Daily Edition october 27, 2016 1

Kevin Plank Ralph Lauren

Greg Kelly Chuck Todd

WWD ceo summit Alexei Agratchev Reframing Fashion & Retail The second day of the WWD CEO Summit at the Pierre Hotel in New York on Wednesday addressed topics from Greg Petro the U.S. presidential election to the investing climate, the activewear market to digital influencers. On Tuesday night, the hotel’s ballroom was packed as industry executives and designers attended the first WWD Honors event, including the inaugural John B. Fairchild Honor, given to Ralph Lauren. For more, see pages 6 to 14.

Sid Gupta

Joseph Altuzarra, Norma Kamali and Marc Jacobs.

Scott Dahnke Riccardo Pozzoli

Daniel Lalonde Julie Wainwright Photographs by Patrick MacLeod Patrick by Photographs Best in class style, trends and looks from the front row of Fashion Week

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An Advertising Opportunity Issue: November 9 Ad Close: October 28 Materials: October 31

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FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] october 27, 2016 3

business Rykiel line and it is important to accel- erate and amplify that phenomenon by widening the offer for Sonia Rykiel and Sonia Rykiel Shutters repositioning the line at a more accessi- Top 5 ble price point,” Langon said. The house started lowering prices on certain key categories, such as knitwear, Trending Sonia by Sonia Rykiel for fall 2016 and the strategy was proving on WWD.com successful, he noted. ● The brand will reposition economic situation remains very compli- The executive emphasized that de its main line with cated and 2016 is also difficult. I hope to Libran had the full support of manage- the introduction of end the year with another sales increase,” ment and had demonstrated her affinity he said, adding that sales in its retail net- with the brand with her vibrant homage lower price points. work were down 1 percent year-to-date. to its founder during her latest catwalk Rykiel was one of the last remaining show in October, a little more than a By Joelle Diderich independent French fashion brands when month after Rykiel died following a PARIS — Sonia Rykiel is shuttering its the founding family in 2012 sold an 80 lengthy battle with Parkinson’s disease. Sonia by Sonia Rykiel diffusion line and percent stake to Fung Brands, an invest- Sonia Rykiel is also rethinking the laying off a quarter of its staff as it moves ment company backed by Hong Kong model for its children’s line, currently to reposition its main Sonia Rykiel line. billionaires Victor and William Fung. Now produced in-house, which previously The company plans to introduce lower known as First Heritage Brands, it is also relied on Russia for more than a quarter prices points to meet the demands of an the holding firm for Belgian leather goods of its wholesale revenues. Langon is increasingly competitive market. firm Delvaux and French shoe brand looking for partners to manufacture and Eric Langon, chief executive officer of Robert Clergerie. distribute the collection and hopes to Sonia Rykiel, said the firm was hit hard Langon said Sonia Rykiel had registered have a new structure in place by 2018. by the successive impact of the Russian losses continuously since 2013 and the In parallel, the company is in talks with financial crisis, the slowdown in con- new strategy was designed to return it to its longtime homewares partner Omilis sumer spending in Asia and the impact of profitability by 2019. “Today it is essential on the renewal of its license, following terrorist attacks on tourism to Paris and for the house to rethink and revitalize the company’s acquisition last year by the rest of Europe. itself,” he said. holding firm Soleanne. This has put the brakes on the house’s The brand will lay off 79 out of 330 Langon said Sonia Rykiel was keen to recovery following the arrival of Julie workers in departments including the develop its online presence. It is set to Fashion's de Libran, formerly one of Marc Jacobs’ design studio, back office and distri- expand e-commerce, currently available chief design deputies at Louis Vuitton, as bution. Workers’ representatives were in the U.S. and Europe, to Australia soon. Busiest artistic director in 2014. informed of the restructuring on Oct. 19 The executive is also toying with the idea Sonia Rykiel’s turnover nonetheless and the company has pledged to pro- of “see-now-buy-now,” though he noted Photographers returned to growth last year for the first vide assistance and training to help staff that its relative small scale was a hurdle. ● These photographers time since 2008, with revenues up 3 per- affected by the cuts. “This context of uncertainty is cent year-on-year, Langon said, without Sonia by Sonia Rykiel has four stand- incompatible with a business model that are some of the industry’s providing additional figures. alone stores and four corners in depart- requires such a long lead time, and I am legends — and continue to rank “This growth in revenues is not suf- ment stores, the majority of which will be trying to find solutions with my partners ficient today to guarantee sustainable shuttered by the end of 2017. — including wholesale customers — that among the busiest. growth for the house and its activities in “‘Sonia by’ is not delivering the will help that wholesale customer move the years to come,” he told WWD in an expected returns. We believe we are forward with us, which means finding ● Study: Ivanka Trump exclusive interview. “Unfortunately, the capturing a new clientele with the Sonia new ways to share risk,” he said. Brand Avoids Boycott By Consumers ● Jack O’Connell to Play business Lee Alexander McQueen In Film OTB Buys Paula Cademartori Brand ● Sonia Rykiel to Shutter Secondary Line, Lay Off ● The Italian-Brazilian designer A Quarter of Staff is known for her colorful collections of bags, ● Diane von Furstenburg shoes and accessories Talks Trump’s Mediocrity, that are made in Italy. Buy-Now Fashion and the

odd by Mark Mann odd by Power of Intention By Luisa Zargani

MILAN — OTB has a new brand joining its stable: Milanese accessories company Paula Cademartori. The Italian-Brazilian designer is known for her colorful collec- NEWSMAKERS tions of bags, shoes and accessories that are made in Italy, and have been spotted This Week’s Most on celebrities including Beyoncé, Lady Talked About Names Gaga and Jessica Alba. Financial terms were not disclosed. In Our Industry “Paula’s energy and positivity are con- tagious, and her products are high-quality and distinctive,” said OTB founder and president Renzo Rosso, highlighting the potential of the brand. “Within our group, she will continue to freely create innova- tive, ‘brave’ products, also thanks to the structural support we will provide her, Marc Jacobs Joseph Altuzarra and together we will create a new success story based on a unique identity and borderless creativity.” “This is an incredible opportunity of growth and development for my brand. A Paula Cademartori bag. For me Renzo is not only a great entre- preneur but also an inspiring figure,” said are evaluating some opportunities,” she 2015 with net profits down 36 percent to Cademartori. said, adding that no contract had been 3.5 million euros, or $3.8 million, from Two weeks ago, an OTB spokeswoman signed yet. 5.5 million euros, or $7.3 million, in 2014. Norma Kamali Chuck Todd told WWD that the brand was on the OTB controls the Diesel, Maison Mar- Revenues rose 1.9 percent to 1.59 billion radar of the Italian group. “We confirm giela, Marni and Viktor & Rolf brands, as euros, or $1.76 billion, compared with that as part of our regular scouting activ- well as manufacturing arms Staff Interna- 1.56 billion euros, or $2 billion, in the

van Falk; T Falk; E van by Apple; Kamali Justice by Altuzarra RE X/Shutterstock; B FA.com/ by Jacobs Khateeb; Virginie by photograph Photographers ity of interesting brands for the group, we tional and Brave Kid. The group closed previous year. october 27, 2016 4

beauty Sephora France Launches Brands Online

● Eugene Perma, BaByliss, The Percy & Reed hair line is on the Bronz’Express and Color Me docket, too. Its directors laud Sephora’s Internet strategy. “Who doesn’t shop are among such labels now online now? And if you have the added sold exclusively on the site. bonus of education, how-to’s and imagery that we’ve been working on, it’s incredi- By Jennifer Weil ble,” said Adam Reed, a founding partner and director of the label. PARIS — Sephora France is spinning its While Sephora France’s exclusive web strategy in a new direction, now online program today registers just a small launching some beauty brands exclusively percentage of sephora.fr’s overall sales, on sephora.fr that haven’t been introduced it is a growing share and — importantly — in its stores countrywide. allows the retailer to test how brands are The reason for the approach is twofold, received and bolsters its visibility on social according to Stephane Delva, marketing networks, since those products address a director for Sephora Europe and Middle savvy consumer. “When they are success- East. “There is a growing appetite from ful, we can launch them after in brick-and- our consumers, who are more and more mortar stores,” Delva said. connected through their smartphones Sephora France is A case in point is the Dafni brush that and have an increasing view on what’s hot launching beauty brands straightens tresses, which was debuted on outside of France. So we really want to exclusively on sephora.fr. sephora.fr. “It was such a huge success on feed their appetite for new, exciting brands the Internet that now it will hit our biggest and products,” the executive explained. extended assortment.” Becca Cosmetics in early September doors in Europe,” she explained. “The “The second reason is more of a business Among the beauty brands introduced launched on sephora.fr some of its best- most successful [stockkeeping units] will objective, which is we have a strong will to online since August with the “Exclu Web” sellers exclusively in France, then at the go to all of our countries.” accelerate our e-store, and this is definitely appellation, which appears under the end of that month introduced the Becca x The executive said sephora.fr is a good a source of opportunity.” product information listed online, are Jaclyn Hill palette in the retailer’s brick- platform for selling a wider range of some A specific team of merchants was Tweexy, the wearable, ring-like nail-polish and-mortar doors there. of the most successful brands already found created to focus on such offers. “They are holder coming in three bright shades; Bye “It’s a good way to keep momentum and at Sephora, as well. The retailer already really searching the web globally for what Bye Racines, the temporary hair-colorant buzz going,” said Kerry Cole, global style sells exclusives online in markets like the are the hot and growing brands in terms sprays for concealing roots between color director at Becca. “It’s kind of like this slow U.S. “The sky is the limit” to what can be of excitement,” said Delva, adding also of treatments, and Nudestix, the makeup rollout. So people are itching for more.” done with the strategy, according to Delva. interest are items and labels to fill some line focused on easy, natural beauty. Other Online exclusives upcoming in Novem- Meanwhile, she points to how sephora. new product segments at the LVMH Moët labels include Eugene Perma, BaByliss, ber are labels such as Steamcream, whose fr keeps bulking up other services. Right Hennessy Louis Vuitton-owned chain. Bronz’Express, Color Me and Hapsatou Sy. formula is made with an 18th-century before summertime, for instance, it “For instance, hair is a category for “We were out of stock in two weeks,” French steam technique to fuse together debuted a section called The Beauty Board which we don’t have a lot of space in our said HCS general manager Chiara Sor- 12 ethically sourced natural, hand-blended for photo sharing. “It’s fed by our con- stores today,” Delva said. “So we will mani, referring to the skin-care brand actives. The skin-care products with a light sumers, and also by some of our beauty expand our assortment. Tools is a category she founded, FaceD, boasting immediate texture come in limited-edition tins with advisers in the stores,” she said. “It really that we definitely want to bet on for this results. eye-popping graphics. gives a face to the community.”

beauty her show’s format to a leisurely tutorial, with ample time for gossipy digressions, tips and tricks. “They see something I did Nudestix, Dr. Dennis Gross to Help on Beyoncé and they want to know how I did it, and I can enjoy taking my time with that — and I’ve had a long career. Not that I Grow Millennial Beauty iQ Audience kiss and tell, but I have a lot of stories.” Education in the form of tutorials and ● The new beauty-only channel executive officer of QVC Inc. He also noted how-tos — effectively a play on the vlogger from QVC will allow brands to that the channel will serve as a platform phenomenon — will play a key role on on which to launch burgeoning Indie lines Beauty iQ, from QVC’s new brands like move product in a talk-show- with a bigger presence than they normally Nudestix to lines that have been on air for like environment, with a focus would have on QVC. years, like Mally Beauty and Laura Geller. on social media. “It’s like YouTube meets beauty morning “We call Laura the OG blogger,” said show that is fun and interactive,” said Elana Drell-Szyfer, ceo of Laura Geller. By Ellen Thomas Jenny Frankel, cofounder and ceo of “Every time she goes on-air, it’s like a Nudestix. Though Frankel appears on QVC master class.” on behalf of the brand, her 20-year-old On the skin-care side, Dr. Dennis Gross QVC’s Beauty iQ is angling for the daughter Taylor — she and sister Ally are Nudestix’s Discovery Kit for eyes. plans to tell his own stories. To appeal to attention of Millennial shoppers — and the other Nudestix cofounders — will front the Snapchat crowd through his one-hour to accomplish that, it is placing much of a recurring one-hour show on Beauty iQ, “We’re going be talking about Nudestix, Beauty iQ show, he’ll delve into the details the creative direction in the hands of its beginning Nov. 18. but also what are the upcoming trends and of the skin concerns he said plague Millen- vendors. “We want to make the show feel authen- have guest hosts — beauty influencers who nials most — early signs of wrinkles and The new beauty channel will launch tic and organic,” said the younger Frankel. aren’t so perfect or coiffed,” said Taylor. hyperpigmentation, acne, large pores, for Oct. 31 with a slew of brands already “QVC is really more produced and it’s She’ll also wear her own wardrobe, which example — and talk about what products to under the QVC umbrella, including It Cos- about selling, but we want to make this she said consists of on-trend items like use to solve them, all while demonstrating metics, Tarte, Givenchy, Dr. Dennis Gross, very relatable.” To that end, Frankel plans plaid shirts and rocker Ts and style her on real models. Nudestix, Tatcha, Peter Thomas Roth, to focus on education around beauty own hair, which she described as, “I just “It’s a lot like my practice in a way,” Mally Beauty, Edward Bess and Laura trends, new products and tutorials — “but woke up like this.” he said. “It’s selling through giving more Geller. And while the lines featured are also being funny and showing personal- “That’s what’s successful about YouTube knowledge to the consumer,” said Gross. familiar to QVC, the new show formats— ity” — to make the show feel more like real and Snapchat — that authentic, no-filter “That’s different than what we do on individually developed with the authen- entertainment, and less like a traditional aspect to it,” said Frankel. [QVC].” ticity of each brand in mind, and social shopping show. Mally Roncal, founder and president of In recent years, Gross has observed an media feeds integrated into broadcast In lieu of focusing on value-driven deals Mally Beauty, uses social media as a way to escalation in younger patients visiting his — will be unchartered territory for QVC, and a sense of urgency to buy, the brand connect on a personal level with younger Manhattan practice who are interested in as the company abandons its hard-sell tac- will turn to social media to drive home consumers by sharing no-makeup selfies taking a preventative approach to skin- tics in favor of a more organic process. selling points for products. For Beauty iQ, and snapshots of life at home with her hus- care. It’s a phenomenon he’s not seen with “We want to [create] this immersive the brand created product bundles such band, kids and dogs. Her hourlong Beauty the older generations, and he attributes experience [and] get out of the rules we as the Discovery Kit for eyes and a nude iQ show, she said, will allow her to deepen that to the curious nature of Millennials. have to follow on the big 24-7 channel lip kit, both designed based on how-to the girlfriend-to-girlfriend relationship “This group wants to know the story and give this a much more personal content Frankel will demonstrate on the with her followers. behind this — why do we have skin condi- experience integrated across platforms,” show. But it’s not just product Frankel will “I’m able to teach them on a completely tions? How do ingredients function? How said Mike George, president and chief be talking about. different level,” said Roncal, who likened does the product work?” said Gross. october 27, 2016 5

business Coalition Calls on USTR to Put Alibaba Back on Counterfeit List ● The AAFA and others are criticism on Wednesday and outlined the “Notorious Markets” list in 2012, but released by the end of the year. imploring U.S. officials to steps it has taken and continues to take to brands said they continued to see the wide- “Alibaba’s marketplaces employ work with rights holders and target coun- spread sale of counterfeits on its platforms. ever-more-rigorous, user-friendly and increase oversight of the web terfeits on its platforms. The agency issued a strong warning to state-of-the art systems to deal with sales giant’s commitments to crack The broad coalition of industry groups the company in a pair of reports last year, of potentially infringing items,” she added. down on counterfeits. and the AFL-CIO has asked USTR to re-list essentially putting it on notice to immedi- “Over the past year, more rights hold- Alibaba’s platforms on its “Notorious ately address rights-holders’ concerns. ers are successfully participating in our By Kristi Ellis and Tiffany Ap Markets” report. “During the 10 months since USTR programs, more brands have joined our “We are encouraging this step because of published this report, Alibaba has made a platforms and are working with us on our American Apparel and Footwear Associ- the enormous number of counterfeits that number of statements acknowledging its anticounterfeit efforts, and more counter- ation president and chief executive officer persist on Alibaba platforms, most notably counterfeit problem and public commit- feit products are being taken down and Rick Helfenbein had fierce words for Alib- Taobao, but also on other platforms such ments indicating that it will improve the proactively blocked from ever making it to aba Wednesday. as AliExpress,” the groups wrote in a letter way it runs its platforms to address that our marketplaces.” Speaking at the American Chamber to Probir Mehta, assistant USTR for innova- problem,” the organizations said in their The company said the number of regis- of Commerce in Hong Kong, Helfenbein tion and intellectual property. complaint. “Alibaba has also made a num- tered brands participating in takedowns called Alibaba’s response to the organiza- “We take counterfeits very seriously ber of high-profile hires and is reportedly is up 70 percent year-over-year, while the tion’s complaint over fakes the “stupidest because of the damage it causes our spending more resources to tackle this number of takedowns has doubled as a defense I’ve ever heard a company make” member companies, international workers problem and explain its effects in Wash- result of rights-holder submissions and and said the Chinese company “needs and U.S. consumers. To date, Alibaba has ington and around the world. While this the number of preventative measures has someone to call them to order.” not fixed this problem,” said Helfenbein. increased attention is a welcome devel- “dramatically increased.” AAFA representatives have repeatedly “Every day we read about Alibaba’s contin- opment, we have seen little evidence that The company said it takes down or pre- lashed out at the e-commerce giant during ued global expansion. While this is great there has been any noticeable change on vents 25 counterfeit listings for every notice speeches and public appearances. for their shareholders, we are deeply con- the Alibaba platforms themselves.” that rights holders submit. “We have a saying in America since 2008: cerned that they have not been as proactive An Alibaba spokeswoman said in an The “Notorious Market” report high- too big to fail,” Helfenbein said. “What is on counterfeits as they could have been. e-mailed response Wednesday that the lights by name online and physical mar- Alibaba? Too big to have control? That’s the They have not taken all the necessary steps associations’ criticisms outlined in the ketplaces that “reportedly engage in and stupidest defense I’ve ever heard a com- to prevent, significantly reduce or totally letter “are vague, not fact-based and fail facilitate substantial copyright piracy and pany make. We’re so big we can’t control eliminate the issues that have been raised.” to recognize the tremendous progress that trademark counterfeiting.” ourselves. Oh yeah? Watch out. Because The organizations said Alibaba has failed has been made to date and will continue The list does not represent findings of we’re not going to let this die. We’re not.” to carry out the steps that USTR outlined in to be made on anticounterfeit efforts as legal violations or reflect an analysis by Back in Washington, the AAFA and 17 its 2015 report. That included simplifying outlined in our USTR submissions.” the U.S. government of general intellec- organizations filed a new complaint with Taobao’s processes for rights holders to The Internet giant submitted more than tual property protections or enforcement the U.S. Trade Representative’s office register and request enforcement action, 60 pages outlining what it said are not only activities in a country. Instead, the study over counterfeits sold on Alibaba’s online making Taobao’s “good faith” takedown the new programs targeting counterfeits is aimed at prodding foreign governments platforms, urging the agency to step up its procedures more available, and reducing today, but also its future plans working to address intellectual property allega- scrutiny of the Chinese e-commerce giant Taobao’s timelines for take-downs and with brands in two separate filings to tions raised, intensify efforts to combat and relist it on a counterfeit watch list. imposing penalties on counterfeit sellers. USTR, which is taking public comment piracy and counterfeiting and pursue legal Alibaba defended itself against the USTR removed Alibaba from its for its Notorious Markets report set to be actions where warranted.

fashion popular in the denim market — Levi’s offers an array of those silhouettes, too — Cheung said the skinny jean is here to stay. “It’s Levi’s Unveils New basically the new normal,” he said. “It’s really good for showing off your footwear, whether sneakers or flat sandals or a pair of wicked 501 Skinny Jean heels. It’s very versatile. With the 501 skinny, it’s this new type of ● The latest addition to the comes with a button-fly and a nos- skinny: It’s not a stretchy jegging; 501 family, set to reach talgic, slightly distressed look. it’s something in-between.…We see Jonathan Cheung, Levi’s senior this movement and desire for addi- stores and levi.com in vice president, global head of tional choices beyond the jegging December, is offered for design, said the second most type of skinny.” men and women. requested alteration in Levi’s stores The reworked denim craze — a was a tapering of 501 jeans, so the trend that brands such as Vete- By Kristi Garced launch of the 501 Skinny was a rela- ments, Off-White and Los Ange- tive no-brainer. les-based Re/Done denim brand The Levi’s 501 family is growing. But don’t call it a jegging. “It’s continue to bank on — was another Levi’s heritage 501 jeans have as skinny as it relates to a 501, impetus behind the launch. been remastered in multiple but it’s not like a legging. It’s not “We’re taking the guesswork out iterations throughout the brand’s superelastic or stretchy; it’s just a of buying a pair of vintage Levi’s 140 years: Last year, there was the very slimmed-down 501,” Cheung and going to a tailor, or paying launch of the 501 CT, cut with a explained. “The women’s fit is a hundreds of dollars for a designer tapered leg and a roomier waist high-rise — not too high — and hugs pair of re-worked Levi’s,” Cheung and stretch styles were introduced the hips. It has that magical inverted said. “That some brands can take in September, an update that took heart shape at the back, so it lifts an old pair of Levi’s jeans that a year-and-a-half of fabric devel- you up, and it’s snug through the have already had a life, add their opment to produce. (Levi’s 501s sides, tapering down to the ankles.” own touches on it, and resell it have historically been staunchly The women’s style will be offered on for much greater value than nonstretch.) in two types of denim — Levi’s the original pair....I think that’s The newest addition, set to hit traditional, nonstretch denim and an incredible testament to the stores and levi.com in December, the new shrink-to-fit stretch denim, longevity of Levi’s,” Cheung said. is the 501 Skinny, offered for men which has a little more give, but “And a testament to sustainability, and women in a variety of vintage isn’t skintight. upcycling, fashion relevancy and washes ranging from $78 to $168. Though wide-legged silhouettes the kind of affection people hold The new Levi’s 501 Skinny. Keeping true to 501’s roots, the jean and cropped flares have been Levi’s in. We’re flattered.” october 27, 2016 6

WWD CEO Summit Reframing Fashion & Retail Political shifts, taking on behemoths and the changing role of influencers were among the topics as the annual summit came to a close.

● Under Armour’s We still make shirts and shoes the same way we did 100 years ago. Think about Kevin Plank on How how slow our industry has been. It takes 300 sets of hands to make a single pair of To Grow a Megabrand athletic shoes. It means we’re chasing labor Over the past 20 years, Under Armour all over the world. What are we going to do has carved out a niche in the activewear if Apple and Samsung decide they’re going field by staying true to its mission to make to start making T-shirts and shoes? And if athletes better. With sales expected to they did do it, what would it look like? Let’s reach $5 billion this year — and a goal to not get caught flat-footed. Let’s do it before grow to $7.5 billion in two years — the Bal- them. When I walk into an Apple store, it’s timore-based company is the third-largest easy. I get my digital life solved. And so the activewear brand in the world behind Nike aspiration we have for our brand is, “how and Adidas, and its reach has stretched do we solve your physical life?” The most beyond men’s activewear into women’s important aspect in all our lives we know wear, footwear and most recently, high- the least about: our personal health and end sportswear with an active twist. Here, fitness. I don’t think anyone has cracked Under Armour founder and chief executive this code yet and it’s an opportunity for us officer Kevin Plank sits down with WWD that led to our acquisition of several apps. editor in chief Edward Nardoza to look We have over 190 million registered users back on what made the brand so successful on our four apps. I don’t think wearables and reveal his vision for the future. “I want to build the biggest, baddest brand on are the only answer, but measuring is Edward Nardoza: You have one of incredibly important. I think there’s a role the most dramatic success stories this the planet — that’s the ambition we have.” to [know] your physical self better and do it industry has seen in the last 20 years. — Kevin Plank, Under Armour in a stylish and beautiful way. But yesterday, you reported a profit gain E.N.: Talk a little bit about your Inno- of 28 percent and a revenue jump of 22 vation Lab in Baltimore. percent, strong growth in footwear, and K.P.: Four years ago, we ran out of space you still got whacked by the Street. Why so we’re not banking on that. But we’re can be. We see this massive opportunity in in our current headquarters. I personally do you think that is? Is it just the rules going through one of the biggest shifts in the lifestyle and thought we should do some- decided we needed a bigger house, so I of the game or is it not fair? way consumers dress — on a professional thing bold and aggressive. It’s a very small began buying real estate and through 14 Kevin Plank: Look, life’s not fair. We’ve basis especially. So we see a mass oppor- allocation, which is what it should be, but it transactions and 47 parcels of land, we been in the deep end of the pool for a long tunity for product that looks great and is positions us for 2017. And what any one of were able to assemble 266 acres right time. We’ve been a public company for 11 stylish. But what makes us authentic and us in product knows is that version two is under I-95. We’re going to anchor with a years and yesterday we reported our 26th relevant is that our product actually does always better than version one, so you’ll get 50-acre Under Armour campus. [Part of consecutive quarter of 20-plus percentage something. I attended the Super Show in that constant kind of innovation from us. that includes] the Under Armour Light- topline growth. We’re only one of two com- Atlanta in 1997 — there were 13,000 booths E.N.: What kind of a hit was the house that is 70,000 square feet with an panies in the S&P 500 that can make that and I remember sitting in my 10-by-10-foot Sports Authority bankruptcy and how innovation center. We’re effectively going claim and the others are tech and pharma, booth. I looked around at all these com- do you make up that business? to grow our business by 50 percent over so doing that in the consumer space is panies trying to be brands just like us, and K.P.: We’re constantly trying to open the next few years and of the 150,000 new pretty rare air and something we’re really thinking, “Why are we going to win and the aperture of the brand and how people jobs we’ll generate, how many of them are proud of. One thing about being public for they won’t?” It comes down to the human, see us. In sporting goods as a whole, pegged to come back to the United States, 11 years is we’ve learned a lot of lessons. the entrepreneur, the team, but also the from 2008-09 to the end of 2015, there [even though] 85 percent of our business is You have to do what you say you’re going to differentiation of your product. What made were fewer than three companies that being done in North America? Effectively do. Look, I enjoy being a public company, Under Armour is not a fancy slogan. We bankrupted with a total of $170 million in zero. How can we not bring 100, 1,000, we gave a current outlook of less than $5 spent our first five years convincing people revenues — and we were doing a fraction 10,000 jobs to a hard-working, blue-collar billion in revenue this year and we reaf- our name was not Armour All or underarm. of that with them. But in just the last city like Baltimore? We just received $600 firmed the fact that by 2018, we’ll grow to a As we developed, it was the DNA of our 12 months, we’ve had three additional million in tax incentive and financing from $7.5 billion brand. This doesn’t come cheap. product [that set us apart]: it kept you light, bankruptcies that accounted for close to $4 the city to build the public infrastruc- Our industry is very competitive with a lot it kept you cool and was better than these billion in revenue in our industry. One of ture. We think we can build a new front of really good established players and the soaking-wet gray cotton T-shirts. These the lessons you learn is you never bet the porch for Baltimore. The expectation that ones we compete against are 46 and 62 snug, tight-fitting shirts that were essentially whole company on any one partner. Five consumers are going to have [in the future] years old, respectively. This year, Under women’s underwear are what we put on or six years ago, Dick’s would have been 20 is so much higher than it is today. Share- Armour turned 20 and we’re still building a athletes in the early days. But when you percent of our business, but it’ll be roughly holder value will not be the only metric. lot of infrastructure, process, systems and put your hand in your T-shirt drawer, there less than 10 percent this year. We all have I believe we’re all going to have some our team. Today, we’re the number-three was nothing else that felt like it. And more to be constantly ready to deal with the requirement to make the world a better global brand in the world. Twenty years important, it performed differently. As we changing landscape of our account base, place. I want to build the biggest, baddest ago, we got dropped into a snake pit and move to this next chapter of authenticity — our consumer base and how we deal with brand on the planet — that’s the ambition there were probably 25 or 30 other snakes sportswear — what we did with UAS is put them. The dollars are still available, you we have. But in doing it, there’s also the and here we are, the third-largest in the a flag really far out in the ground. How do just have to be more clever in how you’re ability to make our city a part of that. world. Yesterday, one of my largest custom- you make a great travel blazer or khaki pant going to find those dollars again. E.N.: Did you read Phil Knight’s book, ers, Ed Stack of Dick’s Sporting Goods, sent that you can spill on and it wipes right off? E.N.: How about the importance of “Shoe Dog,” that came out last year? me a text, the same one he sent me about If we had our druthers, the Under Armour your own stores versus wholesale? K.P.: No. I read the unauthorized one, seven years ago when our stock got hit after vision would be to put dry cleaners out of K.P.: In 2019, we’ll be moving into what “Swoosh,” in 1996. I took notes the whole an earnings call. It was very simple and business with great, stylish, beautiful prod- we think is the definition of “flagship.” time. The reason it was unauthorized is short. It said: “Kevin, some days you’ll find uct that is wearable and workable and that’s We’ve taken the old FAO Schwarz space — that their founder said he didn’t want to you’re the bug and some days you’ll find beyond ambitious. Lifestyle is something it’ll be 50,000 square feet and our vision is give anybody else the blueprint for how you’re the windshield.” our two chief competitors consider roughly to build the greatest retail store in the world. to build a company. I think if there’s one E.N.: How do you maintain authentic- a third of their businesses, so around $15 The ambition we have is large and we think person in the world they wouldn’t want ity and still grow in the lifestyle space? billion in revenue. We think lifestyle sports- we can do something pretty dynamic. It’ll be reading that book, I’m that person. Because K.P.: Ben Pruess, who is running our UA wear is a massive opportunity for our brand the heart and soul of a physical experience of the book, I was inspired, so every year I Sportswear division, is a brilliant guy who and we’ll continue to press this trend for that will involve digital, media and how the used to write a holiday card to the founder came from one of our chief competitors and ath-leisure and it’s our job to lead. consumer wants to transact with us. of our chief competitor. “Dear Mr. Knight, built the [Adidas] Originals business into a E.N.: Was that the rationale for the E.N.: Do you think “dual brain”: you don’t know who we are, but you will multibillion-dollar brand. We have authen- collection? there’s physical retail and digital or is someday.” I didn’t think they got there, but ticity and credibility on field and we can K.P.: UAS is really about fashion and it one organic whole? I did it out of spirit. Then in 2007 or so, he all sit here and debate how long women’s being premium and the idea for that is to K.P.: The reason we’re doing that store is said somewhere that he got the cards and

All photographs by Patrick MacLeod Patrick by All photographs tight-fitting spandex pants can be accepted, set the tempo of where we think the edges to put a flag out there for our product team. they pissed him off. — Jean E. Palmieri october 27, 2016 7

● Chuck Todd on the he said. “Let’s see what happens, what Fox News looks like in a year, who is the big face “I think the two political parties are going to End of Fox News, of it. There’s clearly turmoil there a little bit. reorganize themselves on economic issues, Trump and the There’s a lot of symbolism in that moment. It could symbolize a changing of the guard not on social issues. The cultural wars have Question He Dares at Fox. It could symbolize a changing of the guard inside the Republican Party. It can essentially ended in the last month.” Ask Hillary Clinton symbolize a lot of things. The point is that I think it is a moment that will help explain — Chuck Todd, NBC Chuck Todd doesn’t want to call the what happened in the election.” election over, but there’s little doubt in Turning to the Republican presidential his mind that Hillary Clinton will be the nominee’s surrogates, Todd offered: “It the sort of populist movement examining Uber is “not even a great job,” as the com- next president. does feel like anyone who is associated capitalism that was ignited by Sen. Bernie pany’s ultimate objective is to use “driver- Todd, host of “Meet the Press” and with Trump is not going to leave with their Sanders (D., Vt.) on the left, which Trump less cars” without workers. political director of NBC News, said: “At reputation intact.” has “stumbled onto” in his own party. “These trade deals scare the bejesus out this point, there has to be some event we And while nasty politics aren’t new for Ironically, the journalist noted that Clin- of these people,” Todd said, who added don’t know about to change the trajectory our country, Todd did admit that there ton, a centrist democrat, may share more that ironically, changes in the manufactur- of this race.” have been some new lows this election. “world views” with House Speaker Paul ing industry are “not new.” The country Calling November “election month,” He pointed to the second debate, in which Ryan than she does with Sanders and the moved manufacturing from the north to Todd said, 10.5 million people have already Trump brought out former President Bill left wing of her party. the south in order to find cheaper labor, voted early and that 40 percent of the elec- Clinton’s accusers. Todd took it further to draw the and then it began looking abroad to Asia, torate will have voted before Nov. 8. “Everything Trump has touched — it parties in terms of internationalists and he noted. “I’ve always been careful to say it’s feels like we are all sullied by it. We in nationalists. “It is not a new thing. I think the prob- never over till it’s over, but it’s very, very the press, our political infrastructure, the “There is more and more of a global lem is, we don’t know what work looks like structurally difficult,” he told WWD editor debates,” he said. “Publicly humiliating a [mind-set]. The business community thinks in 20 years,” he said. “That’s what’s scar- in chief Edward Nardoza, who interviewed former president of the United States, that globally, many political leaders think glob- ing these folks. The people in power see Todd onstage Wednesday morning. is what third-world countries do.” ally, so you’re going to have the internation- that it’s inevitable, but we need to figure Still, should Donald Trump pull it off, But there is an anger, a rage in the alists in one party, and the folks who say, out the future of work for these people.” Todd said it would “be a seismic event” country that Trump — like him or not — has ‘let’s slow down.’ They’re not saying they Todd said in Clinton’s America, she may that would rattle the international commu- tapped into. are anti that, but borders still matter,” he have some difficulty moving the needle nity and the “country’s psyche.” Todd explained that Trump is an said. “Parties do evolve, we know this.” once in office, as she may be pushing up Todd didn’t spend much time mediating outsider, a “Queens guy,” who has always In his view, America’s main political against her own party. on that and instead addressed the bigger wanted to be accepted. parties are in for just that kind of evolu- “Her problem is going to be the left. question he and his colleagues are looking “I do think that’s why he has genuinely tion, with one - probably the Democrats WikiLeaks is going to haunt her for years,” to answer, namely the election’s impact on connected with the working class in this - becoming the internationalist party and Todd said. “She is an uneasy progressive.… the country. country,” he said, recounting an expe- the other becoming the isolationist party. She has a progressive mind-set, but she’s “What’s the collateral damage? That’s rience in 2015 in which he met a Trump Asked about the Trans-Pacific Partner- politically battle-scarred….She won the what we’re trying to figure out,” he said. supporter at a state fair. ship issue that has been “lighting up this primary but lost the campaign.” “What’s the collateral damage to our “This one guy said, ‘I know exactly who campaign” and the fact that the economics Those scars have made Clinton a democracy? What’s the collateral damage he is. He’s kind of a blowhard and this of the plan can make sense for the country tougher interview than Trump, Todd to the Republican Party? What’s the col- stuff, but he’s my middle finger to you,’ if one thinks globally, Todd responded that admitted, as she’s wary of being caught in lateral damage to whoever wins and their meaning media, the political establish- that’s not what workers in the middle of a “trap.” With that in mind, there is one ability to govern?” ment, Washington,’” he said. the country are thinking about, as jobs are lingering question that the journalist has Before delving further into the race, But there’s a bigger moment at play, he getting shipped abroad or once-thriving avoided asking the democratic nominee Todd addressed Trump’s impact on the said, a moment of upheaval, which may industries are shrinking in smaller states. about her marriage to former President media, namely Fox News, in light of the lead to systematic change in the Demo- “You’re making a great rational argu- Clinton and the fallout from the Monica aftermath of former chief executive officer cratic and Republican parties. ment on the global stage. These people are Lewinsky scandal in the Nineties. Roger Ailes’ exit and his current work on “I think the two political parties are wondering what’s the future of work for “I have always wanted to ask her a Trump’s campaign. going to reorganize themselves on eco- me,” said Todd. “That’s what makes this question and I’ve debated whether to ask it Todd was asked about the takeaway nomic issues, not on social issues,” he presidential election so disappointing in because I don’t know if it’s relevant,” Todd of Tuesday night’s widely publicized said. “The cultural wars have essentially that one of the reasons for this anxiety, we said with some hesitation, before revealing skirmish between Trump supporter ended in the last month.” are going through this haves and have-not. the question: “When did you forgive him? and former speaker of the House Newt He referenced the governor’s race in I’m very concerned about this sort of split. “Is that me as a voyeur. Is that any of Gingrich and Fox News anchor Megyn North Carolina, in which a key issue is the You see it geographically, you see it on the my business? I’ve not asked her that ques- Kelly, in which Gingrich claimed she was “bathroom bill,” which concerns whether coasts. Things are booming in cities. In tion because I’m not 100 percent con- “fascinated with sex” after she referenced transgender people will be made to use middle America, in sort of this small city, vinced that it is,” he said. “I don’t think Trump’s sexist comments. bathrooms that correspond to the gender big-town America, they don’t know what it’s something you do in a political cam- “We may look back at the Newt Gingrich/ on their birth certificate. the future of work is.” paign. It is about their personal life and Megyn Kelly, that little appearance, and say, While Todd anticipates the Democratic He noted that “Ubers are not showing they’ve lived it publicly and I don’t want that’s when the Roger Ailes Fox News died,” candidate winning that race, he pointed to up” in those towns and that working for to judge that.” — Alexandra Steigrad october 27, 2016 8

“I started to think about these Millennials I’m having to hire and are they going to want to sit behind a sewing machine? No.” — Norma Kamali

● “You’re just washed with a warm feeling message versus the immediacy of the Inter- Real Talk From “You have to address of, ‘wow, I love this. I love this moment. net. “E-commerce is huge and it’s growing Norma Kamali, the changing way I love everybody in my sample room. I faster and faster,” she said. “People are never want them to leave me.’” But they spending more and more money online for Marc Jacobs, people are consuming, do leave and increasingly being replaced garments and they will pay a lot of money Joseph Altuzarra with Millennials who have less hand-craft for what they see you’re selling online and but I don’t think it’s a skills because that’s becoming a lost art. “I trust it because they know your brand.” “The Future of Clothes” was supposed started to think about these Millennials I’m She said she never buys shoes in a store to be the topic for the closing session, a hindrance.” having to hire and are they going to want anymore, but prefers to order 10 pairs roundtable conversation between Marc — Joseph Altuzarra to sit behind a sewing machine?” Kamali from all different places and try them on in Jacobs, Norma Kamali and Joseph Altu- said. “No. Is the Millennial in China going the comfort of her home, sending back the zarra, led by WWD’s executive editor Brid- to want to sit behind a sewing machine? ones she doesn’t want. get Foley. Instead it turned into a sprawling within his work but that it seemed totally You know what? No.” “I’ve never bought anything online,” and lively discussion on the current reali- plausible within the sports arena. “I can Thinking about who and how the clothes Jacobs said. “I bought a pair of [Christian] ties of being a luxury designer with some imagine Nike creating a line of clothing would be made inspired her to experiment. Louboutin pumps for Halloween in a 41 very strong opinions on a range of issues that would help you run faster or give you She created a line that was made entirely from Barneys because I wasn’t going to and concepts — new and classic — that have your vitals,” he said. “But I struggle to find without sewing machines. “Can I be go to Barneys to try them on….I didn’t become industry obsessions, among them a place for that within the traditional sense creative? Can I still have that wash of good actually do it, [my assistant] did it. I like technology, e-commerce, see-now-buy- of designing clothing.” feeling by doing it in a different way? “ she going to a store. That Chanel bag I’m now and “modern.” Asked if he thinks incorporating technol- said. “Well, it’s different. It’s not exactly the carrying I bought last Saturday in the The question about the meaning of ogy into fashion is a gimmick, Jacobs said same, but it is what the future is about.” boutique. I like when they bring you coffee “modern” in relation to clothes kicked he simply doesn’t think about it at all. “It’s There was no avoiding the subject of and you see people spraying perfume. things off. “I think timeless style is just not my interest. I’m not saying it’s not see-now-buy-now. Altuzarra brought it up in I’m an old-fashioned person who learned modern, and feeling good and relevant is valid. I like to take vitamins. I like to go to relation to the appreciation of craft, which is to go shopping with his grandmother at modern,” Kamali said. “I think modern the gym. I don’t need my sweatpants to tell what he said his business comes down to. “I Bergdorf Goodman. I don’t want to sit in can also mean what the future can look me I’m not running fast enough. My trainer go to trunk shows and meet customers,” he front of a computer screen and I certainly like for clothing.” does that….With all due respect, I’ll have my said. “They go in a fitting room and whether don’t want to look at my phone any longer “Part of it is being mindful of your leather jacket just shut up and do nothing.” it’s see-now-buy-now or it’s they have to wait than I have to.” audience and how people are living, what Altuzarra, who, as it was pointed out, six months, if they put on a $3,000 dress But he admitted he isn’t a techie by any the cultural moment is and how you’re was the panel’s token Millennial, also shot and they don’t look good or they don’t feel means. “I only started tweeting two years speaking, too,” Altuzarra said. down the notion of incorporating technol- good or they don’t feel like it’s worth the ago and ended up sending photos of my And from Jacobs, who happily played the ogy into the design process with the excep- price, they’re not going to buy it.” ass all over the Internet,” the designer said role of antagonist for much of conversation: tion of production and manufacturing, Jacobs doesn’t buy the hype of instant to laughter. “Tech is not my friend.” “I hate the word modern so much. I have no noting that developments in machinery — fashion. “I’ll wait six months for some- Altuzarra is less of an extremist. He shops idea what it means. I look around and most for example, a machine that creates seams thing that I want and I’ll pay a fortune online and in stores. “You have to address people I see wear dresses made out of fabric through ultrasound technology — makes for it, but I wouldn’t give a dollar for the changing way people are consuming, with two sleeves or no sleeves or whatever. new fabric techniques possible. something that’s available today that I but I don’t think it’s a hindrance. It doesn’t I understand the idea of a modern lifestyle, The panel then moved on to “the don’t want,” he said. “I’d rather wait for make me not create,” he said. “I think the but modern clothes — something tells me fashion of fashion,” and the designers something. That’s what fashion is to me short attention span and the desire for new that fashion people think it’s abstract.” were asked if they felt design has become and I don’t want to sound so belligerent all the time is more of a hindrance for me.” Reminded of a comment made years downplayed or secondary to all the noise and negative, but I don’t think one can be The discussion ended on the topic of ago that “unless clothes wash the dishes, about buy-now, schedules and production everything to all people.” what keeps the designers passionate about they’re not modern,” and that we’re cycles. Kamali said yes. “I think we’re in As for what the biggest challenges of their jobs — they all agreed that they love starting to see clothes that have more than a time where fashion is out of fashion,” designing today are, there wasn’t a consen- making clothes, before there was a lone one function, Jacobs responded, “Where? she said, recounting a moment two years sus or necessarily any linear thought pro- question from the audience: “What do you Show me.” ago when she felt like her identity as a cesses. Kamali brought up confusion in the think of women wearing yoga pants every- Kamali was a little more game for the designer was being challenged. “I love industry in terms of schedules, and also the where,” said a woman from Greenwich, concept, talking about the possibility of draping, I love making patterns,” she said. old-school traditional see-and-wait shopping Conn., who appeared to disapprove of the garments for babies that give feedback practice and apparently missed the outrage about their vitals or clothes that potentially last week after a man in Barrington, R.I., deliver vitamins from the fabric to one’s wrote an open letter to his local newspaper skin, or even clothes that could protect in “I don’t need my sweatpants to tell me I’m not condemning women over the age of 20 for a toxic environment. running fast enough. My trainer does that.” wearing yoga pants outside of yoga studios. Altuzarra said it was hard for him to see “Seriously?” Jacobs said. “Live and let the opportunity for dual-purpose garments — Marc Jacobs live.” — Jessica Iredale october 27, 2016 9

● SMCP Brings ‘Parisian Chic’ to The World What’s the secret sauce behind the rise of Paris-based SMCP, with its troika of fashion labels? It’s a business model blending elements of luxury and fast fashion to provide accessible luxury, aggressive retail devel- opment, rapid replenishment of product, a focus on full-price selling, and maintain- ing the distinct identities of SMCP’s three brands — Sandro, Maje and Claudie Pierlot. “They share a vision we call ‘spreading Parisian chic across the world,’” said Dan- iel Lalonde, president and chief executive officer of SMCP. Lalonde said the company had been doubling in size every three years. “I’m not saying we still have a plan to double every three years but we have a pretty ambitious growth plan.” “We are big believers in retail,” he added, indicating the company opens 125 stores a year, currently has 1,200, and also operates concessions in top department stores around the world. It only requires two months lead time to build a store, he said, and on average there is a one-year payback on stores, he noted. Growth will also be fueled by SMCP’s new owner, the Shandong Ruyi Group which bought a majority stake, while SMCP ’s founders and management and KKR retained a minority interest in the group. The deal was announced in early October. Shandong Ruyi Group said it intends to maintain the DNA of SMCP’s brands and the design and creative teams in the Paris headquarters. While Lalonde didn’t discuss the acquisitions, he did outline what makes SMCP distinctive and why the company, tracking at $800 million in sales over the last 12 months, is positioned for sustained growth. He characterized accessible luxury as “a sweet spot” and said research by the Boston Consulting Group indicates that market is “purported to grow faster than the luxury and mass markets over the next five years.” He also said there have been three major milestones in the history of the company, first when Sandro was formed in 1984 by two sisters, Evelyne Chetrite and Judith Milgrom, who relocated from Rabat, Morocco, to Paris; second, when the company shifted from a wholesale to a retail orientation involving concessions as well as freestanding stores, and third, taking the brands global. SMCP is sold in 35 countries. “We are trying to be global leaders in accessible luxury. That’s the phase we are in today. We believe we have a long way to go,” Lalonde said. The company is experiencing annual topline compound growth of 26 percent, with France representing 49.6 percent of photography, stylists, pattern-makers the business, though there’s a “strategic “We are trying to be global leaders in accessible and stores offering personalized service. initiative” to build the business outside luxury. That’s the phase we are in today.” “We don’t believe in self-service.” To France, but continue to grow in the home help maintain brand integrity, SMCP has country, Lalonde said. “We don’t take on — Daniel Lalonde, SMCP “a limited footprint in outlets….We’re too many initiatives. We have a strong very happy with that. Six percent of our focus on key strategies.” business is in outlets. It’s not a channel Sandro, SMCP’s largest volume label, luxury. “It’s a nice gap for us. The space is equation” when it comes to ready-to-wear, we are growing.” has a chic, urban, Parisian appeal and is larger. We think it’s a big driver.” he said, meaning women pay less for On the fast-fashion side, SMCP, requires the only one of the three brands that sells He also cited an emerging urban middle accessible luxury rtw and wear it more just three months from product devel- men’s wear as well as women’s. class which will grow to three billion by often than luxury rtw. opment to store delivery and is able to Maje has more of a feminine, Bohemian 2020. “There’s a whole bunch of new con- For much of the world, SMCP’s “brand replenish best-selling items in five to nine and understated look with a touch of sumers stepping into the market.” awareness is still low, but when they weeks. Each week, 25 new products are quirkiness, while Claudie Pierlot takes a Moreover, global tourism is growing know us, we quickly become their favorite delivered to all stores.The company has preppy, timeless approach for customers roughly 4 percent per year, and “mix brands,” Lalonde said. global systems in all o of its stores, takes who seek style over trend. and matching” is growing, said Lalonde, “We blend the codes of luxury and fast about 3.5 months from design to display Lalonde posed the question: “What is explaining that women are increasingly fashion,” Lalonde said. “That’s a very, very in the stores, and can replenish best-sell- accessible luxury? How do we define it? pairing luxury pieces with less expensive strong idea for us. Imagine blending the ers in five to nine weeks. In addition, “We And why is it a sweet spot?” pieces to create outfits. As examples, he codes of Saint Laurent and Zara and taking drop 25 new products in all our stores Then he answered himself, saying said women might pair a Maje cardigan the best from both.” around the world every week.” that with many luxury brands elevating with a Hermès Birkin bag, or a Sandro SMCP, he said, has a creative process “Having the agility to bring newness their entry position price level, there’s jacket with Chloé top. resembling a luxury house, including drives productivity,” Lalonde said. an opening for less expensive accessible Accessible luxury has a higher “value artistic directors involved in all the — David Moin october 27, 2016 10

● L Catterton’s Amazon Alexa,” he said, referring to the web giant’s device that looks like a speaker, Consumer Connection but can place e-commerce orders from In a Time of Change voice commands. “Where’s that world going?” Scott A. Dahnke is looking for tailwinds in And the advent of AI and other decid- the winds of change. edly techie changes are accompanied by And as global chief executive officer of broader shifts that played out over decades L Catterton, which has $15 billion under in fashion. management and investments in 85 com- Dahnke noted that big players that panies, he’s in a good spot to get a feel for derived their power from economies of where the market’s going and the ability to scales in the Sixties, Seventies and Eight- place bets accordingly. ies, only to see power shift to category L Catterton — which was formed this killers in the Nineties. year after private equity firm Catterton And that power is on the move again. teamed with Bernard Arnault’s LVMH Moët “Power is shifting inexorably to the Hennessy Louis Vuitton — is looking to buy consumer and all that disruption on so businesses that play in areas of the market many different levels, in terms of who the that are expanding. competitors are, what the consumer is “At our core, we believe the most looking for…we see that disruption from an important decision one makes as an inves- investing point of view as both an opportu- tor is the category,” Dahnke said. “Warren nity and obviously a threat.” Buffett says, ‘If you take a management He said consumers are able to ultimately team with a reputation for being outstand- control brands and are keeping everyone on ing and you put them in a category with their toes, unleashing evolutionary forces. a reputation for being challenging, it’s “The market will go to the fast, the the reputation of the category that stays mammals, if you will, as opposed to the intact.’… We’re trying to identify places dinosaurs,” Dahnke said. where there is tailwind existing.” Pepe Jeans, John Hardy as Hanna Anders- while his company focuses on smaller Executives in the audience were no doubt L Catterton clearly sees more potential son. Its businesses saw 20 percent sales brands growing quickly). feeling those same pressures, and many in the consumer world. The firm bills itself growth last year. But the consumer segment is not an easy designer brands are looking for investment as the largest consumer growth investor, (Dahnke noted that while LVMH and L space. Dahnke said fashion brands need to partners and clearly wanted to know more with about one-third of its investments in Catterton could overlap as they hunt for be more distinctive to really thrive in the about L Catterton’s approach and how it the retail, fashion and restaurant areas, deals in the market, Arnault would gener- market and to become good investments differs from other investment houses. including Sweaty Betty, Worth New York, ally be searching for larger strategic plays and that “brand and leadership are critical “We’re not just investors and financial for these businesses.” types, in spite of the fact that I’m wearing And L Catterton, like so many others, a tie today, I generally don’t,” Dahnke said. “Power is shifting inexorably to the consumer is working to understand a dramatically “We’re operators. I was ceo of a public shifting landscape. business, most people in our firm were and all that disruption on so many different “Disruption is happening…at a rate that c-level executives, so that makes us dif- is unprecedented in our lifetimes and ferent kinds of partners. Our relationship levels, in terms of who the competitors are, perhaps in history,” said Dahnke, who pre- with LVMH is definitely valuable. Our heri- dicted growth would speed up more over tage of investing in these kind of categories what the consumer is looking for…we see that the next few years. is powerful and relatively atypical.…We do By way of example, he pointed to have our own history and heritage of being disruption from an investing point of view as advances in artificial intelligence and executives, so we think that makes us more machine learning. empathetic when winds kick up.” both an opportunity and obviously a threat.” “We’re just seeing in this industry Few in the room would have said fashion — Scott A. Dahnke, L Catterton the beginning of that, for example with is sailing quiet seas. — Evan Clark

● The Real Real: “We’re removing the friction of getting the goods From Online to and selling them.” Physical Space — Julie Wainwright, The Real Real If The Real Real continues its trajectory, the luxury consignment web site could achieve elusive “unicorn” status in a few The Real Real has sales associates in 26 percent of shoppers and consignors saying years. The Real Real is expected to report cities who visit consignors’ homes, advise they tend to consider an item’s resale value $400 million in gross merchandise value them on what to sell, pack it up and ship more when they buy at retail. Many, in fact this year, which is double 2015’s $200 mil- it to one of two warehouses where it’s have become “fast flippers,” buying more lion and quadruple 2014’s $100 million. authenticated, cataloged, photographed and selling more quickly since a product’s After opening four fine jewelry and and loaded onto the web site. value starts declining after a year. watch valuation centers in New York, With women’s and men’s apparel, fine Where The Real Real historically worked Chicago, Los Angeles and San Francisco — jewelry, watches, art, furniture and other with brands mainly on overstocks, Wain- four more are planned for next year — The products for the home, The Real Real is wright said, “We’re working with some Real Real is going further off-line with a adding kids to the mix. brands and thinking about how we can pop-up shop planned for Manhattan for About one-third of the site’s consum- work together.” Dec. 1 to Dec. 15. It’s a precursor to perma- ers are Millennials. “We’re their gateway The Real Real can be a barometer of nent store, which could bow in the next drug,” said Wainwright, adding that brands’ ups and downs. “We know which 15 months, according to Julie Wainwright, the majority of Millennials are working brands are gaining or losing momentum,” chief executive officer of The Real Real. women, two times more likely to have a Wainwright said. For example, three “We’ll create a concept store,” she said. net worth of $2 million or more, and living years ago, the site was getting flooded “There may only be one in the U.S., but it on one of the coasts. “They love quality, with Gucci merchandise. Today, a Gucci could be used for expansion overseas.” luxury and value,” Wainwright said. product can sell for 70 to 80 percent of its Asked how The Real Real would trans- “If you have the supply, we have the original retail price. late to brick-and-mortar, Wainwright said, product depth,” Wainwright said, adding The company works to identify and “We’re selling the most beautiful things that 98 percent of the products on the site remove counterfeit items. About 95 in the world. We created an environment sell within 90 days. The Real Real show- percent of the products it sells come from online to keep the brands’ image intact. If cases trends and provides editorial for its people’s homes, so that leaves only 5 per- you walked into a valuation center you’d “The Real Real is the leader in the circu- 20 million U.S. customers, and conducts cent that may be questionable. see a beautiful environment. The store lar economy for luxury goods,” Wainwright surveys several times a year to better When consignors get a check for prod- will look like any of the centers with a very said. “With five million members and four understand why they shop. ucts they sold on The Real Real, they shop. high-end aesthetic, a high service level and million products sold, The Real Real has “We’re sustainable,” Wainwright said, Wainwright said 84 percent of consignors underlying technology.” leverage because consignors tend to be explaining that sustainability “is becoming shop for luxury brands and 90 percent Wainwright said she plans to work with buyers and buyers tend to be consignors. more and more important in consumers’ prefer to do their shopping in physical Courtney Applebaum, the interior designer “You’ll make three times more if you thinking. They said they’re moving away stores. “They treat our payouts as open-to- who helped Ashley and Mary-Kate Olsen sell with us,” Wainwright said. “We’re from fast fashion.” buys,” she said. “This year, we’ll pay out with their first store, which opened in 2014 removing the friction of getting the goods Wainwright said The Real Real has $200 million. Next year it will be $300 mil- on Melrose Place in Los Angeles. and selling them.” changed the way consumers shop, with 77 lion or $350 million.” — Sharon Edelson october 27, 2016 11

● The Blonde Salad Turns Blogging Into Millions “It’s a big phenomenon before being a business,” Riccardo Pozzoli, cofounder and chief executive officer of The TBS Crew, said of the rise of bloggers, which has in turn given birth to the digital influencer. Pozzoli played a pivotal role in the cre- ation of one of the most followed fashion bloggers to date, Chiara Ferragni’s The Blonde Salad, as well as parent company The TBS Crew, which operates The Blonde Salad and retail arm Chiara Ferragni Col- lection. In seven years, The TBS Crew has become a multimillion-dollar business. “It’s a social revolution because social media now is making people become the media. Not only a person, but if they have content and the right style they can com- municate and become a media [channel] for the world and even collaborate with brands,” he continued. Pozzoli acknowledged that being an influ- encer and “putting your face on something” has become a great responsibility, specif- ically for Ferragni, who has seven million Instagram followers and another 500,000 who view her Snapchat stories daily. blog while they were in college, dating “It’s a social revolution…[People] can Ferragni is the face of a multifaceted and spending a cold winter interning in business that is split between herself as Chicago in 2009. Within two months, page communicate and become a media [channel] for a brand (she’s become a celebrity in her views to the site ranged from 30,000 to own right who regularly appears in ad 50,000 per day — an indication of early the world and even collaborate with brands.” campaigns and covers of magazines), The success and Ferragni’s appeal to readers. — Riccardo Pozzoli, The Blonde Salad Blonde Salad as a media site, The Blonde By 2010, they got to work on building a Salad as an e-commerce destination (as of real business, and today, The TBS Crew last month), and a contemporary footwear employs a team of about 20 people and collection that generates millions of dollars also manages the career of Ferragni’s little and going forward, influencers like Fer- which shifted from Ferragni’s personal in retail sales per year. Ferragni signed sister, Valentina Ferragni. ragni will continue to carefully grow their style web site to a lifestyle platform that a yearlong deal with Pantene for 2016 as But Pozzoli believes that the next itera- brands and deepen relationships with fol- has an editorial team of six, now garners a global ambassador with the option to tion of digital influencers, or “2.0” as he lowers and brands even further. For him, more than 13 million page views a month. renew for 2017, and starting in February, referred to it, won’t be nearly as dramatic the revolution is that “people are media” As for the newly launched e-commerce appeared in TV commercials for the brand as the shift the industry experienced when now, and these individuals must take cues component, which carries exclusive prod- in Italy, Spain and Portugal. the first fashion and personal style blog- from established media entities — he cited uct from 50 brands that created from one Milan-born Ferragni and Pozzoli were gers hit the scene about a decade ago. Vogue and Marie Claire — to adopting a to three customized products, half of all at the forefront of the blogger revolu- It’s already widely accepted that digital professional approach. stock sold out within one month. tion. The two started The Blonde Salad influencers are inking major brand deals, Pozzoli said that theblondesalad.com, — Rachel Strugatz

● Millennials: Not market, Kelly said Millennials and Baby Boomers were about equal in number in One-Size-Fits-All 2015. But this year, the “Millennials are outrunning the Boomers,” Kelly said, and Anyone who believes all Millennials share he predicted that there will be 80 million the same consumer profile are wrong. Millennials by 2025, compared with 67 That was a key point by Greg Kelly, million Boomers. Also by 2025, the rising senior partner at McKinsey & Co., who income of Millennials could give them spoke on “Powering Performance Through about 37 percent of total spending power, Millennials.” or $8 trillion. Kelly said, “Too many companies we see To understand Millennials, one needs get it wrong.” to know that there are three distinct Millennials are those born between segments within the demographic group, 1981 and 1997. While they are a large Kelly said. demographic group, one shouldn’t think The value group, at 40 percent, is the of them as just one segment. According largest. Value group Millennials, because to Kelly, there are at least three different of their lower incomes, are motivated by “segments” within the Millennials group price and care less about the brand. They classification. are risk avoiders and often look for advice So why would that be important for from others. The second group, at 22 fashion companies? According to Kelly, the percent, Kelly dubbed the “quality Millen- economic universe is highly concentrated nial.” This group is loyal and is controlled at the top, making it a winner-takes-all and thoughtful in their decision-making. scenario. Companies at the very top across They are willing to pay a higher price for different sectors have 90 percent of the something that will last. The final segment economic profits, while the middle tiers Greg Kelly said Millennials and Baby Boomers is the image group, at 38 percent. This two through four barely meet their capital group focuses less on price and more costs, and those in the bottom fifth tier see were about equal in number in 2015. on brands that help them express them- significant losses. Looking at the micro- selves. They use brands to differentiate cosm of publicly quoted apparel, footwear themselves, but they’re also more predis- and luxury firms, about 200 in number, channels” and in multiple categories. The Kelly explained. posed to loving the good life and spending the same economic patterns show up. company is in digital, at retail, has an Nike Inc. was another example he gave, beyond their means. Companies that do well are simply doing international operation and is also doing noting that while the company has gone In conclusion, Kelly said for companies more in general, and that’s driving why direct-to-consumer. They’ve also “grown in after the direct-to-consumer and digital looking to grow, “research doesn’t support they outperform those in the lower tier affordable luxury, [introducing] real metals markets, it was the decision to expand in doing fewer things better. And those that groups, Kelly said. He gave as an example and stones at attractive price points.” the women’s apparel business that was a are doing better are making more moves. Pandora (coincidentally, the winner of this These companies were aggressive in game changer. Women’s has since grown They are more aggressive in finding pock- year’s WWD Honor for Best-Performing making decisions on where to play, what to “$7 billion this year, and is on its way to ets [for growth], and then allocating more Company — Large Market Cap), which consumer segments to be in, what catego- $11 billion in just over 15 years,” Kelly said. investments [in those areas].” he said is “funding growth in multiple ries to sell in and what countries to go into, Going back to the Millennials growth — Vicki M. Young october 27, 2016 12

● Lolli & Pops Founder Sid Gupta on Candy And Authenticity How a former Wall Street executive created a second career as a candy store entrepreneur sounds like the makings of a Ryan Reynolds’ comedy, but Lolli & Pops chief executive officer Sid Gupta is in on the laugh, having built a $50 million busi- ness in four years. In 2012, Gupta left a career in banking and private equity looking for an invest- ment. He decided on a distressed chain of 11 candy stores in Oklahoma City, despite having zero retail experience and no mar- keting budget whatsoever. Gupta relocated, cleaned the floor, worked the cash register, bought the candy, trained the staff and learned the business from the ground up. He recovered his investment in the first few months. A year later he couldn’t understand why sweets, a $35 billion business, was “extremely fragmented with very little innovation.” Gupta reminded summit attendees that most candy is sold in convenience stores, drugstores and grocery stores. “The core organizing idea behind our business is happiness. Our mission is driven by the simple idea of, well, if I can make people happy over and over again…it sounds really corny, but this year we will touch almost 10 million peo- ple. Maybe one day I can reach a billion people and maybe I can move the needle of happiness just a little bit.” Lolli & Pops will open its 37th store this year and is approaching $50 million in revenue, Gupta said. “Starting with great design” of the stores, he said he pays atten- tion to detail in the stains and the colors of dressed in bow ties, crisp Oxford white Sid Gupta researched old-time candy stores in the woods, the tins used for ceilings, the shirts, aprons and hats “so they play a part marble that is used, the fixtures — every- and are there to put on a show.” Well-in- Europe…finding licorice from Australia with real thing is there to tell a story. He researched formed and well-trained staffers offer old-time candy stores in Europe. Sourcing shoppers a tour of the store and samples, licorice root, sour balls from Spain, candies from delicious product was the second factor, Gupta said. finding licorice from Australia with real The company on Wednesday launched Japan and nostalgic sweets from Missouri. licorice root, sour balls from Spain, can- its first e-commerce site, which is focused dies from Japan and nostalgic sweets from on gifting its products rather than straight Missouri. The company also used its design commerce. RetailNext chief executive officer and that, in the end, the best marketing and knowledge to package private-label goods. The company’s slowness in leaping cofounder Alexei Agratchev, Gupta said customer acquisition tool a brand can The third factor was to invest in the into e-commerce indicates its emphasis the company’s technology has been have is its own stores. stores’ “magic makers,” the staff, who are on bricks-and-mortar. Joined onstage by integral to Lolli & Pops’ success showing — Rosemary Feitelberg

● Consumer consumers are willing to pay only 76 percent of full price. Petro said shoppers Testing Metadata are not seeing the value of full price. Of the 10 categories tracked, seven experienced Reveals Impact of price declines in what consumers are Apparel Markdowns willing to pay. Petro said in the men’s wear market, the Wrapping up the formal presentations “test price dropped 28 percent” over the of the summit, Greg Petro, chief executive three-year period — except for underwear, officer of First Insight Inc., noted how sev- which rose 34 percent. Moreover, the gain eral of the previous speakers cited a retail was solely for boxers, not briefs. “Con- market that is no longer seeing the growth sumers are segmenting themselves faster it once did. than brands and retailers can keep up,” “Apparel sales are down, but showing the ceo added. a gain of 1 to 3 percent on an aggregate Overall, the analysts noted in the basis,” he said. “Conversion rates are also report that there is a “persistent and down, and so is retail traffic. In the U.S., significant gap between the planned the retail square footage on a per-capita MSRPs [manufacturer’s suggested retail basis is 49. In the U.K., by comparison, it is price] tested and the prices consumers nine. So, we are over-stored, and there are are willing to pay” and that shoppers are too many products.” more “willing to accept price growth in The retail market has also been impacted ath-leisurewear” as well as activewear by changing consumer preferences. Sub- compared to other categories, “and that “Retailers can increase sales by 7.5 percent sequently, retailers have reacted to these consumers are unwilling to pay top dollar changes by marking down apparel. But for footwear.” without opening a store or expanding or doing Petro said these tactics are generating new The residual effect of these changes in consumer behavior patterns. He presented consumer behavior includes out-of-stock a remodel by fixing inefficiencies in overstocks results from a research study conducted items shoppers really want as well as with Fung Global Retail & Technology that bloated inventories of apparel products and out-of-stocks.” examined metadata from First Insight’s that don’t sell at any price. Petro said — Greg Petro, First Insight Inc. consumer testing over the past three years. bloated inventories and overstocks com- The bottom line, according to Petro: bined are a “$1.1 trillion problem glob- “Consumers are not willing to pay ally” and $252 billion in the U.S. alone. testing, he said. or doing a remodel by fixing inefficiencies the prices in the market.” In women’s “But brands and retailers can recover “Retailers can increase sales by 7.5 per- in overstocks and out-of-stocks,” Petro said. wear, the results of the analysis showed those eroded margins” via consumer cent without opening a store or expanding — Arthur Zaczkiewicz october 27, 2016 13

● Ralph Lauren “Bring your heart, bring your passion and love Receives First what you’re doing.” John B. Fairchild Honor — Ralph Lauren, to those joining the business The first day of the summit was capped off by the first WWD Honors awards, which recognized best-performing compa- “She never gets older, she gets more beau- Arnault, recalling the day the luxury nies of the year; corporate citizenship, tiful,” said Lauren. “I’m getting choked up titan appointed Toledano as Dior’s ceo. and creative leadership and presented all of a sudden. I love my family, I love my “He said to me, ‘You will enjoy being the the inaugural John B. Fairchild Honor to wife and I love my work. It has all been boss for one hour, maybe one day, but Ralph Lauren. very special to me. tomorrow you will feel different,’” said The cocktails, awards and dinner drew “I appreciate this. I love it and I’m proud Toledano. “I went through crises. I went a room packed with industry executives; of it and will cherish it. You thank me, but I through a lot of fun, a lot of excitement, designers ranging from Marc Jacobs and thank you for everything,” he added. but every morning I go to the house so Anna Sui to Jason Wu and John Varva- Prior to the John B. Fairchild Honor, excited. I never got bored one day.” tos, Todd Snyder to Joseph Abboud, and the others went to Sidney Toledano, chief Inditex — parent of Zara, Massimo Dutti members of the late Mr. Fairchild’s family, executive officer of Christian Dior Couture, and other brands — received the Corporate including his wife, Jill. for creative leadership; Inditex for cor- Citizenship Honor for its dedication to In presenting the John B. Fairchild porate citizenship; Pandora for best-per- sustainability. Honor to Ralph Lauren, WWD editor in forming company, large market cap, and In accepting the award, Felix Poza, chief Edward Nardoza said selecting the Farfetch for best-performing company, global director of sustainability for Inditex, first recipient of the award generated no small market cap. said the honor was “a particular source of debate. He cited Lauren’s “staggering” list Toledano had spoken earlier that day at pride” since the company strives to “pro- of achievements, such as being the inven- the summit and was supposed to return to vide quality fashion at affordable prices, tor of lifestyle dressing, the first designer publication and turned it into a fashion the Dior offices after his session for a day [but] what’s even more important to all of to have his own store, his home line, the show and a place to be seen, doing it of meetings. “I stayed almost all day [at us is that we’ve achieved this goal with a Rhinelander Mansion, fragrances, the Dou- with excitement, pleasure and a love of the summit] seeing all these new, young focus on sustainability.” ble RL Ranch, digital shoppable windows, the game. “I love the game,” added the entrepreneurs speaking of e-commerce, He said the award acknowledged the his Polo restaurant (and the delicious designer, who feels younger than ever. the Internet and social media,” he said. “It company’s “commitment to society as a corned beef ) his charitable giving and the “When I look in the mirror I’m 32,” he was really amazing seeing different people whole,” noting that it was “a collective restoration of Old Glory. said. thinking out of the box and it was really effort of a motivated team.” Lauren was clearly moved and said, One of the great things about the honor, instructive for me.” He said Inditex knows that “people are “You dream you’ll have all this happen to he said, was when he walked into the One question that came up through what really matter, but we are not alone you, and this is it.” room, he saw so many familiar faces and the various presentations struck him: in this effort. We have learned so much He then turned to Mr. Fairchild’s families that he’s known over the years. Will Millennials buy luxury? “I have by sharing our experiences and listen- children in the audience and said, “Your “I appreciate everything that’s ever been one hope for them, that they do enjoy ing to our stakeholders over the years.” father was a genius. I remember years done for me,” said Lauren. luxury. Why?” said Toledano. “Because And while the award was a testament to ago I had a great show and got a call from “I love the passion, I love the work. I luxury comes with peace, with economic the company’s work so far, Poza said it John Fairchild, who was a tough critic, come in every day and I’m excited to be growth, with hope. I hope for peace, I also “represents a challenge to Inditex a tough guy and a fun guy, and I said, in my office,” said Lauren. Everything he’s hope for economic growth so that this to continue to push ourselves to greater ‘John, how did you like my show?’ He ever done, he’s done with his heart. “I love new generation will enjoy luxury, expect sustainability.” said it was ‘genius.’” Lauren couldn’t wait the people I work with. I love the team,” luxury or dream of luxury as we have Jeffery Fowler, president of Farfetch’s to see WWD the next day, expecting the he said. He also loves the new people who done ourselves.” North American operations, accepted the cover and a rave review. “Women’s Wear have joined. His advice to them? “Bring He thanked his wife Katia, who was WWD Honor for the best-performing small came and there was no greatness. Where your heart, bring your passion and love there with him; his father, who passed cap company, pointing to founder José did it go?” what you’re doing.” away a few months ago; his teams, Neves’ vision to “change the way the world

Photographs by Patrick MacLeod and Abel Fermin MacLeod Patrick by Photographs Lauren said Fairchild took a trade Lauren also said he loves his wife, Ricky. past and present, and his boss Bernard Continued on page 14 october 27, 2016 14

Jeffery Fowler Katia Toledano and Sidney Toledano Marc Jacobs Felix Poza Anders Friis

Ralph Lauren Farfetch is working now to continue to drive fashion’s digital evolution and, “I have one hope for [Millennials], that they do Receives First as Fowler said, “be revolutionary in our enjoy luxury. Why? Because luxury comes with John B. Fairchild Honor ambition and our actions.” The WWD Honor for best-perform- peace, with economic growth, with hope. I hope continued from page 13 ing company, large market cap, went to Pandora where, ironically, Mr. Fairchild’s for peace, I hope for economic growth.” shops for fashion.” son Stephen is the creative director. In pre- The company has a good start on that senting the award to Pandora ceo Anders — Sidney Toledano, Christian Dior Couture and already hosts 500 retailers on its Colding Friis, Stephen Fairchild first spoke namesake web site and works with 150 movingly about his father, describing what stand-alone designers. The platform is he did as “revolutionary” since, through honor to receive this prize from Stephen prices in 2000 concept stores and 10,000 expected to drive sales this year of $800 WWD’s coverage, he created the modern Fairchild. Stephen was instrumental in the points of sale. “We are still only a teenager, million, up from $500 million last year, fashion world. Expressing thanks to all of development of Pandora.” as Stephen says.…This is a highly valued connecting consumers everywhere with those in the room, including his mother Friis said Pandora is a brand born in recognition of the 20,000 Pandora people. brands from independent retailers around and family, Stephen Fairchild then intro- the kingdom of Denmark in the year 2000 Every day, we all go to work to make the the world. duced Friis, who said, “It’s a very special and offering quality jewelry at affordable company a little stronger.” — WWD Staff

Jason Wu John Varvatos Anna Sui Todd Snyder october 27, 2016 15

accessories Giuseppe Zanotti Opens London Unit

● The Italian footwear brand new footwear capsule collection designed unveiled its largest flagship in with the American singer, in January with Neiman Marcus in L.A. the former Donna Karan space. The limited-edition lineup features By Samantha Conti six styles, with prices ranging from $795 to $2,995. It will be available in select LONDON — In or out of the European Giuseppe Zanotti Design stores, on giusep- Union, London remains key for Giuseppe pezanottidesign.com, and at retailers Zanotti, the Italian footwear designer who including Saks Fifth Avenue, Neiman Mar- has opened his largest flagship in the for- cus, Bergdorf Goodman and Nordstrom. mer Donna Karan space on Conduit Street Zanotti has also worked with Kanye West, near Oxford Circus, a thoroughfare that’s Zayn Malik and G-Dragon, the South Korean fast becoming a nexus of international singer. He said he loves working with musi- luxury brands. cians, and finds them inspirational. Giuseppe Zanotti Design has taken over Inside the Guiseppe Zanotti store on Conduit Street in London. The business has overcome a series all three floors of a historic Georgian build- of challenges this year. The U.S. is the ing for the first London store that houses equity firm L Catterton as a minority inves- is dedicated to men’s wear. brand’s biggest market, generating about all of the brand’s glamorous, high-sparkle tor, has recently opened its first directly The spring 2017 collection is on show one-third of sales, and Eugenio Morselli, collections: Women’s, men’s, children’s, operated Moscow store. It already has upstairs. Inspired by Botticelli’s ethereal the chief executive officer, said it hasn’t jewelry, bags and ready-to-wear. There’s three franchises in the Russian capital. ladies, the styles feature butterfly appliqués been an easy year. He said the U.S. depart- even a dedicated bridal section in the Giuseppe Zanotti Design will expand on strappy sandals, jewels on dusty pink ment stores’ sluggish performance and 2,300 square feet of selling space. next in Asia, with its first boutique launch trainers or chunky flat sandals, and a new, the upcoming presidential election have Zanotti has two other stores in London, in Vietnam in December, and further open- 4 cm (1.57 inch) block heel on pumps. both dented sales. He also said that import one on Sloane Street that sells women’s ings in Tokyo and Singapore in the first half Zanotti said that while the business tariffs imposed by countries such as China and another in Belgravia focused on men’s. of 2017. The label has approximately 100 has changed considerably — and become and Japan are also weighing on sales. In an interview, the designer said 95 stores globally, and sells in 75 countries. more challenging — since he started in Morselli said that this year growth will percent of his sales are international, and The London unit is bright with clean the Nineties, the important thing is to be around 7 percent with sales of about 172 calls London “an important crossroads, lines and a contrasting color palette of remain flexible. million euros, or $187 million. Growth will with clients from China, India, the Middle electric blue, dark gold and shiny metallic “Business changes and you have to keep be in the high-single digits next year and East. And we sell very well in England surfaces. Walls and floors are clad in white thinking how to change, how to be excit- the brand will continue to meet its targets, generally. We needed the visibility, the boiserie and marble, with brass details. ing, and still remain relevant to your brand he added. The brand’s fiscal year ends on framework for telling our story. We’re an Features include mirrored brass bars on codes. Today, fashion is no longer about Oct. 30. independent brand — and the designer one wall, and a silvery, cylindrical dressing the runway; sport has become fashion, and “The market is unstable and the best is still alive!” said the jovial Zanotti from room on the ground floor. low heels can be feminine and sexy.” we can do is to overcome those obstacles behind a pair of round glasses with thick Women’s wear, including a capsule col- Zanotti is also moving ahead with his and build the framework for a future when black rims. lection of hand-painted boots and bags, is celebrity collaborations, and plans to things are better, and the London store is a The brand, which counts the private stocked on the ground floor, while upstairs launch Giuseppe for Jennifer Lopez, a true showcase for the brand,” Zanotti said.

business Barneys Publishes Visual History and More

● A history of collaborations Barney Pressman, the self-styled cut-rate include Linda Evangelista wearing a hat and includes everyone from Bruce clothing king, founded his business that Kyle MacLachlan wearing a lobster. year in a 28-foot-wide shop on the corner of “Times changed, talent changed, but Weber to Baz Luhrmann. Seventh Avenue and 17th Street. Early on, we also looked for very specific people to By Sharon Edelson he displayed a canny sense for advertising, collaborate with,” Freedman said. “During printing “Barney says: You, too, can now those crazy years, Simon was doing win- afford to wear expensive clothes” on red dows that were social satire. In the book, Nearly a century of boundary-breaking match books. Pressman, who died at age 96 those are juxtaposed with imagery that advertising, marketing, visual display in 1991, lived long enough to see the high- shows how things were done more recently, and events is celebrated in a new Rizzoli end aspirations of his son Fred fully real- like the collaboration with Baz Luhrmann.” coffee table book titled simply, “Barneys ized, but not the 1993 launch of Barneys’ Freedman was referring to “Bazz New York.” 230,000-square-foot flagship on Madison Dazzled Holiday” in 2011, when windows Three hundred and four pages seems Avenue, which was led by Fred’s son Gene. featured ice skaters, break dancers and an hardly enough to chronicle the creative “There’s no point in being coy about opera singer. Other holiday blockbusters body of work from the retailer’s subversive what happened next,” says the book. such as Gaga’s Workshop in 2015 extended past and artfully edgy present. “Barneys went through a messy, troubled from windows to limited-edition gifts. The Sagmeister & Walsh-designed period that resulted in bankruptcy and the Through the years, Barneys has worked fashion art tome has an energy, from the closing of the Seventh Avenue store.” with top photographers such as Corinne dizzying graphic wavy striped endpapers When the retailer emerged from Chap- Day, Herb Ritts, Nick Knight and Juergen to the spreads juxtaposing decades and ter 11 in 1999, it was without the Press- Teller, and artists including Warhol, Jean-Mi- disciplines. Essays, executive profiles, man family. chel Basquiat, Alex Katz and Sterling Ruby. quotes by famous shoppers — Andy Warhol An image from “Brothers, Sisters, Sons, “We’re exquisitely aware that there “The key thing is that Barneys has provided a droll commentary on the store Daughters,” photographed by Bruce Weber. would be no Barneys without the genius always sought out excellence,” Freedman — are interspersed throughout along with of the Pressman family. We wanted to said. “In paving their own way, everyone recipes from Freds founding chef Marc to the discussion. Artist Tom Sachs’ “Hello honor all the Pressmans,” said Freedman, had a voice and the voice married to our Straussman that can be torn out. Kitty Nativity Scene” for Barneys’ 1994 holi- explaining that the book is dedicated to idea of what gives the store a focus.” Warhol’s blurb captures his trademark day windows, is an example, with the three Barney and the entire clan. “How Does a Store Acquire a Soul,” an blend of irony and indifference: “I don’t wise men represented by Bart Simpson Gene Pressman was the force behind the essay by Vanity Fair contributing editor care what I wear or anybody wears. I want dolls, and Mary and Jesus as “vulgarized women’s store on Seventh Avenue. The cre- David Kamp plumbs Barneys’ history to to see into people even if I see a big gaping kittens,” according to the Catholic League, ative types he hired, Peter Marino, Andrée find out “how over this long period of time hole. Barneys is OK though. They believe which wanted it removed from the window. Putman, Neil Kraft and Glenn O’Brien, did Barneys become more than a store. It’s in free speech. If you want me to say some- “We unanimously decided we weren’t contributed to Barneys’ unique voice. so much more than a place where you buy thing nice about it, just add it in. I don’t going to do a conventional book,” said Simon Doonan presided over Barneys’ clothes,” Freedman said. care.” The quote appears opposite Richard creative director Dennis Freedman, who visual identity for 25 years, creating irrev- The book, which was edited by Chris- Avedon’s 1969 portrait of Warhol, and in spearheaded the project. “We didn’t erent Christmas windows where Margaret topher Bollen, comes in a cloth-covered abridged form on the back cover. want to organize the book in a linear or Thatcher was dressed as a dominatrix and trade edition, $85. A limited-edition ver- Barneys has always had a knack for chronological way. We wanted a book Tammy Faye Bakker standing next to a giant sion with a three-dimensional molded “B” reflecting the issues roiling society at any that expresses DNA of the store since it mascara wand. With the motto, “Taste, is exclusively available online and at select moment in time while adding its own voice opened in 1923.” Luxury, Humor,” stylish ads from that era Barneys stores for $295. october 27, 2016 16

Ebony Davis, Nina Agdal and Chanel Iman. Bella Hadid and Dior Beauty Fete ‘The Art of Color’ Soko, Cameron Dallas and more came out for the fashion label’s dinner at Indochine.

Bella Hadid “I just got out of bed,” said Jordan equally cheekboned friends. this book for about a year, and it’s Jasmine Sanders Barrett around 9 p.m. Tuesday “I’m here for the free food,” really been a great discovery. We and Hailey Baldwin evening at Indochine. The model offered Soko, mingling during the want to remind people that with had abandoned the comforts of pre-dinner cocktails. Dior, you have to dare — dare with Laura Harrier and pajamas and a Nicole Kidman psy- The actress and singer is a Dior. Beauty became such an Chelsea Leyland chological thriller — “I don’t know fan of bold colored makeup — the industry, and it’s easy to fall back the name of it, but it was really likes of which is celebrated in the on the bestsellers. If you look good” — to hobnob with the likes new Dior book — and her prefer- at the book, you will see we are of Bella Hadid, Cameron Dallas, ence for red eye shadow has be- always on the edge.” Laura Harrier, Soko, Chanel Iman, come something of a signature. Philips, who was previously at Nina Agdal, Devon Windsor, Erika “Red is my favorite color because Chanel, has been at Dior for under Linder and Lindsey Wixson for Di- of this movie ‘The Red Shoes,’” three years, and has seen nearly or's celebratory dinner for beauty she explained. “I wear red clothes as many creative directors in that book The Art of Color, hosted in every day — and if it’s not my tenure. “I’ve been there for two and tandem with V Magazine. clothes, it has to be my eyes. It’s a half years, and I’m the old one al- Ah, to be a 19-year-old Aussie almost like a shield of protection. ready,” he said. “Working with Raf male model, for whom bedtime To me, red is the color of passion. [Simons] was great. And now I did and schmoozing is separated only I’m so into my record right now, my first collaboration with Maria by a Dior suit. “It fits like a glove,” and when I do something so fully, Grazia. It’s fun to see how quickly Barnett shrugged. “It’s amazing.” red is a reminder that I can’t get we can adapt. Maria Grazia is Dallas parted his way through distracted from what’s really doing her own statement. Raf did the crowd making fart noises important. It always has to be his own thing. John Galliano did and one-off observations, before somewhere — sometimes it's just his own thing — and still, it became seeking the protection of handlers my underwear or my socks.” Dior. Maria Grazia, one of the found at the bar. Agdal and Iman The dinner capped a night of themes of her collection was the posed for photos only once a toasting the Art of Color project, multifaceted Dior woman, and the self-lighting iPhone case had ever- which began with a preview party theme of my first collection was just-so illuminated their faces; the earlier in the evening. “It’s the the same — and she didn’t know Brant brothers Harry and Peter cherry on...on the cake? On the that. When she told me I was like, made a late entrance, finding their pie?” asked Dior beauty’s Peter ‘Oh my god, that’s fantastic!’” way immediately to a cluster of Philips. “We’ve been working on — Leigh Nordstrom Cher, the Hostess The entertainer hosted a dinner in L.A. celebrating the Kilian x Loree Rodkin fragrance and jewelry collaboration.

Alana Stewart, Cher, Melanie Griffith “I’m not a big goer-outer, but I did friends.” Kilian Hennessy and and Loree Rodkin. it for Loree,” said Cher of playing Proving her loyalty, Cher even Dita Von Teese hostess at a dinner on Tuesday saved her friend’s head from night to celebrate her longtime going up in flames, swatting at friend Loree Rodkin’s jewelry col- Rodkin’s hair when her long tress- laboration with perfumier Kilian es accidentally brushed one of Hennessy. “I told her, ‘B-tch, you the candles. “If anyone’s wonder- better do it,’” said Rodkin. “That, ing what that new scent is, it’s my and, ‘You’re staying for dinner,’” burnt hair,” she deadpanned. said Cher, adding, “I’m not a big Rodkin had another fan in stayer, either.” Davis Factor, who has known her But the music superstar did since he was 12 years old. “I think indeed stay through the late din- she was with Don Henley when ner, very much at home amongst I met her,” he said. “She’s always friends including Melanie Griffith, had amazing taste.” Alana Stewart, Barbara Bach and Hennessy has only known Laurie Stark. Ever the entertainer, Rodkin for three years, but the Omar’s, more his vibe, Hennessy Cher kept the small dinner party, two also have different versions invited his good friend Dita Von held in a town house suite at Sun- of how they met. “Loree says it Teese to join the celebration. He set Tower, lively with stories from was in New York and I say it was also made sure to hand-select a her and Rodkin’s colorful past. in Paris, but regardless, we share fragrance for the hostess, noting, “We met when Bernie [Taupin, a very similar sensibility. I think “Someone told me she likes vanil- her then-fiancé] took me back- her jewelry is very much like a la.” This was then sprayed onto the D / RE X/Shutterstock Lauren/WW C her dinner by ose/WW D / RE X/Shutterstock; stage at one of her concerts,” seductive shield, and the motif white ceramic piece inside one of said Rodkin, a former interior on the side of my perfume bottle Rodkin’s locket-style bracelets, all designer and talent manager. is actually a shield. So it’s really a the better for the wearer to enjoy “Actually, we used to hate perfect partnership,” he said. its scent all evening. “Many people each other,” interjected Cher. Though he called the Los ask if that little thing is cocaine,” “She crashed one of my birthday Angeles party “very much Loree’s chided Hennessy. “No, but I’m parties. But we’re like the same crowd,” and the New York fete, keeping it anyway,” quipped Cher.

ior photographs by Aurora R Aurora by D ior photographs person, so we became best held a week before at cabaret club — Marcy Medina 2017

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Fashion Scoops

en’s wear category in July. in London, which will take place later this Darcy Miller Soccer Fan Mendler, a Save the Children artist year. Other nominees in the category in- Giorgio Armani continues to show his ambassador, said she reached out to clude Kendall Jenner and Lineisy Montero. allegiance to the FC Bayern Munich the organization ahead of her first tour. “I — LORELEI MARFIL soccer team by extending the company’s did a lot of research before my first tour collaboration with the championship because I wanted to have a philanthrop- German team. But this time, the designer ic cause that I attach to the tour so that Sacai on Three has commissioned renowned German I could have something to speak for as Saks Fifth Avenue wanted to give Chi- photographer Juergen Teller to provide a I’m visiting all these different places to tose Abe’s label, Sacai, a special home on unique interpretation of the partnership. use the awareness for good,” she said. “I its third floor. For the 2016-17 soccer season, Teller was really attracted to how they advo- The new Sacai shop-in-shop, con- is shaking up the idea of a traditional cate for children’s education internation- ceived by Abe herself, showcases the col- team portrait by showing a more relaxed ally and in the U.S.” lection against artfully arranged mirrored side of the athletes. He shot the players “All moms have the same kinds of armoires and wooden dressers, and also mugging for the camera on the field in struggles — sleep, food,” said Garner, the features a capsule range exclusive to front of the net, with many of them pump- event’s host, in a black, strapless Lanvin Saks. It’s comprised of basic silhouettes ing their fists and smiling broadly. gown. “I have so many advantages as a — think Ts, sweats, hoodies — decorated Other photos show what’s going on mom that other people don’t have in this with lace, pleating, chain embellishment behind the scenes and feature the dis- country.…Like, my house has books, my and built-in “necklaces” made from crys- play stands that hold the uniforms with house has conversation, my house has tals and faux pearls, and sits from about the players standing in the foreground neighbors nearby who come in and in- $300 to $1,000, a slightly more accessible waiting to be photographed and the sets invited many of her nearest and dearest ty. There’s always a reason to celebrate.” teract with my children in a really healthy price range than Sacai’s signature line. in the background. Teller and his son — from the design world — Simon Doonan, Cheers to that. — KRISTEN TAUER and giving way. So many moms in this “I love the idea of taking something very both rabid fans of the team — are also Carolina Herrera, Andy Spade, Dylan Lau- country are so far isolated out in rural casual, like a basic cotton-jersey T-shirt, featured in the photos. ren — to help her celebrate the launch of America and are far away from family, far and adding something elegant to it to The team’s wardrobe for this season “Celebrate Everything,” her party-planning Light It Up away from help without any thought of change how you look at a casual item,” Abe includes an Armani Made-to-Measure guide, complete with a list of vendors and A passel of celebrities gathered in having a book nearby that Save the Chil- said. “It’s about taking these classic items wool-cashmere blend suit with a two-but- sources she’s used over the years. the grand ballroom at The Plaza hotel dren hasn’t provided. So of course it just and changing them in a way that makes it ton jacket and flat-front trousers, a white “I’ve been throwing parties for a long on Tuesday night in honor of Save the does more than tug on my heartstrings, it more Sacai. I’m always inspired by my daily cotton jacquard shirt, V-neck cashmere time, and photographing them all, and I’ve Children’s fourth annual Illumination Gala. makes me feel personally responsible to surroundings and daily experiences.” slipover, silk tie and camel-colored coat. always wanted to put them together in Among them were Jennifer Garner; hon- them to do everything I can to make sure “It’s really her moment,” said Roopal Pa- The suits are accented with classic lace- one place,” she explained. “It’s more about oree Iman; Sugarland’s Jennifer Nettles, that Save has the resources it needs to tel, Saks’ senior vice president and fashion up shoes, a belt, backpack and trolley inspiring people to celebrate themselves, who opened the evening with an acoustic provide the excellent work that it does.” director, of Abe. “The brand has gradually case in dark brown matte leather. and to figure out how they celebrate. performance; Sara Sampaio; Gabriela — ALEXA TIETJEN gone from having this cult following within Armani also provided the players with a There are a lot of jumping-off points from Hearst; Dakota Fanning, and Disney the fashion set to growing Stateside in casual outfit to wear while traveling, which lots of craft ideas and food. But it’s really actress-turned-singer Bridgit Mendler. a really big way….She’s helping to move includes a polo shirt, blazer and trousers about making people take the time to cel- Sampaio represented Victoria’s Secret Speaking fashion forward on her own terms, in her in a navy blue cashmere jersey fabric. ebrate everything. It’s a lot of little things, by wearing a white lace top by the brand own way, especially during these times, The Teller photos will be used in the from putting a candle in your pancakes along with a white blazer and white pants Of Paris when we need unique points of view. One official program of the team in Germany. at breakfast,” she continued. “The idea to match. “The venue is breathtaking,” she A spokeswoman from Victoria’s Secret thing Chitose has done is always remain Armani’s three-year partnership with was that there’s really a range, no matter said of the upcoming Victoria’s Secret has confirmed that Bella Hadid will model true to her following and her vision.” the team was inked in 2014. what kind of party, whether you have an fashion show, which will take place in Paris at the Victoria’s Secret show in Paris. The event, which mostly drew stylists, — JEAN E. PALMIERI election party or Halloween party.” this year. “We haven’t seen the outfits, but The show is to be broadcast on Dec. editors and other fashion insiders, was Two events that are, in fact, quickly ap- I’ve heard rumors they’re really good.” 5 by CBS and will be viewed in more than cohosted by Nina Garcia, Marie Claire’s proaching. “Halloween is multiple celebra- Designer and gala cochair Hearst 190 countries. The brand staged its most creative director and “Project Runway” Home Invasion tions. We are already talking costumes, wore one of her own designs — a black recent international show in London in judge. “I am thrilled that there is a little Darcy Miller booked the Jonathan Adler but we tend to do costumes closer to the velvet gown — and revealed she had also 2014, and returned to the U.S. last year. piece of heaven here at Saks,” Garcia showroom on Oct. 26, filling the already end because we change our mind a lot. dressed Save the Children chief execu- Victoria’s Secret employee Jen Waldman said. “[Sacai] is one of the shows that all whimsically decked space with glitter We’re working on it,” she said when asked tive officer Carolyn Miles. “I get so much took to Instagram and posted a picture the editors and stylists love to attend, balloons, oversize illustrated cutouts, a what she had in the works, and offered pleasure from dressing a woman like of herself with Hadid, saying: “One of us and we’re so inspired after we see it in silver sparkle nail polish manicure station, cupcakes with spiders on them as a [Miles], as you can imagine,” Hearst said. made the fashion show cut.” Paris. I just love her sense of whimsy…. and stacks of her new book. “It’s a home possible idea for the holiday. She added that she’s working on her fall Twenty-year-old Hadid is following in When you see it, you know it’s Sacai. store, so it’s like inviting people to your “Of course, the most important part is collection — “full steam” — while simulta- the footsteps of older sister Gigi, who ap- There’s always a sense of volume, home without having to have it in your own celebrating with people you love…at the neously gearing up for the International peared in the show last year. On Tuesday, proportion, femininity and texture…and living room,” said Miller, holding court by the end of the day it’s really just about being Woolmark Prize competition in January. the Hadid sisters were both nominated for everybody can wear it their own way.” elevators on the third-floor space. She had together,” she added. “Every day is a par- She was the winner of Woolmark’s wom- Model of the Year at the Fashion Awards — KRISTI GARCED Memo Pad

Hearst president and chief Chasing Sky Vision executive officer Steven Swartz Hearst has acquired Camp welcomed Camp ceo Ken Gray Chastain Systems International Inc., an avi- and president Vibby Gottemukka- Prada has tapped Jessica ation software company, from pri- la to the Hearst family. Chastain to appear in its resort vate equity firm GTCR. The terms Hearst Business Media 2017 advertising campaign. of the deal were not disclosed. president Richard Malloch added: Celebrating the roots of the Aside from its media properties, “We look forward to partnering fashion brand, photographer Willy Hearst has a diverse investment with the Camp team to capitalize Vanderperre shot the American portfolio, which includes informa- on new opportunities to create actress in several iconic locations tion-based companies. more growth, expand its global in Milan, including the Ulrico Hoepli In recent months, GTCR had reach and develop new offerings. civic planetary, as well as the Fon- been exploring the sale of Camp, Hearst Business Media is com- dazione Prada, unveiled last year. which according to reports, was mitted to growing our information The dynamic black-and-white valued “as much as” $2 billion. In solutions businesses, developing and color images, reminiscent of 2012, GTR acquired Camp from new capabilities and entering movie frames, feature Chastain Warburg Pincus for $675 million. new markets.” sporting ready-to-wear and ac- According to Hearst, Camp is Gray offered: “We are delight- cessories key pieces of Prada’s a global provider of “software-as- ed to join Hearst’s family of mar- resort collection, which includes a-service” solutions for managing ket-leading companies. We know a range of essentials, such as a and tracking the maintenance that Hearst’s management team nylon trenchcoat and a little black of jets, turbo prop aircraft and is committed to our success, and dress, all infused with the label’s helicopters used in business our customers and employees irreverent elegance. aviation, in addition to enterprise will benefit from our partnership.” Chastain, who was seated information systems used to “Our partnership with Ken An image from the Prada resort front row at the brand’s men’s manage service centers. and Vibby and the whole Camp 2017 advertising campaign. wear runway show last June, Headquartered in Merrimack, management team has been wore Prada in several occasions, N.H., Camp has 12 offices around incredibly rewarding, and we are Bondy. “Hearst is a terrific home Bank also serving as financial Clifford Chance US LLP providing including the latest Met Gala. the world, and it serves more proud of the strategic growth and for this world-class business.” advisers. Kirkland & Ellis LLP pro- outside legal counsel. The advertising campaign will than 19,000 aircraft, 30,000 transformation that our invest- UBS served as lead financial vided legal counsel to Camp and — ALEXANDRA STEIGRAD make its international debut on engines and 1,300 maintenance ment has helped deliver,” said adviser to Camp and GTCR with GTCR. PJT Partners served as facilities globally. onzalo Marroquin/Patrick McMullan; Prada by Willy Vanderperre by McMullan; Prada Marroquin/Patrick G onzalo by Miller photograph Monday. — ALESSANDRA TURRA GTCR managing director Craig Goldman Sachs and Deutsche financial adviser to Hearst, with