lion euros, or $3.8 million, or 3.8 total revenues, compared with a headquarters of its skin care, cosmetics and personal care PAGE 1 The company made its debut on percent of total revenues. 75.9 percent share last year. business from Cincinnati to Singapore. the Milan Stock Exchange on April The rest of the world grew On Thursday, shares closed 27, floating 30 percent of its shares. 59.8 percent to 8.5 million euros, down 1.41 percent to 10.50 euros, Coty Inc. increased its bid for Avon Products Inc. to $10.65 PAGE 1 “The solid results achieved or $11.1 million, also lifted by or $13.61 at current exchange. billion in a letter addressed to the direct seller’s board.

The schedule of the 82nd edition of Pitti Uomo, running Kohl’s Eyes Improvement as Net Tumbles June 19 to 22, was revealed on Thursday. PAGE 4

MILWAUKEE — Kohl’s Corp. before making a judgment. Price cuts needed to drive Strong sales lifted Nordstrom’s net earnings 2.9 percent chairman and chief executive offi- Specialty stores did a much sales were to blame for lower in the quarter, but spending and hiring on e-commerce PAGE 4 cer Kevin Mansell told sharehold- better job with the color denim gross margins, the firm noted. and technologies cut into the bottom line. ers at the retailer’s annual meeting trend in the first quarter, Mansell The company also said here that the company “fell short” said on the call. Thursday that it is testing a new Christian Louboutin has established a joint venture with PAGE 5 of objectives in 2011, but empha- “There’s no way we had any- store prototype that introduces fur- Batallure Beauty to enter the beauty category. sized high rankings from shopper where near enough depth on it,” niture and lamps — items Kohl’s surveys and gains in Internet sales. he said. has been selling on its Web site. Hugo Boss will today announce that Gwyneth Paltrow will “We were outperformed by some Test stores are located in Atlanta, star in the T V, print and online campaigns for its latest PAGE 5 competition,” Mansell said of the Houston and Salt Lake City. women’s fragrance, Boss Nuit Pour Femme. company’s financial results. “Not to The furniture departments say there weren’t successes.” took over space from the chil- The selling season is in full swing, with a host of beauty PAGE 6 Kohl’s remodeled stores, im- dren’s clothing department, chief companies preening to attract potential buyers. 0.2% proved its online experience for financial officer Wes McDonald shoppers, reached its goal of $1 said during the call. The goal, Elizabeth Arden Inc. is positioning its flagship brand for COMP-STORE SALES GAIN PAGE 8 billion in online sales, opened he said, is to increase sales per the next decade and beyond. FOR THE QUARTER. a new fulfillment center and square foot by $10 to $230. successfully launched Jennifer Shareholders at the meeting L’Oréal Paris revealed Julianna Margulies as ambassador Lopez and Marc Anthony fashion The ceo also said the March soundly rejected — with only 3 to its Women of Worth program on Wednesday at New PAGE 9 lines, Mansell said. heat wave drove such strong sales percent in favor — a proposal from York’s New Museum. In a conference call with ana- of seasonal goods that there was the Humane Society of the United lysts earlier in the day, Mansell an inventory shortage in April. States encouraging Kohl’s to devel- Sources said People magazine will pay Jessica Simpson PAGE 9 said the company’s own execu- Kohl’s on Thursday reported a op a policy prohibiting the sale of about $800,000 to run exclusive baby photos. tion was to blame for lagging 23.4 percent decrease in net income animal fur in its stores. A sharehold- sales in the first quarter. for the first quarter ended April 28, er proposal mandating that Kohl’s The Outstanding Mother Awards on Thursday honored He declined to speculate on to $154 million, or 63 cents a dilut- board make public its executive Jessica Alba, Gayle King, Nina Garcia, Lisa Price and Karen PAGE 11 whether J.C. Penney Co. Inc.’s new ed share, from $201 million, or 69 succession plan and another that Hoguet.

“fair and square” pricing strategy cents, a year earlier. Sales were up would have required executives took sales from Kohl’s, saying he 1.9 percent, to $4.24 billion, while to retain their stock for a period of Odin owners Eddy Chai and Paul Birardi revealed they will would need to see Penney’s first- comparable-store sales increased time after leaving the company also open a Todd Snyder pop-up shop at their Lafayette Street PAGE 11 quarter results, due out next week, 0.2 percent for the quarter. were rejected. — DORIS HAJEWSKI store in Manhattan next week.

Jack Mulqueen, one of the last of the true Seventh Avenue Tod’s Revenue Gains; Operating Income Up 2.4% characters, died Thursday at 69. PAGE 12 MILAN — Lifted by strong sales velopment “continues with great million euros, or $256.6 million. ON WWD.COM in Asia and the U.S. and growth success, with excellent, double- Leather goods, comprising hand- of its Tod’s brand, Tod’s SpA digit growth rates.” As part of the bags and accessories, driven by said revenues in the first three group’s strategy, “taking into ac- the “excellent” results of the Tod’s FASHION: Mischa Barton launched her contemporary collection, months of the year gained 8 per- count the situation of the domestic brand, gained 15.3 percent to 39.9 Mischa, at an event in Dubai Mall’s Rivaage Boutique cent to 263.2 million euros, or market,” distribution in Italy has million euros, or $52.2 million. Wednesday night. For more, see WWD.com/fashion-news. $344.8 million, compared with become “even more selective, to Reflecting the performance of Fay, 243.7 million euros, or $341.2 mil- preserve even more the position- apparel sales dropped 3 percent to lion, in the same period last year. ing and exclusivity of brands.” 27.2 million euros, or $35.6 million. TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. The Italian luxury goods firm Della Valle concluded that “based In the first quarter, sales in WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. did not report net profits for the on positive results in stores and Italy dropped 4 percent to 134.9 COPYRIGHT ©2012 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. quarter ended March 31, but said the performance of winter orders,” million euros, or $176.7 million, VOLUME 203, NO. 98. FRIDAY, MAY 11, 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, earnings before interest, taxes, he was “convinced [the] group while the rest of Europe rose 5 March, April, August, September and November) by Fairchild Fashion Media, which is a division of Advance Magazine depreciation and amortization will post also in 2012 a significant percent to 52.4 million euros, or 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, rose 2.4 percent to 66.7 million growth of revenues and profits.” $68.6 million. Sales in the U.S. Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at euros, or $87.3 million, compared Sales of the Tod’s brand rose climbed 21.2 percent to 14.8 mil- 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 with 65.1 million euros, or $91.1 13.4 percent to 137.5 million euros, lion euros, or $19.4 million. The to P. O . Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S million, last year. or $180.1 million, while those of rest of the world grew 48.7 percent WEAR DAILY, P. O . Box 15008, North Hollywood, CA 91615 5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 15008, North Hollywood, CA 91615-5008, Operating profit climbed 2.4 Hogan dropped 2.4 percent to 89.6 to 61.1 million euros, or $80 mil- call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent percent to 57.3 million euros, or million euros, or $117.3 million — lion, boosted by “excellent results” label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless $75 million. The group controls a decrease the company attributed in China, Hong Kong and Macau, 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 the Tod’s, Hogan, Fay and Roger to more selective distribution. For and a significant growth in Japan. all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. Address all Vivier labels. the same reasons, Tod’s said, Fay Tod’s also revealed the in- 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 Dollar amounts have been saw a 4 percent drop in sales to 23 corporation of 100 percent of of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at converted at average exchange million euros, or $30.1 million. The Formapura Srl, the creative agen- 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 rates for the periods to which Roger Vivier brand almost dou- cy that provides integrated mar- we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at they refer. bled sales to 12.9 million euros, keting, branding and advertising. 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 Chairman and chief executive or $16.9 million, from 6.6 million On Thursday, Tod’s shares ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER officer Diego Della Valle high- euros, or $9.2 million, last year. closed down 1.94 percent to 80.95 UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR lighted the expansion of business By product category, sales of euros, or $105 at current exchange. DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A in Asia and the U.S., where de- footwear rose 8.3 percent to 195.9 — L.Z. SELF-ADDRESSED STAMPED ENVELOPE. Vidal, Your hands, your eye and your vision made us all more beautiful.

Women and men everywhere thank you.

Vidal Sassoon Photo: BABAK www.babak.ca @ABS2011 4 WWD FRIDAY, MAY 11, 2012 Italian Brands Urged to Look Globally Dillard’s Earnings Spike 23.9% New entries at Pitti Uomo this time FIRST-QUARTER SALES The firm singled out By ALESSANDRA TURRA include Seven For All Mankind; Ben grew more rapidly than women’s accessories and Sherman’s new men’s wear project; G-Star expenses at Dillard’s Inc., lingerie as the top mer- MILAN — To battle the slowdown in Raw, which will unveil the “Raw Denim lifting the department chandise category in the sales in Europe and boost their busi- Dome” exhibition; Dockers’ new capsule store operator to a double- quarter, with footwear, nesses, fashion companies need to collection; Japanese designer Yasuhiro digit increase in profits. men’s apparel and acces- focus on emerging markets. Mihara making his debut with a foot- During the three sories and cosmetics also That was the advice of Pitti wear project; the new Dekker collection; months ended April 28, generating strong results. Immagine president Gaetano Marzotto, Hancock, the line designed by Timothy the Little Rock, Ark.- Only juniors’ and chil- who made the comments Thursday dur- Everest, and Cesare Paciotti’s new pre- based firm realized net dren’s apparel and home ing a press conference presenting the mium line. In June, a number of brands income of $95 million, and furniture fell below schedule of the 82nd edition of Pitti will make a comeback at Pitti, including or $1.89 a diluted share, the general sales trend. Uomo, running June 19 to 22. “In the eco-fashion firm Edun and Pirelli P Zero. 23.9 percent above the The bottom-line ad- new markets, including China, India, The Pitti Discovery Foundation $76.7 million, or $1.31, vance was the result of Indonesia and all the oil-rich countries, teamed with men’s fashion label Stone booked in the 2011 pe- strict expense and inven- there are about one billion people who Island to celebrate the 30th anniversary riod. The year-ago figure tory management by the have incomes equal to Europeans,” he of the brand with a retrospective held was elevated $1.9 mil- William Dillard 2nd company. While the cost said. “While in Europe people are in at Florence’s Stazione Leopolda. “We lion, or 4 cents, by an of sales rose 6.1 percent general more sober, in those markets are proud to celebrate our 30 years, asset disposal gain, off- to $954.1 million, selling, customers tend to be more opulent which marked the Italian costume, in set by asset impairment and store clos- general and administrative expenses and look for the affordable elegance of Florence, a fundamental point of refer- ing charges. were up just 1 percent, to $393.2 million, Made in Italy products.” ence for Western culture,” said Stone Sales were up 5.5 percent, to $1.55 and the two expense categories combined According to research by Italian Island president and creative director billion from $1.47 billion, and rose 5 grew 4.6 percent to $1.35 billion. Same- fashion and textile consortium SMI, Carlo Rivetti, who will throw an opening percent on a same-store basis. Including store inventories were 1 percent higher while the Italian fashion and textile party on June 19. The event will pres- service charges and other income, total than at the end of the first quarter of 2011. sector registered a drop of 4.6 percent ent a book tracing the brand’s history revenues rose 5.6 percent to $1.58 bil- The firm operated 287 department in revenues nationally, it posted 5.5 through more than 300 images of the lion. Gross margin for retail operations stores and 17 clearance locations at the percent growth company’s pieces. pulled back to 39 percent of sales from end of the quarter. A department store in sales abroad in The same night 39.1 percent a year ago. at the Hutchinson Mall in Hutchinson, the first quarter another Italian The consensus estimate among the Kan., is scheduled to close during the of 2012. Exports firm, WP Lavori two analysts covering Dillard’s was for current second quarter. increased 9.4 per- $35.6B in Corso, will also earnings per share of $1.67 on sales of Shares of the retailer rose 71 cents, or cent in 2011 over- fete its 30th an- $1.53 billion. 1.1 percent, to $66.19 prior to the disclo- all, reaching a AMOUNT OF ITALIAN FASHION niversary with an William Dillard 2nd, chief executive sure of financial results Thursday after- combined 27 bil- AND TEXTILE EXPORTS IN 2011. event called “75 officer, noted it was the “seventh con- noon and added 5.5 percent in the first two lion euros, or $35.6 years of Baracuta.” secutive quarter of increased same-store hours of post-market trading. The stock hit billion at average During a British- sales as well as record-setting earnings a new 52-week high of $67.22 on Monday. exchange, with countries outside the inspired party, the company will show- and earnings per share performance.” — ARNOLD J. KARR European Union posting a 14.2 per- case its first collection for Baracuta, cent increase. Italian exports to China the historic outerwear brand, which it jumped 28.4 percent and Italy’s ship- recently acquired. ments to the U.S. and Japan grew 12.2 As revealed earlier this month, and 15.1 percent, respectively. the special guest at Pitti Uomo this Nordstrom Touts Online Potential Marzotto said fashion companies time will be fashion brand Carven, Soffe, who left in January. “I am confident should work to quickly restock stores which, under the creative direction By DAVID MOIN of that.” He’s been reviewing candidates with new, fresh product to stimulate of Guillaume Henry, will stage its first from inside and outside the company. sales and make them attractive for in- runway show on June 21. The event will STRONG SALES across all channels lift- One area of investment is with mobile ternational tourists. be preceded by the show of emerging ed Nordstrom Inc.’s net earnings 2.9 per- point-of-sale devices, which are being For the next edition of men’s show designer Andrea Pompilio, a sopho- cent in the first quarter, though aggres- tested and have 75 percent of the func- Pitti Uomo, where about 1,020 brands will more at Pitti, as well as by Valentino’s sive spending and hiring on e-commerce tionality of the regular POS. By the end showcase their spring 2013 collections, duo Maria Grazia Chiuri and Pierpaolo and technologies cut into the bottom line. of the year, some will have 100 percent, organizers chose a tasty theme, called Piccioli, last year’s special guests. The Profits in the quarter ended April 28 and a big rollout of the new technol- “WonderFood.” “Food is a hot category latter’s show is scheduled for June 19. rose to $149 million, or 70 cents a diluted ogy is seen in the third quarter of next right now and it has a strong link with At Pitti W, which will present six share, compared with $145 million, or 65 year. “We are really focused on serving fashion,” said Pitti Immagine vice presi- Nigerian designers in collaboration cents a share. Same-store sales increased customers on their terms,” said Jamie dent Agostino Poletto, who asked 40 fash- with Lagos Fashion Week, British brand 8.5 percent; total sales rose 13.7 percent Nordstrom, president of direct, on the ion designers to dress a lineup of straw Peter Pilotto will be the special guest. to $2.53 billion. conference call. “We realize…how cus- men, which will keep guard over the cre- Designers Peter Pilotto and Christopher Sales online were the strongest, with tomers define service is changing, a lot of ative vegetable gardens set in the court- De Vos will present their new collection Nordstrom reporting that its direct chan- that is going online, it’s mobile, it’s speed yard facing the fair’s central pavilion. during a special event on June 20. nel escalated 44.2 percent. It’s where and it’s convenience. We are making in- To enhance the fair experience for The list of the events held in Nordstrom is thinking big, including plan- vestments around those areas.” buyers and press and make it more dy- Florence during the trade show also in- ning a 50 to 60 percent sales increase for Nordstrom’s gross profit, as a percent of namic, Pitti also organized “Alternative cludes an exhibition on Marilyn Monroe its HauteLook site this year. The site is on sales, decreased 31 basis points compared Set,” a project involving seven design- organized by Salvatore Ferragamo plan and recently surpassed the eight-mil- with last year’s first quarter, mostly due to ers, including Alexis Mabille, Emiliano at its museum, and Delfina Delettrez lion-member mark. The direct business is enhancements in the fashion rewards pro- Rinaldi and Pierre-Louis Mascia, who Fendi’s first personal exhibition, “significantly outpacing the overall com- gram and launching free shipping and free will create temporary installations at called “Delphinarium. A Monographic pany performance and reflective of multi- returns for online purchases. Retail sell- unusual locations of the show. Exhibition on Delfina Delettrez.” ple initiatives under way in e-commerce,” ing, general and administrative expenses the company said. increased $110 million, or 18 percent, due Nordstrom is also bullish on the $2 to initiatives to improve the customer ex- billion Rack outlet division, which is perience and grow e-commerce. The in- American Apparel Reports $7.9M Loss opening about 15 stores annually. crease also reflected higher volume from The $10.9 billion Seattle-based chain’s existing and new stores. AMERICAN APPAREL INC. shrank loss- For 2012, the company confirmed best-performing areas are women’s and “We were also surprised by the steep es in its first quarter as sales climbed guidance of adjusted EBITDA of $32 men’s shoes, accessories and cosmetics. decline in EBIT margin for the quarter in its stores, online and its wholesale million to $40 million, based on project- Nordstrom officials said the first-quar- in light of much better-than-expected business. For the three months ended ed sales of $570 million to $590 million ter performance met its expectations, yet sales. We believe that the growth of e- March 31, the financially battered spe- and gross margins of 54 percent to 55 some analysts expressed concerns about commerce is pressuring margins as well cialty retailer reported a net loss of percent. Capital expenditures are esti- the store’s women’s apparel business, as investments across the company in $7.9 million, or 7 cents a diluted share, mated to be $15.9 million this year, with which has been soft for several seasons, technology,” Deborah Weinswig, analyst versus a loss of $20.7 million, or 28 a modest number of new stores planned. and that generous spending on technology at Citi Investment Research, wrote in a cents, in the year-ago quarter. The company is seeking to improve and e-commerce, while fueling dramatic research note. Net sales were $132.7 million, up 14.3 its EBITDA performance in order to online increases, is cutting into profit mar- Going forward, Nordstrom expects a percent from $116.1 million a year ago. refinance its burdensome debt load, gins. Last year, Nordstrom launched free low-single-digit same-store sales gain in the Comparable-store sales were up 14 per- which includes $116 million owed to shipping, which is another big expense. second quarter, with a shift of the anniver- cent in the quarter and online sales were Lion Capital as of March and $80 mil- Earnings per share came in 5 cents below sary sale to one week later in July, moving up 25 percent. Wholesale sales were up 17 lion in financing it won from Crystal the 75 cents Wall Street analysts projected it partly into the third quarter. However, percent. There was a 5 percent decrease in Financial in March. and Nordstrom’s stock fell 5.2 percent to there should be a high-single-digit increase the number of total stores from a year ago. “Though the first quarter is histori- $50.75 in after-hours trading Thursday. in same-store sales in the third quarter. Gross margin declined to 52.8 per- cally our slowest quarter of the year, Pete Nordstrom, president of merchan- Nordstrom reiterated that it expects cent of sales from 54.8 percent, driven significant sales growth and the related dising, said in a conference call that some gross profit, as a percent of sales, to de- primarily by lower production volume leveraging of fixed costs helped us mean- “pockets” in women’s are working better crease 5 to 35 basis points for the fiscal and lower absorption of fixed overhead ingfully reduce our EBITDA loss,” said than others, citing the modern and casual year, and retail SG&A expenses to increase costs, offset by lower yarn costs. chief financial officer John Luttrell. “We sides and “good growth in active and linge- $275 million to $340 million, including a The company posted a loss of $2.1 expect key initiatives in the areas of mer- rie,” which in many cases are getting more $10 million boost from the initial forecast million before interest, taxes, depre- chandise planning, supply chain, IT sys- space on the selling floors. He also said by due to greater e-commerce initiatives. ciation and amortization on an adjusted tems and inventory control to drive fur- the next conference call that the company Same-store sales for the year are forecast basis, narrowing the loss from $4.9 mil- ther sales and expense improvements for will have hired a new general merchandise at 4 to 6 percent ahead. Earnings per di- lion a year ago. the balance of the year.” — DAVID LIPKE manager in women’s to succeed Loretta luted share are seen at $3.30 to $3.45. WWD friday, may 11, 2012 5 WWD.COM Louboutin Entering Beauty Barton Unveils Line in Dubai wasn’t even available in this mar- For his part, Louboutin yet entered the beauty arena,” By RITU UPADHYAY ket, but women really made a great exclusive said his “detail-oriented” ap- she said, adding that “his un- effort to get the bags,” she said. proach to shoes should trans- derstanding of women and fem- DUBAI — Mischa Barton is turn- Next up for actress-turned- late well to beauty products ininity, and their desire to be ing her focus to fashion design. entrepreneur is a 1,000-square- By MILeS SOCHA and their packaging. sexy and beautiful” will trans- The sometime actress and regu- foot store opening in London’s What’s more, he spies di- late well into beauty products. lar tabloid fodder launched her Spitalfields area next month. The PARIS — Christian Louboutin rect links to his sexy, high- “He pushes boundaries, contemporary collection, Mischa, store, which she said has a “vin- is making the leap from red heeled designs. “Beauty and that’s exciting to us,” at an event in Dubai Mall’s Rivaage tage feel,” will carry her clothing soles to red lips, WWD has products also have to do with said Burns, who partnered Boutique Wednesday night. and accessories line as well as a learned. empowering women,” he said. with Sam Ghusson in 2006 to The signature apparel line, a range of Mischa Barton-branded embarking on his first “That’s very much the job of launch Batallure, which cre- collaboration with her mother, cosmetics. “I’m not looking at major brand extension, the the shoes I’m designing.” ates beauty brands and store Nuala, is reminiscent of the retro being mass market. I’d like to grow Paris-based designer of shoes He added that the beauty experiences for such clients as Bohemian style the actress made fa- the business organically,” she said. and handbags has established venture “has to mirror the Abercrombie & Fitch, express, mous while starring on the hit show This venture is very much a a joint venture with New York- quality of the shoes, of the bags, Macy’s, Marchesa and Sephora. “The O.C.” from 2003 to 2006. family business for Barton. Her based Batallure Beauty LLC of all the DNA of the brand.” Burns has also served as presi- The collection features femi- to enter the beauty category. Louboutin said he has re- dent and chief executive offi- nine dresses, vintage-style skirts The newly formed company, sisted licensing any category cer of Calvin Klein Cosmetics and cardigans, jumpsuits, leg- Mischa Barton Christian Louboutin Beauté, in order to maintain tight and Victoria’s Secret Beauty. gings and signature pieces like holding a dress plans to launch multiple, un- control of his brand image, Ghusson is president, ceo and the Mischa jacket. Barton said from her line. specified classifications, with and he opted to partner with co-founder of Batallure. she’s still very much focused the first products slated to ar- Burns declined to give sales on acting, but the fashion line rive on the market in late 2013. projections for the Louboutin “gives me an opportunity to take The positioning will be luxury; venture, but offered, “I believe out my creative energies.” the distribution global. it has the potential to be a sig- The pieces, manufactured Ye t the partners stressed nificant business, and one that in China, retail for between they will take all the time nec- we will build over time.” $45 and $450. The collection essary to introduce products Louboutin, celebrating his had a soft launch two months that meet the designer’s exact- company’s 20th anniversary ago online, selling out within ing standards, and ones that this year, takes on the beauty days without any marketing. promise to break the mold. project as the brand continues “It’s for women ranging from “Ver y constructed, quite to enjoy strong momentum. 15 to 35. There are different

different and unexpected,” steve eichner Alexis Mourot, Christian pieces that will appeal to dif- Louboutin teased in an exclu- Christian Louboutin SA’s chief operating ferent styles, but sive interview, skirting ques- Louboutin officer and general manager, the main thing is

Photo by For more tions about specific categories said the privately held firm con- I wanted it to feel photos, see he is plotting. tinues to post “strong double- functional and easy Ye t it’s clear he’s thinking Batallure because its chair- digit growth.” He declined to to wear,” Barton WWD.com/ big — and unconventionally. man and co-founder, beauty specify the percentage, but it is told WWD. “My sis- fashion-news. Asked to name a beauty icon veteran Robin Burns, under- believed to be above 25 percent. ter, who’s 36 and a past or present that he finds stood his entrepreneurial In 2008, Louboutin started barrister in London, inspiring, Louboutin cited one spirit and design mission. rolling out a network of com- wears a lot of it.” mother is managing the business from 3,300 years ago: Nefertiti, It’s no wonder: She’s been pany-owned stores, which This is Barton’s second trip aspects of the brand and said it is whose painted limestone bust, in his shoes for years. now account for more than to Dubai. She came for the lav- fully a family-run business and, at now housed at the Neues Burns recalled that she ac- half of revenues. The com- ish launch party of the Atlantis the moment, they have no outside Museum in Berlin, captivates cepted an industry award at pany has 54 boutiques at pres- Hotel on the Palm Jumeirah in investors. They plan to grow the the designer. Lincoln Center in 1993 when ent, having opened 17 loca- 2008. She described her visit as business in whatever direction the “It’s the most beautiful thing. she was then president of tions in fiscal 2011. “one of the best experiences I’ve demand dictates. “Before we’ve I stayed like an hour just look- estée Lauder USA wearing Mourot noted plans call for ever had.” even launched the London flagship, ing at the bust,” he enthused. a black dress with Louboutin 14 additional units this year, She returned to Dubai to we’ve gotten requests for franchis- “It’s a perfect beauty and the shoes whose vivid soles caught including locations in Rome; launch her collection because es in China,” said Nuala Barton. makeup is quite perfect.” the eye of many people in the Istanbul; São Paulo, Brazil; there was a strong demand for She added they hope to bring Louboutin related that sev- audience as she mounted the Chicago; Osaka, Japan, and her accessories line, which she the line to the U.S. by the end of eral parties have approached stairs to the podium. Shenyang, China. has been designing since 2009. “It the year. him in recent years about po- “I wore his boots, his flats, North America accounts for tential beauty ventures, given his heels, his handbags — about 42 percent of the busi- that his signature scarlet soles long before I met him,” she ness; europe, 36 percent; Asia could translate easily into lip- enthused, numbering her and Japan, 15 percent, and sticks, nail polish and the like. Louboutin collection at “more the Middle east, 7 percent, Scott Kay to Open Gallery He noted the idea was also than a dozen.” Mourot said. “in the air” with a so-called Burns told WWD she was at- Last fall, Louboutin opened said, adding that SK66 is simply Louboutin Manicure entering tracted to Louboutin because his first dedicated men’s bou- By RACHeL STRUGATz a combination of the designer’s the modern parlance thanks his designs are “extremely tique, in Paris, and the catego- initials and his birth month and to a few enterprising London aspirational to women” and ry has proven a strong growth FINe FASHION jeweler Scott Kay day, June 6. salons that paint red on the “most beauty products that are sector. The company plans on Saturday will open SK66, a pri- The space houses nearly 5,000 undersides of nails. Acclaimed successful have an element of to open a men’s boutique on vate gallery showcasing his work. pieces of jewelry — the first floor British singer Adele sported aspiration to the consumer.” Washington Street in New Located next to the 28-year- is dedicated to women’s and the such talons when she scooped “He was really the only fash- York this summer, and a third old company’s headquarters in second floor to men’s — and is up six Grammy awards for her ion designer with high success location in London before the Teaneck, N.J., the brand bills the the result of four years of collect- hit album “21” earlier this year. and high visibility that has not end of the year, Mourot noted. two-floor, 5,000-square-foot space as ing fine jewelry, art and sculp- the closest thing it has to a flagship ture created by Scott Kay, who — but this is a by-appointment-only until now has never released any venue not open to the public. of these items to the public. Kay Known for a large selection of and his wife, Regina Kay, presi- Paltrow Tapped for Scent Campaign fine fashion and bridal jewelry dent of SK66, traveled to places that is carried in more than 3,000 such as Istanbul, Italy, Israel and LONDON — Gwyneth who is in London for the locations nationwide, the new gal- France to find the antiquities that Gwyneth Paltrow has a new fragrance press launch today. “She is lery features many one-of-a-kind inhabit the space. Paltrow deal under the belt of her the perfect complement to and new pieces that are curated Tiffany Kay cited the little black dress: Boss Nuit Boss Fragrances.” in a way meant to evoke the feel- Protecting the Cross series, Pour Femme. Prelaunches are slated for ing of a “speakeasy” and a unique part of the Faith collection that Hugo Boss will today an- August, with a global rollout shopping experience for the con- Scott Kay designed during the nounce that the London-based in September. sumer, according to Tiffany Kay, recession, as a standout. There American actress will star in “I was honored and very senior director of merchandising is an 18-karat gold piece with the T V, print and online cam- happy to be chosen as the face and corporate relations. The color diamonds, a sterling silver ren- paigns for its latest women’s of Boss Nuit Pour Femme,” said tones are rich and warm, com- dition on a leather bracelet, fragrance, inspired by the el- Paltrow, who will be present- prised of an amber and deep red and a sculpture that took him egance and sensuality of the ing the fragrance later today at color scheme with dark walnut more than a year to finalize from little black dress. Sanderson Hotel in London. floors and white LeD lights. conception to completion that “We are [pleased] to wel- “To me, the Boss woman “We wanted it to be a special Tiffany Kay describes as an angel come Gwyneth Paltrow to the is driven, ambitious and goes place where people that really with “detailed feathered wings Hugo Boss family as the face after what she wants, but she appreciate the art and conception wrap around a diamond-cut black of our new Boss Black female balances being strong and of a piece of jewelry can go and sapphire inlaid cross represent- signature scent,” said Gerd very feminine at the same shop in a private matter. Scott ing protection.” Von Podewils, global market- time — characteristics that I made this space so he could de- The company will celebrate ing director for Hugo Boss strive toward in my own life.” sign anything he wants or feature SK66 with an event at the space Fragrances, P&G Prestige, — SAMANTHA CONTI anything he wants,” Tiffany Kay on Saturday.

w11a005a.indd 2 5/10/12 8:02 PM 05102012200323 6 WWD FRIDAY, MAY 11, 2012 beauty P&G’s Skin and Personal Care Unit Let’s Make a Beauty Deal: Moves East to Singapore for Growth M&A Gaining Momentum {Continued from page one} successful executives she intended, in part, to offer Deb mentored both inside and Partners, which has had great success aspiring young people Henretta outside of P&G and said By MOLLY PRIOR with Smashbox and PureOlogy, selling an opportunity to start she will miss the people, the brands to the Estée Lauder Cos. Inc. careers in the company along with watching the THE SELLING SEASON is in full and L’Oréal, respectively. TSG is said to on their own terms. This affect P&G’s brands have swing, with a host of beauty companies be interested in selling the bulk, if not theoretically leads to on consumer habits. “Our preening to attract potential buyers. all, of its remaining beauty portfolio, greater diversity within brands become the fabric Of course, not all companies are which includes Perricone the ranks. “Greater di- of people’s lives.” reveling in the attention from suit- MD, Alterna, Sexy Hair, versity leads to greater Drosos praised her ors. Avon Products Inc. continues Kenra, Pevonia and E.l.f. innovation,” McDonald successor for having to receive unwanted — at least so Cosmetics. TSG’s multi- asserted. “The closer we “a passion for building far — advances from Coty Inc. brand portfolio could pique are to the consumer that brands.” Indeed, dur- Possibly on deck to sell is the interest of another private eq- we are serving, the better ing the last seven years, Urban Decay, according to fi- uity firm looking to enter the beau- the innovation.” Henretta has generated a nancial sources, who said ty space, said one banker. TSG He noted that P&G just growth in sales of 12 per- the indie darling is work- also has considered bundling finished its innovation re- cent a year in the Asian ing with Deutsche Bank the businesses for an initial view and he decreed, “We Grooming and Beauty and currently considering public offering, said sources, have strength in our inno- business, with three P&G a bid from L’Oréal, as well a move that could prove chal- vation program, particu- beauty brands— Pantene, as competing offers from lenging given the many cat- larly in our beauty and H&S, and SKII— each Revlon and LVMH Moët egories involved. grooming categories.” Gina chalking up annual sales Hennessy Louis Vuitton. Other companies believed Talking about P&G’s de- Drosos of over $1 billion in Asia. Urban Decay, as well as its to be prepping for a possible sire for diversity in its ex- McDonald added that owner, the private equity sale include Ye s To Inc., a ecutive ranks, McDonald Henretta “successfully fund Castanea Partners, whimsical vegetable- and proudly pointed out that led our baby care busi- declined to comment, as fruit-inspired skin care range the company had just ness before she went to did each of the companies that is said to have hired named a Japanese execu- Asia, and she has led our mentioned in this article. Deutsche Bank, and clinical tive, Hatsunori Kiriyama, reorganization of Asia Urban Decay is one of skin care brand StriVectin, as president of P&G Asia. and done an extremely a number of brands said which is owned by Catterton “He is the first Asian to good job. Since she has to be whirling around the Partners and has reportedly lead P&G Asia,” McDonald already run a global marketplace, vying for the tapped Goldman Sachs. said. “This is big news for business, like baby care, attention of both strate- The deal chatter has our company.” she’ll step in running.” gic buyers or financial reached such a fever During her 25-year ca- Reached in Singapore investors. The beauty pitch that several indus-

reer at P&G, Drosos has at press time, Henretta firms on investment bank- try observers suggested been a key player in the said her first order of ers lips vary greatly in size the French skin care brand company’s stellar rise to business is to relearn and and by category, ranging Clarins might be in play. the top ranks of the glob- reacclimate to the North from doctor-created lines, Christian Courtin-Clarins, al beauty industry. She American business, where including Perricone MD president of the Clarins was the architect of the transformation she spent most of her 27-year P&G career. and the Limited Brands’ Group supervisory board,

of Olay, which went from $200 million in She said a key task is to balance the U.S. Patricia Wexler M.D. quickly dismissed the issue. sales to $2.5 billion, and was a main driver business because of its large size with its Dermatology, to hair oils, such “Christian Courtin doesn’t in the creation of the entire masstige cat- Asian counterpart, which holds the key to as Macademia Natural Oil have time to comment on egory. She said her decision to leave the the future. “The business at this point is a and Moroccanoil, which unfounded rumors,” said company, rather than relocate, was “one little bit bipolar,” she said. One of her goals is rumored to have gener- a Clarins spokeswoman. of the toughest” she has had to make. But is to strengthen the equities of the brands ated interest from L’Oréal With or without Drosos said she ·· could not bear to pull her so she can enlarge their footprints. Olay has Professionnel at one point. Clarins in the mix, there two children — ages 13 and 15 — out of just been expanded to the Philippines and Moroccanoil’s chief is still plenty for inter- high school and move them around the India. The SKII color business has been executive officer Zohar ested buyers to consider, world at such a critical stage of their lives. launched in Japan and the men’s segment Paz reaffirmed the com- particularly if they are “I am incredibly grateful to Gina has debuted in South Korea, Hong Kong pany’s interest in remain- looking for smaller- for her contributions to the business,” and Taiwan, where “it has surpassed expec- ing independent, stating, sized brands. One bank- McDonald said. “She has been an incredi- tations twofold,” she said. “Moroccanoil remains Items from Perricone MD, er said, “The landscape bly important leader behind Olay’s growth McDonald said the relocation plan was solid in our commitment of independent brands Urban Decay and Yes To Inc. STUDIO to the number-one facial moisturizer in not influenced by recent criticism from to create the most innova- is dwindling. There are the world.” In addition to building Olay Wall Street that was fueled by poor quar- tive, high-performance products in the fewer companies with scale that are DIGITAL

into a $2.5 billion giant, he continued, terly earnings results and challenges with- professional industry, and to do this as independent.” Another issued a word CN

“She built other brands like Secret, Cover in the beauty business. “We think in terms an independent company.” of caution for brands looking to sell. BY Girl, Safeguard.” of decades and longer,” he reiterated. Industry buzz is also focused on “It’s a cluttered time to be getting

“This is a plan we shared the private equity firm TSG Consumer into the market.” PHOTOS with our board some time ago. This is not any kind The closer we are to the of knee-jerk reaction.” The ceo also said he consumer that we are serving, has no plans to name Unilever to Bring Clear to U.S. a beauty chief. “We’re the better the innovation. always thinking about Heidi Klum and Maria Menounos changing the organiza- By RACHEL BROWN — ROBERT MCDONALD, tion structure to meet the needs of the business UNILEVER IS INTRODUCING Clear Scalp PROCTER & GAMBLE CO. and utilize the talent & Hair Therapy, a brand it built during that we have,” he said. four decades abroad, to mass retailers in Asked to identify her single strongest “With the structure that we have today the U.S. characteristic, McDonald replied, “I think with two vice chairmen, we feel pretty Unilever has tapped German export of her as kind of like a velvet hammer. She good about the lack of hierarchy and the Heidi Klum to help make Clear big in is very strong leader, but she is able to de- flattening of the organization. So I don’t America, along with a walloping $250 mil- liver a strong message with great aplomb.” anticipate anymore elaborate changes.” lion two-year ad budget. McDonald asserted, “I wish her the The reaction from Wall Street cast the “We have a significant amount of support absolute best in the next stage of her life relocation as part of P&G’s ongoing realign- behind it, so it is poised to be the biggest and I’m going to help her achieve it.” ment. Bill Chappell, an analyst at SunTrust [personal care launch of the year],” said Gina Drosos said she was proud of having Robinson Humphrey, also alluded to P&G’s Boswell, Unilever’s executive vice president helped transform those brands and oth- plans to move its fabric care business of personal care in North America. ers like Old Spice and Cover Girl. She also ··to Geneva, and its baby care business to Clear, which is available in more than is proud of having had a hand in creating Singapore. “It shows that P&G is trying to 40 countries, was conceived as Unilever’s new product categories, like Smooth Finish be more of a global company. And that the answer to Procter & Gamble Co.’s Head & Facial Hair Remover, that basically influ- company thinks its opportunity is in Asia.” Shoulders, and has become the company’s JORDAN STRAUSS/WIREIMAGE enced how consumers approached beauty. — WITH CONTRIBUTIONS fastest-growing hair care brand globally. FROM M.P.

As part of her legacy, she pointed to the In the U.S., its positioning has been PHOTO BY

WWD Friday, may 11, 2012 7 WWD.COM BB Creams Gaining’’ Traction in U.S. Let’s Make a Beauty Deal: skin care product when using a BB cream. By BelISA SIlvA To avoid cannibalization, Grant said brands should educate their consumers M&A Gaining Momentum All HAIl the BB cream. to use the product side-by-side with their The NPD Group reports that the Asian other product offerings. beauty phenomenon known as BB Cream Grant also said consumers are just has hit American shores hard, generat- as likely to pick up a tube from mass or ing nearly $9 million from March 2011 to prestige channels, perhaps because con- March 2012. sumers may still be “This is a category confused about the to watch,” said Karen BB Creams have product and are look- Grant, vice president ing for an entry price and senior global in- only been on the point to experiment. dustry analyst for NPD. Although BB cream “BB Creams have only purchasers currently ac- been on the [U.S.] mar- [U.S.] market for count for only 2 percent ket for about a year and of the overall beauty they have made an im- about a year and market, 77 percent of pact so quickly.” that group has expressed Short for beauty they have made an that they are extremely or blemish balms, BB or very satisfied with creams are designed to impact so quickly. the product. In addition, heal problematic skin four out of 10 beauty and create a smooth — KaRen GRant, nPD shoppers say that they canvas for makeup. would consider buying The numerous benefits of a BB cream — it one in the near future. “There is shift to- acts as a moisturizer, primer, foundation, wards improving the complexion as opposed highlighter, antiager and skin protector in to [just focusing on] lines and wrinkles,” said one — may be what draw many women to Grant. “It’s now more about tone and texture the category, but Grant warns it could also and the overall health of the skin.” NPD be what makes the product an Achilles also reports that eight in 10 beauty shop- heel for beauty companies. “Brands have pers today seek products with multiple ben- to be careful as they incorporate these efits; and that figure rises to nine in 10 for quino a products in their portfolio. They have to BB cream purchasers. The top five benefits let consumers know its an enhancement consumers expect from BB creams, accord- John product and not a replacement product,” ing to NPD, are (respectively) natural look- An offering of BB creams. said Grant, who said that 70 percent of ing coverage, hydration, skin treatment, SPF Photo by users say they are forgoing a makeup or a protection’’ and improved texture. Coty Ups Its Bid for Avon to $10.65B {Continued from page one} es the likelihood Avon is acquired,” Stifel While we understand Avon’s interest in Nicolaus analyst Mark Astrachan wrote in conducting such a review given the sig- a research note on Thursday. “Absent an nificant challenges and uncertainties de- agreement, Avon’s board must present a scribed in your recent analyst call, this compelling argument to shareholders why review can and should be done in paral- the company should remain independent, lel with exploring the strategic alterna- particularly given numerous fundamental tive of selling the company....We will not and operational problems and highlight- keep our proposal open for the several ed by disappointing first-quarter results.” months that you say you need to conduct Should Coty walk, Astrachan said shares your internal review.” will likely return to high-teen levels. Coty stated its equity sources are pre- Coty may not be Avon’s only suitor. The pared to work until May 31 to find a mu- Dallas-based private equity firm Richmont May tually agreeable basis for a transaction. Holdings is reportedly putting together an The company reiterated that its equity offer as well. The family-run fund is lead financing sources would include its prin- by John Rochon, a former chairman and cipal shareholders Joh. A. Benckiser, BDT ceo of Mary Kay Inc. But a number of fi- Capital Partners and certain of its lim- nancial observers questioned Richmont’s Studio igital d ited partners, as well as the addition of ability to gather the funds needed to outdo

C n Berkshire Hathaway. Berkshire Hathaway Coty’s initial $10 billion bid. A spokesman by

S did not return calls requesting comment. for Richmont stated, “I can’t confirm or “We believe the revised offer is a fair deny the reports that have surfaced re- Photo starting point to negotiations and increas- garding Richmont and Avon.” 19-2 2

tweaked a bit. Six men’s stockkeeping Clear, Klum said she “asked them to units focus on the antidandruff mes- send me the products so I could try sage, but 11 women’s units concentrate them. I did that for about two weeks, Heidi Klum and Maria Menounos on scalp health providing the basis for and I really liked them.” The results beautiful hair and four Ultra Shea units were important because Klum stressed, aimed at African-Americans emphasize “I can’t really afford to have bad skin… moisture. Prices are $4.99 to $6.99. or bad hair that breaks everywhere or Boswell stated that 70 million doesn’t shine or doesn’t look pretty be- 2 012 Americans have scalp concerns and only cause that’s part of my business. It has half of them or less are doing anything been for 18 years now.” To look her best The 24th annual International Contemporary Furniture Fair about them. She said, “We believe this in the commercial, Klum specifically re- May 19-22 2012 at New York City’s Jacob K. Javits Convention Center is going to shake up America’s $6 bil- quested that Rankin direct it. 800-272-7469 or 212-204-1060 icff.com lion hair care category because its going Whether or not Klum will propel a to be the first new national brand to hit profitable launch for Clear remains hazy, shelves in a few years, and because of but Boswell is optimistic. “Our purpose is the fact that it is doing that with a differ- to get women to stop, pause and consid- mage i ent message about feeding the scalp.” er this new approach and what you are

/Wire Boswell said Klum brings a trust- going to see with the ads and with Heidi SS worthy stamp of approval. “She is very is going to get women to do that,” she discerning. She has a very strong point said. Asked about how long it might take of view.” Television spots starring Klum for Clear to cross into the black given its will begin airing next week, when the sizable advertising outlay, Boswell con- Produced and Managed by GLM Jordan Strau brand hits U.S. mass retailers, including tinued, “We have our eye on the penetra- Wal-Mart and Walgreens. tion this is going to create, and we know

Photo by Before she agreed to be the face of everything else follows beautifully.”

w11a006(7)a.indd 7 5/10/12 8:42 PM 05102012204313 8 WWD FRIDAY, MAY 11, 2012 beauty Recasting Arden for Growth “our assortment will collapse by 30 While arden no longer directly runs While Widmer and Beattie declined By Julie NaughtoN percent of our sku’s — and we expect to its branded spa business — it is li- to discuss numbers, industry sources es- grow that way,” said Widmer. “the com- censed to private equity firm Northcastle timated that arden will spend about $35 a little over a decade after ac- bination of making it easier and more Partners — that spa segment is currently million globally on communicating the quiring the elizabeth arden brand, e. straightforward to shop, but also focusing a $100 million business encompassing 34 updates, including print advertising, so- Scott Beattie, chairman, president and on those high productivity sku’s will be red door Spas in the u.S., mostly in the cial media and in-store initiatives. chief executive officer of elizabeth a better business. the 50 flagship stores New York city metropolitan area, said the changes are a long time in the arden inc., is positioning it for the next will get a complete makeover from the Beattie, and arden will leverage that making. Beattie’s French Fragrances decade and beyond. communications, the counter design, the heritage in moving the brand forward. international purchased arden and its he’s not holding back on his ambi- product assortment, packaging, diagnos- he noted that the spa channel’s explo- portfolio from unilever in November tions for the 101-year-old brand, which tics. Quickly after, that will flow into all sive growth — from about a $4 billion 2000 for $250 million and assumed the currently generates about $850 million doors. and in a cascading sort of order market in 1999 to a $13 billion market in arden name, with the ambition, Beattie in retail sales a year. “We doubled the of priority we’ll turn over the counters.” 2010 — will help fuel growth for arden. said, of becoming “more than just a do- brand size in a little over 10 years and the counter design, she noted, will be “We by far have the largest spa business mestic business.” at the time, FFi was we want to double it again in five,” said flexible depending on space available in the u.S., and we have the strongest distributing arden’s scents in the u.S. Beattie. “We also want to be in the top 10 and the region of the world. in some mar- market share and brand awareness of the brands included in the acquisi- in every market we’re in.” kets, such as asia, the customer prefers a any spas,” said Beattie. tion were the Fifth avenue, elizabeth the elizabeth arden brand mix is significant counter with a beauty associ- New brand communications include an arden, red door, green tea, Splendour, currently about 40 percent each for fra- ate on one side and the customer on the overhauled elizabeth arden brand Web Sunflowers and White Shoulders fra- grance and skin care, and about 20 per- other. in other markets, such as the u.S., site highlighting spa science and offering grances; the ceramides, Millennium cent for color cosmetics, said Beattie, the counters allow consumers to play a virtual consultations; new print advertising and visible difference skin care lines, and is generally in the top 10 in the bit more and ask a sales associate for which calls out product attributes, and an and the elizabeth arden color cosmet- markets in which it operates, which do help when desired. updated social media campaign. rebecca ics line. FFi also acquired elizabeth not include the large beauty markets of Beattie noted the brand’s “deep dNa” restrepo has been signed as the arden taylor’s White diamonds and Passion Japan, France and germany. “over the in the spa industry as another strong suit. brand’s global makeup artist, a new post. fragrance brands. next 10 years, we see huge opportunity “the prestige beauty industry and the spa despite the brand’s history of using in 1989, unilever had acquired arden for us in terms of growing our interna- from eli lilly for $1.5 billion, but in the tional platform,” said Beattie, noting the ensuing years, the brand’s domestic for- brand currently does two-thirds of its tunes had faded. Beattie noted that, at business outside the u.S. and that there Selections from Arden’s Visible Difference skin care line. the time, “the [elizabeth arden] brand are a number of domestic opportunities was broken, although the elizabeth as well. chief among them: taking a more taylor brand was still strong. upscale approach to business as opposed “When we acquired it, it was a com- to a heavily promotional play. bination of understanding the brand “the first step for us, and i think the equity,” said Beattie. he noted that the easiest step for us, is to strengthen the brand had a strong global platform which core markets where we have our stron- he was determined to build upon. “the gest market share,” said Beattie. “it quality of the international business at opens the door for other opportunities, the time — unilever had spent a lot of at the end of the day, there isn’t a retail- money nurturing the business interna- er that we deal with here or globally that tionally and frankly had a stronger team doesn’t believe that arden is a sleeping of people around the world. at that time, giant and that doesn’t believe that it can French Fragrances had ambitions of have a huge impact in driving improve- being more than just a domestic brand ment in the performance of its category.” and wanted to globalize, and the combi- Beginning in September, a flagship nation of knowing this brand well, work- system will be instituted globally to maxi- ing with unilever and distributing their mize business, said Beattie, with the rest fragrances here in the u.S. and under- of the strategies to follow soon behind. standing the strength of the international “We’ll have 50 flagship doors, geo- arden business made it a really attrac- graphically dispersed around the world,” tive acquisition.” While the game plan said Beattie. “they are beauty retailers faltered slightly after the events of Sept.

that are winning in the category, gener- O 11, 2001, the size of the arden business ally. one of the challenges we have for doubled in 10 years, said Beattie.

the arden brand is that there are retail- Aquin “in fragrance, we transformed our- n

ers and doors within retailers where we OH selves from a distributor to an owner, don’t have the kind of coverage we need J with a very small amount of distribut- from a beauty adviser point of view, or ing other people’s brands right now,”

the space or location is less than opti- PHOTO BY said Beattie, noting that less than 10 mal. the retailers aren’t going to con- percent of arden’s business consists of vert us from B or c space into a space industry are in great shape right now,” catherine Zeta-Jones as a face for its non-arden-owned products. “We’ve built without some kind of track record of he said. “in the spa area, we have a very arden brand, the restructuring will come up a strong fragrance business in North performance. if we’ve got a representa- strong competitive advantage vis-à-vis the without a celebrity face this time, said america — we have about 20 percent of tive sample of doors and we manage the rest of the prestige beauty brands. it gives Widmer. the market here in fragrance. that in- run rate improvement, we can continue us an edge that we haven’t really exploited “our task was to take a high awareness cludes our distribution brands, but if we to drive the upgrade globally. and it gives to the degree that we probably should.” brand and make it relevant,” said Widmer. were to net those out we’d probably be the retailers a perspective on what size one developing initiative which will “the New York heritage of the brand is in the midteens in terms of market share the opportunity is.” address that challenge: an express spa something that we have not leveraged across all the channels. and we’ve got a “We’re completely revamping the en- complex will target younger consumers for quite a while. it’s a reminder that the very strong department store fragrance tire [elizabeth arden-branded] lineup and is being designed with a product and brand is a New York brand. When you get business now, where we launch and de- — every single package and every single service integration. “the treatments will to Shanghai, being a New York brand mat- velop brands. Not all of our brands ul- sku,” added Kathy Widmer, executive vice capture what’s happening all around the ters a lot.” as does the spa heritage, she timately cascade into mass; more and president and chief marketing officer city in terms of really efficient value-based said, noting that arden has strengthened more of our brands are developing their of elizabeth arden. the arden brand’s treatments,” said Widmer, who has spent its relationship with the red door Spa to breadth internationally, and some will stockkeeping units have been put on a the past 18 months working on the restage facilitate that goal. elizabetharden.com stay exclusively in prestige. We’re at diet. currently, sku’s number 488; that of arden. “You might go in with short lash- was relaunched last month. a point now where we felt this was the count is being trimmed to 355, focusing es and come out 20 minutes later with long “What we’ve looked to do [on the Web prime opportunity to take on the reposi- on key pillars. in skin care, those pillars lashes. You can get a blow dry. You can get site] is to also bring the spa and spa sci- tioning of the arden brand.” are Prevage, the company’s premium skin a mani-pedi. Yo u get a brow or a wax, but ence forward,” said Widmer. “We’ve Beattie also referred to a goldman care line; ceramide, arden’s entry-level they’re all short and high energy, more fo- launched our e-commerce platform, Sachs report which predicted that in per- skin care play, as well as the best-of-the- cused on the great night out than they are which is much more engaging and easy to sonal care, for the next 30 years, there best visible difference and the venerable focused on the deep immersion in a spa, shop. We have a lot of content in here that will be 8 percent compound growth in the 8-hour cream lines; in fragrance, red and fully integrated with that would be the allows for engagement into social media, category globally. “it’s a trillion-dollar op- door, green tea and 5th avenue, and in products which would be elizabeth arden so you can sort of lift from here and take portunity around the world. So people that color, foundation-based skin care and eye and/or red door products that surround it elsewhere. Spa science is a compo- have global brands, whether it’s P&g or and lip products. the makeup’s packag- each one of those experiences. We’re in nent of this that allows us to play out our colgate or lauder or l’oréal or us or avon ing will transition from the current black the design phase now with a couple of de- spa story. and there are diagnostics here or whoever, the opportunity ahead of our- compacts to compacts of gold and silver sign agencies for how we might actually designed to help consumers find out an- selves is just fantastic. the trick is to have with the brand’s signature red door. bring that to life.” swers in a teaching atmosphere.” a portfolio full of the right brands.”

w11a008a;3.indd 1 5/10/12 7:46 PM 05102012194722 FASHION FRIENDS: Early WWDSTYLE Morning Rebel cozies up to the industry. PAGE 10

PHOTO BY THOMAS IANNACCONE MEMO PAD

LITTLE BABY BUMP: Did the anticipation for Jessica Simpson’s baby, following a marathon pregnancy, create a bidding war for her new baby pictures? Not really. Several sources told WWD that People magazine will pay the former pop star about $800,000 to run exclusive photos. Meanwhile, the new issue of Us Weekly has Simpson on the cover, with news on her $4 million weight loss deal and her fiancé’s “fear of diaper duty.” Simpson’s deal with People isn’t too significant, at least compared to celebrities such as Matthew McConaughey, who sold photos of his newborn son to OK magazine for $3 million, according to reports. When Jennifer Lopez gave birth to twins, she pocketed $6 million from People and, although it’s probably unfair to compare, Angelina Jolie and Brad Pitt famously received around $11 million for the exclusive on their twins. Not all celebrities are courting celebrity weeklies, though. Beyoncé Knowles and Jay-Z, who could have made millions off the pictures of their newborn Blue Ivy Carter, steered clear of the weeklies. Instead, they posted pictures on Tumblr, along with a short statement: “We welcome you to share in our joy. Thank you for respecting our privacy during this beautiful time in our lives. The Carter Family.” — AMY WICKS

MANDARIN MAGAZINE: Brands don’t necessarily have to travel all the way to China to reach Chinese consumers — lots of them visit the U.S. That’s the idea behind Yu e magazine, a recent joint venture between Jared Kushner’s Observer Media Group and Chiu-Ti Jansen, editor and publisher of the quarterly title, which is targeted at wealthy Mandarin-speaking tourists as well as residents of New York. Yu e has a controlled circulation of 35,000, including 8,500 copies mailed to Chinese New Yorkers with incomes over $250,000 and the remainder distributed to a targeted list of hotels, restaurants, stores and cultural and business centers popular with affluent Chinese tourists. Advertisers in the bilingual glossy, which launched in the fall, include Ralph Lauren, Tiffany & Co., Estée Lauder, Barneys New York, Christian Dior and Fendi. “The business has been beyond expectations,” said Kushner, who celebrated Yue’s third issue with a party at Trump Tower on Wednesday evening, with wife Ivanka Trump and father-in-law Donald Trump at his side. “Chinese tourism is in its early stages and over time there will be a lot more as it becomes easier to get a visa.” On Thursday, the White House issued a memo touting its efforts to increase foreign tourism to the U.S., including shortening visa waits in China to less than a week and investing $22 million in visa facilities in China this year. Chinese visas to the U.S. were up 46 percent to 453,000 in the most recent six-month period, The according to State Department figures. Next month, Kushner and Jansen will launch a West Coast version of the magazine called Luo, which will cover Los Angeles, Las Vegas and San Francisco. The title will have a circulation of 25,000, with a similar distribution strategy Wife mixed between high-income Chinese residents and upscale tourist destinations. The Observer Media Group and Jansen each own 50 percent of the venture, with the former providing the publishing, sales and distribution infrastructure. “People think of China as a new luxury market but in truth it’s always been one, Life from porcelain to silk, and luxury is intrinsic to the culture,” said Jansen, a former financial services NEW YORK — Julianna Margulies, lawyer who was born and raised in Taiwan and earned a law degree at Columbia University. star of “The Good Wife,” talks Apart from its flagship paper and Web career, parenting and giving back. site, Observer Media Group’s properties now include Scene, Politicker.com, Livingthere. For more, see page 10. com, Velvetroper.com, Betabeat.com, Commercialobserver.com and Galleristny.com. — DAVID LIPKE 10 WWD FRIDAY, MAY 11, 2012 FOR MORE PHOTOS, SEE Francisco Costa WWD.com/eye. and Jeísa Noth’s character has actually Chiminazzo eye taken the biggest turn of all,” she in Francisco says. “It’s been really wonderful Costa for to watch his progression and Calvin it’s so interesting to see that he Klein. really does want to be good. He’s becoming the good husband.…I think he really wants her [Margulies’ Alicia Florrick] back.” When asked if there is life after the hit series, the actress

is buoyant. NEIL RASMUS/BFANYC.COM “I always think there is a life as long as you are willing to work hard and find it,” she says. “I’ve PHOTOS BY promised my husband [Keith Lieberthal] and my son that if it belongs in television it will be A Brazilian Affair cable and a half hour because they haven’t seen much of me in BRAZIL. It’s a place known person here who doesn’t speak three years.” for its warmth and vibrance. Portuguese,” cracked Macy’s Margulies, who also serves On Wednesday night, the Terry J. Lundgren. as the face of L’Oréal Paris’ Brazilian flair was imported to Thankfully, for him, there RevitaLift skin care line, says Manhattan’s Upper East Side, were also a few English she was drawn to the Women of when Angela Westwater and David speakers at the family-style Worth program after presenting Meitus opened their home for dinner, such as Melissa George, an award to one of last year’s a dinner to fete Francisco Costa Lisa Phillips, Olivia Chantecaille, winners, Gretchen Holt Witt, who and his new capsule collection Zani Gugelmann, Georgina started Cookies for Kids’ Cancer for Calvin Klein as part of Brandolini, Barry and Cheryl Julianna THOMAS IANNACCONE to raise funding for pediatric Macy’s “A Magical Journey to Schwartz, John DeStefano, Hanneli Margulies cancer research after her late Brasil” promotion. Mustaparta, PVH Corp.’s Emanuel

PHOTO BY son Liam was diagnosed with the “Angela is such a good Chirico and his wife Joanne, and disease. Each year the program friend,” Costa said of the Calvin Klein Inc.’s Tom Murry. awards funding to 10 women hostess, who is one of the most The official launch isn’t across the country making a recognized but understated until next week, but the dresses Good Intentions difference in their communities. fixtures of the New York art that are already available “These women were so world. “Being in her house is at Macy’s — and selling like SHE MAY PLAY a doting performance and Sunday extraordinary and exceptional like being at home.” caipirinhas on a hot day at mom to her television son and matinee, I think is very hard on and most of these women you’d The dinner guests at the Ipanema beach. “It’s already a daughter on CBS’ “The Good a family life. I hear that when hear their stories and think, that’s Fifth Avenue apartment big success,” Murry said. “I was Wife,” but in real life Julianna [kids] become high schoolers when you quit,” the actress says. certainly shared the designer’s worried we’re not going to have Margulies has a far more they don’t want you around “Instead they persevered and sentiment, roaming around inventory for the big night.” practical view on parenting. on the weekends so I figure by not only helped other women the art-filled rooms, nibbling — MARC KARIMZADEH “I’d love to go back to the then I’ll be able to do that.” but changed their communities, on coxinhas and croquettes stage, but I don’t think I will until Margulies, who during her changed medical research, — Brazilian specialties — my son [four-year-old Kieran show’s hiatus in April filmed helped other women get jobs.” and playing with the hosts’ Lindsay Lieberthal] is in high “Stand Up Guys” with Al Pacino, Karen Fondu, president of miniature poodle Basket. school and doesn’t want me Christopher Walken and Alan L’Oréal Paris, says the actress’ For the occasion, Westwater around on weekends,” Margulies Arkin, says the experience was teaming with the cause makes got some Brazilian cookbooks, said Wednesday at New York’s like “being in a master class” for an “extremely special” and she and Costa went over New Museum, where L’Oréal among acting greats. combination. “She is a beautiful the recipes in honor of the Paris revealed her as ambassador Although she has “no director’s person inside and outside,” largely Brazilian crowd, which for its Women of Worth program. yearnings,” Margulies says she Fondu says of Margulies. To included artist Vik Muniz; actor “When I was single without is very interested in producing, date, Women of Worth has Rodrigo Santoro, who’s widely a child, doing theater was something that she has gotten to honored 60 philanthropic referred to as the Brazilian Brad awesome,” the eight-time do on “The Good Wife.” women. Nominations for this Pitt; models Jeísa Chiminazzo and Screen Actors’ Guild Award Her latest thoughts on year’s program will run through Izabel Goulart; Lorenzo Martone; and two-time Emmy Award the evolution of the show’s May 31 and can be made at television host Pedro Andrade, winner continues. “But to do main characters? womenofworth.com. and Brazil Foundation’s Patricia Angela Westwater in Calvin Klein a Saturday matinee, Saturday “Honestly I think that Chris — BELISA SILVA Lobaccaro. “I think I am the only Collection with Vik Muniz.

last fall. “At that point, they’re quality to this body of work,” Blumenfeld-James says. “We Dustin Bath taking risks. One of those Blumenfeld-James admits. “It’s wrote ‘Life Boat’ specifically and Nathan designers, Francesca Marotta, a way to express some elements with ‘Grey’s Anatomy’ in mind. Blumenfeld- is building her next show of pain. Some of our songs have When we’re collaborating with James around our music.” a harder quality than ‘Life TV shows or brands, it’s about

THOMAS IANNACCONE The band also talked to Jeffrey Boat.’ All our songs are about the music complementing the Michael and Mark Thomas Taylor direct experiences.” brand or scene.” about performing for their runway Aware of the importance of While EMR is starting to PHOTO BY shows. Zandra Rhodes is leading first impressions, especially take off, Blumenfeld-James a Cultural Olympiad project in in fashion, the band carefully and Bath aren’t ready to give Coventry during the 2012 London cultivates a look that enhances up their day jobs — shooting Olympics and Blumenfeld-James their appeal. “Our long- freelance music videos — hopes EMR will be a part of that term goal is to have our own just yet. “It’s a tough game,” given they performed for her On/ fashion brand,” Blumenfeld- Blumenfeld-James says of the Off event in September. James says. Bath’s girlfriend, music industry. “We have our The group, which formed a designer who works with own studio in Venice. We’ve only eight months ago, had its private clients, is giving them been fortunate to make some first brush with larger fame tips. Both men’s staples include money and support the brand.” in January when its single, James Perse white T-shirts; EMR’s schedule is picking “Life Boat” was featured on an unique leather bomber jackets up. The band performed in episode of “Grey’s Anatomy.” often found in Europe; vintage New York City on Monday and “We’re fans of what they do,” boots; hats from a Venice, Calif., Tuesday. “Burn Us Down,” will Rebel Sell says Bath. “[The show] is a hatmaker, and sunglasses by be released later this month, catalyst for music and [the Oliver Peoples, Dita and the followed in August by another HOW DOES a Los Angeles band about their bodies of work and producers] have great taste.” occasional pair of classic Ray- single, “Find an Easier Way.” A with dark, edgy lyrics become a how they’re inspired by music.” “Life Boat,” about losing Bans. The band has a network West Coast tour is in the works darling of the fashion world? While taking in the fashion someone to their dark side, is of Los Angeles designers and a new album is due out in Early Morning Rebel scene, EMR forged ties with autobiographical. “Someone’s who outfit them with custom the fall. is following a strategy of Hedi Slimane. “We got to work actually really suffering and I garments such as Glen Wong, All this leaves less time for ingratiating itself with fashion with him on photography,” can’t save them,” Blumenfeld- “our very own denim maker personal pursuits. Bath, an figures, for whom it claims to says Dustin Bath, a musician, James says. “There’s a hopeless who does our custom jeans.” avid surfer, would like to spend have a strong affinity. “There’s photographer, director and quality to it, but it’s also hopeful” EMR is commercially savvy more time in the ocean, while something about designers that sound mixer. “He’s inspired a lot when you realize you aren’t enough to know the difference Blumenfeld-James, a foodie, we love, mostly on a creative of our aesthetic.” responsible for them. Another between a highly personal loves restaurants. “Our work level,” says Nathan Blumenfeld- “In London, we were really EMR cut, “Burn Us Down,” aired song that taps into the band’s always takes priority over James, Early Morning Rebel into the up-and-comers,” on a March 18 episode of A&E’s raw emotions and “writing everything,” he says. “It’s hard vocalist and founding member. Blumenfeld-James says of the “Breakout Kings.” something that a model can on the women in our lives.” “It’s cool talking to designers band’s performances there “There has been a darker walk down the runway to,” — SHARON EDELSON WWD Friday, may 11, 2012 11 WWD.COM Fashion scoops THOMAS IANNACCONE COMPENSATION PACKAGES DECLINE AT inspiration. StyleBistro has built the PVH: Total compensation packages software that currently is able to ingest

at PVH Corp. fell in 2011, due and tag millions of pieces of photo PHOTO BY mostly to declines in the value of content to be used by its editorial stock awards and the annual bonus, team. — RACHEL STRUGATZ according to its proxy filed Thursday with the Securities and Exchange BAGGED LUNCH: Nanette Lepore and Commission. Emanuel Chirico, chairman Carlos Falchi were honored Thursday Karen Hoguet, Lisa Price, Jessica Alba, Gayle King, Nina Garcia and Mindy Grossman. and chief executive officer, saw his at the Madison Square Boys & Girls compensation package decline 34 Club’s annual Purses & Pursenalities percent to $8.5 million from $12.9 Luncheon at Cipriani 42nd Street in million in 2010. While his base salary Manhattan. Before the lunch kicked Outstanding Mothers Honored rose to nearly $1.3 million from $1.2 off, guests used smartphones to bid NEW YORK — Five hundred people Inc., said balancing one’s family and work million, the value of stock awards silently on bags from the likes of turned out Thursday to celebrate the 34th life is encouraged at Macy’s. So often she fell to $2 million from $4.5 million Salvatore Ferragamo, Prada, Tory annual Outstanding Mother Awards at The hears comments that motherhood and a and his bonus was nearly $3.8 million Burch, Coach, Tiffany, Fairchild Pierre hotel here. career are in conflict, but she disagrees. compared with $6.5 million in 2010. Baldwin and Michael Kors. While the Jessica Alba, Gayle King, Nina Garcia, “I’m a far better executive because of my Fred Gehring, ceo of Tommy Hilfiger luncheon draws a crowd of socially Lisa Price and Karen Hoguet were this year’s experiences as a mother,” said Houguet, the and PVH International Operations, minded New Yorkers, the focus of the honorees, each telling poignant stories about mother of two daughters. had a total compensation package of gathering is on the charity, said design what it means to them to be a mother and the King, who is cohost of “CBS This Morning,” $6.8 million versus $15.3 million in chairman Eric Javits. challenges of balancing a demanding career and editor at large of O, The Oprah Magazine, 2010. Gehring had a base salary of “It’s a great cause,” said Lepore, and motherhood. Mindy Grossman, chief ex- said she wanted to be a mom since she was in $1.2 million in 2011 and stock awards while motioning to Falchi, who posed ecutive officer of HSN Inc., was mistress of seventh grade. Now her children are 25 and totaling $686,083. His 2011 bonus was for photos nearby. Both designers ceremonies at the luncheon, which raised 26. At one point she thought she’d stop work- $3.5 million. Gehring didn’t receive stressed they produce their collections funds for Save the Children. ing to be home more when they were teens, a base salary in 2010, but the value in Manhattan. “I love Carlos. He’s been Alba, an actress and activist, said her but she found that she loved working. “When of stock awards was $10 million doing manufacturing in New York for so daughter inspired her to create the Honest you’re happy at your job, it makes you abetter and the bonus was $3.3 million. The long. I find some of his vintage bags on Co., which is an eco-friendly firm that mar- mother and vice versa,” said King. company said his stock awards include the market and I love them,” she said. kets high-performance nontoxic household Price, founder of Carol’s Daughter, re- restricted stock issued to him as part and baby care products exclusively on the called one morning when she was rushing of the consideration for his ownership INO Web. “Being a mother is the only important to get her young son out the door for school.

interest in Hilfiger. Aqu thing in my life. I’ve finally come into my Someone else was taking him, and she was

Paul Thomas Murry, president and ceo OHN own, and I finally understand what being still in her pajamas and hadn’t showered or J BY

of Calvin Klein Inc., received a total sexy is and owning my womanhood,” said done her hair. Her son asked her if she was compensation package of $3.8 million Alba, the mother of two young daughters. coming to school that day, and she said no.

in 2011, or a 22.6 percent decline from PHOTO Garcia, fashion director of Marie Claire But he said, “It’s Read With Parents Day.” $4.9 million in 2010. His base salary and “Project Runway” judge, recalled as Of course, she had forgotten, and she ran increased to $900,000 from $883,333, a young girl that she never wanted to be a in the bedroom, threw on sweatpants, a sweat- while the total value of stock awards mother or get married, and only wanted to shirt and Crocs and went to school. “He was was $419,419 from $1.4 million in 2010. pursue a career. “What I didn’t realize was beaming,” and she was glad no one saw what Murry’s bonus in 2011 was $1.4 million that I could have both a dream job and a a mess she was. Several months later, her son from $1.7 million a year ago. dream family,” said Garcia. She said her presented her with a Mother’s Day gift he The full value of stock awards might son, Lucas, has tested her strength of char- made at school. It was a picture of her from not be realized because of vesting acter in ways that she’s never encountered that morning, in a hand-made frame. “That’s schedules and stock price fluctuations. in the professional world. the pleasure, pain, joy and embarrassment all — VICKI M. YOUNG Hoguet, chief financial officer of Macy’s at the same time.” — Lisa Lockwood

TAILOR, TAILOR: It’s been a big week for the boys from Odin. A day after Target revealed that Eddy Chai and Paul Birardi, Nanette Lepore and owners of the directional retailer, Carlos Falchi have been chosen as the men’s wear designers for the second installment of The Shops at Target program, they revealed they will open a Todd Snyder pop-up shop at their Lafayette Street For more career opportunities log on to WWDCareers.com. store next week. The Todd Snyder Tailor Shop at Odin will focus on Snyder’s suits and furnishings, which are produced through a collaboration with Southwick, the U.S. manufacturer owned by Brooks Brothers. “They started selling our line in the fall and did well with it,” Snyder COMMERCIAL REAL ESTATE said. “They came in to look at resort and PATTERNS, SAMPLES, we starting kicking around some ideas. PRODUCTIONS A selection of handbags for auction. Full service shop to the trade. We decided on this and it happened in a Fine fast work. 212-869-2699 week.” Snyder said although Odin is not a suit store and Todd Snyder is not a suit “I feel very honored,” Falchi said line, the pop-up shop is nevertheless before echoing the importance of “a great way to highlight the lost art” locally made product. “Business is hard of American suit manufacturing. The but what better place to be on top of it launch party will be Tuesday night and than right here?” — ALEXANDRA STEIGRAD the shop is expected to be open through

June. — JEAN E. PALMIERI TIME SHIFT: Australian Fashion Week ACCOUNT EXECUTIVE....$90 - $120 K may be about to get its biggest-ever shot Major Apparel Co., dept. stores a must Jennifer Glenn SRI Search 212 465 8300 STYLEBISTRO TO LAUNCH “TV FASHION”: in the arm. The event’s organizers are [email protected] StyleBistro will introduce “TV expected to announce Friday that the Fashion” today, a section on its site spring shows will move to late March that allows users to locate images next year from their current slot in early and credits from the outfits worn May. According to industry sources, IMG on various hit TV shows. Fashions Fashion Asia Pacific, which oversees Showrooms & Lofts BWAY 7TH AVE SIDE STREETS from 12 series will be available the Sydney shows, is planning to hook Great ’New’ Office Space Avail upon the launch — including “The up with Melbourne-based Australian ADAMS & CO. 212-679-5500 Voice,” “Glee,” “90210,” “Vampire Exhibitions and Conferences. AEC Diaries,” “Gossip Girl,” “American organizes Australia’s biggest fashion Idol,” “Dancing With the Stars,” trade show Fashion Exposed and the “Fashion Star,” “Modern Family” and spin-off boutique show, Premiere. The “Revenge” — with the site linking to new fashion week dates would coincide a direct point of purchase. In a case with the March edition of Premiere. where the actual item might not be Many people believe that Mercedes- available via e-commerce, suggestions Benz Fashion Week Australia’s current for similar product will be made. “TV May timing runs either too late for Fashion” will also feature interviews the Australian spring buying cycle or with stylists from the above shows to else too early for the resort season for (800) 423-3314, or email [email protected] give users a behind-the-scenes look northern hemisphere-focused designers. at the characters’ personal styles and — PATTY HUNTINGTON

w11a011a;8.indd 11 5/10/12 8:25 PM 05102012202612 12 WWD friday, may 11, 2012 WWD.COM OBITUARY SA Legend Jack Mulqueen Dead at 69 Kenzo, Ungaro, Yves Saint Laurent and By LORNA KOSKI Giorgio Armani,” he said in 1981. Ellin Saltzman, then senior vice presi- NEW YORK — Jack Mulqueen, one of dent and fashion director of Saks Fifth the last of the true outsized characters Avenue, said, “He seems to copy collec- of Seventh Avenue, died peacefully at his tions before they are created.” home on Wednesday at age 69. “His dresses would be a lot less inter- The cause of death was liver cancer, esting,” said Bloomingdale’s president which had been diagnosed earlier in Marvin Traub at the time, “if we didn’t the year. also carry the designer originals.” Mulqueen, a fast-thinking, mischievous Mulqueen made his reputation in visionary, was at his height the charming better-priced silk dresses, cotton dresses king of the copyists on Seventh Avenue. and knitwear and was a pioneer in using While other manufacturers preferred nonwhite models, helping to launch to be discreet about their knockoffs, he Iman’s career. By 1981, Jack Mulqueen swaggered about his, boasting in 1981 that was a $150 million business, with free- he had bought a $610 Chloé blouse at Saks standing shops in New York, Palm Beach, Fifth Avenue and copied it for his Silk Chicago and Bal Harbour. Meryl Streep, Fashion Group to wholesale for $48. Faye Dunaway, Barbara Sinatra and His unabashed approach won him a Olivia Newton-John were among his fans splashy lifestyle that included such assets in the early Eighties. But his real cus- as a silver Maserati, a white Ferrari, a sil- tomer was a young working woman who ver Rolls Royce, a 38-foot Rybovich Sport would have been unable to afford the Fisherman boat docked in Palm Beach original Chloé blouse. and an apartment on Sutton Place in The silk manufacturing market was Manhattan. He “gambled in Monte Carlo, oversaturated, however, and Mulqueen shopped on Savile Row and dined at was forced to shutter the business in Maxim’s,” he said. A regular among New 1986. Subsequently, Mulqueen had York’s nightlife, he was known as Fast more comebacks than Dorothy Parker, Jack, profiled in French Vogue as “un roi but never quite recouped the scale he de la soie,” and said in 1981, “I don’t cut in had enjoyed in the Seventies and early dozens or grosses. I cut tonnage.” Eighties. In 1989, he signed a pact to cre- A big dreamer with a sharp, ana- ate dresses for Cherokee. In 1990, he be- lytical mind and a highly accomplished came involved with the Non-No Fashion sailor, John Anthony Patrick Mulqueen Group of Korea. In the ensuing years, was a native New Yorker. His father he contracted for other Seventh Avenue owned a trucking company and he went houses, working with Jaclyn Smith for to Fordham, which he left to sell BVD Kmart, and the Kathie Lee Collection, did hosiery. He was married to his wife private label and created mass-market Patricia for 15 years; they had a daugh- apparel through a license with Revlon. ter, Whitney, who was an equestrian. He In 1995, he returned to the bridge mar- and Patricia later divorced, something ket with an eveningwear collection and, he attributed to his workaholic ways. in 1996, created a moderate line, Jack His second wife was Diana Villanueva. Mulqueen Studio. In 1998, he took part Mulqueen spent his early working years in what turned out to be a failed busi- at Jones New York as one of the com- ness deal between Sears, Roebuck and pany’s founding principals, and running Benetton. In 2000, he launched a signa- Jaeger USA as managing director, grow- ture sportswear line to be sold in Bergdorf ing the luxury British label’s retail net- Goodman and Neiman Marcus — what work to more than $100 million in more he called an “international Riviera” look than 90 in-store shops and freestanding — that featured feminine silk blouses in-

stores. He then founded The French homas Iannaccone spired by men’s tuxedos and dress skirts t Connection and the St. Tropez Pants and narrow pants. He said he was influ- Works, both of which were financed by enced by the return of Gucci and by Tom

Maurice Bidermann. He ran these busi- Photo by Ford’s new role at Yves Saint Laurent. nesses while being U.S. president for “We’re not going techno, we’re going su- Dana Cote d’Azur, a clothing firm based perluxury,” he told WWD. “The customer in Nice, France. hanging out at the Hotel Monte Carlo dur- In 1976, with the Korean manufac- Mulqueen’s unabashed approach won him a ing race week is the customer we want.” turer Kosilk, he launched his own firm, “I’m more extreme than most,” he Jack Mulqueen Ltd., which went on splashy lifestyle that included such assets as a once said, “but like I tell Whitney about to feature licensed collections for Pat her horses: If you come in second, you Tennant, Stephen Burrows, Valentino, silver Maserati, a white Ferrari, a silver Rolls might as well come in last.” Zandra Rhodes and Mary McFadden, In addition to his daughter, he is sur- along with his signature line. His strat- vived by his wife Diana, son Jack and a egy: to tell top designers he was going to Royce, a 38-foot Rybovich Sport Fisherman grandson, Cole. Private services were copy them, and ask if they wanted to do held Thursday. In lieu of flowers, the a licensed collection with him instead. boat docked in Palm Beach and an apartment family asks that donations be made to Then, if they said no, he’d knock them off New York’s Rogosin Institute for diabe- anyway. “I copy only shining stars like on Sutton Place in Manhattan. tes and kidney research.

million SME. “What is really interesting is that within that [overall apparel U.S. Apparel Imports Down in March import number], after months of being down, China rebounded late spring and summer. cent to 4 billion SME. ports from South Korea rose 7 in the month of March,” Hughes By KRISTI ELLIS “The fact that apparel im- The overall trade deficit wid- percent to 120 SME. With its bi- said. “Vietnam has remained ports were down overall is still ened in March to $51.8 billion lateral trade agreement with the pretty consistent on a growth WASHINGTON — Apparel imports reflective of the caution among from $45.4 billion in February. U.S. in effect since February, it pattern and it has been a mixed to the U.S. fell in March, continu- buyers to not overcommit and Apparel and textile ship- was the only other top 10 coun- bag among Western Hemisphere ing a long downward import trend, have too much production on ments from China, the top sup- try to post a combined increase. countries, with Honduras down while textile imports increased for hand where there is still un- plier to the U.S. that has seen Combined apparel and textile [in apparel imports] but El the first time in several months, certainty about consumer confi- shipments decline for several shipments from China have fall- Salvador up.” a report from the Commerce dence,” said Julia Hughes, pres- months, rebounded in March, en every month in 2012. China said Thursday that its Department’s Office for Textiles ident of the U.S. Association of increasing 18.5 percent to 1.5 Vietnam posted the largest overall imports in April were up and Apparel showed Thursday. Imports of Textiles and Apparel. billion SME compared with a apparel import increase, grow- just 0.3 percent. Apparel imports overall fell U.S. textile imports from the year earlier. Combined indus- ing 17.4 percent to 166 million Pakistan had the largest year- 4.8 percent in March to 1.6 billion world rose 7 percent to 2.3 bil- try shipments from Vietnam, SME, but was followed closely over-year apparel import decline square meter equivalents from a lion SME in March compared which has been taking some by China, which still controls in March, down 25.6 percent to year earlier, signaling that retail- with March 2011, boosting the share away from China, rose 8 the lion’s share of apparel im- 47 million SME, while India had ers and brands are still maintain- combined total of apparel and percent to 245 million SME in ports. Apparel imports from an apparel import decline of 24.5 ing lean inventories heading into textile shipments by 1.7 per- March. Apparel and textile im- China rose 14 percent to 467 percent to 82 million SME.

w11a012a;11.indd 1 5/10/12 8:33 PM 05102012203412