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Fluid Dynamics s FASHION NEWS: Bernard Activewear gets MEN’S: Hartmarx Arnault on even more high-tech, taps Emerisque China, and pages 6 and 7. as stalking horse Louis Vuitton’s bidder, page 3. new art exhibit in Hong EYE: Partying in s Cannes with Dolce & Kong, page 5. s Gabbana, page 4. Women’s Wear Daily • The Retailers’ Daily Newspaper • May 26, 2009 • $3.00 WReady-to-Wear/TextileswDTUESDAY Fluid Dynamics For cruise, Yves Saint Laurent designer Stefano Pilati is drawing on the heritage of the legendary house founder in ready-to-wear, while the bold accessories echo the bohemian mix for which Loulou de la Falaise was known. Rich colors are worked in sensuous and voluptuous shapes, and silky knits and chiffon dresses fall in loose cascades. Here, a bleached silk and cashmere sweater with a silk and rayon shirt and skirt. For more, see page 8. A New Crop of CEOs: Wave of Changes Seen At Italy’s Fashion Firms By Luisa Zargani and Andrew Roberts MILAN — There are still more questions than answers swirling around Gianni Versace SpA. The company on Monday issued a statement following a board meeting in which it said the firm approved a new three-year plan prepared by Bain & Co. It said Versace operated in the black in the first quarter, but that revenues fell 13.4 percent, partially as a result of the bankruptcy of Ittierre SpA, which produces the Versus line. The company said April and May showed an improvement in business, however. As for the future of its chief executive, Giancarlo Di Risio — that is where the confusion came in. Versace said Di Risio was present at the board meeting, along with directors Donatella Versace; her brother, Santo; Leonardo del Vecchio; Paolo A. Colombo; See Change, Page13 PHOTO BY FRANCK MURA FRANCK PHOTO BY 2 WWD, TUESDAY, MAY 26, 2009 WWD.COM Dolce and Gabbana Deny Tax Evasion By Andrew Roberts said thesis is proven. If this happened, [the de- signers] would be facing a blatant violation of WWDTUESReady-to-Wear/TextilesDAY MILAN — Domenico Dolce and Stefano Gabbana the principle of contributory capacity…as the could be personally liable for more than a bil- request would then be for taxation of unearned FASHION lion dollars in unpaid taxes income.” With slick silhouettes and a variety of wellness and fines, following an in- Dolce and Gabbana ex- s 6 features, fall activewear often features a second vestigation by Italian police, plained they had “only ac- skin that’s as useful as the first. although the two designers tually received 360 million deny any wrongdoing. euros,” or $447.8 million, GENERAL A spokeswoman for Italy’s from the transaction and had The fashion industry looks set for a summer of excise and revenue police declared and paid everything 1 musical chairs, at least at the chief executive confirmed Monday it had rec- that was owed to the fiscal au- officer level. ommended the country’s fiscal thorities. They said that if the agency charge the designers police’s calculations were cor- 3 Emerisque, the London private equity firm, was with tax evasion and abuse of rect, their brands would have named by bankrupt Hartmarx Corp. as the stalk- rights and fine them 800 mil- been worth 1.1 billion euros, ing horse to acquire most of its assets. lion euros, or $1.12 billion. She or $1.37 billion, in 2004. 3 Two months after exiting Earnest Sewn, Scott declined to give more details. “We wish!” the designers Morrison is back in the denim game as the new Dollar figures were con- scoffed. “We will tell the 3,800 global chief executive officer of Evisu. verted at average exchange employees of the companies, rates for the periods to which which compose the group, 5 Much to L’Oréal’s chagrin, the U.K. High Court they refer. that we have paid all that was ruled eBay isn’t responsible for trademark Dolce and Gabbana issued a due and that we will strenu- infringement by sellers using its site. vehement denial of the allega- ously defend ourselves to 9 RTW: New York City may be the base for the tions, which relate to the 2004 avoid being unjustly forced to United Nations, but it’s also become the home of sale of the Dolce & Gabbana pay for something that never the United Nations of fashion. and D&G brands to the design- existed in the first place.” ers’ Luxembourg-based hold- For the fiscal year ended 10 TEXTILES: Existing tools and resources to make ing company Gado Srl. Mar. 31, 2008, Dolce & cotton textile processing more environmentally “It’s a paradox! Gabbana Holding Srl sound are being underutilized. Since when does one reported a 61 percent Germany’s two largest department store groups decline in net profits have to pay taxes on 14 — Metro Group, parent of Galeria Kaufhof, and money one never actu- Since when does one have to 58.9 million euros, Karstadt owner Arcandor — look set to merge. ally collected?” the de- “ or $83.5 million, on signers said in a per- to pay taxes on money one revenues, which EYE sonal statement. “It’s gained 21 percent to Stefano Gabbana and Domenico Dolce gave a an absurd demand never actually collected? 1.27 billion euros, or 4 based on a completely — Stefano Gabbana and Domenico” Dolce $1.8 billion. The drop lesson in party-throwing Friday night when the duo abstract calculation. in earnings includes hosted their annual “Fabulous in Cannes” soiree. This higher taxable a 76 million euro, or sum…is a virtual figure we have never received, $107.7 million, extraordinary payment at Gado. Classified Advertisements.................................................................................................15 the result of a theoretical accounting exercise.” The personal allegations follow a separate TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS According to Dolce and Gabbana, the police criminal probe into supposed tax irregularities [email protected], USING THE INDIVIDUAL’s NAME. claims are based on “the mistaken interpreta- at the Dolce & Gabbana group, which WWD un- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 tion” of a regulation, which enables the tax au- derstands is ongoing. As reported last year, fis- FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. thorities to replace the sum actually paid with a cal authorities alleged in March the firm owed VOLUME 197, NO. 109. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with hypothetical market value. more than 125 million euros, or $175 million, in one additional issue in January, May, October, November and December, two additional issues in March, April, June and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division “This claim, far from offering an opinion of unpaid taxes and fines relating to Gado. The po- of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services the actual facts, describes only the interpreta- lice are understood to consider Gado essentially provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. tion of a guideline,” the statement read. “[The] a legal entity, allegedly used to avoid higher cor- Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. said allegation constitutes only an invitation to porate taxes in Italy. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian the [tax office] to examine the legal basis of that A spokesman for Dolce & Gabbana declined addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES thesis, and will translate in a payment request to comment on the matter. TO WOMEN’S 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 for Mr. Dolce and Mr. Gabbana only in case [the] — With contributions from Alessandra Turra 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild 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 Ittierre’s License With C’N’C Renewed that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT By Andrew Roberts The C’N’C contract renewal is the latest in a RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, series of achievements since Ittierre’s adminis- UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR MILAN — Things just keep getting better for trators Andrea Ciccoli, Stanislao Chimenti and ANY OTHER UNSOLICITED MATERIALS.
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