▲ NEWS: ▲ FASHION: The Dressing CFDA’s ▲ on the

▲ DENIM: RETAIL: Paige new European campaign Premium crop, stores trail, Denim page 3. wary page 12. hits about Las Vegas, holiday, page 8. page 5. WWDWomen’s Wear Daily • TheTHURSDAY Retailers’ Daily Newspaper • October 9, 2008 • $3.00 Sportswear On the Fringe For spring, Alexander McQueen was inspired by Charles Darwin’s premise of natural selection. But the designer worked another theory to beautiful effect, too — string. Case in point: this striking dress composed of ombré strands. For more on the trend, see pages 6 and 7.

Retailers Cut Deeper, Slashing Inventories As Comp Sales Plunge By Alexandra Steigrad Credit jitters collided with already anemic consumer demand and even a trio of hurricanes to send September same-store sales results to their low point for the year, reducing already sober holiday expectations even further. Although Wal-Mart Stores Inc.’s U.S. stores eked out a 2.4 percent gain in comparable- store sales, just missing analysts’ predictions of a 2.5 percent pickup, retailers, particularly department stores, got clobbered by the effects of the global financial crisis and Hurricanes Gustav, Hanna and Ike, causing many to slash third-quarter guidance and a few to even question if their already miserly management of inventories has been sharp enough to minimize their exposure heading See Retailers, Page 4 PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY WWD.COM WWDTHURSDAY Sportswear Alberta FASHION Ferretti Whether channeling fl apper chic or sharpshootin’ ▲ 4 ™ Western wear, fringe was all over the European runways. A weekly update on consumer attitudes and behavior based on ongoing research from Cotton Incorporated GENERAL 1 Retailers got clobbered by the effects of the global fi nancial crisis and three hurricanes in September, ECONOMICS, EXPERIENCE AND ENTHUSIASM causing many to slash third-quarter guidance. Factors Distinguishing Chinese and U.S. Apparel Shoppers 3 Kellwood Co.’s portfolio continues to slim down, as the company confi rmed it will no longer be Anne, a banking professional and new mom, Not all U.S. consumers are plan-ahead shoppers licensing the bridge-priced ck Calvin Klein line. takes a pragmatic approach to most of her pursuits, and the more contemplative variety tend to spend 5 With Britain nearly in recession and Northern Eu- and today, that extends to apparel shopping. “I used less and have more edited wardrobes than their ropean banks buckling, retailers expect a bumpy to be far more impulsive about shopping; I would impulsive counterparts, suggest data from the holiday season. buy whatever caught my eye,” she shares. “Now I Monitor. Female respondents who say that they plan am far more careful and practical; their apparel purchases own seven 8 DENIM: Paige Premium Denim is banking on new I plan ahead and try to buy only pairs of jeans; those who say they stores in Las Vegas and New York to counter what I need.” Anne’s approach buy on impulse own nine. Chinese effects of the economic downturn expected to to shopping according to plan is planners own about 1 more pair of impact its wholesale customers. true for many apparel consumers denim jeans than non-planners. 13 EYE: At the Four Seasons Beverly Hills Monday in the United States, but in the In the last month, planners say night, the honorees at Elle Magazine’s 15th annual still nascent Chinese consumer that they spent $71.80 on apparel Women in Hollywood dinner included Jane Fonda, market, impulse purchases drive versus the $89.80 that impulse Halle Berry and Nicole Kidman. apparel sales. shoppers spent. Anne’s evolution from impulse With increasingly uncertain shopper to planned shopper financial times ahead in the U.S., Classifi ed Advertisements...... 14-15 mirrors the path of many women planning wardrobes is likely to as their lives and priorities continue as consumers take stock TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS change. According to the Cotton of what they have and watch [email protected], USING THE INDIVIDUAL’S NAME. Incorporated Lifestyle Monitor™, in what they’re spending, regardless the second quarter of 2008, 60% of their ages and responsibilities. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. of female respondents in the U.S. “There’s a filter between needs and VOLUME 196, NO. 76. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with said that their wardrobe purchases wants; impulse falls more into the one additional issue in January, October and December, two additional issues in March, April, May, June, August and “We have seen an increase in wants category,” considers Casey November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division are planned, rather than impulse of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services buys. That figure is up from 50% the number of U.S. female Chroust, Vice President of Retail provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. making the same claim in 1994, consumers who say they are Operations at the Retailer Industry Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post the first year that the Monitor planning their apparel purchases.” Leaders Association (RILA), a Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. started interviewing consumers on — Melissa Bastos trade organization. “And in today’s Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B Cotton Incorporated 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA their practices and preferences. dire economic climate, that’s a 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please “Since we began asking tougher nut to crack; consumers write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. are less likely to be driven by their wants when they Please give both new and old addresses as printed on most recent label. First copy of new subscription will be mailed the question over a decade ago, we have seen an within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S increase in the number of U.S. female consumers are considering the consequences thirty days from WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 who say they are planning their apparel purchases,” now or worried about making a car payment.” or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened says Melissa Bastos, Manager of Market Research Online shopping in the U.S. may me a more companies that offer products and services that we believe would interest our readers. If you do not want to receive at Cotton Incorporated. Bastos adds, “Economic useful tool for planners that for their impulsive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY necessity has likely driven the trend more recently, counterparts. “I have a feeling there is less impulse OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, but the use of the Internet as a planning tool has shopping online because there’s no immediate PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, gratification,” says Jennifer Scott, Head Buyer for PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS probably contributed to the trend, as well.” SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND As demonstrated by Anne, a tendency to Tobi, an online fashion retailer. China emerges once OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. plan ahead increases over time. According to the again as a study in contrast. The online retail channel Monitor, females ages 13 is markedly less mature in to 24 (52%), ages 25 to Impulse vs. Planned Apparel Spending China, but Global Monitor 34 (57%) aged 35 to 55 data reveals that 30% of DAILY We can end the world (63%) and ages 56 to 70 Chinese consumers who 60% Planned Impulse 59% “ (62%) say their clothing buy apparel on impulse QUOTE now, or try and stay purchases are planned. 54% buy it via the Internet; not In China, however, 50% so in the U.S. says Scott. upbeat about the future. 45% impulse apparel 43% “When you shop 41% – Sir Philip Green, on the” fi nancial outlook. Page 5. purchases are much more 40% online, you don’t have the commonplace. In a recent item in your hand and you Global Lifestyle Monitor 30% know that you won’t get survey, over half of the 26% it for a few days, so there TODAY ON female respondents from 20% is less of the feeling that China agree or strongly you have to have it.” Scott agree that they buy also believes that there is clothing on impulse. This 10% more time to regret the MOST VIEWED figure is nine percentage purchase. “Since you have • Facchinetti Exiting Valentino 0% to wait for it, you don’t WWD • Reaching for the Masses: points higher than the global average of women GLOBAL AVG. CHINA UNITED STATES have that satisfaction and .COM Estée Lauder Cos. Scent to making the same claim. a greater chance for buyer’s Launch at Wal-Mart The East/West disparity in shopping habits is remorse the longer you go without the product in • Energy Pill at Louis equal parts experience and economics. American hand.” She adds, “That’s precisely why we get our Vuitton.... Monkey Business consumers are veterans at navigating Western retail product out in twenty-four hours or less.” at Colette... Stam in Flight... channels and are familiar with the type and variety • Piece of Cake... of offerings at each one. In contrast, department An article based on findings from Cotton Gotham Galliano... stores and globally-recognized brand boutiques Incorporated’s Lifestyle Monitor™ tracking research Welcoming Party... are comparatively new to Chinese consumers. As appears in these pages each Thursday. This • Girls of Fall: Autumn’s Crop the growing Chinese middle class enthusiastically particular article is based on the biennial of Enchanting Entertainers explores these hitherto unchartered retail venues, Global Lifestyle Monitor consumer research MOST E-MAILED they are met with wonders to behold and buy; and study conducted by Cotton Incorporated, Cotton buy they can. • Reaching for the Masses: Council International and Synovate. In the 2008 Estée Lauder Cos. Scent to Whereas consumers in the United States survey, 5,000 consumers were surveyed from 10 Sarah Palin on the campaign trail. have been feeling a progressive pinch on their JAKE ROTH/AP PHOTO PHOTO BY Launch at Wal-Mart discretionary income, the Chinese economy countries: Brazil, China, Colombia, Germany, • Diane von Furstenberg’s continues to enjoy an historic expansion. According Thailand, India, Italy, Japan and the United Superheroines to the Chinese National Bureau of statistics, the Kingdom. The survey investigated a • More photos from the campaign trail • Fred Segal Beauty average Chinese consumer spends about 10% of wide range of lifestyle issues related • The Spring Season: Paris, Milan, London Shuttering their income to clothing. to clothing, shopping and textiles. • Retail Stocks Fall Thursday and New York Amid Spending Fears • Global breaking news • World of Juicy Couture • Daily stock prices Comes to Fifth Avenue WWD, THURSDAY, OCTOBER 9, 2008 3 WWD.COM CFDA Welcomes New Members Givaudan Sales Slip NEW YORK — “The yoga room was not so Zen.” who wants to stay that they can watch the de- PARIS — Swiss flavors and fra- Peter Som’s assessment of the lively CFDA bate in the screening room,” Rory Tahari said. grance supplier Givaudan posted party at Elie and Rory Tahari’s SoHo home And so they did — bar the hostess herself, who third-quarter sales that were Tuesday night couldn’t have been more spot-on. snuck off after the party to catch Madonna at down 4.2 percent to 1.05 billion Over the course of the night, many of the guests Madison Square Garden. Swiss francs, or $984.8 million at crowded the Taharis’ rooftop yoga room and the Meester showed her allegiance for new average exchange. adjoining terrace, including Leighton Meester, member Dana Foley by wearing a strapless For the first nine months of Phillip Lim, Richard Chai, Martha Stewart and black dress by the designer. Fresh off the set 2008, the fi rm generated sales of Nicole Miller. of “Gossip Girl,” the 3.15 billion Swiss francs, or $2.98 With the stock market actress said she didn’t billion at average exchange for the in a free fall, the presi- have time to worry period, representing a 1.4 percent dential race in its last about what she would increase in Swiss francs and a 9.8 four weeks and retailers wear. “I fi nished work percent hike in local currencies. gripping for rocky months at six, got home around On a pro forma basis — as- ahead, guests chose to seven and my friend and suming Quest International had celebrate a new crop of stylist Tom came over been consolidated in Givaudan’s CFDA members that was JIMI CELESTE PHOTOS BY with a few of the dress- books since Jan. 1, 2007, and ex- being welcomed at the es he had pulled. And I cluding the impact of portfolio Givaudan ceo event. “I was a new mem- had earrings, a jacket streamlining — sales were up 3.4 Gilles Andrier. ber last year,” Chai said. “I and purse. But Foley + percent in local currencies, the am passing the torch. I am Corinna is one of my fa- company said. doing the hazing.” vorite stores — really.” Givaudan added it is confi dent it will achieve its savings target of 200 Diane von Furstenberg, Nicole Miller chat- million Swiss francs, or $177.5 million at current exchange, by 2010. Tory Burch, David Neville, ted with new inductee “Givaudan is well positioned to again grow above market as of 2009 and Marcus Wainwright, Tina Cheryl Finnegan, whose to reach pre-acquisition margin levels by 2010,” the fi rm stated. “In the Lutz, Marcia Patmos, Virgins, Saints & Angels coming fi ve years, 2009 to 2013, Givaudan aims [to create] 620 million Swiss Yeohlee Teng, Arnold jewelry is carried in francs [or $550.2 million] of incremental sales on top of the market growth.” Scaasi and Charles Nolan her freestanding stores. In the nine-month period, Givaudan’s fragrance division generated were among the other Asked if she offered sales of 1.46 billion Swiss francs, or $1.39 billion, an increase of 2.3 per- designers welcoming Elie Tahari with any advice to Finnegan, cent year-on-year in Swiss francs and 10.7 percent in local currencies. such new members as Leighton Meester. Miller said: “This is a “All core businesses — consumer products, fi ne fragrances and Ron Anderson, Michael tough road. After the specialty ingredients — showed healthy growth,” the company stated. Bastian, Philip Crangi, past two days, everyone “Fine fragrance sales continue to show an improving trend.” Naeem Khan, Loree realizes it’s going to be — Brid Costello Rodkin, Kara Ross and tough for every designer, Araks Yeramyan. The new- especially new ones.” bies were just part of the And, of course, night’s attraction, though. “the best thing anyone BEAUTY BEAT Many were relishing the could do would be to Tahari home (Rupert go out and spend some Murdoch’s old digs) and money,” Miller said. Douglas Perfumeries Revenues Rise taking in the city vistas “So go out and buy from the multitiered roof something crazy like a BERLIN — Douglas Group said Wednesday that annual revenues at its deck. “I think Elie put the tutu,” Finnegan said, Perfumeries division were up 8.8 percent to 1.83 billion euros, or $2.75 moon and Mars up there,” gesturing toward the billion at average exchange, citing preliminary fi gures for the fi scal joked Stan Herman, point- one she was wearing. year ended Sept. 30. ing to the picture-perfect While inductees On a comparable-store basis, Douglas Perfumeries sales rose 3.1 percent. starry night. ▲ Left: Diane von Furstenberg, Rory Tahari sported corsages to re- International sales increased by 14.1 percent to 914.4 million euros, Stewart inspected and Steven Kolb. Right: Tory Burch and fl ect their newly minted or $1.37 billion — a 4 percent rise on a same-space basis — and now the kitchen, washroom Philip Crangi status, Matt Murphy account for 50 percent of Douglas’ turnover. and bar area. Newcomer donned an oversize hot In its domestic market, Douglas reported a 4 percent sales gain, or Eunice Lee said, “We were just salivating pink “Palin Insane” button designed by artist 2.3 percent on a same-space basis. over this apartment. We were saying, ‘Let’s Cecily Brown. “I’m promoting democracy to- Douglas opened 77 new stores outside of Germany, primarily in work hard so that we have a place like this, night,” he said. Poland, Spain and Italy, and launched operations in Bulgaria, Croatia too, one day.’” Amy Chan chimed in: “That’s a great thing. and Romania. Rory Tahari admitted there was a pre-party People want to do different things, step out There are now 726 locations outside of Germany, compared with “aha moment,” when the couple realized its more and make that last effort. This time is 445 domestic stores. Douglas said the greatest gains were made in gathering confl icted with the second presiden- such a pivotal time.” Poland, Holland, Russia, Italy and at its newly acquired Baltic stores, tial debate. “Elie said we’ll just tell everyone — Rosemary Feitelberg and Marc Karimzadeh but added that sales in Spain suffered from a weak consumer environ- ment in the second half of the year. The Group, which also includes bookstore, jewelry, fashion and con- fectionery retail divisions, boosted sales 4.6 percent, or 1.8 percent on Sun Breaks Off Two Divisions From Kellwood a same-store basis, to 3.1 billion euros, or $4.6 billion. Group sales rose by 8.1 percent when adjusted for sales from last By Whitney Beckett portfolio, together accounting for about $600 million year of the Pohland and René Kern apparel retail businesses, which in volume and much of the company’s net income. Douglas has divested. Its remaining 15 AppelrathCüpper fashion stores KELLWOOD CO.’S PORTFOLIO CONTINUES “One of the fi rst things Sun did was break off saw sales decline 8.3 percent during the fi scal year. to slim down, as the company confirmed it will Gerber and American Recreation Products as Douglas Group said that on the basis of the preliminary sales fi g- no longer license the bridge-priced ck Calvin stand-alone companies,” said Michael Kramer, ures, its earnings forecast “remains just within reach.” The Group set Klein line. the new chief executive offi cer of Kellwood. a pretax profi t target of about 150 million euros, or $205.2 million at Phillips-Van Heusen Corp. said in July that “There were very little synergies with the rest current exchange. it would move the Calvin Klein white label li- of the women’s wear portfolio.” The company plans to announce fi nal fi gures Jan. 14. cense from Kellwood Co. to G-III Apparel Group Removing the sleeping bag and children’s com- — Melissa Drier Ltd., but PVH initially declined comment on the ponents of the business leaves Kellwood with a bridge sportswear license, which Kellwood has women’s apparel-focused portfolio, just shy of $1 held only since 2006. Sources speculate G-III billion in volume. Kellwood’s remaining brands will also receive the bridge sportswear license. include Baby Phat, Vince and Sag Harbor, on U.S. Prestige Beauty Biz Stabilizing Kellwood’s licensing agreements with PVH ran which Kramer is now focusing his full energies. Second-quarter prestige beauty sales rebounded in the U.S. from fi rst-quar- through 2012, but both companies had said they Positioned as stand-alone businesses, Gerber ter declines, and fi rst-half volume totaled $3.8 billion, a 1 percent decline were unhappy with the lines’ performances. and American Recreation could be more easily compared with the same period last year, according to The NPD Group. Calvin Klein Inc. has no immediate plans to sold, if the private equity fi rm decides to cash “The U.S. prestige beauty industry is showing signs of stabilizing renew the bridge license in the U.S., focusing out on them. Sun Capital could not be reached from a slow start to the year,” NPD stated, adding, “The second quarter on the Calvin Klein Collection and Calvin Klein for comment Wednesday. of 2008 was the strongest quarter in the past three years.” white label businesses in the U.S. Overseas, Kellwood acquired Gerber in 2002 and Prestige skin care sales were up 2 percent in the fi rst half, to $1.2 bil- however, the ck Calvin Klein line is seen as a American Recreation in 1989, and their soft lion, while makeup sales were down 2 percent to $1.6 billion (following key driver in Europe, the Middle East, Asia and goods products consistently helped offset loss- a second quarter gain of 3 percent) and the fragrance category sagged 3 Japan with more than 58 freestanding stores by es from Kellwood’s more mature women’s ap- percent to $1 billion, after a 2 percent increase in the second quarter. the end of 2007 and another 50 planned to open parel brands. Within the skin care category, facial skin care products priced at by the end of 2010. “Post closing, we realized that these businesses $70 or more grew the fastest — at 8 percent to $365.1 million. In fra- Additionally, this summer, Sun Capital were noncore to Kellwood and that they were self- grance, scents that have been on the market for more than a year drove Partners Inc., which bought Kellwood in contained units having independent management second-quarter growth. February, broke off the vendor’s nonapparel teams, IT systems, back-offi ce support, and sales Internationally, prestige beauty sales were up 2 percent in France in divisions, American Recreation Products Inc. and marketing teams,” said Richard Hurwitz, vice the fi rst half, with makeup sales up 6 percent, fragrance sales up 3 per- and Gerber Childrenswear Inc., into separate president of communications for Sun Capital. “As cent and skin care sales down 1 percent. Italy’s prestige beauty market stand-alone companies within Sun but out- such, by spinning them off to operate as stand- was up 1 percent, with makeup up 6 percent, fragrance up 3 percent and side Kellwood. alone companies, we will free their respective skin care down 2 percent. Prestige beauty sales in China showed the big- American Recreation and Gerber were among management teams allowing them to focus effec- gest growth, with sales in six major cities rising 28 percent overall. the most profi table parts of Kellwood’s $1.6 billion tively on fulfi lling their strategic plans.” — Matthew W. Evans 4 WWD, THURSDAY, OCTOBER 9, 2008

Financial SEPTEMBER SAME-STORE SALES Retailers Focus on Inventory After Rough Month SEPTEMBER AUGUST JULY 2008 2007 % CHANGE % CHANGE % CHANGE % CHANGE Continued from page one expected, and The Bon-Ton Stores Inc. was down slight- DEPARTMENT STORES into the holiday season. ly less, 4.6 percent. Upscale Neiman Marcus Inc. posted a 15.8 percent Specialty retailers didn’t fare any better than depart- Bon-Ton -4.6 -7.1 -10.3 0.7 drop in comps, the biggest decline reported by any ap- ment stores. Maintaining third-quarter guidance, The Dillard’s -12.0 -7.0 -7.0 2.0 parel retailer on Wednesday, and was the fi rst to sound Wet Seal Inc. dropped 7.5 percent as the fl agship brand Kohl’s -5.5 -3.2 -5.8 -10.4 an alarm about inventories. sagged 3.1 percent versus a 21.7 percent plunge at Arden Neiman Marcus -15.8 6.0 -0.4 -2.0 “Based on our September performance and the cur- B. Brean Murray, Carret & Co. retail analyst Eric Beder Nordstrom -9.6 3.2 -7.9 -6.1 rent economic environment, we expect customer de- said, “There are more than enough further catalysts in mand will remain weak for an extended period of time,” 2009 for investors to remain confi dent in Wet Seal,” pin- J.C. Penney -12.4 -4.6 -4.9 -6.5 said Burt Tansky, chairman and chief executive offi cer. pointing the company’s cost-cutting initiatives. Saks -10.9 7.7 -5.9 -5.3 “As a result, we currently anticipate that our fall season Missy retailer Caché Inc. reported a 6 percent de- Average: -10.1 -0.7 -6.0 -3.9 gross margin will decline on a year-over-year basis and cline in comps, while maternity retailer Mothers Work Inc. saw a 1.3 percent dip. that inventory levels will be higher than planned. Our SPECIALTY CHAINS entire team is focused on stimulating sales, lowering Children’s Place Retail Stores Inc. posted fl at comps, inventory levels, reducing expenses and evaluating all versus a 3 percent drop in 2007. Aéropostale 5.0 1.3 13.0 13.0 capital projects.” Teen retailer American Eagle Outfi tters Inc. report- American Eagle -6.0 -2.0 -5.0 -7.0 Citigroup broadlines retail analyst Deborah Weinswig ed a 6 percent decrease in comps, despite the fact that Bath & Body Works -7.0 -2.0 -5.0 -5.0 added Neiman’s publicly held rivals Saks Inc. and men’s apparel comped upward in the high-single digits. Caché -6.0 3.0 -6.0 2.0 Nordstrom Inc., which both lowered their third-quarter The women’s fashion selection was “not appealing to the The Children’s Place 0.0 -3.0 0.0 0.0 guidance, “defi nitely did not cut enough inventory” either. target customer,” said Citigroup retail analyst Kimberly Unlike Saks, Nordstrom decided against launching Greenberger of the mid-teen decline in women’s ap- Hot Topic -1.8 -2.9 -2.7 -2.1 promotions for fear that when the economic slowdown parel comps. Mothers Work -1.3 -7.0 7.2 2.8 ends, its customers would be “addicted” to the sales, Greenberger said she doesn’t expect the trends for Pacifi c Sunwear -5.0 2.7 -6.0 -4.0 “kind of like a drug,” Weinswig said. the women’s business to change in time for the holi- Rite Aid 1.7 0.7 1.1 1.2 Saks had a 10.9 percent comp decline while day season. Victoria’s Secret -7.0 -6.0 -8.0 -6.0 Nordstrom saw a 9.6 percent drop. Rival Aéropostale Inc. was the day’s specialty comp Although most retailers moved up their September leader, reporting a 5 percent jump versus a 1.3 per- Walgreen 4.7 4.7 0.9 4.1 reporting day to Wednesday because of the observance cent gain in comps last September. Pacifi c Sunwear Wet Seal -7.5 -7.0 -8.7 -8.2 of the Yom Kippur holiday, a handful — including Gap of California Inc.’s 5 percent decrease in same-store Zumiez -9.0 13.9 0.2 -1.4 Inc., Abercrombie & Fitch Co. and Chico’s FAS Inc. — sales came despite a 21 percent drop in comps in its Average: -3.0 -0.3 -1.5 -0.8 will release their September results today. California, Florida and Desert Southwest stores and Retail shares seesawed up and down Wednesday, but 18 percent drop in the region including the Rocky ended off 0.9 percent, as the Standard & Poor’s Retail Mountains, Great Plains and Pacifi c Northwest. As a Index slid 2.82 points to 300.77. result, the teen retailer said it now estimates that its MASS MERCHANTS Despite the poor sales showing, retailers outper- third-quarter earnings will be at the low end of its pre- BJ’s Wholesale Club* 10.4 3.9 15.4 16.7 Costco 7.0 4.0 9.0 10.0 Stein Mart -14.8 -9.1 -9.9 -8.7 From a fi nancial perspective, it seems as though we are getting Target -3.0 1.2 -2.1 -1.2 “ Wal-Mart (discount stores)* 2.4 0.8 3.0 3.0 closer to the bottom. But it is unclear what the consumer will do if the Average: 0.4 0.2 3.1 4.0 credit market hardens. Retailers will take a hit. ” Tally: — Matt Katz, Alix Partners Up 6 13 8 10 Flat 1 0 1 1 formed the broader market writ large. The Dow Jones viously announced range of breakeven to 5 cents a di- Down 18 12 16 14 Industrial Average fell 2 percent, or 189.01 points, to luted share. Total 25 25 25 25 9,258.10, shedding nearly 350 points in the fi nal half While both retailers were in line with expectations, hour of trading after spending most of the afternoon in Greenberger said inventories were higher than those of positive territory. other specialty retailers. EXCLUDES COMPANIES THAT DIDN’T REPORT ON WEDNESDAY. *EXCLUDES FUEL SALES The fi nal numbers put the Dow 19.6 percent lower In general, inventory in the softlines sector was down SOURCE: COMPANY REPORTS than its 11,510.74 fi nish exactly one month earlier. a “phenomenal” 9 percent, but PacSun and Aéropostale $41.30. Stein Mart dropped 14 percent to $2.53. As for comps, while department and specialty stores are a little bit more “concerning,” Greenberger said. Specialty stores taking the biggest hit were American struggled, discount retailers held their own. The move- “Aéropostale had inventory per square foot up 9 per- Eagle, down 9.9 percent to $11.27; Hot Topic Inc., 8.4 ment towards value-driven shopping has become a rem- cent. That won’t prove to be a problem for them if they percent to $4.92; Pacifi c Sunwear, 7 percent to $4.77, and edy for ailing consumers, Customer Growth Partners can continue to deliver double-digit same-store sales in- Caché, 6.7 percent to $4.59. Vendors losing ground in- LLC president Craig Johnson said. creases, but it looks like, based on the deceleration we cluded: True Religion Apparel Inc., down 9.7 percent to “What had been a rotation to value retailers has be- are seeing across the board in September, that it is not $19.73; Polo Ralph Lauren Corp., 5.1 percent to $51.40; come a full-fl edged fl ight to value, and that’s why we are likely,” she said. “That inventory position could come Nike Inc., 3.9 percent to $55.70, and Fossil Inc., 3.5 per- seeing such relatively strong results from the Wal-Marts, back to bite Aéropostale throughout the quarter and cent to $22.88. Costcos and BJ’s of the world,” he said. could lead to higher markdowns. The start of trading on Wednesday followed the an- As a result, department stores and mall-based retail- Inventory for PacSun was up 2.6 percent. In order nouncement of coordinated interest rate reductions in ers are taking the biggest hits in this economy, as more for the company to clear inventory, the retailer had the U.S. and Europe. That came too late to help stocks consumers opt for one-stop shopping, he said. to increase markdowns, causing it to lower guidance, in Asia, however. In Tokyo, the Nikkei 225 withered In addition to Wal-Mart’s 2.4 percent pickup, BJ’s she said. 9.4 percent, or 952.58 points, to 9,203.32 — the steep- Wholesale Club Inc. was up 10.4 percent for the month, “In many ways, specialty retailers have the same est percentage drop in over 20 years. Among those excluding fuel, and Costco Wholesale Corp. up 7 percent. fate as department stores,” said Alix Partners manag- registering steep declines were Link Theory Holdings Mall traffi c fell off signifi cantly in September, accord- ing director Matt Katz, who added consumers continue Co. Ltd., down 14 percent; Shiseido Co. Ltd., 12.3 per- ing to research fi rm ShopperTrak. The number of cus- to trade discretionary items for consumable items. cent; Onward Holdings Co. Ltd., 9.9 percent, and Fast tomer visits to stores dropped 9.2 percent in September, One-stop shopping is just one of the reasons why shop- Retailing Co. Ltd., 8.8 percent. Elsewhere in Asia, trad- compared with the 3 to 5 percent average declines seen pers prefer discounters, he said, noting that, while ers in Hong Kong pushed the Hang Seng Index down 8.2 so far this year, ShopperTrak said. Target’s apparel focus may help it improve sales dur- percent, or 1,372.03 points, to 15,421.73. On average, comps for department stores tracked by ing the holidays, the overall season “won’t be pleasant” European stock markets also slid dramatically, but WWD fell 10.1 percent, versus a modest 0.7 percent dip for any retailers. not quite as severely as their Asian counterparts. In last September. Specialty stores were down 3 percent “From a fi nancial perspective, it seems as though we London, the FTSE 100 fell 5.2 percent, or 238.53 points, and mass merchants up 0.4 percent. However, Target are getting closer to the bottom,” he said, referencing to 4,366.69. Decliners included Asos plc, down 12.7 per- Corp. and Stein Mart Inc. posted declines of 3 and 14.8 the recent fi nancial crisis. “But it is unclear what the cent; French Connection Group plc, 6.5 percent, and percent, respectively. consumer will do if the credit market hardens. Retailers Marks and Spencer Group plc, 3.9 percent. Investors Like Neiman’s, J.C. Penney Co. Inc. and Dillard’s will take a hit.” in Paris pushed the CAC 40 down 6.3 percent, or 235.33 Inc. reported double-digit comp declines Wednesday, Katz said he thinks consumers will continue to feel points, to 3,496.89. In Milan, IT Holding SpA fell 28.1 with drops of 12.4 and 12 percent, respectively. With the pain into the fi rst and second quarters of next year. percent and Safi lo Group SpA lost 10.8 percent. In the anticipated “continuation of weaker sales trends,” “We are preparing our clients for the tsunami of ’09,” Frankfurt, Escada lost 12.1 percent. Penney’s lowered earnings guidance for the third quar- he said. Even in the absence of a rally, economists were en- ter to 50 to 60 cents a share from a range of 70 to 75 Others still have a slightly more optimistic view. couraged by the coordinated rate cuts in the U.S. and cents. The department store also said October comps “The consumer is still out there,” said Citigroup’s Europe. are expected to decrease by low-double digits. Weinswig. “She might be on life support, but she’s “The move to coordinated action by the major central “During the September period, further weakening there.” banks represents a new phase in the global fi nancial of the economic climate was accompanied by unprec- On Wall Street, Saks led department store stocks crisis,” said Brian Bethune, chief U.S. fi nancial econo- edented events in the fi nancial markets,” said Myron E. down, falling 13.3 percent to $6.24. Other decliners in- mist at Global Insight. “While overdue, these moves are “Mike” Ullman 3rd, chairman and ceo. “As a result, our cluded J.C. Penney, down 4.6 percent to $27.25; Sears much more effective than unilateral action in terms of business was impacted by falling consumer confi dence Holdings Corp., 3.3 percent to $76.23, and Macy’s Inc., defusing the contagion and negative feedback loops that and spending levels, and mall traffi c experienced an 2.5 percent to $13.36. have been spinning back and forth from one major mar- even greater decline than in previous months.” In the discount realm, Wal-Mart’s shares slid 0.5 per- ket to another.” Kohl’s Corp.’s decline of 5.5 percent was better than cent to $54.55, as Target managed a 3.6 percent rise to — With contributions from Evan Clark and Liza Casabona WWD, THURSDAY, OCTOBER 9, 2008 5 WWD.COM For full daily stock changes, see WWD.com. European Firms Brace for Uncertain Holiday By WWD Staff euro, or $252.3 million bond, which expires in 2012. That debt is nearly six times IT Holding’s market WITH BRITAIN VERY NEARLY IN RECESSION, BANKS capitalization of 54.8 million euros, or $74.7 million. Last in northern Europe buckling and lines of credit rapidly month, credit rating agencies Moody’s and Standard & shriveling, few retailers are looking forward to a bum- Poor’s downgraded their outlook on the stock to “nega- per holiday season. tive” on concerns that a decline in consumer spending However, industry principals and observers in is hurting earnings. Compounding matters, IT Holding’s Britain and continental Europe believe the fi ttest com- parent company, PA Investments SA, is also saddled panies will survive the current storm — provided they with around 140 million euros, or $191 million, in debt. aren’t highly leveraged — and principals at both ends of IT Holding chairman Tonino Perna, who controls 61 per- the market are looking on the bright side. cent of IT Holding via PA (and a further 1 percent via GTP On Wednesday, the Bank of England slashed inter- Holding SpA, a separate holding company for PA), confi rmed est rates by 0.5 percent to 4.5 percent, giving retailers last month he is in negotiations with a Hong Kong-based in- and consumers alike a much-needed boost. That move vestor to sell a minority stake in PA, offi cially to open up the followed the government’s 500 billion pound, or $865 Asian market, but by doing so also reducing PA’s debt. billion at current exchange, bailout of some of Britain’s While some company principals are struggling with largest banks earlier in the day. debt, others see this as a moment of opportunity — or “I’m a retailer, not a clairvoyant, which means I don’t downright success. know what holiday sales are going to be like,” said Sir “Despite everything that’s going on, we’ve had an ex- Philip Green, whose stable of companies includes ceptionally strong September, with signifi cant double- Topshop, Miss Selfridge and British Home Stores, a digit growth, and we’re still seeing that’s the case in the mass market general merchandise chain. “We can end early days of October. The last six weeks have not shown the world now, or try and stay upbeat about the future,” signs of slowing,” said Sven Gaede, chief executive of added Green, who’s positive despite BHS reporting a 27.9 Net-a-Porter.com. percent slump in annual net profi ts earlier this week. “We’re not seeing a fundamental shift in our custom- Asked about his Arcadia Group’s overall debt load, Some feel retailers that cater to ers’ pattern of behavior or the composition of their buy. I Green said the company was in good shape: “There is no younger customers, such as Topshop, think the customer is a luxury, designer goods customer, so specifi c leverage,” he said, adding he was in a position will be better insulated from the crunch. they’re slightly more protected from the goings on, they’re to fi nance a “sizable acquisition” with the company’s more resilient to this type of turbulence,” he added. own resources should the right opportunity arise. In Germany, the Munich specialty store Ludwig Beck Mounir Moufarrige, president of Emanuel Ungaro, is plc, as well as Saks Inc. “All of those companies’ share is experiencing similar success, having reported a 10.4 also keeping his chin up. “I doubt that [this crisis] will prices have bombed — they’ve lost more than 50 percent percent sales gain in the third quarter. Adjusted for last as long as people fear. In high fashion we’re likely of their value since Baugur purchased them — so that store closures last year, sales rose 13.3 percent. “Given to suffer less because at the end of the day we’re not will increase Baugur’s debts,” said Freddie George, a the weakening economy, this result indicates we’ve selling to 300 million people, we are selling to a fraction research analyst at Seymour Pierce in London. taken the right road with our trading up strategy,“ said of the population,” he said. Earlier this month, however, Baugur issued a state- chief fi nancial offi cer Dieter Münch. Lisa Montague, chief operating offi cer at Mulberry ment saying it wasn’t overly concerned about the stock Paddy Byng, chief executive offi cer of Smythson, said Group plc, said the company was cautiously optimistic. market crises: “We are focusing on large retail projects “Year to date we are meeting our targets. We are 10 percent “We have to take a deep breath and be bold. Mulberry is and will continue to operate based on that strategy as up on last year with positive like for likes. This positive small, there’s strong growth, we own our manufacturing well as remain committed to working on our portfolio performance in a very challenging economic environment facilities, and we’re not highly leveraged, so we’re well- to continue to create value and growth. Our businesses makes me feel cautiously optimistic that our positioning as placed to get through this,” she said. “We’re hoping that continue to perform well in what are evidently tough one of the leading luxury gift brands will stand us in good this crisis is once-in-a-lifetime stuff.” market conditions. For Baugur, it is business as usual,” stead during the all important Christmas period.” George Wallace, chief executive of the London-based said Gunnar Sigurdsson, chief executive offi cer. Jimmy Chan, the owner of Rue du Mail by Martine MHE Retail consultancy, said there is a lot of media frenzy But on Monday, Britain’s largest corporate insolvency Sitbon who also runs a Y-3 shop in New York and Evisu in the U.K. that is feeding retailers’ and consumers’ fears specialist Begbies Traynor predicted a rash of insolven- boutiques in Hong Kong, is also relatively upbeat. alike. “There is this sense of Armageddon, which is real cies among U.K. retailers in the new year. It said it had a “Obviously there is going to be an impact. But the re- for some retailers — but less real for others,” he said. short list of more than 300 companies that could go bust, action has been different from different buyers so far. Wallace said British retailers such as Topshop and although a spokeswoman declined to reveal any names. Smaller boutiques catering to the niche are doing well New Look that cater to young consumers — who aren’t Debt problems — and weak balance sheets — are not and actually increasing their orders some,” he said. necessarily worried about mortgage payments or job limited to British companies, though. Across Europe, Jean Touitou, the owner of APC, said his business was losses — would be more insulated from the credit crisis, fi rms are struggling with the economic downturn and thriving. “Paradoxically, I’m happy because for the last unless their balance sheet is highly leveraged. the tighter credit markets. three years I’ve been killed by the value of the dollar and The Icelandic group Baugur is particularly exposed IT Holding SpA, the Italian fashion group that owns the yen. With those currencies gaining value I’m making because of its debts from fashion retail acquisitions, the Gianfranco Ferré, Malo and Extè brands and op- up for the money I lost,” he said. and the credit woes stemming from this week’s collapse erates under license the Just Cavalli, C’N’C Costume “Our business is better than ever — even in New York. of the major banks in Iceland. Although Baugur is a pri- National and Galliano labels, has lost nearly half its During the last big crisis in the Nineties, we did well, vate company, it holds a number of stakes in listed com- value on the Milan Bourse in the last month. The fi rm too. We tend to do even better in crisis periods. People panies, including French Connection Group plc, Moss is weighed down by almost 318 million euros, or $433.8 are going for the most expensive and most exceptional Bros Group plc, Debenhams plc and Woolworths Group million, of debt, including an expensive 185 million pieces. People with cash won’t disappear,” he added.

10 BEST PERFORMERS 10 WORST PERFORMERS

DAILY COMPANIES P/E VOLUME AMT DAILY COMPANIES P/E VOLUME AMT HIGH LOW LAST %CHANGE HIGH LOW LAST %CHANGE

5.99 4.00 General Growth (GGP) 18.7 17744650 5.42 +20.00 0.50 0.29 Nitches (NICH) - 20829 0.36 -32.06

11.58 8.90 CBL (CBL) 12.9 4246451 10.81 +19.84 0.24 0.151 NexCen (NEXC) - 180791 0.151 -31.36

0.84 0.75 Joe’s Jeans (JOEZ) 10.0 199928 0.83 +4.99 2.29 1.42 Ashworth (ASHW) - 94040 1.62 -29.33

20.00 17.59 Lululemon (LULU) 30.0 807283 19.10 +4.49 0.10 0.10 Blue (BLHI) - 41700 0.10 -23.08

25.80 22.61 Family Dollar (FDO) 14.1 6845529 24.38 +4.37 0.45 0.38 Charles & Colvard (CTHR) - 38853 0.3849 -19.81

2.55 2.16 Crocs (CROX) 2.2 2883750 2.45 +4.26 1.12 0.95 Birks & Mayors (BMJ) 2.7 6346 0.95 -18.80

4.45 3.80 Chico’s (CHS) 33.4 7246356 4.17 +3.99 1.14 0.80 Hartmarx (HMX) - 175228 0.86 -14.85

33.53 29.37 Children’s Place (PLCE) - 1694572 31.49 +3.62 0.26 0.21 IT Holding * (ITH:MI) - 2651905 0.22 -14.10

42.78 37.40 Target (TGT) 11.9 30504595 41.30 +3.61 2.99 2.48 Stein Mart (SMRT) - 283226 2.53 -13.95

21.79 19.24 Gildan Activewear (GIL) 15.0 1912905 21.05 +3.44 7.25 5.94 Saks (SKS) 24.0 4664679 6.24 -13.33

* Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. 6 WWD, THURSDAY, OCTOBER 9, 2008

Emanuel Ungaro Jil Sander

String Fever For spring, designers strung their audiences along with one fringe motif after another, channeling moods as varied as Louise Brooks’ fl apper chic and Annie Oakley’s sharpshootin’ Western wear. WWD, THURSDAY, OCTOBER 9, 2008 7 WWD.COM

Elie Saab Gaspard Hermès Yurkievich

Alberta Ferretti PHOTOS BY GIOVANNI GIANNONI AND DAVIDE MAESTRI GIANNONI AND DAVIDE GIOVANNI PHOTOS BY 8 WWD, THURSDAY, OCTOBER 9, 2008 WWD.COM Denim Report Organic Shift a Boon Paige Punches Up Retail in Vegas, N.Y. Next For Monkee Genes By Ellen Groves PARIS — Going organic is proving just the business for Monkee Genes. Monkee, which hails from Bakewell, a small town in Derbyshire, England, became the fi rst denim label to obtain the U.K.’s highly respected Soil Association or- ganic certifi cation in July. Retail doors haven’t stopped opening since. The 32-piece collection for women and men goes on sale in Macy’s this month, while the U.K.’s House of Fraser and Selfridges are negotiating orders. An initial run in London’s Topshop last month, where Monkee opened a concession in June 2007, sold out within 10 days. Monkee was founded in 2006 by Phil Wildbore, the designer behind the 25-year-old Road Jeans label. Monkee and Road together generated 2007 sales of nearly a million pounds, or $1.8 million at current ex- change, and this year sales are expected to more than double to 2.5 million pounds, or $4.4 million, largely driven by Monkee. “This idea that we can’t be green and be successful is just b---s,” Wildbore declared, adding that indepen- dent companies have the potential to thrive in tough times. “During a recession the high street goes even more bor- ing and indies can have a pop at Paige Premium Denim’s new the market.” store in Las Vegas’ Grand Canal Shoppes at the Venetian. PHOTOS BY DENISE TRUSCELLO PHOTOS BY

By Khanh T.L. Tran Adams-GellerA had been fl irting withw the idea of expanding her LOS ANGELES — Paige Premium brandedb retail business to Las Denim is looking to new stores in Vegas,V where Paige is sold at Las Vegas and New York to coun- Scoop,S Intermix, Neiman Marcus ter the effects of the economic anda Nordstrom, she didn’t seri- downturn, which is expected to ouslyo consider the jump until force a pull back among the com- thet Venetian hotel called her in pany’s wholesale customers. FebruaryF to set up shop there. Three years after unveiling its Straying not too far from the fi rst fl agship here on Robertson bridgeb where one boards the gon- Boulevard, the premium denim dolasd inside the Italian-themed brand opened a larger, grander casinoc and hotel, visitors would boutique in Las Vegas’ Grand walkw past shops for BCBG and Canal Shoppes at the Venetian LladróL before arriving at the hotel on Monday. The company is PaigeP store, which is near the now readying for the Nov. 24 rib- entrancee to the Palazzo, where Monkee aims to stand bon-cutting of a loft-like store in BarneysB New York is located. out with its marketing, New York’s Meatpacking District. “We did research on traffi c at with banana embla- “This is a good strategic move tthe Venetian,” Adams-Geller said. zoned merchandising for us,” said Paige Adams-Geller, ““It was great traffi c.…It’s a great and slogans like “Our the namesake founder of the pplace to build domestic exposure customers are not paid Culver City, Calif.-based label. aand international exposure.” peanuts.” And though “As a company, we really seri- Paige Premium Denim founder Paige Sharing the chic but homey selling at a slight pre- ously look to see where we want Adams-Geller in the Las Vegas store. feel of the Los Angeles store, Organic fl ares at mium, the organic of- to conserve money and where we with a palette in chocolate Monkee Genes. ferings remain affordable want to strategically grow. My idea for the brand since brown, ivory and sea foam green, the Las Vegas unit at 50 pounds, or around $90. the inception was I always wanted to be an international sparkles with a little more fl ash. The fl oors are composed “Proof that organic products can also be good value lifestyle brand. With that focus, the stores are where we of metallic tiles, unlike the concrete poured into the Los for money,” said a Topshop spokeswoman, who added can grow the business.” Angeles shop. Stainless steel bars and glossy white tables that reaction to the organic line has been strong. Adams-Geller declined to disclose fi nancial fi gures enhance the Macassar ebony wood cut into shelves. While steering clear of what he calls ethnic, hippy for the privately held company. She said that even in the The Las Vegas shop will display wares from various designs, the move to organic did infl uence Wildbore’s current economic crunch, the 1,200-square-foot store in brand extensions that Paige has introduced through the aesthetic and inspire him to add fl are styles. Los Angeles — located a few blocks away from popular years, including $169 boot-cut style jeans, $795 leather “It felt right to have vegetable-dyed fl ares,” he multibrand boutiques such as Lisa Kline and Kitson, jackets from Paige Black Label, petite sizes and mater- said. and near freestanding shops by rival denim labels in- nity jeans and $179 dungarees from PPD Jeans for Men. Other cuts include skinny, “supa” skinny and hip cluding Seven For All Mankind and True Religion — is a Adams-Geller said that while the Los Angeles store hugger, available in three fi nishes — Sateen, a shiny money maker. What’s more, she said it behooves a brand stocks more denim to outfi t the laid-back California life- fi nish, raw denim and a fi ne corduroy. Colors run the to fend for itself in a slowing economy that may crimp style, half the items in the Las Vegas shop will represent gamut from bold reds, purples and greens to more neu- opportunities at the wholesale level. more tailored looks from Paige Black Label. tral grays. “Especially now in the economic times, retailers have Paige’s New York outpost will be located at 869 In addition to certifying the cotton as organic, the cut the number of premium denim brands in the stores,” Washington Street, tucked between two Scoop shops and Soil Association, which Wildbore dubs the “Rolls- she said. “Through tough times, retailers seem to nar- neighboring designer and contemporary fashion pur- Royce of accreditation,” inspects everything from the row the breadth of product. They’re a little more par- veyors such as Alexander McQueen, Stella McCartney, dyes used to the working conditions. “Our standards ticular about what they want in [their] stores. At many Jeffrey and Diane von Furstenberg. The store will high- are some of the highest in the world,” assured Sarah times, Paige as a brand is so big and broad. There are so light more cutting-edge designs and fabrics, such as Compson, the association’s business development offi - many styles that no one ever gets to see in a department skinny jeans, ankle peg styles, trenchcoats, leather and cer, who added other denim brands have since applied store. But the [Paige] store can carry it.” a thick and stretchy wool blend called ponte di roma. for certifi cation. Paige moved into the 1,600-square-foot space at the The 1,000-square-foot space affords a more intimate en- And certifi cation isn’t easy to acquire. It took 18 Grand Canal Shoppes vacated by handbag maker Dooney vironment, and Adams-Geller will stick with her choco- months to approve the factory, where certain dyes & Bourke, which, according to Adams-Geller, graduat- late brown and ivory palette to complement the exposed had to be replaced. Then two months before launch, ed to a larger location in the Venetian hotel. Although brick wall and dark wood fl oors. Wildbore was informed the Pop Art-inspired back pocket labels didn’t qualify as organic because they contain polyurethane. Hence the detachable label. “Because it comes off and because we’ve got a dis- Increase in U.S. imports of women’s claimer [saying it’s not organic] on the label, we can get away with it,” he said. With six different designs, denim trousers from Nicaragua for the label has become a selling point and the brand has the year through July. lodged a patent application for the invention. For spring, the collection will include more fi nish- % es and, eventually, Monkee will convert completely 90.5 SOURCE: U.S. COMMERCE DEPARTMENT’S OFFICE OF TEXTILES & APPAREL to organic. GET IT RIGHT

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WWD_Apparel_100908.indd 1 10/8/08 12:16:07 PM 10 WWD, THURSDAY, OCTOBER 9, 2008 WWD.COM • Looking to make the most of property available in these tough times,

FROM ER Vancouver-based Aritzia, which caters to affl uent 15- to 35-year-old women seek- T T E L ing designer labels, opened its largest U.S. location at 4,300 square feet in the

8 0 20 city’s Water Tower Place this summer, followed by a second, smaller location in Oct. 9, CHICAGO Northbrook Court this fall. • DNA 2050, a multibrand denim-based concept for women and men, also launched a Windy City location on Lincoln Park’s Halsted Street this summer while continuing to scout a second downtown site. • Club Monaco, meanwhile, renovated its Michigan Avenue store, added a Damen Avenue address to its three Chicagoland stores this summer and spied space along State Street for a possible fi fth store. • Fast-fashion retailer Zara came to the area with its fi rst store at the Old Orchard shopping center in suburban Skokie, and with the Spanish company looking to ven- ture within city limits with potential sites on Michigan Avenue and at State and Randolph Streets as part of the Block 37 project. • Los Angeles-based premium denim brand Joe’s Jeans chose Damen Avenue to launch its fi rst retail concept, unveiling its modern, nearly 2,000-square- foot shop last week. For more, For Iraklis Karabassis, whose company IK Retail Group owns DNA 2050, skimping in Chicago, troubled see WWD.com. economy or not, is short-sighted. Millennium Park, home to Karabassis said his aim was to look for two store locations in each of his target cit- Chicago Fashion Week. ies — Chicago, New York, Boston and Washington. “The economy is stressful all over the U.S. at the moment, but time will tell that we have made the correct decisions. We plan to stick to our expansion plan.” Melissa Gamble, the city’s director of fashion arts and events, said Chicago re- mains one of the most valuable retail marketplaces. “It’s a matter of retailers surviv- ing through a tough economy,” she said. “There’s just no way around it — it’s rough Land of Opportunity out there.” And while the mad rush to grab retail space along trendy Damen Avenue may be By Beth Wilson slowing, State Street is enjoying a resurgence of activity. Rents are up and vacancies are down along the historic thoroughfare that once emptied when the estimated daily JASON GALLEN, VICE PRESIDENT OF RETAIL FOR ORIGINAL PENGUIN, IS ONE 650,000 workers in Chicago’s Loop returned home each night. of the lucky ones. Now, nightlife thrives with a number of theaters housing such productions as His 2,300-square-foot store at the corner of Delaware and Rush streets in Chicago’s “Wicked” and “Jersey Boys,” and many of the once-vacant offi ce buildings were replaced Gold Coast neighborhood has been seemingly exempt from any retail letdown during with residential developments or are being utilized by colleges offering classes in the this economic crisis. area, said Ty Tabing, executive director of the Chicago Loop Alliance. Construction of In fact, his Chicago store, which opened this summer, has become the sportswear nearby Millennium Park and progress on the much-maligned Block 37 project, one of company’s best-performing location, exceeding sales expectations by 25 percent the most prominent vacant lots in the country, has further boosted interest in the area, each month. which is home to Nordstrom Rack, Loehmann’s, Macy’s and H&M, he noted. “It’s our number-one store, out of the six stores we have open,” said Gallen. The In the meantime, Ulta is slated to open its largest — and its fi rst urban — location company also operates locations in New York, Miami and Dallas. in a three-level, 18,000-square-foot space along State Street this month while Crocs And while Gallen’s story may be rare because the local retail climate is undeniably and Aerosoles recently unveiled stores nearby, Tabing said. diffi cult, more retailers are eyeing Chicago as an untapped market, entering the city Tabing predicts about 20 new retailers will bow along State Street or in the East with gusto and at times scouting and opening more than one location. For example: Loop neighborhood by summer of 2009.

A dress by Jeanne Lanvin from 1927 SCENE at the Chicago History Museum. VITAL STATS BOWLED OVER: Windy City foodies are all abuzz the Fashion Institute of Technology in New York about the latest venture by Graham Elliot Bowles, last fall, “Chic Chicago: Couture Treasures from Population: 2.9 million (2007) a James Beard Foundation award nominee and the Chicago History Museum,” including one of Local unemployment rate: 7.1 percent (2008) former chef at Avenues in the Peninsula Hotel. the most notable dresses in fashion, has come National unemployment rate: 6.1 percent Bowles’ indie vibe is found throughout his solo home. Running through July 26 at the Chicago (2008) effort called Graham Elliot, from the denim and History Museum, the exhibition features a Paul Median home sales price: $257,600 (May Chuck Taylor sneaker-clad waitstaff to the River Poiret 1913 Sorbet gown, the fi rst dress created 2008, second quarter) North restaurant’s music with Bowles’ iPod playlist for an uncorseted fi gure once worn by Windy Foreclosure rate in Chicago: 35th highest in for the day, including tracks by American Football, City socialite Anita Carolyn Blair. country, with 21,488 in the second quarter. an alt-rock band from Urbana, Ill., to Cake and the “That gave way to modern fashion,” said Median household income: $43,223 (2006) Cure as well as Bowles himself on acoustic guitar. curator Timothy Long. Percent of residents living below poverty level: The food is equally delightful, including a foie It’s one of more than 50 pieces worn by 21.2 percent (2006) gras parfait with Rice Krispies, cranberry compote, Chicago women, from Gilded Age gowns by Average price of four-star hotel in Chicago: $202 herbs and yogurt sorbet. Worth and Pingat to modern looks from Chanel per night (2006) and Versace, including a Chanel dress worn by Most expensive hotel room in Chicago: $6,500, QUICK FIX: Frenzied frugal fashion queens have Chicago’s own Oprah Winfrey. the Peninsula Suite at The Peninsula Chicago a new trick to tame their tresses. Blo.dri, a new Sparking most interest is a black-and-white (2006) hair fi nishing salon on North Clark Street that wool and cotton convertible dress from Comme World Series Wins: The Chicago Cubs won in opened last month, specializes in blowouts, des Garçons. 1907 and 1908. The Chicago White Sox won updos and other styles done in 30 minutes or “Many woman are disturbed by the dress,” in 1906 (defeating cross-town rival the Cubs), less. Better still are the prices: Blowouts are just Long said. “It’s loose in shape and crude in 1917 and 2005. $25 to $35. fabric. Even the staff was asking why do we SOURCES: U.S. CENSUS BUREAU, BUREAU OF LABOR STATISTICS, have that piece. People are saying it’s ugly; NATIONAL ASSOCIATION OF REALTORS, REALTYTRAC, FORBES.COM, HOMECOMING: After its debut at The Museum at it’s weird.” PRICELINE.COM, CITY-DATA.COM, BASEBALL_ALMANAC.COM

Since then, Fashion Focus slowly has grown Here in scope and sophistication, with organizers and left: recently becoming more adept at ways of gen- Chicago’s Fashion at the Park erating more buzz. Dress THE TANKING STOCK MAR- ers and serving as the week’s fashion fi nale They rolled out the red carpet for Fall Out Code ket and vice presidential de- Monday and Tuesday were expected to draw Boy bassist and designer Pete Wentz, who grew fashion bates did little to deter local even larger crowds, with 2,000 people regis- up in suburban Wilmette. He helped launch the show fashion lovers from flocking to tered to attend, said Melissa Gamble, the city’s festivities Oct. 1, introducing the week’s inaugu- featured Chicago’s fourth annual fashion director of fashion arts and events. ral show, Gen Art’s Fresh Faces, which highlight- styles by week, Fashion Focus Chicago, Gamble attributes the jump to several fac- ed six of the city’s emerging apparel designers. student which kicked off last week to tors, namely an increased awareness sur- Decked out in a black Dior tuxedo, white designers. its largest crowds ever. rounding Fashion Focus, which ran Oct. 1 to Dolce & Gabbana shirt and his wife Ashlee The week’s fi rst all-stu- 8, and a general rise in respect for Chicago’s Simpson-Wentz’s black, white and red scarf dent show featuring styles place in the fashion community. artfully tucked in his jacket pocket, Wentz from students attending the When Fashion Focus began four years ago, quipped, “I have to thank Gen Art. A guy who’s city’s four design schools at- the city’s fashion week was received with a 5-foot-6 couldn’t get on a runway otherwise.” tracted 1,500 people Friday, with dose of cynicism, Gamble admitted. Fresh Faces, meanwhile, was followed by showgoers fi lling all 850 seats in “It was more of a surprise,” she said, as in, Thursday’s World Fashion Chicago runway show, a the white tent at Millennium Park ‘Oh, there’s fashion there?’ collection of looks representing Chicago’s 27 sister and standing two-people thick “Now in our fourth fall, people are starting cities, that drew designers from Paris and Mexico around the perimeter. The spillover to look for it and look to us for what’s going on City. Friday’s Dress Code fashion show present- crowd of more than 400 watched the in fashion in Chicago,” noted Gamble, a former ed work from 20 top student designers from the show via a live-feed large-screen TV attorney appointed to her post in 2006, when School of the Art Institute, Columbia College, in the tent’s reception area. Mayor Richard Daley created a Mayor’s Fashion Illinois Institute of Art and the International Two runway shows spotlighting Council and introduced a series of initiatives de- Academy of Design and Technology.

some of the city’s veteran design- signed to promote Chicago’s fashion industry. — B.W. PETER SCHLZ/CITY OF CHICAGO PHOTOS BY THE PARK AT FASHION WWD, THURSDAY, OCTOBER 9, 2008 11 WWD.COM IN BRIEF • ARMANI CASA EXPANDS: Giorgio Armani said Fisher Reveals Her ‘Feminine Approach’ Wednesday he plans to open three Casa stores in Dubai, Jakarta and Bahrain by the By Beth Wilson The Irvington, N.Y.-based company also end of 2008. In the fi rst nine months of the operates without a traditional structure. year, the designer has opened seven stores CHICAGO — For some, it could have been “It’s nonhierarchal,” Fisher said, com- dedicated to his home division in Kuwait an awkward moment, but not for Eileen paring the company structure to a solar sys- City, Beijing, Tel Aviv, Istanbul and Kuala Fisher. tem or constellation of stars in which a boss Lumpur, while in Shanghai and Moscow, When Fisher, the keynote speaker at acts more as a facilitator or guide. “It could Armani/Casa has added a new store to its ex- the Entrepreneurial Woman’s Conference look chaotic, but it’s not a rigid box. I think isting retail presence in each city. The com- at Chicago’s Navy Pier, called for a minute of my company like a big school where we pany currently has 80 Casa stores in 45 coun- of silence to replicate the manner in which can be ourselves and be authentic.” tries. Strategic areas for the development of she begins some company meetings, the With that in mind, it’s not uncommon for Armani/Casa are China, Japan, Southeast capacity crowd of mostly women entrepre- some employees to shuttle from department Asia, the Middle East and Eastern Europe. neurs looked around at each other and com- to department based on changing interests plied, though clearly relieved at its end. or passions. Fisher, who likens her compa- • CYGNE CHAIRMAN RESIGNS: Cygne Designs Inc. “Isn’t it amazing how long a minute ny to a family and at one point conducted chairman Bernard Manuel has resigned. The is?” Fisher posed. “It’s wonderful, though. meetings in her home, fi nds she focuses on fi rm said the resignation “was not the result It gives you a little space.” employee dynamics, as well as fashion. of any disagreement with the company or its Though seemingly simple, the tech- “Work is about the product, but it’s also management.” Cygne Designs is a wholesaler nique illustrates Fisher’s unconvention- about relationships,” said Fisher, who of branded and private label women’s denim al approach to the workplace and likely noted the company has conducted work- and sportswear that has discontinued devel- represents a key to her growing $254 mil- shops about listening skills and stress oping new lines and is focusing on selling ex- lion business. Eileen Fisher speaking in Chicago. management. “It’s about the people and isting inventory. In the second quarter ended “I stumbled on a new approach to busi- the way we work together. To focus on those July 31, Cygne incurred a net loss of $16.6 ness,” she told the estimated crowd of 2,300 people. “It’s a more relationships has been really meaningful for us.” million and its sales fell 62.1 percent to $12.6 feminine approach.” Eileen Fisher also shares profi ts with its employees, gives million after it lost two major customers. The soft-spoken Fisher, who admitted public speaking doesn’t them $1,000 apiece for education and offers another $1,000 a come naturally to her, said she shrugged off her own discomfort year to spend on wellness, be it for yoga classes, massages, belly • ONLINE RULES: The European Commission to tell women to “learn to be confi dent in their own natural way dancing or refl exology. on Wednesday proposed legislation that and to trust that they don’t have to do it the man’s way.” Fisher, however, is careful about who she brings into the would protect consumers during online The formula has worked for Fisher, whose bridge brand has ‘family.’ She expects egos to be left at the door and kind- transactions, from requiring goods to be de- enjoyed 15 to 20 percent annual growth over the last fi ve years ness to prevail. livered within 30 days to facilitating returns. while competitors such as Sigrid Olsen have shut down and “We don’t hire someone if they’re not kind,” she said. “We need an EU-wide safety net of rights so Dana Buchman has gone down-market to Kohl’s. Fisher’s re- And that soft touch, no doubt, infl uences her clothing, consumers have the security they need to tail reach also continues to expand, with the company opening which Fisher says she likes to keep simple and comfortable. shop around with peace of mind,” said con- its 43rd store in suburban Highland Park, Ill., in November. While Fisher, who is considering writing a book about the sumer commissioner Meglena Kuneva. The Amid all that activity, Fisher likes to relay that vibe within way she does business, says the company is looking to ex- law is designed to favor shopping around in her own company. Having grown up in suburban Des Plaines, pand globally and increase its Internet presence, she feels different EU countries, where prices can Ill., where she once worked at the local Burger King, she said grateful and wants to give back. differ greatly on products from fragrances she initiated a few minutes of silence to temper a stressful work- “I love the way it feels to be in my company,” Fisher said. to clothes. About 150 million Europeans place. “People do too much work,” she said, and once the com- “It’s joyous. I don’t know another company that operates like shop on the Internet. The rules have to be pany began starting meetings with minutes of silence, “everyone that. We have a certain abundance. Our cup is spilling over approved by the 27 EU countries and the calmed down. You could feel the collective energy and relax.” and it just feels right to do this. We want to support women.” European parliament.

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ROCK THE BOAT: After Venetian and Arabian outings, Marc Jacobs and Robert Duffy seem to be in a rock ’n’ roll state of mind. The duo picked the theme “Rock and Roll Circus” for their annual holiday bash on Dec. 10 at the Rainbow Room. Referencing “The Rolling Stones Rock and Roll Circus,” the iconic documentary about the 1968 concerts organized by the Stones, the invite cites inspirations such as Yoko Ono, Marianne Faithfull, Jethro Tull, The Dirty Mac Clowns and Lovely Luna & The Fire Michelle Obama, Eater — which should give the party’s typically creative crowd plenty of from left: at the fodder for their costume concepts. presidential debate in Nashville, Oct. 7; BICEPS MEET BARNEYS: Several of UFC’s in Kansas City, Mo., ultimate fi ghters were out of their element Oct. 1; in Saginaw at a fete for Coach president and executive Township, Mich., creative director Reed Krakoff’s new photo Oct. 2. book, “Fighter,” at Barneys New York’s Madison Avenue fl agship on Tuesday night. Fighters such as Keith Jardine, Ken Florian, Dan Henderson and Jon Fitch mingled with the fashion crowd and autographed their portraits in the book. Fitch, for one, was shocked at the fanfare. “I thought they’d just roll us in off a bus, and that we would PHOTO BY DONALD BOWERS/GETTY IMAGES PHOTO BY Mandy Moore with have dinner with a bunch of suits,” he said. ultimate fi ghters “I didn’t expect all this.” Rashad Evans and Dan But ultimate fi ghting has some unexpected Henderson at Barneys fans, besides Krakoff. Alexis Bledel and Mandy New York. Moore were there to support the athletes. “I feel like I’m at groupie status now,” mused Moore, whose interest in the sport was piqued two years ago. “Once I saw a match in real life, I was sold in a heartbeat.” She conceded, however, that when it gets a little too gory, she averts her eyes. Later that evening, Krakoff made an appearance with his wife, Delphine, at a dinner for Hong Kong-based accessories designer Fiona JEFF SCHRIER/AP PHOTO; CHARLIE RIEDEL/AP PHOTO; OBAMA IN GREEN BY BY IN RED SWEATER GERALD HERBERT/AP PHOTO; PALIN IN GREEN BY JEWEL SAMAD/AFP/GETTY IMAGES IN GREEN BY PHOTO; PALIN HERBERT/AP GERALD Kotur at Waverly Inn, which also drew the likes of Tory Burch, Aerin Lauder Zinterhofer, Stefanie Greenfi eld and James de Givenchy. “I can’t believe that I was in Hong Kong 24 hours ago,” said Kotur, who has been busy showing her collection in Europe and elsewhere.

CURTAIN CALL: No rest yet for Alber Elbaz. A mere three days after Cindy McCain, from presenting his spring collection for Lanvin at the end of Paris Fashion left: at the presidential Week, the designer was in Monte Carlo, Monaco, to stage yet another debate in Nashville, fashion show Wednesday night. Hosted by Princess Caroline of Monaco Oct. 7; in Columbus, and in aid of the charity for the elderly l’Oeuvre de Soeur Marie, the Ohio, Sept. 29; in charity event put the spotlight on Lanvin’s fall collection at a gala dinner Albuquerque, N.M., at the Hotel Hermitage. Asked what it was like to move backward in Oct. 6. fashion time to an earlier season, Elbaz said: “It’s like if you are married for a second time and you come back with your fi rst wife!” Sarah Palin, from left: PAINTED LOVE: After ogling countless at the vice masterpieces by Renoir, Manet, Ingres, Goya presidential and Titian at the opening of the “Picasso and debate in St. the Masters” exhibition at the Grand Palais Louis, Oct. Monday night, actress Eva Green was asked 2; in Carson, for her impressions. “Oh, it was all right,” she Calif., Oct. 4; shrugged, with arch irony. in Allentown, The staggering works fi red up the fatigued Pa., Oct. 8. fashion fl ock, including the likes of Karl Lagerfeld, Marc Jacobs (in Bottega Veneta), Empress Farah Pahlavi, Jacqueline de Ribes, Bernadette Chirac and Dennis Hopper, who later Jacqueline supped with exhibit sponsor Bernard Arnault de Ribes and of LVMH in the shadow of his treasured Peter Marino Richard Serra. During a brief predinner speech, Arnault remarked on how odd it felt Eva viewing such artistic riches on a disastrous Green day for global markets. His takeaway? “I guess Picasso is a good investment,” he said, to much laughter. Actress Mylène Jampanoï said she soon

would be in a fi lm about Serge Gainsbourg, IMAGES; OBAMA CHARLES DHARAPAK-POOL/GETTY BY BLUE MANDEL NGAN/AFP/GETTY IMAGES; MCCAIN IN ROYAL BY MCCAIN IN BEIGE AND NAVY WITH MOOSE BAG BY J. RICHARDS/AFP/GETTY IMAGES; PALIN PAUL IN BLACK BY JIM BOURG-POOL/GETTYOBAMA IN RED DRESS IMAGES; PALIN BY which had her relishing the androgynous costume possibilities. “Gainsbourg invented thus opportunities to entice the fashion press) as PHOTOS BY DOMINIQUE MAITRE PHOTOS BY fashion,” she enthused. she juggles campaign duties with parenting two school-age girls. Gov. Sarah Palin, meanwhile, EARNING THEIR STRIPES: Sir Paul Smith isn’t traded in her skirt-and-blazer combo for jeans content with building his own brand — he’s Fashion Trail and a Nike track jacket for debate-watching supporting a new generation of designers, too. AS THEIR HUSBANDS PACED THE STAGE at a Greenville, N.C., pizza parlor (this may be Smith has funded a new scholarship exchange at Nashville’s Belmont University Tuesday Palin’s TV-watching outfit — she wore an orange program, which will offer four students at the evening, Cindy McCain and Michelle Obama track jacket while watching the last one). For U.K.’s Nottingham Trent University — located took the opportunity to show their true — or her own prime-time appearance against Sen. in Smith’s hometown — the opportunity to rather, patriotic — colors. McCain wore a royal Joe Biden, however, Palin went with listen-don’t- spend 10 weeks studying design at the Bunka blue suit, and Obama, a paneled cranberry red look, no-frills black, though her shiny patent red Women’s University in Tokyo. In turn, Smith Narciso Rodriguez dress (curiously, the sparkly pumps lent a certain Dorothy-in-Oz quality to the will provide funding for two Japanese students to study for a yearlong green ribbon pins at the neck said “Christmas” ensemble. In fact, Palin appears to be using her master’s degree in fashion futures at Nottingham Trent University. The more than “campaign countdown”). Both women accessories to stay on message: On Wednesday program will run for an initial fi ve-year period, and the fi rst group of also stuck close to their established looks — see she crossed the tarmac in Allentown, Pa., to meet students began the exchange program in September. “I am very pleased to McCain’s sleek navy pantsuit in Ohio, Obama’s Sen. John McCain, carrying a canvas tote with a be in a position where I can give what is hopefully an exciting opportunity snappy striped T-shirt layered under a short- certain animal’s head printed on the side. The to students,” said Smith. “I think one of the most important experiences sleeved turquoise jacket in Michigan — while words above the antlers? “Real Women Hunt in life is travel and the way it can open your eyes to the world.” Obama continues to limit her appearances (and Moose.” — Sarah Haight WWD, THURSDAY, OCTOBER 9, 2008 13 WWD.COM Film Fatales “AREN’T WE GLAD THAT WE AREN’T BANKERS right now?” Jane Fonda asked the power crowd assembled in the ballroom of the Four Seasons Beverly Hills for Elle Magazine’s 15th annual Women in Hollywood dinner Monday night. Indeed, the annual confab of elite actresses and directors — this year’s honorees included Fonda, Halle Berry, Nicole Kidman, Sigourney Weaver, Catherine Hardwicke, Anne Hathaway and Isla Fisher — is always a celebration of the good life in La-La Land. Francisco Costa, who made his fi rst appearance at the event (Calvin Klein was the presenting sponsor), was in an appropriate state of awe, seated between Amber Valletta and Eva Mendes. “This is an amazing night, all these women…,” he sighed. “It’s an intimidating room,” offered Hathaway, whose tablemates erupted into fi ts of nervous laughter after Fonda came by to say hello. Fisher also basked in the shared glory, while fi ancé Sacha Baron Cohen recorded her speech on his digital camera and Courteney Cox David Arquette Jane Fonda with Kat Dennings snapped pics of tablemates and . To Halle Berry in Diane Keaton in Dolce & Gabbana. keep her cool in the room full of legends such as Roberto Cavalli. and Shirley MacLaine, Fisher came armed with a plan. “That’s what Champagne’s for,” she said. The following night in New York, Aerin Lauder Zinterhofer, Rose Byrne and Gigi Mortimer helped Vogue and Lacoste launch the Lacoste Pink collection, which benefi ts the Breast Cancer Research Foundation.

▲ Kate Beckinsale in Derek Lam at A separate contingent of the the Four Seasons fashion fl ock was downtown at the Beverly Hills. Banana Republic-sponsored opening of “Live Forever: Elizabeth Peyton,” at the New Museum. Stephanie Seymour, Debbie Harry and Rachel Feinstein milled around the two-fl oor exhibit, which included oil-paint portraits of Jackie Onassis and John F. Kennedy Jr., Kurt Cobain, ▲ Anne Hathaway in Eminem and Marc Jacobs (who arrived Marc Jacobs. Shirley at the museum with boyfriend Lorenzo MacLaine Rachel Feinstein Marc Jacobs with Martone). “He’s the best sitter,” said Elizabeth Peyton of the Elizabeth Peyton in designer, who had dressed her for the occasion in a spring Nicole Kidman his design. look from his New York runway. “He always falls asleep.” in Prada. Francisco Costa with Amber Valletta Jenny McCarthy, Leah Remini and in Calvin Klein. Jennifer Lopez in Dolce & Gabbana at the Four Seasons Beverly Hills. ELLE PARTY PHOTOS BY TYLER BOYE; MACKLOWE BY JOE KOHEN/WIREIMAGE; ALL OTHERS BY STEVE EICHNER ALL OTHERS BY JOE KOHEN/WIREIMAGE; BY MACKLOWE TYLER BOYE; PHOTOS BY ELLE PARTY EYE SCOOP RAN As I return to New York after a girls’ , F C THERE ARE UNDOUBTEDLY S E weekend in Paris with my friends, I I many sacrifi ces people will reminisce about our fi rst day there: Chanel, R have to make in the coming

A Hermès and Valentino shows, followed by an P fi scally challenged months. amazing dinner at Chez George. The evening ended Bergdorf Goodman is hoping 8 with drinks at the Ritz Bar with Lauren Santo Domingo, 200 gourmet goodies isn’t one of Olivia Chantecaille, the stylist Cristina Ehrlich and Robert them. So it was appropriate, Burke. But of course we had to make ended at the then, that Monday evening Hemingway Bar, a place for refl ection — what a city! men — with a lot of tattoos and, of course, a pair of the retailer and Bob Colacello Princess On Saturday, we had lunch at L’Avenue, where, upon topless women in matching blonde bobs and red lipstick feted a “premier epicurean Gloria von leaving, we crossed paths with Patrick Demarchelier. Thank who were performing a dance involving bottles of Chanel collection,” created by Thurn und god for one of my girlfriends — one of his fortunate subjects perfume. Très bizarre! I can only imagine it was what Princess Gloria von Thurn Taxis and Lee — who not only fl ew us over, but recognized him on the Studio 54 in its heyday must have resembled. Needless und Taxis. Granted, gourmet Radziwill street. Patrick, of course, then escorted us to his own exhibit to say, when in Rome, do as the Romans do, so we chocolates and buttery at the Petit Palais, highlighting 400 of his most famous danced till we could dance no more. cookies emblazoned with Gs portraits. The best part? We got to skip the long line. These are tough times, but as we drove back to our may not be the staff of life, but that certainly didn’t stop the After an amazing dinner at Hotel Costes (next to hotel watching the lights sparkle on the Eiffel Tower, likes of Lee Radziwill, Beth Rudin DeWoody, Agnes Gund and Ashley Olsen’s table — it was quite the scene), the feelings of hope and inspiration arrived. Bonsoir Paris, à la Bettina Zilkha from sampling piles of scones and miniature, girls’ long weekend ended with a boys’ night out at the prochaine, au revoir! crustless sandwiches. “It was all about the idea of castle tea, famous Maxim’s. and what do you eat at tea? You have scones and chocolates We went there at the urging of Valentino’s Garine and tea,” explained von Thurn und Taxis of the concept Zerounian and the stylist Tanya Gill, for what was behind her line — one she fully embraces as she never skips supposed to be a chic Parisian lounge setting. Clearly, a tea-time meal (perhaps because her family has a palace, St. we had no idea what we were getting into, as we entered Emmeram). “Sometimes it’s just a quick biscuit. I only have a club fi lled with many very tall “ladies” — aka topless a platter when I have servants,” she continued. Clearly she has no qualms about assuming the latter duties herself: The gracious hostess spent the entire party hustling tray upon tray Editor’s Note: Julie Macklowe just returned from viewing the Paris collections. of her goods on empty-handed guests. 14 WWD, THURSDAY, OCTOBER 9, 2008 PRIME COMMERCIAL SPACES POSITION YOUR COMPANY AS A LEADER IN THE COMMERCIAL REAL ESTATE INDUSTRY To place an ad in Prime Commercial Spaces, call Theresa Mazza at 212.630.4921

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"Your Flagship Agency for Project Solvers Luxury Jobs" www.projectsolvers.com www.ESPSTAFFINGNY.com [email protected] 212.729.7700 212.226.2432 [email protected] WWD, THURSDAY, OCTOBER 9, 2008 15 WWD.COM MEMO PAD IMG, Smashbox TARGET EMPHATIC VALUE: Target’s advertising LAUNCHES ARE HAPPENING: Magazine advertising difference in the markets we operate in,” said recently has been as stylish as its guest designer is hard to come by these days, but this month Paul Keenan, chief executive offi cer of Bauer products — often more so. The economy, alone, Hearst Magazines is launching two titles: Media. “As a pure retail site, Cocosa is a new Dissolve L.A. however, is forcing the discounter to focus more the premier issue of Food Network magazine and direction for Bauer Media, but in common with on value than style, even diminishing the size Mis Quince, a magazine aimed at girls who are the rest of our portfolio, is yet another example on-screen of its famed tag line, “Expect More. planning their quinceañeras. The title will be sent of us using our powerful brands and audience Partnership Pay Less,” and inserting a new, more explicit out with select November issues of Seventeen, insight to innovate ahead of the competition.” catch phrase, “Get More for Less.” For example, Cosmogirl and the winter issue of Teen, with Bauer said the Web site also would LOS ANGELES — IMG and a new Target spot, set to a Dolly Parton song, a total distribution of 1.4 million. It also will include an editorial element, with advice Smashbox Studios have mutu- shows a woman with her dog and Beneful dog be sold in all Wal-Mart newsstand copies of from fashion journalists posted alongside the ally decided to dissolve their food, accompanied by the words, “More Dinner. Seventeen and Cosmogirl. Seventeen publisher pieces on sale. — Nina Jones five-year Los Angeles Fashion Less Dollar.” Target’s advertising budget last Jayne Jamison said the Hispanic market is growing, Week partnership, making next year was $1.19 billion, according to Advertising and 50 percent of girls who responded to RECYCLING IS CHIC: What’s the best way for week’s Spring ’09 Mercedes- Age. Another spot begins with the image of the Seventeen’s survey now spend between $2,000 fashionistas to cut back in a dismal economy? Benz Fashion Week at Smashbox meter on a gas pump running past $75 and to $10,000 on their big days. She added that Repurpose their closets to form looks from Studios the final one. promises “A New Day. New Ways to Save,” Mis Quince’s circulation is larger than any other pieces they already own. That’s how Lucky “IMG basically said they want- followed by suggestions and actual product magazine aimed at Hispanic women. editor in chief Kim France described “The Lucky ed to concentrate on other markets prices. “The new movie night” shows a couple Procter & Gamble has signed on as exclusive Guide to Mastering Any Style,” the title’s and we’re interested in continuing eating popcorn in a darkened living room with beauty sponsor, with ads for Cover Girl, Always, second book, which went on sale Tuesday. to put on shows here,” said Dean a $13 DVD on the table, while “the new family Herbal Essence and Secret. “We want to reach The book concentrates on achieving personal Factor, who co-owns Smashbox room” features a backyard tent for $70.49. “It’s out more to the Hispanic consumer,” said Francine style — such as arty slick, American classic, with his brother, Davis Factor. still fun, hip and fresh, but we’re being more Gingras, P&G’s external relations beauty director. Euro classic and California casual — without An IMG spokesman had no bold and direct with the value messaging, for “These are the brands that are important to replacing an entire wardrobe. France and co- comment at press time except example, calling out the prices of merchandise young women and it’s the age when they look author Andrea Linett heed their own advice, “that we are 100 percent focused in the actual ad,” a Target spokesman said. to magazines for advice.” All ads will appear in admitting to several items they’ve owned for on the current season’s event.” Wal-Mart, long the low-price leader, has English or Spanish in the magazines. — Amy Wicks more than a decade. For France, “a denim Dean Factor confirmed he been outpacing its rival Target in recent months Levi’s jacket that my brother’s friend left at is in talks with various city of- in terms of sales growth and has used the BAUER SETS UP SHOP: Bauer Media in the U.K. our house in 1979” has remained a wardrobe fi cials, potential sponsors and economic downturn as an opportunity to take — which last year acquired Emap’s former staple, though it’s more a showpiece than local fashion organizations to its advertising to a more sophisticated level and consumer media division — is making the anything. The item lives “in a storage box “fi gure it all out,” but that it was court consumers with comfortable lifestyles jump from publisher to retailer. The company, under the bed in my guest bedroom,” she said. not likely Smashbox would be who are now looking to trade down. Rather than which publishes titles including U.K. Grazia, As for Linett, she holds dear a Harley- able present the new fashion simply communicate price rollbacks as in the Arena and Pop, has launched Cocosa, an Davidson tank top that was in YM Magazine, week for fall 2009. past, Wal-Mart depicts lifestyles and events to e-commerce site that will sell designer brands modeled by Milla Jovovich in the early “We are considering moving which these shoppers can relate in spots with at discounted prices through private online Nineties. “I bought the shirt new and wore the event to other parts of the city, high production values. The tag line, “Always sales. Customers will gain access to the it so much it’s the only ‘vintage’ shirt I have but it could also continue at our Low Prices. Always,” has been replaced by “Save 48-hour sales — the fi rst of which will take that was genuinely worn in by me.” Does Culver City studios,” he said. “We money. Live better.” The question now is what place later this month — by registering to be Linett have the bike to go with the tank top? thought it was a very good event, happens to the two mass retailers when the a member of the Web site. “We are always “My husband has a bike, but I’m scared to and the split was amicable.” economic pressure subsides. — Sharon Edelson seeking out further opportunities to create a get on it. — Stephanie D. Smith — Marcy Medina

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For more career opportunities log on to fashioncareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. COMMERCIAL REAL ESTATE

Marketing/Sales Manager PATTERNMAKER High-end ladies RTW & Couture Fashion High end women’s fashion house seeks House is seeking a Marketing/Sales Mgr skilled patternmaker with strong tailoring w/ 5+ yrs exp with retail & store buyers. Showrooms & Lofts skills and knowledge of garment Pls call: 212-967-5044 or e-mail resume BWAY 7TH AVE SIDE STREETS construction. First sample through to: [email protected] Great ’New’ Office Space Avail production. Salary based on experience. ADAMS & CO. 212-679-5500 Designer/Product Mgr Please fax or email resumes to: 212.221.1936 or [email protected] SALES ...... $75K-120K+ COM Leading eyewear company seeks Girls sportswear Mass to Mid Tier Stores Designer/ Product Manager for Jennifer Glenn SRI Search 212-465-8300 [email protected] high profile brand. Responsibilities www.srisearch.com PUBLIC RELATIONS include development of product from CAD design through sample PROD’N ASSISTS & COORDS COORDINATOR * Prod’n Assist-Sweaters/Knits $40-45K Showroom /Office for Rent launch including color & trend * Prod’n Assist/Spec Tech $40K SALES EXECUTIVE 389 Fifth Ave – 500 sf. / $1500 mon H&M seeks Public Relations analysis and communication with Runway Designer Established Junior Novelty Slat walled w/shelves & desks coordinator to oversee New York factories. Individual must have at [email protected] or 212-947-3400 Sweater/Knit Company seeks Call Peter: 212-683-1900 SALES ACCOUNT a Sales Executive with strong Dept/ showroom. We are looking for a least 3 yrs experience, preferably in Specialty Store contacts to cultivate eyewear, and should be motivated Production Coordinator EXECUTIVE new & maintain existing accounts. highly motivated brand ambas- Sweater & knit mfr seeks an organized and skilled to handle multiple Luxury designer jewelry company Must have at least 5 years exp. Positive sador to handle product place- tasks, work under pressure and individual with strong follow-up skills. energy & strong follow-up a must. ment in long lead media. Min Must speak Korean & English. E-mail seeks experienced wholesale Call or fax resume to: Lisa meet deadlines. Pls e-mail resume resume to: [email protected] salesperson for maintaining and Tel: 212-302-3744/ Fax: 212-302-5184 2-4 years experience in fashion to: [email protected] building specialty store accounts. Email: [email protected] PR. Please fax or email resume SENIOR DESIGNER Candidate will have good organi- and salary requirements to: Collaborate w/Creative Director of high zational skills and ability to multi SALES REP NEEDED [email protected] -end RTW women’s designer brand in task. Knowledge of computer NY based Contemporary collection is developing seasonal RTW & accessory seeking a full time energetic and en- or 201-246-4740 collections. Qualifications: 5-10 yrs de- and QB program. thusiastic sales representative. Five DESIGNER sign exp w/global, high-end RTW wom- Fax or email resume to: years experience in contemporary CAD-GRAPHICS-FABRIC PRINTING JJ Basics is looking for a Jr. sweater en’s brand, BA in Fashion Design market a must. Must be willing to U4ia-Photoshp-Illustr: 212 679 6400 designer to join our team. Must be mo- (Masters pref’d), extensive knowledge (212) 941-0336 travel and must have established bou- www.sanodesignservices.com tivated, creative, trend right w/ atten- of design techniques incl. fabrication, tique relationships. Please put salary tion to detail & color which is essential silhouettes, color ways, construction, fin- [email protected] requirements on resume. Fax resumes ASSISTANT DESIGNER for this fast paced position. Illustrator ishing. Resume [email protected] 212-202-3570 or [email protected] PATTERNS, SAMPLES, Leading Sweater Co seeks well organ- & Photoshop with exp. in the Jr. swtr PRODUCTIONS ized creative asst designer to join our mkt a must. Please e-mail resume in- missy team. Must be proficient in color cluding salary req: [email protected] All lines, Any styles. Fine Fast Service. matters PhotoShop/Illustrator computer Call Sherry 212-719-0622. software creating tech detail packages. Strong sketching, specing & layout PATTERNS, SAMPLES, skills a must. Minimum 1-2 years fash- ion industry experience. Send Exp’d RTW Designer PRODUCTIONS resume to: [email protected] High-end daywear/eveningwear house Full service shop to the trade. seeks a senior designer with 10+ years Fine fast work. 212-869-2699. RTW experience in A-Z development of the collection and all related Design Dep’t activities. Must be able to lend Customer Service Rep significant creative & technical influence We are seeking dynamic Customer and lead the design team in sourcing, PHI Boutique Soho Service oriented individuals with great trend analysis, costing, supervision of Seeks F/T sales associate. Self starter communication and typing skills needed pattern/sample hands, and producing a must have 3+ years previous designer to work on behalf of our company this comprehensive day /evening collection retail experience. Must have working Complete Line from Concept to Sample Service Representative will earn up to plan. Major design house exper. is a client book. Full benefits package Contemporary | Designer | Couture $3000 monthly any job experience plus. Qualified individuals may respond available. Fax/email resume attn: By Experienced Designer | Merchandiser needed. E-mail if interested at: with resume and min. salary req. in F. Greene: 212-966-7506 or T 212.252.9370 | E [email protected] [email protected] confidence to: [email protected] [email protected] 21333JC_WWD.indd 1 103 FIFTHAVENUE 860 MADISONAVENUE 368 BLEECKERSTREET 650 FIFTHAVENUE -NOWOPEN 10/2/08 1:01:43PM

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