Fantasy Island Lanvin’S Alber Elbaz Glanced Back to a Thirties Glamour Girl While Injecting Whimsy with Fun Embroideries and Glitzy Costume Baubles
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VALENTINO ON SHOW/3 THE OLSENS’ NEW JEWELS/12 WWDWomen’s Wear Daily • The Retailers’MONDAY Daily Newspaper • June 16, 2008 • $2.00 Accessories/Innerwear/Legwear Fantasy Island Lanvin’s Alber Elbaz glanced back to a Thirties glamour girl while injecting whimsy with fun embroideries and glitzy costume baubles. “It’s about the original idea of cruise, a fantasy vacation,” Elbaz said. One example: the playful cotton T-shirt and silk skirt combo shown here. For more on resort, see pages 4 to 6. Coming Under Pressure: Activist Shareholders Target Retailers Again By Evan Clark THE GADFLIES ARE BACK — and this time they’ve got deep pockets. Target Corp., Dillard’s Inc., Chico’s FAS Inc., Charming Shoppes Inc., Syms Corp. and Haggar Corp. are just some of the fashion firms that have faced, or are confronting, activist shareholder campaigns. These outsider efforts are often marked by lawsuits, battles to sell divisions or replace board members and the airing of as much dirt as can be excavated. It is all part of the deal when companies tap the public equity markets and open themselves up to See Retailers, Page15 PHOTO BY DOMINIQUE MAITRE PHOTO BY 2 WWD, MONDAY, JUNE 16, 2008 WWD.COM Saks Stock Up on Takeover Probability By Vicki M. Young for which she has a $20-per- WWD reported Oct. 17 that share target price. Baugur was eyeing Saks and that WWDMONDAY hares of Saks Inc. rose 4.2 According to the regula- executives from the Icelandic Accessories/Innerwear/Legwear Spercent to close at $12.49 in tory fi ling on Wednesday with investment fi rm had met with New York Stock Exchange trad- the Securities and Exchange the retailer’s management. FASHION ing Friday after Citigroup Inc. Commission, Baugur has paid Baugur confi rmed the report in Alber Elbaz described his Lanvin resort collection as a Frenchifi ed take issued a research note indicat- $42.2 million for the forward an Oct. 29 SEC fi ling and said it on American sportswear, with plenty of that Hamptons easy allure. ing a takeover of the retailer is contracts, and will pay an addi- might team up with Milestone 4 a “probability.” tional $194 million to purchase Resources Group Ltd. for a joint The Icelandic firm Baugur the 12.2 million shares of Saks bid. Milestone is an investment GENERAL Group earlier last week rolled stock under the contracts if they vehicle of Landmark. A new generation of activist, deep-pocket corporate gadfl ies is shaking over its forward contracts from are settled at maturity. Earlier this month, Iceland’s 1 up boards from Target and Dillard’s to Chico’s and Charming Shoppes. July 2007. The new contracts for The filing also repeated Supreme Court in Reykjavik Saks shares mature on July 30. an earlier disclosure that upheld a conviction against ACCESSORIES: Mary-Kate and Ashley Oslen have created a jewelry line Baugur doesn’t currently own Baugur has had exploratory Jón Asgeir Jóhannesson, ex- 12 under their Elizabeth and James label, licensing to Robert Lee Morris. any Saks shares. The nine con- discussions with Dubai-owned ecutive chairman of Baugur, With Tommy Hilfi ger shelving plans, Prada and the Neiman Marcus Group tracts give Baugur the right to Landmark Group, a Saks share- for wrongdoing in bookkeeping. 13 in no hurry and Ferragamo still working on it, IPOs don’t seem fashionable. acquire 12.2 million shares of holder, about the possibility of The court rejected charges that common stock at forward prices a joint bid for the retailer. The prosecutors had leveled against Stringent inventory control may be the mantra for most apparel retailers, ranging from approximately $12 fi ling stated: “Baugur expects Jóhannesson, including fraud, 14 but there is still plenty of fat to trim for better profi tability. to $23 per share. to hold additional discussions embezzlement and misleading According to Deborah with Landmark.” the market by wrong statements Weinswig, retail analyst at Under the contracts, Baugur to the stock exchange. EYE In the middle of a steamy, bustling Manhattan, Bulgari threw a relaxed Citigroup, “We view this news as has the right to acquire 8.5 Forward contracts generally an incremental positive for our percent of Saks’ stock and roll over automatically. A spokes- 20 garden party at the Elizabeth Street Gallery for its Jasmin Noir fragrance. investment thesis for Saks as it Landmark has benefi cial owner- woman for Baugur would only say increases our confi dence that ship of 1.2 percent, or nearly 1.7 the company was obliged to up- Classifi ed Advertisements.............................................................17-19 there is a probability of a take- million shares. Together, they date its regulatory fi ling because out deal in Saks’ future.” hold 9.7 percent of the retailer’s of the latest legal development. To e-mail reporters and editors at WWD, the address is fi rstname. Weinswig reiterated her “buy, common stock, should they elect — With contributions from [email protected], using the individual’s name. high risk” rating for Saks shares, to pursue a joint bid. Nina Jones WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 195, NO. 126. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, October and December, two additional issues in March, April, May, June, August and November, and three additional issues in February 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 Bottega Veneta Tops Social Status Poll by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications By Valerie Seckler Much of this affl uent crowd, Pedraza said, Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: are from middle- and lower-income back- return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: t’s not showy, nor is it splashed with logos. But grounds, with self-made fi nancial fortunes, and SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA its perception as distinctive, elegant and less “do not want to be seen as an ostentatious, ava- 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE I INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit than ubiquitous has lifted Bottega Veneta to the ricious group.” www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new top of the Luxury Institute’s just-released list of Indeed, Bottega Veneta was only the 24th most- subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production designer brands accorded the highest social status familiar luxury name of the 25 ranked as most correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other by affluent consumers. prestigious in the Luxury Institute report. (Best Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list “Bottega is subtle and inconspicuous — and known was Calvin Klein, which was number 25 on available to carefully screened companies that offer products and services that we believe would interest our readers. paradoxically has gotten some press for this,” the social status scale.) 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 THE RETURN OR LOSS OF, Milton Pedraza, chief executive offi cer of the As for other brands on the social status list, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, Luxury Institute, observed of the brand that Valentino was ranked second, followed by Prada, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED topped the poll for the second straight year. “You Chanel and Hermès. Giorgio Armani was in sixth MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR know it if you’re in the know. It’s for people who place, with Versace, Dolce & Gabbana, Gucci and DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY aren’t looking to impress others.” Louis Vuitton rounding out the top 10. A SELF-ADDRESSED STAMPED ENVELOPE. Bottega was awarded the top slot in a May Brands like Bottega Veneta and Hermès, poll by the Luxury Institute of 1,600 adults with Pedraza said, have a presence as “classic brands, a minimum annual income of $150,000, including not just trends of a season, like an ‘It’ bag. They TUESDAY: The U.S. Labor Department releases the 818 women. are seen as having lasting value.” Producer Price Index for May. WEDNESDAY: China Textile & Apparel Trade Show, New York (through Friday).