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DAILY EDITION APRIL 6, 2018 1 Fashion. Beauty. Business. New Era Round 1 to Slimane Elevated Medium Beauty suppliers talk Kering intends to New exhibit features speed and sustainability appeal decision in Albert Watson’s work at Cosmoprof. Hedi Slimane lawsuit. for Blumarine. Pages 6 to 8 Page 2 Page 17 BUSINESS Tech’s Crisis of Confidence ● With more questions about how the Silicon Valley giants operate, the world is reevaluating its love affair with technology. BY EVAN CLARK AND ADRIANA LEE The world is ready to log off — or at least, fed up enough to wish it could. After 20 years at the pinnacle of con- sumer culture, technology itself is facing a crisis of confidence that is much deeper and more complex than any of its prior setbacks and data privacy snafus. Technology’s issues have become more numerous and varied, encompassing not just a single industry, but a pillar of mod- ern life. * Facebook’s been scandalized by how its data was used to inappropriately target voters. * Hackers regularly attack from the shadows, most recently breaking into the CONTINUED ON PAGE 4 INFLUENCE PEDDLER JULIA ENGEL CREATES LINE OF DRESSES AT NoRDSTROM NAMED AFTER HER POPULAR BLOG, GaL MEETS GLAM COLLECTION IS A SIZE- INCLUSIVE RANGE INSPIRED BY A “LOVE OF ALL THINGS FEMININE.” BY ALEXA TIETJEN Gal meets fashion line. Julia Engel, creator of the pop- ular style blog Gal Meets Glam, is ready for her fashion debut. Today the super-influencer revealed the launch of her first fashion collec- tion, aptly named after her blog, which will be sold at Nordstrom starting April 20. Engel, who started her blog in 2011, first conceived of a fashion line four years ago. “I look back on the mood boards, inspiration and ideas Karl Goes Big I had, and I’ve stayed with them throughout the past four years,” she A giant, silver figurine of Karl Lagerfeld, cradling his famous cat Choupette, is said. “I saw a huge gap in the market among the striking features in the designer’s sprawling new U.S. flagship, which for dresses that were both feminine and classic, but also available at an opens Saturday in New York’s SoHo district. For more on the store, see page 3. CONTINUED ON PAGE 9 PHOTOGRAPH BY GEORGE CHINSEE 2 APRIL 6, 2018 BUSINESS Hedi Slimane Kering to Appeal Slimane Ruling ● The French conglomerate show the first collection in September. is flighting back against the In its March 27 ruling, the court said Ker- ing owes Slimane 9.3 million euros, related court’s ruling it owes the to the last year of an elaborate compensa- designer 9.3 million euros. tion scheme drawn up to allow the designer to benefit from an increase in value of the BY MIMOSA SPENCER shares of Yves Saint Laurent. The amount PARIS — He recently started a new job and is meant to ensure that Slimane’s pay from was handed a court victory against his for- April 2015 to March 2016 would reach 10 mer employer — involving a potential sum of million euros, the court said in its decision. 9.3 million euros — but Hedi Slimane’s case Kering said it would appeal the ruling but against Kering may not be over. declined to comment further. The designer’s The French luxury conglomerate said lawyers, Hervé Temime and Léon del Forno, at the time. “Hedi Slimane is requesting that about Yves Saint Laurent. it plans to appeal a French commercial said they would not comment on the matter. this clause be applied still, along with the The designer worked for Yves Saint Laurent court’s ruling in favor of Slimane, the latest Through his company, Analytic Proj- effective payment of the financial compen- from 2012 to March 2016, where he changed chapter of a remuneration case linked to ect, that handles his commercial rights, sation that goes with it.” the label’s name to Saint Laurent, and, in the designer’s time at Saint Laurent that has Slimane launched the procedure at the Non-competition obligations are among Kering’s view, “reformed the maison.” been winding through the court for over a commercial court in May 2016. standard clauses for high-profile execu- Before that, he had worked for another year and a half. The following month, Kering acknowl- tive and creative roles in fashion, often LVMH brand, Dior Homme, from 2000 to The news comes as Slimane takes on his edged the legal proceedings, saying that restricting a designer or chief executive 2007, where he introduced slim tailoring, new role at Céline, owned by LVMH Moët Slimane had requested the lifting of a officer from working for competitors for a trend that continues to hold resonance. Hennessy Louis Vuitton, a high-profile non-competition obligation. “Kering lifted up to a year or more. LMVH has said it expects Céline, which position for the trend-setting fashion figure this clause at the end of Hedi Slimane’s In November 2016, Slimane’s lawyers said generates close to 1 billion euros in annual who has been recruited to extend the brand contract, thus freeing Hedi Slimane from he was very satisfied with a court decision sales, to double or triple its revenues within into men’s wear, couture and fragrance and this potential constraint,” the company said granting him access to financial information five years. BUSINESS credit and web monitoring.” Although HBC gave few details about the breach, Mekerdijian’s lawsuit did shed some HBC Hit With $5 Million Lawsuit light, including that millions of customers have been affected. He said it was first ● A shopper is pursuing and class members’ [private identifiable inaction,” Mekerdijian is accusing the com- “announced” on March 28 by “a hacking a class-action days after information] from unauthorized access, use pany of breach of implied contract, negli- syndicate called JokerStash” through its and disclosure, as required by various state gence, unfair competition and deceptive release of the records online. The breach the Saks operator said it and federal regulations, industry practices business practices and invasion of privacy allegedly took place over almost a year, uncovered a breach of and the common law,” shopper Antranik and seeking damages for a certified class of beginning in May 2017. payment information. Mekerdijian wrote in his complaint. “The national shoppers of at least $5 million. He added that credit and debit card data breach was also a result of defen- Litigation after consumer data breaches information is valuable to hackers because BY KALI HAYS dants’ failure to establish and implement is relatively common, especially when it can be sold for around $20 apiece appropriate administrative, technical and information like social security data is and then used to “clone” the cards, as Hudson’s Bay Co. might have uncovered physical safeguards to ensure the security accessed, but awards, if a case gets to the is personal information associated with and stopped its recent data breach, but its and confidentiality of plaintiffs’ and class damages stage, can be small. Plaintiffs tend the cards, which can be used to facilitate problems aren’t over. members’ [information] to protect against to have difficulty proving to a court that identity theft. Mekerdijian said he shopped A shopper on Tuesday slapped the Saks reasonably foreseeable threats to the secu- they suffered actual damages worthy of a at “several” Saks and Lord & Taylor stores Fifth Avenue, Saks Off 5th and Lord & rity or integrity of such information.” substantial award, but settlements are often during the year customer information was Taylor operator with a $5 million proposed Mekerdijian added that the breach reached before a case drags on for too long. being siphoned. class action lawsuit in California federal compromised the information of millions An HBC spokeswoman declined to com- Despite the well-known ramifications of court, accusing the company of effectively of customers, including full credit and debit ment, citing a company policy on pending data theft and their apparent frequency allowing the breach to occur for almost a card numbers, e-mail and living addresses, litigation. in retail, with Target, TJX Cos. Inc. and full year due to its inadequate security and phone numbers and social security num- The company revealed the breach over more recent Sears and Under Armour, data know-how. bers, exposing them to fraud and identity the weekend, saying it had “identified the finding their customer information com- “The data breach was a direct and theft and forcing them to spend time and issue and taken steps to contain it” and that promised, Mekerdijian said HBC’s stores proximate result of defendants’ failure to money securing their information. it intends to offer any impacted shoppers “opted to maintain an insufficient and properly safeguard and protect plaintiff’s Considering HBC’s “wrongful action and “free identity protection services, including inadequate system.” BUSINESS president of Urban, will vacate his posi- web sites and catalogues, and Free People tions on April 27. and Anthropologie Group wholesale their “We thank David for his six years of products. Anthropologie CEO service to the company, during which Urban Outfitters Inc. saw sales during time the Anthropologie group opened 60 the year ended Jan. 31 increase 2 percent stores and grew revenue by over 35 per- to $3.61 billion, while profits fell by more David McCreight cent,” said Richard A. Hayne, chairman than 50 percent to $108.26 million from and ceo. “Both Hillary and Andrew are $218.12 million a year ago. The picture strong leaders and excellent merchants for the fourth quarter was similar, with Leaving This Month with a solid understanding of the Anthro- sales growing 5.7 percent to $1.09 billion, pologie customer.