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Easy Day Out SAKS PROFITS JUMP/2 A HIGH-ANXIETY HOLIDAY/10 WWDWomen’s Wear Daily • WEDNESDAYThe Retailers’ Daily Newspaper • November 21, 2007 • $2.00 Sportswear Easy Day Out Calling all Jane Birkin fans. Her effortlessly casual French style is back for spring, with designers showing soft looks with a touch of the bohemian. Here, Ya Ya Afl alo’s linen wrap sweater and jeans from Converse by John Varvatos; Minnetonka moccasins. For more, see pages 4 and 5. STYLED BY MONICA SCHWEIGER STYLED BY Jones to Shutter Toledo-Designed Anne Klein Collection By Marc Karimzadeh the plug on the collection after just which launched the designer NEW YORK — Jones Apparel Group is two seasons to focus on growing collection with much fanfare in saying goodbye to the Anne Klein the bridge Anne Klein New York February for fall retailing. While designer collection and its creative and better-priced AK Anne Klein the upscale line was never viewed director, Isabel Toledo. collections. as a volume business for Jones, On Tuesday, the apparel The move signals a major it nevertheless promised to set conglomerate said it was pulling reversal of strategy for Jones, See Jones, Page 12 PHOTO BY JOSIE MINER; MODEL: ALISSA/WILHELMINA; HAIR AND MAKEUP BY ROBIN GLASER/CELESTINE; FASHION ASSISTANT: VICTORIA COLLINS; JOSIE MINER; MODEL: ALISSA/WILHELMINA; ASSISTANT: PHOTO BY ROBIN GLASER/CELESTINE; FASHION HAIR AND MAKEUP BY 2 WWD, WEDNESDAY, NOVEMBER 21, 2007 WWD.COM Saks Profi ts Rise Sharply WWDWEDNESDAY Sportswear By Arthur Zaczkiewicz especially [in] what we would call our ‘good zone.’ Remember, aks Inc. posted robust third- we are always thinking in lux- FASHION Squarter earnings on strong ury terms, but we’ve looked at same-store sales, with officials it from good, better, best luxury In a nod to the Seventies, sun-faded, high-waisted denim and natural confident in a healthy luxury sec- price points. And I think that you 4 beachy separates are keeping things mellow this spring. tor for the fourth quarter but, at are seeing more pressure on that the same time, acknowledging a aspirational luxury consumer GENERAL “challenging macroenvironment.” — that would be our bridge price Jones Apparel Group Inc. is pulling the plug on its Anne Klein designer During the quarter, prof- points. Our entry price points is 1 collection after two seasons and will focus on bridge and better lines. its more than tripled as sales where you are seeing more of soared 14.2 percent. Results the pressure while the higher- Saks Inc. posted robust third-quarter earnings on strong same-store were driven by an 11.4 percent end luxury price points have not 2 sales, but said gross margins were fl at due to markdowns. same-store sales increase in seen a slowdown.” Giorgio Armani and Julia Roberts have joined to design a special Emporio the quarter. The bottom line Sadove said that overall, the 2 Armani (Product) Red bracelet to be sold online starting Dec. 1. also was bolstered by the fact company feels “quite good about that the retailer did not record where the fourth quarter is, but MAINSTREAM: Abbey Doneger, president of The Doneger Group, cut the a loss from discontinued opera- clearly you’ve seen some more 6 ribbon on the Henry Doneger Computer Lab at FIT, named for his father. tions — as it did in the previous price competition at the lower More than 1,000 employees of the H&M chain have won the right to be year. Gross margins, however, end of that spectrum.” 9 represented by the Retail, Wholesale & Department Store Union. were flat due to markdowns. The ceo said that, during the Management noted that its on- quarter, Saks “began to experi- The mood heading into Black Friday is grim, with stores forecasting soft line business realized a 40 per- ence a more promotional and 10 holiday sales and weak profi ts based on macroeconomic woes. cent year-over-year gain. challenging macroeconomic WEST We are always thinking in luxury terms, but we’ve looked at it Retailers in cities from Los Angeles and San Francisco to Scottsdale, Ariz., from“ good, better, best luxury price points. And I think that you 11 and Las Vegas are nervously anticipating the holiday season. International Trade Shows is included as a Section II in this issue. are seeing more pressure on that aspirational luxury consumer.” Classifi ed Advertisements.............................................................13-15 — Stephen I. Sadove, Saks Inc. To e-mail reporters and editors at WWD, the address is fi rstname. [email protected], using the individual’s name. For the quarter ended Nov. 3, environment. And this environ- business “continues to substan- net income rose to $21.6 million, ment results in some modest tially outpace the company av- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT or 14 cents a diluted share, from downward pressure on our mer- erage, posting another approxi- ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. $6.2 million, or 5 cents, in the chandised margins, particularly mate 40 percent increase during VOLUME 194, NO. 110. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one prior year on sales that climbed to in the women’s bridge apparel the third quarter.” additional issue in January and December, two additional issues in March, May, June, August, October and, November, $796.1 million from $697 million. area. In addition, while our key For the fourth quarter, the and three additional issues in February, April, and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by During a conference call with promotional events, such as ceo said the retailer expects to Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive analysts, management cautioned Friends & Family and Electronic “have a record-breaking quar- Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human that the aspirational — or bridge Gift Card events, were essential- ter in the direct business and Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail — shopper, who buys luxury ly the same year-over-year, our to continue to drive outsized Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return goods at opening price points, customers shifted more of their growth in 2008 and beyond.” undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: is pulling back. Late last month, spending to these events, caus- During the third quarter, SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE Coach Inc., which serves the as- ing some additional pressure on Sadove said top performers in the INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit pirational shopper, warned of merchandised margins.” company were handbags, wom- www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new slowed retail traffi c while Polo Management said the decline en’s shoes and jewelry as well as subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production Ralph Lauren Corp. lowered was offset by the positive impact men’s apparel, accessories and correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, its earnings outlook earlier this of unredeemed gift cards, which shoes. “We generated solid per- please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other month for similar reasons. helped keep gross margins fl at formance across all geographies 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. Stephen I. Sadove, chairman year-over-year. and store sizes,” Sadove said in a If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA and chief executive offi cer, said Sadove said the company is statement. “Our strong sales per- 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, results indicate “that our cus- well positioned for the holiday formance was achieved in spite OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, tomers are continuing to respond selling season, and he expects an of disruption associated with sev- BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED to our strengthened merchandise operating margin for the year to eral major remodeling projects, MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR selections, service initiatives and be 4 percent. “Our expectation is including our South Coast Plaza CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY innovative marketing.” that we can generate high-single- store in Los Angeles and our A SELF-ADDRESSED STAMPED ENVELOPE. During the call, one analyst digit comp-store sales growth in Palm Beach Gardens and Naples asked Sadove to offer specif- the fourth quarter on top of last stores in Florida.
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