Sourcing HONORING CHRISTIAN /3 GUCCI’S LEATHER LINE/9 Inside: Section II WWDWomen’s Wear Daily • The Retailers’TUESDAY Daily Newspaper • May 17, 2005• $2.00 Horizons Ready-to-Wear/Textiles That’s Frilling NEW YORK — “East meets West meets Park Avenue.” That’s how Dennis Basso described the fabulous collection he showed on Monday afternoon. In it, he ditched all traces of camp in favor of a highly polished presentation in which he delivered an earthy boho attitude with ultrarefined execution. Here, Basso’s ruffled beauty in sueded mink and Russian sable. For more fur news, see pages 6 and 7.

Limited’s Tough 1st Qtr.: Earnings Fall 76 Percent As Express Unit Falters By David Moin and Meredith Derby NEW YORK — First-quarter earnings at Limited Brands Inc. dropped 76 percent and missed analysts’ expectations as merchandise shortcomings at Express dragged down results. The specialty retailer on Monday also forecast second-quarter and full-year earnings below analysts’ projections. “There’s no silver bullet” for Express, Limited chairman and chief executive Leslie H. Wexner said during the annual shareholders’ meeting at corporate headquarters in Columbus, Ohio. A “number of fashion judgments have been See Limited, Page12 PHOTO BY JOHN AQUINO PHOTO BY 2 WWD, TUESDAY, MAY 17, 2005 WWD.COM VF Corp Revamps Upper Management By Ross Tucker Eric many years,” said McDonald. “We WWDTUESDAY Wiseman want to maintain the advantage Ready-to-Wear/Textiles NEW YORK — A reorganization of we feel we have in that area.” VF Corp.’s management put into Several other executives GENERAL place a new head of global brands, were promoted or given new re- First-quarter earnings at Limited Brands dropped 76 percent, as created a global supply organiza- sponsibilities, as well. 1 merchandise shortcomings at Express dragged down results. tion and led to the departure of McDonald said the company A reorganization of management at VF Corp. will see a new head of global 34-year veteran Terry Lay. has been preparing for the brands and the creation of a global supply organization. The branded apparel giant on change for the last two years by 2 Monday promoted Eric Wiseman bringing in outside talent and EYE: Michelle Monaghan goes back to her roots in “Kiss, Kiss, Bang, to executive vice president of grooming internal candidates. 4 Bang”…Princess Ira von Furstenberg and her objets d’art. global brands, effective June 1. “It is a significant change in FASHION: Fur is a sure thing for fall, as evidenced by Dennis Basso’s boffo Wiseman, 49, will be responsible our organization, but very much 6 show, Michael Kors’ sleek styles and handbags in mink and rabbit. for the growth of the company’s in line with our growth plan that core brands, which include Lee, we initiated at the beginning of Born from a creative challenge, La Pelle Guccissima is intended to boost Wrangler, The North Face, Jan- last year and will be continuing 9 Gucci’s leather segment and pump its accessories business. Sport and Nautica. Six presi- “This allows [our brands] to for the next three-and-a-half Classified Advertisements ...... 14-15 dents of VF’s jeanswear, inti- work more closely together and, years,” McDonald said. mates, outdoor and sportswear at the same time, remain very fo- That evolution will not include To e-mail reporters and editors at WWD, the address is coalitions will report to him. cused on their specific brands,” Lay, chairman of the jeanswear [email protected], using the individual’s name. Wiseman joined VF in 1995, McDonald said. coalition since February 2004. WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 and has been vice president and On the supply-chain side, the Lay has announced his retire- FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 189, NO. 104. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one chairman of the company’s out- company has tapped George ment and, McDonald said, will additional issue in June; two additional issues in April, May, August, October, November and December, and three additional door and sportswear coalitions Derhofer, 51, to head a new global phase out of the company by the issues in February, March and September, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., since February 2004. supply organization aimed at con- end of June. Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Generating synergies be- solidating that function. Derhofer Lay, who was 57 years old at Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, tween brands has been a focus will assume responsibility for all the time the company filed its Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at of management for some time. manufacturing, sourcing, opera- most recent proxy statement in additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration Mackey J. McDonald, chairman tions and information technology, March, joined VF in 1971. He No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR and chief executive officer, said and will continue to oversee the served as president of the Lee di- SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR the new management structure company’s imagewear coalition. vision from 1996 to 1999 and chair- DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is will help efforts across the com- “[Supply chain] has been a man of the international jean- required for change of address. Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production pany’s business segments. competitive weapon for VF for swear coalition from 2000 to 2004. correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND Benetton Net Declines 16.9% TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED tures, about 15 million euros, or $19.7 million, TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE By Amanda Kaiser ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. went toward commercial activities. MILAN — Benetton saw flat sales in the first quar- Meanwhile, a Benetton board meeting named ter of the year as higher costs bit into profits. Alessandro Benetton as a vice president. Net profit for the three months ended March 31 Alessandro is the 41-year-old son of president fell 16.9 percent to 23 million euros, or $30.1 mil- Luciano Benetton and is being groomed to one In Brief lion, from 28 million euros, or $35 million. Revenue day take over the company’s helm. Shareholders dipped 0.8 percent to 378 million euros, or $495.2 voted to modify corporate statute to allow the ● DOCKERS’ PRESIDENT: Levi Strauss & Co. has tapped John million, from 381 million euros, or $476.6 million. company to have two vice presidents. Alessandro Goodman to be president of the company’s U.S. Dockers business. Dollar figures have been converted from the will share the title with his uncle, Carlo. Goodman, 49, comes to Dockers from Kmart Holding Corp., where euro at average exchange rates. Benetton’s board also gave Alessandro Benetton he had been senior vice president and chief apparel officer since Benetton said sales of casual clothing, its core a mandate to expand the company’s activities in December 2003. Goodman will replace Bobbi Silten, who is step- business, were 339 million euros, or $444.1 mil- Asia, especially in China and India. Last month, ping down in June. A year ago, Levi’s put Dockers on the selling lion, in line with the year-earlier period. Alessandro Benetton traveled to China to start block to raise money to pay down a chunk of the firm’s $2 billion Operating profit for the quarter shed 21.5 per- studying the market. Benetton plans to open 40 debt. In October, the company called off the sale because no bids cent to 36 million euros, or $47.2 million, from 45 stores there this year, including flagships in Beijing had been high enough. The U.S. Dockers brand posted gains dur- million euros, or $56.3 million. Benetton said and Shenzhen. The goal is to roll out as many as ing its most recent quarter, rising 3.8 percent in sales to $147.2 higher costs linked to the expansion of its directly 200 stores in China by 2008. million. Operating income increased 33.3 percent to $33.4 million. owned retail network hurt margins. Alessandro Benetton, who already sits on the Benetton said first-quarter investments rose to boards of Benetton and other family controlled ● SCARPA HONORED: On Saturday, Roberta Scarpa received 23 million euros, or $30.1 million, from 21 million businesses such as Edizione Holding and Autogrill, the Designer of the Year Award at Miami Fashion Week, which euros, or $26.3 million. Of this year’s expendi- founded merchant 21 Investimenti in 1993. was held last Wednesday through Saturday. The Venetian-born designer, who presented 25 styles from her fall-winter collection that closed the fashion week, was given the award for her suc- cess as an entrepreneur and stylist. Scarpa is represented in New York by Attila at 552 Seventh Avenue, and the line is cur- rently sold in 40 stores in the U.S. and Canada. Scarpa and her Saks Taps Exec VP of Finance husband, Rinaldo Lorenzon, own Dressing, the Treviso, Italy- based firm that produces several international brands and gen- By David Moin cer, who was among those asked will continue to supervise treas- erated $69 million in sales in 2004. to resign. Others forced out were ury, strategic planning, external NEW YORK — Saks Inc. has pro- Donald Watros, the chief admin- development and real estate. ● A-OK: The board of directors of the Fair Labor Association has ac- moted Kevin Wills to executive istrative officer of the Saks Fifth Wills, a certified public ac- credited six participating companies’ compliance programs, signi- vice president of finance and Avenue Enterprises, and Brian countant, joined the company in fying satisfactory completion of a three-year initial implementation chief accounting officer, report- Martin, a senior vice president 1997 as vice president of finan- period and a find by the FLA that each company is in substantial ing to R. Brad Martin, chairman and brother of R. Brad Martin. cial reporting, rose to senior vice compliance with the association’s requirements to implement a rig- and chief executive officer, and Last week, eight merchants president of strategic planning in orous workplace code of conduct in factories that make the compa- the audit committee of the working in the bridge depart- 1998, and then to senior vice ny’s products. The firms are Adidas-Salomon, Eddie Bauer, Liz board of directors. ment of SFA were also let go, ac- president of planning and admin- Claiborne, Nike, Phillips-Van Heusen and Reebok. “Collectively It’s a key appointment, par- cording to several sources at ven- istration for the Saks department these companies are responsible for consumer products made in ticularly in light of last week’s dors and retailers in New York. store group in 1999. In 2003, Wills 2,800 factories in 62 countries. Each of them has worked hard to es- wave of forced departures at Key bridge vendors at Saks in- was promoted to his most recent tablish a workplace standards program that complies with FLA’s Saks Inc. and the Saks Fifth clude DKNY, Ellen Tracy, Anne post of executive vice president considerable requirements,” said Auret van Heerden, president Avenue division stemming from Klein, Theory and Elie Tahari. of operations for Parisian, where and chief executive officer of FLA, in a statement. investigations into improper Others at SFAE and Saks Inc. he oversaw the financial opera- collections of vendor allowances are receiving disciplinary ac- tions, store operations, human and accounting practices. The tion, including R. Brad Martin resources and merchandise plan- Securities and Exchange Com- and Saks Inc.’s chief financial ning functions of that $700 mil- Correction mission, the U.S. Attorney for officer, Douglas Coltharp, both of lion division. The embroidered, beige cotton tunic and the Southern District of New whose bonuses are being either Prior to joining Saks Inc., striped cotton and linen capri pants, pictured York and Saks itself have been reduced or eliminated. In addi- Wills was vice president and con- on page 17 in Monday’s issue and cited as a conducting probes. tion, Coltharp no longer will troller for the Tennessee Valley bestseller at Neiman Marcus, are by Elie Wills succeeds Donald Wright, have responsibility for account- Authority and an audit manager Tahari. the former chief accounting offi- ing or financial reporting but with Coopers & Lybrand. WWD, TUESDAY, MAY 17, 2005 3 WWD.COM Honoring on Centenary

By Robert Murphy The exhibit. who wrote a 1994 biography called “Christian Dior.” “It was the starting point for everything. Everything he created after GRANVILLE, France — LVMH Moët The Diors’ home was his attempt at getting back a lost perfection.” chief Ber- in Granville. The Diors lived in the in Granville, perched on a cliff nard Arnault watched the sun slice with magnificent views over the dramatic coastline and sea, until through the storm clouds just as he 1910, when they moved to Paris. But they owned it until 1931, arrived here Saturday to inaugu- when Dior’s father went bankrupt and the house was sold off. rate an exhibit honoring the 100th Arnault said he was struck by the extent to which the anniversary of the birth of Chris- house had been integrated into Dior’s symbolic universe. tian Dior. “The pink of the house is Dior pink,” he said during a For the incredibly superstitious press conference. Dior, who was known to consult his Flanked by French Minister of Culture Renaud tarot card reader before every col- Donnedieu de Vabres, who has designated the Dior exhibit lection, the breaking sun would one of 12 in France this year with “national interest,” Arnault have been just the auspicious turn required after a violent related his own childhood memory linked to Dior. He morning downpour on this small Normandy seaside town recalled that his mother used to wear the Diorissimo jas- where he was born. mine-based fragrance. Dior’s family house here is now a museum devoted to the “The garden here is redolent of jasmine,” said Arnault. “I memory of the man who invented the New Look and revolu- smell my mother in this garden.” tionized post-war Paris fashion. Dior is the cornerstone on which Arnault built the LVMH His centenary has given the museum a reason to put on its empire, with brands from Louis Vuitton and to biggest and most ambitious show to date: “Christian Dior, and . He got it as part of the bankrupt Homme du Siècle,” or “Man of the Century.” It is meant to Boussac textile business, which he acquired in 1984 for a draw parallels between the influences of Dior’s youth here, symbolic franc. Dior had sales of 595 million euros, or $773.5 his artistic proclivities as a young gallery owner in Paris and million at current exchange, last year, with LVMH’s sales ris- his fashion career, which began in 1947 when he founded his ing to 13.2 billion euros, or $17.16 billion. house on the Avenue Montaigne. Donnedieu de Vabres called Dior representative of the Several dozen of Dior’s most recognizable dresses are juxta- French “cultural exception,” and the ambassador for “French posed alongside paintings of artists he knew or admired, from elegance” around the world. Christian Berard and Balthus to Emilio Terry and André Derain. “It is remarkable because [Dior] shows that culture is also an A selection of Dior’s personal effects, including his lucky star economic and industrial motor,” he said. “Culture can create and the daily diary he kept in 1957, the year he died of a heart value, employment and wealth. Culture is at the heart of our attack after going to a spa in Italy to lose weight, are spotlighted. influence [as a country] and our economic future.” And there are bottles of Dior perfume dating back to the After a private visit of the exhibit with the minister, designer’s first fragrance, Miss Dior, as well as confections cre- Arnault said he was impressed by the modernity of many of ated by his successors, from Yves Saint Laurent, who catapult- Dior’s creations. ed to fame when, at 21, he succeeded the great couturier, to “I was looking at a dress and thought it was a Galliano,” , who guides the house today. said Arnault. “I was very surprised to learn it was by But it is the quaint pink stucco belle époque house and Christian Dior. He was incredibly modern.” the contiguous ambling garden, much of which Dior He added, “Creation remains the bedrock of the house. designed, that best bring to life other facets of his aesthetic Marketing comes after the creation.” leanings and superstitions. Asked if he ever second-guessed Galliano’s exuberant aes- Each of his collections had a “Granville” model. And in every thetic, Arnault said never. show at least one model wore his favorite flower, the lily of the “I’m very sensitive when I see a runway show,” he said. “I like Bernard Arnault and French Minister of valley, which is planted abundantly in the garden in Granville. to be surprised, and it’s when I’m surprised that I know its good.” Culture Renaud Donnedieu de Vabres. “This was his paradise lost,” said Marie-France Pochna, THIERRY CHOMEL PHOTOS BY “Christian Dior, Homme du Siecle” runs through Sept. 25.

about this. Shopping, to me, is not really stuff is taken totally out of context. My photo shoot knowing which image will a vision for a magazine.” — Jeff Bercovici intention was not to upset anybody.” — J.B. grace our cover. Rather, we review all of the images once they are shot and select MEMO PAD LOCKED AND LOADED: With its official launch UNDER COVER: Imagine finding out you and the one that we feel best represents that just days away, Radar has moved to solidify your toddler are on the cover of a magazine particular issue.” HOMMES SWEET HOMMES: Taking over a a couple of key positions on its masthead. just days before it hits newsstands. Brown added, “My husband was like, magazine is never easy, but it’s a little less Last week, the magazine hired Grayle Back in January, Marisa Noel Brown was ‘Was [our son being on the cover] ever daunting when you can hit someone such Howlett as publisher, replacing Linda Sepp, photographed with her four sisters and their going to be discussed? Was anyone going as Graydon Carter up for an assist. That’s who left in April. Howlett was most recently various offspring at their parents’ new home to ask?’ But Ford thinks it’s hysterical. what Bruno Danto, the new editor in chief publisher of Tracks, the ill-fated music title on the Caribbean island of Mustique. The Whenever he walks by, he says, ‘Mommy of Vogue Hommes International, did for people older than 35. He was also an images were and Fordy?’ I don’t think he quite Monday, hours before catching a plane associate publisher at Sports Illustrated. supposed to be understands yet. I’ll have to save a few back to Paris. Having succeeded Richard Meanwhile, Radar’s creative director, for the interior issues for his scrapbook.” — Sara James Buckley in February, Danto, who had been Richard Christiansen, has agreed to come of Town & deputy editor, is looking to broaden the on board full-time, according to editor in Country’s May TODAY IN COURT: The suspect in the Christa title’s appeal beyond hard-core fashion chief Maer Roshan. Christiansen, who was special home Worthington murder, Christopher McCowen, insiders. His model for the transformation creative director of Suede until its issue, but about is expected back in court today for a is Vanity Fair, he said. “They have the best February demise, originally signed up a week before pretrial conference. McCowen, the garbage writers and photographers, but they still only for the now-completed first issue, the issue collector at Worthington’s Cape Cod house, have the mass audience.” (Both titles are and the talk was that he didn’t plan to shipped, has pleaded innocent to charges of part of Advance Publications Inc., parent stick around longer than that. But that Brown’s mother, murder, rape and armed robbery in the of WWD.) Hence his hour-long sit-down gossip appears to be wrong — for now, at Monica Noel, fashion writer’s 2002 stabbing. with Carter, Vanity Fair’s editor in chief. least. (Christiansen did not return calls.) received an e- Cape & Islands District Attorney According to a Vanity Fair spokeswoman, Speaking of the first issue, one story Marisa Noel Brown and mail with the Michael O’Keefe, who was criticized for Danto even asked Carter to write that’s sure to cause a stir in media circles is son Ford on the May cover surprising news making disparaging remarks about the something for the next issue of Vogue Jay Cheshes’ article on lunchtime at the Four of Town & Country. that Brown’s victim in Maria Flook’s book, “Invisible Hommes, but Carter, who is getting Seasons. For the piece, Julian Niccolini, co- family had Eden: A Story of Love and Murder on married next weekend, declined, saying he owner of the popular power-lunch spot, become the cover story. The e-mail didn’t Cape Cod,” said it has not been was too busy. agreed to draw up an annotated seating indicate which image had been selected for determined who will prosecute the case. Danto seemed less interested in chart for 27 editors, moguls, politicians and the cover, but a few days later, when Brown “I don’t know. That’s a year away. We will getting pointers from other Condé Nast celebrities. Here’s him on Michael Eisner: received her comp issues at home, she look at people’s schedules and make the editors. He said he wouldn’t be involved “He’s clearly in love with Michael Ovitz.” discovered that she and her 18-month-old decision at the appropriate time.” in any way with Men’s Vogue, which will And on Ovitz: “No one goes over [to talk to son, Ford Brown, were featured on the glossy. Both sides agreed that it may take up to launch this fall, around the time the next him] anymore.” And on Bonnie Fuller: “I’m “I was happy. It was a cute picture,” a year for the case to go to trial. McCowen’s issue of Vogue Hommes comes out. “I not impressed with her at all.” Didn’t said Brown. “But I was wondering how it lawyer, Francis O’Boy, said he is considering see it as a competitor within the group,” anyone ever tell Niccolini — who also pens happened. Do they not know who it’s requesting that the trial be moved or a jury he said. As for Cargo, Danto said he a column on manners for Details — that going to be? Do they know and not say be selected from another county due to the doubted European men would have much you’re not supposed to talk about your anything? Maybe they don’t want to get investigation’s heavy media coverage. He interest in the shopping magazine format. famous patrons? Reached by WWD, he said your hopes up.” plans to request funds to hire an expert “Taste is a French game. People like to he hadn’t seen the article, but didn’t think it Editor in chief Pamela Fiori demystified witnesses to review the DNA evidence. have their own style. They’re very picky would be bad for business. “A lot of this the process, saying, “We never go into a — Rosemary Feitelberg 4 WWD, TUESDAY, MAY 17, 2005 WWD.COM

Like a maid of honor upstaging the bride, Chic Kristin Scott Thomas of the stole the show as she glided into the Week premiere of Juliette Binoche’s new film, Screen Siren “Caché,” at the Cannes CANNES — Michelle Monaghan is known Film Festival last Saturday. for playing blondes in films like “The Michelle Dressed in a peacock blue, Bourne Supremacy,” but as a ceaselessly Monaghan custom-made silk, cashmere ambitious actress in “Kiss, Kiss, Bang, and organza Yves Saint Bang,” which just premiered here, she’s Laurent gown that perfectly back as a saucy va-va-voom redhead. offset her pale complexion, “I’m back to my natural color,” she says, Scott Thomas oozed cool stroking her long brown hair and sounding glamour. “There is an relieved. “It’s me. It’s what I’m used to.” abundance of talent and Indeed, the bright, up-and-coming actress elegance in Madame Scott has a strong sense of herself and her style. A Thomas, as well as an self-described “clothes whore,” she’s partial intriguing personality,” says to Marni, Proenza Schouler and Roland designer Stefano Pilati, who Mouret, just to name a few. She also loves high played with transparencies, heels. “Bring on the Christian Louboutin,” she draping and multiple panels declares, flailing her long arms. in crafting the modern And given the growing buzz around the column, inspired by his fall fresh-faced actress, she’ll have plenty of 2005 collection. Scott opportunity to play dress-up. In addition to Thomas was in Cannes to “Kiss, Kiss, Bang, Bang,” which got good promote “Chromophobia,” reviews here, the versatile and well-read the latest from British Monaghan will be seen in the forthcoming “Mr. director Martha Fiennes, in and Mrs. Smith,” with Brad Pitt and Angelina which she stars along with Jolie, and “Syriana,” opposite George Clooney. Martha’s brother Ralph Marching up the Croisette for the first time Fiennes, Penélope Cruz and last week, Monaghan, 28, couldn’t resist Ben Chaplin. Though the snapping a picture of herself on the ubiquitous film holds the honored “Kiss, Kiss” film posters, which feature her closing spot in the Cannes with co-stars Robert Downey Jr. and Val Kristin Scott schedule, it appears Scott Kilmer. “I’m a newbie at this,” she confessed. Thomas in Yves Thomas has already made Still, her fashion choices are on point. Saint Laurent. her premiere. Just don’t Monaghan opted for a slinky Elie Saab gown invite her to your wedding. for her maiden voyage on the Cannes red carpet but said she’s partial to streamlined casual, such as her interview outfit of a yellow leather Roberto Cavalli jacket with matador airs worn over a green Mayle SOCIAL WORK chiffon top and slim jeans. NEW YORK — While many of New York’s Not that she has much time to shop these social ladies have only recently days. Monaghan just finished shooting a embarked on their own businesses, still-untitled film by director Niki Caro, Princess Ira von Furstenberg has been with co-stars Charlize Theron, Sissy Spacek and Frances McDormand. It’s a fictionalized account of the creating small objets d’art for the last 11 first major successful sexual harassment case in the United States. Still, Monaghan, having spent years. That this is not a new endeavor months sparring with Kilmer and Downey Jr., can’t resist calling it a “chick flick.” for von Furstenberg keeps her Despite her keen interest in fashion, Monaghan said she has no ambitions to become a designer circumspect about what she does. Work, herself — except for perhaps the bedding department. “I’d like to design pillows one day,” she says, alas, doesn’t get in the way of pleasure. revealing a quirky hobby. “It’s something me and my mom do. I’d like to go to the fabric shows.” “It’s half a business, half a hobby,” But as with her acting, Monaghan takes her handicraft seriously. Leaning into the table, she declares she says at The Chinese Porcelain with a laugh: “Martha Stewart, watch out!” Company on Park Avenue, which is —Miles Socha exhibiting a selection of her latest Princess Ira von Furstenberg pieces through Saturday. “It’s fun. It gives me a little satisfaction. I don’t want to kill myself for work. You have to do it with a relaxing attitude.” PARIS — Take a pinch of PJ Harvey, an eye® The business started when von Furstenberg — who in her ounce of Björk, the pipes of Billie lifetime has been married to the German-Spanish Prince Alfonso Holiday and the gap-toothed smile of a von Hohenlohe and the Brazilian industrialist “Baby” Pignatari and young Jane Birkin and you get La Brisa worked as an actress under contract to Dino De Laurentiis — was Day Roché, a 31-year-old Californian in Song looking for hostess gifts to give to friends. Cartier and Tiffany didn’t Paris who’s just been signed by the have anything original, in her opinion, so she decided to make French arm of the legendary Blue Note animal sculptures herself. Those pieces have since become her most jazz label. popular. The current presentation includes such beasts as a rock- With photographers already circling Bird crystal elephant with emeralds, a rock-crystal dolphin with ruby eyes in interest, self-styled Day Roché stands holding an enameled ball and a rhinoceros made of turquoise with a poised — on her towering Japanese gold chain decoration. platform sandals, no less — to seduce “Everything is just mass produced,” she explains of the kinds of music and fashion circles alike. crafts around these days. “I’m one of the few left who do one-of-a-kind.” “My physique gives the feeling of a Von Furstenberg likes to keep her prices relatively low, too. The pinup look, and my voice goes aforementioned animals run between $1,500 to $2,500. The most naturally to jazz,” explains the singer expensive item in the show is a $45,000 pair of crystal candlesticks, after a recent knockout gig at Paris’ but most are below $4,000. “They don’t ruin you,” she insists. trendy Le Baron. “But I’m really trying Having 11 years under her belt has given von Furstenberg an eye. to experiment with rock ’n’ roll.” She While she spends much of her travels socializing, she has the added describes her performance style as impetus of shopping, since she’s always on the lookout for things that “intimate, cinematic, pop rock ’n’ roll La Brisa Day Roché can be remounted. “You can’t buy objects that are too overdone with a Sixties sensibility.” Day Roché’s already or too expensive,” is a motto. as yet untitled first album is slated for release this fall in France, with an international rollout to follow. Desired destinations change over the years. Turkey, where she’s The musical combination parallels Day Roché’s fashion sense, also a clash of styles that somehow works. She’ll wear, found many pieces in the past, has become too expensive. Having say, a pair of slim pants from the Sixties with an Adidas men’s running top cinched at the waist and accented with mined many of her sources in Morocco, she’s over it. “India is the diamanté cuffs she sews on herself. “I’m particular about what I like, so it’s easier to make it,” says Day Roché, who place now, I think.” She plans to spend two months there at the end shops in charity and activewear shops. of the year, after she’s moved to her apartment in Rome, the city But for diva impact, the singer says exaggerated accessories are key. A huge wrestling belt, for example, is something where many of her objects are now produced. she’ll wear over tight black pants. Or she’ll string toy guns on a faux leopard skin belt one day and strap them to a kid’s But she doesn’t collect her pieces herself, much preferring to visit plastic crown the next for a kitsch hat à la Courtney Love. “Americans improvise with what they’ve got,” reasons Day them at the houses of friends who’ve purchased them. (Lynn Wyatt, Roché, who grew up combing Californian thrift stores. for instance, is a friend and client.) “I enjoy making them and getting As for inspirations, the starlet’s muses span several generations, with as much an icon as Nico or the rid of them,” she explains. “I’m quite happy, because I like to make legendary Peggy Lee. “She was more hot sh-- than we think,” says Day Roché of the Sixties jazz and pop singer, whom money to create new things. I don’t want to spend my own money to she lauds as “so stylish and so in charge of the public in such an overblown way.” do this, but to spend the new money I’ve earned.” — Katya Foreman — Marshall Heyman MONAGHAN AND ROCHE PHOTOS BY STEPHANE FEUGERE; SCOTT THOMAS PICK BY WIREIMAGE; VON FURSTENBERG BY MARY HILLIARD WIREIMAGE; VON FURSTENBERG BY STEPHANE FEUGERE; SCOTT THOMAS PICK BY MONAGHAN AND ROCHE PHOTOS BY “Too much of a good thing is even better.” Mae West

We’ve added a lot more. With a full spectrum of women’s fashions and accessories, WWDMAGIC is the most comprehensive buying trip you will make all season. More focused environments. More exclusive resources. More exhibitors. No other event brings the business of women’s fashion together like this one. From Better to Contemporary to Juniors, MAGIC has more of what you desire to set your store apart.

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FuAr is a sure thing for fall, Furand the evidence can be found in every direction: Thing Dennis Basso held his biggest presentation to date, while Michael Kors cut furs into sleek, long and cropped versions. Further proof, too, is in retail sales, which are only going up.

Michael Kors for Pologeorgis: Michael Kors might just be Dennis Basso New York’s most stalwart supporter of exuberant American sportswear — luxed up to the nth degree and be- yond. Which is precisely the attitude he worked for his fur collection for Pologeorgis, presented last week in a series of low-key showroom presentations. In a 15-piece capsule of the much larger collection, Kors played smartly to his customer’s sleek tendencies with trim shapes and a racy Michael Kors attitude — a sheared mink pea jacket, anyone? How about urbane Aspen in a white mink lodge jacket? Of course, the Kors girl loves to indulge in a bit of decoration now and then. For her more lady-fied moments, he offered a jew- eled, shrunken broadtail jacket, and when her mood calls for glorious indiscretion, a long, bright red sheared mink coat with an enormous raccoon collar.

Michael Kors PHOTOS BY JOHN AQUINO AND ROBERT MITRA JOHN AQUINO AND ROBERT PHOTOS BY WWD, TUESDAY, MAY 17, 2005 7 WWW.WWD.COM Dennis Basso High Spirits at Montreal Fair MONTREAL — Retailers shopping the 23rd an- nual North American Fur and Fashion Exhibition here May 8-11 at Place Bonaventure said they were enthusiastic about the upcoming season. The 200,000-square-foot exhibition hall was sold out, as 200 exhibitors were kept busy writ- ing an estimated $1 million worth of orders from about 4,000 buyers from around the world. And overall demand for fur products continues to increase, with retail fur sales in the U.S. last year at $1.8 billion, up 7.5 percent compared ng with 2003. Canadian fur exports, 80 percent destined for the U.S., totaled $288.8 million in A look 2004, an 8 percent increase from the previous from year. Total fur exports have increased by one- Palaisis third in the past five years, according to the Fur des Council of Canada. Forrures. Exports of raw furs to the U.S. accounted for $185.7 million of total exports, followed by $73.1 A Jean million in fur garments and $30 million in Crisan dressed furs. All figures have been converted coat. from Canadian dollars at the current exchange rate. Flemington Fur Co., of Flemington, N.J., had a “terrific season” with a 20 percent increase in sales, said owner Bob Benjamin. “We buy year- round, and our inventory is clean. Fur is very hot and this winter worked well for us with coat sales coming on strong as winter approached.” With a 40,000-square-foot store, possibly the largest fur retailer in North America, Benjamin carries a “tremendous amount of inventory,” which he shops for all over the world, in addi- tion to manufacturing mink coats. The Montreal show accounts for about 25 percent of his pur- chases, where he bought a lot of sheared beaver and shearling. One fur retailer who didn’t enjoy a good year was Paul Dittrich of Dittrich Furs, in Detroit. “We thought it would be a good year and bought heavy last year. But with the GM and Ford layoffs, our sales were down 18 percent,’’ he said. “I had over 300 garments in storage that never saw the shop floor. As a result, my open-to-buy is reduced by 45 percent.” Stuck with heavy inventory, Dittrich was selective in his buying at the show. He left paper with Furko Canada for reversible beaver and suede jackets. “I’ve noticed an increase in jacket sales this season, but we still seem to do better with long furs compared to sheared mink or beaver,” he said. Business at Lazare’s Furs across the Detroit River in Windsor, Ontario, was better, although it, too, was down, said owner Paul Twigg. “We’ve had better years, but we still sold a lot of merchandise. Our number-one seller was mink, followed by sheared beaver,’’ Twigg said. “Our sales were off by about 10 percent, due mainly to our store in Detroit. In fact, the whole southeast of Michigan took a hit this year.” Despite the drop in sales, Twigg’s inventory was “fairly clear” be- cause he manages it on a regular basis. “If something’s not moving, we’ll take a hit (cut prices) by clearing it out. My open-to-buys were good, because we watched ourselves last year and didn’t overstock.” Twigg bought from Natural Furs and Global Furs, his major private label supplier and also purchased accessories from Mitchie’s Matchings and Luna Fur. In addition to his own business, Twigg is pres- ident of the Retail Fur Council of Canada and said none of his mem- bers had a bad season. “People who are reinvesting in their businesses and buying more creatively to reach younger consumers are doing well,’’ he said. “The service end of the business — like remodeling — is really doing well.” Exhibitors felt traffic at the show was the same or slightly better Dennis Basso: There’s a difference between a fur show and a fashion show, and than last year. this has seldom boded well for the fur market. But with the presentation he “We wrote orders the first day, which is unusual,” said Mike staged on Monday afternoon, Dennis Basso crossed over brilliantly, with a sure- Constantopoulos of Palais de Fourrures, a local mink coat manufactur- ty and style his colleagues would be well advised to take note of, should FICA er. But Tommy Kotsovas of Zuki Furs here felt traffic was about the ever choose to revive its now-dormant group show. same as last year, with a lot of looking on Sunday before buyers wrote The presentation had all the makings of a real fashion show: live models, on Monday. nonhideous hair and makeup, professional production and a point of view be- Angelo Tsangaropoulos of Mink Mart on Seventh Avenue in New yond the latest redux of classic glam for the tony matron set. It also had some Yo rk, thought traffic was heavier than in 2004. news behind the chic: the elevation of longtime design assistant Nicolas Petrou “Last year, the first day was pretty quiet,’’ he said. “But the buyers to the position of creative director, a point Basso heralded boldly on his show who know us come early to beat the rush. A lot of our customers from notes but played down in a telephone chat. The show was styled to near perfec- the States come to the show but don’t come to New York.” tion, with multiple strands of massive beads and embroidered underpinnings Aaron Lishman of knitted fur specialist Paula Lishman Furs of heightening the controlled exotica. But really, it was the furs that sparkled, figu- Blackstock, Ontario, felt traffic was the same as last year. “We expected ratively if not literally. They dazzled with a bold, unfussy attitude that veered to- more buyers, but it was better than most previous years.” ward the earthy while flaunting their ultrarefined execution for a look Basso Traffic was up 5 to 7 percent over last year at Natural Furs, said called “East meets West meets Park Avenue.” owner Christina Nacos. He could write fashion copy. Early looks hinted at Native American influ- “We were working more consistently throughout the entire show,’’ ences but moved seamlessly into Indian of the Eastern persuasion, with a she said. “Luxury items like Persian lamb, reversibles and long-haired soupçon each of Mongolian and au courant witchy wear. The predominant were our strongest sellers.” shape was lean through the waist then flared and done up with all kinds of ex- To exploit emerging opportunities around the world and to protect tras — bright embroideries, beadwork, lace, scallops and whipstitching, as well Canadian manufacturers from low-cost countries, the Fur Council of as a bounty of material mixes strong on broadtail and sueded mink and sable. It Canada announced it will spend about $1 million on a print and bill- was all the kind of fabulous that will make hard-core fashion lovers take notice, board campaign next fall. The “Beautifully Canadian” campaign and if they haven’t already. garment label will promote the superior quality of Canadian furs in the As for Basso’s core customer, in the throes of heady post-show/new-title excite- face of growing competition, said council executive vice president Alan ment, Petrou maintained that, given her current substantial fur wardrobe, “She’s Herscovici. not looking for a classical, traditional coat....If it’s not creative, I don’t want to do “Like the rest of the Canadian garment industry, we are facing a it.” But the boss said au contraire. Suffice it to note that when Liza, Star or Mrs. very serious challenge from low-cost producers. In response, we will Smith is in the market for a new full-length sable, Dennis will still be her go-to play to our strengths — extraordinary craft skills and beautiful furs.” guy, and he would be loath to disappoint. — Brian Dunn 8 WWD, TUESDAY, MAY 17, 2005 WWD.COM Ready-to-Wear Report Ringing In 60 Years Donna Karan’s Dutch Treat NEW YORK — Unlike the Dutch Village theme park in Holland, Mich., where visitors can linger at the wooden shoe factory or Pieter & the Dike, the Dutch Village that Donna Karan welcomed into her late husband’s work studio Friday night was artistically minded. At Utex Fashion A bevy of wide-eyed Dutch in- dustrial artists and other designers By Brian Dunn “We’ve been around for 60 years, but with quotas buzzed around the cavernous ending, we’re facing more and more competition space, admiring each other’s work. MONTREAL — Montreal-based Utex Fashion from wholesalers and retailers, and that’s why it’s Their one common link was their Group, founded by two brothers in a bicycle shop, important to have brand recognition,” Gurberg said. alma mater, the Design Academy is celebrating its 60th anniversary this year. In terms of fashion products, Utex faces the Eindhoven, the epicenter of Dutch The company is a designer and distributor of marketing juggernauts of companies like DKNY, design today. Jurgen Bey, Hella misses’ outerwear under the Utex, Hilary Radley, and Hugo Boss that put a lot of Jongerius, Maarten Bass and twin Jones New York and Perry Ellis labels. It also de- money into advertising. But the company’s chal- brothers Joep and Jeroen Verhoev- signs and distributes men’s outerwear under the lenges don’t end there. en helped build the village. Utex, Massimo Moda and Perry Ellis labels and “Outerwear drives our business and a lot of The only person more pleased Donna Karan and Li Edelkoort men’s suits, jackets and sportswear under the Utex, that is now carried by big-box stores and discount with the outcome than Karan was Perry Ellis and U & I names. Private label is also an chains like TJ Maxx, Winners [in Canada] and the academy’s chair, Li Edelkoort. Standing next to Roel van important component of the company’s business. Heur’s red bicycle equipped with a fire extinguisher, she said, Started as Utility Textile Industries by Irving and “This is amazing. The generosity of Donna Karan to give me this Harry Gurberg in Victoriaville, Quebec, about 50 A shearling space is enormous. For the last 10 years, our graduates have ex- miles east of here, Utex’s first product was the jacket from plored many traditions using futuristic technology to make them Utexans men’s Western sports shirt. From there, it Hilary look familiar. We love to blend the old and the new. All these moved into a former biscuit factory, and in 1960, into Radley. products have a great emotional and romantic quality.” its own 100,000-square-foot factory with 1,200 workers. All too familiar with how fine craftsmanship in ceramics, glass, Today, the company’s head office is in a 140,000- wood, metalworks, embroidery and knitting is being replaced by square-foot building that is mostly a warehouse, de- mass production, Edelkoort’s crew tries to hold on to some of those sign and distribution center, with a minimal amount features in their work. The old-new combo was evident in Joep of production done locally. Most production comes Verhoeven’s chain-linked fence that looks like it was in bloom; from China, Eastern Europe and Bangladesh. Jeroen Verhoeven’s curved table that appeared to have been laser Utex began sourcing products in Japan in the cut, and Kiki van Ejik’s hooked rug early Sixties and started importing cottons and with a gigantic rose motif. The exhi- wool from Romania, Bulgaria and Czechoslovakia bition folds this evening. in the late Sixties. From there, it moved into main- Karan eyed the work like a land China. prospective buyer, examining the In addition to its head office, Utex has a 70,000- handiwork with great interest and square-foot warehouse and distribution center in peppering the designers with Fairview, N.J., and showrooms here, as well as in questions about their techniques. Toronto, New York and Chicago. The designer said she couldn’t “We work with a few factories in China where we think of anything more appropri- represent such a high percentage of their business ate to host in her late-husband’s so they won’t take on extra accounts for a dollar studio, since he started out as a more,” said David Gurberg, who became company furniture designer, creating sets president after the death of his father, Irving, in for Broadway. On top of that, the 1991. His sister Marian Gurberg is vice president. gathering captured the spirit of “We used to supply everything, like fabric, Greenwich Village, which has thread and buttons,’’ he said. “It was a logistical been a harbor for artists as far nightmare. Now the factories are a lot more so- back as the Twenties. phisticated, and we just send technicians over- Kiki van Ejik’s work. Karan credited her friend, Edel- seas to supervise overall quality inspection.” Burlington Coat Factory who compete with tradi- koort, for helping to bring it all to- When David Gurberg joined the company in tional department stores who are our main cus- gether. “Li has been my inspiration in so many different ways — as 1961, annual sales were $5 million. By the end of the tomers,” David Gurberg said. a woman, as an artist, as a teacher. I think we talk the same lan- Seventies, they topped $35 million. Today, they are Utex has responded by operating at both ends guage.” Karan said. closer to $80 million, with half generated in the U.S. of the market. In addition to supplying Sears Earlier in the evening, Edelkoort insisted the academy was a But the company’s customer base has shrunk Canada and the Hudson’s Bay Co., it sells down fine-tuned machine before she got there. “All I had to do was fly with the bankruptcy of the Eaton’s department store jackets and PVC products to Costco. the kite,” she said humbly. chain in Canada and retail consolidation in the U.S. “We’re apparel-driven and can focus on other One of her prodigies, Kiki van Ejik, created a color-coded, Utex products are in stores like Saks Fifth Avenue, areas,” Gurberg said. “The word ‘collection’ comes Mondkiaan-inspired piece on the second-floor. She placed a variety Bloomingdale’s, Nordstrom and Lord & Taylor. to mind, as in ready-to-wear for both women and of traditional Dutch foods in primary colored square frames, so “We’re also facing competition from some of men, which we will be launching for fall 2006. that viewers would look into each our retail customers who buy on their own,’’ Right now, we’re debating which labels to use.” as if they were a little museum. Gurberg said. “They’ll take 60 items of ours then Despite keeping one step ahead of other com- “I think this is the best exhibit order 6,000 similar items produced at the low end. petitors, Utex is facing an even bigger adversary. space that we have ever had. The That’s why it’s important to have a label that con- “Now we are facing competition from overseas color and the space itself is just sumers can identify with.” manufacturers who may even be one of our own perfect for the objects,” she said. Utex decided to mark its 60th anniversary with suppliers. We will continue to find ways to bring the Murray Moss, one of the first to a major branding campaign that includes bill- latest fashions out at very attractive prices. If we pick up on designers such as Hella boards, airport advertising and print ads. can’t, we won’t survive,” Gurberg said. Jongerius, agreed. “The students’ work is usually not shown in this type of polished environment even though it is by far the best design school in the world. It gives it the Scott Bowman Heads to Polo respect which I think it deserves. Moss liked the juxtaposition of NEW YORK — Polo Ralph Lauren Corp. tapped Scott Bowman as president of international business the new and old, especially Job development, a new post. Smeets for Royal Tichelaar Before joining Polo, Bowman was president of Scott Bowman Associates, a consultancy firm he Makkum, the event’s sponsor and founded in 2003, which focused on offering global retailers and brands business development support a centuries-old ceramics company.

and strategic planning services. According to Bowman, the consultancy will now “be winding down.” “To have young artists share the STEVE EICHNER DUTCH PHOTOS BY Prior to launching his firm, Bowman was chief executive officer of , a division of LVMH space with the oldest company in Dressing Dutch at Weiss Studio. Moët Hennessy Louis Vuitton. He managed the label’s planning from licensing to the expansion of the Netherlands is a lovely and Jacobs’ retail network in Asia. He had also been president and ceo of DFS Mid-Pacific Region and held correct idea.” Even checked out the scene. several management posts at Limited Brands, Macy’s and Maas Brothers/Jordan Marsh. Edelkoort’s next project is what she calls a “humanitarian ef- At Polo, he will be in charge of the company’s businesses in Australia, Far East Asia, Japan and fort” to try to revive the textile industry in its mills in Prato and South and Central America, some of which are licensed, and he will report to Roger Farah, Polo’s presi- Como, as well as India, which have been hard hit by China’s dent and chief operating officer. dominance in recent years. She is hoping to pull together a sym- “He brings leadership to our long-term strategic initiative to increase the Ralph Lauren busi- posium of fashion leaders to discuss the problem. ness internationally, specifically in the luxury markets in Japan and the Pacific Rim,” Farah said — Rosemary Feitelberg in a statement. WWD, TUESDAY, MAY 17, 2005 9 WWD.COM Gucci Project to Boost Leather Ullman’s People Plan By Alessandra Ilari By Vicki M. Young MILAN — Born from a creative challenge, La NEW YORK — While chapter one in the J.C. Penney turnaround story Pelle Guccissima is intended to boost Gucci’s was about getting the merchandising, operations and numbers right, underexploited leather segment and pump its chapter two is going to be all about the people. accessories business. To that end, J.C. Penney chief executive officer Myron E. Ullman 3rd The new project, which will hit the Gucci said he’s taking steps to ensure that employee ownership becomes a cor- stores in August, comprises bags, footwear, nerstone of the retailer’s five-year growth plan. small leather goods, luggage and watches, as “Implicit in that is having people focused on the initiatives that drive well as printed silk, velvet and cashmere growth, such as better assortments, easier shopping environment, more scarves, imprinted with the double-G logo or excitement in the stores and attracting new customers through in- the horse bit motif. creased emotional articulation, through lifestyle merchandising. We be- “We worked on this line for over a year lieve that we can unite people in terms of feeling great, while moving with the intention of giving leather — which Here and below: Looks from La Pelle Guccissima. ahead of the pack,” Ullman told WWD. is our heritage — a new focus, energy and mo- When Ullman first took the helm of the company in December, one of the mentum,’’ Mark Lee, Gucci’s president and ter embossed while the bit, which is bigger things he did was spend time visiting J.C. Penney stores and getting input managing director, told WWD in an interview. and more detailed, looked better in relief.” from various levels during town hall-style meetings, said a source close to “We felt that aspect was missing and that our Stressing that it takes one worker a full day the company. The source said Ullman, after developing his ownership plan leathers weren’t immediately recognizable, to treat a hide, Giannini mapped out the with his senior management team, made sure everyone inside the organiza- since Gucci is very much associated with the process: Once the raw materials are selected tion knew about the strategy before the company disclosed it to the public. logoed canvas.” — in terms of quality and resistance to heat — In line with the employee-ownership strategy was last week’s an- A special advertising campaign that begins they are waxed, hot-printed and finally hand- nouncement that Michael Theilmann was appointed executive vice pres- at the end of June will support the new line. sponged to remove any wax remnants. ident, chief human resources and administration officer. Theilmann, 41, Frida Giannini, creative director for ac- The designer admitted that she pushed her- joins J.C. Penney from Yum Brands Inc., where he served most recently cessories and women’s ready-to-wear, is up- self and the artisans working in Gucci’s Tuscan as senior vice president, human resources and chief people officer of its beat about her latest undertaking and Gucci’s factory to nail down the labor-intensive techni- international business. He replaces Gary Davis, 62, who will retire after support of it. “From a creative standpoint, I calities. “At first I was frustrated because the 41 years with the retailer. was ready to shift the focus from the canvas- hides weren’t responding they way they should “For the last nine years, the business was downtrending, [and] the logo combination,’’ she said. “I find that have,’’ she said. “We really had to sit in the fac- people component wasn’t part of the turnaround. There were so many leather is very rich and luxurious, especially tory for days, trying, trying and re-trying.” other critical elements that needed to be addressed,” the ceo said. if it says Gucci all over it, and it targets a Luxurious, with a slight retro feeling coun- The people-focused strategy is being honed by Ullman’s past retailing wider clientele.” terbalanced by clean shapes and modern col- experience as well as the observations made while serving as a board Sales projections for the line were not ors, La Pelle Guccissima “has one foot in the member at Starbucks. available. past and one in the future,” Lee said. The ceo recalled his days running a bankrupt R.H. Macy in the early La Pelle Guccissima’s specialty — hard to That’s because Giannini, who never tires 1990s. Macy’s was taken over in 1994 by Federated Department Stores, counterfeit — is that artisans use handmade of mining Gucci’s past, has a knack for meld- which at the time was led by Allen Questrom, Ullman’s predecessor at J.C. presses to hot-print the classic double-G logo ing yesterday with tomorrow. “Modernity is Penney. “While everyone feels that [Macy’s] didn’t fail, I’m not sure they felt and the horse bit onto the hides. the consequence of how you apply a retro great doing it. The Macy’s experience gives you a sense of accomplishment “The imprinting is the same, but depend- idea in terms of shapes and product cate- at the end, but it was painful while going through it,” Ullman explained. ing on which way you turn the hide, the effect gories,” she noted. As a Starbucks board member, Ullman values the emotional connection is embossed or in relief,’’ Giannini said. “We All the footwear and the bags, which include between associates and their customers. It can bolster a company’s prof- all agreed that the double-G logo worked bet- sacs, hobo bags, shoppers and Treasure, a new itability. “It’s about having your associates engaged from when they get up Fifties-inspired rigid style with locket, are lined in the morning, and to think about ways to service the customer,” he said. with a multicolor horse bit-printed cotton. The Theilmann, who starts his new post on June 1, plans to do his share of three key materials are calfskin, velvet and store tours as he determines how best to meet his mandate of creating a patent leather, at times partnered with lizard or “people culture” at the retailer. crocodile. They are served up in anything from While at Yum, Theilmann had the opportunity to create an ownership bitter chocolate brown, midnight blue, cream culture based on performance as Yum was preparing for its spin off from and lavender. On the footwear front, there are Pepsico between 1997 and 1998. boots, pumps and loafers. “We wanted to get employees to think like shareholders. I call it hav- Prices for leather, patent and velvet bags ing skin in the game,” Theilmann explained. start at $700 and jump to $5,700 for patent and crocodile versions. The entry price for lug- gage is an $850 beauty case, while the most expensive is the $3,100 leather trolle. A wo- men’s loafer or velvet ballerinas costs $350, Ruehl Finds West Village Home with patent leather boots $1,400. Accessories fanatics will immediately pen NEW YORK — Ruehl, the new Abercrombie & Fitch brand intended for La Pelle Guccissima in their wish list. The 22- to 35-year-olds, encompasses a range of merchandise, including line was conceived to last. men’s and women’s casual sportswear, jeans, outerwear, fragrance and “It’s not one more accessory, but a whole accessories sold in stores that usually average 8,000 square feet. new project that will stay around for many That kind of retail space is virtually unheard of in Manhattan’s West years,’’ Lee said. “We will add seasonal new Village, where Ruehl set its sights on opening a store. But the architec- styles and colors, but in terms of quality we’re ture of the neighborhood dovetails well with Ruehl’s concept, involving a trading up just as many of our competitors town house with a brick facade and wrought-iron fence. are trading down.” The first Ruehl handbag-only store is scheduled to open in November In sync with the line’s back-to-the-future in a 600-square-foot former antiques shop at 370 Bleecker Street. mood is the ad campaign shot by Craig McDean. Handbags in the line sell for $268 to $1,098. The concept is a modern-day revival of the The store will be among neighbors Ralph Lauren, Lulu , celebrity-filled paparazzi shots stored in Cynthia Rowley and Marc Jacobs, who made the thoroughfare trendy Gucci’s archives. “Many of the shots were when he became the first designer with a national profile to open a store taken on the streets with the VIPs carrying there in the mid-Nineties. numerous bags,” Lee said. A Ruehl spokeswoman said other handbag-only stores are planned but In a similar form, this campaign zeroes in declined to discuss specific locations. Ruehl stores have bowed in on a male and female model walking down International Plaza, Tampa, Fla.; Woodfield Mall in Schaumburg, Ill; the street toting different kinds of bags. Garden State Plaza in Paramus, N.J.; 12 Oaks in Detroit, and Easton Town “Though product-driven, the images are fast, Center in Columbus, Ohio. Other units are planned for the Roosevelt modern, strong and sexy,” Lee noted. Field Mall in Garden City, N.Y. and Tyson’s Corner in McLean, Va. He said Gucci has made a significant invest- Meanwhile, Abercrombie & Fitch is moving ahead with its Fifth ment, which he declined to disclose, behind this Avenue flagship. product launch. The company has also in- The A&F magazine makes it seem as if the world is populated by im- creased its overall communications spending in possibly beautiful, athletic creatures, all under the age of 25. Chaise 2005, with ads in new titles that include Vitals Mooty, a face in the Summer 2005, Issue 4 magazine, upholds that as- Women, Elle Accessories and Lucky in the U.S sumption. There’s more Mooty plastered across the facade of 720 Fifth and El Mundo and Fuera de Serie in Spain. Avenue, the site of the flagship. “As part of a larger strategy, we’re animat- The company in November is opening a 23,000-square-foot store in ing the season with twice the number of ad the space, which formerly housed . The store, designed by pages, diversified for the months: August Annabelle Selldorf in collaboration with A&F chairman and chief execu- through October with apparel and accessories tive officer Mike Jeffries, will sell the Abercrombie & Fitch brand, Ezra from the fashion show and November and Fitch and abercrombie for kids, for ages 10 to 14. December dedicated to flash, cruise and jew- — Sharon Edelson elry,’’ Lee said. 10 WWD, TUESDAY, MAY 17, 2005 WWD.COM In Transit Senators Make $11.5B Stand on Bush Highway Budget By Kristi Ellis Inhofe also maintained that the $11.5 billion in additional WASHINGTON — Heading for a funding is inadequate to address potential showdown with the the infrastructure problems over White House, Senate members the six-year period the measure have added billions of dollars to a covers. Congress has failed to highway bill in excess of the Bush approve the bill in the last two administration’s budget. They years because of disputes over insist the money is critical to costs, and the program has been upgrade the decrepit U.S. trans- operating under extensions. The portation system. sixth extension is set to expire at Importers and apparel the end of the month. HIGHWAY PHOTO BY WILLIAM THOMAS CAIN/GETTY PHOTO BY HIGHWAY exporters are concerned about RICHARDS/GETTY IMAGES PAUL IMAGES; GREGG BY For U.S. companies exporting the nation’s transportation infra- and importing billions of dollars in structure and congested ports products a year, the infrastructure and highways, particularly in issues are raising concerns to a light of dramatic shifts in global new level. sourcing. Peter McGrath, chairman of The Senate, expected to vote on purchasing for J.C. Penney the measure this week, voted 72 to Purchasing Corp., recently told 22 last Wednesday to add about an audience of apparel manufac- $11.5 billion to the $284 billion turers he is “scared to death” of

highway bill, which is intended to ▲ Sen. Judd Gregg (R., N.H.) was one the aging infrastructure. improve roads and bridges. of the few to criticize the move. McGrath, speaking at the Several Republican senators American Apparel & Footwear joined with Democrats supporting the increase in the funding, present- Association’s annual meeting in Palm Beach, Fla., in February, said ing a challenge to Senate leadership, which is controlled by the GOP. the insufficient number of ports, aging railroads and lack of truck The additional money is a challenge to the administration’s pledge drivers is alarming. to control fiscal spending and sets the stage for a possible showdown “The infrastructure in the U.S. is falling apart,” he said. in the House and a potential veto by the President. Julia Hughes, vice president of international trade at the U.S. Sen. Judd Gregg (R., N.H.), chairman of the Senate Budget Committee, Association of Importers of Textiles & Apparel, said importers are primari- criticized the increase on the Senate floor last week, calling the move “simply ly concerned about congestion in ports but look at the whole host of issues, unequivocally, unquestionably a budget buster” and adding that the President’s posi- including railway lines and trucking facilities, as needing improvements. tion on maintaining a ceiling on the measure is being “ignored.” “The clock is ticking, and there hasn’t been investment [in infrastructure],” Sen. James Inhofe (R., Okla.) countered that the measure is critical to revitalizing Hughes said. “Plus, more and more companies are following the business model of the nation’s roads, railways and buses. just-in-time shipments. A delay used to be built into shipping times to clear customs, “This bill is not just any type of bill that is coming along,” said Inhofe, according to but companies don’t have that flexibility anymore and they can’t afford to miss deliv- transcripts in the Congressional Record. “This is a bill that is a matter of life and death.” eries to customers.”

The acquisition will give Maersk more than 450 ships and nearly Shippers Get Modest Rate Hikes 1.5 million containers. NEW YORK — Ocean carriers shipping Asia to the East Coast, which requires goods from Asia are getting most but passing through either the Panama or not all of the rate increases they had Suez Canals, shippers sought an proposed heading into negotiations increase of $430 per FEU. with importers. “Carriers had greater luck passing on A spokesman for the 13 carriers that cost increases they incur from third par- participate in the Transpacific Stabili- ties other than just increasing their own zation Agreement said that talks for rates,” said Wiesenmaier. “There was next year’s contracts with importers more understanding on things like bunker were 90 percent complete, and that the fuel than just general increased costs.” remainder should be finished by the Carriers don’t disclose their base end of the month. charges publicly, but studies have shown “The rate hikes did not come through that the cost of shipping a container as announced,” said Hubert Wiesen- across the Pacific is $1,500 to $2,000. maier, executive director of the Ameri- Peak season charges may still put the pinch on importers. PHOTO BY EPA/PALLE HEDEMANN /LANDOV EPA/PALLE PHOTO BY The rate hikes did “Peak season generally has been extended by a month,” said Wiesenmaier. not“ come through as Heading into negotiations, the TSA had recommended a $400 increase on Maersk to Acquire Nedlloyd announced. containers arriving between June 15 and ” Nov. 30. However, this year’s suggested NEW YORK — A.P. Moeller-Maersk is beefing up its position as the world’s largest ship- — Hubert Wiesenmaier, AISA increases were lower than in years past. ping company. In 2003, the TSA asked for a $450 The firm said last week it reached an agreement to acquire Royal P&O Nedlloyd NV can Import Shippers’ Association, a increase on FEUs shipped from Asia to for 57 euros per share, bringing the total purchase price to about 2.3 billion euros, or trade group that negotiates freight rates the West Coast and asked for increases $2.9 billion at current exchange rates. on behalf of an estimated 200 small to as high as $900 on other routes. The purchase price represents a 40.6 percent premium to the May 9 closing price, mid-size corporate members. In justifying this year’s increases, according to a joint statement from the companies. The deal is expected to close by “Certain trade lanes where the ves- the TSA pointed to an expected surge August, after a special meeting of P&O Nedlloyd shareholders scheduled for July. sels are full, the carriers managed to get in shipments from Asia to the U.S., “The cash offer from Maersk represents full and fair value for P&O Nedlloyd share- modest rate increases. In other trade which is projected to grow by 10 to 12 holders and accordingly, the board of P&O Nedlloyd has no hesitation in recommending lanes, they had to be very flexible.” percent this year to a total of 5.8 million the offer to them,” Philip Green, chief executive officer of Nedlloyd, said in a statement. Actual rates were not disclosed, FEUs. Rapid growth has already “At the same time, we believe the combination of our two businesses will ensure that both largely because each importer negoti- caused backups at West Coast ports customers and employees will enjoy the benefits of a substantially enhanced business.” ates its own rates with freight carriers, over the past two years. If the deal reaches completion, Maersk will pick up the world’s fourth-largest ship- using the TSA as a guideline. The members of the TSA are ping company. Maersk Sealand, with more than 300 container vessels and 1 million con- Heading into negotiations in mid- American President Lines, CMA-CGM, tainers, is already the world’s largest shipping company. Adding Nedlloyd will give April, the TSA recommended a $285 COSCO Container Lines, Evergreen Maersk an additional 156 ships and 428,000 containers. increase on each standard 40-foot con- Margin Corp., Hanjin Shipping Co., The planned acquisition comes as Nedlloyd is posting significant gains in its ship- tainer, known as a FEU, shipped from Hapag Lloyd Container Line, Hyundai ping volume. In 2004, the company shipped a total of 4.1 million 20-foot-equivalent units Asia to the West Coast. Merchant Marine Co., Kawasaki Kisen — the standard maritime industry measurement used to count cargo containers — a 10 For shipments moving on from the Kaisha, Mitsui OSK Lines, Nippon Yusen percent increase from the 3.4 million TEUs shipped in 2003. The largest gains came West Coast to inland locations via road Kaisha, Orient Overseas Container Line, from its transpacific routes, rising 17 percent to 614,000 TEUs from 523,000. or rail, the carriers sought an increase P&O Nedlloyd and Yang Ming Marine. —R.T. of $350 per FEU. On shipments from —Ross Tucker Satisfied customers require superior global transportation & logistics.

One Meadowlands Plaza East Rutherford, NJ 07073 P: 201-896-6200 F: 201-896-6342 Whatever the product, size, color or location . . . consumer satisfaction and your bottom line depend on superior global transportation and integrated logistics.

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From purchase order to product delivery, make P&O Nedlloyd’s fully-integrated supply chain network and North American store delivery program your competitive advantage. 12 WWD, TUESDAY, MAY 17, 2005 WWD.COM Limited 1st-Qtr. Net Drops 76%

Continued from page one not as good” as they should have. Executives said that there were no plans to shed the apparel division, which includes Express and Limited Stores, and that setbacks in sportswear won’t im- pede initiatives in the fast-paced lingerie and personal care divisions. On the agen- da: the Pink subbrand of Victoria’s Secret will begin opening stores, and Bath & Body Works will soon start selling online and via catalogues. Limited said net earnings in the quar- ter ended April 30 fell to $23.1 million, or 6 cents a share, dropping below Wall Street’s expectations of 8 cents. Comparatively, Limited earned $96.6 mil- lion, or 19 cents, in the first quarter of 2004. Shares closed at $20.45 on Monday, up 0.1 percent in New York Stock Exchange trading. On an adjusted basis, which excludes a $44.9 million, or 6 cent, pretax gain from the repayment of a New York & Co. subor- dinated note, Limited Brands posted earnings of $67.8 million, or 13 cents, in the first quarter of 2005; Limited sold New York & Co. to Bear Stearns Merchant Banking in November 2002. Net revenues in the latest quarter were essentially flat at $1.97 billion, down 0.2 percent from last year’s $1.98 billion. Same-store sales in the period declined 5 percent. itself more of a packaged-goods company, Other growth strategies: quarterly loss at Express “is twice the Limited said in a statement that it sees as opposed to strictly a specialty retailer. ● Bath & Body Works is working on amount that Express earned in all of 2004, second-quarter earnings at 23 cents to 25 Limited Brands operates 3,699 stores and “full-direct capability to sustain its mo- which was half that earned in the prior cents and full-year earnings at about posted $9.4 billion in sales last year. mentum, and plans to launch e-com- year.” However, “while investors might be $1.41. Analysts are calling for 29 cents in With Express a major drag there has merce in October, and a catalogue in clamoring for disposal of the apparel busi- the second quarter and $1.50 in the year. been speculation of an apparel spin-off. 2006. The division is close to completing ness now more than ever, the value equa- First-quarter operating income totaled Leonard Schlesinger, vice chairman an agreement with a third party to out- tion is unlikely to work in shareholders’ $48.3 million, down 59.6 percent from the and chief operating officer, said during source technology and fulfillment. The favor given the deterioration in perform- previous year’s $119.4 million. Operating the conference call: “While we have al- outsourcing decision is “driven especial- ance. Even if the business was up for sale, income at Victoria’s Secret increased by ways in the past demonstrated our will- ly by the fact we want to get into the mar- it’s unclear whether any buyers would be $6.2 million; Bath & Body Works in- ingness to adjust the portfolio in the ket quickly,” Schlesinger said. “It’s not interested for a reasonable price.” creased by $7.8 million, apparel operat- name of shareholder value and will al- intended to state a strategic direction.” Lazard Capital Markets analyst Todd ing income declined by $79.2 million. ways continue to do that, that doesn’t ● Breathe, a collection of “mood en- Slater said in a report that it would take Same-store sales in the second quar- drive us right now having a specific time hancing” fragrance and skin care line, 24 to 36 months for Express to get back to ter are anticipated to be flat. May comps frame for the disposition of any of our will be launched by BBW in July. Neil typical operating margin levels of about are expected to be down in the low-sin- businesses….At the moment, we’ve indi- Fiske, BBW ceo, called the line an “ac- 10 percent seen from 1999 to 2000. gle digits. cated quite clearly that we have no plans cessible trade up opportunity and a mod- “We’re embarrassed by the perform- The company completed its previous to sell either of those businesses. ern alternative to everyday body care.” ance at Express and would like to em- $100 million share repurchase program That got reaffirmed in the annual re- ● C. O. Bigelow, Limited’s take on a phasize that we are very committed to re- and has authorized an additional $100 port letter from Wexner, who wrote: 21st Century apothecary, plans to open turning the brand to better perform- million share repurchase. “Some have suggested to me that we six stores in September and October in ance,” Schlesinger said. “The Express Wexner kept the spotlight on Victoria’s should think about selling both of them. Chicago’s Water Tower Place and the team, with significant input from Jay Secret and its subbrand, Pink, and bright Let me be crystal clear: Express and Hawthorne and Woodfield malls; Margolis and the rest of the executive earnings news for Limited Stores. The in- Limited are not for sale. They both have Boston’s Copley Place and suburban committee, are working feverishly to troduction of the IPEX bra “will probably significant growth opportunities.” Northshore mall, and in Garden State move the business ahead.” be a major volume and income generator Apparently, there’s a bigger opportu- Plaza in Paramus, N.J. The prototype de- Margolis, former president of Reebok, for Victoria’s Secret” and the in-store nity at Pink, the more youthful, casual buted in the Easton Town Center near was hired as group president of apparel brand Pink is being expanded after a suc- lingerie line launched at VS stores over a Columbus. As Bigelow rolls out, the key in February, as part of a management re- cessful fall launch throughout Victoria’s year ago. Schlesinger said this fall Pink is to maintain differentiation from BBW structuring. Secret stores and will emerge as its own will test accessories, sportswear, denim, stores and customers. Paul Raffin, president of Express, store in 2006, Wexner said. and “pickups” at the cash register in 40 Last week, Limited bought Slatkin & added that a strategy of emphasizing Victoria’s Secret and Bath & Body “solution” VS stores as a prelude to open- Co., a force in the home fragrance market. wear-to-work and trading up has not Works account for 70 percent of the sales ing Pink stores. In-store marketing ideas “The integration will happen very quickly worked. “We got fashion wrong, we drift- for Limited Brands, which now considers will be tested, too. beginning this week,’’ Fiske said. “We’ve ed older, we drifted more expensive, and already mapped out ways this company in fact alienated a large percentage of Victoria’s Secret, above, saw will be integrated into ours. We already our total customers.” operating income increase by $6.2 have been working with Harry Slatkin He added, “Wear-to-work can in fact million, while comps at Express [founder and president] on a consulting be young and sexy. Wear-to-work and ca- declined 21 percent. basis. We will hit the ground running with sual balance is the key to effective repo- his ability to contribute a wealth of ideas sitioning. We were getting too old, with a to the home fragrance business.” lack of excitement and sexiness, and just At Express, comps fell 21 percent and turned people off.” He added, “We’re had a higher markdown rate, Kenneth pragmatic about reducing color and pat- Venner, chief information officer, said on tern and focusing on black and neutrals. the call. “Growth continued in pants but In other divisions, VS Stores was was more than offset by declines in casu- roughly flat against a strong year-ago per- al bottoms and knit tops,” Venner said. formance, and fell below corporate ex- “Selling on crop pants in the first quarter pectations. VS Direct sales rose 10 per- was well below our expectations, driven cent, with strength in bras, swimwear, by color and fit issues. We expect that the woven and knit tops. Internet continues second quarter will continue to be chal- to grow as a percent of sales. VS Beauty, lenging for Express, although we are which operates at three U.K. airports, is doing everything we can to optimize mar- “actively” considering expansion into gins. Our priorities are clearing through Germany and Brazil. underperforming merchandise and fix- BBW rose 5 percent, driven by prod- ing our fashion issues by the fall season.” uct introduction. Emme Kozloff, an analyst with Sanford — With contributions from Bernstein & Co., noted in a report that the Brent Wilder, Columbus, Ohio WWD, TUESDAY, MAY 17, 2005 13 WWD.COM Simmons Deposition Not Fazing Kellwood Inter Parfums Bolstering Prestige Lineup NEW YORK — Kellwood Co. is standing be- By Amy S. Choi net sales guidance of $280 million for a high level of product launches in the hind Russell Simmons. 2005, a 19 percent increase from 2004. first quarter of 2004, compared with a According to a published report Monday, NEW YORK — An aggressive new product Net income is expected to reach $15.8 later schedule of launches in 2005. Simmons was quoted in a civil deposition pipeline for Inter Parfums Inc. in 2006 in- million, or 77 cents a diluted share. Beiersdorf ’s consumer division in- that he falsely stated his company’s volume cludes new women’s fragrance launches Although the lion’s share of the compa- cludes the skin care brands Nivea, Eu- “to mislead the public” as a way to develop for Lanvin and Christian Lacroix, and ny’s business is in prestige products and cerin, La Prairie, Juvena, Marlies Möller, an image for his company. When he ap- men’s launches for S.T. mass continues to de- Labello, Florena and others, as well as peared on CNBC in February 2003, he said Dupont, Nickel and Paul cline, Inter Parfums ex- bandages under the Hansaplast, Curad, Phat Fashions was doing upward of $350 Smith. The company also BEAUTY BEAT ecutives said they have Curitas and Elastoplast names. million, when in fact, his revenue for 2002 will roll out a fifth Bur- no intention of exiting By region, sales in Europe fell 0.4 per- totaled $14.3 million. Simmons gave the berry fragrance collection for both men the soft market. cent to 746 million euros when adjusted deposition as part of a lawsuit involving a and women. “Even though the mass business is rel- for currency effects, or $988.7 million. longtime business partner. Later this year, the company also atively small, the amount and the number Sales in Germany fell 3.3 percent. Sales in Kellwood acquired Phat Fashions in plans to launch Tumulte by Christian La- of products that we push through the the Americas fell 3.6 percent, but grew 5 January 2004 for $140 million in cash, plus croix and Arpège Pour Homme by Lan- channel is tremendous, and it does give percent in Africa, Asia and Australia. significant incentives for Simmons and his vin. It will release a limited edition of us quite a bit of economy of scale when it Beiersdorf ’s prestige Juvena/La Prairie wife, Kimora Lee, creative director of Baby Burberry Brit Gold for holiday. comes to purchasing bottles and things Group had double-digit sales gains. Phat, based on the brands’ future growth. The new launches should aid the com- like that,” Russell Greenberg, chief finan- “Even in a saturated market like Ger- “All the conversations Kellwood had with pany in building its concentration of pres- cial officer and executive vice president, many, new products will generate growth Russell have been accurate as it relates to tige products, which account for 88 per- said on a conference call with analysts. for Beiersdorf,” said Rolf Kunisch, the the numbers,” said Donna Weaver, vice cent of its sales. Inter Parfums’ net sales “There are some savings that pass over to firm’s chief executive, who is retiring this president of corporate communications for rose 22 percent at the end of the first the prestige side of our business. There is week and being succeeded by Thomas- Kellwood Co. “Our relationship and experi- quarter this year to $71.1 million from absolutely no plan to exit at this point.” Bernd Quaas. “New launches are target- ence with Russell has been positive and $58.4 million, excluding the benefits of ed from the second quarter on, including strong. Kellwood conducted an exhaustive currency exchange. The geographic roll- Nivea Sun with new sun protection fac- due diligence examination of Phat Fashions out of Burberry Brit for Men and the ex- Beiersdorf Brands Up in Qtr. tor, Nivea Beauté with a new volume prior to the purchase. The price was appro- pansion of the Burberry Brit Red distri- BERLIN — Beiersdorf ’s branded con- mascara, Nivea Vital with soja proteins, 8 priate for the size of the business and busi- bution contributed to roughly 40 percent sumer division improved operating x 4 with Fresh Energy and Eucerin with ness opportunities.” of the sales gain in the quarter. earnings by 4.2 percent in the first quar- Anti-Redness.” Weaver added that Phat Fashions rev- Net income for the company dropped ter of 2005, whereas consumer sales Beiersdorf lowered its forecast for the enue was $500 million at retail when the 7.8 percent to $4.4 million, or 22 cents a were flat for the period ended March 31. year and is projecting consumer sales to firm was purchased and has generated $750 diluted share, from $4.8 million, or 23 Earnings before interest and taxes rose “grow slightly stronger than in 2004,” with million in retail sales for the last 12 months. cents. Selling, general and administrative to 129 million euros, or $171 million. All improved EBIT margins. “Business is doing well. The brand is ex- expenses nearly doubled in the quarter, dollar figures are converted from the euro Group sales, which include the Tesa ad- panding domestically with several new li- with royalty expenses up to $7.7 million at average exchange rates. Sales reached hesives division, were expected to be censees and internationally in Spain, the from $3.4 million in the year prior. The 995 million euros, or $1.32 billion, though “clearly ahead” of last year, but are now Middle East and Far East where we contin- company also spent $11.1 million in pro- when adjusted for currency effects, con- projected to reach last year’s levels, with ue to add licensees and international part- motion and advertising in the first quar- sumer sales rose 0.7 percent for the peri- an EBIT margin of about 11 percent and ners,” she said. ter, up from $4.6 million in the year prior. od, Beiersdorf said. The company also return on sales after tax of 7 percent. —Lauren DeCarlo Inter Parfums maintained its earlier noted that sales levels were influenced by — Melissa Drier

We mourn the passing of our beloved friend and partner, Sy Stewart. Sy left behind many valuable lessons on life and friendship which we lovingly refer to as “Sy-Isms”. The following are just a few:

• Take advantage of every advantage • There are those that read history and those that make it • You don’t have to start big; you have to start right • Mediocrity emerges in good times, greatness • If you love what you do, you will never work a emerges in bad times day in your life • If you don’t know where you are going then you • If you plan your work, you can work your plan are there

• No one can make you feel inferior without your • A wise man spends money, a fool wastes it consent • A newspaper can’t sell unless it tells news, a fashion • An idea is only as good as its execution retailer can’t excel without a continuity of newness

•You can’t build a business on orders but will on reorders Sy Stewart 1925 – 2005 Sy’s vision, kindness and generosity touched so many of us. His memory will live on in our hearts forever.

Much love, James Mitarotonda And all of Sy’s friends at The Barington Capital Group, L.P. 14 WWD, TUESDAY, MAY 17, 2005

Production Coordinator Established co. looking for Production Accounts Receivable/Chargeback Analyst Coordinator of knit and woven sports- wear loungewear and sleepwear. Duties Major Apparel Company searching for a seasoned Collection/ include issuing PO’s, grading & specs, Chargeback Analyst. Ideal candidate must possess 5+ years sample tracking, shipment tracking, scheduling, 1st sample & top approval. Cash For Retail Stock & Closeouts. experience within the apparel industry. Applicant should have Minimum of 3-5 years experience. No Lot Too Big or Too Small. expertise in the management and handling of heavy chargeback Please email: [email protected] Call CLOTHES-OUT: or Fax: (212) 683-6598 (937) 898-2975 volume, customer calls, and various types of vendor allowances. Strong knowledge of mass merchants and major retailers a must coupled with excellent communication and organizational Production Coordinator Ladies Knit Co. seeks organized, detail- skills along with the basic understanding of accounting. oriented person to handle & track all prod’n. issues from order receipt to final We offer competitive salary and benefits including 401k plan shipment. Min. 5-7 years exp. in design and healthcare coverage. For immediate consideration, please &prod’n. Tech design & computer skills e-mail your resume along with your salary requirements to: req’d. Compensation commensurate w/ exp. Please Fax or E-mail resumes to: [email protected] 212-764-0704 / [email protected] Only qualified candidates will be contacted Production ASIA SOURCING & INSPECTING DESIGNERS Planner Let us do your sourcing for you! *Sr Dsgnr-New Div Girls 7-16 $80-110K Leading Intimate Apparel Company Coordinator(s) Cambodia, Ethiopia, China, S. Africa Young Edgy Look. Asian A+. Better Mkt located in Secaucus, NJ seeks experi- Responsible for conducting fittings, 37th St. 25 windows 7000 ft. $14.00 Wovens, AQL 4.0. *ASSOC DESIGNER-Missy Wovens $50-60K enced Planner to analyze and forecast creating garment specifications & 5500 ft. Terrace- Views- $20.00 Email: asiasourcing.comcast.net Moderate Sportswear. Illust a Must. inventory needs for a multi-million dollar approving graded specs for production. Showrooms Bwy & 7th- sublet- move in *DESIGNER ASSISTS $35-50K business. Major job functions include: Aswell as correspond with overseas Prime Manhattan Re Jon 212-268-8043 BUYER Flat Sketching & Design Ability factories on garment detail. Must be Off-price apparel buyer & seller wanted *DESIGNER Dress & Tops $90-110K •Creating and maintaining unit computer literate. 35–45K. Circular Knit Fabrics for wholesale men’s, ladies & children’s Email resumes: [email protected] Get into the ....HOT.... fashion. Vertical Better Bridge sales/inventory plans by style and by wear co. Must have contacts of Domestic [email protected] Call 212-947-3400 product category ULTRA-TEX - a Montreal based & oversea’s suppliers. Contact in strict 85 Mercer Street - SOHO vertical integrated fabric company - • Generating and presenting RETAIL 1,200 sq. ft. w/high ceiling. Retail Space. confidence: E-mail: [email protected] with offices in New York - is able to Call (212) 725-0100 Fax: (212) 725-0151 weekly/monthly sales/inventory reports Store Manager Dumann Realty (212) 505-6300 supply all your circular knit require- Designer •Creating seasonal and yearly financial www.dumann.com ments. Be it stretchy or plain, man plans and forecasts SARASOTA, FLORIDA made, natural or branded fibers, with CAD artist $45-50K. Current experi- Urban Sportswear line • Working with production team to Nationally recognized luxury specialty regular or specialized finishing. retailer with top tier designer brands ence in Nedgraphics or U4IA required. Well established co. seeks a creative men’s ensure a smooth flow of product to ULTRA’S quality dedicated team designer with a minimum of 2 years for men & women seeking focused & Midtown Co. Strong in prints. Call support sales For Space in Garment Center awaits your orders. Check out our 973-564-9236 JARAL FASHION AGCY experience. Please forward all replies to: motivated SALES MANAGER. Requires expanding range of ...HOT... fabrics. Box#M 1039 • Working with the distribution team sales, management & merchandising Helmsley-Spear, Inc. Call today at 514-326-4995 or c/o Fairchild Publications to ensure on time shipment of product experience with designer brands in cli- 212-880-0414 entele driven environment. Base + profit www.Ultra-Tex.com COMPUTER P ATMAKER 7 West 34th Street, 4th Fl Successful candidate will possess the New York, NY 10001 commission, 401K, health care & vacation. Gerber PDS $80K/Lectra $135K following: Please fax resume to: (941) 388-2949 or [email protected]; Call: 212-947-3400 Email: [email protected] Search For Space In Garment Center PATTERN/SAMPLES • Minimum 4 years retail or manufac Showroom/Office/Retail - no fee Reliable. High quality. Low cost. Fast turing planning experience, preferably www.midcomre.com work. Small/ Lrg production 212-629-4808 DATA ENTRY FABRIC R&D $70-85K with mid-tier or mass-market retailers Senior Customer Or Call Paul 212 947-5500 X 100 Apparel firm in Elizabeth, NJ seeks a Must Have Asian Market Experience • Superior computer proficiency, PATTERNS, SAMPLES, bright, detail oriented individual to work [email protected] Call 212-947-3400 specifically Microsoft Excel Fulfillment Manager Showrooms & Lofts in our data entry/order processing dept. • Merchandise flow and product delivery Fast paced Junior Sportswear Co seeks Must have min. of 2 yrs. experience in knowledge an experienced applicant to handle or- BWAY 7TH AVE SIDE STREETS PRODUCTIONS der mgmt/EDI, manage inventory, al- All lines, Any styles. Fine Fast Service. apparel industry. Duties include: EDI, or- • Proven problem-solving skills Great ’New’ Office Space Avail der entry, invoicing, etc. Small, friendly, location and distribution process. Must ADAMS & CO. 212-679-5500 Call Sherry 212-719-0622. FASHION FACULTY smoke free office. Salary commensurate Private College seeks faculty for • Strong follow-through skills and execute order entry, customer set-up with experience. A great opportunity! Fashion Program. Ph.D Degree preferred, ability to work independently and EDI transactions. Must be able to Please fax or email resume Attn: Lisa M Master’s degree required, along with • Strong communication skills and coordinate with int/exp customers and PATTERNS, SAMPLES, (908) 352-6219 / [email protected] significant industry experience. Knowl- ability to present analytical reports supply chain partners. Fax resume to: PRODUCTIONS edge of textiles, product development, to Management and to Buyers 212-764-0352 buying, visual merchandising, • Ability to travel domestically and Full servcie shop to the trade. DESIGN Fine fast work. 212-869-2699. merchandise planning & control. internationally Sewing/Couture Send resume to: Fashion Search, ASSISTANT DESIGNER Excellent salary and benefit pkg. For Must be exp’d working w/ high quality Established, fast-paced private label co. Berkeley College, 44 Rifle Camp Road, fabrics, hectic deadlines. Emphasis on 530 7th Avenue West Paterson, New Jersey 07424. immediate consideration, please is looking to fill 2 entry level assistant forward your resume to: custom evening wear. Team player. Architect designed 6600 sq. ft. design positions. Qualified candidates Fax: 973-278-0080 or Please call (212) 869-2296 showroom. High-end finishes through Email: [email protected] Email: [email protected] must have a degree in Fashion Design, Fax: 201-392-9608 out. Modern. Custom fixtures available. be proficient in Illustrator & Photoshop, Equal Opportunity Employment Available June 01, 2005 and be able to flat sketch and illustrate. SOURCING Contact ROBERT @ (646) 209-8833 Please fax resume attn: MAS (212) 203-1856 Prod Developer $50-60K Major N.Y.C. Ladies’ Sportswear Mfr. Graphic Designer Missy Sportswear. Work w/Private seeks an individual w/minimum 5 years Childrens Co. seeks graphic designer. Label Customers. Fabric Knldeg nec exp. sourcing garments in Asia & Central Repeats in production packaging. [email protected] 212-947-3400 America. Strong negotiating skills & Accessories- (Socks-Gloves-Hats-etc) Design Assistant NY LOCATION. flexible travel availability a must. Please 1) Asst. Designer 2) Designer 3) Artists Fast growing import ladies outerwear FAX PATTI 973-812-1731 Fax resume to Shari at: 212-221-0571 4) Technicals & Assts 5) Production Assts. & sportswear is looking for a highly Call (212) 643-8090 or Fax 643-8127 (agcy) Prod’n Coord $60K motivated, organized Design Assistant Wovens, Knits, Better Sportswear Mfr for an entry level position in a super Sweater VP $100-175K ADMIN ASST / BUYER’S CLERICAL / Strong Cutting Tickets, Inventory & fast paced, exciting design office. Flat Spread Sheet Exp. BILINGUAL SPANISH sketching, specs & knowledge of garment KNITWEAR DESIGNER Prod’n Mgr Sweater $85K Bright candidate for NY based buying Leading missy sportswear manufacture r [email protected] Source, Load, Factories, Pricing construction a must. Candidates must Call 212-947-3400 ofc. Data entry, order mgmt, heavy have excellent communication skills & is looking for an experienced designer. Costing and Quotas comm w/ stores & vendors. Must have follow-up, must be a self starter & must Must have proven skills in creating [email protected] Call 212-947-3400 apparel industry exp, computer skills, possess the ability to work well under updated knit tops and 2 piece dressing. AS400 a plus. Fax: 212-947-8142. pressure & multi-task for different labels A strong color sense and talent to Production $125K++ & accounts. Computer skills (Excel/ WP) interepret current trends is needed. Sample Room MGR TD Sweater/ ADMIN SINCE 1967 necessary with graphic design programs Knowledge of knit fabric market a Work w/Designers & PattMkrs. Run (Illustrator/Photoshop) preferred. Know- must. A good chance to grow in an ex- Sample Rm. Work w/Overseas factories , Knits/Wovens W-I-N-S-T-O-N panding well established company for *SWEATERS-TD Bet Bridge $55-70K ledge of Cantonese/Mandarin preferred liasion w/ all depts. Piecegoods, imports, *FULLY Fashion Knit TD $65-70K APPAREL STAFFING but not necessary. This position gives the right candidate. warehouse & Q/A. Strong Production DESIGN * SALES * MERCH Fax resumes to Sandy: 212-768-3588 *Sweater Cut/Sew Knit Spec Tech $35-45K the right candidate the opportunity to exp a must. Time & Action. *SWEATER TD Walmart/Sears $55-70K ADMIN * TECH * PRODUCTION be involved in all aspects of an import [email protected] 212-947-3400 (212) 557-5000 F:(212) 986-8437 *WOVENS TD-Better/Bridge $70-80K business. Only goal oriented, results *WOVENS Jr Top TD $65K driven team players need apply. Marketing Development *WOVENS Spec Tech Bet Sprtwr $60K Please fax resume + cover letter to: Production Assistant *WOVENS TD-Jeans/Bottoms $50-70K Artist/Designer (212) 221-3169 Layette-Infant-Newborn. No computer Manager For color submittals. Well established *FOUNDATION TD-Swimwear $60-$85K skills necessary. NY Location. This position is to promote and sell apparel mfr & importer seeks an *SPEC TECH-Wovens $35-45K Fax Patti 973-812-1731 DESIGN organic cotton fabric and / or garment experienced individual to do color [email protected] Call 212-947-3400 to branded names, retailers as well as approvals on woven and knits using Assistant Jewelry Designer introducing organic cotton products. the Data Color spectrometer. Lab dips New fashion jewelry company seeking Using organic cotton is a trend, and and shade bands to be submitted to TECH DESIGNER assistant jewelry designer, with 2 has a big potential market. Ideal can- Wal-Mart electronically. Must be Fast growing Missy / Contemporary years experience working in accessory didate must be enthusiastic, have good organized and prepared to work in this Knit House seeks experienced & company. Sample making and basic connection, & able to present organic fast paced environment. Computer highly organized tech designer. Strong jewelry skills a must. 40-60k. collection to brands / retailers. experience and knowledge of the data tech knowledge, flat sketching & Fax Resume to: 212-398-0030 or Fax resume to 212-631-0689 color equipment is helpful. Good start- computer literate. Conduct fittings E-mail: [email protected] ing salary and benefits. Fax resume to: with ability to translate changes Mark Rubin at 212-444-6019 necessary to specification. 2 to 5 years ARTIST NEEDED experience. Great Co. atmosphere! FASHION RESUME Graphic Artist needed for Babywear DESIGN ASSISTANT MENSWEAR (5) $$$$$$ Great benefits! Salary based on Co. to work w/ designers to create Major bridge label seeks an organized, *JEANS TD (2) $80K Production Assistant experience. Fax resume to: 212-221-1353 Staff Thru Executive-Wholesale/Retail artwork for prints, appliques & Free Evaluation - Lifetime Updates motivated, creative and experienced *WOVENS TD (2) $60-75K Importer seeks organized detail orient- embroideries, presentation boards, design assistant to be part of a winning *UNDERWEAR TD $55K ed self-starter to assist in all aspects of GILBERT CAREER RESUMES and prod. pkg. Photoshop + Illustrator (800)967-3846 amex/mc/visa team. Must have exp. working with in- [email protected] overseas production. Duties include TECH DESIGNER skills a must. Fast paced environment. house sample room and knowledge of Call 212-947-3400 communicating w/ overseas office, spec fashionresumes.com Must be able to meet deadlines. PRODUCTION fashioncareercenter.com fabric market; exp. with beading, trim sheet preparation & order development. Fax resume to 212-695-0203. Email: and embroidery from China and India. Must have excellent follow-up skills, Fast growing Missy cut & sew [email protected] Fax resume & salary reqs attn: HR Dept MS Word & Excel knowledge. Technical knitwear Co. seeks production technical 212-643-2083 garment knowledge a plus. Min 3 yrs. designer. Responsibilities include cre- MERCHANDISING exp. Fax resume: 212-594-2227 ating 1st spec. & tech. sketches. Proc- Asst Art Director $$$$$ essing sample requests. Tracking & Help Direct Art Room, Hand Vice President approving lab dips on order. Must Painters, CAD Artists, Colorists, DESIGNER $85K+ Well Est’d Men’s & Boy’s Sport & Dress possess good communication and Stylists and Forecastors Womens Runway Designer Sweaters wear co. seeks top level person w/ knowl- Production Assistant follow up skills. Proficient in Excel [email protected] Call 212-947-3400 [email protected] edge & experience. Must be familiar w/ Ladies Garment Importer is seeking a and Photoshop. Great Co. atmosphere! Unique Sales Opportunity accounts like Wal-Mart, Target, J.C. detailed applicant with knowledge of Great benefits! Salary based on Partnership option with no investment! Bookkeeper/ Penney, & Kohl’s. Great growth oppor- Excel and garment construction. Great experience. Fax resume to: 212-221-1353 Well est’d. co. with successful lines and DESIGNER tunity! Please fax or email resume: oppty for growth! Fax resume Attn: Stu broad customer base looking for National Asst. to President Growing accessories co. seeks highly Attn: Steven 212-921-8369 Sales Representative with experience Fast growing Madison Ave. Lingerie Co. motivated designer w/license & acces- 212-629-3506 Technical Designer and relationships in fashion forward seeks an individual to handle all A/R and sories market exp. Must be team player [email protected] OPENINGS COSTUME JEWELRY. Excellent product A/P, payroll, factor statements, unauthor- &proficient in Illustrator/Photoshop. Production Assistant *Spec. Techn-Dsgnr Label Knit Tops development in place with support staff ized deduction, etc. Individual will also Specing skills required. Min. of 3 yrs Nanette Lepore seeks indiv. with *Techn. Dsgnr-Suit, Jackets, Pants, Skirts throughout Asia. If you’re tired of work- assist President with all related business. exp. Work in a team oriented environ- knowledge of garment construction *Sr. Techn. Dsgnr - Sweaters & C.N.S Knits ing for someone else and want to secure Position is based in Midtown Manhattan. ment w/ an excellent oppty for growth. Phila Patternmkr $$$$$ and specs. Needs computer skills. 2 *Sr. Techn. Designer - C.N.S. Knits Exp your future, call or fax resume to: Please fax resume to Florida office: Email: [email protected] [email protected] yrs. exp. in fashion industry a must! www.apparelstaffing.com or Tel: 781-784-4300 / Fax: 781-784-4304 239-561-5931 or FAX 212.947.7968 Call 212-947-3400 Fax resume: 212-947-5651 Fax resume to: (212) 302-1161 WWD, TUESDAY, MAY 17, 2005 15 WWD.COM Mossimo Profits Onward Acquires U.K.’s Joseph Jump 53 Percent By Samantha Conti “They feel they can expand the As reported, in November Compagnie brand aggressively in the Japanese mar- Nationale à Portefeuille, the investment NEW YORK — Mossimo Inc. reported LONDON — Onward Kashiyama, the ket, and they’re also looking to grow it company that held a 54 percent stake in a 53 percent increase in first-quarter Tokyo-based fashion manufacturer, re- in and China,” said an in- Joseph, gave a mandate to BNP Paribas profits and a 39 percent rise in rev- tailer and distributor, has purchased dustry source. to conduct a strategic review, with the enues, due to demand for its fashions 100 percent of Joseph in a deal valuing Meanwhile, the statement went on to aim of selling the company. at discount retailer Target. the U.K. retailer at $258 million, or 140 say that Joseph’s sales increased 3 per- In mid-February, the financial docu- In the three months ended March million pounds. cent to $129 million, or 70.3 million ments went out to potential bidders, 31, the Santa Monica, Calif.-based “We have known Onward Kashiyama pounds, in the fiscal year ended in with industry sources estimating the company earned $1.8 million, or 12 for many years as our men’s wear partner March. value of the company at $184 million, or cents a share, versus $1.2 million, or 8 in Japan, and the combination offers sig- It added that EBITDA, or earnings 100 million pounds. cents, a year ago. Analysts, however, nificant advantages to Joseph, especially had been expecting a profit of 13 cents in respect of expansion in the Far East,” in the latest quarter. said Joseph’s managing director Thierry Net revenues increased to $8.7 mil- Letrilliart in a statement Monday. We have known Onward Kashiyama for lion from $6.2 million a year ago. Joseph is one of the U.K.’s leading many“ years as our men’s wear partner in “Our results for the first quarter designer-label retailers and a whole- were primarily driven by improve- saler of its own private label. Founded Japan, and the combination offers significant ments in our Target business, partially in the Seventies by Joseph Ettedgui, it offset by challenges at Modern has 63 stores, mainly in the U.K. and advantages to Joseph. Amusement and Zellers,” said Edwin continental Europe. ” Lewis, president and co-chief execu- Onward owns such labels as ICB, or — Thierry Letrilliart, Joseph tive officer of Mossimo, in a Monday International Concept Brand, and has a statement, released after the close of stake in the Florence-based clothing man- before interest, taxes, depreciation and It is unclear whether Joseph and his the stock market. “We are working ufacturer Gibò. It also distributes clothing amortization, gained 34 percent to $24 brother Franklin, who sold their minori- hard to fine-tune our merchandising for designers including Michael Kors, million, or 13.3 million pounds. ty stakes in the company to Onward, will and distribution strategies, and we re- Calvin Klein and Jean Paul Gaultier. The company said the current fiscal continue to be involved in the day-to-day main focused on executing our busi- Industry sources said the sale came at year has started with a bang: Retail running of the business. A spokesman ness plan.” the end of an “extremely competitive” sales are “substantially ahead” of last for Joseph did not return phone calls Shares of Mossimo closed at $4.26, auction and that the new owners are keen year’s, and the autumn wholesale order Monday. unchanged in Monday’s Nasdaq session. on tapping Joseph’s potential for interna- book is up 12 percent up, compared — With contributions from — Meredith Derby tional growth, especially in the Far East. with last year. Koji Hirano, Tokyo

Technical Designer SALES PRO Westchester based Sportswear Mfr Off-price wholesaler of children’s, seeks indiv w/ both knits and woven women’s & men’s clothing looking for bottom exp. Person must have knowl- SALESPERSON - USA an experienced Sales Pro, NY based. edge of garment construction, patterns Must know retailers for mass market and specing ability. Daily correspond- Rentex Inc., North America’s leading producer of high quality circular & Account Executive Major juvenile bedding and décor man- & branded goods. Please send resume: Major textile Fabric line ence w/ factories and customers as you warp knit fabrics seeks an experienced SALESPERSON / SALES MANAGER . Rentex, Briara Trading Co., Fax: (610) 828-1799 wanted for sales to the outerwear follow samples from 1st fit thru prod’n. ufacturer seeks experienced account established 41 years ago, operates state of the art knitting, dyeing and finish- executive for our licensed division or Email: [email protected] markets. Excellent contacts and years Please fax your resume to 914-328-7941 No telephone calls please. of exp.!! or E-mail [email protected] (Disney, Warner Bros., etc). Must be a ing facilities. Rentex produces the broadest range of circular / warp knit highly motivated, detail oriented team Box#M 1038 fabrics and sells to all segments of the Apparel & Non-Apparel Markets. player. Fax resume to 212-643-0684. c/o Fairchild Publications Technical Designer 7 West 34th Street, 4th Fl Womens Outerwear and Sportswear The suitable candidate will have at least 5 years experience selling fabrics as well a TIBI New York, NY 10001 Manufacturer seeks a technical de- Denim Salesperson Leading young designer company, Tibi, signer. Work with design, production sound technical base. Ideally, he or she will have an established track record in Looking for salesperson with experi- is looking for an ACCOUNT MANAGER and customer QA departments. 2-3 yrs selling to end users in multiple apparel and non-apparel market segments. ence only in denim fashion. Junior / for their Soho showroom. Canidate must experience preferred. Email resume: kids / missy / large sizes. Call 917-328- be enthusiastic, have contemporary sales [email protected] or The successful candidate will have a keen entrepreneurial sense and an 2361 or send by fax to: 212-869-6882. experience, and existing relationships fax to 646-435-7412 ability to work with all levels of the organization. with boutique and specialty department Dresses & Sportswear stores. Please Fax resume and salary Warehouse Manager This is an ideal position for someone wanting to build a career with a Est’d. Importer seeks exp’d. & aggressive requirements to: 212-966-2961 NJ location. Great oppty for self-starter dynamic and future oriented company. Please Fax resumes to the Sales Pro. Must have contacts with with warehouse exp! Must be computer attention of Jay Derstenfeld at: 514-735-5253 Major Chains & Private Labels. Please literate, have knowledge of EDI, ASN, Fax resume to: 212-944-3604 V.P. of Sales and allocations. Fax resume attn: Jack Well Est’d boyswear Co., holding a ma- 212-921-8369 Knitwear Co. jor brand is seeking a top level person Women’s Contemporary Sportswear Seeking a strong, motivated, and detail w/knowledge & experience in J.C. Manufacturer seeking to fill the oriented Account Exec w/existing rela- Penney, Kohl’s, and all mid tier level Knits, Denim, Outerwear following positions: tionships and 2+ years experience selling accounts. Great opportunity! Please Specialty & Mid-tier Stores. Some travel fax or email resume to: Garment mfr in knits, denim, and A. Knitwear Sample Development req’d. E-mail resume & salary require- Attn: Valerie (212) 629-3506 outerwear w/ facilities in Pakistan, Position requires a highly motivated SALES EXECUTIVE [email protected] organized individual with experience. ments to: [email protected] India, UAE, Jordan, China, & T-shirt Must be detail oriented with excellent Contemporary Sweaters/Knitted Tops (List "SALES POSITION" in header) in Central America seeks sales follow up skills. A knowledge of Can- person with exp in selling to tonese a plus, but not required. Established Branded Contemporary Manufacturer has an ex- Los Angeles Showroom Young contemporary & missy sales importers & private labels. Com- B. Assistant Tech Designer citing opportunity for a self starter to run our NY showroom. Qualified candidates must have a min. of 5 years experience representative wanted for our LA mission only. Office is in NYC. 3 years experience in Women’s Sweaters. showroom. Must have experience with Call 212-629-1078 or Must be organized, skilled and able to in sales and merchandising, strong relationships with major & dept stores/chain stores. sketch. Pattern making background Fax resume to 213-623-4596 E-mail: [email protected] preferred. Computer literate. better specialty stores, and be able to assemble and run the Luxury French Store road sales force. If you are interested in joining a dynamic on Madison Ave seeks Sales Associ- For confidential consideration please PERSONAL SHOPPER ate. Candidate must possess strong E-mail us at: [email protected] company we want to hear from you! Please email resume to: ROAD REPS WANTED [email protected] Women’s Fashion Clothing Company communication skills, be energetic and Leading European Lingerie & Swimwear Please indicate which position you are seeks a personal shopper with a strong provide excellent customer service. Mfr. is looking for independent reps to applying for A. or B. sales background and super service expe- Salary + Commission + Benefits sell lines to dept. and specialty stores. rience. Must have excellent phone and Please fax resume: (212) 421-9094 Most geographic territories available. writing skills. Also must have computer Fax resume to: 954-730-8723 exp. and laptop to maintain customer book and correspondence. Base and Luxury Lingerie Store commission as sales exceed goals. Email Resume to: [email protected] Store Manager and SALES EXECUTIVE P/T & F/T Sales Staff Missy woven shirts mfr. seeks sales pro Luxury lingerie store, located in the for NY showroom. Must have strong dept. Meatpacking District, seeks motivated and chain store contacts. Fax resume to: candidates to build a brand which is committed to provide superior prod- (201) 330-0002 ucts, exceptional customer service and aquality store experience. Qualified SALES EXECUTIVE individuals must be eager and enthusi- Women’s contemporary sportswear co. astic with excellent communication is seeking a highly motivated & exp’d skills. Currently seeking store mgr Sales Exec. with ties to specialty & with outstanding proven sales skills, Quality Control Specialist better dept. stores. Excellent growth as well as full and part time sales staff. MIAMI BASED - Exp’d. individual with potential. Fax resume: (212) 354-6052 E-mail resume to: patternmaking background & ability to or E-mail: [email protected] [email protected] travel overseas. Call Leon @ 305-302-5134 AMERICA’S COTTON PRODUCERS AND TERS.IMPOR ® Registered Service Mark/Trademark of Cotton Incorporated. © Cotton Incorporated,05. 20 ppears ppears extremely extremely hile a new hile a new . •

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® into the attitudes and behaviors into the attitudes and behaviors that tap W of American consumers. article about these insights a every Thursday in WWD, an valuable database of these research articles can also be accessed at www.cottoninc.com/lsmarticles. New York New •

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TM 43,940 43,940 Cary NC In an effort to help those in the business In an effort to help those in the business better understand their customers, the Cotton Incorporated created Monitor, Lifestyle carefully compiled series carefully access to access Visit www.cottoninc.com Monitor Lifestyle the entire PHOTO BY ROBERT NICKELSBERG/GETTY IMAGES WWD Winners a domestic textile sector.domestic textile for theCentralAmerican Free Trade the whichhasdivided Agreement, ad out whethersafeguardswillevergoaway. Meanwhile, the Bush tofigure slapped freshquotasonChinalastweek,leavingtheindustry in Union soar, setbacksinbuilding nationshavesuffered African while China totheU.S.andEuropean and Indiaquotas. haveseen their imports whenthe 148-member Worldon Jan.1 Trade dropped Organization The rules ofinternational apparel trade and changed dramatically textile domestic textile sector.domestic textile for theCentralAmericanFree Trade the whichhasdivided Agreement, ad out whethersafeguardswillevergoaway. Meanwhile, the Bush tofigure slapped freshquotasonChinalastweek,leavingtheindustry in Union soar, setbacksinbuilding nationshavesuffered African while China totheU.S.andEuropean and Indiaquotas. haveseen their imports whenthe 148-member Worldon Jan.1 Trade dropped Organization The rules ofinternational apparel trade and changed dramatically textile dustries and U.S.manufacturing jobscontinuetobelost.ButtheU.S. dustries and U.S.manufacturing jobscontinuetobelost.ButtheU.S. ministration and U.S. importers look to garner congressional support looktogarnercongressional andU.S.importers ministration ministration and U.S. importers look to garner congressional support looktogarnercongressional andU.S.importers ministration SourcingHorizons nd Losers nd Losers SE CTION II 2 WWD, TUESDAY, MAY 17, 2005

SECTION II WWD.COM SOURCING HORIZONS CAFTA Debate Heats Up on the Hill

By Kristi Ellis vote against CAFTA, in the face of a mounting trade any amendments have to be approved by all of the deficit and widespread manufacturing job losses countries involved in the trade deal. WASHINGTON — MOMENTUM IS A RELATIVE often linked to the impact of trade. In a wrinkle that could have a negative impact, term in Washington, but it is one the White House Leaders of the House New Democrat Coalition — some of the Latin American leaders said late last has latched onto, as the debate over the Central moderate Democrats who often support free trade week they are not sold on whether to support the American Free Trade Agreement intensifies. agreements — have even taken a tough stance Bush administration’s proposed change. That doesn’t More than a year has passed since the U.S. com- against CAFTA, citing concerns for workers’ rights sit well with lawmakers seeking concrete commit- pleted negotiations with Guatemala, Nicaragua, and calling on the administration to renegotiate what ments on which to base their votes. Costa Rica, El Salvador, Honduras and the they feel is a flawed pact. Sen. Lindsey Graham (R., S.C.) said at a press con- Dominican Republic, but President Bush has not yet For the moment, the Bush administration has the ference last week it would be “irresponsible” to sent CAFTA to Congress, in large part because of textile vote in its crosshairs and is concentrating on move forward with a vote on CAFTA until the six strong opposition on the Hill, according to trade vet- lawmakers in Southeastern states, including the other signatory countries indicate whether they will erans. Carolinas and Georgia. support the change. House lawmakers are also con- The battle over CAFTA is expected to be one of Political maneuvering is going strong, as the ad- cerned about whether the commitments are attain- the most definitive trade fights in Congress since the ministration seeks to secure votes in the House. It re- able or enforceable. North American Free Trade Agreement was imple- cently dangled commitments to the National Council It is still difficult to gauge how House Textile mented in 1994, and the administration’s recent ef- of Textile Organizations, a key textile lobbying asso- Caucus members will weigh NCTO’s endorsement forts to bolster support for the agreement reflect the ciation, in exchange for its support of the deal, and in against the remaining industry opposition and whether one association’s support will be enough to swing key votes. Ultimately, the votes could come down to whether a lawmaker’s key constituents support or oppose the pact. Many House Republicans representing textile constituencies remain undecided, but a few are will- ing to go on the record opposing CAFTA. At the time the deal with NCTO was announced on May 10, Coble’s chief of staff, Ed McDonald, said the congressman would vote ‘no’ on the agreement if a vote were held that day, but he stressed Coble is still gathering the facts. Many textile firms in Coble’s district support CAFTA, sources said. “Congressman [Robin] Hayes (R., N.C.) is still con- cerned about the loopholes China can get around and the continued dumping of its cheap goods to the detriment of our domestic textile industry,” said Carolyn Hern, Coble’s communications director. “From what we understand, those loopholes have not been addressed in any deal that was made [with NCTO]. That is still a great concern for him.” Hern noted that nothing is “cut and dried” at this point. He added, “Other countries have to do what is best for their country, and at this point I’m not sure they are looking out for the U.S. textile industry.” Rep. John Spratt (D., S.C.), co-chair of the House Textile Caucus, said he is still opposed to CAFTA, de- spite the administration’s recent commitment on pocketings and linings. “That is a small one, and it is not enough for me to Central America’s close proximity to turn [in favor of] the deal,” he said in a phone inter- the U.S. is an advantage for trade. view. “I wonder how that will be policed.” Spratt assailed CAFTA’s textile and apparel rule MAP BY CORBIS MAP BY

tension between the White House and the Hill. so doing fractured textile industry lobbying, with the As the Bush administration kicked the pro-CAFTA American Manufacturing Trade Action Coalition and By passing CAFTA, we would campaign into high gear last week, opponents of the National Textile Association remaining opposed to “ trade pact galvanized efforts to block the deal. the accord. open up a market of 44 million President Bush stepped into the spotlight last week The stakes are high for both sides of the divided as he hosted the presidents of the six CAFTA partners, textile industry, which has lost hundreds of thou- consumers who already import who were on a lobbying blitz through the U.S. sands of jobs in the past decade. more of our goods and services “CAFTA brings benefits to all sides,” Bush said in The CAFTA region is the second-largest market a Rose Garden ceremony at the White House honor- for U.S. textiles and accounted for $4.2 billion in ex- than Australia or Brazil. ing the six presidents. ports in 2004. The region represented 22.5 percent of ” He said the deal would strengthen fledgling all U.S. textile exports. — President Bush democracies in the region and, conversely, level the The administration’s pledges to the textile indus- playing field for U.S. manufacturers, including tex- try will play a key factor in which way many lawmak- of origin, which allows numerous exceptions for for- tile producers. ers ultimately vote. Rep. Howard Coble (R., N.C.), co- eign fabric and yarn. “By passing CAFTA, we would open up a market chair of the House Textile Caucus, has slated a panel “The problem with those exceptions is they have of 44 million consumers who already import more of discussion for May 24 to discuss the pros and cons of not just weakened the rule of origin but they are dev- our goods and services than Australia or Brazil,” CAFTA for caucus members. The six-member panel ilishly difficult to police,” Spratt said, both on the Bush said in a speech. “And we would create incen- will include representatives from the government, U.S. side and in the region. tives for factories to stay in Central America and use NCTO and American Apparel & Footwear He also criticized the CAFTA countries’ “notori- American materials rather than relocate to Asia, Association — on the pro-CAFTA side — and execu- ous lack of transparency in their Customs’ opera- where they are more likely to use Asian materials.” tives from AMTAC, National Textile Association and tions, and consequently that makes the already atten- The textile industry has been considered one of UNITE HERE on the opposition. uated proposal thin as a reed. the remaining hurdles against CAFTA’s passage in At least one of the pledges to NCTO has raised “Those of us who have seen our textile industry the House, which is considered to wage the toughest concerns and could impact the potential support diminish and fade away look upon this as one of the battle. Other opponents include the sugar industry, among lawmakers. last stands,” Spratt said. faith-based groups and organized labor. The administration is seeking a modification to Rep. Sue Myrick (R., N.C.), on the other hand, said Blocs of House Republicans, including the Textile the negotiated accord to require that pocketing and many textile employers in her district have said they Caucus, which currently has about 80 members, have lining fabrics be supplied by the U.S. or the six signa- privately support CAFTA, and she is leaning toward joined scores of Democrats who have said they will tory countries in order to be exported duty-free, but supporting it. Lenzing Fibers111West 40thStreet, NewYork, NewYork 10018Tel 2129447815Fax7406 The NewAgeFiber TENCEL www.lenzing.com ® V Lenzing istheworldleadingcellulosefiberproducer ofLenzing Modal get hot,andawarmingeffect when it’s cold.TENCEL fibrils ofTENCEL 130% more vaporthancotton.TENCEL TENCEL Nano revolution intheworldoffashion Cellulose FiberTechnology W iscose orld Leaderin ® ® and TENCEL brings thedawnofanewageinnanotechnology. Thecontrolled nano ® are arrangedtocreate perfectmoisture management.Itabsorbs ® lyocell. ® has acoolingeffect whentemperatures ® , the naturalperformancefiber. ® , Lenzing INSIDE MANAGEMENT MOISTURE

Lenzing AG, A-4860 Lenzing, Austria 4 WWD, TUESDAY, MAY 17, 2005

SECTION II WWD.COM SOURCING HORIZONS

President Bush in the Rose Garden with presidents of the CAFTA countries. From left: Elias Antonio Saca of El Salvador, Abel Pacheco of Costa Rica, Enrique Bolanos of Nicaragua, Ricardo Maduro of Honduras, Oscar Berger of Guatemala and Leonel Fernandez of the Dominican Republic. PHOTO BY KYLE SAMPERTON KYLE PHOTO BY A Presidential Bid for Trade Pact By Evan Clark shore up shaky economic foundations. “CAFTA is ultimately about freedom and econom- On the tour were the leaders of the Central ic opportunity,” said U.S. Trade Representative WASHINGTON — THE STAKES OF THE CENTRAL American countries Costa Rica, El Salvador, Robert Portman, at the Chamber of Commerce event. American Free Trade Agreement are higher than Guatemala, Honduras and Nicaragua, as well as the “Violence and civil war were part of life in many just textiles and sugar — the two big U.S. constituen- Caribbean nation, the Dominican Republic. of these countries,” said Portman of the not-too-dis- cies that have opposed the agreement. “Approving DR-CAFTA will create new hope in tant past. “Now they want to strengthen the founda- Hanging in the balance are social structures and our nations,” President Leonel Fernandez of the tions of democracy. It is the opportunity of a lifetime. nascent democracies in Central America, said the Dominican Republic said in the wood-paneled Hall We must seize that opportunity.” presidents of the Latin American countries, who of Flags at the U.S. Chamber of Commerce last week. CAFTA builds a more permanent relationship that were in Washington last week pushing CAFTA. The event was part pep rally, part preamble to a companies can depend on, said Stephen Johnson, a The leaders made stops at 10 cities, Capitol Hill meeting with President Bush later in the week. senior policy analyst for Latin America at the and the White House, painting the agreement as a “Democracy up until now has not been able to de- Heritage Foundation. struggle to maintain democracy in the region and liver,” said Fernandez, noting that CAFTA is needed “It helps your neighbors be more prosperous at a to shore up the country’s fragile economy. time when competitive advantages are very slim,” said The U.S. market was initially opened to Johnson, pointing to the lower wages paid in Asia as the region by the Caribbean Basin compared with Central America. “They need some- Initiative, which promoted a switch from thing to be competitive, and if they’re not competitive agricultural exports to manufacturing. and businesses can’t function, then they’re going to be “Having this access to the U.S. has truly sending their unemployed to the United States.” transformed the nature of our economies,” Ed Gresser, trade policy director at the said Fernandez. Progressive Policy Institute, said countries in the re- That access expires in 2008, though, and gion, particularly the Dominican Republic, El CAFTA is needed to make permanent re- Salvador and Honduras, have become successful ciprocal trade possible, he said, acknowl- clothing exporters to the U.S. edging that the agreement is also a tough “They have used the clothing industry to really sell to farmers in the region who are help build up their societies,” he said, noting that scared of losing their jobs. permanent access as opposed to periodic reviews is “Your neighbor, Central America, needs important to the countries, especially given the as- CAFTA,” said Nicaraguan President Enrique cent of China as a manufacturing powerhouse. Bolanos. “I care for CAFTA because it’s good “They feel the environment is changing around for my country. It’s good for my people.” them, and it’s a pretty major thing they have at He pointed out that Nicaragua has an stake,” said Gresser. unemployment rate close to 40 percent The success of the CAFTA presidents’ lobbying ef- and lags other Central American coun- forts remain to be seen, but the Chamber’s senior tries economically. vice president for international affairs, Daniel Honduran President Ricardo Maduro Christman, was encouraged by the crowd last week, highlighted the importance of the agree- which included five of the six Latin American presi- ment at an earlier stop on the tour in Miami. dents, Commerce Department secretary Carlos Earlier this month, a small plane carry- Gutierrez, several congressmen, Portman and busi- ing Maduro lost power and crashed into ness leaders. the Atlantic Ocean near a beach in “We now have CAFTA critical mass,” Christman Honduras. As the plane fell, Maduro, ac- said. “Let’s take it across the goal line. We have a cording to a report in the Miami Herald, choice: two paths, two futures.” said his unfinished agenda ran though his If approved, the fragile economies of the Latin mind and CAFTA was at the top of the list. American countries taking part in CAFTA would get an The presidents have the backing of the economic boost from the more-open markets, he said. Bush administration, which is trying to “If CAFTA is defeated, hundreds of thousands of shore up support for the agreement in jobs will be lost,” he said, adding that the countries Congress. “will view it as a kick in the teeth.”

6 WWD, TUESDAY, MAY 17, 2005

SECTION II WWD.COM SOURCING HORIZONS U.S. Firms Face Export Barriers

By Kristi Ellis are more difficult to penetrate directly with invest- Foreign retailers are currently not allowed to open ment or exports,” citing China as an example. wholly owned ventures and must set up joint ventures WASHINGTON — THE FIGHT TO BREAK THROUGH Foreign companies can now produce goods in with local partners in India. trade barriers into new markets around the world is a China to sell to the Chinese market. Previously, foreign “India is similar to China,” Wyatt said. “When we decades-old story and one that still bewitches U.S. companies that manufactured in China had to have first went into China, we had to have local joint-ven- companies looking to pry open the door to untapped hard-to-obtain licenses to sell to the domestic market. ture partners. But China has since released those consumer markets. That barrier, coupled with China’s 30 percent duties, restrictions, and we can now own retail operations. Trade barriers are a U.S. exporter’s and retailer’s made it difficult for foreign brands to sell there. That has lifted a lot of restrictions on foreign retailers biggest headache. That’s why retailers and apparel In addition, China changed its internal distribu- and broadened the market in China.” exporters are pinning their hopes on the current round tion rules on Dec. 11, per its WTO commitments, and Wal-Mart, which operated 43 stores in China at the of global trade talks, which aim to significantly reduce foreign companies are now allowed to own their dis- end of 2004, plans to continue operating with joint- or completely eliminate tariffs and nontariff barriers. tribution centers and distribute goods produced out- venture partners in China this year and build an addi- The global trade talks under the auspices of the side of the country. tional 15 to 20 stores. World Trade Organization have limped along, however, “We look forward to increased flexibility in selling Foreign barriers affect all aspects of the supply since they collapsed in Cancún in September 2003, and branded goods in China, but there have only been high- chain, and U.S. textile companies also fight to sell many leaders are trying to revive the talks in advance level commitments to permit internal distribution, and their fabric and yarn in countries around the world. of a critical meeting in Hong Kong in December. we haven’t seen detailed regulations,” Jaeger said. “We The USTR’s report on foreign trade barriers cited In the meantime, U.S. companies continue to press would like to see detailed regulations and how they the U.S. textile industry’s ongoing concerns with for more aggressive action against countries that work in practice before considering other models.” India’s barriers to U.S. exports. maintain high trade barriers. While some countries have made The Great Wall of China is symbolic of improvements in the past year to the country’s barriers to foreign trade. eliminate barriers such as tariffs, ownership requirements and bur- densome licensing arrangements, others have erected new obstacles. China and India took some steps to lower impediments to trade last year, for example, but many barriers remain despite years of consultations and diplomatic pressure. The Office of the U.S. Trade Representative said in its recent annual report on foreign trade barri- ers that China, India and Egypt still maintain some of the highest hurdles on imported apparel and textile prod- ucts, as well as burdensome business laws on retailing and distribution. “This is a work in progress,” said a U.S. trade official who briefed reporters at the end of March when the report was released. “We need to continue more efforts but we have made substantial progress.” The official cited a dispute the U.S. resolved with Egypt over exces- sively high tariffs on apparel and textile imports without having to form a dispute settlement panel at the World Trade Organization. The official said the U.S. prefers to resolve problems and lower barri- FREDERIC J. BROWN/AFP/GETTY IMAGES PHOTO BY ers through dialogue and diplomacy, but it will not Jaeger said Jockey has also had problems in the “According to the U.S. textile industry, India con- hesitate to “use all of the tools at its disposal,” such as Caribbean region shifting regional production into tinues to maintain numerous textile trade barriers, filing WTO cases. the local marketplace. To get around the trade barri- and India remains one of the most heavily protected Dialogue can take several years, however, and U.S. ers, Jockey produces in the Caribbean, exports the textile markets in the world,” the report noted. apparel companies are forced to come up with cre- apparel back to the U.S. and re-exports it back to the Cass Johnson, president of the National Council of ative ways to get around some of the barriers. Caribbean to sell to the local economy, he said. Textile Organizations, criticized the U.S. for not tak- “One of the challenges in India and Pakistan is U.S. “Presently we export from the U.S., which is ironic ing more aggressive action against countries that con- apparel companies make a lot of goods there, but the because when you look at San Pedro Sula [Honduras], tinue to maintain high barriers. challenge is trying to get the goods in the retail envi- it has the largest underwear production city in the “The biggest markets we are locked out of — India ronment,” said Kevin Burke, president and chief world, and yet much of that production is not allowed and China — hide behind barriers that are either not executive officer of the American Apparel & Footwear to be sold in the local marketplace” under the current being addressed or will only be addressed in the Association. “The government makes it difficult for trade preference program known as the Caribbean world trade talks,” said Johnson. goods made in the countries to be sold there.” Trade Partnership Act. He said India’s high tariffs on textile imports, aver- Burke noted that the Chinese, carrying out com- Wal-Mart has created a successful model through aging 30 to 40 percent, are a formidable barrier that mitments made to join the WTO, have recently joint partnerships in China and is eyeing India as a keeps U.S. producers locked out of the market. changed a law to allow the sale of products made in possible market for store expansion, according to “India still has a long way to go,” Johnson said. China for export to be sold in the country. Amy Wyatt, a company spokeswoman. “India imports almost nothing from anyone. It is the The Chinese law now allows U.S. branded products John B. Menzer, president and chief executive offi- second most populous nation on earth, and it doesn’t to be made and sold in China, but the government has cer of Wal-Mart International, traveled to India last import textiles and apparel.” not issued regulations instructing local governments week to visit the company’s procurement office. The He said his association has advised the govern- how to allow foreign companies to sell apparel locally. retail giant sources apparel and accessories from India. ment in the past to concentrate on a single country, It is this bureaucratic red tape that many U.S. com- It is no secret Wal-Mart is hoping to break into such as India. panies run into even when the laws are loosened. retailing in India, but foreign investment rules have “We’ve seen with India that if one barrier is Mark Jaeger, senior vice president and general been highly prohibitive, Wyatt said. removed, another one pops up, and until the govern- counsel at Jockey International, said: “The challenge “We believe there is a bright future for retailing in ment is able to focus India on knocking down multiple with apparel is whether it is more economical to India,” she said. “We would explore it as soon as foreign barriers, we are not going to see significant results in export from the U.S. or to make or license production direct investment regulations make it more viable. At terms of increased exports of textile and apparel in the market we are trying to service. Some markets this point they don’t.” products,” Johnson said. ANew Fashion Must Have Earth Month with Ingeo™ Fibers: AUnique Celebration of a Fashion/Textiles Initiative There’s a new item topping the fashion shopping lists this season. It is an absolute must have due to its unique selling proposition … the proven appeal of a lifestyle that promotes respect for the environment and social responsibility. This phenomenon is being realized globally, and is embodied in a unique celebration called Earth Month with Ingeo™ fibers, a month-long event showcasing how the entire fashion system can be better and profit at the same time.

Clockwise from above: Bio3-Zone, AFashion Dream That Is Now A Reality Ingeo Fiber Launches Earth Month Bagutta, Fucci, Moby and Moby T-shirt, The Italian National We’re talking, of course, about Ingeo fiber, the new In order to support and celebrate the desire for more Designers' Soccer Team and only man-made fiber from 100-percent annually sustainable solutions, as well as showcase commercial renewable resources. products, NatureWorks has initiated Earth Month with "Little Idiot" t-shirts in Ingeo fiber. Ingeo fibers. The concept was inspired by the United The new fiber is changing the way the entire fashion Fans will be able to buy these Nations’ Earth Day, a celebration promoted worldwide. system looks at the concepts of respect for the same t-shirts at Moby's concerts Each year during this period, Earth Month with Ingeo environment and social responsibility. What was once throughout his world tour. Both the fibers will be an annual period devoted to celebrating a dream is now a competitive leverage point in the bags and t-shirts were made from the synergies between innovation, fashion and textile-clothing sector. Ingeo fiber, with the bag being the function, creativity and environmental responsibility. first non-woven fabric bag made Made from a polymer produced by NatureWorks LLC, From April 22nd to May 31st, clothing designed from the fiber and representing a Ingeo fiber is derived from fermented plant sugars especially for the occasion, and produced with Ingeo new value opportunity for the and combines the performance of a synthetic with the fiber, will be sold worldwide in select stores thanks to non-woven textiles sector. advantages of a natural material. the collaboration of 13 international brands: Bagutta, The closing Oil is a finite and precious resource. Clothes don’t Belfe, Bio3-zone, Docare, Diesel – presenting clothing celebration of Earth need to be made from it, and fibers such as polyester by Leslie Mobo, winner of the Diesel Award at Month will be a charity and nylon use up vital supply that could otherwise ITS#THREE, Fortei, Fucci, Gaspard Yurkievich, soccer game held in Milan serve other purposes. In contrast, the production and Paul Simon, Salewa, Urban Outfitters, Versace Sport, in May between the Italian use of Ingeo fiber means less fossil resource use, and Wickers. These brands have chosen to participate National Designers’ Soccer less green house gases added to the atmosphere. in the event, linking the Ingeo fiber brand to their Team – featuring Santo Versace, Ingeo fiber also looks and feels good. It is fresh and respective brand names. They are also supporting Ippolito Etro, , and comfortable to wear because it’s natural, breathable, sales across the world with promotional materials Lavinia Biagotti among many and has superb wicking properties so it works in all created especially for this initiative. other illustrious names – and a prominent professional climates. Best of all, it offers the ideal combination of Additional support for Earth Month has also come team. Naturally, both teams will be wearing football kits fashion, function and ethics. from Earth Pledge, an authoritative independent voice made from Ingeo fiber and created by Lotto. More responsible and sustainable choices are concepts for environmental issues. The nonprofit organization Earth Month with Ingeo fibers is a chance for a that consumers are ready to pay for – with the industry originated as a United Nations committee and delivers committed group of brands and retailers to stand witnessing a sea of change in global attitudes toward viable models to government, industry and communities out from the crowd. It is also giving the industry a environmental and sustainability issues. for implementing replicable solutions that will inspire wake-up call about one of the key emerging and facilitate a global transition to sustainability. consumer drivers. According to a survey conducted by the Milan Chamber of Commerce in early 2005, one out of During Earth Month with Ingeo fibers, a series of For more information on Ingeo fiber, visit: every two Italian consumers makes purchases roundtables and conventions for industry professionals www.ingeofibers.com according to ethical principles. The survey also found are taking place in Milan, New York and Munich. These some stunning news. More than 79 percent of the encounters chaired by industry experts, are designed Italian, German, U.K., U.S. and Canadian consumers to explore the business opportunities arising from the surveyed said they were happy to pay an extra 10 use of more sustainable textile fibers, and the synergies percent for a product that does not harm people or with all other responsible ways of doing business. the environment. The opening and closing of the inaugural Earth Month What does this mean? Simple, there’s real value and is being marked by two high-profile events, both made profit inside the fashion system for those who offer the possible through collaboration with Ingeo fiber. "sustainable factor" as a responsible choice. International music star Moby served as the headliner Given consumers’ new ethical agenda, Ingeo fiber to kick off Earth Month. V.I.P.guests at the after party offers the clothing industry the opportunity to answer celebrated the April 20th concert in New York that this new demand in a commercially viable, socially launched Moby’s global tour by receiving a goodie and environmentally responsible way. bag from Ingeo fiber, containing Moby’s personalized

Ingeo and the Ingeo logo are trademarks of NatureWorks LLC. 8 WWD, TUESDAY, MAY 17, 2005

SECTION II SOURCING HORIZONS Post-Quota Winners and Losers

By Evan Clark ished goods produced in China and then shipped them to the U.S. “The fact that they had a lot of quota made them competitive in the market- WASHINGTON — AFTER UNLEASHING GLOBAL TRADE FROM THE RESTRAINT place,” said Michael Delaney, chief executive officer of Ralsey, a division of sourc- of quotas on Jan. 1, the dust is far from settled, but China has lived up to expecta- ing giant Li & Fung. “When that buffer or that barrier isn’t in place, it becomes ap- tions and emerged as the primary beneficiary of the change. parent that the underlying economics are not strong enough to support it.” Imports of Chinese apparel and textiles worth $4.8 billion entered the U.S. in the However, sourcing since January has been a bit of a guessing game for vendors. first quarter, a 60.5 percent jump compared with a year earlier, when trade among When it joined the WTO in 2001, China agreed to temporary quotas, which could be World Trade Organization countries was under quota constraints. applied to specific goods and renewed through 2008. These restrictions are meant Among the other winners in the post-quota world are India and Bangladesh, which to safeguard the domestic industry and ease it into the transition. have large, low-cost workforces and significant manufacturing infrastructures. Safeguards quotas were imposed Friday on cotton knit shirts and blouses, cotton “It’s too early to draw the definitive conclusion,” said Steve Lamar, senior vice trousers and cotton and man-made fiber underwear, valued at $624.5 million annu- president of the American Apparel & Footwear Association. “You’re starting to see ally, and petitions on another $3.35 billion worth of goods are pending. Vendors are some trends shaping up that might be early indicators of longer-term trends.” vexed over whether those categories of goods will have fresh quotas imposed. One of these is the movement of production to China, but it will take time for “This has a profound effect on people’s sourcing decisions right now,” said Delaney. sourcing patterns to adjust to a new trade landscape, he said. “Without knowing what’s going to happen in China, we have to look elsewhere.” “These shifts are going to take some time,” he said. “It’s not like you’re all of a Vendors often need eight or nine months to make sourcing decisions and can ill sudden going to see everything go overnight.” afford to get caught with goods in China that can’t be brought to market. Propped up for years by the quota system, other countries, such as Mexico, lost “The overall hope was that it would be an orderly transition,” said Delaney. “It’s ground in the importing game. Also losing out was Hong Kong, which largely fin- disheartening that they haven’t figured out a more managed way to deal with this.”

WINNERS: Countries that have seen the largest dollar increase in textile and apparel INDIA Up $258 million imports since quotas were dropped on Jan. 1. If China is the biggest blip on the industry’s sourcing radar, India, right next store and nearly as immense, comes in a close second. India has been a member of the WTO since 1995 and is considered a developing nation, meaning it gets special consideration in the current round of global trade talks. As Indian imports rise, the U.S. government has pres- sured the country to be more open to U.S. goods, noting that it has one of the most heavi- ly protected textile markets in the world. Population: 1.08 billion Labor Force: 482 million Per Capita Gross Domestic Product: $3,100 Industrial Production Growth Rate: 7.4 percent

BANGLADESH Up $96 million Considered one of the most competitive markets for mass market apparel, Bangladesh has a low-cost workforce and increasing productivity, though it still lags behind China. The government has been working to improve labor standards, though overall economic reform has been held back by widespread corrup- tion. Population: 144 million Labor Force: 65 million Per Capita Gross Domestic Product: $2,000 Industrial Production Growth Rate: 6.5 percent

INDONESIA Up $80 million Indonesia has picked up share with a low-cost labor force that is both large and skilled. The country also has significant manufacturing base for raw materials, particularly synthetic textile goods. Persistent political and social unrest, however, have made investors wary. Population: 242 million Labor Force: 112 million Per Capita Gross Domestic Product: $3,500 Industrial Production Growth Rate: 10.5 percent

CHINA Up $1.8 billion The world’s most-populous country heads the list of gainers and has become the buzzword when it comes to international trade and apparel sourcing because of its girth and immense pool of low-cost labor. China joined the World Trade Organization in 2001, but agreed to a safeguard provision that allows quotas to be reimposed to protect domestic industries. Both the U.S. and the European Union are reviewing whether to implement the safeguards, which could be renewed until 2008. There are persistent calls for China to curtail subsidies to its industry and allow its currency to fluctuate on the open market. The country has also come under pressure from the Bush Administration to strengthen its enforcement of laws that protect intellectual property rights. Population: 1.31 billion Labor Force: 761 million Per Capita Gross Domestic Product: $5,600 Industrial Production Growth Rate: 17.1 percent WWD, TUESDAY, MAY 17, 2005 9

WWD.COM

MEXICO Down $130 million SRI LANKA Up $75 million Mexico enjoys close proximity to the U.S. market and has tripled its trade with the With a relatively small and high-cost labor U.S. and Canada since the implementation of the North American Free Trade pool, Sir Lanka has nonetheless managed to Agreement in 1994, but has still lost out in the post-quota world. Fraught with cor- pick up its share of apparel and textile imports ruption, the country is working on upgrading its infrastructure, modernizing its tax to the U.S. during the first quarter. The country system and rejiggering its labor laws. relies heavily on imported yarns and fabrics Population: 106 million for its apparel production, which could prove a Labor Force: 35 million disadvantage. Late last year, a tsunami killed Per Capita Gross Domestic Product: $9,600 nearly 40,000 in Sri Lanka and destroyed sig- Industrial Production Growth Rate: 3.8 percent nificant amounts of property, though the appar- el industry was relatively unaffected. Population: 20 million SOUTH KOREA Down $96 million Labor Force: 7 million Having developed a Per Capita Gross Domestic Product: $4,000 Westernized, service econo- Industrial Production Growth Rate: 7.1 percent my and a presidential system of leadership since the close of the Korean War in 1953, LOSERS: Countries that have seen the largest dollar decrease in textile and apparel South Korea stands in stark imports since Jan. 1. contrast to its isolated north- ern neighbor. Its relatively high labor costs, however, put the country at a competi- tive disadvantage to China since the end of the quota regime. Anticipating the increased importance of China in the post-quota world, many South Korean textile firms have turned toward increasingly mecha- nized production and novel goods, such as fabric made from bamboo fibers. Population: 48 million Labor Force: 23 million Per Capita Gross Domestic Product: $19,200 Industrial Production Growth Rate: 10.1 percent

RUSSIA Down $63 million Russia weathered a financial crisis in the late Nineties and has grown its economy for six straight years, but is still contending with a weak banking system, a climate that discourages invest- ment and corruption. HONG KONG Down $148 million The U.S. government A free-market economy, Hong Kong is highly dependent on international trade, is also keeping a handling many of the goods coming out of China. That has tapered off dramatically close eye on the for- since quotas were dropped. Tiny geographically — Hong Kong is just six times the mer Communist size of Washington, D.C. — it became a special administrative district of China in nation for its weak 1997 and operates in tandem with its larger neighbor under the “one country, two enforcement of intellectual property laws. systems” rule. Population: 143 million Population: 7 million Labor Force: 72 million Labor Force: 4 million Per Capita Gross Domestic Product: $9,800 Per Capita Gross Domestic Product: $34,200 Industrial Production Growth Rate: 6.4 percent Industrial Production Growth Rate: 1 percent

CANADA Down $62 million Like Mexico, Canada’s apparel manufacturing base has benefited from close proximity to the U.S. market and NAFTA, but has lost ground this year. The U.S. consumes the lion’s share, or more than 85 percent, of the country’s exports. Canada, however, has a relatively high-cost workforce, especially compared with Asian countries, such as China. Population: 33 million Labor Force: 17 million Per Capita Gross Domestic Product: $31,500 Industrial Production Growth Rate: 2 percent SOURCE: CIA WORLD FACTBOOK, U.S. INTERNATIONAL TRADE COMMISSION, OTEXA AND WWD RESEARCH TRADE U.S. INTERNATIONAL CIA WORLD FACTBOOK, SOURCE: 10 WWD, TUESDAY, MAY 17, 2005

SECTION II SOURCING HORIZONS Canadian Firms Feel China’s Long Reach

By Brian Dunn Textile and Clothing Industry Employment, the U.S. share of total textile imports into Canada rose from 53 to 62 percent, spurred by the North American MONTREAL — WHEN CANADIAN BUTTONS LTD. 1992-2004 (in thousands) Free Trade Agreement. But since 1999, the share has here recently announced it was ending production of fallen back to 53 percent and continues to decline. 160 polyester buttons after 121 years in business, it blamed During the same period, the U.S. share of total the China syndrome of cheaper clothing flooding the 140 TEXTILES AND CLOTHING Canadian clothing imports declined from 20 to 9 percent, domestic market. while China’s market share went from 20 to 42 percent. Since most of the apparel coming into Canada was 120 Employment in Canada’s apparel industry peaked being made in China, it made sense to outsource produc- 100 CLOTHING at 100,000 in 2000 and is now hovering around 70,000, tion to suppliers closer to where the apparel was being according to Bob Kirke, executive director of the made, so the company opened an office in Hong Kong. 80 Ottawa-based Canadian Apparel Federation, which The great maul of China also claimed Tiger Brand represents manufacturers and suppliers. But he said 60 TEXTILES Knitting Co. of Cambridge, Ontario, which recently the reality in Canada is different than it is in the U.S. closed its doors after 124 years, resulting in the loss of 40 “We’ve kept more direct employment here because 300 workers. The maker of fleece garments was sold to we never created an outward processing regime like a company controlled by New York investor Ken Lazar, 20 CAFTA and provisions under 807,” said Kirke, refer- who will source its branded apparel in China. 0 ring to the pending Central American Free Trade Last December, two textile companies in Agreement and the Caribbean Basin preferential Huntingdon, Quebec, near the Vermont border, an- 1992 1994 1996 1998 2000 2002 2004 trade pact, respectively. “In terms of imports, Canada nounced plans to close six plants, putting close to 800 has been relatively more generous, with China ac- SOURCE: SURVEY OF EMPLOYMENT, PAYROLLS AND HOURS. people out of work. Both companies blamed increased counting for 42 percent of our clothing imports com- competition from China and a strong Canadian dollar. In an ironic twist, Synatex, China World Best, one of pared to about 18 percent in the U.S.” One of the companies, Cleyn & Tinker, the largest the largest state-owned conglomerates in China, Kirke said the Canadian government announced Canadian manufacturer of worsted wool fabric, began closed its cotton fabric plant last year, also located in plans in December to eliminate duties on all raw mate- winding down operations in April and is consolidating Drummondville, after the 90 plant workers signed rials, namely textiles that are not available in Canada. its business in Burlington, N.C. The other, sportswear their first collective agreement that would have in- A final decision and report is expected by the end of fabric maker Huntingdon Mills (Canada) Ltd., has al- creased wages 15.7 percent over two years. At the time, summer, with duties refunded retroactive to Jan. 1. ready closed, putting 250 people out of work. the company said the plant was having difficulties be- “Unfortunately, Canadian companies going to upcom- Last spring, Gayley & Lord Inc., of Greensboro, N.C., cause of poor market conditions. ing U.S. trade shows won’t know if the fabric used in their cut 600 jobs from its Swift denim plant in Drummondville, China has replaced the U.S. as the major supplier of women’s wear will be duty free,” he added. “But it’s the Quebec, due to competition from Asia, notably China. textiles and clothing to Canada. Between 1992 and 1999, best shot to maintain a viable domestic production base.”

AUGUST 29 – SEPTEMBER 1, 2005 LAS VEGAS CONVENTION CENTER, LAS VEGAS, NEVADA

With over 500 apparel and fabric manufacturers from around the world, MAGIC has truly created an international marketplace. The addition of the sourcing and fabric components to MAGIC offers a unique opportunity to the apparel industry by vertically connecting the apparel supply chain from raw materials (fabric, trim, fiber) to full-package apparel contractors to branded wholesalers to retailers.

Sourcing Zone at MAGIC has become the premier sourcing event for major U.S. wholesalers, brands and retailers to source apparel and fabric from around the world, creating the most powerful event in the industry for product development teams. • Shorten discovery, research and buying cycles • Discover new resources and pre-qualify factories • Attend free seminars from leaders in apparel sourcing • Learn about key legislation and customs laws to improve your bottom line TO ATTEND: 877.554.4834 OR 218.723.9792 TO EXHIBIT: 818.593.5000 OR 917.326.6324

Partnered with United States Association of Importers of Textiles and Apparel WWW.USAITA.COM WWD, TUESDAY, MAY 17, 2005 11

WWD.COM African Nations Need Export Plan

By John Zarocostas could also explore niche markets for Moreover, improving trade facilita- ethnic textiles or apparel and urged tion services by modernizing ports and GENEVA — POOR AFRICAN APPAREL manufacturers to seek innovative solu- customs clearance procedures could exporting nations need to diversify tions on how to respond to buyers’ help reduce delivery time to foreign their product mix away from commodi- requirements, from computer-assisted markets. ty-type items, exploit their duty-free design to electronically managed sup- According to World Bank estimates advantages and expand their supply ply chains. cited in the report, customs clearance chains if they are to survive in the high- On the logistics front, the study noted for cargo takes more than 10 days in ly competitive post-quota era, according that sourcing materials such as fibers, South Asia and Africa, nine days in to a report by a trade promotion agency. fabrics and trims from nearby countries Latin America and only two days in Rwanda President Paul Kagame.

The Geneva-based International can provide shorter delivery times. advanced industrialized countries. JANTILAL/GETTY RAJESH IMAGES PHOTOS BY Trade Center’s report states that least-developed countries in sub-Saharan Africa “will con- tinue to benefit from preferen- tial treatment from World Trade GO•UP Organization member countries.” To best take advantage of the duty-free benefits extended to them by wealthy countries, the ITC reasoned that African mak- ers should focus on fabrics and garments made of synthetic fibers, which typically carry high- er duty rates than cotton goods. The study by Matthias Knappe, senior market adviser on textiles and apparel at the ITC, cites as an example that in the U.S., duties on imports of cotton-knit shirts average 20 When you are looking for percent, but the average duty quality, ethics and creativity for shirts of man-made fiber is in what you wear, 32 percent. In 2004, sub-Saharan Africa’s there is only one road to take. share of the U.S. apparel mar- ket was 2.2 percent, reflecting the duty-free access provided under the African Growth & Opportunity Act coupled with more relaxed rules of origin cri- teria that allowed poor coun- tries to use cheaper fabric sourced from Asia for their apparel exports. The president of Rwanda, Paul Kagame, told an April WTO symposium that the capa- bilities of African countries to take advantage of opportunities provided by AGOA and the European Union’s “Everything but Arms” program, which offers trade benefits to the poor- est countries of the world for all products except weapons, depends “on our capacity to stimulate the supply side.” Kagame lauded the trade opportunities initiatives by Washington and Brussels, and stressed his desire “to see AGOA renewed beyond 2015.” IT IS THE ONE GUARANTEED BY THE COMPANIES CARRYNG THE “BIELLA THE ART OF EXCELLENCE.” TRADEMARK: The ITC report argued that African producers must diversi- fy their product mix if they are Alfredo Pria by Ma. Al. Bi. | Biella Vertical Textile | Botto Giuseppe e Figli | Botto Poala to be in a position to compete Cappellificio Cervo - Barbisio | Carlo Barbera | Filatura di Crosa | Filatura di Pollone with Asian suppliers in the post- quota environment. It noted that Filatura di Trivero | Filatura Marchi Giovanni | Finissaggio e Tintoria Ferraris | Fratelli Piacenza last year, 77 percent of apparel Gartex | Gugliermino Filati | Italfil | Lanerie Trevela | Lanificio Cesare Gatti | Lanificio di Lessona exports under AGOA were based on two product lines — knit Lanificio Ermenegildo Zegna e Figli | Lanificio Fratelli Cerruti | Lanificio Fratelli Fila shirts and simple trousers. It noted that Chinese goods Lanificio Fratelli Garlanda | Lanificio Fratelli Ormezzano | Lanificio Luigi Botto | Lanificio Tessilstrona in those categories carried a Manifattura F.lli Baroli | Pettinatura di Verrone | Pettinatura Italiana | Quality Biella price premium of as much as 60 percent under the quota regime, Tessilcontroll System | Tintoria di Trivero | Tintoria Finissaggio 2000 | Tintoria Industriale Leone | Tonella which suggests that Chinese prices will drop markedly now that the nations of the WTO www.biellatheartofexcellence.com have dropped those restrictions. The ITC report suggested MADE IN ITALY that poor African countries 12 WWD, TUESDAY, MAY 17, 2005

SECTION II SOURCING HORIZONS Sourcing Digest

CREORA TAPS FORMER DUPONT EXECS: Creora spandex has enlisted two DuPont The strong economic prospects for China and India indicate the challenge for the marketing alums to spearhead its expansion in North America and Europe. impoverished countries is daunting, U.N. economists said. Creora, a subsidiary of South Korean conglomerate Hyosung Corp., has appoint- The report, compiled by the U.N. Economic & Social Commission for Asia and the ed Ria Stern as director of North American marketing and global brands, and Pacific, projected that China’s economy would grow by 8.5 percent this year, with Stephanie Ledru as director of European marketing and brands. India’s rising 7.2 percent. Stern most recently served as North American marketing director for Invista, the — John Zarocostas world’s largest producer of spandex under the Lycra brand name. Prior to that, Stern spent 15 of her 20 career years with DuPont working in the company’s textile GLOBAL COMMERCE TO SLOW: Lower consumption — the result of higher oil businesses. Ledru comes to the company from the DuPont-SA joint venture that prices and interest rates — may slow the growth of the global economy this year, owned the European rights to the Coolmax brand. Ledru served as European mar- according to a recent World Trade Organization forecast. keting and communications manager. The 148-nation body predicted global commerce would grow 6.5 percent this year, Greg Vas Nunes, president of Hyosung’s spandex division for Europe and the compared with a 9 percent increase last year, according to chief WTO economist Americas, announced recently that he planned on appointing six to eight senior exec- Patrick Low. utives to oversee various regions. Vas Nunes also said he planned to increase advertis- In an interview, senior WTO economist Michael Finger said the Jan. 1 removal of ing efforts and was looking to add production facilities to complement plants in South textile and apparel quotas should give overall trade “a small boost.” For demand to rise, Korea and China. He said in a statement that the additions of Stern and Ledru “will he said, “prices have to fall,” but added, “I don’t expect a big drop in retail prices.” provide an overnight step-change in Hyosung’s brand and marketing capabilities.” Creora entered the spandex market in 1992 and has become the second-largest producer in the world, with a production capacity of about 50 kilotons, or a little For demand to rise prices have to fall, but more than 20 percent of the overall world capacity. Last year, textiles, including spandex, polyester and nylon, constituted $890 million of Hyosung’s $4.21 billion in “I don’t expect a big drop in retail prices. sales from a diversified assortment of businesses, such as chemicals, industrial ” materials and construction. — Michael Finger, WTO economist — Ross Tucker The report projected that the weakness of the U.S. dollar would put the brakes on U.N. REPORT URGES ASIAN ALLIANCES: A United Nations report last month called U.S. import growth, while encouraging U.S. exports. on companies to avoid moving production into China too rapidly and urged China It noted that overall last year Germany was the world’s top exporter, with its ship- and India to cooperate with their smaller neighbors to ensure that the region’s econ- ments rising 22 percent to $914.8 billion. In second place was the U.S., with a 13 per- omy continues to grow. cent increase to $819 billion, followed by China, which overtook Japan by posting a Although the nations of the World Trade Organization dropped textile and apparel 35 percent increase to $593.4 billion. quotas on Jan. 1, the study warned that it is not clear how sourcing strategies will change. The U.S. retained its ranking as the world’s top importer with a 17 percent The report said more declines in apparel prices, squeezing industry profit mar- increase to $1.5 trillion; followed by Germany with $717.5 billion, up 17 percent, and gins, will allow larger producers such as China, India and Pakistan “to be more China with $561.4 billion, up 36 percent. price-competitive through economies of scale.” — J.Z. The outlook for smaller and more vulnerable producers in the region, such as Nepal, Cambodia, Laos, Bangladesh and Sri Lanka, will require the governments to GILDAN’S PLANT PLANS: Gildan Activewear has decided to defer plans to build a redouble their efforts to strengthen their respective industries and seek niche markets. textile plant in Nicaragua and instead will expand its existing facilities in Honduras Though shifts in trading patterns are not expected to happen overnight, poor tex- and the Dominican Republic. tile- and apparel-dependent economies “could lose out” if they fail to act, the survey Expanding the existing two plants should be enough to allow Gildan to reach a said. It suggested forging alliances with more competitive producers in the region as projected annual production of 37 million dozen T-shirts by the end of the year, chief a means to achieve greater integration and said China and India “have an important executive officer Glenn Chamandy said on a conference call. The increased pro- role to play” through active partnerships with smaller countries. duction should also cover the company’s plan to start selling directly to retailers in addition to its traditional wholesale markets. Chamandy projected sales of 1.5 million dozen T-shirts to the retail market next year and also said that Gildan is considering a new fleece facility in Honduras, which would include a cogenera- tion electric plant to reduce energy costs. — Brian Dunn

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By John Zarocostas The world may be constantly changing, GENEVA — EGYPT IS COUNTING but sourcing powerhouse Li & Fung provides on investment to improve productiv- unparalleled flexibility, speed and the ultimate ity and a recently completed free- supply chain management trade agreement with the U.S. to “I think the key to Li & Fung’s success is help it keep its competitive position that we build custom-made solutions on a in the post-quota era. client-by-client basis,” reported Thomas M. Egyptian Minister of Investment STR/AFP/GETTY IMAGES PHOTOS BY Haugen, president, Li & Fung USA. “The success Mahmoud Mohieldin said in a of Li & Fung is based upon not having just recent interview that his country’s one way of doing things. We look at each textiles and apparel industry is shaping up and “can secure a mar- Thomas Haugen, president, client and custom build a sourcing group to ket for our products.” Li & Fung USA service them.” As part of the Middle East peace Li & Fung’s vast global sourcing options maximize the best of the process, in 1996 the U.S. Congress world’s resources with an emphasis on performance and efficiency, authorized an agreement to allow Haugen confirmed. “We make our decision based on performance, and Egypt and Jordan to export products that’s really what our clients care about: Effectiveness. to the U.S. duty-free, as long as prod- “The winning countries or vendors will be those that have raw material ucts contain a specified amount of Egyptian Minister of Investment Mahmoud Mohieldin. availability, flexible manufacturing and competitive costs. They are inputs from Israel. comfortable with smaller production runs and know how to shift from style The success of Jordan’s Qualified A to style B, because in the fashion business, the ability to shift is critical.” Industrial Zone program, which has seen the country’s exports increase to $674 million last The end of quotas enabled companies to consolidate their orders into year from $31 million in 1999, according to U.S. government data, also spurred Egypt to pursue fewer vendors, benefiting them in both price and flexibility, he stressed. the QIZ option. In 2004, Egyptian firms exported $534 million worth of textiles and apparel to the U.S. The expected rush to China has not happened with Li & Fung’s U.S. The government now wants to sharply increase exports to the U.S. market “with the possi- apparel clients due to uncertainty about import restraints being imposed bility of reaching $4 billion within the next five years,” according to projections by Egypt’s min- by the U.S., and most major industry players made few alterations in istry of foreign trade and industry. their vendor base, he observed. “People are not shifting their sourcing Such a sharp increase would require Egyptian exporters to barrel ahead of the competition. patterns dramatically. Currently only two countries — China and Mexico — ship more than $5 billion of apparel and “The winning countries or vendors will be textiles to the U.S. a year. Increasing investments and productivity to benefit from access to the U.S. market could pro- those that have raw material availability, flexible vide 250,000 jobs in the industry, the Egyptian government estimated. manufacturing and competitive costs.” “We have comparative advantage in textiles and garments,” Mohieldin said. “It’s not just based on the tradition and history in the sector but as well on the high quality of inputs we are — Thomas M. Haugen, using, including the international trademarks of cotton and other fabrics used.” president, Li & Fung USA The opening up of the sector during the last 10 years, including many joint ventures with “Vendors who have been reliable, flexible and competitive price-wise South Korean, Chinese and Indian investors, he said, made Egyptian manufacturers better able to compete. are still receiving business and will continue to receive business as long “We don’t fear anymore the challenges of competition,” said Mohieldin, who projected that as they retain those attributes.” foreign direct investment in Egypt this year will double from $408 million last year. The sourcing map continues to evolve, with countries like Vietnam Recent initiatives launched by the Egyptian government include the reduction of import tar- and Cambodia having “contributed a great deal to the growth of our iffs to 9 percent from 14 percent and slashing the time required to register a company from six Southeast Asia sourcing, which has expanded pretty rapidly over the past months to three days. three years.” Moreover, the government has also proposed to cut the corporate tax rate to 20 percent from Li & Fung finds success tapping into regions offering both raw materials 42 percent. and flexible manufacturing, and depending on needs and circumstances, materials can be shipped across borders to accommodate production or kept and used locally when possible. “We work with our clients to consolidate their orders into fewer producers, which is beneficial to them in terms of price and flexibility.” U.S. Still Tops in Global Competitiveness With almost 70 offices, including 18 in China, Li & Fung has global reach and balance, delivering clients unparalleled results no matter By John Zarocostas The explosion in textile exports, he added, where changing business needs or government policies may take them. also shows how quickly China can turn a low “We are the flexible answer because of our spread. We’re prepared to cope GENEVA — THE U.S. RETAINED ITS TOP exchange rate opportunity “into a huge com- with whatever regulatory issues come up.” ranking as the world’s most competitive econo- petitive advantage.” Headquartered in Hong Kong, Li & Fung, which began in 1906, my in 2005, spurred by the vitality of savvy busi- But the survey, which measures the com- coordinates production through offices in some 40 countries, with services ness talent, abundance of technology, a mobile petitiveness of 60 economies using 314 crite- for clients ranging from product design and development through workforce and a large capital market, accord- ria — with two-thirds based on hard statistical manufacturing, and even shipping, clearance and delivery to their ing to a global business survey published today. data and one-third from data obtained from warehouse, if needed. However, the world’s fastest-growing econ- the poll of 4,000 senior executives around the Li & Fung recently projected sales should reach $10 billion in 2007, omy — China — which last year expanded by world — shows concerns are on the increase a goal Haugen said is on target and will be largely met “the old fashioned 9.5 percent, posted a sharp drop to 31st posi- over China’s path. way,” by increasing the core sourcing business. tion, compared with 24th a year earlier, China ranked third for economic perform- according to the “World Competitiveness ance but polled low in many other business cri- A new office in Shanghai will focus primarily on non-apparel goods, Yearbook 2005” compiled by the Lausanne, teria essential for enhancing the business envi- which now account for 34 percent of the firm’s business, he said. The Switzerland-based International Institute for ronment. In business efficiency, for instance, it increased presence will enable Li & Fung’s apparel divisions to work Management Development. fell to 50th from 35th last year, while having closer with Chinese fabric mills “and then move the raw material to the “China’s surprising fall, despite an excel- poor placement for infrastructure, productivity most appropriate area to make the garment.” lent economic performance, is due to an and efficiency, management practices, busi- Haugen noted the company’s growing licensed, branded business extremely negative opinion survey conducted ness legislation, financial institutional trans- also is going well, with future licensing and acquisition activities to focus in the business community in [first quarter] parency and for bribery and corruption. on “well-known global brands” that appeal to consumers in the U.S. and Q1-2005,” said IMD professor Stéphane Other economies with important textile across the world. Garelli. “It sees that the sustainability of such and apparel export sectors that posted gains Recent acquisitions included U.S. knitwear maker Ralsey and a rapid expansion is being questioned, while in the competitiveness stakes included Hong European suppliers BMB and Zeeking, he noted. Li & Fung also has major the strains on the financial system, infrastruc- Kong, ranked second, up four slots from a year licensing agreements with Levi Strauss & Co., Cannon and Royal Velvet. ture and weaknesses of corporate governance earlier, while Taiwan climbed to 11th, are being highlighted.” Thailand to 27th, South Korea to 29th, Turkey In addition, it recently added apparel sourcing operations of Mervyn’s On the end of textiles and apparel quotas, to 48th and Brazil to 51st. and Marc Ecko Enterprises. Garelli noted that by keeping its currency, the Among the nations that experienced falls “And there are plenty more opportunities out there we can add yuan, pegged at a rate of 8.28 to the dollar, were India, which fell to 39th from 34th, and in our core business.” China has been able to take advantage of the Indonesia, which dropped to 59th from 58th. Li & Fung USA end of quotas and boost its exports. Mexico’s status remained unchanged at 56th. 1372 Broadway, New York, NY 10018 (646) 366-5000 14 WWD, TUESDAY, MAY 17, 2005

SECTION II SOURCING HORIZONS Banging the Drum on China

By Scott Malone $161.98 billion deficit with China. century. As those companies switch from a manage- Consultant Ira Kalish, Deloitte Research’s Los ment model geared at maximum employment to the NEW YORK — THE CHORUS OF VOICES COMPLAIN- Angeles-based global director of consumer business, capitalist model of maximizing profit, each year hun- ing about China’s trade practices has grown in recent noted there are also important differences between dreds of thousands of people are being laid off. months to include a diverse range of labor activists, the current Chinese and past Japanese economies. Western executives tend to look at China’s popula- Southern mill owners and U.S. senators. “Back in the Eighties, Japan was criticized for clos- tion in one of two lights. For many, particularly those The criticism has focused on two aspects of China’s ing itself to foreign penetration, to foreign goods, for- in manufacturing, it amounts to a veritable army of commercial policies: the fixed exchange rate for the eign investment, foreign companies,” he said. “That’s cheap laborers ready to compete. yuan to the dollar, which experts assert gives Chinese not the case with China. China has had huge growth in “Japan was very limited in terms of available peo- goods a 10 to 40 percent price advantage, and the ex- imports over the last couple of years. They’ve dramati- ple and I think part of the reason their costs went up plosive growth of its textile and apparel exports fol- cally reduced trade barriers as part of their commit- so much was that you essentially had a full-employ- lowing the dropping of quotas, which shot up 60.5 per- ment to the World Trade Organization.” ment economy, and that put pressure on wages,” Ross cent on a dollar basis through the first three months of While China’s government remains a one-party sys- said. “I don’t think that is at all likely to happen in the year and has contributed to the growing trade tem controlled by a nominally Communist party, lead- China. There’s this huge, huge mass of population that deficit of the U.S. ership in Beijing has demonstrated a clear enthusiasm would be absolutely thrilled to get this kind of manu- But for all the talk surrounding Beijing’s approach for capitalism and economic liberalization, joining the facturing job.” to business, even domestic manufacturing executives WTO in 2001. A recent United Nations report noted Textile executives see a threat in China’s focus on acknowledge it’s easy to understand China’s motives. that in 2003 and 2004, foreign-funded companies ac- exporting. “China is pursuing a strategy that is in its national counted for 57 percent of China’s total exports, adding, “For someone to develop a strength on their own, interest,” said Wilbur Ross, chair- man of International Textile Chinese factories, such as this one in Group, based in Greensboro, N.C. Hanhzhou in Zheijiang province, are boosting “They have a great need for job capacity now that quotas have been lifted. creation because you have huge numbers of people each month emigrating from the extremely impoverished countryside into the cities. They have to create a lot of jobs every month to avoid social disorder.” Many economists see nothing unusual in China’s approach. “China is going through the same cycles of industry that other countries, especially in Asia, have gone through,” said Andrew Bernard, professor of interna- tional economics at Dartmouth’s Tuck School of Business, located in Hanover, N.H. “It’s trying to do the same thing that governments in Japan and [South] Korea have done, which is moving their in- dustry up into higher-value goods and employing as many people as possible.” The comparison with Japan is apt, in that much of the current talk about China in U.S. business circles evokes memories of the Eighties, when “Japan Inc.” was the bugbear that kept executives up at night. While Japan remains an economic powerhouse — per- capita gross domestic product there is $29,400, making Japanese consumers among the wealthiest in the world — it has been mired in recession over much of the past decade, and American workers now view low- AP PHOTO PHOTO BY wage competitors in China and India as more threat- “China continues to attract a large volume of foreign they need to develop a consuming middle class,” said ening than the Japanese. direct investment to expand its productive capacity in Keith Hull, president and chief operating officer of Many economists argue that over the coming the export sector.” Avondale Mills Inc., based in Graniteville, S.C. “You decades, China will follow Japan’s path, becoming By way of contrast, Japanese firms in the Eighties can’t always export your way to national wealth. That’s wealthier and producing a formidable consumer class. largely rejected foreign efforts to buy stakes in where Japan was going, the export way. And they did it Experts see many similarities between the current Japanese enterprises. When they needed capital, they to a point, but past the point, there was stagnation. Of outcry over China and the past focus on Japan. took on debt instead of seeking foreign investors. That course, their consumers weren’t quite as willing to go “There are some similarities in that there’s a lot of left many firms burdened with heavy interest pay- into debt as the U.S. consumer was.” symbolism,” said ITG’s Ross. “While all the complaints ments, a factor that contributed to the nation’s pro- For other industry executives, China’s population were going on about Japan, the fact is that we had a longed economic slowdown. represents an awe-inspiring pool of potential shoppers. trade deficit not just with Japan, but with the rest of Another more obvious difference between China Joe McConnell, vice president of strategic sourcing the world in total. China has become a big symbol. If and Japan is size. China’s current population of 1.3 bil- at Kellwood Co., who is based in New York, said he be- you notice, even though our trade deficit with Japan lion people is more than 10 times the size of Japan’s. lieves there is “a lot of opportunity for American com- has continued, nobody really says anything about a “China has a tremendously large unemployed labor panies over there.” trade deficit with Japan.” pool,” said Bernard of Dartmouth. “Traditional American companies have not been in According to Commerce Department data, the total To meet its obligations to the WTO, China is priva- the export mind-set,” he said. “The American compa- U.S. trade deficit last year came to $651.73 billion. The tizing the state-owned corporations that were the nies that will succeed will be the ones that grasp that U.S. ran a $75.19 billion deficit with Japan and a backbone of its economy for the latter half of the 20th opportunity to export and grow in foreign markets.” WWD, TUESDAY, MAY 17, 2005 15

WWD.COM

The U.S. last year exported $34.7 billion worth of goods to China, primarily things like heavy equipment “China is pursuing a strategy that is to fuel the country’s industrial growth, a number that’s in its national interest,” said Wilbur dwarfed by the $196.7 billion in goods the U.S. import- Ross of International Textile Group. ed from China. But Chinese consumers are also interested in spending. “The consumer market is growing very rapidly,” said Deloitte’s Kalish. “China is already the largest market for many consumer products. It’s the largest market for cell phones in the world, it’s a sizable mar- ket for consumer electronics….It’s a very good poten- tial market for American companies.” While China’s economy is growing — GDP rose 9.1 percent last year, according to Chinese government statistics — it remains on shaky footing. The country’s banking system is seen as weak, as is its energy infra- structure. Today, companies that build major apparel and textile factories in China tend to construct their own electrical plants on site to ensure they’ll be able to operate a normal schedule. Given that uncertainty, many experts assert that the drive in the Senate to force China to stop managing its currency to maintain a fixed exchange rate of about 8.28 yuan to the dollar is misguided. “To hold down the value of their currency, they are funding our current account deficit,” said Deloitte’s Kalish. “If they let their currency go up in value, they will stop buying U.S. Treasury securities. We will have to sell those bonds to the [U.S.] public, who will de- mand a higher return, interest rates will go up and we will have a recession.” Dartmouth’s Bernard added, “China would like RROSS PHOTO BY AP PHOTO/STEVE MITCHELL RROSS PHOTO BY

nothing better than to have a financial system that was China will mostly result in those orders being shifted well developed, an exchange rate that floats freely and to other Asian countries, particularly India and open capital markets….If they were to do that before Indonesia, rather than back to the U.S. they were ready, an economy that includes a quarter of ITG’s Ross concurred: “I don’t believe that, whatev- the world’s population would be heading south fast.” er is done by way of safeguards, is going to create any He offered an example of the shortcomings of incremental jobs in the U.S.” China’s financial system: Chinese citizens, who are In addition to its manufacturing operations in the limited in their ability to invest outside the country, U.S., where it employs more than 5,500 workers, ITG lack places to put their money where they can expect has been expanding its presence overseas and recently to earn a rate of return that exceeds inflation. So for established its first manufacturing operation in China. many Chinese, saving for retirement means putting “China is going to be the world’s next big player in back half their income. textiles,” Ross said. “Therefore, if we wish to be a However, most experts say it’s unlikely that China major player globally, we’re going to have to be there.” will respond to U.S. requests to float its currency any- While the pragmatic approach is increasingly com- time soon and almost certainly not before the 2008 mon in the industry, some textile executives continue Summer Olympics in Beijing. to ask whether the U.S. is allowing China to take ad- But even as they dismiss the likelihood of action on vantage of free-trade rules. currency, trade experts regard it as all but certain that “The potential for unfair disruption is definitely in China’s apparel and textile exports will face restraints our future,” said Avondale’s Hull. “If anybody believes by the end of the year. Domestic manufacturers and that China is not trying to manage their trade position, importers both expect the U.S. and European Union to they’re very naive.” impose safeguard quotas on at least some categories of However flawed the relationship, most experts con- Chinese goods. clude that the economies of the U.S. and China have Tom Haugen, executive director of Li & Fung Ltd., become so interdependent that both sides must tread Li & Fung’s Tom Haugen said, the $6.06 billion Hong Kong-based sourcing power- carefully on trade. “The key thing to remember is house, described the current surge in Chinese apparel “To blame China for our trade imbalance is incor- that China has been very exports as “just a natural correction.” rect,” said Deloitte’s Kalish. “To criticize their curren- suppressed by quotas….In a free “The key thing to remember is that China has been cy policy is to misunderstand the fact that they are market, China’s share of very suppressed by quotas,” he said. “In a free market, cheaply funding out deficit.” apparel…would be significant.” China’s share of apparel…would be significant.” —With contributions from Haugen also noted that placing safeguards on John Zarocostas, Geneva

trade disputes. Wen said the two sides need to “There is not much else we are doing right Chinese Firms Focus on Product work together to settle the trade disputes. now except focusing on the quality of our prod- “We should start from the general situation ucts and our prices,” said Sabrina Wang, sales By Betsy Lowther “It’s become a political issue,” said Steven of maintaining the comprehensive strategic director for Shanghai Hengying Trade Co. Zhao, a representative of the Shenzhen partnership relations between China and the The Beijing-headquartered company BEIJING — FIVE MONTHS INTO A YEAR THEY Yangtze Development Industries Ltd., which EU, strengthen dialogue and exchanges on an exports apparel accessories, including linings had hoped would present a huge opportunity exports cotton garments for use in the medical equal footing and seek an appropriate way to and buttons, to the U.S., Italy and India. to grow their businesses, Chinese textile industry in the U.S. and Europe. “A lot of resolve the trade issues,” Wen said during a Others say that, even if restrictions are manufacturers instead find themselves a companies think our government should pro- meeting with Luxembourg Foreign Minister imposed from overseas, they are certain they pawn in a high-stakes trade showdown. tect us. [If restrictions against Chinese compa- Jean Asselborn, EU External Relations will find a way around them. Now that Chinese While importers and manufacturers in the nies were to happen], it wouldn’t be fair. We Commissioner Benita Ferrero-Waldner and manufacturers have had a taste of the post- U.S. and European Union have gone to the have a competitive product, and people British Ambassador to China Christopher Hum. quota success, they are unwilling to give it up. ramparts, aggressively lobbying their govern- should be allowed to have it.” Many Chinese manufacturers said they “It’s clear that the need in the market is ments to defend their interests, Chinese Commerce officials from the Chinese gov- feel that they are unable to influence the there,” said Fair Lu, manager of the Sunlong competitors have kept a low public profile on ernment in Beijing have become increasingly debate happening abroad on the future of Textile Co., a synthetic-fiber fabric manufac- the issue of safeguard quotas. Rather than vocal in recent weeks about the threat of leg- their industry, and are instead concentrating turer with locations in Changzhou and trying to overtly influence Beijing’s response islation against Chinese textiles. on domestic issues, including a dramatic Kunshan, who is expecting sales to increase to the threat of restraints, this country’s mak- Chinese Premier Wen Jiabao told EU foreign post-quota increase in competition, which by 50 percent this year if no restrictions are ers instead are focusing on what they can ministers, who were on their first official visit to has been driving prices and profits down, imposed. “If we have to, we will find other control — like staying a step ahead of their China, that China and Europe have a good rela- and the subsequent strain on resources such ways to supply it, like going through Hong competitors. tionship and should work to resolve the textile as skilled workers. Kong or another country.” 16 WWD, TUESDAY, MAY 17, 2005

SECTION II WWD.COM SOURCING HORIZONS Figuring Out the Safeguard Shelf Life

By Evan Clark

WASHINGTON — WHILE THE CURRENT CONTROVERSY OVER IMPOSING fresh restrictions on China’s apparel and textile exports to the U.S. plays out, fig- uring out what will happen after 2008 presents an even greater conundrum. The Committee for the Implementation of Textile Agreements, an interagency federal panel led by the Commerce Department, said Friday it would impose safe- guard quotas on cotton knit skirts and blouses, cotton trousers, and cotton and man- made fiber underwear, valued at $624.5 million. Many expect more categories to have quotas slapped on them. For most, limits to China’s imports were and are an inevitability, though domes- tic producers generally see them as vital breathing room and importers see them as expensive supply-chain complications. China’s entry agreement into the World Trade Organization in 2001 allowed for countries to slap safeguard quotas on Chinese goods if they caused market dis- ruption in those nations. When the member countries of the World Trade Organization dropped the quota system Jan. 1, the use of the safeguard mechanism Eric Autor, gained greater importance, as China’s and other country’s large pools of inexpen- Auggie Tantillo, National Retail sive labor attracted importers to place orders without restraints. AMTAC. Federation. “We anticipate some type of safeguards will be put in place through 2008,” said Joe McConnell, vice president of strategic sourcing at Kellwood Co. “The exact could not control too much trade would be one of the major goals of the Global categories — it’s anybody’s guess. The most likely ones are the ones identified for Alliance for Fair Textile Trade, of which the NCTO is a member. now and probably they will be hammered until 2008.” Importers anticipate a fight. Without a specific recourse to deal directly with safeguards, Kellwood, like “The domestic industry’s going to try to keep safeguards on as long as it can,” said other vendors, is working to reduce its lead times by using fewer but larger sup- Jonathan Gold, vice president of global supply chain policy for the Retail Industry pliers and getting them to do more of the basic design functions. A shorter lead Leaders of America, which counts Wal-Mart and Gap among its 600 members. time will help the firm better react to quickly changing dynamics. Importers, with their long lead times, abhor uncertainty, which the looming In theory, trade with China would be less restricted and more normalized in possibility of safeguard quotas has brought in spades. 2009 when safeguards expire. But with its huge economic impact at home and its “Our members can’t do proper planning,” said Gold. “It’s like 2005 [and the importance to international relations, global trade is never quite that simple. dropping of quotas] never happened. It makes it very difficult for us.” Last year, Chinese imports of apparel and textiles to the U.S. were valued at $14.6 “The industry in the U.S. has been shrinking for decades,” said Nicholas Lardy, billion, a 25.4 percent jump over 2003. For the first four months of the year, Chinese a senior fellow at the Institute for International Economics. “Obviously there’s apparel and textile imports shot up 63.7 percent to 3.8 billion square meters equivalent. more to come.” The same groups representing domestic textile manufacturers that have Parts of the domestic industry will survive indefinitely, though not those focus- pushed for the new quotas are most likely to lead a push to retain some sort of ing on commodity goods, he said. In April, U.S. apparel and textile producers restraints against China. However, its tools to do so are limited and the goals are employed 666,500, a drop of 44,100 from a year earlier. broader than just curtailing the country’s imports. “Once all the restrictions are gone, whether it’s now or 2008, China’s clearly “It’s not simply the fact that they are growing in terms of the volume of exports, going to increase its share substantially,” said Lardy. it’s the enormous decompressing in the pricing scheme of things,” said Auggie That isn’t all due to low-cost labor, either. Last year, he said, China imported Tantillo, executive director of the American Manufacturing Trade Action Coalition. $4.5 billion worth of textile equipment, up from $1.2 billion in 1998. China is widely criticized for maintaining an unfair advantage through sub- “China’s going to be very tough to beat, with the combination of low labor and sides to its manufacturers, monetary polices that some experts claim keep its cur- this kind of modernization,” said Lardy. rency undervalued and lack of proper protections for workers. U.S. job losses and plant closures, which in some cases have left whole towns “That’s like giving the New York Yankees five outs every time they come to the struggling to find a new way of life, have helped elevate interest and the political plate,” said Tantillo. “Safeguards inject a little more rationality in the market- stakes in the safeguard fight. place. They keep the biggest player at bay.” “It’s getting pretty ugly,” said Erik Autor, vice president and international trade Tantillo said his group would push for further restrictions on China in 2009 counsel at the National Retail Federation. “Common sense, good economics and when the safeguards expire if the country doesn’t significantly reform its policies. good public policy play very little roll in the debate. It’s just run by sheer emotion and “Hopefully the U.S. government would use this three and a half years to recti- politics. Everybody who has a beef with China is jumping on these bandwagons.” fy this enormous, unfair situation,” he said. However, the U.S. has a limited amount of leverage over the country, said Autor. The political will to address China’s policies is strengthening, he said. “There’s only so far we can push China before it starts pushing back,” he said. “Members of Congress from every region have now been impacted,” he said. “We’re playing with a two-edged sword here. China’s not without its own pressure “There is a growing groundswell. Where this is gong to lead is anybody’s guess. At points, as well, on U.S. policy makers.” least now there is a view that there is a problem that has to be addressed.” Among these pressure points are foreign policy problem areas such as North Cass Johnson, president of the National Council of Textile Organizations, said, Korea and economic concerns such as China’s growing importance as an export “Textiles is different from other sectors in that we cannot use dumping or coun- market for U.S. goods and services. tervailing duty trade remedies against China on the products that matter most to Stephen Lamar, senior vice president of the American Apparel & Footwear us and that’s apparel imports. We don’t have the standing to bring cases. The China Association, said, “There’s an awful lot of dynamics that can change. China is the safeguard clause is the only case where we do have standing.” dominate discussion in trade politics. Three-and-a-half-years ago, China was not Johnson said creating some mechanism through the WTO so a single country the story. Last year, we were talking about India.”