FEDS ARREST JACOB THE JEWELER/2 Women’s Wear Daily • The Retailers’ Daily Newspaper • June 16, 2006 • $2.00

WWDFRIDAY ▲ Sisley’s new Soir de Lune, page 7. Beauty Seeking A Cure NEW YORK — After the success of their women’s scent, Flowerbomb, designers Viktor Horsting and Rolf Snoeren are hoping to shake up the fragrance category a bit more this fall. Their fi rst men’s fragrance, Antidote, is due on counter in September in about 150 upscale specialty stores in the U.S. Industry sources estimate it will do at least $2 million at retail its fi rst year. For more, see page 6.

NO; STYLED BY MEGAN MCINTYRE NO; STYLED BY Pumping Up Penney’s: Store Said Mulling Exclusive Line With Polo By Vicki M. Young high-flying Polo for the moderate been broached by the two sides NEW YORK — Does Penney’s chief department store giant could and could involve a wide range SOIR DE LUNE BY JOHN AQUI BY SOIR DE LUNE executive officer, Myron E. be a boon to the bottom lines of of products in men’s, women’s, “Mike” Ullman 3rd, have Ralph both public companies and could children’s and home. A deal might Lauren’s ear? happen sometime next year. be structured that’s similar to Sources indicate that a “dream” While any prospective deal is Lauren’s exclusive agreement with prospect of an exclusive line by far from fruition, the subject has See Penney’s, Page 14 ANTIDOTE PHOTO BY THOMAS IANNACCONE; ANTIDOTE PHOTO BY 2 WWD, FRIDAY, JUNE 16, 2006 WWD.COM Feds Bust Jacob the Jeweler

By Sophia Chabbott Jacob Arabov in his 57th Street store. Inset: NEW YORK — The king of bling, Jacob Arabov, WWDFRIDAY Jewelry from Jacob & Co. Beauty founder of Jacob & Co., was arrested Thursday on federal money laundering charges at his 57th Street fl agship here. FASHION Federal prosecutors charged that Arabov, 41, Sonia Rykiel took a page out of Jeanne Moreau’s getup in “Jules et Jim” participated in a scheme to launder more than 4 for cruise, and photo inspiration played a part in Tory Burch’s resort looks. $270 million in illegal narcotics proceeds involv- ing a Detroit-based drug organization called the Black Mafi a Family. He was named in a supersed- GENERAL Is an exclusive line by Polo Ralph Lauren for J.C. Penney in the offi ng? ing indictment of 16 people that was returned May 10 and unsealed on Thursday. 1 The subject has been broached, but any deal is far from fruition. The original indictment last year alleged that Jacob Arabov, founder of bling jeweler Jacob & Co., was arrested on 25 people operated the cocaine ring, starting in 2 federal money laundering charges Thursday at his New York fl agship. the Nineties, in the Detroit metropolitan area, and that the operation eventually spread to California, BEAUTY: Viktor Horsting and Rolf Snoeren claim to have come up with an Texas, Kentucky, Georgia and Missouri. 6 Antidote for boredom in the men’s fragrance world with their new scent. Arabov, who uses the surname Arabo profes- Jean Paul Gaultier and Beauté Prestige International are punching up his sionally, was charged on one count of money 7 U.S. fragrance business with the launch of Gaultier to the Power of Two. laundering. He was accused of selling jewelry that was purchased by alleged ringleaders Terry Avon had a tough start to 2006, but it’s fi ring back with a strong second- Lee Flenory, Demetrius Flenory and others. 8 half lineup backed by a major ad campaign and sampling program. Members of the drug organization would deposit “large amounts of cash derived from the sale of Classifi ed Advertisements...... 15 cocaine into various bank accounts; purchase ca- shier’s checks and money orders and wire trans- To e-mail reporters and editors at WWD, the address is fi rstname. fer these funds,” the U.S. Attorney’s offi ce for the [email protected], using the individual’s name. Eastern District of Michigan said in a statement. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- “These funds would then be used to purchase RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 191, NO. 127. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one ad- assets and pay personal expenses with the goal ditional issue in January and November, two additional issues in March, May, June, August and December, and three ad- of concealing the true source, nature and owner- ditional issues in February, April, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, ship of the funds.” Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and Prosecutors alleged that Arabov, C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; whose over-the-top diamond David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior Vice President_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance jewelry and watches are Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. status symbols in the Lil’ Kim, Jay-Z, Pharrell Williams, Diddy Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. hip-hop world, failed and Jessica Alba. Jacob & Co.’s target de- 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS to notify the Internal mographic now extends from corporate CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, Revenue Service types to Hollywood heavyweights. ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR after receiving large In 2004, Arabov purchased a DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. Please give both new and old address as printed on most recent label. sums of currency, Manhattan town house at 48 East 57th Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other money orders and Street to house his boutique, which is U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. cashier’s checks. designed to look like a diamond mine First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions Authorities have with its striated white Corian walls. The and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To seized a number of building also houses the fi rm’s sales of- subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make Jacob & Co. products, fi ce, watchmaker shop and jewelry re- our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise including a platinum pair facility. us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. watch with diamonds, Last year, Arabov launched his fi rst for- WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- a rose gold watch and mal women’s jewelry line, available ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, a custom-made platinum exclusively at the fi rm’s sole store, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED necklace with 107.2 carats of with prices starting at $3,000. Asscher-cut diamonds. Jacob & Co. watches are sold at If convicted, Arabov faces as many as the store, as well as through a 20 years in prison. He pleaded not guilty few independent fi ne jewelry and has been released on bail. and watch stores. Attorney Benjamin Brafman, who This spring, the com- Quote of the Week is representing Arabov, said in a state- pany rolled out an adver- ment that the arrest “is the result of an tising campaign, shot by “Acquisitions…are critical and unfortunate misunderstanding that we Rocco Laspata and Charles believe will be straightened out in the Decaro, touting women’s something we are very focused on.’’ next several weeks. We are confi dent jewelry and watches and that once the government is advised of starring model Helena — Emanuel Chirico, chief executive offi cer, all the facts surrounding these issues, Christensen. Phillips-Van Heusen that all of the charges against Mr. Arabov Arabov is also on the tech will be completely dismissed.” forefront. In March, the fi rm Arabov, a native of Tashkent, launched the Quentin, the Uzbekistan, started his fi ne jewelry busi- world’s fi rst watch with a 32-day ness on West 47th Street 20 years ago. He rose power reserve, a major feat in the to fame in the late Nineties after Faith Evans, world of Swiss watchmaking. In Brief then-wife of rapper Notorious B.I.G., told her In November, Arabov told WWD that his ulti- husband about Arabov, garnering him a cult-like mate goal is to have the cachet, venerability and following with entertainers who sang about him ubiquity of major Fifth Avenue jewelers like ● KOREAN TRADE FLAP: Sen. Max Baucus (D., Mont.) said in a as their ambassador of bling and included him in Harry Winston, Cartier and Van Cleef & Arpels. speech Thursday that a free-trade pact with South Korea was in their music videos. “When you come to Jacob & Co., it’s not just jeopardy. He cited South Korea’s insistence on giving duty-free His oversized diamond-laden and complicated bling, it’s an invitation,” said Arabov at the time. benefi ts to apparel, footwear and cosmetics products made in watches and custom-made jewelry pieces are fa- “Everything that I make, you will never see me an industrial park in North Korea, a nation the U.S. has cited vored by performers such as Beyoncé Knowles, copy.” as a nuclear threat. The U.S. and South Korea just completed the fi rst round of negotiations for a bilateral FTA and cited a number of contentious issues, including market access for U.S. agricultural and auto exports. A South Korean conglomerate runs the Kaesong Industrial Complex in North Korea. Seoul Rabanne Not Shipping for Fall has touted the industrial park as a test project that could help the capitalist and communist governments work toward reuni- PARIS — Paco Rabanne is in flux — but A look turing partnership and a possible re- fi cation. Many members of Congress oppose commercial ties not out of fashion. from positioning of its designer line. with North Korea. The Paris-based house, owned by the Patrick Robinson, an American Spain’s Puig Group, has informed re- runway. designer brought in to reenergize the tailers it will not ship its fall-winter house in 2004, is still working at Puig’s collection while it restructures, market 26th Street offi ces in Manhattan and sources said. is expected to remain at the design Corrections It is understood that the house aims helm. The description of cruise looks on page 1, Thursday, did not note to wind down its high-cost Paris opera- Mario Grauso, president of Puig that they were from Gucci. Frida Giannini is the Gucci designer. tions, which involve some 40 employ- Fashion Group, could not be reached for ● ● ● ees, but will not exit the apparel busi- comment on Thursday. It is understood Lauren Hutton’s beauty line has a customer database of 250,000 ness. Rabanne is said to be considering that Rabanne’s fragrance business is not names, gleaned from its infomercials. This number was incorrect several options, including a manufac- affected by the changes. in an article that appeared on page 12, June 9. PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY WWD, FRIDAY, JUNE 16, 2006 3 WWD.COM Fashion Scoops De Boni Optimistic on Boston Valentino By Sharon Edelson MOSS CASE CLOSED: Kate Moss’ alleged cocaine abuse may have generated untold media coverage and sparked months of police NEW YORK — Valentino has arrived in Boston, investigation, but it turns out that like her modeling career, her personal and Graziano de Boni likes what he sees. record will remain untarnished. Due to lack of evidence, the Crown De Boni, president and chief executive offi cer of Prosecution Service said Thursday it will not charge Moss as a result Valentino USA, was eager to gain exposure in the of the footage of her allegedly taking cocaine in a London recording Boston market, and when a 3,000-square-foot store studio last year. “As the available evidence fell short of establishing the on Newbury Street became available in January, he necessary crucial facts, we decided that there was no realistic prospect didn’t waste any time signing the lease. The store, of conviction,” said Rene Barclay, director of serious case work at the which opened last week, is expected to do “north of CPS, in a statement. Barclay added the footage of Moss, which fi rst $1,000 in sales per square foot,” he said. appeared in the Daily Mirror, was “an absolutely clear indication” that “The fi rst days were very encouraging,’’ de she was using controlled substances. However, with neither forensic nor Boni said. “We’ve had a steady fl ow of traffi c. A lot eyewitness evidence it was not possible to establish which drug it was, of people are curious to see the Valentino store, The Boston so no charge could be made. but we’ve also had some good business.” boutique. The end of the investigation will seal Moss’ career turnaround, De Boni has had his eye on the city because “the after the allegations initially caused jitters among her advertising entire metro Boston area is pretty much an open throughout the country is very limited. This is only clients. Since then, the model has fronted spring campaigns for Stella fi eld of opportunities,” he said. “Michele [Norsa, our seventh store. High-end, multibrand stores next McCartney, Roberto Cavalli and Longchamp, and is set to feature in fall ceo of Valentino Fashion Group] and I went there a to mono-brand stores is a complementary strategy.” campaigns for Versace, Calvin Klein Jeans and Louis Vuitton. couple of times. In terms of luxury designer stores, Valentino has completed the fi rst stage of its there are a few, but it’s not a crowded market. turnaround plan for the U.S., which accounts for RETAIL STAGE: Saks There’s an opportunity for newcomers to grab some 25 percent of sales and is the brand’s single big- Fifth Avenue might business. It’s a very European city.” gest market. The expansion began last year with have had a starring The Valentino store has double-height ceilings a new store in South Coast Plaza in Costa Mesa, role in last year’s and large windows. De Boni said the location on Calif. The company is looking for sites in San “Shopgirl,” but Newbury Street — a Chanel store is on the same Francisco, Chicago, Dallas, Atlanta and Houston. now it’s Bergdorf block — is the best on the retail thoroughfare. “We “In the future, we’ll open one or two stores a Goodman’s turn in fell in love with the location,” he said. year,” de Boni said. “Eventually, smaller markets the upcoming “The Neiman Marcus had been the brand’s only will be ripe for Valentino. We still have some key Nanny Diaries.” wholesale account in Boston until Barneys New markets where we want to go fi rst.” Star Scarlett York opened a fl agship at Copley Place in March Another goal for the company, which had sales Johansson spent a and began selling Valentino men’s wear. of $260 million in 2005, is to develop its accesso- day fi lming at the Several luxury brands have been giving Boston ries business. “It will be crucial to open in second- store, including a closer look. In addition to Barneys, Jimmy Choo ary markets,” de Boni said. “Accessories is grow- on the ground and Eli Tahari opened stores in the city this year. ing more than 40 percent a year.” Red Valentino, fl oor and in the Nord strom has plans to enter the Boston area in the jaunty line geared to a younger customer, is new BG restaurant 2007 with a store in Natick, Mass. also developing quickly. on the top level. De Boni sees no risk of the store cannibalizing “We want to promote the brand to a broader cli- And while the Valentino’s wholesale sales. “We can create new ent base,” de Boni said. He said a younger, modern, retailer gladly business,” he said. “We will continue selling to cutting-edge ad campaign will launch next month. accommodated Neiman Marcus and Barneys. We’re a strong be- “In the second half of year, we will increase our ad- the movie hordes, liever in multichannel distribution. Our presence vertising budget so we get better visibility.” the tills kept ringing: A section of the ground fl oor was blocked off throughout the Nathan Bogle Parting Ways With Rag & Bone day, but shoppers otherwise could NEW YORK — Rag & Bone is expected to announce for,” Wainwright said, “We will continue to run the use their credit today that Nathan Bogle is leaving the label he co- business, which is going so well for us. We have no cards at will. founded with Marcus Wainwright in 2001. plans to change the direction we are going in.” “They could still “I have made a decision to part “It was not that dramatic, just a buy whatever they ways,” said Bogle on Thursday. “It was a Nathan parting of ways,” Wainwright added wanted,” said a Scarlett Johansson on the set of “The Nanny Diaries.” tough call but I had to make it. It’s come Bogle of Bogle’s departure. “We had slightly spokeswoman for about through some differences in de- different views on where we would the fi lm. “Except, of course, the scarves Scarlett was looking at or the sign and ambitions for the company.” be going and the kinds of clothes we hat she was holding.” Of course: Those probably would have ended up Although founded in 2001, Rag & should be making. We got to a point on eBay in a nanosecond. Bone offi cially launched with a men’s where we both felt the best thing for The movie, which is being directed by Shari Springer Berman and wear collection for spring 2004, which him was to move on, so that he could Robert Pulcini, stars Laura Linney and Paul Giamatti and will open was followed by women’s wear for fall focus on what he wanted to do.” sometime in 2007. 2005. For the launch collection, the THOMAS IANNACCONE PHOTO BY Separations could become a trend designers initially focused on denim, this season. Just last week, Josia but quickly expanded with sportswear. Lamberto-Egan said he was leaving the Rag & Bone is sold in stores such as Trovata foursome, which won the Perry Barneys New York, Louis Boston, Nom Ellis award for emerging talent at the de Guerre and Harrods. This fall, the 2006 CFDA Fashion Awards, for which Yigal Azrouël Gets Partner line will be sold in 200 doors. Rag & Bone was also nominated. Bogle indicated there were cre- Bogle, a former model, is already ative differences, and he wanted to working on his next move — a collec- For Overseas Wholesaling work on a more upscale line, while tion to launch for fall 2007. “Right now, the other partners wanted to keep Rag & Bone a I am still in transition mode, but it will be with a NEW YORK — Yigal Azrouël is the latest designer to venture more contemporary sportswear collection. The fall couple of new designers, or maybe a slightly larger overseas, by wholesaling internationally for the first time. 2006 collection is the last one Bogle contributed team than what we had at Rag & Bone,” he said. The company has partnered with the Studio Zeta showroom to. Wainwright and David Neville, who became a While he hasn’t decided on a name for it, he said it in Milan to sell its ready-to-wear collection, but domestic ac- partner in the fi rm in 2004, will continue operating would be “a new luxury concept. It will probably be counts will still be handled by the showroom here. Azrouël’s Rag & Bone. pitching at a higher end than Rag & Bone.” spring pre-collection will debut July 1 in Italy. “We are very focused on what the brand stands — Marc Karimzadeh Donata Minelli, managing director of the New York-made label, said, “We feel like we are in a comfortable place in re- gard to our base distribution in the U.S. We were getting a lot of interest from international stores via our Web site and by those who were visiting our New York boutique.” Kellwood Names CEO for Halmode The company expects to open new business in 18 countries through 45 retailers within the next year, she said. Russia, NEW YORK — James Weinberg has been named ny to Kellwood Co. Until that point, Halmode had Germany, Italy, the Middle East and England are particular chief executive offi cer of Kellwood’s Halmode suit been an independent company for 25 years, produc- areas of interests. and dress division, effective Aug. 1. ing dresses for the mass market. Adler, who eventu- Azrouël plans to spend a considerable amount of time in the With more than 20 years of experience in the ally became chairman of the division before retir- new showroom and in Italy, where he sources fabrics. retail industry, Weinberg spent most of his career ing, kept Diamond at the fi rm as president and ceo. “As our distribution opens up in different countries, Yigal with the May Co. in merchandising and buying po- Under Kellwood’s umbrella, the brand has will be making more special appearances,” Minelli said. He sitions in women’s apparel. Most recently, he was grown to become a more diverse division, produc- will make his fi rst personal appearance at Harrods in London a senior vice president and general merchandise ing knit and woven dresses and suits for brands on Wednesday. manager for Robinsons-May. such as Liz Claiborne, Sag Harbor, JH Collectibles A self-taught designer, Azrouël started his business in 1997 Weinberg will succeed Jay Diamond, Halmode’s and Emma James, as well as dresses under the in Miami and opened a showroom here two years later. Faux current ceo, who announced his retirement in Plaza South, Koret and Miss Dorby labels. layering, hand embroidery, and unexpected fabric and textures May. Diamond will leave the fi rm on Aug. 1. Weinberg is based in Kellwood’s offi ces here combinations are some of his signature techniques. Diamond has been with Halmode for almost and reports to Robert C. Skinner Jr., chairman, — Rosemary Feitelberg 30 years. In August 1994, Diamond’s partner and president and ceo of Kellwood. founder of Halmode, Robert Adler, sold the compa- — Julee Greenberg 4 WWD, FRIDAY, JUNE 16, 2006

Ellen Tracy Play Makers SONIA RYKIEL TOOK A PAGE OUT of Jeanne Moreau’s garçon getup in “Jules et Jim” for cruise. She featured fl oppy cloche hats; boyish, rolled-up baggy pants, and chunky cotton knits — belted on high — in sugary hues of violet and cream. And a bell-sleeve cotton satin trench over a whimsical cotton lace dress was perfect for a day out at Deauville. A playful spirit was also in evidence at Celine. Designer Ivana Omazic had Jacques Henri Lartigue photos of Biarritz in mind for her cruise collection of ladylike sportswear, and she made sly references to Asia with origami- like bows on cocktail dresses and lacquer-like beading on gowns. Photographic inspiration also played a part in Tory Burch’s resort looks, but instead of old lensmasters, she looked to shots of her parents honeymooning in Acapulco in the Sixties, as well as to artist Frida Kahlo. Burch showed embroidered dresses and tunics in vivid colors, ruffl ed nylon windbreakers and plenty of her signature polos for the season. Meanwhile, at Ellen Tracy, “it’s always about color,” according to design director George Sharp. Bright orange and celery greens popped out among a neutral palette of beige and white in his cruise collection of sharp career pieces, such as great suits and trenches, but there was also a touch of spice in the washed- silk white cargoes and a paisley-printed silk skirt.

Tory Burch Ellen Tracy Tory Burch WWD, FRIDAY, JUNE 16, 2006 5 WWD.COM ▲

▲ Celine ▲

▲ Sonia Rykiel PHOTOS BY JOHN AQUINO AND DOMINIQUE MAITRE PHOTOS BY 6 WWD, FRIDAY, JUNE 16, 2006 The Beauty Report Viktor & Rolf’s Cure for Boredom Radical Departure items. NEW YORK — Viktor Horsting and Rolf Snoeren claim to have of Wainwright’s show Thursday. come up with a solution for boredom in the men’s fragrance The juice, by Alienor Massenet and Pierre Wargnye world. That’s why they called their new scent Antidote. of International Flavors & Fragrances, is a rich, woody It is slated for a September launch. oriental. Top notes are of mint leaves, Italian bergamot, While most designers would follow up a successful fra- mandarin orange, essence of grapefruit and essence of grance by creating a masterbrand, using a variation of the Guatemalan cardamom; the heart is of sambac jasmine ab- same name, Horsting and Snoeren are planning to follow last solute, essence of French lavender, essence of African ge- year’s successful Flowerbomb women’s fragrance with this ranium, essence of nutmeg, cinnamon bark extract, freesia, completely unrelated men’s project — a move as quirky as orange blossom and violet, and the drydown is of amber, the duo themselves. essence of Indonesian patchouli, cistus labdanum absolute “Viktor and Rolf wanted to create a completely new project vanilla, iris, sandalwood, Texan white cedar, essence of — and, as a concept, that made guaiacum wood, tree moss, more sense,” said Jack Wiswall, The antidote ad. leather, white musk and president of the Designer tonka bean. IFF also creat- Fragrances Division of L’Oréal ed Flowerbomb for L’Oréal. USA, which holds the Viktor The bottle, designed by Radical Departure & Rolf fragrance license. Next Fabien Baron, is clear glass month, Wiswall will pass the with beveled edges, with reins to Serge Jureidini, cur- a black top stamped with rently the general manager of a wax seal. A silver-toned Offers a Quick Fix the company’s Giorgio Armani plate on the bottle’s front is Beauty business in the U.S. stamped with the Antidote NEW YORK — With the launch of “Flowerbomb on its own is name and the designers’ her new skin care regimen, Radical great for women and has been names. The juice inside is Departure, Ava Shamban, M.D., is hop- very successful, but the concept tinted green. ing to give beauty consumers a quick didn’t really translate to the Antidote will be available fix for better-looking skin. men’s market,” Wiswall said. in just 150 Saks Fifth Avenue Promising “two weeks to great Added Ladan Lari, global and Nordstrom doors in the skin,” Shamban, owner of the managing director for Viktor U.S., said Wiswall. California-based Laser Institute for & Rolf Fragrances, “Antidote In keeping with the fra- Dermatology and European Skin Care, is a very personal fragrance grance’s tight distribution created the line Radical Departure from Viktor & Rolf. Not only to upscale specialty stores, for women who are noticing that their were they extremely involved pricing is “aggressive but skin care routines aren’t working or in the creation of the fra- nice,” said Wiswall. The have a short time period to get their grance, but it also expresses 1.7-oz. eau de toilette will skin looking good. It joins the AVA MD the value of their Monsieur retail for $65 and the 4.2- line of products. fashion collection.” The oz. size will retail for $90. The line, which is rolling out now, Monsieur ready-to-wear line Two ancillaries will be of- features four items sold together in a was launched in 2003. fered, an aftershave balm $125 kit. Orange Calendula Wash is a The Antidote moniker is for $45 and an aftershave sulfate-free gentle cleanser that fea- intended to “change anything spray for $55. The eaux de tures natural orange oil, calendula negative into a positive,” said toilette will be launched in and white tea to purify, soothe and Ulli Lindauer, assistant vice September and the ancil- reduce redness, lines and wrinkles. president of marketing for laries, in October. The antioxidant mist, which Shamban L’Oréal’s European Designer Fragrances division. “Our mis- National advertising for Antidote, shot by Inez van recommends using daily underneath sion as fragrance creators is to turn dreams into reality, and Lamsweerde and Vinoodh Matadin under the direction of makeup, contains a triple antioxidant Antidote is the perfect antidote to reality.” Baron, will break in a few October men’s and lifestyle maga- complex said to protect against irri- To drive home how important the scent is to L’Oréal, the zines. In-store sampling will also be part of the strategy. In tation and oxidative stress, as well as executive team decided to introduce the fragrance to the total, the company is looking for at least one million scented promote cell renewal and soothe skin. U.S. press last night, at singer/songwriter Rufus Wainwright’s impressions, said Wiswall. The AHA+BHA lotion contains sugar two-day engagement at Carnegie Hall. The musician — a While none of the executives would discuss projected sales cane, soy and lemon, which are said longtime Viktor & Rolf fan who often wears the designers’ or advertising spending, industry sources estimated Antidote to work together to promote skin re- creations while performing — is reprising Judy Garland’s would do at least $2 million at retail in the U.S., and $500,000 to newal. The retinol serum, which is to April 1961 Carnegie Hall concert. L’Oréal also scheduled a $1 million will be earmarked for advertising and promotion. be used nightly, is intended to enhance launch party upstairs at Carnegie Hall after the conclusion — Julie Naughton elasticity and tones the skin. “I wanted to keep the line as bo- tanical as possible,” Shamban said. “I think that nature is smarter than we are.” Aveda Enters Acne Market Shamban, who has been in derma- tology for 17 years, said her inspira- NEW YORK — Aveda is hoping that the acne-ridden tion to create the line came after a will give peace a chance. stint as head dermatologist on the With an eye toward calming the open warfare of reality-based ABC-TV show “Extreme breakouts and blemishes on the skin, the company Makeover” two-and-a-half years ago. has called its fi rst acne line Outer Peace. Shamban said that many people on The four-stockkeeping-unit at-home line, set for a the show had deformities that were July launch, consists of Foaming Cleanser, $24 for 4.2 oz.; challenging. The team would often Acne Relief Pads, $36 for 50 pads; Spot Relief, $38 for 1.7 have to work on tight deadlines to oz., and Acne Relief Lotion, $28 for 0.5 oz. produce quick results for the skin, The collection’s key ingredient is what Aveda char- and Shamban said the experience led acterizes as the fi rst naturally derived salicylic acid, her to create a line of products that derived from wintergreen oil. In addition to this ingre- can be used every other month for a dient, the collection also includes tamanu oil, said to 14-day period. possess anti-irritant and antioxidant benefi ts; saw pal- “I decided to name it Radical metto, said to be a natural anti-irritant; boswellia ser- Departure, because it’s a radical rata, drawn from tree resin and said to support skin’s departure that you’re getting out of overall function; emblica offi cinalis, an antioxidant-rich your regular skin care and it’s get- berry that is popular in ayurvedic remedies, and lemon, ting rid of radicals in your skin,” she tea tree and rose geranium essential oils, noted Krista said. Kiley, director of spa education for Aveda. Shamban hopes Radical Departure Aveda is sourcing its tamanu oil from the Vanuatu will generate $2 million in fi rst-year Islands in the South Pacifi c. The oil is harvested from retail sales. She’s also creating a main- nuts produced by indigenous trees and is said to offer in- tenance line for acne and regular skin tensive moisturizing properties in addition to its anti-ir- care to roll out next year. ritant and antioxidant properties. Aveda fi rst used the in- Other products in the AVA MD line gredient in its Damage Remedy Hair and Scalp Renewal are Sun Security SPF 25 Sunscreen treatment, introduced last fall, noted Kiley. Outer Peace Lotion, $35, and Eye Site Restorative will be available in about 3,000 salons and spas in the Cream, $65. U.S., as well as at Aveda’s Environmental Lifestyle Stores. All AVA MD products are available Industry sources estimated that Outer Peace could do $10 at Barneys New York doors and at the million in fi rst-year retail sales in the U.S. Laser Institute for Dermatology. — J.N. — Andrea Arterbery WWD, FRIDAY, JUNE 16, 2006 7

WWD.COM

Sisley’s new Gaultier to Power U.S. Business Soir de Lune. By Matthew W. Evans magnets on the back of the bottles match up, attract- ing them with a distinctive sound: “It’s the fragrance NEW YORK — Jean Paul Gaultier and his Paris- with a click,” said Gomez. “It’s about attraction.” The based fragrance licensee, Beauté Prestige 40-ml. pair, which is priced in the U.S. at $75 for both, International, want to put some punch into the de- is the best-selling item in the collection, he noted. signer’s U.S. fragrance business with the launch of Gomez described the scent as a rich, sensual his Gaultier to the Power of Two. Oriental with amber, vanilla, woods and musk. After being introduced in Europe last “There’s a trend in the U.S., tastes are changing September, the scent is set to make its U.S. debut to more Oriental and sensual [scents],” he said. at Bloomingdale’s Aug. 1, followed by a wider roll- Francis Kurkdjian, who was at Quest International out in mid-September. when the scent was being developed, blended the “We waited a year to come to the U.S. to build fragrance. Kurkdjian is now at Takasago. a long-term [business],” Remy Gomez, president of After the launch at Bloomingdale’s, BPI, said of Gaultier to the Power of Two. Gaultier to the Power of Two will be rolled He cited as an example the Narciso Rodriguez out to about 800 points of sale in the U.S., Sisley Makes a Break fragrance business, which is also licensed to BPI, a including Neiman Marcus, Saks Fifth fi rm that generates total annual retail sales in excess Avenue and Nordstrom locations. of $400 million, according to market estimates. Industry sources estimate the “We launched [Narciso Rodriguez scent could do retail sales volume From Fragrance Pack in] the U.S., the U.K. and Spain of roughly $7 million in its fi rst four and 18 to 24 months later months in the U.S. on a promotion- LONDON — Sisley hopes its latest women’s fragrance, Soir [rolled out the scent].” al budget of around $4 million. de Lune (moonlit night, in English), will stand out from the The idea is to “build Gomez’s plans call for the plethora of other scented products set to bow this fall. Its a Narciso Rodriguez scent to be carried either on the price point certainly will, at $100 for 30 ml. in the U.S. fragrance house over men’s or women’s fragrance bar. “It’s very romantic,” said company founder Hubert the long term. “It’s 50-50 in Europe,” he noted. d’Ornano, at a launch hosted by him and his wife, Isabelle “We try to invent a So far, Gaultier to the Power of d’Ornano, in their chic Knightsbridge pied-à-terre here. different way of doing Two has generated some $50 mil- Their son, Philippe d’Ornano, general manager of Sisley things,” Gomez added. lion in wholesale sales in 5,000 Cosmetics Worldwide, introduced it to the American press And the positioning for doors in Europe and in portions in New York last week. Gaultier to the Power of of the Asian market, according Soir de Lune is the third pillar in the French brand’s Two is certainly intended to industry sources. It’s achieved scent portfolio, which comprises Eau du Soir, introduced to be different. Avoiding The 40-ml. version of Gaultier to the Power of Two. more than 70 percent sell-through in 1990, and Eau de Campagne, which bowed in 1974. descriptions like “uni- in the fi rst quarter of 2006. “You can do a fragrance for a season, or a lifetime,” said sex” or “gender-less” when describing Gaultier to While in the bigger BPI picture Gaultier is a Philippe d’Ornano. “We are choosing to build a fragrance the Power of Two, Gomez, rather, calls the scent “pillar,” along with the fi rm’s Issey Miyake fra- that will last a lifetime.” “gender-full — not genderless like cK One.” grance business, the Rodriguez franchise “con- In today’s voracious market, Sisley’s leisurely launch Gomez maintains that back in the early days tinues its outstanding success worldwide,” Gomez pace is highly unusual. “We’re not in the business of of the 19th century, there was no “gender [in] fra- said. He added that in Rodriguez’s 3,000 global launching a fragrance every year,” said Christine d’Ornano, grance,” and no marketing differences. Only in doors, the designer’s scent ranks within the top Sisley’s founders’ daughter and managing director of the modern times did “This is for men, this is for three or four fragrances in each door. company’s U.K. and Ireland subsidiary. “It’s really a very women” become selling points. “Fragrances and “Since the beginning of the year, [BPI] has been personal affair. My mother is very involved in the develop- the ingredients used were exactly the same for men registering above 20 percent [wholesale] growth ment of the fragrance, and we do what we think personally and women,” he said. “They were not split.” He said overall,” noted Gomez, who added that Miyake, we want to launch.” the Gaultier to the Power of Two concept refl ects a Gaultier and Rodriguez were each experiencing The company has been ruminating over the launch for “sexy, sensual attraction” either between a man and double-digit growth. some time, explained Hubert d’Ornano. “Seven or eight a woman, “two women or two men.” Since its intro- In the U.S., Gaultier to the Power of Two will fea- years ago, we worked with Isabelle on a new fragrance,” he duction in Europe, women have accounted for 58 ture six items, including the 40-ml. pair of scents. recalled. “She found a new fragrance that she liked very percent of purchasers and men for 42 percent. The 40-ml. bottle will also be marketed alone for much, and she put it in the cupboard to let it sleep a little “Gaultier is a surge of ideas,” Gomez said of the de- $49 and a 120-ml. bottle — also with magnets — will bit.” The project was resurrected in recent years and its signer, “but the product has to be simple and straight- retail for $85. There will also be massage oil and af- development process was restarted. forward, easily understood and fi t together.” And fi t tershave, both 100 ml., for $38 and $40, respectively. Concocted by International Flavors & Fragrances per- together the scent’s 40-ml. bottles do. A set of four A 6.7-oz. body lotion will be priced at $42. fumers, the fl oral chypre juice comprises top notes of ber- gamot, mandarin, lemon, coriander, nutmeg and capsicum pepper oils. At the blend’s heart are notes of May rose centi- folia and mimosa fl ower absolute, jasmine, lily of the valley, iris and peach. Woody moss, musk, honey, sandalwood and Grapes Inspire L’Occitane Line for Fall Indonesian patchouli notes are featured in the drydown. Soir de Lune’s round bottle is fl at at the front and back, NEW YORK — After celebrating its 30th anniversary this month, L’Occitane is planning to launch its with its name engraved on its front face. It is topped by a second body care line this fall — a fi ve-stockkeeping-unit collection inspired by grapes, a Provencal silver-plated sculpture-like cap designed by Polish artist staple rich in minerals, organic acids and fi bers. Bronislaw Krzysztof, and depicts a woman embracing a The new items are rich in red vine leaf, grapeseed oil and grapeseed powder extract from the man’s face carved into a crescent moon. “The artist came to Muscat and Laveallee grapes grown in Ansoues, France. When used in beauty products, these in- have lunch with my parents, and the idea of a new fragrance gredients stimulate drainage, nourish the skin with vitamin E and fatty acids and exfoliate, said was mentioned,” remembered Philippe d’Ornano. “He asked Christophe Amigorena, managing director of L’Occitane. if he could make some designs for it. Eight months later, he The company is positioning the new Grape Anti-Water Retention Gel, out in September, as the came back for lunch with 20 bottle cap designs.” line’s standout. “Improving the microcirculation reduces the water retention in the tissue of the The new fragrance’s outer packaging is white and has a skin, while at the same time eliminates toxins,” said Amigorena. “It’s the fi rst product in our com- sprinkling of gold dots, reminiscent of stars in a night sky. pany that provides this kind of benefi t to our consumers.” The eau de parfum will be available as 30-, 50- and 100-ml. Other September launches are Crushed Grape Polish, 6.7 oz. for $26, including grapeseed and wal- sprays. In the U.S., in addition to the 30-ml. size for $100, nut shell particles; Grape Warming Body Wrap, a combination of pink and white mud, cypress essential the other two will cost $145 and $200, respectively. oil and grapeseed oil said to detoxify the body, $30 for 6.7 oz.; Grape Shower Oil, $20 for 8.4 oz., and The fragrance will enter many global markets in Grape Beauty Milk, a shimmering moisturizer, $21 for 6.7 oz. September, with an exclusive planned for London’s The line will be available in about 600 doors, including Harrods in August. In the U.S., it will be sold in upscale L’Occitane’s 144 stores in the U.S. specialty stores, including Saks Fifth Avenue, Bergdorf L’Occitane also plans to open 18 stores in Goodman and Neiman Marcus, for a total of about 85 doors the U.S. by the end of the year. The com- in the U.S. pany now has retail distribution in 716 The scent’s launch will be backed by a single-page ad- stores in more than 70 countries, includ- vertising campaign featuring the fl acon and a collage of in- ing the U.S. terior details of a room in the d’Ornano’s art-fi lled home. Although executives would not com- It was decorated while Soir de Lune was in development. ment, industry sources estimate the line “It was our mood,” said Isabelle d’Ornano, referring to the will bring in about $2 million in retail sales lavish salon complete with a colorful gilded and paneled in the fi rst year in the U.S. By the end of the ceiling. “This house carries what we like now.” fi scal year, the company hopes to do a total “It’s interesting to present the perfume with interiors of $120 million in the U.S. and $250 million representing the surroundings of the people who created worldwide. it,” said Philippe d’Ornano. The company plans to fi nish off the year A sampling drive will include miniatures and vials. with the debut of a sixth harvest line, which Sisley executives declined to comment on sales forecasts, is scheduled to be launched in time for the but industry sources estimate the scent will do $6 million holidays. at retail in the U.S. in its fi rst year. L’Occitane’s grape-inspired collection. — Michelle Edgar — Brid Costello and Julie Naughton, New York PHOTO BY GEORGE CHINSEE PHOTO BY 8 WWD, FRIDAY, JUNE 16, 2006 The Beauty Report Avon Aims for Strong Finish to 2006 Mary Kay Gives Some By Michelle Edgar production with a cooling effect. “It’s an at-home solution to dermatological procedures,” NEW YORK — Avon may have had a tough start to said Scalamandre. “It’s a new wave in facelifting.” ‘Affection’ With Scent 2006, but the company is firing back with a strong sec- The formula contains ultrasonic yeast, natural ond-half lineup backed by an aggressive advertising extracts and hydrolyzed plant proteins that are de- NEW YORK — Mary Kay this fall plans to give its cus- campaign and sampling program. signed to tighten the skin’s layers. Fennel, apple root tomers Affection, a new fragrance designed to push “Avon continues to sharpen its brand competitive- and corn kernel extracts also help stimulate collagen, the direct seller into the realm of premium price ness by introducing products that connect with con- elastin and fi bronectin — or proteins linking dermal points. sumers on both a brand and innovation level,” said Jill fi bers together. “The Affection launch is the next step in expand- Scalamandre, senior vice president of global beauty According to Avon’s consumer testing, 51 percent ing our product offering to today’s modern woman,” brands for Avon. of women who used the product for eight weeks saw said Yvette Franco, vice president of brand develop- Scalamandre declared that Avon is a multiplatform improved tightness in the skin. Customers who tried ment for Mary Kay. “The product says something a brand that has turned solving skin care problems into the products found the skin’s cushion to be improved little different about who we are and who Mary Kay is a science. In keeping with its mission to connect with by 46 percent. The facelifting cream will be available today. With its updated and sophisticated packaging, women, the company has divided consumers into two in September for $32 and supported by print and TV along with its unique scent, we believe it will become categories: the “age warrior” who uses products from ads, along with four million one-week-supply samples a premier luxury fragrance.” Avon’s Anew line, and the “age manager” who uses that will be given with any July purchase. Affection, May Kay’s 10th scent and seventh wom- products from Avon’s Solutions brand. Finally, in November, Avon will launch its annu- en’s fragrance, will be available in September for $50 “The age warriors are driven to stay ahead of the al fine fragrance, Crystal Aura. for a 1-oz. bottle. aging process. They want up-to-the-minute technology Scalamandre said the eau de par- Housed in a curvy glass bottle, the scent is described and are on top of trends,” said Scalamandre. She noted fum will be a sophisticated fl oral as a modern orien- Mary Kay’s Affection. that these customers are looking for at-home versions of fragrance housed in a rectangu- tal chypre with treatments offered at dermatologists’ offi ces. lar purple bottle mimicking the notes of pink pep- “The age managers are not obsessed with shape of a gem. The fragrance, percorn, Chinese fighting the signs of aging, $26, was developed by Bruno osmanthus, white but more interested in look- Jovanovic at International Flavors peony and amber ing ahead and proactively & Fragrances and has notes of star woods. Mary Kay managing a healthy facial fruit, amethyst rose, musk and fragrance experts skin care routine,” said woods. To add the fi nal touch, Avon worked with per- Scalamandre. She noted that worked with Swarovski to create fumer Claude the group uses the Solutions a dual-purpose pendant that is Dir from Quest line and tends to be younger. an accessory to the bottle design International to The first antiaging line and can be removed and worn on develop the scent. launching under Avon a necklace. To increase the pen- “It has such Solutions is Ageless Results, dant’s “wearability,” Avon will offer a modern feel, a three-item group with nu- a satin chord and silver chain as a but with an Asian trients and supplements de- gift with purchase. nod,” said Franco. signed to restore the skin by In October, 12 million impressions “Everything about it improving its texture and clar- will go out to consumers and sales speaks to the now, and it ity. Soy was added to stimulate representatives. Though there will be makes a bold statement. These are cellular repair, vitamin antioxi- Select new Avon items. no print or TV advertising, there will things not everyone’s expecting from us.” dants to prevent premature aging be a designated Web site for the product, Despite the fragrance’s higher price, Franco and peptides to fi rm the skin and reduce wrinkles. an e-mail campaign and a sweepstakes for consumers and anticipates Affection will be its biggest launch, The formula was developed by three skin care ex- representatives based on the fragrance launch. doubling the sales of the company’s most popular perts: pharmacologist Janice Teal, nutritionist June As an extension to the color collection, Avon will scent, Belara. Although company executives would Lay and biochemist Xiaochun Luo. Dubbed the Avon also launch SuperFull Mascara, a volumizing mascara not comment, industry sources estimate Affection Daily Skin Allowance, the three Ageless Results prod- with Avon’s patented Clean Build Brush, a thermo- will bring in $10 million in retail sales its fi rst ucts include Renewing Day Cream SPF 15, Renewing plastic design that is said to create natural volume year. Night Cream and the Anti-Aging Eye Treatment. The and fullness by separating and combining the lashes. National print advertising will break in roughly products range in price from $12.50 for a 0.5-oz. eye The antistatic building formula helps reduce clump- 25 December women’s, lifestyle and fashion maga- cream to $14.50 for a 1.7-oz. day and night cream. ing, according to the company. The mascara launches zines including O, the Oprah Magazine; Real Simple; “This Solutions launch will help us build a broader in August and will be sold for $8.50. Salma Hayek will Latina; In Style, and Parenting. Over 28 million sam- customer base, while providing products at a more ac- appear in TV and print advertising set to break this ples will be distributed with the company’s catalogue, cessible price point,” said Scalamandre. fall — September for television and October for print. sales force publication and in magazine advertising. While the day and night creams will be available in According to Lily Pulido-DeStefano, executive di- Mary Kay’s 700,000 U.S. consultants will provide sin- July, the eye treatment will be available in September. rector of marketing for U.S. fragrance, Avon will dis- gle-use towelette samples to customers and potential Both the print and television advertising campaigns tribute over 24 million samples on major launches in customers. A limited-edition gift set will be available will break in July, along with 2.5 million samples that the second half of the year. for $55 that includes a solid fragrance compact, show- representatives will begin handing out next month. “We are committed to increasing our level of direct- er gel and body lotion. Also in September, Avon plans to launch Anew to-consumer and direct-to-representative sampling — The fragrance will be available fi rst through Mary Clinical ThermaFirm Facial Lifting Cream, designed which has proven to be a key driver in our business,” Kay’s U.S. consultants. After a slow international roll- to lift, tighten and fi rm the skin through Triple-Sonic said Pulido-DeStefano. out, 1.6 million consultants will be selling Affection. technology, which the company says incorporates Industry sources estimate these global launches — M.E.

radio waves, said to stimulate and strengthen collagen will generate $160 million in sales. THOMAS IANNACCONE ALL PHOTOS BY

organic actives and natural ingredients and is free of preservatives, fragrances, dyes and phthalates. NOe Cosmetics: Good Enough to Eat To make its 100 percent natural claim “blatantly obvious,” product labels NEW YORK — Advanced Formulations is putting its products where contain a detailed ingredient list. its mouth is. Campbell acknowledged that the organic personal care market may be Using food-grade ingredients, the U.K. beauty fi rm has created small, but said people are increasingly interested in what they put on their a line of edible, organic skin care products called NOe Cosmetics skin. He noted that 60 percent of products that are topically applied seep (“NOe” stands for “Natural Organic Edible”). into the body. “To make our commitment to organic products really clear, Euromonitor analyst Virginia Lee estimates that sales of organic we took our products to the edible level,” said Sean Campbell, personal care products — from toothpaste to moisturizers — reached co-founder of NOe Cosmetics. roughly $265 million last year, an increase of 25 percent over 2004. Advanced Formulations’ interest in natural products stems Given that the ingredients are derived from annual organic from the hobby of its research director, Tom Carroll, who crops, obtaining them can present a stumbling block, noted has been an organic farmer for 30 years, in between stints at Campbell. He added that organic ingredients can cost more than Revlon and Chesebrough-Ponds. Noting the rise of natural per- three times as much as chemicals. sonal care products, Carroll began studying their ingredient “The market is very small, so it’s a long-term investment,” said lists and found that many contained only a handful of organic Campbell. This spring, the company introduced NOe Cosmetics actives or natural ingredients. to Whole Foods Market stores throughout the Northeast and Concerned with offering a chemical-free alternative to Atlantic regions and to Concord Chemist on Madison Avenue, mainstream skin care products, the company spent two years and Harrods and Selfridges in the U.K. It plans to introduce a sourcing organic active ingredients — all of which, the com- baby line featuring a shampoo and body wash to retailers later pany says, are USDA-certifi ed organic. this summer. Campbell hopes to expand NOe Cosmetics’ U.S. The result is a seven-item collection with products for the Some NOe cosmetics items. reach to other food markets, such as Trader Joe’s and Wild Oats, body, such as Raspberry Soy Milk Body Lotion, and for the face, and perhaps to upscale pharmacies. including Mango Nutritive Daily Revival Cream, Natural Rice Hydrating Mask, The company expects the line will reap $500,000 in fi rst-year retail sales. Naturally Pure White Tea Toner and Natural Lemon Peel Exfoliating Cleanser. “It’s not enough to create natural products that feel good and are effi cacious,” Prices range from $16 for the Natural Coconut Milk Ultra Gentle Cleanser to $30 said Campbell, adding “food-grade products up the ante from organics.” for the Deep Moisturizing Night Cream. Each item is formulated with 100 percent — Molly Prior WWD, FRIDAY, JUNE 16, 2006 9

WWD.COM Service Antidote to Beauty Slump Essence Fosters

NEW YORK — When beauty sales slow Paris Hilton with products has to differentiate with ser- down, talk of service heats up. her uncle, vice. “If not, it is just a battle over price,” Straight Beauty Talk The mass market beauty business Jack McAuliffe. he advised. is making a slow recovery, despite He used a personal story to illustrate NEW YORK — A host of beauty industry less than exuberant early results for his point. “The retail salesperson in the insiders — and the just plain beautiful — new lines. According to research from beauty department at my local chain drug sounded off on how best to reach African- ACNielsen, cosmetics sales in drug, [store] suggested I use Neutrogena Ultra American women at Essence magazine’s food and discount stores for the 52-week Sheer Dry Sun Block with an SPF 45. She Smart Beauty panel Wednesday. Panel period ended May 20 rose 4.3 percent also told me it was alcohol- and PABA- members included Cheryl Hudgins from $2.5 billion to $2.6 billion. That’s a free, fast-absorbing, water- and sweat- Williams of Procter & Gamble, entertain- welcome trend versus the declines the proof. The salesperson earned my respect ment mogul Steve Stoute, marketing con- industry had been posting for the last and confi dence by her ability to deliver sultant Charles Jamison Jr., singer Kelly three years. advice that pertained to my specifi c inter- Rowland and Iman. Many industry experts think the ests and by her knowledge of the product,” The discussion centered on the need route to building an edge in beauty is to he said. For these reasons, he returns to for beauty fi rms and advertisers to aban- bring back beauty advisers. In fact, the that same store for most of his needs. don an elitist view of women, which is new dermatologic skin care centers of- McAuliffe saw a need to supplement often depicted by the image of a blonde- fered by Brooks-Eckerd, Duane Reade his Beauty Handbook, which is of- haired, blue-eyed woman, noted Jamison. and CVS have trained professionals. fered to consumers, with a vehicle to “It’s really up to us to keep pushing Walgreens always has offered cosmeti- transmit information to beauty consul- forward,” said Stoute, managing part- cians in its stores, and many chains are tants. The result was Beauty Bulletin, ner of Carol’s Daughter and chief cre- starting to add at least one clerk trained a booklet designed to educate retail ative offi cer and founder of Translation to answer some beauty questions. salespeople at chains. Each bulletin is Consultation + Brand Imaging. “We That’s all good news to Jack customized for the chain and features have to fi ght to make sure they’re speak- McAuliffe, founder and publisher of the Beauty Handbook and hot product promotions, seasonal ideas, questions and an- ing to us.” He noted that there’s a pre- a new offshoot called the Beauty Bulletin. McAuliffe fi rmly be- swers and notable salespeople of the quarter. The company vailing thought in marketing circles lieves the only way to boost front-end sales is to offer service. is currently producing the bulletins for chains such as CVS that African-Americans do not shop “The average front end in a drugstore is 7,210 square feet, gen- and Walgreens. Participating manufacturers include Coty, online, adding that Carol’s Daughter erating $2.2 million in sales per year, or $305 per square foot,” Del Labs, L’Oréal, Markwins, Neutrogena, Procter & Gamble, is taking advantage of that myth. A link he said. “It will be a diffi cult challenge to generate more sales Physicians Formula and Revlon, as well as other major beau- to Mary J. Blige’s 2006 tour on Carol’s when the average consumer’s disposable income is being re- ty companies. The selling point of the bulletin is that retail- Daughter’s Web site drove 20,000 people duced by higher fuel costs, interest rates, etc.” ers don’t need to take time out of busy schedules to do inter- to Ticketmaster.com the fi rst day tickets McAuliffe said a problem today is sameness in the market. nal communications with sales staff. went on sale, said Stoute. He reported “The average Main Street intersection in ‘Anytown, U.S.A,’ has “The retail sales clerk is a critical link to creating addi- a gas station, two competing chain drugstores and a huge mass tional take-away of brands and has been frequently over- Iman merchandiser within sight of each other. Three of these retailers looked,” said Jeff Rogers, senior vice president of sales at and Kelly sell beauty products, and with the exception of private brands, Physicians Formula. “An educated sales associate familiar Rowland all three of the retailers sell the same items,” he explained. The with a product’s key features can make a professional recom- shopper’s choice comes down to price and service. mendation to customers — which typically leads to a sale of McAuliffe said the average mass market retailer of beauty that product.” Dr. Schultz’ Hollywood Ambitions Iman to Build Business Kavita Daswani LOS ANGELES — Park Avenue dermatologist Neal Schultz is With Stick Foundation going Hollywood. NEW YORK — Iman bills herself as an COLIN WILLIAMS PHOTOS BY The noted skin doctor, who launched the Stallex skin care authority on face makeup, and sales of that since its launch in Sephora doors line in 2003, was in Los Angeles recently to meet with a major her beauty line prove it. last April, Carol’s Daughter has become talent agency, connect with celebrities and stylists and par- Foundations account for 60 percent the retailer’s eighth-best-selling brand. ticipate in a book signing at the Dutton’s bookstore in Beverly of Iman Cosmetics’ sales, and the su- Hudgins Williams, associate director Hills for his new tome, “It’s Not Just About Wrinkles.” permodel-turned-beauty-executive of global communications for P&G Beauty, He also introduced two new additions to his 50-stockkeep- is out for more with Second to None said Cover Girl has been successful in ing-unit Stallex line: Clear Stick, which treats acne and blem- Stick Foundation, an oil-free, vitamin- tapping the star power of Queen Latifah, ishes, and Solar Protection Total Block SPF 30, a chemical- infused foundation stick slated to bow leveraging her name to create a cosmet- free sunscreen. Both products will be available at Schultz’s this September. ics line for women of color called Queen. offi ce June 21. Iman noted that she’s been working Cover Girl promoted the collection at the His book, co-written with New York-based author Laura on the stick, available in 14 shades at Sugar Water Festival, featuring Latifah, Morton, addresses almost every $13.99 each, for fi ve years. and through radio advertisements. skin care condition and lists prod- Her passion for face makeup stems “Cover Girl’s Queen collection dispelled ucts that work best for each one. from her early modeling days, when the myth that you can’t sell cosmetics over “I wrote the book because there she would have to step in for stumped the radio,” said Hudgins Williams. is a disconnect between what makeup artists and mix her own foun- Iman, who in 2004 teamed up with P&G women need for their skin and the dation, using up to four shades to do to distribute her cosmetics line to mass re- products that exist out there. Most so. “I learned the art of foundation tailers, pleaded with mass merchants and women don’t know what is wrong quite fast,” said Iman. drugstores to do away with the “ethnic sec- with their skin,” he said. She stepped off the runway and tion” in their stores. “It’s old-fashioned,” The 200-page book is laid out into the beauty business in 1994, declared Iman, adding that the world is in an easy-to-navigate style, and and 10 years later inked a licensing too big for such a narrow approach. it includes plenty of before-and- and distribution deal with Procter & Iman’s new “For us, it’s not an afterthought like at after shots, as well as tools to Gamble to give the brand a presence foundation. many general-market brands,” said Iman, help women identify what their in the mass market. referring to marketing to women of color. particular skin requirements Iman Cosmetics’ mass market reach extends to Smart Beauty, a market research study are. And the products recommended, all of which have been 600 doors of retailers including Wal-Mart, Walgreens that surveyed 1,928 African-American tried by Schultz and his team, are easily available and cost and Duane Reade, said Marc Pritchard, currently women online, also found that women of anywhere from $5 to $20. president, Global Cosmetics and Hair Colorants, at color are not always enticed by antiag- “It’s intimidating to see shelves and all those products,” he P&G. “This brand is serving women that are under- ing, wrinkle-fi ghting skin care products, said. “It’s dizzying to me. I wanted to make this information served,” declared Pritchard, who will assume the and are more concerned with even skin available to women who don’t go to see Park Avenue and Fifth post of president, Global Strategic Planning, on July tone and hyperpigmentation. Avenue dermatologists.” 1. He noted that Iman Cosmetics is a good fi t for at Hudgins Williams said that Olay’s up- The book is expected to provide Schultz with a platform least 3,000 mass market doors. Products are at the coming launch of Defi nity — a premium to grow his business outside of his practice, which now sees premium end, with prices ranging from $5.66 for a skin care line designed to improve skin 12,000 patients a year. In addition to the two upcoming prod- lip pencil to $13.99 for a foundation, but Iman as- tone — was inspired by conversations uct launches, plans are in the works to expand the distribu- serted that women will pay more for the right prod- with black women. tion of Stallex beyond Schultz’s practice. uct. Industry sources expect Second to None Stick Several panelist also said they antici- “We will be in major upscale department stores before the Foundation to reap $2.5 million in retail sales. pate a rise in natural beauty products. end of the year,” he said. The line is already proving to be a “Iman Cosmetics deals with tonality,” said “I would like to see more natural prod- signifi cant income-earner for the practice, bringing in around Desiree Reid, senior vice president of marketing ucts,” said Rowland. “If I’m having a skin $600,000 a year in sales. and creative for Iman Cosmetics, adding that the care problem, I don’t go to the store — I “This is without any real push,” Schultz said. “Considering collection is for all women of color. It’s not about call my grandmother, who will tell me to other avenues of distribution, we are hoping to increase that ethnicity, she said, “It’s really just about beauty.” get out the olive oil.” tenfold in the next two years.” — M.P. — M.P. 10 WWD, FRIDAY, JUNE 16, 2006

HBA Report WWD.COM

Select Logics Logics Goes Back to Niche items. By Andrea Nagel from the sun and heat-styling products. “Logics is truly a natural fi t for those known for color NEW YORK — Logics is taking a walk on the luxury side, shed- artistry. We are treating it like the special line that it is,” ding its “mass” feel for more prestige positioning and selec- Marquardt said. tive availability. A Logics Shine Revitalizing treatment will be offered in The professional hair care brand, one of several under the salons to generate sales, too. A dedicated Logics Matrix umbrella at L’Oréal Professional, has always been po- Web site, Logicshair.com, will steer customers sitioned as a niche brand. But beginning this summer, new to salons carrying the brand, answer hair color packaging, formulas and a much smaller distribution are de- questions and offer a loyalty program for stylists. signed to re-create the brand in the eyes of the industry. Logics Color DNA System consists of eight Acquired by L’Oréal USA in 2000 from Clairol, Logics hair items. There is a Clarifying Shampoo, to be care items have not received much attention over the years. used once a week to rinse hair of styling aids; The focus has been primarily on Logics’ back-bar hair color a Color Nourishing Shampoo and Conditioner; line, one that allows colorists to achieve a multitude of shades a Leave-In Conditioning Protector; a Color by mixing a core line of base colors. Vitalizing Treatment Masque; a Shine “We knew we were developing the new Logics hair care Illuminating Serum; a Shaping Mousse, and line with entirely new formulas so [not paying attention to it] a Creative Styling Spray. was almost a managed downsizing of the old Logics. It now Industry sources say the new Logics hair has no relation to the old Logics hair care line,” said Deborah care line could generate as much as $12 mil- Marquardt, vice president of communications at Matrix. lion in fi rst-year retail sales, based on distribu- Marquardt has high praise for Logics’ heritage. tion in 1,500 to 2,000 salons. A trade advertising “Logics has always been perceived as a jewel in the crown, campaign is planned, as well as aggressive in- a very precious boutique brand. We wanted to create a line salon promotions, education and merchandis- from scratch that was worthy of the color line, ” she said. ing efforts, which combined could cost nearly Formulas address color-treated hair using Dual Net Affi nity $1.5 million, according to industry sources. technology that uses two protective chemical nets, one that re- Not all salons will fi t Logics’ upscale posi- THOMAS IANNACCONE PHOTO BY moves impurities from hair and another that enhances color tioning, with price points to match: Products and longevity. The formulas have UV fi lters to protect hair will now retail between $20 to $25. H2O Plus Names Robert Seidl Chief Executive NEW YORK — H2O Plus has tapped a vital resource to ensure that the SNIPPETS company moves to the next level: Robert Seidl. The former president and chief executive officer of Zotos RITES FOR AUGERI: A memorial service will be held today International (the hair care division of Shiseido U.S.) joined the global for retired L’Oréal executive Joseph Augeri at 12:30 p.m. retailer and manufacturer in the same capacity last fall, charged with The service will be held in Ridgewood, N.J., at C.C. Van implementing and executing a more aggressive growth strategy, and Emburgh Funeral Home, 306 East Ridgewood Avenue. expanding H2O Plus’ brand awareness. The family asks that any contributions offered in his With Seidl on board, Cindy Melk, the company’s founder and cre- memory be made to Hospice of Palm Beach at 5200 East ative director, will leave the fi rm in good hands while she’s on ma- Avenue, West Palm Beach, Fla., 33407. Augeri, one of ternity leave, and when she returns, she will focus on developing the the driving forces behind the establishment of Lancôme company’s sea-derived skin care, spa and color cosmetics products. in the U.S., died Sunday in Palm Beach. He is survived Seidl also will use his broad operations background to oversee by his wife, Ann. 89 global stores (13 in the U.S.) and distribution in accounts such as Nordstrom and Marshall Field’s. He expects the fi rm’s sales to in- ARDEN ADDS SERVICES: Beginning this summer, the crease 20 percent, to $120 million, by yearend. Similar increases are Elizabeth Arden Red Door Spa on New York City’s Fifth earmarked for 2007. Avenue will add Restylane treatments to the roster of “In my mind, it’s all about building business. That’s where you drive a services. The popular wrinkle-fi ller injections will be lot of gratifi cation. To get that, you need to create and sustain meaningful performed by plastic surgeon Bryan Forley. Also this growth,” Seidl said, explaining his two-part growth plan: The fi rst step is Face Oasis gel. summer, celebrity hair colorist Brad Johns joins the team as building brand awareness by trial, the second, building distribution. hair color director. Johns most recently headed color services H20 Plus is in negotiations with a hotel chain to take the company at Avon Salon & Spa, which is closing its doors June 16. into the amenities business — and about 35,000 hotel rooms by yearend. Also, this month, a partnership with United Airlines will put Hydrating TIME TO EXHALE: After seven years working at Avon’s Body Butter, Face Oasis Hydrating Treatment, Lip Mender and Sea Salt Salon & Spa, eyebrow guru Eliza Petrescu is relocating Body Wash into the hands of 3 million to 4 million potential customers Eliza’s Eyes to Exhale spa’s two New York City locations. internationally each year. Seidl is also pursuing a relationship with a “I want to bring the beauty from inside out, and that’s national health club organization, a deal that could bring an overall what Exhale is all about — the body, mind, wellness and H2O Plus trial to about 30 million product samples annually. spiritual experience,” said Petrescu. “We understand the Sample by trial ties back to expanding distribution. importance of wellness and understand the connection “If we’re getting all of these people to try it, we need to give them an between body, mind and wellness with physical easy place to buy it,” Seidl said, adding that by the end of 2006, he will appearance.” Though her staff began offering services June have increased H2O Plus product distribution by 500 doors, at tradi- 5, Eliza will start on July 11 and will work out of Exhale’s tional high-end retailers and specialty stores. Upper East Side location. Eliza’s Eyes will be located at One-third of the company’s sales are gener- 980 Madison Avenue and 150 Central Park South. ated internationally, and 80 percent of that num- The Energized Spa Collection. ber comes from Asia. A business partner in Hong CUT-A-THON: Throughout 2006, Redken 5th Avenue NYC Kong serves China and Japan, where the compa- has partnered with the b.cause foundation to support ny has 200 points of distribution (one-third through company-owned stores and the America’s Second Harvest, the nation’s largest hunger- rest through department stores). Products and stores are also in Thailand, Australia, relief organization. In recognition of National Hunger Malaysia and India. Growth opportunities remain in Asia, as well as in Europe and Month, Redken and b.cause will host a Cut-A-Thon on Latin America. June 23 at the Redken Exchange on Fifth Avenue. Over New products are also on the horizon — a Face Oasis Energizing Enzyme Mask, 75 Redken stylists will offer haircuts and blow-dries Face Oasis Shine Neutralizing Gel, Energized Spa Collection (a trio of shower refresh- in exchange for a minimum donation of $25. To raise ers) and Sea Results Maximum Moisture Fluid SPF 30. Price points start at $16 for a national awareness for the cause, 10 Redken salons across body wash in the Energized Collection to $34 for the neutralizing gel. the country — in cities including Dallas, Nashville and Working for a privately held company “is a bit more relaxing” than his past jobs, San Francisco — will also host Cut-A-Thons this month. Seidl said; at H20 Plus, he does not have to be consumed with short-term business B.cause was founded in 2000 by Rudy Sprogis to advance performance. He also likes being in charge of a brand’s fate. “Cindy is terrifi c. She charitable causes of salon owners and beauty industry has given me complete control of the company,” Seidl said, who added he is looking professionals. Appointments are fi rst come, fi rst served, to enhance the sales and marketing team he’s inherited. Headquarters, which consists from 8 a.m. to 4 p.m. of a main offi ce, manufacturing and warehousing, takes up a city block in downtown Chicago, about three-quarters of a mile west of the Sears Tower. “We’re in a hot area of HEARD AT ECRM: According to industry sources at the the city.” ECRM hair care conference, a Boston investment fi rm is Seidl, who left Shiseido in March 2005 after seven years for various reasons — rang- in negotiations to buy the Ken Paves Professional hair care ing from wanting to get back into charity work to spending more time with his family business. Also, Ellin LaVar, which was recently acquired by — will relocate to Chicago in August. Woodridge Labs, aims to introduce at 12-item hair care line

▼ — A.N. to the mass market. LaVar will be the focus of a TV series Face Oasis mask. on the Women’s Entertainment network in September. more than lip service PHOTO BY GEORGE CHINSEE GEORGE BY PHOTO

Next Issue: August 4 • Close: June 30 • Bonus Distribution to WWD Spa Select THE WELLNESS MOVEMENT | CONSUMER DEMOGRAPHICS: INSIDE THE CUSTOMER’S MIND For advertising information, contact Sarah Murphy, publisher, at 212-630-4656. 12 WWD, FRIDAY, JUNE 16, 2006 WWD.COM Media/Advertising Finally, Larry Clark’s Kids Are All Right

By Jacob Bernstein NEW YORK — At 6 p.m. on a hot spring day, Larry Clark is sitting in an outdoor cafe in TriBeCa, getting mad. He’s discussing his biggest enemy, the Motion Picture Association of America, which has recommended NC-17 ratings for all but two of his movies over the last decade. And he thinks the reason they are out to get him is be- cause he makes independent films. “It’s the most f--king corrupt thing in the world,” he says, making use of his verb, noun and adjective of choice. “You have movies like ‘Basic Instinct,’ where Sharon Stone is f--king a guy and stabbing him at the same time. But it’s a big studio fi lm, so it gets an R. When they give movies NC-17s, they pick on little inde- pendent movies. To me, ‘Kids’ was way less disturbing than ‘Basic Instinct,’ which disturbed me because it was a complete piece of s--t.” Is it worth noting that Sharon Stone is the executive producer of “Wassup Rockers,” the fi lm he’s here pro- moting that opens next week? “No,” Clark, 63, says curtly. “She had no involvement. Henry Winterstern [his producer] brought her around because he thought she could help.” And did she? “No,” Clark says. And Stone is not the only one he speaks bluntly about. There’s fashion photographer Terry Richardson, whose work is said to be infl uenced by Clark’s sexually charged, heroin-chic photography. “It’s not so interest- The photographer and movie ing to me,” Clark says. “I don’t really like pornography director Larry Clark. because it’s overlit, and Terry’s whole thing is that over- CENTENO TALAYA PHOTO BY lit porno look.” Washington Square Park imbibing Colt 40s and trading Nicky Hilton were in the news all the time just for going There’s Harvey Weinstein, who snapped up the rights sexual partners as if they were baseball cards. (In that to clubs and doing nothing. And this was before the sex to “Kids,” but who, Clark says, never handed him a siz- movie, several of the kids wind up HIV positive.) tape. So one day, we were at Hollywood High, skating, able check when it went on to fi nancial success: “It was “They’re good kids,” says Clark of his “Wassup and I thought, ‘What would happen if Paris and Nicky Miramax,” Clark says. “It was Harvey and Bob. I didn’t Rockers” stars. “Really good kids.” He’s dressed in black drove by and saw Kiko and Jonathan, thought they were get anything.” jeans and a T-shirt emblazoned with the name of the hot and picked them up?’” And don’t think that just because “Wassup Rockers” fi lm. He’s almost bald and has a scraggly beard, but the Might he have taken it a little too far? has received an R rating that Clark is giving up on his paunch that protrudes from above his belt and the extra “Look,” he says.“Paris Hilton just wants to get high war with the MPAA. “The only reason it got an R and not weight in his face makes him look avuncular and sort and f--k hot boys. I’ve met her. And then I read the news- a PG-13 was because the actors say ‘f--k,’” he says. “Well, of ageless. Clark found his two young leads (Jonathan papers and see all this s--t about hot teachers f--king 14- kids say f--k now in front of their parents. It’s part of the Velasquez and Francisco “Kiko” Pedrasa) on a skate- year-old boys. I mean, if that was happening when I was conversation. It’s just another word.” boarding ramp in Los Angeles, while doing a promotion- a kid, I didn’t hear about it.” In other words, to omit it from his fi lm would have al photo shoot for his most recent fi lm, “Ken Park,” in If Clark sounds a little disappointed at having missed been unrealistic, almost unethical. “Wassup Rockers” is 2002, and he quickly became like an uncle to them. out on some pedagogical pederasty, he’s made up for it as a movie about a group of Hispanic skateboarders from “I would go see them and take them skateboarding,” an adult. On “Ken Park,” he became involved with his 19- South Central Los Angeles whose innocent idea of going Clark says. “They would go to a birthday party and they year-old star, Tiffany Limos. She looked about 14 and his skating in Beverly Hills opens a Pandora’s box when the weren’t smoking pot and they still had more fun than critics pounced, seeing the affair as proof that the direc- white men they encounter assume they’re criminals and anybody there. They had this exuberance for life that tor was not only fascinated by teenagers, but wanted to be the white women they meet want to get jiggy with them. was just about kids being kids, and that’s so diffi cult to one, down to his choice of sexual partners. “You know,” It’s Clark’s third movie in a decade about slacker do in the ghetto. And I thought it should be seen.” he says with a shrug, “that was a unique situation. We skateboarders, but he, at least, sees it as a major de- And after being labeled a misogynist by some critics fell in love. I’m going to make a movie about it. Tiffany is parture from his earlier work. For openers, it’s sort of for making several fi lms with very graphic sex scenes in writing the screenplay. It’s called ‘Printed Matter.’ ” a farce. “Let’s make fun of white people,” is how he which teenage boys take advantage of teenage girls, Clark At any rate, they’re no longer together and he’s dat- describes the fi lm’s mantra. Also, the protagonists are thought it was time to turn the tables. It’s a refl ection, he ing someone else. not the morally repugnant teenagers from “Kids,” his said, of shifting libidinal appetites over the last decade. How old might she be? 1995 debut fi lm about a clique who spends its days in “When I started writing it,” Clark says, “Paris and “I don’t know,” he says, laughing; “35, 40.”

GOOGLING PORTFOLIO: SEARCH AND RESCUE: As OK magazine closes in on the fi rst Condé Nast anniversary of its U.S. arrival, a shake-up, of sorts, is afoot. Condé Nast Seeks to Sell executives were Richard Desmond, owner of both the American edition and MEMO PAD likely reassured the U.K. version that spawned it, was in town Thursday to by Joanne Lipman’s search for a new publisher for the U.S. title. Desmond called Three Trade Publications fi rst public performance as editor in chief of the company’s from the Four Seasons Hotel, where he was interviewing NEW YORK — Condé Nast Publications forthcoming business magazine, Condé Nast Portfolio. On candidates, to confi rm the search was in progress. Asked has put up for sale three of its business-to- Thursday, Lipman conducted a lively interview with Google what that means for Melanie Danks, OK’s current publisher, business titles, Supermarket News, Home chief executive offi cer Eric Schmidt before a crowd of several he declined to comment, but sources believe she is on the Furnishings News and InFurniture. dozen potential advertisers and journalists at the Four Seasons. way out. Meanwhile, chief executive offi cer Christian Toksvig is The three publications operate under (Not nearly as extravagant as it sounds. said to be in discussions about moving the Fairchild division, which earlier Lunch consisted of a single course — a back to the U.K. Asked whether Toksvig this year was segmented into Fairchild breaded fi sh fi llet — and a passed tray will relocate, Desmond said, “He is Publications and the Fairchild Fashion of petit fours.) in charge of international licensing, Group. Early in the program, Lipman so that could well be the situation.” The Fairchild Fashion Group, con- read aloud a somewhat embarrassing OK’s newsstand sales have been up sisting of WWD, DNR, Footwear News, quote from Schmidt she had found by since the title cut its cover price from Summits, Classified and the Book Googling him. “This is the problem $3.29 to $1.99 in February, but it still Division, will continue as a division of with search engines,” he quipped. lags behind all the other titles in the Condé Nast Publications and remain a (Incidentally, the fi rst link that pops up category. —Jeff Bercovici key component of the company’s long- in a Google search of Lipman’s name term business strategy. is a gossip item from Jossip.com.) LOSING HIS VOICE: Being editor of the “After careful consideration, we Their conversation, which focused on Village Voice in the twilight era of have decided to explore the sale of Google’s evolving advertising model, Eric Schmidt and Joanne Lipman. alternative weeklies is bound to be a Supermarket News, Home Furnishings was fi lmed and uploaded on cnportfolio. thankless task. Erik Wemple apparently and InFurniture,” said Condé Nast com after the event. fi gured that out, although not until after he’d accepted the group president and publishing direc- In other Portfolio news, it seems the magazine’s marketing job. The paper informed its employees late Thursday afternoon tor Mitchell Fox. “While each of these budget extends beyond the fi sh plate at the Four Seasons — that Wemple had decided to remain at the Washington properties plays a leading role in the but not by much. At a race Wednesday in New York called the City Paper, where he’s been editor since 2002, rather than markets they serve, they refl ect areas of Media Challenge, in which various media companies compete assume the post he was named to amid much fanfare earlier business-to-business publishing that are against one another, all Condé Nast employees wore shirts this month. “Although Wemple accepted the job of editor in not key to our core mission. with a corporate logo — except for the Portfolio runners, who chief of the historic Voice — even introducing himself to the “Until such time as a sale is made, we had Portfolio logos emblazoned on theirs, with “We’re Up and staff — subsequent discussions revealed disagreements over will continue to operate with the same Running!” printed on the back. newsroom management,” said the staff memo, which was fi rst level of rigor and diligence with which we Said one participant: “It was a little sad, really.” — Sara James posted on Gawker.com. — J.B. approach the business today,” Fox said. Did You Get the SCOOP? pg. 72 BECK PECCOZ AND MARCO STEPHANE FEUGERE, OLIVIER BUHAGIAR PHOTOS BY

AUTHENTIC PUGLIA Centuries-old masserie-turned-top-notch resorts, white-washed towns and fairy tale-like trulli. 14 WWD, FRIDAY, JUNE 16, 2006 WWD.COM Penney’s Said to Court Times Square, Lower Manhattan Retail Real Estate Heating Up Polo in Exclusive Deal By Amy S. Choi NEW YORK — The Real Estate Board of New York’s most re- Continued from page one For Polo, the prospect of new distribution cent retail report held few surprises for the New York market, Kohl’s under the Chaps label. could be appealing, as it would give the company but there was at least one standout: Prices for prime real estate And while it would be a bold move for both, the a broader market share in the retail space, where in Times Square and lower Manhattan are increasing at a fast heads of the two companies are not exactly strang- style-conscious consumers — because of infl ation- clip, as demand for retail space in those neighborhoods starts ers. Ullman sat for several years on Lauren’s ary pressures or other economic issues — have to catch up with supply. board and worked with Polo’s president Roger become more price-sensitive. The company has “There’s very little inventory coming online in Times Square. Farah at Macy’s in the early Nineties. Ullman is learned from experience through its Chaps line The big deals with long-term leases have taken up a lot of space,” also well acquainted with the luxury world, having that the benefi ts can be great, if done right. Chaps said Ariel Schuster, managing director at Robert K. Futterman previously worked at LVMH Moët Louis Vuitton, has been meeting or beating plan at Kohl’s. & Associates. “Ann Taylor’s store in Times Square Tower was a reporting directly to chairman Bernard Arnault, And Ralph Lauren wouldn’t be the only major major vote of confi dence for the area for apparel retailers, and and is likely to be sensitive to anything that would designer to fl irt with a more moderately priced now more people are interested in the area than ever.” jeopardize Lauren’s luxury brands. channel. In recent years, H&M has proven that Lower Manhattan’s retail corridor showed the greatest in- The desire for a high-end design- crease in asking rents in the past year. It’s a tough area to enter, Polo/Penney’s line ers have a curiosity but it may be on the brink of ensnaring several luxury retailers. would not come as about the moderate Hermès’ lease in the fi nancial district — like Ann Taylor’s at a surprise given level, and can be suc- 15 Broad Street — served as a wake-up call to retailers who Ullman’s comments cessful at it. are now increasingly interested in tapping into the burgeoning during the retailer’s “[H&M] is a fash- upscale residential community downtown. annual meeting in ion phenomenon, and “In the next six months, you will start to see luxury retailers Plano, Tex., last I like to be a part of that are as high caliber as Hermès commit to space, especially month. The ceo said those things,” said near the New York Stock Exchange,” Schuster predicted. “The the $18.7 billion chain Karl Lagerfeld in 2004 rents are starting to creep up a bit.” is on course with its when he struck his Still, neither Times Square nor lower Manhattan are likely fi ve-year growth plan one-season deal with to explode in retail rents as much as other fashion-focused re- to make Penney’s mass chain H&M. tail strips in Manhattan, such as Bleecker Street, where retail the preferred shop- “It’s part of my job. spaces are said to be going for as much as $500 per square foot ping choice of Middle It’s the modern thing and rents are slowly approaching Fifth Avenue’s. America. The driv- to do. Also, I like “There will be a leveling off of rental rates in most neighbor- ing force behind the the idea of my name hoods,” predicted Laura Pomerantz, principal of PBS Realty growth plans is a focus being used on a broad Advisors. on achieving midtier scale.” Lagerfeld was In addition to its retail report, REBNY also hosted its 2005 retail dominance over followed by Stella Retail Deal of the Year Awards Tuesday night. Taking top honors its rivals. McCartney last year as the most creative deal in Manhattan was the Apple Computer Since Ullman and, this year, by lease at 767 Fifth Avenue, brokered by Robert Futterman and took the reigns of Viktor & Rolf. Karen Bellantoni of Robert K. Futterman & Associates. The in- the retailer in late Meanwhile, Vera novative property, which features a glass cube at street level and 2004, the transfor- Wang has been ne- contains its entire 22,500-square-foot operations below ground, mation of Penney’s gotiating to forge a opened May 19 to throngs of fervent Macintosh fans, who prior has included efforts licensing deal with to then had only Apple’s SoHo store to visit. to “emotionally con- Kohl’s Department REBNY rewarded Newmark Knight Frank brokers Jimmy nect” with consum- Stores for the past Kuhn and Amira Yunis with the retail deal that most signifi cant- ers by offering life- two years that would ly benefi ts Manhattan. The duo won for bringing Trader Joe’s style-driven fashions encompass appar- to Union Square, where the retailer opened its fi rst Manhattan and products and el, accessories and store at 140 East 14th Street. Like the Apple store in midtown, the in-store experiences home furnishings. Trader Joe’s opened to lines of New Yorkers eager to get their such as the Sephora A Kohl’s deal would hands on the inexpensive, fresh merchandise. The chain’s recent- beauty shops with- enable Wang to de- ly opened wine shop is housed separately from the main store. in the store, which are set to launch this fall. velop a complete lower-priced lifestyle collection, Another grocer won for REBNY’s Most Creative Deal in Additionally, Penney’s has been opening off-mall using a derivative of her name. Sources have in- the Outer Boroughs. Chase Welles of Northwest Atlantic Real stores averaging 90,000 square feet. The retailer dicated she could earn as much as $100 million Estate Services won for placing Whole Foods at Third Street is now expected to open some that will be larg- over a multiyear period by signing with Kohl’s. and Third Avenue in Brooklyn, at a crossroads of Cobble Hill er, probably 100,000 square feet on average. The Wang has consistently said she’s eager to reach and Park Slope. According to REBNY, Whole Foods’ arrival in additional square footage is said to showcase the mass customer, but has hesitated thus far to the neighborhood jump-started discussion of redevelopment of some of the new products, such as the brand-rich make that a reality. the region as a whole, and a possible rezoning of the industrial Sephora, which is expected to utilize about 2,000 Kohl’s has been on an aggressive path to seek property into mixed-use loft and artists’ residential spaces. square feet. exclusive deals. Its recent introduction of Chaps Abercrombie & Fitch’s new headquarters at 720 Fifth From the perspective of Wall Street, Ullman’s was the biggest launch in the retailer’s history. It Avenue, brokered by John Brod and Pomerantz of PBS, was hard work is paying off. Since he took the helm is also testing an exclusive women’s and men’s line the only fashion deal nominated as one of the top retail deals Dec. 1, 2004, the stock is up 71 percent to $65.84 at from Liz Claiborne called Stamp 10, in 300 stores. of 2005. Thursday’s close, from $38.48. — With contributions by Lisa Lockwood India, China Oppose Special Treatment for Textiles By John Zarocostas ymously, said the U.S. was “giving confl icting signals.” a breakthrough deal when they gather in Geneva at the He stressed that some of the U.S. remarks on textiles end of the month. GENEVA — Senior Indian and Chinese offi cials on were at variance with its broader policy stance on sec- The Turkish proposal is viewed favorably by U.S. tex- Thursday dismissed calls by the U.S. for textiles and torial talks in the non-agricultural market access seg- tile industry groups, plus small exporters like Tunisia, apparel to be given special consideration in the global ment of the talks. Jordan, El Salvador, Nicaragua and Honduras. tariff-reduction talks. According to a progress report on the NAMA talks During a negotiating session, the U.S. said the har- “No possibility; we can never agree,” said a senior circulated to the WTO’s 149 member countries, the monization proposal by Turkey merits closer study, Chinese offi cial, speaking on condition of anonymity. U.S., along with nine other WTO members, including “but we are not in a position to endorse it at this stage” The envoy said other major Asian developing coun- Singapore and Hong Kong, submitted a proposal on and also stressed, “This sector needs special consider- tries felt just as strongly and would not agree. He said the sectorial component of the talks that stipulates ation,” trade diplomats said. such a stance would be “a step backward from the lib- those initiatives “shall aim to reduce or as appropriate Some trade offi cials attributed the two-track U.S. eralization trend and not consistent with the July 2004 eliminate tariffs…over and above that which would be approach on textiles to “negotiating tactics” and some framework package.” achieved by the formula modality.” others to the fact that the Bush administration has as The accord brokered by then-U.S. Trade In a negotiating session Wednesday, Turkey, which yet not decided which way it will come down on the Representative Robert Zoellick and key ministers has put forward a less ambitious tariff-reduction pro- textiles and apparel issues in the talks. from other countries helped put the Doha Round of posal that calls for harmonization in the sector, wants But a spokeswoman for the U.S. Trade Representative’s trade talks back on track following their dramatic col- language on sectorials to remove “over and above” and offi ce said reference to special consideration “is simply a lapse during the World Trade Organization summit in insert the word “harmonization.” frank acknowledgement of the importance of this sector Cancún, Mexico, in September 2003. However, in the face of strong opposition from other to virtually all WTO members, whether they are major ex- Ujal Singh Bhatia, India’s WTO ambassador, said, “I members, Turkey suggested its proposed changes porters or preference-receiving countries. don’t think there is much support for that,” and noted could be put in brackets. “There are a wide variety of views on this subject,” that such requests by the U.S. “in our view put serious A draft modalities text on NAMA is slated to be cir- the USTR spokeswoman added. “It’s controversial and strain in what are already diffi cult negotiations.” culated to members early next week and will be used we’re all going to have to fi nd a solution to the variety Another senior trade diplomat, also speaking anon- as the basis for trade ministers to try and hammer out of concerns that all WTO members can live with.” WWD, FRIDAY, JUNE 16, 2006 15

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The right Girls and Boys 0/6x knit and woven Fax: (516) 908-7668 or Email resume to: individual is a proven team player, playwear seeks a Spec Technician. Ladies’ Outerwear / [email protected] Showrooms & Lofts reliable and professional. Please e-mail The right candidate must have a min. PRODUCTIONS of 2 years experience plus knowledge BWAY 7TH AVE SIDE STREETS Full service shop to the trade. your resume and salary history to: Sportswear Great ’New’ Office Space Avail [email protected] of patternmaking and garment con- Seeking highly motivated salesperson Fine fast work. 212-869-2699. struction. Responsibilities include SALES...... 60-80K + ADAMS & CO. 212-679-5500 who is a team player w/ est’d contacts Jr/kids sleepwear Mass Merch contacts spec, grading and fit approvals. To apply, w/ buyers & mgmt in major dept/chain Designer/Merchandiser Email resume & salary req’s to: Jennifer Glenn SRI Search 212 465 8300 Leading intimate apparel company is stores. Min 5 years exp. 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