RUGBY GOES E-TAIL/3 the SUPERGIRL TRIO/8 Top Vendorwwd Pay Women’S Wear Daily • the Retailers’ Daily Newspaper • July 31, 2008 • $2.00 WWDTHURSDAY List Sportswear

The Inside: Pg. 18 RUGBY GOES E-TAIL/3 THE SUPERGIRL TRIO/8 Top VendorWWD Pay Women’s Wear Daily • The Retailers’ Daily Newspaper • July 31, 2008 • $2.00 WWDTHURSDAY List Sportswear

Case Studies Bookworms know their classics, whether you’re talking about Shakespeare or sheaths. And both will always be in style. AY Here, A.B.S. by Allen Schwartz’s polyester bow dress and Rag & Bone’s cashmere sweater. Burberry glasses and Vans shoes. For more, see pages 4 and 5.

As Industry Digests Mervyns Bankruptcy, Could Boscov’s Be Next? By WWD Staff Sources told WWD that to prevent a bankruptcy filing, ven as the industry digested Boscov’s could file for bankruptcy but after making a nearly $30 Ethe news of a bankrupt as early as Monday, depending million contribution within the last Mervyns, rumblings grew of on whether it is able to secure month, there’s a greater chance another potential Chapter 11 a cash transfusion. Sources also that additional capital might not filing by a major retailer: Boscov’s said the owning families might be forthcoming. Department Stores. inject more cash into the chain See Industry, Page 20 PHOTO BY GEORGE CHINSEE; MODEL: MELINA HUETTNER/TRUMP; HAIR AND MAKEUP BY VANESSA EVELYN AT PETRA ALEXANDRA; STYLED BY KIM FRID STYLED BY ALEXANDRA; PETRA AT EVELYN VANESSA GEORGE CHINSEE; MODEL: MELINA HUETTNER/TRUMP; HAIR AND MAKEUP BY PHOTO BY WWD.COM WWDTHURSDAY Sportswear ™ FASHION A weekly update on consumer attitudes and behavior based Geek mythology: Crisp shirting and strong graphics make the perfect on ongoing research from Cotton Incorporated 4 combo for a charming fusion of nerdy and cool. GENERAL AHEAD OF THE CLASS Even as the industry digested the news of a bankrupt Mervyns, Back-to-School Shoppers Hit the Stores Early For Value 1 rumblings grew of another potential Chapter 11 fi ling: Boscov’s. Jones Apparel Group said shares rose 11.7 percent after it posted second- Subject: Economics 101. Assignment 1: Get be flat (at $234.52, compared with $234.51 in 3 quarter results that beat estimates and unveiled a new retail concept. the most stylish back-to-school apparel for a limited 2007), as will footwear, at about 17% ($109.75, DENIM: Rachel and James Rose, owners of the premium label 18th amount of money. compared with $108.42). That increase of about 6 Amendment, are launching a diffusion line, The Beautiful and Damned. That’s the task at hand for parents this back-to- $30 expected by the NRF this year will be spent on LETTERS: As the fastest-growing U.S. metropolitan region, Dallas school season, and many appear computers and cell phones. 10 continues an aggressive retail, fashion and economic expansion. ready and willing to start their According to the Monitor, 83% homework right now, despite the of parents agree that clothing Tod’s SpA reported a 9.7 percent increase in fi rst-half revenues, with leisurely summer days still left on prices have increased from 16 momentum in its core category of shoes and its main market, Italy. the calendar. last year: 60% say denim jeans Ralph Lauren was the highest paid apparel vendor executive for the According to tracking data prices are up, 45% see increases 18 fourth straight year at $34.2 million, up 32 percent from last year. from the Cotton Incorporated in T-shirts, 52% see it in casual Diane von Furstenberg and the late Liz Claiborne now have a permanent Lifestyle Monitor™, 86% of back- slacks and 44% in woven shirts. 21 place on Seventh Avenue, stars along the Fashion Walk of Fame. to-school shoppers say they start Increasing apparel prices have buying their wardrobes before 68% of parents saying they Diane von Furstenberg, who was reelected Wednesday, will continue in her role as president of the CFDA for a second two-year term. the first day of school. These will not be able to buy as much 21 early birds should rejoice, since clothing as they did last year, one retailers are nudging the season reason apparel expenditures are EYE forward each year, and 2008 may “Back to school campaigns have estimated to remain the same. Jemma Kidd and Sarah Woodhead were among the quests at Cartier be the earliest yet. launched earlier in recent years as Styles this back-to-school 24 International Polo at Windsor Great Park, a fi xture of summer in England. “Back-to-school campaigns retailers look to extend the season season reflect the current political Classifi ed Advertisements...... 22-23 have launched earlier in recent and create a greater window for and economic climate reminiscent To e-mail reporters and editors at WWD, the address is fi rstname. of the early ’90s, asserts Abigail years as retailers look to extend repeat shopping trips.” [email protected], using the individual’s name. the season and create a greater —Casey Chroust, Cook, a Product Trend Analyst SVP, Retail Operations, Retail with Cotton Incorporated. Says WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT window for repeat shopping ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. trips,” says Casey Chroust, Industry Leaders Association Cook, “We are seeing grunge VOLUME 196, NO. 22. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Senior Vice President of Retail looks with flannel shirts and biker one additional issue in January, October and December, two additional issues in March, April, May, June, August and style jackets.” She also believes these new pieces November, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Operations for the Retail Industry Leaders Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided Association. “This year, retailers will be carrying work well with items many already have in their by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, leaner inventories. They’re looking to create an closets. “It all comes down to maximizing value Executive Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/ this season, so the garments that will do well will Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications early demand and capture the fewer dollars out Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: there. It’s all about creating mind-share followed be key pieces that can be layered and changed return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: by wallet-share.” around, like a cropped jacket, flannel shirt, soft SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA tees and updated denim.” 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE “I wish I could identify the retailer that inched INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit the back-to-school season up sooner and sooner, “It is all about great fashion and value for kids www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new but that’s irrelevant as it’s now commonplace with two-for items, layered looks, fresh plaid subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production bottoms, great polos in new colors and bold stripes, correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, among all retailers,” says Kathi O’Neil, Publisher please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other of The City Picks Group, a series of online weekly tunics and leggings,” affirms Kathy Douglas, Vice Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list publications dedicated to shopping. “And they are President and General Merchandising Manager, available to carefully screened companies that offer products and services that we believe would interest our readers. all promoting the concept of value by shopping Kids for Kmart. 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, back-to-school right now.” Embracing the traditional doesn’t mean you OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, For Karen, a mother of three in Westchester, can’t have a little fun, encourages Kate Parkhouse, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED New York, shopping early means shopping smart. spokesperson for JCPenney. “Don’t be afraid to mix 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 “Right now, I can take advantage of the deep tees, tanks and camisoles in a variety of vivid colors DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY clearance prices on summer basics like tees, khakis and rule the hallways in a pleated plaid mini or A SELF-ADDRESSED STAMPED ENVELOPE. and light sweaters while also shopping the special high-waisted jean. Polos, hoodies and cardigans are promotions for back-to-school. Start early and time-tested staples of prep school style.” you get the best value.” A great pair of jeans is a must, encourages Jen Among those who Scott, Head Buyer for shop before the first day of When are you more likely to purchase Tobi, an online retailer. In Brief school, one in three female back-to-school clothes? (2008) “Get a clean, dark pair ● J&J ACQUISITION: Johnson & Johnson has acquired Chinese respondents cites sales as a Females as that has the longest reason to the Monitor. “We life.” According to the cosmetics fi rm Dabao for an undisclosed sum. The company Before the first day of school 86% stated that the acquisition of Beijing Dabao Cosmetics Co. Ltd. offer a ‘Buy Two and Save’ Monitor, almost three from Beijing Sanlu Factory and the Beijing Dabao Co. Ltd. on certain sweaters during After the school year has begun 14% in four females affirm Staff Shareholding Committee has been fi nalized following our back-to-school launch that their next denim government approvals. “This transaction is an extension of our and that is such a successful program,” says Wendy purchase will be medium or dark blue. Scott adds commitment to China,” said Jesse Wu, president of Johnson & Thayer, Public Relations Manager for Garnet Hill. that accessories are a smart way to stretch one’s Johnson (China) Investment Co. Ltd, a business unit that was “Today’s consumer is weighing cost and quality wardrobe. “In a tough economy, a great way to established by J&J in China 10 years ago. Dabao, which marin everything she does. Value to her is buying a increase the value of your existing wardrobe is to kets a range of personal care products — including fragrances, conservative garment that she can buy for one child add a great scarf, bag or hat.” skin care, color cosmetics and hair care — under an eponymous and pass down to younger siblings in future back- “Kids want to go to school in something brand name, was launched in 1985. That same year, J&J estab- to-school seasons. Longevity delivers value.” fashionable and parents want to get the most lished its fi rst joint venture in China. Parents certainly are embracing their for their dollars,” Chroust, the retail executive, ● FUNDING PRODUCT SAFETY: The House of Representatives conservative sides; one fifth of U.S. parents have concludes. “Value is derived when you meet both passed a consumer product safety bill Wednesday that would set aside a portion of their government-issued needs and it can’t hurt to get out there at the earliest increase the funding and staffing for the Consumer Product stimulus checks for back-to-school, according to possible moment to see what’s at retail.” Safety Commission to $118 million in 2010 and to $136 million the National Retail Federation’s 2008 Back-to- by 2015, from its fiscal 2008 level of $80 million. The legisla- School Consumer Intentions and Action Survey, This story is one in a series of articles based on find- tion also would establish lower lead content standards in all conducted by BIGResearch. ings from Cotton Incorporated’s Lifestyle Monitor™ children’s jewelry and toys, and establish an online database The survey found that the average family with tracking research. Appearing Thursdays in these to allow the public to review reports about product safety from school-age children will spend $594.24 on back-to- pages, each story will focus on a specific topic as it consumers, the government and child care and health care relates to the American consumer and her attitudes providers. It also would increase the limit of civil fines to $15 school, compared with $563.49 in 2007, including million from $1.8 million, require third-party testing of all chil- apparel, electronics, shoes and school supplies. and behavior regarding clothing, dren’s products and direct the Government Accountability Apparel will comprise about 40% of back-to-school appearance, fashion, fiber selection and Office to conduct a study on the use of formaldehyde in the spending this year, but actual apparel sales will many other timely, relevant subjects. manufacture of textile and apparel products. The Senate could take up the bill this week. WWD, THURSDAY, JULY 31, 2008 3 WWD.COM Jones Beats Expectations Polo Expands Rugby’s Reach Via the Web As Firm Swings Into Black By Marc Karimzadeh cause we feel a younger audience By Vicki M. Young will be more interested in the tech- olo Ralph Lauren is ready to nological breakthroughs,” Lauren hares of Jones Apparel Group rose 11.7 per- Pgive Rugby a national stage four said. “They will have expectations Scent on Wednesday after the firm posted sec- years after its launch. to see more content, more video ond-quarter results that beat Wall Street’s esti- On Aug. 12 — in time for the back- and more fun ways to shop.” mates by a penny and unveiled plans for a new to-school shopping season — Polo is For example, rugby.com will retail concept dedicated to its own brands. launching e-commerce on rugby.com have a “create-your-own” feature And although the consumer remains cautious, with an expansive Web site that marin which shoppers can custom-de- Jones hopes to gauge the appeal of its brands by ries the lifestyle of the brand with sign a Rugby shirt, from choosing opening this October in Menlo Park, N.J., a store innovative, interactive features. their own patches and numbers to concept to house the company’s footwear, hand- The site marks the second stand- their placement on the shirt. More bag and costume jewelry, with the exception of alone e-commerce site for Polo after designs will be added to this pro- Easy Spirit. ralphlauren.com. It will offer Rugby gram before the end of the year. If successful, the fi rm plans to roll out the clothing and accessories, which The site will feature videos retail concept to other malls, particularly those will be supported with editorial where experts and employees where the brands don’t enjoy heavy penetration content, from style advice to videos offer their style advice, as well as in anchor stores. The stores would average 2,500 and blogs. The setting is designed to information on cities that feature to 3,000 square feet. exude the Rugby brand’s lifestyle — Rugby stores, from restaurants “The concept ties into women’s love for shop- preppy collegiate with a rebellious, in New Canaan to cool bands or ping for shoes,” said Wesley R. Card, president irreverent streak, which could ap- donut shops in Seattle. and chief executive offi cer. “Unless we open a peal to multiple generations beyond Polo is using a Quick Shop in- shop, you don’t get the same breadth of product,” the target twentysomethings. teractive shopping feature that al- he added, emphasizing that the concept would The new site signals how much lows visitors to see items on mov- allow Jones to control how the brands and their Rugby has evolved since its fi rst A page from Ralph Lauren’s rugby.com Web site. ing bodies in a video presentation. offerings are showcased. store opened on Boston’s Newbury The plan is to integrate the For the quarter ended July 5, Jones swung to Street in 2004. The scope of Rugby’s new site into Rugby stores with net income of $10.6 million, or 13 cents a diluted assortment has been rounded out with tweed jackets, in-store Web stations and a 24-hour interactive experi- share, from a loss of $47.1 million, or 44 cents, sportswear suitable for fi rst jobs, suits and eveningwear. ence through shopping kiosks that take up a full window in last year’s quarter. The consensus among Wall There are 12 Rugby stores nationwide. The latest opening display in stores — Boston, New York and Washington Street analysts was for net income of 12 cents a was in Natick, Mass., this month. — similar to the 24/7 interactive kiosk used at the 888 share. The prior year’s quarter included restruc- “For us, Rugby is very much the younger brother of Madison Avenue Polo store to sell U.S. Open/Polo mer- turing costs. Total revenues were down 8.2 per- Polo, and the last couple of years have really been a test- chandise in 2006. cent to $829.4 million from $903.9 million, which ing ground,” said David Lauren, senior vice president of This fall, Rugby also will kick off a program that em- included an 8.3 percent decrease in sales to advertising, marketing and communications for Polo Ralph phasizes social action and philanthropy. The company has $820.2 million from $894.5 million, with the bal- Lauren. “We opened some stores in outdoor malls, like we singled out social entrepreneurs it believes represent the ance coming from licensing income. did in [Charlottesville] Virginia, and we didn’t really feel best of its generation and is working on special, cobrand- By segment, wholesale sales of better apparel that that was the right environment, so we closed it. We ed product collaborations to benefi t underdeveloped and inched up slightly to $265.3 million; wholesale opened a couple of stores near college campuses. Some of underserved communities. The fi rst two collaborations jeanswear fell by 33.4 percent to $173 million, them have been great successes, some have not, so we have are with Blake Mycoskie of Toms Shoes and Lauren Bush and wholesale footwear and accessories rose 0.2 started to learn about different university communities. (David Lauren’s girlfriend), who has been making her mark percent to $231 million. Retail sales also rose 0.2 We opened some stores in small towns like New Canaan, with the Feed Bag initiative on Amazon.com and at Whole percent to $197.5 million. Same-store sales for Conn., which have been a tremendous success. Foods that raises funds to feed schoolchildren around the all of its concepts were fl at, but footwear store “The Web site will be our fi rst real national test of the world. “These programs run through Christmas,” Lauren comparable-store sales rose 5.8 percent. brand,” he added. said. “After that, we will identify new and up-and-coming For the six months, income was $30.2 million, or The site will accept international credit cards, though social entrepreneurs.” 35 cents a diluted share, versus $800,000, or 1 cent, there is a caveat: there must be a U.S. shipping address. There will be icons on ralphlauren.com to draw custom- in the prior-year period. Total revenues were down The site’s look underscores the Ivy League feel of the ers to the new site, and all Rugby collateral, hangtags and 9 percent to $1.8 billion from $1.98 billion. brand. It features exclusive images set against a golden, store windows will be tagged rugby.com. As for apparel offerings, Card said wholesale vintage newspaper background that gives it a sense of her- “One of the reasons we didn’t do this before is that we apparel continues to be a challenging segment. He itage without looking old. needed to build a core following,” Lauren said. “We need- noted that consumers are turning to “higher-value” The team that built ralphlauren.com also created ed to make sure that the vision of the brand is clear and items and are targeting “buy now, wear now” items. rugby.com. that it could work for a customer of any age, from a big city Meanwhile, Jones is pursuing other initia- “We are going to use our key learnings and build upon customer to a small town customer. We know it is ready for tives, such as moving forward on the newest them, but we are going to step it up as best as we can be- a national stage.” sportswear line with Rachel Roy, whose collection is sold at high-end stores. “The line has lots of potential, and we’re talk- the multihyphenated singer- ing about how to build accessories and footwear songwriter-model-actress- around it,” Card said, adding there is the possibility Fashion Scoops entrepreneur-Beyoncé’s sister of freestanding Rachel Roy stores down the road. Solange Knowles. But rather than The fi rm is also moving forward on new relat- BIRTHDAY TOAST: DKNY is feting its 20th anniversary next year promoting Armani’s signature ed category launches for L.E.I., which Card said in festive fashion — with a customized bubbly. The company is line, Knowles will be wearing is “off to a good start” at Wal-Mart. Next up for teaming up with Chandon to create a special DKNY sparkling Armani Jeans. The line, said the the brand is costume jewelry in spring 2009. Also wine, which will be a custom “Twenty Year Cuvée” with grapes designer, expresses his “vision on the agenda for fi rst-quarter 2009 through part- from a two-decade span, a custom DKNY label and special of a young, independent, casual nerships with licensees are footwear, handbags, bottle design. The $50 full-size bottle will be sold at chandon. lifestyle with a strong and cool, intimate apparel, sleepwear and sunglasses. The com and the Chandon winery in Napa, but there will be plenty fashion sensibility. Solange brand’s spokeswoman, Taylor Swift, is also de- of other opportunities to sample the DKNY blend throughout epitomizes this style perfectly and signing sundresses for Wal-Mart that Jones will the anniversary year. All guests at the spring 2009 runway brings to it that swing so evident ship from December to April. show will fi nd a full-size bottle on their seats, and mini-bottles in her new single, ‘I Decided.’” And fi nally, the company rolls out its Nine Loves of the drink will be served at anniversary events throughout Knowles’ second album, “Sol- loyalty program at Nine West in the fall, one that next year. Guests will also be handed a special custom DKNY Angel and the Hadley Street is interactive with consumers through e-mail. cooler bag complete with four mini-bottles. And for the Dreams” will be released on Aug. According to Card, it will feature marketing promo- following holiday, the company is cooking up a custom gift 26. Armani is no stranger to the tions in connection with sales at Nine West stores item to accompany the full-size bottle. Knowles family, as the designer and online. Solange Knowles chose Beyoncé for the Emporio While orders have been conservative for the COUPLES NIGHT: Charity party hoppers, take Armani Diamonds advertising third and fourth quarters and inventories kept note: On Saturday night, there’s another campaign last year. Solange, 22, will begin her European press lean, Card said the company is positioned for the soiree just a stone’s throw away from ArtWalk tour in London at the end of July. holiday with “good gift-giving items.” NY’s cocktail benefi t for the Coalition for He emphasized that “there will be business in the Homeless in Sagaponack, Southampton. TRIPLE THREAT: Usher threw a party at Tiffany & Co. in Atlanta the fourth quarter,” but noted that margin pros- American Eagle Outfi tters’s Martin + Osa on Friday night to celebrate his expanding roles as entertainer, pects were unclear. label is holding an event in partnership with philanthropist and entrepreneur. The event, which drew 150 Jones reconfi rmed its expectations of earnings nonprofi t art organization Creative Time. The people to the Phipps Plaza store, celebrated Usher’s New Look per share from continuing operations, before theme? It’s all about the two summertime C’s: Foundation, which runs camps for disadvantaged children. Usher special items, to be between $1.20 and $1.35. couples and cocktails. The amorous motif was joined by wife Rameka Raymond, both in Tiffany jewelry Jones’ shares ended the day at $16.66, up $1.75, stems from the line’s inspiration in early loaned for the event. Others guests included Tasha Smith, Hill as the Dow Jones Industrial Average advanced 20th-century husband-and-wife adventurers Harper and music mogul Michael Mauldin, Jermaine Dupri’s father. 186.13 points, or 1.6 percent. The Standard & Martin and Osa Johnson. Though the guest Usher said Tiffany is a “favorite place to buy gifts, especially Poor’s Retail Index declined 1.17 points, or 0.3 list certainly isn’t limited to pairs, expected silver spoons for babies,” but he also loves Saks Fifth Avenue for percent. Among the larger declines in the appar- couplings include Jonathan Adler and Simon jewelry for his mother. Among his other favorite shopping haunts, el sector was Hanesbrands, which closed the day Doonan, Eric and Kimberly Guilfoyle Villency and he cited Neiman Marcus and Target. “I’m a simple guy,” he at $22.22, down $5.04, or 18.5 percent. The compa- DKNY’s Chuck and Candy Pratts Price. said. “I like Calvin Klein, for jeans and undershirts.” About those ny said after the close of the market on Tuesday sparkling undershirts, when asked about his fragrance launch last year, that it had more than doubled its second-quarter wine with SISTER ACT: The latest addition to Giorgio he hinted at future brand extensions, mentioning lingerie as a profi ts, but had fallen below consensus estimates Chandon. Armani’s team of fashion ambassadors is possibility, along with sunglasses and other accessories. for the period. 4 WWD, THURSDAY, JULY 31, 2008

Ben Sherman’s cotton shirtdress and cardigan. Burberry glasses; Bass shoes.

Juicy Couture’s cotton tweed coat and cotton and silk cardigan worn with Edie France’s cotton blouse and dVb’s cotton and spandex jeans. Burberry glasses; Juicy Couture shoes. : ALEXANDRA CASEY : ALEXANDRA PHOTOS BY GEORGE CHINSEE; MODEL: MELINA HUETTNER/TRUMP; HAIR AND MAKEUP BY VANESSA EVELYN AT PETRA ALEXANDRA; FASHION ASSISTANT FASHION ALEXANDRA; PETRA AT EVELYN VANESSA GEORGE CHINSEE; MODEL: MELINA HUETTNER/TRUMP; HAIR AND MAKEUP BY PHOTOS BY WWD, THURSDAY, JULY 31, 2008 5 WWD.COM

Michael Stars’ wool Acne’s silk and cashmere cardigan and cotton over Sunner’s cotton dress. Paul top, worn with J Girl by Frank glasses; J Brand’s cotton and Acne bag. polyester denim shorts.

Original Penguin’s silk and cotton blouse with Tt’s cotton sailor pants. Tommy Hilﬁ ger socks.

Geek Mythology Crisp shirting and strong graphics make the perfect combo for a charming fusion of nerdy and cool. — Kim Friday 6 WWD, THURSDAY, JULY 31, 2008 WWD.COM Denim Report Bill Gives Boost 18th Amendment Branches Out With ‘Beautiful’ Line To African Denim By Patty Huntington The Colette, The Yoko By Kristi Ellis SYDNEY — Rachel and James Rose, a high-waist fl are jean. the husband-and-wife team behind the style. WASHINGTON — The House passed two-year-old 18th Amendment premium a broad trade bill Tuesday night that label, are looking to capture a wider au- would benefit companies making denim dience with a diffusion line dubbed The apparel in sub-Saharan Africa, a region Beautiful and Damned. that has been losing orders because of a The line launched this week exclusively punitive provision in a U.S. trade pref- with Australian high street chain Sportsgirl, erence program. which is featuring six styles in a variety of The multipronged bill could also washes at 40 of its 106 stores here. With pric- help domestic textile producers boost es ranging from 150 Australian dollars, or their cotton fabric exports to the $142 at current exchange, for shorts to 170 Dominican Republic. Additionally, it Australian dollars, or $160, for jeans, The gives more fl exibility in the use of third- Beautiful and Damned retails for roughly country fabrics to U.S. apparel manu- half the price of 18th Amendment. facturers that produce certain cotton The Roses are counting on the lower bottoms in the Dominican Republic. price point to entice a larger and young- The Senate could take up the bill er customer base. It’s also a recognition this week before Congress adjourns for of the diffi culties being encountered in a month-long recess. the global retail arena, particularly in “This bipartisan bill helps reaffi rm America. Rachel Rose acknowledged our commitment to trading partners that 18th Amendment expanded too rap- and strengthen our existing trade pref- idly in the U.S. This was compounded by erence programs,” said House Ways & an economic downturn that ultimately I guess is a good thing for our brand,” said Next week, Rose will take The Means Chairman Charles Rangel (D., forced the company to pull out of more Rose, a former premium jeans distributor Beautiful and Damned’s second season to N.Y.). “These provisions will help cre- than 100 boutiques and left it with a debt who created 18th Amendment in collabora- London, where negotiations are under way ate incentives for the purchase of U.S. of 500,000 Australian dollars, or $471,636. tion with her husband and Sydney fashion for an exclusive deal with Topshop that goods, supporting businesses and work- The U.K. and Japan now represent the designer Rebecca Dawson. could see the line in stores by Dec. 15. ers here at home while also providing company’s largest markets. “But there’s a lot of consumers, espe- The second season has been expand- valuable benefi ts to workers and com- “Retail is dire [in the U.S.],” said Rose. cially in these economic times, who don’t ed to 13 styles and is anticipated to re- panies abroad.” “We’re spread across 20 markets, but a lot want to or can’t really afford to buy a jean tail in the U.K. for between 85 pounds, or The bill would eliminate a stip- of Australian labels who may only export for that much money,” she added. “So I $168, and 120 pounds, or $237. The col- ulation in the African Growth & to the U.S., I’d hate to think what situa- saw an opportunity to run something at a lection features new silhouettes such as Opportunity Act that requires U.S. ap- tion they’re in. If we didn’t have things like lower price point that was still quite edgy the Bonnie low-rise cutoff short and the parel importers to use a minimum of Sportsgirl in the pipeline and if we had and directional. We wanted to attract the Matahari high-waisted fl are, with some of 30 million square meter equivalents shareholders, we would probably have gone younger customer, as well. We felt that we the original styles given directional treat- of African-produced fabric in their ap- under with what’s happened in America.” had some designs that weren’t necessar- ments such as acid washes. parel or lose a benefi t allowing them to The 18th Amendment line hit the ground ily right for 18th Amendment that would The Beautiful and Damned is not also use denim fabric from other coun- running after its February 2006 launch appeal to younger girls.” the Roses’ only iron in the development tries, such as China, and import to the and is now generating between 5 million The Beautiful and Damned is named fi re, though. U.S. duty free. Australian dollars, or $4.7 million, and after the F. Scott Fitzgerald novel of the The company recently moved all its Importers, concerned they would 7 million Australian dollars, or $6.6 mil- same name. The book was published in manufacturing to Turkey and will unveil lose the third-country fabric provi- lion, in wholesale business. The line’s 1922, two years after the 18th Amendment 18th Amendment knitwear, tailoring and sion because the U.S. International retro-glamorous styles, named after silver- to the U.S. Constitution established men’s denim for spring at Tranoï in Paris Trade Commission determined in screen legends such as Lauren Bacall, Rita Prohibition, which provided the inspiration in October. A children’s wear line is also July they had only used 21.1 million Hayworth, Gina Lollobrigida, Ginger Rogers for the name of the Roses’ fl agship brand. in the pipeline. SMEs of African denim fabric in fi scal and Jean Harlow, were swiftly picked up by Like 18th Amendment, The Beautiful Denim will, however, remain 18th year 2007, started cutting back jeans 300 retailers in 20 markets. The high-waist- and Damned boasts vintage washes and Amendment’s core product, representing orders in many African countries ed Lollobrigida skinny leg and high-waist- detailing, such as a scarab logo on the 60 percent of the spring range. this year, according to Paul Ryberg, ed Colbert fl are became bestsellers. Some waistbands and the brand’s name em- “We’re always going to be denim,” said president of the African Coalition London boutiques had waiting lists at one broidered on the pockets. Styles are also Rose. “But Rebecca was originally a fash- for Trade, a nonprofi t association of point, with the brand proving popular with named after iconic women. There is the ion designer. She’d never done denim be- African fabric and apparel producers celebrities such as Kate Bosworth, Jessica Yoko low-rise flare; the Colette high- fore. We’ve tried to hold out as long as we and trade groups. Biel and Mischa Barton. waisted, lean-leg jeans; the Coco high- can because we wanted to crack the denim. Ryberg said denim apparel imports “We have a cult following with the ‘It’ waisted short shorts; the Plath skinny- And this is the fi rst season that we feel that from the region fell 20 percent in the girl, the real directional-type girl, but we’d legged style; the Cleopatra A-line skirt, we’ve got the denim to where we want it to fi rst fi ve months of the year. For the year never kind of penetrated below that, which and the Scarlett low-rise skinny jeans. be. So we feel ready to do fashion.” ended May 31, apparel imports from the region totaled $1.2 billion, or 332 million SME, down 9.3 percent from the previous year. “There has been a dramatic drop- Jag Jeans Launches Pair of Firsts for Fall off in U.S. jeans orders since the ITC issued its determination this month,” By Kavita Daswani Although Bates declined to reveal the Ryberg said. “It became obvious that cost of the campaign, he said it was “not eliminating the provision was the only LOS ANGELES — Jag Jeans, the Redmond, far away from a million dollars.” option at this point. Even African denim Wash.-based line of affordably priced The ad campaign will bow before producers agreed because they started denim styles, is pairing its first national the October rollout of Jag Sustainable losing all of their business.” advertising campaign this fall with the Organics, a limited offering of knits made Julia Hughes, senior vice president test launch of a new organic offering. of sustainable bamboo and organic cot- of the U.S. Association of Importers of The brand, part of clothing conglomer- ton. The 14 styles include T-shirts, sweat- Textiles & Apparel, said, “If the Senate ate Hartmarx, will start with single- and shirts, hoodies and bottoms in soft fab- acts, I think we could very well see double-page ads in magazines such as O, rics and colors like winter whites, pale some of the companies who had held The Oprah Magazine and In Style start- purples, pinks and greens. back placing business think again about ing in September. “It’s all about the hand of the fabric putting orders back into Africa.” “Jag has been a well-kept secret,” said and colors that are very wearable,” said Another aspect of the legislation Barry Bates, divisional director for Jag Bates. “We wanted them to be things that establishes a pilot program in the businesses. “Thousands of women know people have no problem putting with an Dominican Republic to encourage the brand and make multiple purchases. existing top or bottom.” manufacturing of cotton bottoms by U.S. But we wanted to take it out of the under- Wholesale prices range from $15 to fi rms by allowing more third-country fab- ground and really get it out there.” $19 for T-shirts, $27 to $35 for hoodies and ric usage. The U.S. and the Dominican The black-and-white ads, developed knit tops, and $27 for knit pants. Those Republic are partners in the Central by Foundation Design in Seattle, come are in keeping with the denim offerings American Free Trade Agreement. in a few variations, all featuring several that wholesale at $36.50. The bill also extends through women together, with a line or two of Sustainable Organics will be in about An image from the brand’s fi rst ad campaign. December 2009 the Generalized copy. One ad shows two friends having 25 percent of all Jag doors, which in- System of Preferences, a trade pro- a drink, with the copy reading: “Finally cludes majors such as Bloomingdale’s, people are pulling back, this is a great gram that promotes economic growth the feud between fashion and fi t is over. Nordstrom and Von Mauer. Bates said if opportunity to expose ourselves a little in developing countries and gives And let’s just say the future looks good, consumers respond as well as he thinks, more and get our customer base expand- duty-free entry to 4,650 products, in- really good.” the offering will be expanded in breadth ed. And the Sustainable Organics line cluding jewelry, from 131 countries “The ads are all about image and not and availability. comes at a time when things have gotten and territories. It does not include about product,” said Bates. “We have to “We have these two new endeavors a little bit too mundane in stores, and we apparel imports. convey again who we are and wanted to between advertising and the sustainable want to bring something a little new and — With contribution from do cool ads with a nice message.” line,” he said. “At a time when a lot of very today.” Liza Casabona

8 WWD, THURSDAY, JULY 31, 2008 WWD.COM The Beat It’s a Bird, It’s a Plane, It’s Supergirl

By Julee Kaplan Laura Poretzky, Shoshanna Lonstein Gruss and Alice Roi. upergirl apparently likes to shop contemporary. S After working on several fashion collaborations over the years, Warner Bros. is moving full-steam ahead with a long-term, global Supergirl branded contemporary sportswear line, ready for resort selling. The line is designed by the trio of Shoshanna Lonstein Gruss, Alice Roi and Laura Poretzky. The three designers have known each other for years — they’re childhood friends who grew up in Manhattan and knew each other through the New York private school Supergirls’ scene. Lonstein Gruss, who runs her patent Shoshanna contemporary line; Roi, who leather has her signature brand, and Poretzky, motorcycle owner and designer of Abaeté, came to- jacket, gether to collaborate with Warner Bros. cotton after being approached by Marc Beckman, graphic founder of Designers Management Agency, T-shirt and who put the deal together. cotton skirt. Beckman, who is married to Roi, said Below: that when Warner Bros. ﬁ rst called him A wool with the idea for a Supergirl fashion line, crepe he thought it was a silly idea. But after dress. giving it more thought, the proposal grew on him. Stretch cotton A stretch cotton “I started to think of a nonliteral in- twill skinny twill dress. terpretation of Supergirl and it started to jeans with belt make more sense,” Beckman said. and cotton He presented the idea to Roi, who im- gingham mediately thought of her other designer blouse. friends, Lonstein Gruss and Poretzky. “They all knew each other growing up, and all have their own businesses and own signature styles,” Beckman said. “I saw them as a good super team.” Roi is known for her downtown- inspired edgy designs; Lonstein Gruss made a name for herself with her playful contemporary dresses, and Poretzky has become known for her clean, more uptown-looking collections. “[Warner Bros.] gave us some direction and we decided to part ways and each come up with some ideas for the line,” Lonstein Gruss said. “When we came together, we all picked out what we liked about each other’s designs and mixed it all together.” Poretzky continued: “We took pieces from our lines, our best ideas from the past, and put them together to create this line, which is truly representative of all of us.” While their names do not appear anywhere on the labels or the garments, all of the designers agreed their signatures are pretty clear — there’s a patent leather motorcycle jacket (very much inspired by Roi’s downtown aesthetic), a gingham romper (which has become a signature in Lonstein Gruss’ collections) and a pleated wool dress (clearly inspired by Poretzky’s uptown look).

The voices of the girls behind the symbol“ of empowerment will be the three designers. — Barry Ziehl, Warner” Bros. Consumer Products PHOTOS BY GEORGE CHINSEE PHOTOS BY “When we were creating the line, we talked a lot about how we would wear it,” Lonstein Gruss said. “We all worked to push each already had a strong retail presence. other into new directions, which helps us a lot when it comes While details of the marketing strategy for the brand are still being to our own collections. Laura and I never thought we would be worked out, Ziehl said he plans to have Lonstein Gruss, Roi and Poretzky putting Alice’s metal studs on a dress, but mixing those things at the forefront of any sort of marketing campaign. worked well in the end.” “Their story as three successful designers who are longtime friends from Roi added, “I never thought I would be working with lace, but New York is in itself inspirational,” he said. “All three girls are really open I think it looks great. It’s really three different perspectives, all to being spokespeople.” wrapped into one collection.” Beckman said the deal is for the long term and will include multiple catego- The Supergirl shield logo is placed subtlety throughout the collection ries. He is hoping to launch Supergirl fragrance, footwear, children’s wear, outerwear, — embroidered on a button, branded on a snap or stamped on a small swimwear, handbags and other accessories. Most likely, these will be through licensing leather patch on the pocket of a pair of jeans. The fi rst collection is made deals, since the three Supergirl designers are also busy working on their own lines. up of about 35 pieces and includes wool day dresses, silk party dresses, The collection, which wholesales between $23 and $193, is being targeted to silk blouses, cotton skirts, patent leather jackets, a twill trenchcoat and high-end department and specialty stores worldwide. Warner Bros. plans to pre- cotton twill denim jeans. view the line at the MAGIC show in Las Vegas next month. While Supergirl is as a fi ctional comic book heroine and the female While this isn’t the fi rst Supergirl branded collection, it is by far the most ag- counterpart to Superman, Barry Ziehl, senior vice president of worldwide gressive, as industry sources estimate the new line could bring in about $10 million marketing for Warner Bros. Consumer Products, said the line has nothing in fi rst-year wholesale volume. Warner Bros. is known for lending its large archive to do with the character. of characters to fashion. Supergirl in particular has been on Junk Food T-shirts and “The whole idea behind the Supergirl shield is a feeling of empower- Havaianas fl ip-fl ops, while characters from Tweety Bird to Batman have been selling ment — when a girl wears the clothing, she will feel empowered. That’s on apparel at retailers ranging from Kmart to Kitson. what we want to get across with this collection,” he said. “The voices of the Superheroes in general have been a major trend in fashion — “Superheroes: girls behind the symbol of empowerment will be the three designers.” Fashion and Fantasy” was the latest exhibit from The Costume Institute at the Ziehl said that, when the idea came up to do a Supergirl fashion Metropolitan Museum of Art in New York, and contemporary designer Diane von line, he wanted to make sure to pick a group of female designers who Furstenberg said Wonder Woman was the inspiration for her holiday collection.

10 WWD, THURSDAY, JULY 31, 2008 WWD.COM search of less costly living. M RO A rendering of Vitruvian Several new mixed-use projects are located 20 to 30 F R E Park in Addison, Tex. T miles north of Dallas in once-sleepy farming towns like T

E L

8 0 Murphy, Frisco, Fairview, Melissa, Princeton and Prosper 0 2 1, Y 3 JUL being transformed with upscale shopping plazas. DALLASDALLAS Still, some real estate brokers don’t foresee overstor- Pages 10-14 ing or a space glut, citing the area’s diverse and growing industries, low cost of living, inexpensive housing, a continual fl ow of new residents, a young population and new corporations relocating to Dallas, like ATT, which is moving its headquarters from San Antonio. Developers and retailers already have added about 1.7 million square feet of shops in 2008, equal to the square footage of a single large regional shopping mall, according to The Weitzman Group, a Dallas-based real estate advisement and brokerage fi rm. Weitzman projects that in 2008 some 4.2 million square feet of retail space will open in the DFW area. In comparison, last year developers added 3.8 million square feet of space. “The 2008 construction has been kept in check due to the fact that these regional projects are opening in phases, instead of all at once,” said Herb Weitzman, the fi rm’s founder. “Thanks to the Dallas area’s broad-based economy, I really don’t think the city is or will become overstored and I think we’ll avoid the recession. Our leasing is up over last year. But we’re not immune to overstoring, either. We’re seeing some retrenchment from lenders who have backed away from offering large amounts of credit and requiring now more equity, more due diligence and more pre-leasing — money is not as loose as it used to be,” affi rmed Weitzman. Other real estate brokers disagree, believing Dallas is poised for a huge retail space glut. “Potential concern for the [Dallas] retail market is that the number of retail projects currently under construction may result in a satura- tion of new space. Currently there are nearly 12.8 million square feet of retail space in the construction pipeline; this is up from last year, when approximately 11.7 million Fighting the Downturn square feet was under way. Time will tell if demand will be able to keep up with the expected deliveries,” reported By Rusty Williamson Dallas offers more shopping and retail venues per real estate brokerage fi rm CB Richard Ellis. capita than any U.S. city, according to the City of Dallas, “North Texas is better positioned than any other re- THE FASTEST-GROWING U.S. METROPOLITAN RE- which claims 26 square feet of retail space for each per- gion of the country to ride out the recession of 2008,” said gion continues an aggressive retail, fashion and eco- son in the metropolitan area, compared with the nation- Bernard L. Weinstein, professor of applied economics nomic expansion that so far has not been battered by al average of 14 square feet per person. and director of the Center for Economic Development recession, slowdown or becoming overstored. Much of the new Dallas-area retail construction is in and Research at the University of North Texas, Denton. It’s not quite a walk in the park, however, as funding open-air lifestyle shopping “Importantly, the basic indus- for new retail projects is becoming harder to land, owing districts, featuring upscale tries in north Texas remain to the national credit and lending crunch. This has re- housing, hotels, entertain- healthy. Defense-related man- sulted in a delicate balancing act for lenders, developers, ment and office space. ufacturing continues to ex- retail tenants and, ultimately, price-savvy consumers. Freestanding stores in power pand. The information tech- Before granting large lines of credit, many lenders centers — often in suburban nology sector has rebounded now demand extensive pre-leasing and marketing proof areas that are understored — strongly from the ‘tech wreck’ that a project has retailer as well as consumer drawing also are rising in popularity. earlier in the decade. DFW’s power and isn’t likely to fail. According to fi gures re- role as a major logistics cen- Glorypark, a $500 million lifestyle and retail project leased July 9 by the Federal ter continues to increase in planned in Arlington, near the new Dallas Cowboys sta- Reserve Bank of Dallas, the tandem with growing global dium under construction, was put on hold in May due to city’s economy continues to exports from Texas. lack of fi nancing and developers’ inability to get fi rm pre- grow, thanks to its highly di- “The Dallas retail mar- leasing commitments from potential anchor tenants. versifi ed and growing eco- ket will continue to do “We’re in the most diffi cult credit crunch that I’ve nomic infrastructure and A rendering of the planned Tanger Outlet Center in Irving, Tex. reasonably well compared seen in the last 20 years,” said Glorypark co-developer job growth, with the biggest [with] the rest of the U.S. Tom Hicks, who also owns the Texas Rangers baseball industries in the Dallas area including energy, retail, We’re still creating jobs here, our employment base team and Dallas Stars hockey team. manufacturing, high-tech, health services, education continues to grow and we’re seeing a high level of The Glorypark abeyance followed the May announce- and banking. household formation. Many experts have said that the ment that developer Ross Perot Jr.’s Hillwood development The Dallas Fed reported employment growth in May Dallas-Fort Worth metro region will continue to be the company had put a hold on construction of the 43-story 2008 rose 2.1 percent with employers adding 3,700 jobs. fastest- growing major metro market for the next 30 Mandarin Oriental hotel and condominium tower in the The ubiquitous construction cranes crowding the area years. I agree with that assessment. I think we’ll avoid Victory mixed-use neighborhood near downtown Dallas. attest that developers are racing to complete 20 million the recession but we’ll see a slight slowing and will Perot cited volatile fi nancial markets as a major fac- square feet of retail space to open from 2010 to 2012 — continue to outperform the rest of the country.” tor in the decision on the Victory development, where despite the economic malaise affecting the country. Tom Hicks is also a partner. New shopping and mixed-use venues in the metro- Despite retrenchment on some high-profi le projects, plex are typically in higher-income neighborhoods and many developers, armed with fi rm pre-leasing commit- suburbs, in some instances with median household in- Growth Spurts ments, are upbeat and comes over $100,000. New retail projects in and near Dallas are thriving. Here’s a roundup. willing to go forward In May, UDR Inc., with at least the first a Denver-based retail, ● Vitruvian Park, a $1 billion lifestyle project in Addison, plans phases of projects. lifestyle and commer- to open in six phases over the next several years, including at Tanger Outlets of Thanks to the Dallas area’s broad- cial development com- least 300,000 square feet of retail space and offi ces. Greensboro, N.C., re- pany, broke ground on ● Tanger Outlet Center, Irving, featuring designer apparel, is set vealed plans in March “based economy, I really don’t think the Vitruvian Park, a $1 bil- to open by summer 2009. to build an upscale out- lion multifamily, retail ● Uptown Village at Cedar Hill opened its fi rst phase in March let shopping center in city is or will become overstored and and commercial project with 300,000 square feet of retail. Additional space is slated to Irving, its third in the in the Dallas suburb of be added in the next year or two, to total 725,000 square feet. state. In Irving, the new Addison. Set on 99 acres, ● Murphy Marketplace, a regional center in the north Dallas 380,000-square-foot I think we’ll avoid the recession. Our Vitruvian Park will have suburb of Murphy, plans to open by the end of this year with Tanger center plans to more than 300,000 square 400,000 square feet of retail. capture what it calls an leasing is up over last year. feet of retail and offi ce ● Little Elm Towne Crossing will be a 200,000-square-foot underserved market: ” space and is one of the center in the Dallas suburb of Little Elm. consumers who seek biggest redevelopment ● City Lights, a mixed-use lifestyle center on Live Oak Street and enjoy shopping at — Herb Weitzman, Weitzman Group projects in the area. in downtown Dallas, will feature 200,000 square feet of retail designer outlet malls. The fi rst phase of space and 320 apartments in phase one. “We feel that Dallas-Fort Worth metro is growing rapidly Vitruvian Park is slated to open in 2010, with comple- ● Mooreland, a 272-acre development in the north Dallas and has a very sophisticated customer base that craves de- tion of all phases expected by 2017. community of Prosper, will cost $650 million and include signer fashion but is also looking for value. We think it’s an The DFW area boasts a median household income of a 10-acre lake, a public amphitheater and green space in excellent market for us. In Irving, we’re going to be located $54,778, compared with $46,448 for Texas and $49,256 for addition to a large percentage of retail space. The fi rst phase is next to Texas Stadium, now home to the Dallas Cowboys, the U.S. The metro area’s current population of 6.1 mil- planned to open in 2010. but that will be vacant next year when the Cowboys move lion is projected to grow 9.7 percent from 2007 to 2012. ● Murphy Plaza, a 150,0000-square foot retail complex, is to their new stadium in Arlington. The city of Irving has Developers are snatching huge parcels of land in expected to start construction by yearend with phase one plans to dramatically revitalize the area with new and ex- mostly underdeveloped rural towns on the fringes of opening next spring. citing shops,” said Steven B. Tanger, president and chief Dallas, which are growing at a seemingly exponential — R.W. operating offi cer of Tanger Factory Outlet Centers Inc. rate due to families and corporations relocating in

12 WWD, THURSDAY, JULY 31, 2008

FROM ER T “This is not the year necessarily that you will see growth,” said Crawford Brock, owner T E

8 of Stanley Korshak luxury store and The Shak boutique. Brock slashed the spring inventory 0 20 1, JULY 3 DALLAS of women’s designer clothing 40 percent, which he considers an “overreaction,” given that the season’s sales fell only 9 percent. He made a 10 to 15 percent cutback in fall goods. The stores have seen a little less traffi c, Brock acknowledged, yet sales are up in shoes, cosmetics, home, men’s, jewelry and The Shak, which specializes in contemporary and young designer. “We’re up in July,” Brock observed. “You still have to be on your best game, but you Retail Holds Up have these anomalies. We’re having a great reaction to early [fall] receipts. And The Shak is doing unbelievable. This month, it’s up 47 percent.” By Holly Haber NorthPark Center has had a consistently strong year, with sales up 7.7 percent through May, according to Christine Szalay, marketing director. allas merchants are optimistic about fall, thanks to strong response to early de- Dozens of stores have opened since the mall expanded in 2006, with Roberto Dliveries and brisk business in one of the hottest months of July on record, when Cavalli and Fresh on tap for fall. temperatures have averaged 100 degrees. “June sales are not in yet — but traffi c remained up through the month, so I do not “We’ve been shocked at the number of sweaters and coats we’ve sold,” said Brian expect any changes,” Szalay asserted. Bolke, co-owner of Forty Five Ten luxury emporium, where spring business was up Business at the Galleria about 5 percent. “It’s real investment dressing. They want something they can live in Dallas mall in north Dallas is and enjoy, and not only wear once.” picking up, said Angie Freed, The entrance to the Neiman Marcus fl agship. While nobody is exactly popping Champagne, the retail business here fared better senior marketing manager. than nationwide, according to merchants and analysts. “We’ve been fortunate to not “For the past several months, our Texas stores have done well relative to store per- suffer the same economic formance in other parts of the country,” said Ginger Reeder, vice president of Neiman woes as the rest of the coun- Marcus Group, where overall comparable-store sales fell 2.4 percent in June. try,” she noted. “While we She declined to elaborate, but industry sources said the downtown fl agship is doing were flat for the first few particularly well and business is holding at Neiman’s NorthPark Center store, which months of the year, sales does $180 million in annual sales. have been in positive terri- Supported by oil and gas wealth and a construction boom, the Dallas economy tory the past few months.” continues to grow, though at a slower rate than in the past few years, noted Terry Just Cavalli, Via Clower, associate director of the Center for Economic Development and Research at Montenapoleone, +IT, Lush the University of North Texas. and Adidas will open this “We still are creating jobs and overall income growth in this area,” Clower noted. summer and fall at the com- “This does not mean there are not some threats out there. We are the headquarters of plex, which has 200 stores, a AMR Corp., parent of American Airlines, and as they trim their workforce, certainly hotel and offi ces. some of that will [affect us].” Jackie Stewart, who man- As in other cities, foreclosures are up in Dallas — 18 percent in May compared ages and is a partner in with 48 percent nationwide — and people are feeling the pinch of infl ation. Highland Park Village and “We have serious shoppers who are still spending, but the people who were brows- Preston Royal Shopping ers are not browsing,” observed Connie Segal, owner of Elements contemporary to Center, said overall, the cen- designer store in the affl uent Park Cities neighborhood. ters are “hanging in there re- “Even some of our wealthy customers are more cautious. But there is still a lot of ally great.” Judith Ripka and money out there, and a lot of people in our area are not in the mortgage crisis.” Loro Piana will both open at July is up 25 percent, she said, though Elements’ spring business was off 10 to 15 the Village this fall. percent this year against strong numbers in 2007, which she attributed to customer “We have a clientele that indifference to bulky styles as well as the economy. is in oil and gas, and when Given macroeconomic pressures and election-year jitters, Segal and other buyers the price goes up, that cer- said they trimmed fall inventories 10 to 15 percent and were pickier, selecting versa- tainly doesn’t hurt our busi- tile pieces that had value and longevity and special items worth a splurge. ness,” Stewart said.

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410.234.0782 t primeretail.com WWD, THURSDAY, JULY 31, 2008 13 WWD.COM It’s been tougher at Mockingbird Station, a mixed-use center of primarily moderate opment, said Susie Calmes, creative director. Calmes, formerly director of Tootsies’ and better-price retailers, including trendy independents plus Gap, Victoria’s Secret, Dallas unit, brought her extensive retail experience to LFT this summer. Urban Outfi tters, American Apparel, Ann Taylor Loft and others. “We are a little bit ahead and staying right on track,” Calmes said. “In my experi- “Sales are down for the year, which is no different from other retail centers, due ence and from talking to other retailers, we have not seen the drop-off in the women’s to the slowdown in the economy, rising gas prices and the fact that this is an election business that they have in other places. I don’t think Dallas has been hit as hard as the year,” said Pam Baker, general manager. “Retailers remain positive and understand rest of the country.” that this is a repercussion of circumstances that are out of their control.” Calmes added that she expects LFT to retain its edge, noting she is picking up The Station added 23,000 square feet of retail space in March, but the expansion is Jason Wu and Calvin Klein Collection and expanding the inventory of Diane von vacant except for a Sunglass Hut. In addition, Lululemon Athletica has signed a lease, Furstenberg. She’s also adding bigger sizes — up to 12 — and looks with sleeves to fi t a Station spokeswoman said. a broader clientele to age 50. LFT, a 30,000-square-foot fashion haven for women and men that opened 16 months Business has topped sales goals every month at V.O.D., said Jackie Bolin, co-owner ago, is slowly but surely building business downtown at the new Victory Park devel- with Liz Thompson. The hip fashion boutique opened last fall at Victory. “Our customers seem to be in great spirits, and to be honest with you, we seem NorthPark Center to be selling the more exclusive, special — and usually the most expensive — items fi rst,” Bolin said. “Our numbers have been solid. This is Texas, after all.” VITAL STATS NUMBER OF PEOPLE WHO MOVED TO DALLAS-FORT WORTH BETWEEN 2006 AND 2007: More than 162,000 ANNUAL VISITORS TO THE METRO AREA: 22.3 million AMOUNT THEY SPEND: $7.4 billion RANK AMONG MOST-VISITED U.S. CITIES: 10th NUMBER OF HOTEL ROOMS: More than 65,000 OCCUPANCY RATE: 60.3 percent ● One in 10 Dallas workers is employed in the hospitality industry. ● The frozen margarita was invented in Dallas in 1971 when restaurateur Mariano Martinez mixed the tequila cocktail in a soft- serve ice-cream machine. ● Southfork Ranch of “Dallas,” the prime- time soap that stereotyped the city as the land of big hair and brash wealth, is still a popular tourist attraction and event space. ● Wolfgang Puck will open his fi rst Dallas restaurant next spring atop Reunion Tower, the 50-story globe that is considered a symbol of the city. SOURCES: DALLAS CONVENTION AND VISITORS BUREAU; AIRLINE QUALITY RATINGS; FORBESTRAVELER.COM; U.S. CENSUS BUREAU,

PHOTO BY NAN COULTER PHOTO BY TEXAS ALMANAC 14 WWD, THURSDAY, JULY 31, 2008 WWD.COM

FROM ER T T E

8 0 20 1, JULY 3 DALLAS SCENE From food to art, there is always something new in Dallas. — H.H.

Dallas Museum of Art Charlie Palmer restaurant, this “Making It New: The Art and boutique hotel with about 125 Style of Sarah and Gerald rooms is on the same city block Murphy” displays art, journals, as Neiman Marcus’ fl agship letters and home movies headquarters. related to the lives of these Twenties trendsetters and their Pesca Bar extraordinary friends, including Alberto Lombardi, who Pablo Picasso, Jean Cocteau, has opened more than 25 Man Ray, Fernand Leger, F. restaurants in his career, Scott Fitzgerald and Ernest including La Cubanita Toulouse, Hemingway. It runs through Taverna and Sangria, serves Sept. 14. sumptuous Italian seafood, raw bar and pasta at Pesca Bar, his Dali Wine Bar & Cellar newest bistro in the West Village. Delicately fl avored cuisine by award-winning chef Joel Harloff, Rise No. 1 a refi ned wine list and an Arts Perfect souffl és, from District view are all on the menu mushroom truffl e to Grand for dinner or drinks at Dali. Marnier, are worth the wait for The Adam Tihany-designed lobby of the Joule Urban Resort. a table at this casual French Joule Urban Resort eatery in Inwood Village created Boasting a posh decor by by former fashion sales rep Adam Tihany and the popular Hedda Dowd. FCD Adds Prom Event ashionCenterDallas will spotlight prom and special occasion A Girl’s Best Friend Fdressing in a new “mini-market” Aug. 11 to 13 that precedes By Holly Haber timeless.” the main holiday and resort fashion and accessories market Inspired by an- Lynette Miller’s scheduled for Aug. 14 to 17. Three established local jewelry cient painting and 22-karat gold Robbin Wells, executive vice president of leasing, said re- designers who usually work in LOCAL sculpture, Miller pendant. sponse from exhibitors eager to participate in this debut event silver have gone luxe, adding aims for “elegant and has been encouraging. collections that feature diamonds TALENT timeless” style as she “Buyers will benefi t from a strong selection of lines and the and gold. crafts wedding rings ease of working an exclusive prom and special occasion event in and unique pieces made their territory,” she said. Dian Malouf with handpicked stones, Prom lines will be exhibited in booths in the Expo 1 room on Dian Malouf never really cared for diamonds, including diamond, ruby, the fi rst fl oor of the World Trade Center, which houses FCD, and preferring to design and wear chunky sterling sapphire, emerald, blue upstairs in 20 to 25 permanent fashion showrooms on the 14th and and gold jewelry. But Brooke Malouf, who man- Peruvian opal, green garnet, 15th fl oors. ages her mother’s 17-year-old designer jewelry tanzanite, moonstone and Featured labels will include Alyce Designs, Flirt by Maggie business, had other ideas. peacock labradorite. Sotero, Jovani, Mori Lee, Nicole Bakti, Niteline, Riva, Sue Wong, Brooke started sprinkling tiny diamonds in “I want to have a Tadashi, Tiffany Designs, Atelier Aluyce, Juan Carlos Pinera and some of the best-selling rings, and the consumer piece that can go from Robin Jordan. response was im- formal to casual, day Several runway shows will highlight the holiday and resort mediate. to evening — some- fashion market beginning Aug. 14. They will be held Friday and “It’s really thing a client just Saturday at noon and 1 p.m. in the Kim Dawson Runway Café on taken off, and it’s wants to wear,” she the 14th fl oor. In addition, the mart will host a “Fashion Attack” the last thing in said. cocktail party at 5 p.m. on Friday followed by a fashion show at 6 the world I ever Miller’s fine p.m. at the Kim Dawson Runway Café. expected,” Dian jewelry is carried Lines new to the building this season include Abi Ferrin at Malouf said. “But by Craig Lawrence Fortune Denim; April Cornell/Cornell Trading at Deanne Wilde; they are not so ob- Jewelers in Dallas. Beyond Yoga at Susanne Taylor & Associates; C. Luce and Fidelity noxious that you Denim at Colletta; Jenny Han at Ritz Group; Members Only at can’t wear them Elizabeth Showers The Newell Group; Robin Jordan at Ferrell & Kramer; Veronica every day, and Elizabeth Showers made M. and Fluxus at Leon & Associates; Totara at Martha Foster; they don’t break a name for herself with beaded sterling Handbags by “O” by Oscar de la Renta, and Via Spiga at Rosanne the bank. I guess and vermeil jewelry over the last decade, but last Saginaw & Associates. the word is practi- year, she said she realized, “I had to progress.” The show features six fl oors of men’s, women’s and children’s A stacked ring by Dian Malouf. cal.” And has she. fashions plus Western looks and equipment. Malouf is now Showers this year unveiled an extensive col- — H.H. expanding the diamond line along with another lection of 18-karat gold jewelry accented with dia- new group that has been a hit this year: men’s monds, turquoise, lapis and green amethyst. The commitment rings, including a band inscribed Maltese cross is a recurring, best-selling shape in “Hitched.” (For those wanting to send another mes- earrings, pendants and eternity bands studded sage, “Unhitched” is available, too.) with colorful stones. New Labels Featured at FIG Malouf ’s work is distinctive, epitomized by “I feel more proud about my jewelry than I large pieces featuring layered shapes and black- ever have,” Showers said. “It’s real stuff.” ashion Industry Gallery, the Dallas boutique venue special- ened incisions. Everything is hand-carved and A recovered anorexic, Showers says the intent Fizing in contemporary, denim and bridge fashions, will intro- cast, and nothing is plated. of her work is to make women feel beautiful. “It’s duce about two dozen labels at market, Aug. 14 to 17. “I don’t want perfect,” she declared. “I think to feel good about yourself now — not when you Key new lines include Love Tanjane at Valerie & Co.; Smitten at S. perfect is boring. You can have a machine do it. lose fi ve pounds, not when you get that man.” Collier; Zina Eva handbags at Aqua Showroom; Boo Gemes and Paper Nothing can compare with the human hand.” She created a signature “star of hope” that dots White at Mider Group; Cacharel at Laurie Hasson Showroom; Holly Malouf ’s top accounts are Saks Fifth Avenue, New her logo and many of her jewels. Certain pieces, Morgan at Elizabeth French, and Pearl at Theresa Matthew Studio. York, and Packard’s, Santa Fe, N.M. such as the “star of hope” necklace, also benefi t FIG, located downtown in the Arts District, features 52 perma- charities that fi ght anorexia. nent showrooms and the Shop temporary exhibits on the second Lynette Miller Among Showers’ accounts are Fiskin & Fiskin fl oor, with Juicy Couture, 12th Street by Cynthia Vincent, Rebecca Lynette Miller’s whimsical sterling fairy-themed in Southern Pines, N.C., Jamie’s in Nashville and Taylor, Betseyville handbags and others. jewelry, including wand charms and a frog prince Elliott Yeary in Aspen, Colo. Cass & Co., the luxury shapewear line, opened a corporate ring, has an almost cultish following via bou- room in May and will celebrate at the August market. tiques and her Web site, faeirerings.com. Elizabeth Showers’ 18-karat gold rings. FIG will host its traditional Thursday evening cocktail party But Miller, who is also a painter and sculptor, for buyers and exhibitors at 5 p.m. in the lobby. Throughout the has long been drawn to high-karat gold and pre- show, Neiman Marcus will offer complimentary makeovers by Shu cious stones. Uemura and Jo Malone plus beauty treatments and nutriceuticals “It’s been a natural progression for me to from Perricone MD Cosmeceuticals. move into 18- to 24-karat gold and platinum as In an effort to foster networking among buyers and sales repre- Americans have become more aware and de- sentatives, FIG suggests they meet for drinks or dinner Thursday at 7 manding of higher-karat gold,” she said. “There p.m. at Stephan Pyles restaurant, Friday at 7 p.m. at Bolla Bar in the is a desire for that quality and rarity in metals Stoneleigh Hotel and Saturday at 7 p.m. at Hotel ZaZa’s Dragonfl y because of the beautiful color and because it is restaurant. The gatherings are not hosted or sponsored by FIG. — H.H. 600west SPRING 2009 COLLECTION

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GLOVES AND WRAPS 16 WWD, THURSDAY, JULY 31, 2008 WWD.COM Ferré Leaves Madison Ave. Tod’s Revenues Gain 9.7% By Sharon Edelson stores and to all new units, including a Manhattan By Andrew Roberts revenues rose 6 percent to 39.1 fl agship “as soon as we fi nd suitable new prem- million euros, or $59.8 million. NEW YORK — Ferré has closed its Madison ises,” Piva said. “We felt that our current location MILAN — Tod’s SpA on Sales of leather goods and ac- Avenue flagship. didn’t refl ect the standards of the new direction Wednesday reported a 9.7 per- cessories fell 5.2 percent to 65.4 Michela Piva, chief executive offi cer of Ferré, and its architectural structure was not adaptable cent increase in first-half rev- million euros, or $100.1 million, said the brand’s owner, IT Holding SpA, is repo- to Vudafi eri’s new concept.” enues, with momentum in its in line with management expec- sitioning the label. As part of a “global relaunch The 3,000-square-foot Ferré fl agship at 870 core category of shoes as well as tations. Tod’s noted an improve- process…a long-term strategy for the U.S. market Madison Avenue, between 71st and 72nd Streets, its main market, Italy. ment in the second quarter ver- is being developed,” Piva said. “We decided to opened in 2004 with elegant interiors featuring The Italian company, which sus the fi rst three months of the close the Madison Avenue store in view of a fu- a two-story entry, polished white fl oors, glass owns the Tod’s, Hogan, Fay and year. The company underlined ture reopening in a location that will better en- shelves and separate areas defi ned by different Roger Vivier brands, posted that, while the Pashmy line of hance our products from both a merchandising styles of furniture. It was projected to do $10 mil- preliminary consolidated sales bags was starting to achieve and image point of view.” lion in sales. Ferré has long had a presence in fi gures of 347 million euros, or “excellent” results, the perfor- Seeking to defl ect speculation about Ferré’s Manhattan. The designer’s previous store opened $531.1 million at average ex- mance of higher-priced leather performance, IT Holding pointed to the group’s at 845 Madison Avenue in 1993. change, in the fi rst six months bags was suffering from the eco- 2007 fourth-quarter fi nancial results when “there “The brand is absolutely strong, even without of this year. Stripping out the nomic downturn. was particularly sharp growth” of 17.6 percent. creative leadership in the last four collections or effects of currency, revenues By geography, Italy contin- A new global store concept designed by archi- the last two seasons,” said Giovanni Paese, inves- gained 12.2 percent. ued to generate more than half tect Tiziano Vudafi eri will launch at the end of the tor relations offi cer, during IT Holding’s fi rst-quar- Tod’s chairman and chief ex- the group’s revenues, the region year with the opening of a Ferré fl agship in Milan. ter conference call in May. ecutive offi cer Diego Della Valle gaining 17.3 percent to 182.1 mil- Gianfranco Ferré, who died in June 2007 at age The company has named Tommaso Aquilano called the numbers “remarkable, lion euros, or $278.7 million. 62, was known for his bold, architectural designs. and Roberto Rimondi, the design team behind considering the challenging en- Sales in the rest of Europe Vudafi eri’s concept will be applied to all existing 6267, as creative directors of the brand. vironment.” He added that he gained 2.6 percent to 83.5 mil- was “confi dent” the group would lion euros, or $127.8 million, deliver “a sound performance, while revenues in Asia and the for both turnover and profit,” rest of the world increased 6.6 for the full year on the basis of percent to 51.4 million euros, David Asher Named to Head eLuxury “outstanding fi gures of the next or $78.7 million, which the com- fall-winter order backlog.” pany attributed mainly to the By Cate T. Corcoran at Bergdorf Goodman. He spent nine years at By brand, sales of the Tod’s “outstanding” results achieved Neiman Marcus. label edged up 3.9 percent to in the Far East and Middle East, VMH Moët Hennessy Louis Vuitton’s e-com- LVMH does not break out revenues for its on- 180.8 million euros, or $276.7 where Tod’s is developing its Lmerce operation, eLuxury, has a new presi- line business. Sephora.com and eLuxury were the million; Hogan jumped 23.5 per- own distribution network. dent, David Asher, who also will serve as chief company’s early forays into e-commerce. ELuxury cent to 117.1 million euros, or In North America, sales fell executive officer, starting Aug. 11. He replaces launched in 2000 with a mix of brands from LVMH $179.2 million; Fay edged up 0.4 4.9 percent to 30 million euros, president Ann Hepler, who is leaving to pursue and other companies. In recent years, other LVMH percent to 38.8 million euros, or or $45.9 million, although at other interests. brands have opened their own online stores, in- $59.4 million, and Roger Vivier constant exchange, they gained Asher has more than 17 years experience in cluding Dior, Louis Vuitton, Thomas Pink and gained 26.9 percent to 9.1 mil- 8.2 percent. luxury retail, most recently as senior vice presi- DKNY. ELuxury recently redesigned its site. lion euros, or $13.9 million. The figures were released dent and general merchandise manager of wom- Hepler joined eLuxury in late 1999 as vice By product, shoes, as usual, de- after the close of trading in en’s wear at Holt Renfrew. Previously, he was president of merchandising. She became presi- livered the bulk of sales, gaining Milan, where Tod’s stock closed vice president and district merchandise man- dent in 2003. Previously, she was at DFS, another 15.3 percent to 242.2 million euros, up 3.7 percent to 35.50 euros, or ager for luxury and designer men’s sportswear LVMH company, for six years. or $370.7 million, while apparel $55.73 at current exchange.

The Complete Versace Sponsoring FASHION ENVIRONMENT Whitney Art’s Gala By Marc Karimzadeh duced with Vertime, a division of the Timex Group. NEW YORK — Donatella Versace said she was inspired Versace’s affinity for the arts to collaborate with the three art- dates to when her brother ists after featuring the work of Gianni collected classic and Dutch-born artist Tim Roeloff in contemporary masterpieces her fall collection. including some works by mod- “The experience was so ern artists such as Gustav inspiring and enjoyable that Klimt, Alexander Calder and when I was thinking about how Andy Warhol. to mark the launch of my fi ne The designer said she “in- jewelry collection, I wanted to herited the bug” from him, and involve contemporary artists in another move that signals in the process to see what we the relationship between the might create together,” she said. Italian fashion house and the “I know the work of Julian, Marc arts community, Versace is spon- and Wangechi and like it very soring the Whitney Museum of much....I had also met the art- American Art’s 2008 Gala and ists. Julian, for example, I know W&H Properties Studio Party on Oct. 20. very well.” is pleased to announce that “Art has always been an in- This year’s Whitney gala, spiration to me, and the Whitney themed “Whitney — Past, Ellen Tracy is a wonderful museum, with a Present and Future,” will be great program for supporting co-chaired by Versace, Allison has leased 27,486 square feet living artists,” Versace said. “I Kanders and Liz Swig. Artist on the entire 32nd and 33rd floors at thought it would be a good idea Beth Campbell is creating a to get involved with an institu- special installation for the 1400 BROADWAY tion that aims to enable artists event that is inspired by the to work.” theme. The Studio party, which This being Versace, the traditionally follows the gala Ellen Tracy was represented by sponsorship didn’t just begin in the museum’s lower gallery, William Cohen of and end with writing a check. will be hosted by Christina Newmark Knight Frank. The designer collaborated with Ricci, Alexandra Richards, artists Julian Schnabel, Marc Amanda Hearst, Dalia 100% commission was paid Quinn and Wangechi Mutu for Oberlander, Matthew Brannon, on lease signing. the occasion and created three Martin Dawson, Barbara and pieces of jewelry. They will be Andrew Mandell, Leighton auctioned during the gala din- Meester and the Whitney ner along with drawings signed Artists Council. by each artist. The proceeds Versace said she plans to Michael Frantz, Director will benefi t the museum. help the bidding process at the 212.372.2203 WWW.1400BROADWAYNY.COM The one-of-a-kind baubles gala. “I hope the three pieces [email protected] coincide with the October retail will fi nd good homes where they launch of the new Versace Fine will bring pleasure and excite- Jewelry collection, which is pro- ment,” she said.

W&H08_0135 EllenTracy_resize_WWD.indd 1 7/29/08 10:39:56 AM WWD, THURSDAY, JULY 31, 2008 17 WWD.COM J. Crew Issues Bill Blass New York Taps Stephanie Wilson By Whitney Beckett additional avenues through which to foster Online Apology the brand,” said Ann Acierno, chief executive ill Blass Couture may be in turmoil, but Bill Blass New York, the offi cer of Bill Blass New York. crew.com had a new feature Bin-home direct sales label, is revving up for growth. At Dolce & Gabbana since 2006, Wilson held Jon its home page Wednesday Two years after the direct sales brand was launched, Bill Blass similar responsibilities for growth and training. — an apology cosigned by compa- New York has hired Stephanie Wilson, former director of sales at Prior to Dolce & Gabbana, she served as vice ny chairman and chief executive Dolce & Gabbana, as senior vice president of new business develop- president of global sales at Karl Lagerfeld LLC, officer Millard “Mickey” Drexler ment and training. and before that was vice president of sales at and president Tracy Gardner. Wilson is charged with exploring opportunities including e-com- Alberta Ferretti. Earlier, she was senior direc- “We’ve made some mis- merce, international expansion and new product categories for the tor of ready-to-wear sales at Vera Wang. takes…too many in our mind,” profi table company, which aims to reach sales of $50 million in the Based in New York, Wilson reports to they wrote. “We want to say that next two years (it declined to disclose current volume). Acierno. we’re sorry for any issues you Wilson also will lead the training for Bill Blass New York’s sales Bill Blass New York, a license of Bill Blass have experienced while shop- “consultants,” overseeing initiatives for both new sellers and the International, differs from Bill Blass Couture, ping J. Crew online or over the more than 200 consultants who hold trunk shows for their friends which is owned by the troubled NexCen Brands A Bill Blass New York phone over the last few weeks — and neighbors to shop. Inc. and designed — for now — by Peter Som. fall look. we know we’ve let you down.” “Stephanie’s signifi cant experience developing and implement- Designed by Jose Solis, Bill Blass New York The company, which prides ing business strategy for some of the most high-profi le and iconic showed its fall line in a fashion show last week during a three-day semi- itself on listening to customers, fashion brands will be essential as we look to expand our opera- nar for the sales consultants held in New York. The fall line, which retails has experienced some glitches tions through the addition of new sales consultants and explore for $425 for a skirt and $995 for an evening gown, starts selling Friday. online over the past few weeks due to enhancements, and decided to explain all that on the Web site and via an e-mail blast. For a brief period Wednesday, the Web site was down. Margot Fooshee, senior vice YOUR NEW YORK president of marketing for J. Crew, Madewell and Crewcuts, told WWD, “We recently under- went an upgrade to the Web FASHION DESTINATION site and call center to enhance search capabilities and other Three Shows-One Location functions for customers. We 3,100+ Lines of Juried Accessories and Apparel added zoom and a new search functionality, so you can search by item name,” such as a green sweater or cafe capri pant. “Previously, you had to search by an item style number….During the process of making these enhancements, some customers said they were experiencing issues when placing orders.” There were delays, she acknowledged. “In our eyes, any inconvenience to customers is unacceptable. We want them to know we are aware of the sit- uation and working as quickly as possible to correct it.” — David Moin Korshak Set to Sell Offerings on Web DALLAS — Stanley Korshak, the independent luxury emporium here, plans to begin selling merchandise on its Web site in October, owner Crawford Brock said. “There are a lot of challeng- es,” Brock acknowledged. “You have to take the pictures, do the updates, the fulfillment. You have to give it the same level of service as our stores.” The site will initially feature handbags, jewelry and cosmetics — merchandise that is not sized. Eventually, it might offer clothing as well. “I think it could be as big as we are,” said Brock, estimat- ing the company’s annual sales at $44 million. “We’re going to treat it like another store with the same level of service.” The Internet business will be managed from the mezzanine of the Shak, a women’s contemporary boutique located across the courtyard from the main store. Junior & Young Contemporary Resources The space formerly housed a department of young men’s clothing and denim that wasn’t profi table. Holiday/Resort 08-09 Sales associates are already August 3-5, 2008 | Sun & Mon 9am-6pm • Tues 9am-4pm | Javits Center, Manhattan using the Web to e-mail pictures of merchandise to customers, Attend: 866-696-6020 | Exhibit: 212-686-4412 Brock said, so it was logical to hire a developer to expand the accessoriestheshow.com • modamanhattan.com • fameshows.com store’s Web site beyond brand- Properties of Business Journals, Inc. ing and information. — Holly Haber 18 WWD, THURSDAY, JULY 31, 2008

As far as big paydays go, Ralph Lauren comes out on top for the fourth year in a row, a beneﬁ ciary of his company’s continuing success. In WWD’s annual vendor executive compensation survey, the top 10 took home a TheWWDList combined total of $123.3 million, which is $34.6 million more than last year’s top 10. This is a switch from last week’s look at top retail industry executives, who took home $54.3 million less than the year prior. For vendors, Peter Boneparth, formerly of Jones Apparel Group, and Richard Noll of Hanesbrands moved into the top 10, while Kenneth Cole moved up the rankings from 10th to sixth. And just where are all the female The Kings of Cash execs? Well, Jackwyn Nemerov, executive vice president of Polo Ralph Lauren, was the closest to the top 10 (however, WWD proﬁ les the three Top apparel vendor executives ranked by the values of their annual highest-paid execs from each company tracked) — she took home $5.3 compensation packages* in 2007. million last year. — Cecily Hall, with contributions from Vanessa Weber

RALPH LAUREN, 68, CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER, POLO RALPH LAUREN CORP. Total value of 2007 compensation package: $34.2 million Base salary: $1 million; bonus: $0; stock and option awards: $20.8 million; other: $12.4 million Taking top honors for the fourth year in a row is Ralph Lauren, who enjoyed an increase of $8 million in compensation, primarily due to a hefty 1 jump in stock and options awards. On Monday, WWD reported that, “starting in ﬁ scal 2009, [Lauren] will be entitled to a bonus ‘only if 80 percent, rather than 50 percent, of the performance target had been achieved,’” according to the company’s SEC ﬁ ling. Last year, the company’s results rose 13.9 percent to $4.88 billion in net sales, $3.65 billion of which came from sales in the U.S. and Canada.

PETER BONEPARTH, 48, FORMER PRESIDENT AND CEO, JONES APPAREL GROUP INC. Total value: $16.9 million Base salary: $1.3 million; bonus: $0; stock and option awards: $4.3 million; other: $11.2 million Boneparth, who just missed a spot on the list last year as the 11th highest-paid executive, saw an increase in total compensation for 2007 of almost $13 million from the year prior. The bulk of his increase in pay is a result of an “aggregate amount of severance payments plus the values of [his] 2 shares becoming vested,” according to the company’s SEC ﬁ lings. Boneparth, who served as ceo since 2002, ended his employment with Jones Apparel in July 2007, despite the fact that his contract was due to end in March 2009. He was succeeded by Wesley R. Card. WWD reported in May that Boneparth will join the board of Kohl’s Corp. ROGER N. FARAH, 55, PRESIDENT AND CHIEF OPERATING OFFICER, POLO RALPH LAUREN CORP. Total value: $15.8 million Base salary: $900,000; bonus: $0; stock and option awards: $12.7 million; other: $2.2 million The second Polo executive to make the top ﬁ ve, Farah’s pay package increased by more than $3 million to nearly $16 million last year, mainly due 3 to a jump in stock awards. He has, however, moved down a notch from last year to number three. One of the most sought-after executives in the industry, Farah, previously the chairman of Venator Group Inc. (now Foot Locker Inc.), joined Polo in 2000. He received a B.S. degree in economics from the University of Pennsylvania in 1974. He also currently sits on the board of Aetna Inc. and Progressive Corp.

MACKEY J. MCDONALD, 61, CHAIRMAN OF THE BOARD AND CEO, VF CORP. Total value: $15.4 million Base salary: $1.2 million; bonus: N/A; stock and option awards: $9.8 million; other: $4.4 million McDonald’s pay package is 24.1 percent higher than last year, with large increases in stock awards and other earnings. He served as ceo from 1996 to last January, and will retire as chairman of the board and as a director by August. McDonald joined the company 25 years go, when he served as 4 the assistant vice president of merchandising services for the Lee division. Ninth-ranked Eric Wiseman, who succeeded him as ceo, told WWD in June that McDonald’s impact on VF “will last well beyond his presence. He led the successful transformation of VF into a dynamic lifestyle-brand company well positioned for future growth, and, perhaps most importantly, he helped build a unique, performance-driven culture.” RICHARD A. NOLL, 50, CEO, HANESBRANDS INC. Total value: $8.6 million Base salary: $800,000; bonus: $0; stock and option awards: $6.2 million; other: $1.6 million Noll makes his top 10 debut this year at number ﬁ ve, due to a 50 percent salary increase as well as jumps in stock and option awards and other incentives. Winston-Salem, N.C.-based Hanesbrands witnessed a 99 percent increase in revenues last year to $4.47 billion. Noll said of the company 5 in April: “The key to our success is the continued execution of our business strategies of investing in our brands, driving cost reductions and globalizing our supply chain, and effectively investing our cash ﬂ ow.” He’s served as the company’s ceo since April 2006. Prior to that, he was the senior vice president of Sara Lee. Noll earned his B.B.A. from Penn State University and an M.B.A. from Carnegie-Mellon University.

KENNETH D. COLE, 54, PRINCIPAL EXECUTIVE OFFICER, KENNETH COLE PRODUCTIONS INC. Total value: $7.7 million Base salary: $1 million; bonus: N/A; stock and option awards: $2.7 million; other: $4 million The Brooklyn-born Cole moves up four slots to number six this year — the value of his compensation package increased by 88 percent, thanks to 6 gains in stock awards and other earnings. Cole founded the footwear, apparel and accessories company in December 1982. Originally, the New York- based company made its debut with a collection of ladies’ footwear, and in 1994, it went public. Last year, it garnered $510 million in revenues.

EMANUEL CHIRICO, 50, CHAIRMAN AND CEO, PHILLIPS-VAN HEUSEN CORP. Total value: $6.7 million Base salary: $1 million; bonus: $0; stock and option awards: $2.4 million; other: $3.3 million Chirico, who moved down to seventh place in the rankings this year from ﬁ fth, took home almost the same pay package as in the year prior. Chirico 7 replaced Mark Weber in 2006 as ceo. The company’s gem brand is Calvin Klein. Chirico told WWD in June that the Calvin Klein licensing business represents about 12 percent of PVH’s revenues, and an estimated 40 percent of its proﬁ tability. Since last year, CKI stepped up its international store count to 538 from 419. The brand generates total global sales of more than $5.4 billion.

WILLIAM L. MCCOMB, 45, CEO, LIZ CLAIBORNE INC. Total value: $6.3 million Base salary: $1.3 million; bonus: $325,000; stock and option awards: $4.5 million; other: $216,498 Liz Claiborne has gone through a massive restructuring under William McComb, who has sold off brands, changed management, shifted sourcing 8 and refocused the group on its core brands. McComb’s pay package last year improved from 2006 by $5.35 million due to increases in salary and stock and option awards. He is also the only executive on the list who received a bonus, though it did decrease from $400,000 in the previous year to $325,000. McComb became ceo in November 2006. The company leases an apartment in New York for McComb’s use at a cost last year of $113,000.

ERIC WISEMAN, 52, PRESIDENT AND CHIEF OPERATING OFFICER, VF CORP. Total value: $6 million Base salary: $775,000; bonus: N/A; stock and option awards: $3.4 million; other: $1.8 million Wiseman witnessed a 29 percent increase in pay, thanks to bumps in salary, stock awards and other incentives. Wiseman, who has served as president 9 and ceo since January, had been chief operating ofﬁ cer since March 2006 — he joined VF in 1995 as the executive vice president of JanSport Inc. He earned a bachelor’s degree in business and an M.B.A. from Wake Forest University. Wiseman also serves as a director for Cigna Corp.

JOSEPH R. GROMEK, 61, PRESIDENT AND CEO, WARNACO GROUP INC. Total value: $5.7 million Base salary: $1 million; bonus: $0; stock and option awards: $2.4 million; other: $2.3 million Gromek, who has served as president and ceo since April 2003, saw a pay increase of $1.4 million from last year. From 1996 to 2002, Gromek served 10 as president and ceo of Brooks Brothers. He also held positions at Saks Fifth Avenue, Limited Brands and AnnTaylor Stores Corp. The company offers products under well-known brand names, such as Calvin Klein, Speedo, Chaps and Olga. WWD reported in May that sales for the quarter climbed 18 percent to $574.9 million from $485.9 million. International sales now represent more than half of the company’s revenues.

SOURCE: SECURITIES AND EXCHANGE COMMISSION FILINGS AS OF JULY 2008; *PACKAGE VALUES INCLUDE BASE SALARY, BONUS AND STOCK OPTIONS AND OTHER AWARDS; “OTHER” MAY INCLUDE: (1) NON-EQUITY INCENTIVE PLAN, AND/OR (2) THE CHANGE IN PENSION VALUE AND NONQUALIFIED DEFERRED COMPENSATION EARNINGS; N/A: NOT APPLICABLE WWD, THURSDAY, JULY 31, 2008 19 WWD.COM Ralph Lauren Tops Vendor Pay

By Vanessa Weber and Cecily Hall reduced to 75,000 from 100,000 and are now based on performance rather than time. he final year of his current employment con- Last year, Polo’s net income increased 4.7 per- Ttract paid off handsomely for Ralph Lauren. cent, to $419.9 million, or $3.99 a diluted share, while The 68-year-old founder, chairman and chief net revenues were up 13.6 percent to $4.88 billion. executive offi cer of Polo Ralph Lauren Corp. Unlike the top 10 highest paid retailers, there topped WWD’s list of highest paid vendors for the were no declines in compensation among the fourth year in a row with total compensation of vendor executives. All but one — Phillips-Van $34.2 million, up 32 percent, or roughly $8.3 mil- Heusen Corp.’s chief executive Emanuel Chirico, lion, from his fi scal 2007 pay package. 52, whose pay package remained the same as last But if the strong performance of Polo last year year at $6.7 million — saw gains in their total com- drove Lauren’s pay increase, it was a payoff that pensation. This year, the top 10 were paid a total landed Peter Boneparth, former president and ceo of $123.3 million, up 39 percent, or $34.6 million, of Jones Apparel Group Inc., in the second slot on from the 10 highest paid vendors last year, who the list. Boneparth, 48, stepped down from the top took in $88.7 million. This takes an opposite turn spot at Jones in July 2007, seven months into the from the pay packages of the top 10 highest paid company’s fi scal year, but earned total compensation retailers, who experienced a collective compensa- of $16.9 million, of which $16.7 million was attribut- tion decline of $54.3 million. able to severance payments and the early vesting of “These are key vendors, these are the good restricted stock awards, according to the fi rm’s de- vendors — the ones that are not performing are fi nitive proxy statement. Termination payments — not on the list,” said Terre Simpson, president of defi ned as “salary, bonus and benefi ts for the period Simpson Associates, a New York-based executive subsequent to the termination of employment” — ac- search fi rm. “In retail there’s a spread of the best counted for $11.2 million of Boneparth’s total. and the worst. Obviously, not everybody is selling,” Roger Farah, 55, president and chief operating which explains why the highest paid retailers saw offi cer of Polo, took the third spot on the vendor a decline in their pay packages. pay list with compensation of $15.7 million, more “Ralph Lauren performs well, but not every than $3 million above last year’s tally. vendor can say the same,” added Simpson. “He’s The bulk of Lauren’s increase came from stock the premier American vendor. He’s number one and option awards, up $12.5 million to $20.7 mil- because he does a lot of things right.” lion last year from $8.2 million the year before. He Collectively, this year’s top 10 executives was reimbursed $1 million for use of his personal made $45.5 million more than last year’s as- aircraft by executives of the company. As in the semblage. The gains ranged from $1.4 million prior year, Lauren received no bonus. for number 10-ranked Warnaco Group Inc. ceo As reported, the terms of Lauren’s compensa- Joseph Gromek, to a whopping $12.8 million for tion under his new contract have changed, even Boneparth, whose departure pushed him to num- as his base salary has been lifted to $1.25 million ber two after he missed the top 10 last year. from $1 million. To put his compensation arrange- Boneparth’s employment at Jones ended on ments more in line with other members of Polo’s July 12, 2007, after it had been disclosed his em- senior management, starting this year he will be ployment wouldn’t be extended beyond the origi- entitled to a bonus only if 80 percent, rather than nal March 31, 2009, expiration of his contract. 50 percent, of the company performance target Boneparth reportedly had clashed with Jones’ has been reached. Stock option grants have been board over issues ranging from the sale of Barneys reduced to 100,000 stock options from 150,000, and New York to the question of whether the company the term for stock options was reduced to seven should be sold as a single entity or through a se- years from 10 years. Restricted stock units were ries of divestitures.

AN IMAGE MAKEOVER: Los Angeles Times editor Russ Stanton said Wednesday that the slicing of the newsroom is complete, with 135 editorial layoffs, MEMO PAD slightly less than the 150 forecast. But the cost- cutting has hit an area of the paper initially seen as a mechanism for survival, or at least some ad revenue, one that includes the fashion-oriented Image section. Michalene Busico, the former New York Times dining editor who arrived at the Los Angeles Times six years ago to revamp its features sections, and who cocreated and oversaw Image, has been laid off, she conﬁ rmed to WWD. At its launch, Image was described by the paper as being “dedicated to SoCal’s unique perspective on fashion, beauty, shopping and style, and with an eye on the international scene beyond.” The Times’ chief fashion critic and the editor of the Image section, Booth Moore, reported to Busico, whose title was deputy features editor. Busico said, “Booth is one of the ﬁ nest editors and critics I have ever worked with; Image is in very good hands.” Seven editors and reporters currently work on the section, she said. Meanwhile, the Los Angeles Times Media Group has been developing a new lifestyle magazine, LA, to be launched in September independent of the newsroom. (The newspaper’s features section oversaw a magazine that was recently folded.) WWD reported last week that editor Annie Gilbar was hiring a staff with magazine and luxury industry backgrounds, such as former House & Garden editors Mayer Rus and Lora Zarubin, as well as celebrity stylist Lori Goldstein. There is little communication between the magazine and the Los Angeles Times newspaper, employees at both said. Early meetings were held in Gilbar’s home, according to people close to the project, and some staffers are working remotely from other locales. Earlier this week, the company issued a statement on the magazine’s hires, who also have included former In Style editor Robin Sayers as editor at large and veteran designer Rip Georges as creative director. — Irin Carmon

LOOKING INTO THE FUTURE: Could a refi nancing be in the works for American Media Inc.? The publisher has $400 million worth of bonds due to mature on May 1 and, despite a group of impatient bond holders, current market conditions aren’t exactly ideal for selling them. So what to do? Well, Dean Durbin, chief fi nancial offi cer, said on a conference call Wednesday that for now the company is looking at all the alternatives and is “waiting out” the decision-making process. An executive from J.P. Morgan, also on the call, stressed that a debt-for-equity swap isn’t being actively pursued, although that is one option. Following the call, a spokesman added: “American Media is focusing its time on running the business, which includes reviewing our current capital structure and addressing near-term maturities. To that end, we are currently in discussions with our advisers regarding the possible extension or refi nancing of the 2009 notes.” Whether the long-suffering bond holders are receptive to that idea remains to be seen, of course. The company’s conference call reviewed fi scal years 2007 and 2008 and the fi rst quarter of 2009, ended June 30. On the call, Durbin noted that, given current market conditions, the sale of Country Weekly, Muscle & Fitness, Muscle & Fitness Hers, Flex and Mira also has been put on hold. As for the fi rst quarter, AMI — like almost everyone else — reported softness in ad revenues, with total revenue down 1.9 percent versus the prior year to $119 million. Net income was $500,000, compared with a net loss of $100,000 last year. During fi scal 2009, the company projects cost savings of $21 million and revenue enhancements of $5.1 million, from additional issues and special-interest publications. Chief executive offi cer David Pecker said the company has begun a major marketing program and AMI is breaking new advertisers on a weekly basis — although he didn’t say whom. The company is marketing its health and fi tness titles on the men’s and women’s sides together, and also is focusing on corporate sales programs with major advertisers. — Amy Wicks 20 WWD, THURSDAY, JULY 31, 2008 Industry Weighs Future Continued from page one While the news about Boscov’s addressed the issue of With tightening credit and shoppers spending “who’s next?,” others were focused on the equally press- less, Mervyns was caught in a “perfect storm.” ing question of what is next for Mervyns, the $2.5 billion California-based midtier department store with 177 units in seven Southwestern and Western states. Many observers of the national and West Coast retail scenes were left pon- dering if the regional chain can emerge from the grueling bankruptcy process but, perhaps more critically, what its role would be in a retail world increasingly dominated by national chains like Kohl’s Corp. and J.C. Penney Co. Inc., discounters like Wal-Mart Stores Inc. and Target Corp., and nimble specialty and off-price retailers. “Mervyns just can’t seem to compete well against Kohl’s,” said San Francisco-based retail analyst Jeff Green of Jeff Green Partners. “Kohl’s strategy has been to open a number of stores simultaneously and come in strong, especially in markets like Southern California. It was an effective way to muscle into the market and Mervyns couldn’t help but take a big hit there. They were seeing market share eaten right up.” Mervyns “wasn’t in that same position” that would allow it to keep up with Kohl’s “big money strategy,” Green added. “It’s an aging brand,” he said. “They don’t do a whole lot of big marketing.” Retail consultant Walter Loeb acknowledged that Mervyns had been “a vibrant company” in the past. “It had a good assortment,” he said. “Today, both the discount chains and the low-margin retailers have overtaken them in so many ways. It has been mismanaged for so long….The consumer has found other places to shop for value.” But is there a place for it in the future? “Frankly, the low-end consumer in California and maybe Arizona would probably still shop at Mervyns, but then you would have to close the nation’s largest shopping centers, and in San Francisco, so many stores to bring the operation to a prof- Oakland and Pleasanton, Calif. itable level,” Loeb said. “At that point, the op- Since the sale of the real estate portfolio by its private eq- eration would be so small that you would have uity investors, Mervyns stores are all leased. to wonder whether it is still worth keeping “Suppliers need Mervyns, but this is going to be a fi ght for open from an operational basis.” survival,” the retail source said. “The customer has a lot of Loeb considered the bankruptcy “inevita- shopping choices.” ble. I think the company is irrelevant. It could Jack Kyser, chief economist for the Los Angeles Economic be a liquidation.” Development Corp., said the bankruptcy could have a visible If a liquidation were to occur, it would put effect on Southern California since many Mervyns locations 177 retail spaces averaging 80,000 square feet are in poorer neighborhoods where fi nding new tenants in the into the “For Rent” category. The footprint midst of an economic downturn will be especially diffi cult. could conceivably work for retailers such as “The key will be what happens to those sites and if The TJX Cos.’ T.J. Maxx and Marshalls divi- Mervyns can do something to get out from under this,” Kyser sions, Bed Bath & Beyond, H&M, Best Buy said. “Things don’t look good, except if they can make some and Forever 21, which generally operate from savvy real estate moves now, but there are not many large similarly sized formats. Kohl’s could also avail itself of locations, although it tends to retailers out there as potential tenants in Mervyns’ spaces.” operate with a larger footprint. Mervyns’ real estate assets were separated from the operating company after Isaac Lagnado, president of Tactical Retail Solutions Inc., considers the timing of the Target sold the retailer to a consortium including Sun Capital Partners Inc., Cerberus bankruptcy at Mervyns telling. “The penetration of the back-to-school business at Mervyns, Capital Management LP and Lubert-Adler and Klaff Partners LP in 2004. as a percent of the total business, was among the highest in the industry,” he said. “At one The real estate holdings were put into eight entities, all of which begin with MDS, time, the number was 20 percent. Back-to-school has been a historical strength of the such as MDS Realty Holdings I. The MDS entities did not fi le for bankruptcy and are chain, far more than the typical chain.” now one of Mervyns’ landlords. Numerous sales have followed, including a sale-lease- So with vendors and factors tightening the spigot at such a crucial period, Mervyns back involving a joint venture of Developers Diversifi ed Realty Corp. and Macquarie needed to act decisively to get help, in this case a $465 million debtor-in-possession Trust, which acquired 36 stores for $396 million in 2005, and Macerich’s acquisition facility, not yet approved, from a group led by Wachovia Capital Finance Corp. of 43 units for $430 million in February. Developers Diversifi ed Realty said last week Lagnado noted the chain’s troubles represented a reversal of fortune from events that Mervyns, its second-largest anchor retailer, was current on all payments. in the Eighties and Nineties, when Mervyns, then owned by Dayton Hudson Corp. Economic headwinds certainly provided no shelter for Mervyns as it battled (later Target Corp.), expanded rapidly and moved into states outside its West Coast against insolvency. In June, with the national unemployment rate at 5.5 percent, base. Meanwhile, stores including Sears and J.C. Penney were struggling and the dis- California’s stood at 6.9 percent and Nevada’s at 6.4 percent. Arizona’s came in at counters had yet to fully reach their stride. In the late Eighties, the larger department 4.8 percent, below the national average. According to state and federal records, store groups — Federated Department Stores, Allied Stores Corp. and R.H. Macy & California’s unemployment rate has been at least 1 percent higher than the national Co. — were struggling with leveraged buyout-related problems of their own. average every month this year except February, when it was 0.9 percent higher. Especially since rumblings of credit diffi culties at Mervyns began earlier this year, The housing crisis made a substantial contribution to the crisis as well. Nevada, its downfall was for many not a question of “if,” but of “when.” California and Arizona had the top three foreclosure rates in the country during the On Monday, the day before the chain’s Chapter 11 fi lling, David Simon, chief ex- fi rst half of 2008, with one foreclosure for every 23, 34 and 40 housing units, respec- ecutive offi cer of Simon Property Group, told a Wall Street conference call, “We have tively. Total foreclosures for the year to date in California are 387,214, up 104 per- always earmarked Mervyns to go away. The fact that it’s lasted this long is a testament cent from the comparable months of 2007; in Arizona, 65,351, up 138 percent, and in to the guys who own it and operate it. It’s just been out-positioned between Penney’s Nevada 45,717, up 81 percent. Nationwide, foreclosures are up 59 percent so far this and Target.…You see very similar tenants like Penney’s that are performing reason- year, according to a national study conducted by RealtyTrac Inc. ably well, and it’s just that Mervyns was an afterthought at [former owner] Target and But Mary Ann Domuracki, managing director of Financo Inc., thinks there could it’s not something that we haven’t anticipated.” still be a place for the chain. “It’s a diffi cult retail and fi nancial market and it’s not A retail source with knowledge of Mervyns operations noted, “Mervyns really does surprising vendors are skittish,” she said. “Mervyns has a long history and we would cater to a value-oriented consumer who has been hit very hard by all these macro hope a strategic [buyer] sees value in its heritage and platform.” issues, and you have to remember that Mervyns operates a lot of stores in areas that Jason Asaeda, an equity analyst at Standard & Poor’s, told WWD, “Because the have been hit hard, like Las Vegas and Southern California.” economy is so weak right now, I don’t know if [the bankruptcy] is going to have an ap- The source said Mervyns has mostly lost market share to Penney’s and Kohl’s, its preciable effect on companies like Kohl’s or even, let’s say, a Target or a Penney’s. I two most direct competitors. However, Mervyns caters to an average household of four think everyone is struggling to win dollars from consumers, so even if one competitor which has annual income of $50,000, whereas Penney’s and Kohl’s typical customers is in bankruptcy, I think it really depends more on the execution of merchandising are more affl uent, with household incomes of $60,000 and $65,000, respectively. After and marketing on a company-by-company basis.” those two chains, Mervyns’ toughest competitors are Wal-Mart, Target and Family In categories where there is brand overlap between Mervyns and its competitors, Dollar Stores, the source said. “There is no question that Penney’s and Kohl’s have as there is in some cases with Kohls, “I think it really depends on how they are pric- been on the attack,” the source said. ing. I don’t really see a huge impact on other companies right now,” Asaeda said. But Mervyns’ problems go back many years to when the company was still owned The long-term effects could be different, however. While the Mervyns bankruptcy by Target, which backed off its investments in the chain after its profi tability de- might not give a big boost to competitors immediately, it might set those companies up clined in the Nineties. for better growth once the economy turns. After Mervyns was bought by private equity concerns in 2004, the retailer under- “In any given sector, as weaker operators exit the market or there is an accelera- went a portfolio cleansing that shuttered nearly 90 stores, leaving the chain with many tion in store closings, stronger operations tend to consolidate their market share,” stores in good locations. Not long after that process, approximately three years ago, said Monica Aggarwal, a retail credit analyst at Fitch Ratings. “Even if they don’t pick about 10 stores were opened in stronger locations than Mervyns had occupied previ- up stores, they have less competition.” ously. Among the best are those situated in the Del Amo mall in Los Angeles, among For many, the fi ling is a reminder of how quickly the innovator of one season can WWD, THURSDAY, JULY 31, 2008 21 WWD.COM Von Furstenberg Unanimously of Mervyns Reelected as CFDA President become the tired old formula of the years ahead. Certainly, with his different ap- By Marc Karimzadeh proach to merchandise assortment and pricing, as well as his trailblazing use of tabloid circulars, Mervyns founder Mervin Morris, who started the company in 1949, NEW YORK — Diane von Furstenberg will continue in her role as president of the was among the most admired and imitated retailers in the U.S. Council of Fashion Designers of America. “Mervyns at one point in their history was an icon of what you would call big-box At a CFDA board meeting Wednesday, the designer was unanimously reelected for value retailing,” said Arnold Aronson, managing director of retail strategies Kurt a second two-year term. Prior to von Furstenberg’s election two years ago, a president Salmon Associates. “No question that Mervin Morris was a pioneer in the industry. could serve as long as they wanted, and the designer became president after Stan He built Mervyns into a store that was emulated by many, including Kohl’s.” Herman held that post for 16 years. The rules have since changed, and each president That competitive pressure, along with the housing-led slump in California and can only serve a maximum of four years. other economic woes, proved to be too much for Mervyns. At the meeting, the board also ratifi ed 28 new members to the CFDA. They are Sophie “Mervyns is not an exception,” said Aronson. “Right now Mervyns is in the mid- Buhai and Lisa Mayock of Vena Cava; Brian Reyes; Thakoon Panichgul of Thakoon; dle of this kind of perfect storm.” Holly Dunlap of Hollywould; Jenni Kayne; Naeem Khan; Sue Stemp; Philip Crangi; As are many other retailers, especially other regional ones like Boscov’s, whose Robin Renzi of Me & Ro; Ron Anderson and David Rees of Tenthousandthings; Loree roots in the central and western parts of New York and Pennsylvania are deep and Rodkin; Dana Foley and Anna Corinna Sellinger of Foley + Corinna; Scott Sternberg of well-established. Band of Outsiders; Amy Smilovic of Tibi; Michael Bastian; Andrew Buckler of Buckler; Founded by Solomon Boscov, the 75-year-old chain is owned by the families of Rachel Comey; Erica Davies of Development; Cheryl Finnegan of Virgin, Saints & Albert Boscov, Solomon’s son, and Edwin Lakin, a son-in-law, according to the com- Angels; Eunice Lee of Unis; Fiona Kotur Marin of Kotur; Malia Mills of Malia Mills pany. The stores were recapitalized two years ago, giving 5 percent of ownership to Swimwear; Sandra Muller of Lila Gems; Kara Ross, and Araks Yeramyan of Araks. nonfamily management. Elie Tahari and his wife, Rory, plan to welcome the new members to the CFDA at A phone call seeking comment on Boscov’s fi nancial condition wasn’t return by a cocktail reception at their SoHo home on Oct. 21. The event is expected to draw a press time. mix of existing CFDA members, retailers and editors, as well as the newly minted However, within the last week, Boscov’s has become the latest retailer to lose second-term president. support in the credit community. “It’s nice because I feel like I have started a few things and haven’t had time to fi nish Vendor and credit sources said the factoring arm of CIT’s trade fi nance group them up,” von Furstenberg said. “I am looking forward to putting in another two-and- earlier this month put a “hold” on future orders to the Reading, Pa.-based chain. a-half years and leave my mark. I feel like I have opened it more as a community. It’s One source said CIT wanted more information from the retailer before commit- more inclusive, and we have many new members. I think the CFDA has had much more ting to approval on future orders. CIT has not pulled support for back-orders. exposure outside of, and in the rest of, the country, and that’s defi nitely something I Consequently, recent orders that were approved, but not yet shipped, were not af- want to focus on, as well as the copyright issue, and I have a long way to go there.” fected by CIT’s latest decision. Steven Kolb, the organization’s executive director, echoed those sentiments. “Not Several credit sources said CIT’s decision followed the path of other factors, only did [von Furstenberg] bring international visibility to the CFDA and a genuine such as GMAC and Milberg, which were among the fi rst to hold approval on orders desire to create a stronger community of designers, she also proved to be so acces- pending more information from the retailer earlier this month. sible and hands-on in everything she does for the CFDA,” he said. “I never imagined As with Mervyns, the problems at Boscov’s have been ongoing for several months. she could give as much time and resources as she does, so it was a no-brainer to the Some sources in the vendor community said they have been waiting for payment board to unanimously reelect her for a second term.” from Boscov’s on previously shipped orders and contacts in the credit community said that even some big-name vendors have experienced slowness in payment. The problem now is that nearly half of its suppliers have stopped shipping merchandise. It was the same problem Mervyns encountered when it lost support from the credit community. Because of concerns of a bankruptcy fi ling, and account bal- DVF, Claiborne Join Walk of Fame ances on shipped orders still unpaid, many vendors are no longer willing to ship By Rosemary Feitelberg goods and take on the risk of incurring an even bigger unpaid balance due. Market estimates put Boscov’s sales at just over $1 billion, making it among the iane von Furstenberg and the late largest privately held department store companies in the U.S. The largest is Belk DLiz Claiborne now have a permanent Inc., which had sales of $3.82 billion in 2007. place on Seventh Avenue — stars along the street’s Fashion Walk of Fame. While both Belgian-born designers were lauded for their contributions to American We have always earmarked Mervyns to go away. fashion and their respective plaques were “ unveiled Tuesday at the Bryant Park Grill, The fact that it’s lasted this long is a testament to von Furstenberg used the occasion to remind attendees about the importance of saving the guys who own it and operate it. It’s just been some semblance of the Garment District. City offi cials, union advocates, designers and ap- out-positioned between Penney’s and Target. parel workers have yet to hammer out a plan — David Simon, Simon Property” Group to reduce the space earmarked for manufacturing, which has dwindled in recent years. “I didn’t know that Liz was born in Boscov’s currently has 49 stores in six states in the mid-Atlantic region. The Brussels, so you see a tiny little country chain’s brand assortment includes Liz Claiborne, Tommy Hilfi ger, Champion, Calvin can do a lot. There were so many immi- Klein and Elizabeth Arden. Some stores also carry Clinique, Estée Lauder and grants that came to New York and started Lancôme, according to the company. in this district, so many tailors, so many Regional department stores have been hard-pressed to compete with national pattern makers, so many salesmen, so Art Ortenburg and Diane retail chains in the last few years, and that pressure has grown in recent months many Willy Lomans. It’s a very, very spe- von Furstenberg as consumers have shopped less and lenders have been more selective about their cial part of New York — that district, that JOHN AQUINO PHOTO BY fi nancing. In addition to Mervyns and Boscov’s, other regional retailers hitting diffi - world,” von Furstenberg said. “Fashion is culties include Goody’s Family Clothing Inc., which fi led for Chapter 11 bankruptcy a very important section of New York City, Corp., had proclaimed Wednesday court protection in June. but is also important because of so many Fashion Walk of Fame Day on behalf Goody’s on Friday fi led its disclosure statement, which is pending approval by hopes that came to this country — so of Mayor Michael Bloomberg, who had the bankruptcy court before it can solicit votes from creditors regarding its plan many refugees, so many immigrants who to bow out of the presentation. Isabel of reorganization. came in and had the American dream Toledo, Yeohlee Teng, Dennis Basso, and realized the American dream.” Lord & Taylor’s Lavelle Olexa, Saks Fifth Von Furstenberg noted the Garment Avenue’s Michael Fink, Macy’s East’s District is especially important to “young Nicole Fischelis, Helen O’Hagan, Ruth designers who start out and walk the streets Finley and Marylou Luther were among to fi nd a factory and accessibility. She also the few hundred designers, retailers and acknowledged that production has fallen other industry supporters on hand. off and that “the city is looking at ways to Afterward, Murphy said, “Today’s cer- preserve core manufacturing while at the emony exemplifi es that New York remains same time working with the landlords.” the world’s fashion capital. As we celebrate “As president of the [Council of homegrown success stories like those of Fashion Designers of America] it is the Diane von Furstenberg and Liz Claiborne, hope that the city, the designers, the land- we are encouraged by Diane’s commitment lords, the unions and the factories can to the Garment Center and will continue to come together soon and help this district work with fashion industry stakeholders to not to disappear — to secure a plan to ensure the Garment Center remains the keep some manufacturing in the Garment vital core of fashion in New York City.” District as it is the foundation on which Liz Claiborne’s husband, Art Ortenberg, American fashion was built. Let’s always shared his gratitude with the crowd for be together and try to fi nd solutions to- adding her name to the 26 designers that gether,” von Furstenberg said. now line the Fashion Walk of Fame. He Her rallying call did not fall on deaf thanked a bevy of people including her ears. Patrick Murphy, head of Fashion/ parents, mentors, colleagues, retailers and Mervyns in Burbank, Calif. Retail Industry Growth Initiatives for “particular thanks to all of you who have

PHOTOS BY TYLER BOYE PHOTOS BY New York City’s Economic Development put her in such prestigious company.” 22 WWD, THURSDAY, JULY 31, 2008 WWD.COM Bare Escentuals Net Rises, Forecast Cut Avon Second-Quarter Profi ts Surge are Escentuals Inc.’s profits for the quarter ended BJune 29 gained 22.1 percent to $24.7 million, or 26 By Molly Prior line with sales going forward. cents a diluted share, from $20.2 million, or 22 cents. Having steadily ratcheted up its advertising over the Net sales for the quarter gained 11.6 percent to $138.5 ore than two years into its restructuring plan, last two years, Jung said Avon will selectively increase million from $124.1 million in the year-ago period. MAvon Products Inc. has begun to reap the rewards prices by 5 to 10 percent on key innovations. She noted Chief executive offi cer Leslie Blodgett said that for the of its labor, reporting that its second-quarter profit that in the U.K. the company increased prices across its fi rst time, international quarterly sales accounted for 12 more than doubled. Anew brand by 7 percent. The increase coupled with new percent of total company sales. The company is expanding “Following 10 quarters of heavy lifting, the second product introductions resulted in an 18 percent sales lift. in the U.K., where it has eight doors including Selfridges quarter is what it looks like when it all comes together: Avon continues to weed out underperforming items in London; in Japan via infomercials and QVC, and in A business that is healthy and growing on both the top from its mix through its Product Line Simplifi cation ini- Canada, where it will test its wares in a limited number of and bottom line,” Andrea Jung, Avon’s chairman and tiative. Charles Cramb, Avon’s vice chairman and chief Shoppers Drug Mart doors and is sold via infomercials. chief executive offi cer, told analysts during the com- fi nance and strategy offi cer, noted that in the U.K. the In September, Bare Escentuals will launch its fi rst pany’s earnings call Wednesday. “We are doing what we company trimmed foundation stockkeeping units by 19 large-scale sampling initiative in its brick-and-mortar said we would do to turn Avon’s business around.” percent, while boosting sales 26 percent. retailers, said Blodgett. It is expected to reach one mil- She declared the second-quarter performance was To deal with rising commodity costs, Avon said it will lion shoppers, and will continue into next year. the strongest the direct seller has delivered since use analytics to support pricing, taking increases where The company lowered its sales growth expectations launching its turnaround plan in late 2005. appropriate; continue to create a product pipeline that for the fi scal year, from its previously stated goal of 20 to Profi ts for the quarter ended June 30 surged 109.1 per- encourages consumers to trade up, and cut underper- 25 percent to 15 to 20 percent. cent to $235.6 million, or 55 cents a diluted share, from forming products. — M.P. $112.7 million, or 26 cents, in the year-earlier period. During the quarter, costs related to its restructuring Increased program were $13 million. Avon maintained the multi- advertising year effort, when fully implemented by 2010 to 2011, is support helped on track to yield annualized savings of $430 million. To Preview Launch for Lancôme Mascara boost revenue date, the cost to implement the plan totals $482 million. ow you see it, now you don’t — Lancôme is employing BEAUTY BEAT by 17.5 percent Separating Avon’s fourth-quarter results by region, NHollywood tactics for the launch of Oscillation, the to $2.74 billion revenues in North America increased 2 percent to $633.3 battery-operated mascara it will launch later this fall. from $2.33 billion a year ago, with beauty gaining 19 per- million, on active representative growth of 5 percent. The brand plans a “sneak preview” today of the $34 cent to $1.96 billion. By category, color cosmetics gained Revenue in Latin America climbed 27 percent to $1.01 mascara in its 17 top doors. They are Macy’s doors in 26 percent, aided by the refreshed Hello Tomorrow billion, passing the $1 billion mark for the fi rst time. Atlanta, Chicago, Miami, Manhattan and San Francisco; campaign fronted by celebrity spokeswoman Reese Revenues in Western Europe, the Middle East and Bloomingdale’s 59th Street New York fl agship; Bergdorf Witherspoon; fragrance grew 17 percent; skin care rose Africa gained 14 percent to $354.6 million, buoyed by Goodman and Lord & Taylor in Manhattan; Lancôme 15 percent, and personal care gained 17 percent. strong growth in Turkey and the U.K. In Central and boutiques in Brea and Santa Clara, Calif., Dallas’ Avon’s upcoming fragrance introductions include Eastern Europe, revenue rose 30 percent to $432.6 mil- NorthPark Center, Manhattan and Short Hills, N.J.; Bond Girl 007, Patrick Dempsey Unscripted and U by lion, driven by double-digit growth in Russia. In Asia- Nordstrom at South Coast Plaza in Costa Mesa, Calif.; Ungaro, which Jung said is modeled on the Christian Pacifi c, revenue increased 12 percent to $227.2 million, Bon-Ton Stores at Chicago’s Yorktown Mall; Dillard’s in Lacroix launch. with the Philippines contributing growth of more than 20 Dallas and Neiman Marcus at the Galleria in Houston. In the quarter, Avon upped its advertising spending percent, and revenue in China gained 20 percent to $77.7 Limited amounts of the mascara will also be sold on by 10 percent to $103 million. Jung said the fi rm has lev- million, on active representative growth of 36 percent. lancôme-usa.com and sephora.com. The mascara will eraged analytics to determine appropriate advertising Cramb declared, “Our second-quarter performance is fur- roll out in Lancôme’s full distribution in November. levels, which the company anticipates will be more in ther, solid evidence that our turnaround plan is working.” — Julie Naughton WWD, THURSDAY, JULY 31, 2008 23 WWD.COM/CLASSIFIEDS

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

Package Development Mgrs Global packaging company looking for a PD Manager to develop and execute set up boxes, vac trays, and or any Cash For Retail Stock & Closeouts. specialty items and a PD Manager to No Lot Too Big or Too Small. develop primary packaging and turnkey RADCLIFFE Call CLOTHES-OUT: items. 3+ years experience required. Radcliffe, Is looking for an account (937) 898-2975 Please fax resume to: 212-867-4313 or executive to join our corporate show- email: [email protected] room in NYC. Candidate must have at CAD-GRAPHICS-FABRIC PRINTING least 3-5 years experience in the ladies U4ia-Photoshp-Illustr: 212 679 6400 Contemporary Denim market and COMMERCIAL www.sanodesignservices.com have strong specialty store following. Must be energetic, organized and have REAL ESTATE a passion for sales with strong work PATTERNMAKER ethic and computer skills. We offer PATTERN/SAMPLES competitive salary and great benefit Garment center location. Professional Seeking experienced patternmaker specializing in women’s sportswear, package. Please send your resumes at- /Reliable Quality. Men & women all style. tention to HR east coast at: Low Cost. Small production. 212-629-4808 which includes dresses, jackets, pants Is seeking to fill the following positions: and skirts. Complete understanding of [email protected] construction, fit, & draping. Knowledge of grading. Email or fax resumes to: Showrooms & Lofts CAD DESIGNER & MERCHANDISER 212-768-8811 / [email protected] BWAY 7TH AVE SIDE STREETS Patterns/Samples/Production Great ’New’ Office Space Avail Full Service, Fine, Fast Work. Successful candidate will report directly to the President of the Legwear ADAMS & CO. 212-679-5500 Any Style Call Casey: 212-560-8998 / 212-560-8999 Division. Past experience in hosiery desired and experience with computer CAD design is a must. Ability to multi-task, and work in a high-energy atmosphere is required. PRODUCTION SALES EXECUTIVE New York based children’s wear manu- Established Girls Jeanswear Co. is PATTERNS, SAMPLES, facturer of special occasion and casual seeking an exp. sales pro to add to PRODUCTIONS dresses seeks highly motivated & team. Must have relationships with detail oriented individual to oversee major chains and private label exp. All lines, Any styles. Fine Fast Service. GREAT OPPORTUNITY FOR Please email resume w/salary require- Call Sherry 212-719-0622. all aspects of production. Responsibil- Showroom/Design Room Sublet RIGHT INDIVIDUALS!! ities include follow-up of overseas pro- ments to: [email protected] 1400 sq. ft. Move in condition. Great duction to ensure on-time delivery, building, great space! Below market order input, traffic, spreadsheets, rate. No Brokers. 212-354-0054. To apply, Please Email Resume To: sourcing, costing and price negotiat- PATTERNS, SAMPLES, ing. Strong communication skills and PRODUCTIONS a minimum of five years experience Showroom for Share [email protected] required. Please send cover letter Beautiful Showroom for share: 2,900sf Full service shop to the trade. SALES EXECUTIVE Fine fast work. 212-869-2699. w/resume and salary history to: N. Chelsea Fashion distribution company [email protected] Established Importer of Novelty looking to share brand new, airy and Associate Designer Designer/Merchandiser Sweaters/ Knits & Outerwear seeks sunlit space with another high end Intimate Apparel Company seeks an We are seeking a Womenswear a Sales Executive with strong Dept/ apparel/accessories brand. 27th Street Associate Designer with 3-5 yrs’ experi- Designer/Merchandiser who has 10-15 Specialty Chain contacts to cultivate between 10th and 11th avenues. Fea- ence. We are looking for a team player years experience with concentrated new & maintain existing accounts. tures: brand new building, 300 square who is well organized and can multi- sportswear, wovens & knits and overseas Must have at least 5 years exp. Positive feet of terrace, private toilet facilities, task. Must have good communication experience. Must have good presentation energy & strong follow-up a must. bamboo Floors, full control over A/C+ and follow-up skills. Experience in the and computer skills. Please e-mail Call or fax resume to: Lisa Heat, fully-equipped pantry area, security junior category is preferred. Proficien- resumes to: [email protected] Tel: 212-302-3744/ Fax: 212-302-5184 locks, intercom, ½ block entrance to cy in Illustrator and Photo Shop is a Email: [email protected] High-Line. $57/sf per annum. MUST! E-mail resumes to Intimate Apparel Sales Sales Executive Call 646-319-4417 for details. Capital or Joint Venture [email protected]. EOE European RTW company seeks NY Manufacturer of better women’s wear A N.Y. Intimate Apparel Co. is seeking based Acct Exec with 3+ years of sales owns Chinese factory. Have offices & DESIGNER $100-13OK. Min 5yrs exp. an experienced sales pro with connec- exp; must have existing relationships W. 39th St. Showroom distribution from large, modern Secaucus, NJ designing Junior Sportswear. Knits & tion to discounts/chains. Please email w/contemporary buyers at key specialty We are a California based junior w/house. We seek sales, capital, possi- wovens. To do girls Junior inspired for [email protected] or fax 516-938-8300 and dept. stores. Please send resume manufacturerer looking to share our ble partnership or joint venture to take Target & Walmart. Non-denim. Mdtn. to: [email protected] SALESPERSON NY showroom located at 231 W. 39th advantage of our vertical operation, di- [email protected] 973-564-9236 Established Missy Street. Phone: 310-877-1028 Fax: 323- verse sourcing capability & immed pro- Importer/Wholesaler seeking 585-7977 duction capacity. Email: [email protected] sales person for sweaters/cut & sew knits all moderate majors, 10 years experience SALES MANAGER required, good salary and bene- APPLE BOTTOMS Accessories, fits. E-mail resume to: Scout the Talent. Recruit the Best. Handbags, Belts, Hosiery, Headwear, Cold Weather. Experience & travel req’d. [email protected] Work with one of the hottest brands in more than one product category! E-mail Reach more industry talent than ever – resume to: [email protected] MAXX NEW YORK is celebrating 20 in person, online and in print. Fill open years of success in the designer handbag THE LIRIC GROUP market. As we prepare for the future, Acrobat, Bailey 44, Hanky Panky, we are expanding our team to grow our Rebecca Beeson and Rich & Skinny positions in everything from textiles to portfolio of brands, categories and Busy multi line showroom seeks products. We are looking for motivat- Samplemaker ed individuals with experience in Growing Women’s couture co. seeks energetic, detail oriented sales assistant design to retail. Interview hundreds of handbags / accessories to fill the roles highly skilled and exp’d individual. to join our team. Please email of VP of Design and Merchandising Stable position. Emphasis on evening. resume to: [email protected] and VP of Sales. The VP of D&M must Please call 212-869-2296 or fax resume experienced industry professionals in have the unique combination of crea- to 212-869-2236 tive talent and brand merchandising management skills. The Sales manager one afternoon. Participate in the most must possess a resume that demonstrates industry relationships, leadership, VIE LUXE communication, retail management, SALES EXECUTIVE comprehensive recruiting solution for computer and strong presentation Luxury home fragrance company seeks skills. If you have at least 5 years of exceptional Sales Executive. Must relevant experience email a resume have established contacts with high-end the fashion, retail and beauty industries. with cover letter to: TD Runway Collection $80 -110K [email protected] or 212-947-3400 retailers & specialty stores. Competitive [email protected] salary & benefits offered. WWD drives the most qualiﬁ ed talent Please e-mail resume: in the industry to the WWD Fashion Career [email protected] Expo! Multi-platform opportunities will promote your company as an amazing place to work. Reach more than 300,000 monthly unique users on RETAIL SALES fashioncareers.com with an online Westchester and Fairfield Counties Great Opportunity display ad, exhibitor proﬁ le and job We are a high energy, five store, contemporary boutique looking for self-starters who are well organized, posting package. mercahndise savvy, & computer literate. No evening hours. Competitive salary. Avail. benefits, 401K, Medical Insurance, and Incentives. Pls e-mail your resume to: [email protected]

The Apparel World’s Premier Hiring Event! SALES ASSOCIATE Luxury Women’s Wear September 10, 2008 | Metropolitan Pavilion | New York Established luxury boutique of women’s ready-to-wear is currently seeking experienced, polished, self motivated Sales Associates. Min. 3 year retail selling experience req’d - women’s Reserve your booth now! presented by clothing. Experience in high-end retail Contact Melissa Gentile at 212-655-4505, x262 or preferred. [email protected]. Visit fashioncareers.com Please forward your resume in MS Word, PDF, or Text file to: for new package options and sponsorship opportunities. [email protected] 24 WWD, THURSDAY, JULY 31, 2008 WWD.COM

Ann Redding and Matt Danzer behind Game On thethe countercounter atat Reddings.Reddings. “I grew up with polo, my father and brother are professional players, and she’s dated a few,” explained Jemma Kidd, giving a playful nod to her friend Sarah Woodhead. The chums were guests at the 24th Cartier International Polo on Sunday, the annual event at Windsor Great Park that’s a fixture of the English summer season. Emma Watson, Rosamund Pike, Margo Stilley, Holly and Sam Branson, and Isabella Anstruther- Gough-Calthorpe turned up to squint at the polo players through the afternoon’s searing sun- light. Salman Rushdie came with new com- panion Aita Ighodaro, a statuesque aspir- MARKET WORK ing writer. Before watching the English THERE’S NO SHORTAGE OF GOURMET FOOD and Australian teams duke it out for the stores in the Hamptons, but most don’t have two Per Arabella Coronation Cup, the glam group dined on Se-trained chefs behind the counter. At the just-opened Musgrave lobster and Welsh lamb in Cartier’s tent, Reddings, located on Shelter Island, that’s exactly decked out for the occasion by designer the case: owners Ann Redding and Matt Danzer have Nicky Halsam with pink Cartier flags in- traded in their toques for shopkeeper’s aprons. spired by Jean Cocteau and Elsa Schiaparelli The couple initially planned to open a restaurant and chandeliers covered in swans’ feathers. across the bay in Southold, where Matt was raised, but they But despite the event’s chic trappings, some changed their minds when chance — in the form of Matt’s newbies were just there to experience a polo match mother, Karen Danzer — stepped in. “We knew we wanted fi rsthand. “I shall be screaming from the sidelines to do something together,” recalls Redding. “And Karen — if that’s allowed,” said Natalie Imbruglia. knew the landlord of this location, so when the opportunity It turns out cheering wasn’t the only threat to to take over this space came along, we took it.” decorum — three exuberant streakers interrupt- Formerly the Island Food Centre, the space ed the match with a naked dash across the fi eld, required a gut renovation. The duo kept only the in plain view of Prince Charles, who presented the ▲ Dita Von original deli meat scale and the soup pots, which they Coronation Cup to the winning English team. Teese in vintage. use for their plants. But Redding and Danzer had Later, guests retreated to Cartier’s marquee for some plenty of potential restaurant decor already stored respite from the 80-degree weather. “We’re off to get some in their East Village apartment, and fi lled the space

▲ Emma Watson Sue and in Charles tea,” proclaimed actress Kelly Brook, who, despite relocat- with a mix of found, vintage and new. The result is Andy Wong. Anastase. ing to Los Angeles, still has a penchant for English customs. reminiscent of an old-time general store. As for stocking the shelves, the pair knew they had to Chloe Pridham satisfy the needs of the local community and the taste buds and David Gandy of the city-based summer crowd. Everyday goods like soap, toilet paper and sugar are sold alongside freshly prepared gourmet treats such as fried chicken, oyster po’boys and homemade cookies. They emphasize local products (“the gelato is made on Long Island by a guy named Rosario,” says Matt Danzer), but because Shelter Island is only accessible by ferry, they had to make some exceptions: the cheese arrives from Artisanal restaurant in Manhattan. And while working with your mom might seem like the most challenging aspect of such a retail operation, (Karen Manzer has been manning the front with Redding while her son works the stoves), the two city refugees admit they haven’t had much time for conﬂ ict. “It’s been a learning experience,” says Matt Danzer. “You’d be surprised with what you can do when you don’t have any options.” As for the difference between First Avenue and North Ferry Road? “We miss not having a laundromat around the corner,” he says. — Meredith Fisher

Marie Helvin in Margo Stilley Reddings, 184 North Ferry Road, a vintage top. Caprice in Prada. Shelter Island, N.Y.; 631-504-6080 CARTIER POLO PHOTOS BY TIM JENKINS; REDDING BY STEVE EICHNER TIM JENKINS; REDDING BY PHOTOS BY POLO CARTIER

llands her dream job teaching at fi ctional Gotham pprep school Langdon Hall. But when Anna fi nds her ppaycheck less than adequate and her seventh graders BOOK REPORT eexceptionally bratty, she surrenders to the “dark WITH 31 DAYS TO GO UNTIL “GOSSIP GIRL” FINALLY SNAPS OUT OF sside,” ghostwriting sixth-grade history papers after reruns, fans of the CW soap have to look elsewhere for their spoiled Manhattan hhours to fund a pricy shoe habit. teenager fi x. Enter “Schooled,” out Tuesday from Hyperion, a cheeky read It’s an easy trap to fall into, says Lakhani. “I about after-school tutoring in the rarefi ed 10021 zip code, where professionals sstarted to think of things in terms of hours,” she are paid big bucks to help students plow through homework assignments — ssays of her former moonlighting gig. “I’d go into more often by just doing it for them. a store and say to myself, ‘That bag is only worth “It defi nitely crosses the line into cheating,” says author Anisha Lakhani of tutors ffour hours.’” Eventually, though, Lakhani got fed who have been said to pocket close to $1,000 for polishing off a middle schooler’s uup with her students’ attitudes. Her breaking assigned reading. “It’s gotten worse and worse.” ppoint, she says, came when a particularly slothful ccharge claimed a copy of Cliff’s Notes was “too llong to read.” But Lakhani says she’s not out to exact revenge Everything in ‘Schooled’ comes from oon former pupils by airing their dirty laundry. “I “ ddidn’t want to hurt any of the students I taught,” a kernel of truth…a story, a child, a bat tthe writer insists. “When I wrote about one person, I was very cognizant to add other attributes. The mitzvah, a faux mitzvah. ppoint of the book isn’t to make fun of the children I ” ttaught at Dalton.” — Anisha Lakhani Still, the author admits, “there are going to be Presumably, the scribe knows from whence she speaks: Before writing ppeople who say, ‘I think Lara Kensington is actually “Schooled,” Lakhani spent her days teaching English at New York City’s tony sso-and-so.’ But when that happens, I will hide Dalton School and her nights tutoring well-heeled adolescents for upward of uunder the cloak [of fi ction].” $200 a pop. “Everything in ‘Schooled’ comes from a kernel of truth, something And there’s a good chance she might come face- I witnessed — a story, a child, a bat mitzvah, a faux mitzvah,” says the 32-year- tto-face with skeptics: The author lives on the Upper old. “It’s what I told my students: Write what you know.” EEast Side with her husband, blocks from many Certainly, that very philosophy has worked well for a gaggle of recent authors who oof her former clients. It’s a world away from her have turned workplace horror stories into the stuff of bestsellers. Andrew Trees lost nnative suburban New Jersey, where peers took a DIY his job at Horace Mann after his roman à clef “Academy X” was published, but it aapproach to coursework. “We had Kaplan, that was still got reviewed by The New York Times. aabout it,” Lakhani recalls with a laugh. “Schooled” tells the story of Anna Taggert, a plucky young Columbia grad who — Amanda FitzSimons